Coal Shortage in China It''s Real:Coal Shortage in China to Restrict Power Supply in 2008
BEIJING--March 4, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--China's coal supply, again, has become a bottleneck in the power supply. A report issued by the China Electricity Council (CEC) states that the coal shortage will become one of the major factors in the restriction of power supply in 2008. Before the report was released, it was believed that the shortage was a temporary issue due to the recent bad weather.
The report states that provinces, including Shanxi, Hebei, Shandong, Henan and Hubei, will have to conduct demand-supply control provided that the coal demand can't be satisfied. Some will have to rely more on hydropower, especially in China's southern power grid. The imbalance between power demand and supply is expected to worsen this year. The grid is expected to run into an electricity shortage in the dry season and experience a power shortage in peak hours during the flood season. The power shortage in Yunnan and Guizhou will mainly occur in the dry season, but Guangdong and Hainan are expected to experience a shortage all year.
According to the report, the power shortage in Guangdong reached 10 million kilowatts (kW) in February, and the maximum power shortage is expected to reach 12 million kilowatts in March.
Transportation is another factor. Some new coal-fired units failed to coordinate transportation arrangements, especially in regions with difficulties in railway transportation such as Shandong and central China. The difference between contract supply volume and actual demand is large. In addition, rising prices in coal supply contracts have greatly increased the burden of electric power enterprises.
China has been in a power-coal shortage since the beginning of the year. The stockpile of coal for power has been decreasing since mid-January and even dipped a supple of less than eight days of consumption on January 27, 2008. After the government's intervention, the stockpile increased to about 14 days of average daily consumption. However, as power consumption gradually increases in previously weather-affected areas, the power-coal supply could fall into another shortage, the CEC report stated.
Industrial Info Resources (IIR) is a marketing information service specializing in industrial process and energy related industries with products and services ranging from industry news, forecasting, plant and project databases, as well as multimedia advertising campaign assistance.
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