“Power curtailment” and “stop production” have become the focus of attention of all parties in the market recently. After the completion of the “dual control” target in the first half of the year was released, all localities have accelerated the pace to promote the “dual control” of energy consumption. .
Recently, not only industrial electricity but also private electricity has been shut down.Even after the power cut in Shenyang, the traffic light outage caused congestion, and the power consumption peak of the three provinces in the northeast of China was turned off.
Just now the central media also uttered: “What is going on in the peak production season to limit the power supply?” What happened?
Guangdong issued a power-saving proposal: Proposal to disable elevators on 3 floors and below in office spaces
On September 26, according to the client of the Guangzhou Daily, the Guangdong Provincial Energy Bureau and Guangdong Power Grid Co., Ltd. jointly issued the “Proposal for Orderly Electricity Use and Saving of Electricity in the Province” on September 26th. The proposal requires party and government agencies and institutions at all levels in Guangdong Province to set an example and take the lead in practicing green and energy-saving office. The refrigeration temperature of air-conditioning should not be lower than 26℃. The doors and windows should be kept closed during air-conditioning operation. State, the use of elevators on 3 floors and below in the office space; it is recommended that the province’s industrial and commercial enterprises actively participate in energy conservation and support the implementation of orderly electricity use. At the same time, citizens are encouraged to adopt a moderately economical, green and low-carbon family lifestyle, use natural light as much as possible for home lighting, use fewer lamps, and encourage air-conditioning to be set at a temperature not lower than 26°C.
Northeast electricity rationing rushes to the hot search
Recently, the three northeastern provinces have partially cut off electricity during peak hours. With high coal prices and a shortage of electricity and coal, there is a tight supply and demand situation in Northeast China. Since September 23, many places in Northeast China have issued power rationing notices. The notice stated that if the power shortage is not relieved, the power rationing work may continue. In addition, power supply is restricted in parts of Shenbei New District and Hunnan New District of Shenyang City, and some roads are congested due to lack of power from signal lights.
On September 26, according to China Fund News, a notice from the State Grid Shenyang Power Supply Company showed that recently, the supply and demand of Liaoning Power Grid has been affected by factors such as the decline in the net receiving capacity of the connection line and the high coal power prices leading to the decline in the output of power plants. The situation is tightening, and there is a short-term power supply gap.
In order to alleviate the pressure of the shortage of power supply and demand, ensure the safe and reliable power supply of the whole society, and minimize the impact of the shortage of power on the society and customers, according to the national “Ordered Power Management Measures”, approved by the Provincial Department of Industry and Information Technology, the Implement orderly electricity use in Liaoning.
There is still a power gap after the orderly use of electricity. According to the “Power Grid Dispatching Management Regulations”, it will be in accordance with the “Liaoning Province 2021 Power Grid Accident Sequence Table” (Liaoning Gongxin Electric Power[2021]No. 171) to implement accidental power cuts in 14 cities in Liaoning.
Power supply companies will make every effort to ensure the use of electricity for important users that involve public interests and national security, such as residents’ lives, hospitals, schools, radio, television, telecommunications, and transportation hubs.
Another document shows that recently, due to the shortage of electricity and coal supply across the country, the power generation output of units has been limited, which caused emergency power cuts in many cities and counties in our province on September 23 and 24, in order to ensure the safety and stability of electricity. In order to avoid large-scale power outages in our province’s power grid, the company requested that the Provincial Development and Reform Commission reported to the provincial government to agree to ensure the continuous and stable operation of the power grid.
Here, the electricity customers in the city are requested to fully understand and understand the necessity and urgency of orderly electricity consumption, and save electricity and peak-shift electricity. In particular, large-scale production and processing enterprises must strictly follow the orderly power utilization work plan to implement peak power consumption, as far as possible to ensure the power demand of important customers such as residents’ lives, so as to alleviate the tension of power supply and demand.
Since the power outage time is executed in accordance with the instructions of the Provincial Electric Power Dispatching Center, it is impossible to make advance judgments. Electric customers in the city are requested to prepare for power cuts in advance. During the period of orderly power supply, we apologize for the inconvenience caused to customers involved in power restrictions, and hope that the majority of power customers will understand and support!
Image source: China Fund News
On September 26, the Beijing News learned from the Shenyang Municipal Bureau of Industry and Information Technology that due to the huge power gap, power supply is restricted to ensure the safety of the power grid, and the follow-up will do its best to protect the people’s livelihood.
In addition, the customer service staff of the State Grid said that in fact, the Northeast region has first implemented orderly electricity consumption for non-residents, but there is still a power gap after the implementation. At present, the entire grid is in danger of collapsing. Measures. After the shortage of power supply and demand eases, priority will be given to the restoration of residential power consumption, but the current time is unknown.
