• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 1 day Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 hours "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 1 day ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 2 hours Wind droughts
  • 7 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 14 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days Xi Is Set To Be Re-Elected As China’s Leader
  • 11 days Oil Prices Fall After Fed Raises Rates
  • 1 day 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 1 day Australian power prices go insane
  • 12 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 1 day Europeans and Americans are beginning to see the results of depending on renewables.

Hydropower In China Struggles Amid Worst Heatwave In Decades

The southwestern Chinese province of Sichuan is baking in the worst heatwave in six decades, with hydropower generation from the Yangtze River falling and factories closing to ease the pressure on the grids. 

The heatwave is reducing water levels on the Yangtze River to the lowest on record for this time of the year, threatening crops and power supply in the Sichuan province, which relies on hydropower generation for a large portion of its electricity supply. Sichuan also typically sells hydropower-generated electricity to other provinces. 

But this year, the worst drought and heatwave in decades has depleted water levels, threatening power supply in the region. China joins Europe in experiencing issues with power supply amid heatwaves. European hydropower reservoirs in Norway are at low water levels, while hot rivers curtail nuclear power generation at French nuclear power plants, which usually account for 70% of France’s electricity mix.

In Sichuan in China, the drought and heatwaves are so extreme that the province has ordered all factories to close for six days in order to help ease the pressure on the power supply, CNN Business reports.

Japan’s automobile manufacturer Toyota Motor Corporation has halted operations at its Sichuan plant in Chengdu until Saturday after the local authorities ordered factories closed for several days, a company spokesperson told Reuters. Other factories, including those producing fertilizers and processing lithium, have also been affected. 

Not only is China’s Sichuan province a major hydropower producer, but it also hosts many factories that produce polysilicon and process lithium—two key components of the solar and battery industries, respectively. The power shortages and factory halts will tighten the market for these materials and drive prices higher, analysts say. 

According to Morgan Stanley analysts cited by Bloomberg, Sichuan hosts almost 15 percent of all Chinese production of polysilicon—the key material in the solar photovoltaic (PV) supply chain. 

By Michael Kern for Oilprice.com 

More Top Reads From Oilprice.com:

Join the discussion | Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News