Extreme heat propels more Chinese provinces' peak power loads to record highs

Extreme heat is sweeping across China with peak power loads hitting record highs in more provinces recently, putting pressure on the grid as well as raising concerns about the supply of power generation fuels, such as coal, natural gas and LNG, market sources said.

Record high temperatures were recorded by 71 national weather stations over June 13-July 12, with the highest exceeding 40 degrees Celsius in many cities, state-owned media People's Daily said July 14.

A heatwave in eastern China pushed electricity loads in Zhejiang, Jiangxi and Jiangsu provinces to record highs earlier this week, according to local government announcements and state media. Jiangsu and Zhejiang are China's second- and third-largest power consumption provinces, just behind Guangdong.

The peak power load in Zhejiang and Jiangxi reached record highs of 101.9 GW and 29.587 GW on July 11, respectively, while the highest electricity load in Jiangsu also hit a record of 121.42 GW on July 12, they said.

The sharp increase in household power consumption is being driven by the use of air conditioning and cooling systems, as well as recovering industrial power use as outbreaks of COVID-19 slowed in some provinces.

Zhejiang's industrial power consumption has recovered to March levels, and its total power consumption increased 4.06% year on year over the January-June period, the provincial government said July 12.

Zhejiang's peak power load is expected to reach around 106-107 GW this year, an increase of 5.8%-6.8% year on year, it said, noting that tight global energy supply and high energy prices have put pressure on the government to ensure local energy supply.

The provincial government said it would ensure that at least 15 days of coal inventory for local power plants and boost efforts to secure natural gas, and lock in prices and volumes for 1 GW of additional gas-based power generation during peak summer.

The Jiangsu Development and Reform Commission expects hot weather to continue for days this summer, which would keep the province's power load high for a while, resulting in tight power supply in the region.

"We will closely monitor the balance of electricity supply and consumption, urge local power generators to maintain stable and full power generation, as well as increase power procurement from other regions to ensure supply," Jiangsu's planning body said July 12.

Strong power demand

China's power consumption is expected to grow around 5%-6% in 2022, with national power supply and demand generally balanced, trade body China Electricity Council said in its China Electric Power Industry Annual Development Report 2022, released July 6.

It said some provinces in eastern, central and southern regions may have tight electricity supply during peak hours.

China's Central Meteorological Observatory maintained its high temperature orange alert at 6 am local time on July 14, warning that temperatures in Jiangsu, Zhejiang, Sichuan, Chongqing and Shaanxi provinces would top 40 C on the day.

The peak power load in Henan, Shandong and Ningxia provinces had hit record highs last month due to a heatwave.

So far, many provinces, including Zhejiang, Anhui, Liaoning, Shandong, Heilongjiang, Shanghai, Inner Mongolia, Henan, Ningxia, Guangdong and Yunnan have issued guidelines for "orderly" electricity consumption to prevent power outages, according to domestic media.