Weather triggers energy shortages

Southern and eastern China are facing natural gas and coal shortages, as heavy snows continue to hit the country, and cut off transportation. The shortage has lead to price hikes, as local authorities take measures to deal with the power shortage.

Relentless snowfall in northern China has cut off the transportation links for coal supplies to the South. The backup coal stores at some thermal power plants in Zhejiang province can only provide enough for three to four days.

Jiang Yidong, Chief engineer of Zhejiang Hengyang Thermal Power Co., said, "Normally, we have enough coal to last for 10 days. We consume at least 1,000 tons of coal every day. So, we are quite worried about the current situation."

Besides the lack of a coal supply, the company is also facing the pressure of a coal price hike.

Jiang said, "The coal price in September was 570 yuan per ton. Now, it is 660 yuan per ton. The price is expected to rise further because of the heavy snow in the north, which has greatly effected our costs."

Despite the high prices, power plants are making every effort to purchase coal to maintain their production, as most of Eastern China is dependent on their output.

Meanwhile, the unusually cold weather has also triggered a natural gas shortage in Eastern and Central China. Wuhan city authorities cut off natural gas supplies to some businesses and gas stations to ensure a stable supply for surging residential consumption.