Tuesday, August 23, 2022

Drought roiling China’s already evaporating economy

 Factories in the southwestern Sacheon region are expected to be closed until Thursday due to a heat wave and drought in what is expected to be the latest global supply chain crisis in the country.


Foreign manufacturers including Apple and Toyota, as well as Chinese solar manufacturers, plan to resume production on Sunday after a six-day shutdown. However, local authorities declared a level one emergency and ordered the plant to close on Sunday due to bad weather.


About 16,500 businesses in Sichuan province were affected by the power shortage Some Chinese media said the problem could cause factory shutdowns in cities along the industrial east coast, but scientists believe last September's nationwide blackout will not happen again this year.


Over the past two decades, China has built hydro, wind and solar power in the western region to provide cheap electricity to industrial cities in the eastern region. Sichuan province is located on the Yangtze River and has about 1,400 tributaries, so to supply 80% of the consumed electricity, several hydroelectric power plants were built, and the excess electricity was sold to neighboring provinces.


Reservoirs in Sichuan were down 40 percent in July and 50 percent in August compared to last year, while much of the world suffered from hot and dry July weather. The state-owned Sichuan Power Company has announced that its capacity has been cut in half due to the recent hot weather and drought.


The National Meteorological Center of the China Meteorological Administration (CMA) has issued a red high temperature alert for at least four provinces where temperatures above 40 degrees Celsius have been recorded in the last 48 hours for 28 consecutive days. .. from July 20 to August 17. From June 1 to August, the average number of high temperatures across the country was 12 years old, the highest since 1961. Usually this figure is about seven days. On August 14, the Sichuan government ordered the closure of all factories and air conditioners in shopping malls and public facilities between August 15 and 20. On Sunday, he extended this deadline to August 25. Among the factories affected last week were Foxconn, the Taiwanese maker of the iPod and Apple Watch, and BOE Technology Group Co Ltd, which supplies Apple with flat LCD and OLED panels. Toyota Japan has announced that sales in mainland China will be hampered until production resumes. In an article on Saturday, IT columnist Yuan Xilai said that Sichuan solar power producers Tongwei, Contemporary Amperex Technology, JinkoSolar and GCL New Holding could disrupt the global supply chain. Yuan said it will be difficult for Sichuan to diversify into solar and wind power in the short term or rely on coal power. Li Junfeng, a board member of the China Energy Research Association, told Yicai.com that it is not normal for the water level in the Yangtze to drop significantly from the end of July to the beginning of August. Between November and April. . Lee said it was the fastest dry season since records began in 1951. He said that since the power grid was designed and built to transfer excess electricity from Sichuan to other provinces, it would be difficult for other regions to transfer electricity back to Sichuan.


In a place that relies heavily on wind, solar and hydropower, its energy can easily affect the weather, he said. He said it is necessary to build more energy storage to ensure Sichuan's energy supply.


Sichuan province and the neighboring city of Chongqing experienced another extreme weather event in the summer of 2020 when the Yangtze River overflowed. The storm affected several residential and agricultural areas downstream and damaged 2.4 kilometers of the Three Gorges Dam across the Yangtze River in Hubei province.


Drought in the southwestern region and hot weather in China will continue next week, Water Resources Minister Li Guiying said on Saturday. He said the government has set up a drought relief task force to provide water to cities along the Yangtze River. He said: At the same time, in the event of heavy rain, there will be a flood in the northwest and upstream of the Zard River. According to media reports last week, some areas in Shanghai, Zhejiang and Jiangsu provinces ordered factories to partially halt production to conserve electricity. It is not known if this order will be extended. Jin Xiangdong, spokesman for the National Development and Reform Commission, said on August 16 that the reduction in hydropower will create more demand for coal-fired power plants.


China currently produces 60% of its electricity by burning coal. In July, electricity production increased by 4.5%, coal - by 5.3%.


Last September, China faced a national energy crisis, and the power plant was placed in the middle of coal and electricity, not stimulating the market. For several months, the central government stabilized domestic coal supplies, boosting prices.


The university is a member of Jiangsu University, Renmin University and the National Energy Committee and the National Energy Committee, and said that the government should continue to increase the number of coal suppliers after the electricity shortage problems in Sichuan.

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Drought roiling China’s already evaporating economy

 Factories in the southwestern Sacheon region are expected to be closed until Thursday due to a heat wave and drought in what is expected to...