Record cold weather in China sends power demand through the roof

  • Date: 08/01/21
  • Reuters

BEIJING (Reuters) – Exceptionally cold weather sweeping through China has caused a huge increase in power demand in the world’s largest energy consumer and hampered transportation.

Reuters Graphic

Frigid weather across north Asia has caught utilities and liquefied natural gas importers off guard as demand for power lowered inventories and pushed spot prices to record levels.

China’s Central Meteorological Station released the first cold warning in 2021 earlier in the week to several regions. Cities such as the eastern port city of Qingdao recorded the lowest temperature in history and the capital city Beijing had coldest day since the 1960s on Jan 7.

At least nine provincial grid systems in northern China saw peak power load hitting historic highs this week, according to China’s State Grid.

China’s industrial belt, where a stunning manufacturing recovery from the coronavirus pandemic boosted energy demand, experienced a temporary power crunch in the last cold snap in December.

Reuters Graphic

“The (latest) historic peak load came as extreme cold weather increased demand for electricity-powered heating facilities, which account for 48.2% of total load,” an official from the State Grid told state television on Thursday.

China has been replacing coal burning with gas- or electricity-fueled heating devices as part of a campaign to combat air pollution in its smog-prone northern regions.

The only remaining coal-fired power plant in Beijing, managed by state-backed China Huaneng Group as a backup power source, resumed operations two weeks ago in order to meet the surging electricity demand.

Gas demand also surged in northern parts of China, where gas is now a dominant heating fuel for more than 20 million homes, with prices touching multi-year highs last month even as the country imported record levels of LNG cargoes.

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