[bratticus]

More power supplies urged to meet household need
Xinhua / June 11, 2011

BEIJING -- China's top planner on Friday asked local authorities and energy enterprises to increase power supplies to meet household demand in summer as the country faces a tight power supply.

Liu Tienan, deputy head of the National Development and Reform Commission (NDRC), said during a video conference that local governments and energy enterprises should bring into play current production capacity and work to increase power supplies and lift energy efficiency.

"The power situation this summer is complicated, not optimistic in general and grave in some regions," according to a statement posted on the NDRC's website after the meeting. ...

[bratticus]

Yara 'to lift nutrient prices' as China cuts bite
Agrimoney.com / June 13, 2011

Yara International is to announce a "significant increase" in its fertilizer prices thanks to a squeeze on Chinese output caused by power cuts, DnB NOR Markets warned.

... Power shortages

Urea prices in China have already soared nearly 10% over the past month, lifted by the impact of power cuts in lowering output last month by 1.25m tonnes, compared with May 2010.

Urea production in Hubei, a smaller providing province, "has almost entirely shut down due to electricity shortages, while other regions… are experiencing varying degrees of production curtailments ", according to Chinese reports. ...

[bratticus]

Capping total energy use is key to ease power shortage: official
People's Daily Online / June 14, 2011

A senior Chinese official said on Monday that controlling the nation's total energy consumption is the fundamental solution to easing a looming power shortage during the summer peak. ...

Not using energy is the key to dealing with an energy shortage. lulz.

[bratticus]

Chinese Manufacturers Suffer as Exports Growth Slows
ntdtv / June 14, 2011

Wu Zhongjun owns two textile factories in the eastern manufacturing city of Yiwu in Zhejiang province. He says power cuts have forced him to shut down production every two working days.

[Wu Zhongjun, Director of Lianfa Clothing Factory]:
"Sometimes, we feel so powerless and helpless. Since my factory is already set up here, I have to take it step by step. I can't just say I quit tomorrow.”

Electricity is a scarce this summer in China due to coal supply problems and the effect of drought on hydroelectric supply. Regular blackouts are causing more problems for manufacturers.

Beijing’s customs agency found export growth slowed from a 29.9 percent pace in April last year to 19.4 percent in May this year. In contrast, import growth accelerated. ...

[bratticus]

Power shortages in 5 south China provinces to ease - report
Reported by Jim Bai and Tom Miles; Editing by Jacqueline Wong / Reuters / June 15, 2011

Power shortages in areas serviced by China Southern Power Grid Corp will ease to 3 gigawatts (GW) in July and August from 8 GW in June, China Electric Power News reported on Wednesday, citing forecasts from the grid operator.

The report did not provide any explanation for the possible reduction in power shortfalls. ...

Same report:

China's national electricity consumption continues to grow in June
Platts / June 15, 2011

China's national consumption of electricity continues to grow, and power generation from June 1-13 reached 169.622 billion kWh, up 14.73% from the same period a year ago, according to a report late Tuesday by the National Development and Reform Commission.

... Still, the electricity shortage expected this month of 6 GW is forecast to ease to 3 GW by July-August, Wang said, adding the shortage would center on the Guangdong, Guizhou and Hainan provinces.

Chinese aluminum output to remain high if no power cuts
By Allen Sykora / Kitco News via Commodity Online / June 15, 2011

Chinese aluminum production hit an all-time high last month and could limit further price gains if feared power-related supply interruptions end up not materializing after all, Commerzbank says. ...

Herd starts to turn from emerging markets
By Mike Dolan / Reuters / June 15, 2011

... On top of monetary tightening fears, Nomura and Natixis analysts both flag worries about electricity shortages in Chinese cities as price controls deter companies from expanding capacity while more use of generators shoves up diesel costs.

“Investors appear to have underestimated the impact of electricity shortages and credit tightening in China,” Nomura told clients. “While equity markets have recently corrected, investors do not appear to have re-adjusted their expectations.” ...

