China’s Power-Capacity Utilization at Record Low, Mirae Says
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China’s power plants are operating at a record-low utilization rate as many have closed, potentially causing the most severe electricity shortage since 2004, Mirae Assets Securities said.
“Burdened by bulging losses, many power generators have shut,” Gordon Kwan, the Hong Kong-based head of energy research at Mirae, said in an e-mailed note today. “High coal prices and the capped electricity price have also reinforced fears” that power rationing may spread to manufacturing hubs including Guangdong, Zhejiang and Jiangsu, Kwan said.