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Why are some Chinese provinces affected by reduced electrical power these days?

electrical power consumption
What is causing the current electricity shortage in seven Chinese provinces, and how is it affecting the PCB industry?
Written by: Guro Krossen, 
Communication Manager

During the last weeks a situation, provoked by the Central Chinese Government has arisen in some Chinese provinces.
Seven Chinese provinces have begun implementing peak-load shifting for industrial energy consumption, to help improve the desired climate goals set by the National Development and Reform Commission (NDRC) in China. According to the climate goals, China aim for carbon neutrality by 2060. The last months results has not been satisfying, thus this action being implemented.

What is causing this situation?
This is a situation provoked by the Central Chinese Government to reach their climate goals with carbon neutrality by 2060 and it is affecting Chinese industrial sectors. Last week the 14th Five Year Plan (FYP), a top-level policy blueprint for the next five years was released with actions to be taken.

How are the climate goals affecting the PCB Industry?
China’s state planner recently pressed seven provinces to use energy more efficiently after they missed key energy consumption targets in the first quarter. Guangdong province, where most PCB manufacturers are, is one of the seven.

Will this affect all PCB manufacturers?
At the moment, it’s the manufacturers in the seven provinces that are affected.

Some cities in the heavily industrialized Guangdong province, such as Guangzhou, Foshan, Dongguan, Huizhou, Zhuhai, Zhongshan and Chaozhou have begun implementing peak load-shifting for industrial power consumption, according to local media reports. Peak load-shifting is the process of staggering peak power demand to reduce the pressure on supply infrastructure.

How is ELMATICA reacting to this situation?
We are monitoring the situation closely with daily meetings and updates from our manufacturing partners in the province and will come back to you with further updates as soon as possible.

Official Statement:
Liu Dechun, director of Environmental Protection and Resource Conservation at the National Development and Reform Commission (NDRC) reaffirmed to representatives from the affected provinces in a video conference the need to meet annual energy consumption objectives, according to astatement (link in Chinese).

“It is necessary to vigorously promote key energy-saving and carbon-reduction projects, and accelerate the energy-saving transformation of key industries”, as well as to speed up elimination of outdated capacity, the NDRC said.

Please see external sources:

https://asia.nikkei.com/Spotlight/Caixin/South-China-faces-manufacturing-curbs-amid-power-shortages

https://www.nasdaq.com/articles/chinas-state-planner-urges-regions-to-tighten-energy-controls-2021-05-13

https://www.spglobal.com/platts/en/market-insights/latest-news/electric-power/052421-analysis-china-lng-demand-outlook-strong-amid-warnings-of-summer-power-shortages

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Norway (Google maps)

Phone: +47 22 09 87 00
Fax: +47 22 22 03 25
inbox@elmatica.com

Org.nr.: 921 513 240 /
DUNS nr. 519297139

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Norway (Google maps)

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inbox@elmatica.com

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