China warns of tight power market

Updated: 2011-07-29 17:31

(Agencies)

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China's power supplies will remain tight in some regions for the rest of the summer even though electricity shortages since the start of the season were less severe than anticipated, a government report showed on Friday.

China had forecast the worst summer power shortage in recent years for 2011 but so far actual shortfalls were smaller than expected due to favorable weather and other factors such as power price hikes.

The National Development and Reform Commission urged all relevant parties and regions to continue their efforts to increase power supplies and curb unreasonable demand.

"Thermal power plants should proactively purchase thermal coal and increase coal imports, and try to generate power as much as possible; hydropower plants should try to generate more power under the preconditions of flood control and dam safety," the commission said in the report published on its website (Ndrc.gov.cn).

"Coal miners should prioritise thermal coal supplies and oil firms should try to increase gas supplies for power generation while ensuring supplies to major users including residents and to storage facilities."

The Commission expected maximum power load for air conditioning alone to grow 12.5 percent from a year earlier to about 180 gigawatts (GW) during peak demand from late July to mid August, or a quarter of national peak power load.

It said power demand from industrial sectors will continue to grow fast after rising 11.7 percent in the first half.

"Hydro levels in Hunan and Guangxi remained at unusually low levels due to uneven rainfalls recently, and the growth of coal production in some regions could be undermined by recent coal mine accidents."

The commission said 12 Chinese provinces cut power supplies to users by up to 12 GW in early and mid July, compared with power deficits of 18 GW in June and 11 GW in May.