Owners of factories in China are turning to diesel manufacturers to keep their businesses afloat in a time of crisis that threatens the country’s economy and its green ambitions.
Power outage they have been doing business and so on and some houses have lost electricity. In an effort to distribute fuel, some states have ordered factories to close several days each week, while workers are told to use the stairs and offices to be forced to refrain from using air-conditioners in hot weather.
As winter approaches, China also advises coal miners to increase production more and more I suggest that it would allow electricity producers who were disabled due to the rising cost of coal to raise electricity prices.
The manager of Weifang Yuxing Power in Shandong province, who gave him the nickname Pan, told the Financial Times that the company sold generators as soon as possible in September for crunch.
“We had a lot of legislation from the southern regions such as Jiangsu and Guangdong,” Pan said, adding that the cost of electricity sectors has also gone up. “I have to tell my customers that it can take 15 to 20 days to bring the generator, and we will also wait for the big things to arrive.”
President Xi Jinping has promised that China will reach a peak of carbon emissions by 2030 and achieve zero emissions by 2060. But this promise is threatened by the idea of boosting coal as diesel generators emit soot, carbon monoxide and carbon dioxide.
Commercial banks have been downgrading China’s growth prospects due to shortages. Late last month, Goldman Sachs reduced China’s growth in 2021 to 7.8% from 8.2%, citing “serious problems” of power shortages.
Chinese generator companies will receive a huge increase in demand. Shandong Huali Electromechanical said it “received many inquiries from new and old customers, many of whom were interested in electronics because of the power of electronics”.
In a statement on the NetEase newsletter, Shandong Huali advised businesses against installing solar panels. “The installation of solar panels takes a long time and will not immediately solve the problems that exist,” the company said.
Researchers say the introduction of renewable energy sources in China has not reached the level of coal instead. This year’s hurricane season also disrupted other infrastructure, such as southern China.
Danny Lau, who operates a dumping plant in Dongguan, said there had been a sudden increase in demand for generator rental in an industrial city in the Pearl River Delta, a manufacturing facility.
“Wanting is important,” he told The Financial Times. While relying on three back-up generators to run its business, a nearby factory now paid Rmb180,000 ($ 27,900) a month to rent any equipment, up from Rmb60,000 in June.
Klaus Zenkel, chair of the EU Chamber of Commerce in South China, said some of its members in Hong Kong’s western industrial areas rely on generators to operate. One member of a room that normally uses 1,600 kWh of power per day was forced to reduce their daily consumption to 640 kWh.
“They have to support themselves but diesel is not good for the environment and it will add air,” Zenkel said.
Additional reports of Emma Zhou in Beijing and Xueqiao Wang in Shanghai