State Grid to supply 970 mln kWh of power to central China

Tag : power generators
State Grid Corp, one of China's two majorpower distributors, said it will supply 970 mln kWh of electricityto help ease power shortages in central China.

The region has been suffering from insufficient coal stocks, lowwater levels and high temperatures.
The company signed electricity supply contracts with powercompanies in Hunan, Hubei and Jiangxi provinces, among others, toprovide additional power during the period of shortages.

Central China Grid has shut down power generators with totalcapacity of 5.36 mln kilowatts as of mid July due to coal shortagesas a result of rising prices and transport disruptions caused bythe May earthquake in Sichuan.
In addition, water levels in the main reservoirs in Hunan and Hubeiare at their lowest in years, causing sharp declines in hydropowerproduction, it said.

Power demand in Central China was 75.04 mln kilowatts in earlyJune, up 13.94 pct year-on-year.
Hunan, Henan and Chongqing, among others, have already startedelectricity rationing.
State Grid has urged power plants in central provinces to increasecoal stockpiles, which have not been replenished to adequate levelsbecause the fuel has become more expensive.

Last month the government announced a surprise 4.7 pct hike inpower prices, a level which is not sufficient to completely offsetoperating losses at power plants.