Power crunch may bite China’s near-term growth
SINGAPORE -- Recent power outages and production suspensions in some parts of China are mainly due to the country's decarbonisation goal and a supply-demand gap in power generation, according to ANZ Bank analysts.
"With policymakers' adopting a firm stance on curbing carbon emissions, and the upcoming electricity consumption peak, power outages and production suspension are likely continue in the near term," the analysts said.
"According to our estimates, a power cut of 10% nationwide can trim 1.3% from overall GDP growth. As the magnitude of the power shortage remains uncertain, we will monitor China's Q4 growth outlook."