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ECONOMY

Tue 16 Aug 2022 10:49 am - Jerusalem Time

Rationalization of energy consumption in Chinese factories due to the heat wave

Beijing - (AFP) - China 's Sichuan Province, a center for lithium production, has decided to ration electricity supplies to factories until Saturday, according to state media, at a time when a heat wave is increasing demand and depleting water in tanks.


Temperatures in the province of about 84 million people have exceeded 42 degrees Celsius since last week, according to data from the China Meteorological Administration, which has increased demand for the use of air conditioners.


The region relies on dams to generate 80 percent of its electricity needs, but its rivers dried up this summer, according to the Ministry of Water Resources in Beijing.


The province, located in southwest China, produces half of the lithium produced nationwide and used in electric cars and hydropower projects.


But the local government decided to prioritize energy resources for residents and ordered industrial users in 19 of the province's 21 cities to suspend production until Saturday, according to a notice issued Sunday.


Several companies, including aluminum producer Henan Zhongfu Industrial Co. and fertilizer producer Sichuan Meifeng Chemical Co., announced in statements on the stock exchange website that they would suspend production.


And the Central Taipei News Agency reported that a factory in the province belonging to the Taiwanese giant “Foxconn”, which provides supplies to “Apple”, had suspended production.


Some companies will be allowed to operate with limited capabilities based on their production needs.


"Sources estimate that at least 1,200 tons of lithium production will be cut due to operational disruption during these five days," Susan Zhou, an analyst at Rystad Energy, told AFP, noting that lithium carbonate prices have risen since Monday.


Several major Chinese cities recorded record temperatures this summer.


And the Chinese National Observatory again issued an alert for the highest (red) level of high temperatures on Monday, according to the official media, with temperatures rising to more than forty degrees in various parts of the country.


Provinces including Zhejiang, Jiangsu and Anhui, which rely on energy from western China, have restricted electricity to industrial consumers to ensure that households have enough supplies, according to local media reports.


Scientists report that extreme weather conditions around the world are becoming more frequent due to climate change, and are likely to become more severe as temperatures rise around the world.

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Rationalization of energy consumption in Chinese factories due to the heat wave

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