Chinese power demand up 22.1 per cent on year in January-February

According to official statistics, Chinese power generation in the first two months of this year rose by an impressive 22.1 per cent. However, the scale of the increase may have been exaggerated thanks to a low base figure from 2009. The bulk of the increase also came from January, which recorded a 39.5 per cent on year surge, while power demand was only up 7.9 per cent in February.  In addition, the Lunar New Year Holidays took place in January 2009, but in February this year. In the first two months of this year, thermal power generation rose by 26.8 per cent, while output from hydropower stations declined by 7.2 per cent due to declines in reservoir levels. The situation has prompted South Power grid to warn of tight power supplies in April and May. Water stocks in the country’s major reservoirs at the start of March were at the lowest recorded, since October 2009, after having declined for the fourth successive month (Reuters).