[bratticus]

Power play just drama?; Drought may have less to do with China's electricity woes than a generating industry using scare tactics on Beijing in a bid to increase prices and profits
South China Morning Post Ltd via PennWell Corporation / June 14, 2011

... "We believe the power shortage is exaggerated," economist Lu Ting at Bank of America-Merrill Lynch China writes in a research note. "And it is unlikely that China will see a major disruption in power supply."

As Lu and some other analysts see it, the power pessimists have failed to account for increases in China's power capacity since 2004, when the nation sweltered through its worst-ever power shortage. Yes, power supplies will probably fall short of demand, they say, but not as severely as some forecasts show. And any shortages are likely to be limited to certain areas and certain times of day.

"It isn't appropriate to exaggerate the impact of the shortage, or even to call it a national power-supply crisis," says the China Electricity Council, which represents generating firms. "This kind of deficiency is different from the nationwide, sustained blackout seen in the past."

The council's data show that China's power capacity has more than doubled in the past six years. In percentage terms, the council said, this summer's shortage may be half that of 2004.

Sounding a more dire warning is the State Grid Corporation, the largest power-distribution firm.

"This year's power supply is set to be the tightest in recent years," Shuai Junqing, the firm's deputy general manager told a televised press conference last month. "The deficiency may exceed that in 2004 when the nation suffered the worst-ever power shortage." Shuai said generating-capacity shortage during peak consumption periods this summer could amount to 30 GW to 40 GW, with eastern China getting hit harder than northern and central parts of the country. The total shortfall could rise to 49 GW next year, and to 70 GW in 2013 if planned high-capacity long-distance power transmission lines can't be completed on time. ...

... State Grid said last month in a circular for potential bond investors that it posted a loss of 1.7 billion yuan in 2009, the only losing year from 2008 through the first nine months of last year. That loss prompted the firm to cut last year's power-grid investment by 12.5 per cent from the year before. ...

[bratticus]

METALS-LME copper down on stronger dollar ahead of U.S. data
By Carrie Ho Additional reporting by Nick Trevethan; Editing by Clarence Fernandez / Reuters / June 15, 2011

... China appears to be heading for its worst power shortage since 2004, which may affect consumers and producers of base metals.

But Wednesday's statement by the State Grid Corp of China (SGCC) offered a bright spot in the crisis.

Beijing may cut up to 1.02 gigawatts (GW) of power load to parts of the city during the summer months, said SGCC, less than
the 3 GW estimated by the local media previously, representing a smaller burden on the overall state grid. ...

Beijing faces smaller power shortfalls than earlier estimated
Reported by Jim Bai and Tom Miles; Editing by Jonathan Hopfner / Reuters / June 15, 2011

Beijing may cut power load to parts of the city by up to 1.02 gigawatts (GW) at some point in the summer months due to fast rising demand and limited supply capacity, the State Grid Corp of China (SGCC) said on Wednesday.

The latest forecast was smaller than earlier estimate of a maximum deficit of 3 GW in the Chinese capital as reported by local media in late April. ...

[bratticus]

Subsidies to ease power shortages: China
Reuters via Business Recorder / June 16, 2011

BEIJING: China's Chongqing will provide subsidies to power generators and grid operators in another effort to reduce power shortages in summer following the central government's move to raise power prices in the municipality and some other Chinese provinces.

These moves, and some other potential ones as well as recovering hydro levels, suggest an expected summer power crunch may be less severe than anticipated, though they could mean higher demand for coal and gas produced at home and abroad.

The Chongqing government will give out 1.2 billion yuan ($185 million) in subsidies to support coal and power purchases and the detailed subsidy plan will be unveiled late this month, the State Grid News reported on Thursday.

Power shortfalls in Chongqing are now expected to reach up to 2 gigawatts (GW) during the period from July to September, versus an estimated peak load of 12 GW, the newspaper report said. The newspaper is run by the State Grid Corp of China (SGCC), the country's dominant power distributor.

Chongqing Electric Power Corp, a unit of SGCC, had previously forecast the local power deficit could be as high as 2.1 GW.

China Southern Power Grid Corp said power deficits in the five provinces it services were expected to ease to 3 GW in July and August from 8 GW in June. It did not explain. ...

