BEIJING, October 18 (TMTPOST)— Recent electricity shortage’s impact on the economy is manageable, said Fu Linghui, the spokesperson of the National Bureau of Statistics, at the press conference on 2021 Q1-Q3 national economy held by the State Council Information Office of China.
Image Source: Visual China
Electricity shortages have occured in a number of locations in China, forcing factories to limit their production. Many financial institutions had therefore lowered their expectation of China’s economic growth this year. According to Fu, the price of coal, natural gas, and petroleum on the global market has been surging and breaking records, while the supply of electricity and coals in China also falls short. These have all contributed to the recent power shortage and impacted production.
The central government is paying close attention to this issue, Fu said. The State Council will provide further guidelines and make relevant arrangements in response to the power shortage soon, according to Fu. The state council has already taken measures to reform and stabilize supply and energy prices.
The supply shortage of coal and electricity will be relieved and its impact on the economy will decrease after relevant measures take effect, Fu said. Statistics of September show that there was an increase in electricity production.
Early months of power shortage have impacted power supply for households in Northeast China and forced factories across the country to reduce their production or even suspend operation temporarily, Xinhua News reported. It is reported that the power shortages were caused by a combination of factors, such as China’s heavy reliance on coal, unstable supply of clean power, and surging production activities driven by economic recovery across the globe.
China is the largest consumer of coal in the world. It relies heavily on coal power for household energy use and industrial operation. As of 2019, coal-powered energy accounted for more than 57% of China's energy consumption.