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2023-07-04 | All chapters

European Chamber Advocates for Sustainable Strategies to Solve Power Supply Issues

The power cuts that were imposed in 2022 heavily impacted the day-to-day operations of a significant number of European Chamber members. In Chengdu, for instance, some members were ordered to reduce their power consumption to 30 per cent of their average daily use and instructed not to use air conditioning. A number of companies resorted to renting power generators as early as mid-July to ensure a stable supply. While this solution came with significant additional costs, and the pollution it caused  was not in line with China’s carbon neutrality goal, it was preferred to halting production for more than a month.

Based on feedback from the Chamber’s Energy Working Group, many member companies have already taken steps to optimise their energy efficiency to cope with potential load reductions in 2023, as heat waves sweep through China. For instance, some have installed energy storage solutions at their plants to mitigate disruptions from both potential curbs on energy use and blackouts.

With extreme weather conditions becoming more frequent as a result of climate change, it is crucial that Chinese authorities now prioritise working with Chinese and foreign companies to develop and implement sustainable strategies that can provide both predictability and continuity of operations. The European Chamber has been advocating for this since the issue first emerged in May 2021, and will continue to do so.

If you would like to provide any feedback on this matter, please contact the Energy Working Group. Download the Energy Working Group Position Paper 2022/2023 here.