Chinese ICT - Summer Energy Crisis Hits China's Eastern Cities
June 25, 2004
As the summer heat descends upon China's eastern seaboard, an energy crisis is emerging in major industrial areas such as Shanghai, Beijing, and Tianjin. In an effort to avoid random blackouts, the Shanghai municipal government recently authorized its strictest measures in more than decade for restricting commercial power usage.
The first measure stipulates that from mid-June through mid-September all sectors of the manufacturing industry must restrict power usage for two days per week. On days in which power usage is restricted, power will be supplied only between the hours of midnight and eight AM. The second measure is stricter, but limited to certain districts of the city. In those districts subject to the second measure, during the period from late June until the end of August, power will be periodically suspended for the duration of an entire week at a time.
The Taiwanese business community in Shanghai said that the restrictions on power usage have not caused any unexpected problems, but enterprises heavily engaged in exports have found that the lack of electricity during the day dramatically interferes with normal product delivery schedules.
Many Taiwanese traditional industries centralized in the districts of Minhang, Jiading, and Qingpu were greeted with the news that they will face the tougher, weeklong energy restrictions. Many Taiwanese businesses have expressed frustration that power is being restored in the middle of the night at hours in which it is unreasonable to require workers to return to the production line. In the past, power would usually resume in the evening between five and eight PM, when it was still possible to resume production. Executives from several Japanese financial enterprises located in the Songjiang export-processing district also pointed out that while they were sheltered from the negative effects of last year's electricity regulation policies, this year they have been targeted for the two-day per week energy restrictions, and consequently, were forced to buy their own power generator.
In addition to the new restrictions in Shanghai, Tianjin and Beijing are also taking action to curb electricity usage. Although Beijing and Tianjin have yet to enter the height of the summer season, energy usage has already reached peak levels. The hot and muggy conditions in Beijing have increased the burden on the power supply. On June 27, power usage for the city reached 8,310,000 KW, only a slight degree lower than last year's record of 8,330,000 KW. An official from the Beijing city government announced that the government's goal is to reduce the city's use of the current power supply by 20 percent.