China’s southern and central regions, which depend heavily on hydropower, will face a power supply squeeze this winter due to strong demand growth and low water storage, says China’s National Energy Administration (NEA).

This echoes a statement by the state-run China Southern Power Grid Corporation, which estimated that shortages in five southern provinces – Guangdong, Guizhou, Guangxi, Yunnan and Hainan – would amount to about 14 GW. This shortage represents roughly 8 per cent of the total installed capacity of the Southern Power Grid, and will potentially curb industrial operations.

In August, China’s power use grew at the slowest pace this year at 9.1 per cent on a year-on-year basis, with consumption growth by heavy industry falling to single digits for the first time since February.

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