China Shuts More Coal Power Plants; Warns on Shortage

(Bloomberg) — China, the world’s second-biggest energy consumer, shut 2.5 percent of its coal-fired power plants, prompting local governments to limit electricity consumption and issue warnings on possible blackouts.

Insufficient coal supplies forced the closure of 58 power- generating units in central and northern China as of July 6, or 14,020 megawatts of capacity, data from the State Grid Corp. of China showed yesterday. The nation’s total coal-fired capacity stood at 554,420 megawatts last year, according to the State Electricity Regulatory Commission.


Coal inventories at State Grid, the country’s biggest power distributor, were enough for about 11 days of consumption as of July 6, compared with 12 days in April and 15 days in March. China shut 7 percent of its coal-fired plants in January after the worst snowstorms in 50 years hampered fuel transportation, leading to electricity shortages affecting half of the nation’s 31 provinces.

“The power problem is beginning to look deep-seated and structural and unlikely to be resolved rapidly,” said John Kemp, a London-based analyst with Sempra Metals Ltd.

Bloomberg