Behind the multi-site curtailment: the dual-control regulation of energy gap is the main reason, which will force the reform of the energy structure
According to the China Times, with the current upgrade of energy consumption dual control policies in many places, 16 provinces have introduced power curtailment measures of varying intensity-less intense Sichuan, requiring “suspend non-essential production, lighting, and office Ningxia, with greater intensity, requires “high energy-consuming enterprises to stop production and limit production for one month.” Major chemical provinces such as Jiangsu, Guangdong, and Zhejiang have made heavy blows, taking measures such as “opening two and stopping five” and “limiting production by 90%” against thousands of enterprises.
In fact, power curtailment is not only a problem of energy shortage, but also affected by factors such as the national dual control policy and environmental protection. There are still 8 years to go before my country’s carbon peak target in 2030, but my country’s energy consumption control still needs to be improved. Data show that the energy consumption per 10,000 yuan of GDP in 2020 will only drop by 0.1% year-on-year, and the total energy consumption will rise by 2.2%.
In the first half of this year, the National Development and Reform Commission issued the “Barometer of Completion of Energy Consumption Dual Control Targets in Various Regions in the First Half of 2021”, among which 12 are Qinghai, Ningxia, Guangxi, Guangdong, Fujian, Yunnan, Shaanxi, Jiangsu, Zhejiang, Anhui, Sichuan, etc. The region has shown a severe situation in terms of energy consumption reduction and total energy consumption, which means that more than half of the provinces failed to complete the “dual control” goal in the first half of the year. “Energy consumption is not falling but rising. The main reason is that key energy-using companies use energy disorderly and illegally.” said Qi Yusong, deputy director of the Jiangsu Provincial Department of Industry and Information Technology.
With the approach of the year-end college entrance examination, if the “named” areas want to reverse the situation, they must take certain measures to improve the energy consumption problem as soon as possible. In this regard, “the curtailment policy is directly related to my country’s electricity demand, and it also illustrates the necessity of my country’s economic transformation.” said Lin Boqiang, dean of the China Energy Policy Research Institute at Xiamen University.
Different from the policy of staggered power consumption during the peak period of summer power consumption in previous years, the current power restriction, “dual energy consumption control” has become a factor repeatedly mentioned in the adoption of power restriction measures in various places.
“In the first half of this year, our economy has recovered well, but energy consumption in various regions has grown rapidly and increased, especially in the eight high-energy-consuming industries. The growth rate of electricity consumption has reached more than 20%. This has brought very severe challenges to the province’s energy and resource security and the dual control of energy consumption. In order to curb the excessive growth of energy consumption in high-energy-consuming industries, some local governments have organized and carried out energy use by high-energy-consuming enterprises according to the progress of dual control of energy consumption. Measures such as budget management, orderly use of electricity, and off-peak production are measures to correct the original neglect of energy conservation and emission reduction.” said the person in charge of Zhejiang Provincial Energy Bureau.
Time is tight and the task is heavy. In the face of the assessment of the dual control of energy consumption, many policy documents for the dual control of energy consumption shall be issued underground, and it is necessary to “adhere to the combination of government regulation and market orientation, and give full play to the decisive role of the market in the allocation of resources.” Pollution and high energy consumption enterprises implement restrictions. On September 16, the National Development and Reform Commission issued the “Plan for Improving the Dual Control System of Energy Consumption Intensity and Total Volume” and also proposed that it is necessary to adhere to the combination of incentives and constraints, to strictly control the assessment of energy consumption, and to strengthen incentives for areas with significant work results and to improve targets. Serious accountability of regions that are not fully completed will form an effective incentive and restraint mechanism.
From the perspective of industry insiders, the goal of “dual energy consumption control” is to promote clean, low-carbon, safe and efficient use of energy, and force the adjustment and upgrading of the industrial structure and energy structure. At present, “dual energy consumption control” will become an important driving force for China’s low-carbon development. Therefore, Pan Helin, executive dean of the Digital Economy Research Institute of Zhongnan University of Economics and Law, suggested that the new energy power sector should be benefited, especially the integrated photovoltaic + energy storage model as an energy supplement, using peak and valley power for power distribution. At the same time, Industrial enterprises will use photovoltaics to achieve self-sufficiency in part of their energy consumption. On the other hand, high-energy-consuming enterprises are facing the pressure of transformation and need to reduce energy consumption through energy management and energy source structure optimization.
Many listed companies are affected
Since the evening of September 22, more than 10 A-share listed companies have issued announcements stating that due to the shortage of power supply, in response to the local “dual control of energy consumption” requirements, the production lines of the listed companies themselves or their subsidiaries have temporarily suspended production.
On September 22, West Gate stated that Zhejiang Province has recently implemented power reduction in key energy-using enterprises within its jurisdiction and suspended production of key energy-using enterprises. Production is expected to be suspended until September 30. The company is currently forced to suspend production, which is expected to affect The output of sunshade fabrics is approximately 115,400 square meters per day. The specific impact on benefits cannot be accurately predicted for the time being. *ST Chengxing, Tianyuan, Shenhuo, and Yunlu successively issued announcements on the impact of power rationing.
