China Seeks to Boost Power Grids as Sichuan Reservoirs Run Dry

  • Energy agency calls to expand capacity and cross-region grids
  • Sichuan is expected to see high temperatures through Wednesday
WATCH: Susan Zou, Senior Analyst at Rystad Energy, discusses the impact of Sichuan’s heatwave on battery materials.Source: Bloomberg
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China’s top energy officials are calling for the addition of more power-generation capacity and cross-province grids as a severe drought drains Sichuan’s main reservoirs, prompting outages and shutting down key factories.

The National Energy Administration acknowledged supply challenges caused by high temperatures and a lack of hydroelectricity generation in a statement reviewing its power system.