Sunday, August 12, 2007

07.05.28 Power shortages affect economic activity in S.China province

For the fifth summer in a row, south China's Guangdong Province is facing major electricity shortages, said an official with the provincial economic and trade commission.

A lack of power and a lack of migrant workers are holding back the economy in the Pearl River Delta region and some foreign investors have begun to divert funds to other places.

The power company in the provincial capital Guangzhou issued a red alert on electricity consumption in May. Some companies have decided to down tools in turns and some have stopped production between 8:30 in the morning and 11:00 at night.

Insufficient generating units, a shortage of water and gas and the closure of some small thermal power plants have all contributed to the power shortage in Guangdong, said the official.

China Southern Power Grid Corp (CSG) also hopes to purchase electricity from the State Power Grid Corp's Three Gorges project, but the official said the maximum amount Guangdong could receive would be only three million kw.

Source: Xinhua
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