China’s scorching southwest extends to power restrictions as drought and heat wave persist

SHANGHAI (Reuters) – China’s scorched southwest expanded restrictions on energy consumption on Monday as it grappled with dwindling hydropower production and soaring demand for household electricity during a prolonged drought and heat wave.

State meteorologists issued a “high alert” of heat for the 11th consecutive day on Monday, as extreme weather continues to wreak havoc on energy supplies and destroy crops. They also raised the national drought alert level to “orange” – the second highest level.

The agriculture ministry said on Sunday that the drought has already “severely” affected mid-season summer rice and maize in some southern regions.

The National Meteorological Center said 62 weather stations, from Sichuan in the southwest to Fujian on the southeast coast, saw record temperatures on Sunday. The situation could improve from Wednesday as a cold front moves into China through Xinjiang.

Chongqing, which saw temperatures hit 45 degrees Celsius (113 degrees Fahrenheit) late last week, announced that business hours at more than 500 malls and other commercial venues will be shortened from Monday to ease energy demand.

The malls on the list contacted by Reuters on Monday confirmed they had received the government’s notice and would abide by the rules. Two hotels on the list said they were still operating normally but would limit the use of air conditioners.

In neighboring Sichuan Province, a major generator of hydropower, authorities extended existing restrictions on industrial power consumers until Thursday, Caixin financial news service reported Sunday. Sichuan’s power generation has only reached half the normal level after a massive drop in water levels.

Battery makers were quoted by Caixin as saying that industrial power users in Yibin and Suining cities were asked to remain closed until Thursday.

Sichuan – a major energy supplier to the rest of the country – recently commissioned a new coal storage base to make sure its thermal plants can operate without interruption.

However, about 80% of its installed capacity is hydropower, which makes it particularly vulnerable to water supply fluctuations.

Several companies confirmed on Monday that they had restricted production due to restrictions on extended power supplies. Pesticide producer Lier Chemical Co Ltd (002258.SZ) He confirmed on Monday that the restrictions would continue through Thursday.

Ginko Solar (JKS.N)A major manufacturer of solar energy equipment said its manufacturing facilities in Sichuan have been halted as a result of the power shortage, adding that it was “uncertain” how long the measures would last.

Toyota Motor Corp. (7203.T) A company spokesperson said the company gradually resumed operations at its plant in Sichuan, China, on Monday, using a power generator, after suspending operations last week.

Many factories in Sichuan and Chongqing, including those of Catel battery manufacturer (300750.SZ) electric car giant BYD (002594.SZ)She has only been able to work partially in recent weeks due to a lack of power.

Sources familiar with the matter said Cattell’s Yibin factory manufactures battery cells for Tesla (TSLA.O)And there were fears that the unrest could eventually affect the US automaker, although production at its Shanghai plant has not changed.

China’s Twitter-like Weibo, criticized for using electricity generated in Sichuan, imposed consumption restrictions on Monday, and suspended decorative lighting in the riverside Bund and parts of the financial center in Lujiazui for two days.

The official Shanghai Daily said companies would be encouraged to “arrange” energy consumption to reduce peak loads, and some construction projects would be suspended.

Important agricultural areas have warned of the impact on crops, with Henan Province saying more than one million hectares of land have been affected by the drought so far.

About 2.2 million hectares across the Yangtze River basin were affected, according to the Ministry of Water Resources.

The state broadcaster CCTV said Lake Poyang, located in a floodplain of the Yangtze River, described as China’s “total” due to the role it plays in regulating water supply, is now 67% smaller than average. over the past ten years.

Additional reporting by David Stanway and Zhang Yan in Shanghai and Martin Quinn Pollard in Beijing; Additional reporting from the Beijing Newsroom; Editing by Kim Coogle, Jerry Doyle and Susan Fenton

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