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China Warns Severe Heat Means Another Summer of Power Risks

2023-05-10 10:19
Asia’s brutally hot weather is expected to hit China this summer, threatening a new round of power shortages
China Warns Severe Heat Means Another Summer of Power Risks

Asia’s brutally hot weather is expected to hit China this summer, threatening a new round of power shortages that last year disrupted global supply chains of everything from cars to solar panels.

The electricity supply situation will be tight across the entire nation this summer, state-run China Energy News reported, citing the State Grid Energy Research Institute. Central, eastern, and southwestern provinces are likely to experience shortages during periods of peak demand, according to the institute.

A heat wave is already scorching parts of Asia even before the official start of the northern hemisphere summer, sending temperatures to a record 44.2C (112F) in Vietnam, shutting schools early in the Philippines and putting India on alert for blackouts. Climate change is exacerbating the frequency of extreme weather incidents, according to scientists at research groups like World Weather Attribution.

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In China, temperatures in most parts of the nation will be relatively high this summer, with several regions forecast to experience periodic heat waves, according the China Meteorological Administration. More frequent droughts and flood-inducing rainstorms are also expected.

Last year, extreme heat and a lack of rain dried up the Yangtze River, with water reaching the lowest level on record in some stretches. That caused severe power shortages in areas dependent on hydroelectricity, such as Sichuan and Yunnan provinces, with officials curtailing supply to factories to ensure people could run air conditioners at home. Toyota Motor Corp. and Honda Motor Co. were among impacted companies.

Read more: China’s Historic Drought Spawns Power Crisis in Test for Xi

In Yunnan, a key aluminum hub, power rationing began anew last month after another severe drought. Extreme weather is also affecting crops from rubber to peanuts, potentially requiring more imports to fill the gap and roiling global trade flows.

Beijing has prepared by ramping up production of coal, still its most important source of electricity even as utilites add record amounts of new wind and solar. Approvals have also been granted for a massive expansion of power plants using the fuel, many of which are intended to only be fully utilized at times of stress on power supply.

Current high coal inventories mean a nationwide power crisis is unlikely, according to Nannan Kou, an analyst at BloombergNEF.