According to *ST Chengxing’s announcement on September 23, the company was affected by Yunnan Yellow Phosphorus production control. Due to lack of electricity to meet production use, the company’s Jiangyin, Xuanwei, Maitreya, and Qinzhou plants were released on September 23 this year. Production will be suspended starting today. The Jiangyin plant is expected to resume production around October 12 this year, and the Qinzhou plant is expected to resume production around September 30 this year. The plant is currently unable to estimate when it will resume production.
According to the announcement of Tianyuan shares on September 23, the company’s calcium carbide base in Yunnan, Shuifu Jinming Chemical Co., Ltd., has phased out production; Daguan Tianda Chemical Co., Ltd. and Yunnan Tianli Coal Chemical Co., Ltd. are arranged according to one production line. Production. The company expects that if the policy continues to be implemented, the company’s calcium carbide production will be reduced by approximately 25,000 tons per month.
According to a recent announcement by Shenhuo, the company has received power and production restrictions since the first half of the year. The announcement pointed out that since May 10 this year, due to the shortage of power supply, Yunnan Power Grid has implemented orderly power supply to electrolytic aluminum enterprises in the province. As a result, the company’s holding subsidiary, Yunnan Shenhuo Aluminum Co., Ltd., has significantly reduced its total power supply and consumption load, and was forced to suspend operations of 200,000 tons, and its in-production capacity dropped to 550,000 tons. The second series and the third stage 150,000 tons failed to start as scheduled. .
From the perspective of specific industries, the industries that are greatly affected by the “double restriction” policy include but are not limited to the four major industries of steel, electrolytic aluminum, cement, and chemical fiber. The main characteristics of these industries are high power consumption + high carbon emissions. Measures include direct suspension of production, reduction of production capacity (ranging from 20% to 90%), staggered production, time-based power restriction, and reduction of electricity concessions.
Yingfeng Co., Ltd. (605055, SH), which is mainly engaged in textile printing and dyeing processing business, also announced that the thermal power enterprises in Ma’an Street, Keqiao District, intend to gradually reduce the heating load, and suspend production in accordance with the tiers of heating enterprises. According to relevant requirements, Yingfeng shares temporarily suspended production from September 22 to September 30. During the shutdown period, the company will do a good job in equipment overhaul and maintenance, staff arrangements and other related work, and at the same time make preparations for the resumption of production at any time, such as raw materials and personnel. “The production capacity during this temporary shutdown accounts for about 3% of the company’s total annual production capacity, and will not have a significant impact on the company’s total annual output and normal production and operation activities.” A relevant person of Yingfeng shares told reporters: “The verbal notification we received said that production is expected to resume on September 30, and there is no document. When the production will resume, the announcement shall prevail.”
Nanjing Chemical Fiber stated that due to the tight power supply in Jiangsu Province, the company’s wholly-owned subsidiary Jiangsu Jinling Cellulose Fiber Co., Ltd. temporarily suspended production on September 22 and is expected to resume production in early October. During the temporary suspension of production, the subsidiary will overhaul and maintain the equipment of the viscose staple fiber production line, and carry out technological transformation and upgrading of some equipment. Driven by the sharp increase in the price of chemical raw materials, the production cost of the subsidiary’s viscose staple fiber products has increased more than The company expects that the temporary suspension of production due to the impact of power supply will not have a significant adverse impact on operating results.
The leading domestic reactive dyestuff Golden Pheasant Co., Ltd. stated that after the management committee of the Taixing Economic Development Zone in Jiangsu Province received the “dual control of energy consumption” requirements from higher-level government departments, the management discussed and decided to deal with the two wholly-owned subsidiaries in it since September Temporary restrictions on production will be implemented on the 22nd. Golden Pheasant shares said that as of the end of August, the company’s inventory of goods was 87.617 million yuan. The company estimates that the full resumption of production will be after the National Day holiday. During the temporary production restriction period, the company expects that the inventory of goods can basically meet market demand and will not The fulfillment of hand orders has a major impact.
Jujie Microfiber announced on September 23 that a wholly-owned subsidiary has recently received a notice from relevant government departments that Jiangsu Province will take control measures on the total energy consumption and intensity of textile enterprises within its jurisdiction. Affected by this policy, the subsidiary temporarily suspended production from September 23 to September 30. The subsidiary has a relatively safe product inventory, and the temporary suspension of production will not have a significant impact on the company’s production and operation activities.
Chenhua, a fine chemical company, also said that recently, affected by the tight power supply in Jiangsu, a wholly-owned subsidiary of its subsidiary temporarily suspended all production lines in order to actively respond to the requirements of relevant government departments to curtail power and production. Chenhua said that it will actively coordinate and adjust relevant operating arrangements to minimize the adverse effects caused by power curtailment, and will continue to maintain good communication with the local government on power supply security and other related issues.
According to the preliminary statistics of the reporter of “Daily Economic News”, as of the time of press, more than 10 listed companies in the A-share market have announced the suspension and restriction of production due to the “dual control of energy consumption”.
Daily Economic News Comprehensive China Fund News, Beijing News, China Times, Guangzhou Daily, Everyjing.com
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