Power cut faced by Chinese factories
Written by JDPGlobal | Friday, 17 June 2005
Rationing power supplies for industrial use is to be started in Shanghai on Wednesday. This is to avoid electricity shortages this summer. Production is to be suspend by thousands of firms. Shopping malls have to set air-conditioning dials to above 26C (78.8F).
Similar problems are faced by China because the power supplies struggle to keep up with the booming economy. Severe power shortages and widespread blackouts are the result, according to the BBC’s Daniel Griffiths. Summers are bad, as extra electricity is needed to power millions of air-conditioning units in the face of soaring temperatures.
It is a common belief that the energy problem may cut as much as 2% off nationwide economic growth every year. According to a Shanghai Daily newspaper, Shanghai faces a demand of 19m kilowatts, which is 2m more than the power grid can handle. The city boasts that its generating capacity is 11.4m kWh, and is thinking of buying 6m from other provinces.
Government buildings, offices, hotels and entertainment venues would be governed by the minimum temperature for air-conditioners. Prices for electricity are set to rise in the near future.
