Article Image

IPFS News Link • Energy

China Extends Power Cuts On Menacing Drought As Lithium, Metals, Solar, And Rice At Risk

• by Tyler Durden

Power rationings are essential to ease electricity demand due to a menacing heatwave and limited rainfall that is driving down hydropower generation while cooling demand skyrockets -- the combination is dangerous in terms of grid stability and is primarily why power cuts were prolonged. 

Morgan Stanley analyst Simon Lee told clients Sunday that the provinces with 84 million people and a key manufacturing hub for semiconductor and solar panels faced "the hottest temperatures and the worst drought of the past 60 years." Sichuan heavily relies on hydropower generation for 82% of its power needs. About half of the renewable energy source has been slashed because rainfall along the Yangtze River since July has been 45% below average, the lowest since 1961. Falling hydropower generation comes as electricity demand in the province jumped 65 gigawatts, nearly a quarter higher than last year.