Chongqing Rations Power

Monday, July 21, 2008 9:51
Posted in category China's Other Cities

Reuters is reporting that Chongqing is now rationing power along with 12 other provinces in their article China’s Chongqing starts to ration power

Blaming the hot weather and coal shortage as the primary reasons for the shortage, I would like to at this time ask an important question.

What happened to the dam?  Chongqing is geographically the closest major city to the 3 gorges dam, and is one of the primary benefactors (as is Shanghai).

Where is the power from the dam, and if Chongqing is that close, what does that mean for the rest of the country (China uses hydro for about 20% of power needs)?

So, add this to the list folks.  We are still a couple weeks away from August (China’s hottest part of the year), the Big “O” is 3 weeks away, and the traditional rainy season in the interior is beginning to trail off.

I don’t see this as a situation that is going to improve, and were I a betting man I would say that once the Big “O” sucks a full year of water out of the ground, we are going to see economically important environmental shocks soon.

to learn more about China’s energy issues, feel free to check out my previous posts

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2 Responses to “Chongqing Rations Power”

  1. Rich says:

    July 21st, 2008 at 8:20 pm

    More on this.

    Shanghai Daily article Power shortage fear as coal stocks fall

    My silver lining on this = expect the price of coal to go up again (like we say in February), and that means it is a good bet for funds looking for a quick uptick in commodity investments.

    R

  2. charlie says:

    July 22nd, 2008 at 12:57 am

    Rich: It really is getting serious (as you have warned for some time now). I just have the sense the central planners have too many plates spinning right now: rising international energy prices, hot money inflows, inflaton concerns, slumping export-related employment, not mention the Olympics. A couple of them are bound to crash to the floor. Let’s just hope the whole act doesn’t come to stop.

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