China Market Research Reports
Payment Routing
¡¡
Subscriber Log in   User name  Password Sign up
                  
About us
Company Profile
Our Advantages
Market Information Database
China Coal Industry Data
China Pulp & Paper Industry Data
Market Research Reports
China Coal Market Reports
China Power Industry Research Reports
Research Report on Wind-Power Generation Industry
China Steel Industry Research Reports
Chinese Petroleum Industry Research Reports
Chinese Natural Gas Industry Research Reports
China Real Estate Market Reports
Chinese Boiler Industry Research Reports
Market Research Reports on China's Pulp & Paper Industry
China Automobile Industry Research Report
China Aluminum Industry Research Report
Chinese General Aviation Industry Reports
 
 
¡¡

China Power Industry Research Report 2002Q2

Power Consumption Analysis



I The social power consumption is 739.2 billion kwh in the first half of this year, increased by 8.9%, and the growth increased by 0.2%. Thereinto, power consumption in the first industry increases by 2.5%, the growth falling back by 1.7 percentage points. This is mainly because the serious drought in northern China last year results in large-scale growth in power use for irrigation and drainage, while rainfall is plenty this year, which causes negative growth in power use for irrigation and drainage. The power consumption in the second industry increases by 9.2%, the growth increased by I%; the power consumption in the third industry increases by 11.4, the growth increased by 3.3%; and household consumption increases by 7.0%, the growth falling by 1.4%. The contributory rate to social power consumption growth is respectively 1.1%, 74.2%, 14.4% and 10.3% for the first industry, the second industry, the third industry and household consumption.
Industrial power consumption, which accounts for 72.5% of total power consumption, increases by 9.2% as the main force in boosting rapid development in social power consumption. The fields like non-ferrous metals smelting, rubber and plastic products, medicine and textile all have a growth over 10% in power consumption and power consumption in chemicals industry grows most rapidly. At the same time, the third industries like transportation, post and telecommunications, and commerce also keep quite high growth rate of 13.3% and 14.9% respectively. But the household power consumption, especially rural household power consumption, which has been keeping rapid growth, has gone down to rather great extent.
Power consumption keeps rapid growth in East and West China, while that in central China falls to certain degree and negative growth appears in power consumption in Northeast China. West provinces like Inner Mongolia, Sichuan, Chongqing and Ningxia are among the 11 provinces with a growth rate over 10% in power demand, and the others are Hainan, Shandong, Fujian, Jiangxi, Guangdong, Zhejiang and Jiangsu.


3. Power Investment


In the first half of this year, Chinese power industry actualizes a fixed investment of 60.9 billion Yuan, increased by 1.1%. Thereinto investment on infrastructure construction is 40.8 billion Yuan, increased by 33.2% and the investment on transformation of urban and rural electric networks is 2.6 billion Yuan, decreased by 36.7% with the first-phase projects finished. The construction and transformation projects on urban and rural electric networks are sped up and the investment accounts for 93.4% of the total. The investment, final accounts and acceptance check of the first-phase transformation project on rural electric networks has been completed, and the second-phase project has been fully extended. By the end of June, 2,104,572 Yuan out of the planned 7,678,675-Yuan investment has been actualized for the second-phase transformation project of rural electric networks, accounting for 27% of the planned investment.


4. Analysis on Operation of Electric Networks


Quite Great Regional Differentials Exist in Inter-network Power Exchange
In the first half of year 2002, the general situation of power supply and demand in China is basically in balance, but there are big disparities in different areas. Power demand in Zhejiang and Beijing is far greater than the supply in those areas, while Shanxi, Guizhou and Sichuan all have power export in large quantity.
Within the South China network, Guangdong and Guangxi respectively receive from west networks a power quantity of 5.8 billion kwh and 2.6 billion kwh. Besides, Guangdong purchases a power of 1.2 billion kwh when transporting 3.8 billion kwh to Hong Kong and Macaw together. Ertan Power Station within Sichuan-Chongqing electric network transports 1.15 billion kwh to Chongqing and 3.65 billion kwh to Sichuan, while Sichuan transports 2.22 billion kwh to Chongqing. Within North China electric network, Beijing, Tianjin and Tangshan purchase 5.37 billion kwh from Shanxi and Inner Mongolia while sending 0.48 billion kwh to south Hebei. In Central China network, the power transported to He¡¯nan and Jiangxi is greatly reduced compared with that in the same period last year, but power send to Hu¡¯nan increases by large scale. In East China network, the net power receiving in Shanghai, Jiangsu and Zhejiang and the net power export from Anhui all increase by large scale. In Northwest China network, Shanxi and Gansu both have power export and the power export from Qinghai decreases greatly while power received in Ningxia increases to some extent.


