China faces tight power supply and demand this year

Xinhua, May 14, 2011

China is facing expectations of tighter power supplies this year with expanding power supply shortages possible this summer, an industry report said Friday.

The average utilization of thermal power equipment reached 5,370.75 hours last year, an increase of 209.33 hours year on year, according to the report jointly released by the State Electricity Regulatory Commission(SERC) and China Electricity Council (CEC).

Yu Yanshan, deputy head of the general administrative office of the SERC, warned that a reading between 5,300 and 5,700 hours indicates a tight power supply and demand, while above 5,700 indicates probable power shortages.

A tight power supply and demand has been seen in many Chinese provinces, well ahead of the normal peak consumption season, due to increasing demand and coal shortages. The CEC warned last month that the power supply shortage may be expanding this summer, as the average utilization hour of thermal power equipment continues to grow year on year.