The hydro-electric dam built to supply energy to China
BBC / June 15, 2011

One of Russia's richest men is planning to invest billions of dollars in a scheme to sell electricity to China.

Oleg Deripaska wants to build a series of hydro-electric dams in remote eastern Siberia and export the power southwards to cash in on Asia's booming economies.

He says the potential market is 60 billion kilowatt hours a year - enough electricity to power Greece. ...

[bratticus]

China Takes a New Interest in Energy Efficiency
By KEITH BRADSHER / NYT / June 15, 2011

... China’s heightened interest in saving energy — a response to electricity shortages and blackouts this year as well as longer-term security worries about dependence on energy imports — comes as the country’s construction industry continues to barrel ahead at a breathtaking pace. Last year, China consumed eight times as much cement as the world’s second-largest consumer, India, and it now leads the world in consumption of steel and other industrial materials by wide margins. ...

... The Chinese government has been holding down electricity prices as an anti-inflation measure even as spot prices for coal, the country’s dominant fuel for power generation, have doubled in the last five years.

Chinese electricity companies have responded by limiting the operating hours of coal-fired plants in the last two years and slowing construction of new power plants, causing blackouts that have focused more public attention on the energy efficiency of buildings. ...

[bratticus]

If I had to guess I'd say the contradictions between the "30-49 GW deficit" and the "3-6 GW deficit" stories are due to reporting on China as a nation and reporting on regions within China. Much is lost in the translation.

[bratticus]

Chongqing offers $185 mln subsidy to power suppliers on shortage
Reported by Jim Bai and Tom Miles; Editing by Jonathan Hopfner / Reuters / June 16, 2011

... Southwestern China's Chongqing municipality will provide 1.2 billion yuan ($185 million) in subsidies to power generators and grid operators to encourage electricity supplies amid expected shortages in summer, the State Grid News reported on Thursday.

Power shortfalls in Chongqing are expected to reach up to 2 gigawatts (GW) from July to September, versus an estimated peak load of 12 GW, the newspaper report said. ...

[bratticus]

Reuters ran revisions of this three times. This is the latest one I've seen so far.

TABLE-China power shortage forecasts by region
Reporting by Jim Bai and Tom Miles; Editing by Chris Lewis / Reuters / June 15, 2011

Following are details on summer power shortage forecasts,
expected maximum loads, supply capacity in each region, as
reported by local grid operators, local governments or official
media.

All numbers are in gigawatts (GW).

Code: Select all

                                                    capacity   
CENTRAL CHINA   
  Jiangxi      2.2-2.4             14.5              12   
  Henan          4.85                               50.7^     
  Hunan          4.0                16              11.8    
  Chongqing      2.1               8.5*             11.6^   
  Hubei        1.8-3.8~           25.2              49.1^    
EAST CHINA    
  Zhejiang      3.5-5.0             50              57.2^   
  Anhui         2.5                                 29.3^   
  Jiangsu       11.0                69              59   
  Shanghai    0.6-1.1            28-28.5            27.4   
SOUTH CHINA*   
  Guangdong     4.0-6.5             73              70.9^   
  Guizhou      1.5-2.0              12              32.8^   
  Hainan        0.2                 2.3 -2.5         3.9^   
  Guangxi                           13.5-15.4       25.2^    
  Yunnan                            11-12           36.2^   
NORTH CHINA   
  Beijing        1.02               19.1             6.3^   
  Shandong       1.0                52              62.7^   
  Hebei          3.0                25-26.6         23.6   
  Tianjin        1.5                11.4            10.9^   
----------------------------------------------------------   
  Total#        42.87-47.87


^ total power generating capacity at the end of 2010. It
differs from supply capacity that includes delicate power
supplies from other regions or excludes delicate generation for
other regions. In addition, different types of generators,
nuclear, thermal, hydro or wind, have different utilisation
rates and thus represent different effective supply capacity.

* Forecasts are for the second quarter.

The prior one had this for total vs. the current one:
Total 44.85-49.85 (June 2)
Total 42.87-47.87 (June 15)

[bratticus]

Drat, the previous post is not editable any longer by me and it contains the link to the June 2 version of the report with the text of the June 15 version.

