Chemical Plants Shut Down Production due to Electricity Consumption

Recently, due to the sudden drop in temperature in southern China, the demand for electricity has increased greatly as well as the shortage of coal supply and other reasons leading to the tight supply of electricity, so much so that many areas such as Zhejiang Province, Jiangxi Province, Hunan Province and other areas out of the peak power restriction news, industrial electricity has recently been restricted.

According to Tencent Finance, many factories in Zhejiang Province said they received an emergency notice requiring processing plants to stop production from December 15 until December 31.

The power restriction in Zhejiang Province is also affected by the green energy policy, which requires controlling energy consumption intensity and total consumption.

Hunan Electric Power Company notified on December 11 that daily between 10:00 and 12:00, 17:00 and 20:00 is the peak hours of electricity consumption, but also staggered peak hours of electricity consumption, it is recommended that large power-using enterprises staggered production, avoid peak to let electricity, while pressure limit large buildings and landscape, lighting electricity, priority to protect the residents of domestic electricity. Hunan Changsha, Zhuzhou, Yueyang, Hengyang, Yiyang, Chenzhou and other prefecture-level cities have subsequently launched related peak electricity measures.

In fact, the current situation of power restrictions, and not only Changsha, Hunan, because in Zhejiang, Hunan, Inner Mongolia, Jiangxi and many other places have also issued a notice, the notice for the recent pressure on the power sector and power shortages and other issues have taken relevant measures.

And Hunan as because of the lagging power generation capacity, and face the risk of power restrictions in Jiangxi and Shaanxi Province. Affected by the cold wave, the Jiangxi power grid coordinates the electricity load and dispatches the generation and receiving power to a record high. The Jiangxi Provincial Development and Reform Commission decided to implement interruptible loads and start orderly power consumption in the morning and evening peak periods daily from December 15. Ulanqab, Inner Mongolia also faced power shortages.

Industrial Demand Surge Leads to Increased Electricity Demand

In the fourth quarter of this year, the industrial electricity peak, power security is facing huge pressure.

Zhejiang Province, for example, a number of countries and regions around the world by the COVID-19 epidemic companies are generally shut down, but the time is close to Christmas and New Year's Day, a large number of chemical fiber, textile, printing and dyeing and other energy-intensive goods manufacturing orders into China, and China's production capacity and mainly concentrated in Zhejiang, Guangdong and other places, resulting in a rapid increase in the power load of these areas.

These additional electricity demands put additional pressure on electricity supply.

Factory shutdowns caused by electricity restrictions may lead to supply and demand imbalances

Production shutdowns or production restrictions caused by power problems in many parts of China may lead to a reduction in the supply of industrial products and chemical raw materials, which in turn may lead to an imbalance between supply and demand in the market.

There may be price increases for some chemical products and raw materials, and ECHEMI will continue to follow new developments.