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China Goes Back To Coal Because Of Hydroelectricity Power Shortages

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China mines and imports more coal as its worst heatwave and drought in 60 years damage hydroelectricity, its second major power source.
Extreme heat and drought have dried up areas of China’s Yangtze River. The drought has affected six river provinces, hurting tens of thousands of people’s water supply and prompting the closure of companies to conserve electricity.

Sichuan, which provides 21% of China’s hydropower, saw its hydroelectricity capacity decline by 50% this month, according to the state grid. The heatwave has caused extraordinary power demand, straining the region’s grid.
Since Sichuan supplies electricity to other parts of China, the hydropower shortfall has hurt Shanghai.

In the first two weeks of August, power plants used 8.16 million tonnes of thermal coal daily, up 15% from a year ago. Daily thermal coal consumption hit 8.5 million tonnes on August 3. China relies more on coal than previous year. Coal accounted for 69% of July’s electricity, up 22% from June. China’s electricity supply was 67.4% coal-fired last year.

Sichuan Coal Industry Group, the province’s largest coal miner, has increased its thermal coal production to roughly 15,000 tonnes per day since mid-August.
Sichuan Guang’an Power Generation, the region’s largest coal-fired power plant, has also increased energy production by 170% this month, compared with the same period last year. The power plant forecasts August’s output to rise 313% from a year ago.

Friday, Guang’an city opened the province’s first coal reserve. It will supply 6 million metric tons annually when full.
In reaction to the power shortage, Sichuan has ordered most factories to close until Thursday. The power rationing has affected Toyota, Foxconn, and Tesla’s production in Shanghai. Big ice? Extreme measures are taken to chill China.

China mines and imports more coal as its worst heatwave and drought in 60 years damage hydroelectricity, its second major power source.
Extreme heat and drought have dried up areas of China’s Yangtze River. The drought has affected six river provinces, hurting tens of thousands of people’s water supply and prompting the closure of companies to conserve electricity.

Sichuan, which provides 21% of China’s hydropower, saw its hydroelectricity capacity decline by 50% this month, according to the state grid. The heatwave has caused extraordinary power demand, straining the region’s grid. Since Sichuan supplies electricity to other parts of China, the hydropower shortfall has hurt Shanghai.

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In the first two weeks of August, power plants used 8.16 million tonnes of thermal coal daily, up 15% from a year ago. Daily thermal coal consumption hit 8.5 million tonnes on August 3.
China relies more on coal than previous year. Coal accounted for 69% of July’s electricity, up 22% from June. China’s electricity supply was 67.4% coal-fired last year.

Sichuan Coal Industry Group, the province’s largest coal miner, has increased its thermal coal production to roughly 15,000 tonnes per day since mid-August.
Sichuan Guang’an Power Generation, the region’s largest coal-fired power plant, has also increased energy production by 170% this month, compared with the same period last year. The power plant forecasts August’s output to rise 313% from a year ago.

Friday, Guang’an city opened the province’s first coal reserve. It will supply 6 million metric tons annually when full.
In reaction to the power shortage, Sichuan has ordered most factories to close until Thursday. The power rationing has affected Toyota, Foxconn, and Tesla’s production in Shanghai.

Vice-premier Han Zheng said Beijing will boost coal power generation at this “important juncture” to prevent “power supply accidents.”
The government is also buying more coal from other countries, mainly Russia, as Western nations shun Moscow over the Ukraine incursion.

China imported 7.42 million tonnes of Russian coal in month, up 14% from the year before. It was the highest monthly figure since 2017 began.
Power constraints have proven that coal is “indispensable,” say Shanghai-based analysts.
They expect more coal power units to be developed if extreme weather persists in the future.
Capital Economics expects China to increase coal production and imports to address shortfalls.
They said last week that it’s unlikely that more supplies will arrive on schedule.

“If coal inventories continue to drop, power rationing might be implemented within days,” they said.

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