China faces power cuts owing to shortage of thermal coal
Several Chinese cities are facing energy shortage and have imposed restrictions on electricity use.
Chinese authorities have ascribed these power shortage problems to a surge in power demands due to an unusually cold winter and to the growth of industrial production as it faces a shortage of thermal coal.
As per reports, China’s import ban on Australian coal owing to fractured trade relations, has also partly exacerbated the situation.
Many local power plants depend on high quality Australian coal and now they are having trouble finding an alternative as country’s coal mines are struggling to fill the shortfall. It has hit energy supplies and sent prices soaring.
As per state media, Chinese experts warn that such shortage also exposes problems in the power supply in China, as the suspended coal imports will exacerbate the imbalance in power supply.Data from industry website cctd.com.cn showed that China imported 75 million tons of coal from Australia in 2019, which is roughly 3% of China’s coal consumption.
