Monday 27 September 2021

Under Energy Consumption Dual Control Scheme, China Sees Large-scale Electricity Curbs

Have you been cut off the electricity?

 In the past few days, power-limiting has been a very popular term. "Dual-control" and "power curb" have been on the hot search. What is going on? What is dual control? Why was the power cut? These three consecutive questions ask you how much you know, and let's explore it hereunder.

Dual Control Scheme of Energy Consumption

Recently, the National Development and Reform Commission directly named nine provinces in a regular press conference: Qinghai, Ningxia, Guangxi, Guangdong, Fujian, Xinjiang, Yunnan, Shaanxi, Jiangsu, the energy consumption intensity in the first half of the year did not drop but increased instead of the same period last year! In addition, the reduction rate of energy intensity in 10 provinces did not meet the schedule requirements, and the national energy conservation situation is very severe.

In order to alleviate the pressure from all parties, the energy consumption of many places has been lit up with "red lights", and those provinces  "named" by the Ministry of Industry and Information Technology have responded with measures one after another.

Why are there nation-wide power rationing?

1. Large electricity consumption in factories: my country's economy is recovering rapidly, and factories need a lot of electricity to operate, which has led to a rapid increase in electricity consumption.

2. Electricity consumption growth for residents: Air conditioning is always inseparable in summer every year, like the stove in Chongqing, these days because the "autumn tiger" is more than 30 degrees Celsius, it is impossible to sleep without the air conditioning at night, which leads to the fact that it will not be turned off 24 hours a day. air conditioner. Although there are only two or three months, such a 24-hour power consumption is indeed amazing.

3. Power generation is declining: The country's power generation mainly relies on thermal and hydraulic power. However, the recent surge in power consumption has led to high-load operation of thermal power plants, resulting in some equipment failures. At the same time, after entering the autumn and winter seasons, in the dry season, hydroelectric power generation is also declining. The demand for electricity has soared, and the amount of electricity generated is declining, and electricity consumption is tight.

Power Curb across China

4. The rise in coal prices has the effect of dual stations: coal is a necessity for thermal power generation. 70% of China's electricity comes from coal power. In May, it was 500 yuan/ton, but in September, affected by the double typhoon, coal storage was in a hurry, and it had risen to 1,400 yuan/ton. Due to the excessive increase in coal prices, electricity prices cannot rise, and a coal-fired power plant can only generate power at a loss. In addition, there is less coal stored in power plants, which limits the power generation capacity of power plants, and there is a situation of tight power supply.

5. Economic transformation: Power curtailment can also speed up the elimination of outdated production capacity and speed up the upgrading of the industrial structure. During the critical period when global trade is increasingly dependent on China, it can also force foreign trade companies to actively raise prices, increase their bargaining power, prevent the disorderly expansion of production capacity, and maintain strategic determination during the critical period of severe inflation in other countries.

6. Dual control of energy consumption: Recently, the National Development and Reform Commission issued a notice to further improve the dual control of energy consumption, clarifying the overall arrangement of the dual control of energy consumption, and requiring all regions to take strong measures to ensure that the annual energy consumption dual control target is completed , Especially the task of reducing energy intensity. Therefore, in order to complete the energy consumption reduction target, the first-level and second-level early warning provinces and cities have implemented them from the top to the bottom, and continue to increase the number, so that power rationing and production suspension become a reality.

Dual Control Scheme of Energy Consumption refers to the dual control of total energy consumption and intensity. At the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China, it was proposed to implement dual control of energy consumption. The implementation of the “dual control” action of total energy consumption and intensity is an important measure to promote the construction of ecological civilization and solve the tightening of resource constraints and serious environmental pollution. It can save energy resources and reduce pollutants and greenhouse gases from the source. Emissions can also force the transformation of economic development mode and improve the green level of my country's economic development.

The action of dual energy consumption control is to reduce the dependence of economic and social development on energy and carbon emission growth, and promote the peak of carbon and the realization of goals. By 2035, the optimal allocation of energy resources and the overall conservation system will be more mature and finalized, which will strongly support the achievement of the goal of steady and steady reduction of carbon emissions after reaching the peak.

In general, the reason for the national power curtailment in 2021 is due to the national energy consumption dual control policy, coal price rise, economic transformation and other reasons. The national power curtailment is for dual energy consumption control, and the energy consumption dual control is the "14th Five-Year Plan". "It is a critical period and window period for achieving carbon peaks and an important measure to achieve carbon peaks and carbon neutrality.

["Intelligent Agriculture" and "Double Carbon" National Strategies]

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