søndag 14. november 2021

China and India face a deepening energy crunch

Two of Asia's largest economies are racing to contain a worsening energy crunch.China is trying to assuage concerns about skyrocketing prices as its major coal mining hubs grapple with heavy rains and deadly accidents, problems that are compounding efforts to address power shortages. Some leaders in India, meanwhile, are warning that key regions including the capital, New Delhi, could face a "power crisis" as the cost of electricity rises, even as the central government says the country has enough coal supplies to meet demand.

Energy demand is soaring worldwide as the global economy reopens. But supply isn't keeping up. In China, power shortages are the result of a combination of factors, from China's post-pandemic construction boom, to its national push to reduce carbon emissions that led hundreds of coal mines to shut down or slash production earlier this year.

Restrictions on coal from key supplier Australia and weather woes have exacerbated the issue — and the latter issue has been acute this week, as heavy rains slammed Shanxi and Shaanxi provinces, two key mining hubs that account for nearly half of the country's coal output.