Bottle-neck Exist in Structure of Local Electric Network


China has made considerable achievements in the transformation of urban and rural electric networks in the past three years, and the power transportation and distribution capability is obviously enhanced in many provincial electric networks. However, in local electric networks in coastal developed areas in Southeast China, there still exists limitation on power use due to unmatched capability of power conveyance and supply of the power networks. It is predicted that the limitation on power consumption in part areas like Zhejiang and Guangdong cannot be removed fundamentally within this year.
In the aspect of inter-network power exchange, optimized resources distribution is hard to be realized due to lack in reasonable price system on power import and export. He¡¯nan and Hubei in central China is in short of power while Jiangxi has extra power supply, but because of lack in reasonable price system on power import and export and the subsequent difficulty in setting down power price acceptable for both sides, it is hard to send out extra power and realize optimized resources distribution.


5. Estimate of Present Situations on Power Supply and Demand


In the first half of this year, the general situation on power supply and demand is still basically in balance in China. However, since the summer, especially since July, most areas in China suffer from unusual persistent high temperature. Beginning from July 8, high temperature over 35oC goes on in Sichuan for 7 days. On July 12, the highest temperature in Yuncheng district in Shanxi Province reaches 41oC. On July 14, Beijing and central southern He¡¯nan witness a temperature as high as 40oC to 43oC. So the power loan for sunstroke prevention grows sharply, and the power loan and daily power production in many electric networks all create historical new high. Limitation on power use appears in Beijing, Shandong, Jiangsu, Zhejiang, Hebei, Shanxi and Sichuan. Its characteristics are as the follows.


