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PRD Power Crisis
24 July 2004 | Link | John Herbert
Background
The Pearl River Delta (PRD), the world's factory creates more than 30% of
China's manufacturing output, and contributes 8.7% of China's total GDP. The
region has suffered from power shortages of increasing severity.
Last year (2003), an estimated 10 million kw shortfall was predicted,
during the summer months factories across China were closed yet again for
periods of up to eighteen days per month, causing disruption, missed
contracts and lost profits.
This year (2004) official predictions estimate a 30 million kw shortfall,
to help meet the load power has been imported to the PRD from the distant
west and the Three Gorges dam to keep the PRD lights on, and yet widespread
power shortages been recorded in 24 out of 31 providences to date.
These problems stem from the 1998 generation moratorium, and time will be
needed to recover.
Emergency conservation measures were introduced again this summer, to help
reduce consumption. Manufacturers are operating staggered shifts, working
over-night, or taking extended holiday's periods, all last minute attempts
to reduce consumption. One area that has been immune to shortages is the
Shekou peninsular, since it is always served directly from CLP in Hong Kong.
Another example, amongst others, Corning (Shanghai) will halt production for an
extended
holiday for three weeks in
August 2004. Officials have indicated that normal service will resume in 2006,
however independent observers believe 2012 is more realistic target.
To allow production to continue, some owners are operating private diesel
generating sets. This has increased demand for No. 0 diesel fuel, which has
increased operating costs by upto 30% and dramatically increased pollution.
Indications are that authorities are considered restricting these adhoc
generator sets to avert further environmental damage. China's appetite for
fuel is driving prices higher, further damaging profits.
Solutions
Kelcroft has the means and skills to assemble a complete relief package,
whether for a single factory or an entire industrial park.
Combined Heat and Power (CHP) also known as Cogeneration is just one good option, CHP
provides owners with relief, whilst optimising the usage of fuel.
CHP systems generate electricity, recovering waste energy to drive
air-conditioning or process needs. Hospitals, hotels and industry often
leverage the advantages of CHP to reduce owning and operating costs.
Don't be left in the dark waiting for solutions.
Update
23 September 2004
It is reported in the Hong Kong media that CLP is contemplating a new power
cable for Shekou Industrial Zone.CLP is already supplying electricity to
the entire Shekou peninsula.
The long hot summer coming to an end may bring relief to some, not in
the YRD. Further power shortages will continue into fall and winter months.
25 May 2005 PRD power Crisis II continues
Author
Mr John Herbert is the Managing
Director at Kelcroft. Educated and trained in the United Kingdom, he has
managed and engineered solutions for more than twenty years, across three continents,
in several countries, whilst retaining a litigation free record.