As winter enters earlier this year than in previous years, and due to the reduction of coal burning, the drop in reservoir water levels, the inability of wind power to generate electricity effectively due to freezing, and the reduction of external power, the power supply in many areas is relatively severe. “Power cuts” and “shift production”, the power restriction order struck again.

Spread to the cities

  • Zhejiang Province: Before December 31st, all processing plants in many places will stop production
    Recently, many factories in Zhejiang responded and received urgent notices requesting that all processing factories stop production until Dec 31,2020. Government agencies have also received notices that air-conditioning should not be turned on if the temperature is above 3℃. The power curtailment in Zhejiang Province is mainly affected by the advent of industrial power peaks and increased pressure on power supply guarantees. (PS,Many factories producing orders for Christmas and New Year products are high-energy-consuming industries such as chemical fiber, chemicals, printing and dyeing, and textiles)
  • Henan Province: shortage of electricity, and manufacturers stop production. The coal shortage exacerbated the power shortage in winter.
  • Changsha, Hunan: Restricting industrial power consumption and enterprises staggered production
    Starting from Dec. 8th, the province started power-cutting measures. More than 7,000 large industrial and general industrial and commercial enterprises in the city are required to produce electricity at peak shifts, avoid peaks, and limit industrial electricity consumption such as high energy consumption and high emissions.
  • Jiangxi: Starting from December 15, interruptible load will be implemented in the morning and evening peak period
  • Chongqing: On December 15, coal mines ceased production for rectification, increasing power supply shortage
  • Inner Mongolia: Power shortage, orderly power adjustment


If the temperature drops further and the electricity load gap will further expand, there may be more industrial power outages in more areas that will cause factories to stop production. However, production companies in many places stop production for various reasons, which may reduce the supply of industrial products and chemical raw materials, which in turn will trigger a new round of supply and demand imbalance, leading to a wave of price increases before the holiday.