First, daily power consumption break the record. Persistent hot weather results in sharp growth in power consumption on sunstroke prevention¡£ In the first ten days of July£¬the national daily power production is 4.403 billion kwh£¬and increases to 4.6 billion kwh on July 10£¬to 4.7 billion kwh on July 11£¬to 4.908 billion kwh on July 12 and to 5.184 billion kwh on July 15£¬increased by 0.781billion kwh compared with the daily production in the first ten days of July and creating historical records for several successive days¡£
Second£¬ power load creates new high in succession¡£Most areas£¬including North China£¬ East China£¬ Central China£¬ Shanxi in the northwest and southern area£¬witness unusual persistent high temperature almost at the same time£¬which results in sharp growth in power loan in major cities. The peak load and daily production both create historical new high with a double-digit growth rate in the electric networks in North China, Central China, East China, Sichuan and Chongqiong and South China.
North China electric network. On July 12, the power load in evening rush hour creates another historical new high in Beijing-Tianjin-Tangshan electric network, reaching 18.33 million kw, This exceeds the peak value of last year by 15.8 million kw with a growth rate of 16%, and it is higher by 9.28 million kw than the predicted peak load of this year. During the three days from July 12 to July 15, the power load in Beijing rises from 7.27 million kw to8.26 million kw, and that in Tianjin and Qinhuangdao reaches 4.334 million kw and 0.641 million kw respectively, also setting new records. Because of the insufficient capability of distribution network, blockade situation appears, resulting in limitation in part periods in North China. The peak load and daily power production in Shandong network also create new record on July 15, reaching 0.34 billion kwh and 15.65 million kw in respect.
East China electric network. Ever since the middle of July, persistent high temperature over 37oC appears in East China and the power load rise sharply. The power load in East China network reaches the all-time 49.865 million kw on July 15, steeply increased by 6.9 million kw compared with that in year 2001 with an increase rate of 16.1%. The power production on that very day is 0.997 bilion kwh and the gap between crest and trough reach 16.67 million kw, increased by 4 million kw compared with that of last year with a growth rate of 31.6%. The minimal load rate is 66.6%. Because power load is overmuch higher than the original estimate, power demand cannot be well satisfied although the power stations in the networks work stably and fully and the import has reached the utmost. So short supply unusual in the past few years appears in the whole network. On July 15, in order to meet the fast growing power demand, Jiangsu electric network bought from Fujian network 0.1 million kw for 4 hours per day in three days at a high price of 0.6 Yuan per kwh.
Central China electric network. Since July 11, the four provinces in central China are enclosed by high temperature, the production and consumption load and power production and consumption all creating historical new high. On July 15, the consumption load in the whole network is 3.007 million kw and the total power consumption reach 0.64 billion kwh, both higher by over 10% than the maximum of last year. This is the first time that daily consumption load and daily power consumption exceed 30 million kw and 0.6 billion kwh respectively in the Central China electric network. In the evening rush hour, many major power stations generate power at full strength, and the generators in the four provinces almost all reach the utmost. 12 large units with installed capability of 0.2 million kw are at work in East Hubei electric network.
Sichuan-Chongqing electric network. The power production and purchase in Sichuan electric network reach 0.17 billion kwh on July 15, 30 million kwh higher than the utmost daily power production and purchase. Thereinto, the hydropower is 0.16 billion kwh. The peak load reaches 8.75 million kw, 1.4 million kw higher than that of last year with a growth rate of 19.6%, creating a historical new high. Due to plenty rainfall in rain-abundant season, hydropower plays a main role in Sichuan electric network. From 12th to 16th of July, high temperature appears in Chongqing and the load in Chongqing network grows sharply, renewing records continuously. To July 16, the peak load in Chongqing network has reached 3.69 million kw and the daily consumption reaches 7.031 million kwh. The capacity that can be exported from Chongqing network is only about 3.7 million kw, 2.52 million kw of which is the provincial capacity and the purchase from other provinces is 1.2million kw. The insufficient capability in production and distribution results in inevitable limitation on consumption in rush hours.
Guangdong electric network. Since April, high temperature and drought cause rapid rise in peak load in Guangdong electric network. On July 15, the peak load in Guangdong provincial network reaches 1.94 million kw, 2.1 million kw higher than that of last year. In order to relax the short supply situation, 22 cities including Dongguan, Shenzhen and Zhongshan have begun power consumption in non-rush-hours, which to some degree relaxes the short power supply at present. But inadequate power source and insufficient capability in power transportation and distribution network are the main reasons for the short supply in Guangdong.
