[Correspondent Diary] Power Restrictions in Beijing, the Capital of China

Indoor Temperature in Public Institutions During Winter Should Be Below 20°C... Elevator Usage Also Regulated
Calls to Move Away from High-Energy, Low-Value Economic Structure

[Asia Economy Beijing=Special Correspondent Jo Young-shin] The Chinese capital Beijing has also implemented power usage restrictions.

Nighttime landscape lighting hours will be shortened, and high power-consuming laser shows will be suspended. Additionally, the use of high-power electrical equipment in consumption-related industries such as shopping malls, hotels, and entertainment will be restricted. Elevator usage will also be partially reduced.

[Image source=Yonhap News]

Above all, indoor temperatures in public buildings during the winter season will be managed to stay below 20 degrees Celsius. China is expected to experience the coldest winter in the past 30 years. Although the Beijing energy management authorities' measures are guidelines, it is highly likely that these guidelines will be strictly enforced.

China obtains about 70% of its electricity from thermal power generation. As of August, the power output from thermal power plants of a certain scale or larger in China this year reached approximately 3.87 trillion kWh, accounting for 70% of the total power generation. This shows that China’s power structure is heavily dependent on coal. China is investing in renewable energy sectors such as wind, hydro, and solar power to change its coal-heavy power production method, but so far, these efforts have been insufficient.

The recommended coal stockpile for major thermal power plants in China is 20 days. Although coal stock levels vary by province, the most urgent situation is in Hunan Province, where current stock is reported to be less than 5 days. The eight provinces along the eastern coast reportedly have stockpiles of around 9 days. In Liaoning Province in northeastern China, the power peak last winter exceeded the previous peak by 15%, indicating a yellow alert status.

Regarding the coal shortage, Chinese media emphasize that it is not a result of import restrictions such as the ban on Australian coal. As of last year, China’s coal imports accounted for about 10% of its total coal consumption, with 30% of that being Australian coal. Due to this year’s ban on Australian coal, imports of Australian coal have dropped to zero. Instead, imports of Indonesian coal have increased by nearly 60% compared to the previous year. Indonesia is China’s largest coal supplier.

There is some validity to the claims made by Chinese media. The Chinese economic media outlet Caixin projected that coal demand in China from September this year to February next year will reach 1.848 billion tons. It also estimated that China’s coal shortage this winter will amount to 222 million tons compared to 2015. Last year, Australian coal imports were estimated at about 43 million tons. Some in Beijing are even speculating that the Chinese leadership might have other hidden agendas.

Caixin reported that at the end of last year, the Chinese leadership presented a timetable for "carbon peak by 2030 and carbon neutrality by 2060." It explained that this timetable signals a change in China’s economic growth model.

Zhou Dadi, former director of the Energy Research Institute at the National Development and Reform Commission, said, "China has grown its economy through the expansion of high energy-consuming industries," adding that the carbon neutrality goal means moving away from China’s existing low value-added development model. This can be interpreted as the Chinese leadership acknowledging that achieving the carbon neutrality target will require enduring some degree of hardship.