China Power Crisis: Electricity Crunch Forces Blackouts For Households, Factories; Threatens Economy

A growing power supply crunch in China is triggering blackouts for households and forcing factories to cut production, threatening to slow the country's vast economy and place even more strain on global supply chains, CNN reported.

Companies in the country's industrial heartlands have been told to limit their energy consumption in order to reduce demand for power, state media reported. And supply has been cut to some homes, reportedly even trapping people in elevators, the report said.

An "unexpected and unprecedented" power cut hit three northeastern provinces on Monday, according to the Global Times, a state-run tabloid. The newspaper reported Tuesday that power rationing in Heilongjiang, Jilin, and Liaoning provinces has "resulted in major disruptions to the daily lives of people and business operations."

Power shortages have also hit the southern province of Guangdong, a major industrial and shipping hub. Local officials that many firms are trying to reduce demand by working two or three days per week.

China's State Grid Corporation said Monday that it would "go all out to fight the tough battle of power supply," making every effort to secure residential consumption.

China was hit by a similar power crunch in June, but the situation is getting worse because of a perfect storm. Its industries are facing huge pressure from soaring energy prices, and from Beijing to tackle carbon emissions.

The world's biggest polluter is trying to meet a pledge that its carbon emissions will peak before 2030. That requires its provinces to use less fossil fuel for each unit of economic output, for example by burning less coal to generate power. At the same time, demand for Chinese-made goods has surged as the global economy emerges from the pandemic. The result: not enough power to go round, the report said.

Major international suppliers are bracing for impact on businesses already confronting delays caused by shortages and global shipping delays, the report added.

The lack of electricity has not only restricted industrial production, but has also had some impact on the local residents.

Some netizens said that the power outage lasted for three days, and there was no signal on mobile phones, while some media reports showed that traffic lights on the main roads of Shenyang, the capital city of Liaoning, could not operate normally, while some shops could only operate with candles.

Furthermore, potential contamination caused by blast furnace gas reportedly took place on Sunday in a steel production company in Liaoning after regional power was cut, causing 23 injuries, the media reported on Monday.

A textile factory in Jiangsu received a notice to cut power completely from mid-September to early October, in what could be one of the longest power cuts for the company, a manager told the Global Times on Monday.

The power cut has caused 500 workers to go off work in a month-long paid time off, and orders for both domestic and overseas markets have been rescheduled or cancelled, the manager said, indicating that the potential losses for the company could be huge, the report said.

With IANS Inputs