China Faces Power Shortage
a rare heat wave struck many parts of China in the summer of this year and
caused severe energy shortages in Shanghai, Zhejiang Province and other
places, the Chinese government began to reevaluate the power supply and
demand situation and altered its previous rather optimistic attitude.
State Electricity Regulatory Commission said recently that power supply
and demand last year was balanced generally while this year the demand
exceeded the supply and some areas faced severe power shortages.
to an investigation, 18 provinces, autonomous regions and municipalities
those scorching days, some blackouts occurred as local residents switched
on their fans and air conditioners. To ensure adequate power supply to
local residents, regional governments had mostly adopted policies of
limiting power consumption by businesses.
people just wanting to cool off, economic officials attributed the
electricity shortage to the higher production by enterprises after the
severe acute respiratory syndrome (SARS) outbreak.
a drought has continued to affect the
commission attributed the shortages mainly to the slow investment in power
supply, which could be rooted to the false prediction of energy demand
continued growth of the national economy has led to rocketing of
electricity demand. Since 1991, the industrial output in
the improvement of people's living standards, the power consumption for
air conditioning surged. In some places, the power demand for cooling
accounted for almost 40 percent of the grid burden.
persistent drought in some areas, problems in electricity distribution and
development of energy-consuming industries intensified the power shortages
have considered that investment reform is a key to tackling the power
shortages. Complicated examination and approval procedures have delayed
investment, which would otherwise contribute to more constructions of
the splitting up of the State Power Corporation at the end of last year,
The recently-signed contracts on selling and distributing electricity from the Three Gorges Power Project have attracted attention of many people. This is because they help mitigate power shortages and mark a key transition in electricity price determination from being state-designated to market-regulated.
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