Winter Power Crunch Warning From China’s State Grid

China’s state power provider has warned of a winter power crunch with hydropower output predicted to fall as temperatures drop and demand peaks.

The State Grid Corp warned on Sunday of a “tight balance” between power supply and demand through the winter until spring – despite the recent power crisis easing following measures to boost coal supplies and large users cutting back.

The firm warned there could even be more power outages as hydropower generation is expected to drop just as consumption picks up during the winter heating season.

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“The grid would overall see a tight balance of the supply and demand situation and power shortage in some regions,” the firm, which handles electricity transmission in three-quarters of China, said in a statement.

As of Saturday, almost no region was under orders to cut power use, the firm said, but added that some high-polluting firms are still restricted during peak hours of use.

“The current electricity supply and demand situation in the regions managed by the company has returned to normal,” added State Grid.

Power Plants Restricted

A wide swathe of China has suffered outages since May as soaring prices and tight supply of coal, a key fuel for its power generation, restricted power plants’ operations, as robust industrial activity after the Covid-19 pandemic stoked demand.

China’s measures to stabilise the coal market and boost profitability of power plants ranged from approvals for greater coal production to a crackdown on coal price speculation and freeing up electricity prices.

Coal inventories stand at 99.32 million tonnes at power plants in the region supplying State Grid, the company said, or enough for 20 days of use.

This week, the state planner also said China’s coal supply situation had improved.