Hong Kong (Platts)--29Feb2008

China's southern economic powerhouse Guangdong province is gearing up for
an expected power supply crunch this year with a series of measures, including
the possibility of suspending electricity supplies to high-consumption
industries, the official China Daily reported Friday.
The industries which may be affected include steel, cement, zinc
smelting, caustic soda and ceramics, the newspaper cited Li Xiangming,
Guangdong's deputy director of the economic and trade commission, as saying.
Li told a press conference that power supply to these sectors will be
suspended if the electricity load gap exceeds 8 million kWh.
He noted further that the province has introduced a three-tier
contingency plan to prepare for power shortages.
The highest level, which involves switching off all neon lights and
lights for advertisements and at tourist attractions, will come into play if
the electricity load gap widens to more than 15 million kWh.
"Supply to secondary and tertiary industries, such as manufacturing and
construction, will also be reduced," Li said.
All government departments and related companies will also have to reduce
their electricity consumption, he added.
Priority will be given to residential areas and public utilities and
services, such as hospitals, schools, airports, railways stations, radio and
TV stations, harbors and financial organizations, the deputy director said.
Guangdong is expected to face its most serious power crisis since the
late 1970s, the newspaper reported.
Li said he expected the province's electricity load gap to reach between
11 million and 12 million kWh during peak consumption periods this year.
Meanwhile, the heavy snowfall which devastated the southern and
central regions since January has worsened the province's power crisis. Severe
weather damaged electricity substations and transmission lines which carry
power from Hunan and Guizhou provinces to Guangdong.
In the first six months alone, Hunan and Guizhou provinces and power
stations in the Three Gorge areas are expected to cut electricity supplies to
Guangdong by more than 6.3 million kWh, due to damaged transmission
facilities, Li said.
Li said that the electricity supply from southwestern China to Guangdong
will not resume in the first half of this year.
The Guangdong government has earlier issued directives of temporary
incentive schemes which aimed at boosting power generation by natural gas and
fuel oil in the province.