BEIJING – China’s all-powerful economic planning agency today waded into the country’s power crunch, attempting to reassure residents and businesses in areas hardest hit by shortages that it has the coal use and supply situation under close watch.
State planner National Development and Reform Commission said it has asked local governments to closely monitor coal use and stocks at power plants, and to improve the fulfilment of medium- and long-term contracts to supply thermal coal.
The move comes as electricity shortages continue to paralyse parts of the world’s No. 2 economy in various regions, particularly the northeast.
A shortage of coal supplies, toughening emissions standards, and strong demand from manufacturers have pushed coal prices to record highs, sparking widespread curbs on usage, while dimming the economic growth outlook.
China has already called for an increase in imports and the ramping up of the domestic production of coal, a key fuel used for the majority of its power generation.
Northeastern China is one of the hardest-hit regions, with news reports and social media posts flagging problems in cities like traffic lights and 3G communications networks being down, fear of water supply disruptions, and shops operating by candlelight.
Officials have sought to reassure citizens that coal supply will be adequate ahead of the upcoming winter and rising demand for fuel for heating.
The main state grid operator has also attempted to calm customers twice this week, saying it will work to guarantee coal supply and strictly control power use by high-energy consuming and polluting sectors, ensuring electricity to residents during the October holidays and winter heating season.
Today, the People’s Daily reported that coal resources for heating and power generation in the northeastern provinces of Jilin, Heilongjiang and Liaoning are ensured as some suppliers and producers recently signed medium- and long-term coal contracts. – Reuters, September 29, 2021
