Discussion with the Guangzhou Municipal Industry and Information Technology Bureau and Guangzhou Power Supply Bureau on the Power Shortage in Guangzhou

2021-07-07 | South China

On 7 July, the Chair of the South China Board, Klaus Zenkel, and Vice Chair, Fabian Blake, met with representatives from the Guangzhou Municipal Industry and Information Technology Bureau and Guangzhou Power Supply Bureau to discuss the issue of force shutdowns of European Chamber manufacturing companies due to the recent power shortage in Guangdong Province. They explained the power situation in Guangdong was caused by three main factors: The energy shortage was a result of hot weather, the drought in Yunnan Province, and the rapid economic recovery following the pandemic. China's de-carbonisation efforts are also considered to be a factor they believe has contributed to the power shortage. Until more energy infrastructure is established to improve local self-sufficiency, power shortages should be expected to be a normal occurrence in the years to come.

To mitigate the power shortage problem, the government representatives cleared up ambiguity on three points. Power supply schedules are determined weekly on the provincial level. Local officials are contemplating ways to provide more advance notice to companies facing forced power shortages; However, the advance notice can only come from the top down. The second point was on the need to improve Guangzhou's energy self-sufficiency. Guangzhou's energy self-sufficiency is currently just above 30% and is forecasted to increase to 50% in five years. Lastly, greater emphasis will be placed on innovation since new technologies will improve the reliable access to power.

The meeting concluded with discussing how to better communicate upcoming power shortage announcements to the European Chamber and its members.