A wide swathe of China has suffered outages since May due to soaring prices and tight supply of coal, a key fuel for its power generation, restricted power plants’ operations, and robust industrial activity after the Covid-19 pandemic stoked demand.
China’s measures to stabilise the coal market and boost profitability of power plants ranged from approvals for greater coal production to a crackdown on coal price speculation and freeing up electricity prices.
But China’s state power provider has recently warned of a “tight balance” between power supply and demand in the country through the winter until spring. We rake a look into three major reasons behind China’s power crunch
