Shenzhen TV:

Recently, some regions including Hunan and Jiangxi provinces have adopted measures to ration electricity use, drawing wide public attention. Are these measures related to Chinas goals for energy conservation and emissions reduction? How should we best strike a balance between electricity supply, energy conservation, and emissions reduction? Thank you.

Zhang Jianhua:

Mr. Zhao Chenxin will answer this question.

Zhao Chenxin:

Thanks for your question. Let me give some background information about recent rising energy demands. We have found that electricity demand is rising beyond our expectations due to the rapid growth of industrial production and the effects of cold waves.

Here are some specific figures. Since December, we have seen some of the highest demands for electricity from across the country in Hunan and Jiangxi provinces. According to our electricity production bulletins, Hunans production and use of electricity rose 19.8% in early December. In the last few days, its maximum electricity load measured 31,440MW, up nearly 2,000MW over its record peak. That increase is huge.

In early December, Jiangxis production and use of electricity rose by 18.4%, slightly smaller than that of Hunan but was still a large increase. The maximum electricity load in Jiangxi currently stands at 26,310MW. People who follow the power industry closely may know that peak energy consumption normally occurs in summer. However, Jiangxis recent peak was 500MW or 600MW higher than its record high in summer. That means both Hunan and Jiangxi have broken new records in power consumption.

Zhejiangs production and use of electricity earlier this month rose by 9.2%, which is among the highest in the eastern provinces. All of these factors are driving the demand for thermal coal. You may have witnessed that coal prices are also growing slightly, but I want to reassure you that we have sufficient coal inventory to guarantee supplies.

Until now, our electricity supply has been generally stable. Chinas household electricity use, including in Hunan, Jiangxi, and Zhejiang, have not been affected. With rising electricity demands in winter, the National Development and Reform Commission (NDRC) and the National Energy Administration (NEA) will work together with other departments and power companies to ensure a stable electricity supply. Hunan and Jiangxi have long been areas that require strong efforts to ensure a steady electricity supply in winter due to their relatively long distances from coal sources and limited access to electricity transmitted from other places. 

In face of electricity shortages, government departments in Hunan and Jiangxi have adopted several measures based on their predictions, to guide the orderly use of electricity by rationing its use among select businesses. This will hopefully balance power demand and supply, ensure households have access to electricity, and maintain the orderly operation of the power sector.

Unlike Hunan and Jiangxi, Zhejiang can guarantee electricity supplies for the entire province. Some areas in Zhejiang have limited electricity use to promote energy conservation and reduce emissions.

This is a relatively detailed introduction regarding the current situation. The NDRC will continue to address peoples concerns through various means. Next, the NDRC and the NEA will guide power and energy companies to synergize their efforts and ensure winter power supplies. We will focus on the following aspects:

First, improve electricity generation capacity and update operations.

Second, increase the supply of thermal coal through multiple channels. We have asked major coal production areas and companies in Shanxi, Shaanxi, and Inner Mongolia Autonomous Region to step up production while ensuring safety. At the same time, we will coordinate shipping to guarantee sufficient power supplies.

Third, for places that face short-term power shortages, we will rearrange power supplies to ensure that household electricity use is not affected. In general, please believe that our ability to ensure a stable energy supply is not a problem. Thank you.