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Power & Gas Shortages In 13 Provinces As China Faces 70GW Shortfall - Asia News

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hatrack Donating Member (1000+ posts) Send PM | Profile | Ignore Wed Jan-23-08 01:46 PM
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Power & Gas Shortages In 13 Provinces As China Faces 70GW Shortfall - Asia News
Beijing (AsiaNews/Agencies) - China is facing its worst energy shortage in many years, with heightened demand caused by the intense cold and the snow, and insufficient coal supplies unable to keep up. After an energy shortage that has struck at least 13 provinces and reached about 70 gigawatts, approximately equal to the entire capacity of Great Britain, the government has ordered that coal be supplied first of all to the power plants.

The imposition of price controls on coal and the closing of thousands of mines not in compliance with safety regulations have affected coal supplies. The heavy snowfall of recent days has blocked the roads, cut off supply routes, and downed power lines. In seven counties, the power circuits have been completely shut down, leaving 129,000 families without power, while bad weather is hampering repair efforts. In Hubei and Anhui alone, the provinces hardest hit by the snow, the energy shortage has affected 10 million people, and more than a million hectares of crops have been destroyed, at an estimated loss of 1.83 billion yuan. In Wuhan, the capital of Hubei located on the frozen Yangtze river, there have been intermittent blackouts all week, the worst since 1997. Coal fuels 78% of the country's power plants, and produced about 83% of the energy used in 2007.

According to experts, the current coal shortage is due above all to the imposition of price controls, as the sellers watch the price of coal rise rapidly in the world and wait for the government to permit higher prices in the next few months. In many of the provinces, like Yunnan, Guizhou, and Hubei, drought has aggravated the situation by reducing the production of hydroelectric power.

The previous crisis dates back to 2004, but this was a shortfall of "only" 40 gigawatts, due above all to the excessive use of air conditioners.

EDIT

http://www.asianews.it/index.php?l=en&art=11329&size=A
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predfan Donating Member (769 posts) Send PM | Profile | Ignore Wed Jan-23-08 01:51 PM
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1. it's awfully easy to outgrow your infrastructure
and China's getting close. All the more reason for us to, one, get less dependent on fossil fuels, and two, quit sending American dollars to China. We can't control what other countries do, only what we do.
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progressive_realist Donating Member (669 posts) Send PM | Profile | Ignore Wed Jan-23-08 02:34 PM
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2. One of the few things I've learned in econ classes
That always seems to hold true is that price controls make supply shortages worse.
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