Written/Translated by: Sister Karamazov

Image source: https://asia.nikkei.com/Spotlight/Caixin/Why-the-lights-are-going-out-in-China

According to multiple news resources within Communist China, several provinces around the country has declared an emergency on electricity shortage as coal supply becomes scarce and coal price spikes. Here are some of the examples:

According to rfa.org, this round of electricity rationing is likely to be prolonged and may therefore affect the Chinese manufacturers and economy in a relatively long term. There are several factors that contributed to this round of severe electricity shortage: one is the fact that CCP’s Development and Reform Commission’s “Plan for Improving the Dual Control System of Energy Consumption Intensity and Total Volume” was released recently. And in this document, administrative targets were set on the upper limits of “energy consumption intensity” and “total energy consumption”.

The other reason being the spiking coal price and banning of Australia’s coal has decreased the supply of coal, which is the major source (around 60% by 2020, as shown in the figure below) for electricity generation within Communist China:

Image source: https://en.wikipedia.org/wiki/Electricity_sector_in_China#/media/File:China-electricity-prod-source-stacked.svg

Regarding the coal price increase, as of September 21, international coal price has reached $171.25/ton, which is a staggering 154.87% increase compared with that in the beginning of this year:

Image source: https://markets.businessinsider.com/commodities/coal-price






(The views and opinions expressed in this article are those of the author’s own)