The correct link is:
TABLE-China power shortage forecasts by region

[bratticus]

Nitrogen prices to approach 2008's record high
Agrimoney.com / June 15, 2011

... The timing change was aimed at conserving supplies of the fertilizer for the domestic market, and curtailing an energy-intensive industry in the face of power shortages. Indeed, energy prices are believed to have lifted China's production costs above those in the Ukraine. ...

[bratticus]

Coal costs drive power producers into the red
Xinhua / June 20, 2011

BEIJING - China's five biggest power companies have reported increasing losses in their thermal power business ventures as they continue to struggle with rising coal costs and capped electricity prices.

Combined losses for the five companies' thermal power ventures reached 12.16 billion yuan ($1.87 billion) in the first five months of this year, almost triple that of last year, the China Electricity Council (CEC) said Monday.

These losses translated to an overall decrease in profits for the companies, with a total of 5.57 billion yuan in combined losses for the companies during the first five months of this year, the CEC said.

... The council warned that these companies' financial woes will make it more difficult to ensure adequate supplies of power for the summer, when electricity usage peaks. ...

[bratticus]

Rising coal costs drive China's power shortage
Xinhua / June 21, 2011

... Combined losses for the five companies' thermal power ventures reached 12.16 billion yuan ($1.87 billion) in the first five months of this year, almost triple that of last year, the China Electricity Council (CEC) said Monday.

... The council warned that these companies' financial woes will make it more difficult to ensure adequate supplies of power for the summer, when electricity usage peaks. ...

China prepares for summer power crisis
UPI / June 20, 2011

BEIJING, June 20 (UPI) -- China's top five power companies reported increased losses as they cope with rising coal costs and a cap on electricity prices, the China Electricity Council said, warning that the losses would make it more difficult to ensure adequate supplies of power during the summer.

The announcement comes as China faces a looming power crisis this summer, which State Grid Corp. of China, the country's leading power distributor, said could be worse than 2004, when China suffered the worst power shortage since the beginning of the 1990s.

The 26 provinces under its service could face combined power shortages of 30 million kilowatts this summer.

China, the world's biggest consumer of energy, relies on coal for more than 70 percent of its energy needs.

... Up to 24,000 of its customers, mostly industrial users, would face power rationing this summer, the highest number since 2003. ...

[bratticus]

Shanghai to ration electricity due to power shortage
By Chris Hogg / BBC / June 20, 2011

Offices and shopping malls in the Chinese city of Shanghai will be urged to close their doors on the hottest days of the year this summer.

The power rationing is necessary due to the country's shortage of electricity.

The electricity grid serving China's financial hub does not have the capacity to meet peak demand the authorities say.

China has been coping with power shortages since March, because of coal supply problems and a drought.

When the mercury in the thermometer hits 37C (98.5F) - not that unusual in summer here in Shanghai - power rationing will get under way.

Some 24,000 businesses - mainly factories and other industrial plants - will face mandatory power cuts.

98.5F? reminds me of a little song I once heard ... http://youtu.be/d3QYaO59Q5A

[astalavista_b]

When you need air conditioner most, you must close it, . That has an effect on trade through shopping centers at China.
The more China is hungry for energy, higher commodity prices will be on the market.

"Over 3,000 non-industrial businesses will have to turn off air conditioners periodically if temperatures hit 35 degrees Celsius (95 degrees Fahrenheit) to ensure there is enough power for residents, the Oriental Morning Post said.
Demand for electricity during the hot summer months will exceed supply by up to 2.1 million kilowatts, an official with the Shanghai Municipal Electric Power Company told the newspaper."

http://ca.news.yahoo.com/shanghai-ration-power-offices-malls-094633599.html

[nocar]

I had no idea that the Chinese have become dependent on air-conditioning. When did that happen?

[astalavista_b]

I had no idea that the Chinese have become dependent on air-conditioning. When did that happen?

Shanghai is the wealthiest place at China, that's why air conditioner usage is important I guess. Gdp is US$ 11,134 which is the highest ranking at Chinese districts.

http://en.wikipedia.org/wiki/Shanghai