China’s energy crisis worsened as cold weather blanketed parts of the country and power plants hurried to stockpile coal, bringing coal prices to new highs on Friday.
As powerful cold winds blow down from northern China, electricity demand for heating homes and offices is expected to skyrocket this week. Temperatures in some central and eastern regions of China could drop by as much as 16 degrees Celsius in the next 2-3 days, according to forecasters. This will worsen the situation further.
Power shortages have erupted in the world’s second-largest economy due to a lack of coal, high fuel prices, and growing post-pandemic industrial demand. Since September, rationing has been in effect in at least 17 of mainland China’s 30 regions, causing some industries to shut down and disrupting supply lines.
Electricity shortages are likely to last far into next year. Experts and traders predict a 12 percent decline in industrial power demand in the fourth quarter as coal supplies run low and local governments prioritise residential customers.
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