By Shivani Singh

BEIJING (Reuters) – China is in the grip of a power crunch as a shortage of coal supplies, toughening emissions standards and strong demand from manufacturers and industry have pushed coal prices to record highs and triggered widespread curbs on usage.

WHAT LONG IS THE POWER SUPPLY PROBLEM IN CHINA?

The restrictions on electricity use at home have just been implemented. China’s huge industrial base has struggled with intermittent rises in electricity prices since at most March. Inner Mongolian authorities ordered that heavy industry and an aluminium smelter be shut down to ensure the province meets its first quarter energy goal.

Due to hot temperatures and reduced hydropower generation, Guangdong’s southern province was unable to consume as much in May.

China’s eastern coast has also seen recent power and consumption cuts.

HOW LARGE ARE CHINA’S ENERGY USAGE TARGETS?

China’s President Xi Jinping declared in 2020 that China would reduce its carbon dioxide emission per unit of GDP (or carbon intensity) by more than 65% by 2030, a United Nations summit.

China is the largest producer of carbon dioxide, and other pollutants gases in the world. Its ability to reduce emissions is crucial for the fight against climate change.

Xi pledged significant increases in renewable energy capacities at the summit. However, his targets for carbon intensity have been closely monitored since then, particularly at the provincial level, where the local authorities are responsible for ensuring that the targets are met.

HAS THE ENERGY USE RECORDED BEFORE XI Announced THOSE GOALS.

The National Development and Reform Commission, China’s primary planning agency, reported that only 10 of the 30 regions of mainland China met their targets for energy reduction in the first six months 2021.

The NDRC issued harsher sanctions in September for those regions who fail to reach their goals and promised to hold officials responsible for limiting the absolute energy consumption in these regions.

HAS CHINA PRODUCED LESS GENERAL POWER IN 2021 DURING TARGETS

China’s August 2021 total power generation was 10.1% higher than that of 2020 and almost 15% less than the slot in 2019. This is because utilities in China increased power production to satisfy rising industrial demand.

Higher levels of toxic emissions were also a result. They exceeded pre-pandemic levels during the first quarter.

WHAT RESPONSES DO REGIONS HAVE FOR LIMITING THE POWER OF CERTAIN USERS.

Zhejiang provinces in Jiangsu and Yunnan have asked factories for power limits or to curb their output.

Power providers sent notices to heavy consumers to either stop production in peak periods (between 7 and 11 pm) or to shut down operations for up to 3 days per week.

Other users have also been instructed to close until further notice, or on a specific date. This includes the soybean processing plant in Tianjin (eastern China), which has been closed since Sept. 22.

WHERE INDUSTRIES HAVE BEEN Effected BY THE POWER SHORTAGES.

This has a broad impact on the industries and also includes energy-intensive areas like steel-making and cement manufacturing.

Power curbs have affected at least 15 Chinese listed firms, which produce various materials and goods such as aluminium, chemicals, dyes, and furniture.

In northeast China, households were told by authorities to use less water heaters and microwaves in order to preserve power.

What HAS BEEN BEIJING’S RESPONSE TO THE POWER CRUNK?

While the NDRC indicated that they will be working to address power shortages Friday, the NDRC did not specify what specific steps they would take.

China’s ongoing trade dispute against Australia is a major problem in the near term. Australia is second on the list of largest coal exporters. Beijing has also had to reduce coal shipments from Australia as well as increased safety standards. This has caused delays in production at Chinese mines due to a number of accidents.

The global shortage is also a factor, with many major economies looking to buy the fuel concurrently after COVID-19 was lifted.

The Chinese State Grid Corporation said Monday that it will “go all in to win the fight for power supply,” and will dispatch more power to its customers.