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Higher hydropower generation eases China power shortages - NDRC

28 Jun 2011

Only two of the 26 provinces served by State Grid Corp of China have been restricting power consumption since June 10, after widespread rainfall lifted hydropower generation and led to a fall in power use for air conditioning, a government department said on Tuesday.
Supply tightness in eastern Zhejiang and Anhui, central Hunan and southwestern Chongqing had eased noticeably after hydro-electric generation surged in mid-June, the National Development and Reform Commission said in a release on its website (www.ndrc.gov.cn).
Nationwide hydropower output averaged 2.31 billion kilowatt-hours per day in the second 10 days of June, up 12.28 percent from the first 10 days, the commission said.
But electricity supplies remained tight in five provinces covered by China Southern Power Grid Corp because of limited precipitation, high temperatures and tight coal supplies to power plants.
Power shortages in the five southern provinces totaled 8.38 gigawatts (GW) on June 10, and shortfalls in Guangdong alone totaled 5.97 GW, reaching the expected maximum deficit level.
On-grid power loads in the five provinces, which include Guizhou, Yunnan, Guangxi and Hainan, jumped to 108.6 GW on June 21, 5.15 GW more than the highest level in 2010, according to the release.
China has warned of the worst summer power crunch in years as many coal-fired power plants, the mainstay of power supply, are generating at a loss because of rising coal costs and rigid power price caps.
The increase in electricity demand remains fairly strong despite moderation in economic growth, but power shortfalls might not be as severe as anticipated because the government has taken some measures to encourage electricity generation and curb demand.
The National Development and Reform Commission raised feed-in tariffs that coal-fired power plants sell to grid operators in 12 provinces from April 10 and in another three provinces from June 1 by about 5 percent.
The authorities also lifted retail power prices that grid operators charge non-residential users in 15 provinces by about 3 percent from June 1, effectively passing on most of the increase in grid feed-in tariffs to consumers.
On-grid power prices for most gas-fired power generators were also increased.
In early June, officials with the commission said it was considering lowering port fees and valued-added tax on imported coal to encourage coal purchases.
The government agency last week reiterated a ban on favourable power tariffs for power-intensive sectors and local government in Chongqing has pledged to offer subsidies to power generators and grid operators

Only two of the 26 provinces served by State Grid Corp of China have been restricting power consumption since June 10, after widespread rainfall lifted hydropower generation and led to a fall in power use for air conditioning, a government department said on Tuesday.
Supply tightness in eastern Zhejiang and Anhui, central Hunan and southwestern Chongqing had eased noticeably after hydro-electric generation surged in mid-June, the National Development and Reform Commission said in a release on its website (www.ndrc.gov.cn).
Nationwide hydropower output averaged 2.31 billion kilowatt-hours per day in the second 10 days of June, up 12.28 percent from the first 10 days, the commission said.
But electricity supplies remained tight in five provinces covered by China Southern Power Grid Corp because of limited precipitation, high temperatures and tight coal supplies to power plants.
Power shortages in the five southern provinces totaled 8.38 gigawatts (GW) on June 10, and shortfalls in Guangdong alone totaled 5.97 GW, reaching the expected maximum deficit level.
On-grid power loads in the five provinces, which include Guizhou, Yunnan, Guangxi and Hainan, jumped to 108.6 GW on June 21, 5.15 GW more than the highest level in 2010, according to the release.
China has warned of the worst summer power crunch in years as many coal-fired power plants, the mainstay of power supply, are generating at a loss because of rising coal costs and rigid power price caps.
The increase in electricity demand remains fairly strong despite moderation in economic growth, but power shortfalls might not be as severe as anticipated because the government has taken some measures to encourage electricity generation and curb demand.
The National Development and Reform Commission raised feed-in tariffs that coal-fired power plants sell to grid operators in 12 provinces from April 10 and in another three provinces from June 1 by about 5 percent.
The authorities also lifted retail power prices that grid operators charge non-residential users in 15 provinces by about 3 percent from June 1, effectively passing on most of the increase in grid feed-in tariffs to consumers.
On-grid power prices for most gas-fired power generators were also increased.
In early June, officials with the commission said it was considering lowering port fees and valued-added tax on imported coal to encourage coal purchases.
The government agency last week reiterated a ban on favourable power tariffs for power-intensive sectors and local government in Chongqing has pledged to offer subsidies to power generators and grid operators.