The dried up banks of the Yangtze River in southwest China are seen earlier this month. Chinese factories are facing curbs on electricity use as coal prices soar and a severe drought hits hydropower plants, state media have said, with possible major shortages ahead this summer. AFP / File / StringerMay 18 (AFP) — Chinese factories are facing curbs on electricity use as coal prices soar and a severe drought hits hydropower plants, state media have said, with possible major shortages ahead this summer.

The situation has highlighted the difficulties faced by China, the world’s largest energy consumer, as global fuel prices climb and the country battles soaring inflation. Businesses in coastal areas and some inland provinces have grappled with power cuts and full blackouts since March due to surging demand and a drop in hydroelectric output, the China Daily said. The shortage — the worst since 2004 — is likely to get worse in the summer when demand peaks, with coastal Jiangsu, an export powerhouse neighbouring Shanghai, the hardest hit, it said. Power supplies could be as much as 16 percent lower than the province needs, it said. The drought plaguing central China for months has left more than one million people without proper drinking water and crimped output of hydroelectric power, China’s second-biggest energy source, previous media reports said. Since Sunday, water levels at nearly 1,400 reservoirs in Hubei province have fallen below the operational level, the China Daily said on Wednesday, citing government figures. Even water levels at the Three Gorges Dam — the world’s largest hydropower project — have dropped below the level needed for full power generation, it added. Many factories in Zhejiang province on the east coast have already been forced to suspend production every three days to conserve energy. Similar measures were enforced in the central province of Hunan and other areas, the newspaper said. … The drought in central provinces may further fan inflationary pressures, as grain and fish output in those areas are expected to decrease significantly, they said, according to Chinese media reports. …

China ‘Hit by Power Crunch’ Amid Drought

By Leslie Hook, with additional reporting by Gwen Chen in Beijing and Rahul Jacob in Hong Kong Beijing, May 18 — Chinese provinces are rationing electricity as soaring coal prices squeeze power generation companies, underlining the challenges facing the world’s largest energy consumer as global fuel prices rise. While China experiences power cuts each summer, some provinces have started rationing earlier than usual this year. In recent days Hunan, Zhejiang, Jiangsu and Anhui provinces have implemented cuts, alongside Shanghai and Chongqing. Chinese officials have been warning for weeks that shortages would be more severe than usual this year. On Tuesday, Xue Jing of the China Electricity Council, an industry body that reports to state regulators, told state media that China would “face its most severe electricity shortage since 2004”. Ms. Xue said there could be a national shortage of 30 million kilowatt hours this summer, which she said would equate to the consumption of three Chongqings, referring to the southern city of 31 million. Chinese electricity companies are facing financial pressure from the increase in global energy costs as Beijing hesitates to increase state-controlled electricity prices because of concerns over inflation. … Compounding the problem of rising energy costs, hydropower generation has also fallen after a dry winter in southern China. In Changsha, the capital of Hunan province, which draws much of its electricity from hydropower, roadside lights have been dimmed and city districts are experiencing rotating one-hour power cuts, according to one resident, who first noticed the changes a few weeks ago. …

China forced to ration electricity