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China power shortage may spread on low coal stocks
in-en.com  2009-12-23 16:17:51  

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China¡¯s major coal-fired power plants have only enough coal stocks for nine days of power generation as of last Wednesday, industry data showed, down from 12 days at the end of November and 15 days at the end of October.

The shortfall comes at a time when coal and power demand enters its winter peak season, stoking worries that a power shortage could spread as some Chinese provinces struggle with insufficient coal and power supplies.

However, a price driven power supply crisis that was seen in the summer of 2008 was unlikely to re-emerge as most power plants were still operating in the black even though coal prices have picked up again recently.

Soaring coal prices, combined with power price caps, forced many power generators to curb coal stockpiling and electricity production to reduce losses in the summer of 2008 when Beijing hosted the Olympic Games.

Coal stockpiles in stations in areas covered by the East China Grid, which includes Shanghai, Jiangsu, Zhejiang and Anhui provinces, would sustain only seven days of generation as of Dec 16, according to data compiled by Zhongneng Power Industry Fuel Co and published on an industry website.

Stocks in Anhui province would cover only four days of generation, the lowest among Chinese provinces, the data showed.

Coal stocks in regions covered by the Northwest Grid were the highest, enough for 17 days of use as of Dec 16.

Coal inventories in power plants in Beijing-Tianjin-Tangshan region were barely enough for six days of operation, state media have said.

Central China Hubei rationed power to industrial and commercial users from Dec 12 and nearly 20 per cent of coal-fueled power plants in the province had been shut down due to coal shortages while more were at risk of being closed.

China's coal production is concentrated inland and in the northern or southwestern provinces including Inner Mongolia, Shanxi, Shaanxi and Guizhou, while demand is mainly in the coastal regions, resulting in large long-haul coal shipments year after year. In addition, frequent mine closures due to accidents and insufficient transportation capacity also hamper coal supplies to power plants.
 


 
Author:in-en.com  From:in-en.com  Edit:Alina
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