Third, the power exchange grows largely. To meet the fastigium in the summer, the electric networks make optimized arrangement for operation modes, make preparations for accidents, and put priority to the examination and repair of generating units. Before summer, the third-phase project in Eastward transportation of west power in South China electric network, that is, the AC power transportation and transformation project from Tiansheng Bridge to Guangdong, is put to production on June 25, enabling the power transportation capability from South China network to Guangdong to reach 3.7 million kw. The linking line between Sichuan-Chongqing network and Central China network also began production in May with a power transportation capability of 0.6 million kw. At the same time, in order to fully display the advantages of large electric networks, the DC transportation from Gezhouba to East China, the linking line from Fujian to East China and the linking line from Sichuan-Chongqing to Central China have all reached full load in the fastigium in summer according to planned arrangement. In South China network, the west power transported to Guangdong operates at a stable limitation of 3.5 million kw; the full load in linking line from Northeast China network to North China is 0.6 million kw; the power transported from Inner Mongolia network to Beijing is increased from 0.93 million kw to 1.3 million kw; the linking line from Shanxi network to Beijing can transport power of 0.5 million kw in rush hours.
One of the reasons for the intense production load and power demand in the middle of July is the joint influence of fast growth in industrial consumption load in southeast costal areas, due to fine situation of national industrial production and fixed investment in the middle of July, and the fast growth in consumption load for sunstroke prevention caused by persistent high temperature in July. The second reason is the inadequate capability of power distribution network, circuit failures and serious blockade, which is also the cause for limitation on power usage in rush hours. Third, lack in effective measures to eliminate the gap between crest and trough is one of reasons for short power supply in rush hours. Another reason is failure in generating units intensifies the situation of short power supply in one or two regions.
Because before summer electric power departments of various levels comprehensively analyze the security situation of the electric networks and improve the veracity of load prediction; properly arrange the examination and repair of generator units and push the production of new equipments; strengthen the patrol and the maintenance of equipments in operation to secure the full function of the equipments in high temperature; carry out duty system and rush repair in flood prevention and therefore ensure the stable operation of major electric networks in national persistent high temperature. There are not accidents of large-scale power cut due to destroyed stableness of network and system disintegration, and the days with specially high power load are spent without any disturbances.
6. Impact of Power Price on Power Demand
Under market conditions, the impact of power price on power demand becomes increasingly more obvious. The main influences are on the power consumption of enterprises and the regional distribution of highly power- consuming products. In the 90¡¯s, the general power price for end users takes a rising looking, but ever since the new century, it is declining rapidly due to the performance of some measures like transformation of rural electric networks.
Ever since 1998, 500 kinds of improper charges have been abolished from power price through price adjustment and electric network transformation, enabling the power price in cities to decrease from 0.47 Yuan/kwh to 0.42 Yuan/kwh, decreased by 0.05 Yuan/kwh, and price in rural areas from 0.67 Yuan/kwh to 0.57 Yuan/kwh, decreased by 0.1 Yuan/kwh. The average power price is about 0.40 Yuan/kwh for urban residents in inner areas, 0.5 Yuan/kwh for rural resident while price in coastal areas is usually higher by 0.15-0.20 Yuan/kwh than that in inner areas.
In the first half of year 2002, another batch of provinces carry out power price reduction. Thereinto the urban power price in Guangdong is reduced from 0.75 Yuan/kwh to 0.49 Yuan/kwh, the rural price from 0.675 Yuan/kwh to 0.4 Yuan/kwh; the price in Shanghai is reduced from 0.67 Yuan/kwh to 0.61 Yuan/kwh; the price in He¡¯nan is reduced from 0.85 Yuan/kwh to 0.69 Yuan/kwh. (Details as the table)
Due to price reduction, the growth rate in power consumption in Guandong rises up again from 10.9% in year 2001 to 12.5% this year. The growth rate in power consumption in rural areas is faster, and it is 38.9% in country of Guangzhou, 15%-20% in the country of Tianjin compared with that in the same period of last year.
With the performance of separation of power stations from electric networks and price competition to get in the network, the improvement of operation efficiency in the power stations and the reduction in coal consumption for power generation from 385g/kwh last year to 381g/kwh now, the average network power price in power stations is declining. The reduction in line loss per unit from 7.40% last year to 7.24% now due to transformation of electric networks in the first half year will cause further reduction in power price.
Besides, the central and local governments carry out favourable power price to some large industries and highly power-consuming industries. For example, to highly power-consuming products and products like electrolytic aluminum and ferrosilicon, the state will remove the price differential on different voltage grades and improve proportion of basic price through structural adjustment to power price; try to lower and exempt some taxation items; reduce the price level for enterprises with a annual production capability over 40,000 tons; make discounts to the new growth in power consumption of industrial customers, the discount extent jointly determined by customers and power stations; enable the customers of ferroalloy enterprises to determine the price according to either their utmost demand or the transformer¡¯s capability. Another example is Hunan province rules that highly power-consuming enterprises will get a preferential price of 10% lower than current price in rain-abundant season (from April to July). The practice of these measures will further reduce the power price for end user and therefore further impel the rise in power consumption in China.



Return to Table of Contents
¡¡

 

Home | About Us | Company Press | Terms and Conditions | Site Map
Add:Room A803,A805, Golden Prosperity Center,TangJiaCun,Guangqu East Road, Chaoyang District, Beijing, 100022 P.R.China
Tel:+86-10-67716608 +86-10-67716528 Fax:+86-10-010-67716520 Email: hlcbeijing@yahoo.com.cn