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  • Resolving China's Electricity Crisis

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    Divya Kanoudia
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    China has seen an increase in electricity consumption due to rapid demand growth and climatic influences. This has put pressure on the coal industry, which is a major source of electricity generation. To address this, China has implemented demand countermeasures like peak shifting and cutting, as well as supply countermeasures such as reducing coal exports, improving domestic coal supply, and accelerating the development of new power generation sources.

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    China has seen an increase in electricity consumption due to rapid demand growth and climatic influences. This has put pressure on the coal industry, which is a major source of electricity generation. To address this, China has implemented demand countermeasures like peak shifting and cutting, as well as supply countermeasures such as reducing coal exports, improving domestic coal supply, and accelerating the development of new power generation sources.

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    Attribution Non-Commercial (BY-NC)
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    196 views9 pages

    Resolving China's Electricity Crisis

    Uploaded by

    Divya Kanoudia
    China has seen an increase in electricity consumption due to rapid demand growth and climatic influences. This has put pressure on the coal industry, which is a major source of electricity generation. To address this, China has implemented demand countermeasures like peak shifting and cutting, as well as supply countermeasures such as reducing coal exports, improving domestic coal supply, and accelerating the development of new power generation sources.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
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    Download as pptx, pdf, or txt
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    Increase in Chinas electricity consumption.  Climatic Influences.  Issues based on coal industry.  Rapid demand growth.

    Demand Countermeasures: ` Peak Shift. ` Peak Cut.

    Supply Countermeasures: ` Measures to increase availability of coal: 1. Exports Reduction. 2. Improving Internal Supply. ` Moving up of power generation development.

    1. Explain how the impact of a price increase on electricity consumption depends on the price elasticity of demand. 2. The price elasticity of the Indian demand for electricity has been estimated to be -0.65 among residential users and -0.45 among industrial users. If these elasticities apply to China as well, how will the impact of a price increase be spread between residential as compared with industrial users?

    3. Many Chinese organizations ignore the market system. For instance, they borrow money from banks and refuse to repay, thus creating bad debts for lenders. Likewise, they might consume electricity without bothering to pay the power supplier. Do such organizations cause the demand for electricity to be more or less price elastic? 4. Suppose that the Chinese government regulates the electricity industry through marginal cost pricing. a. How does the contract price of thermal coal affect an electric power plants marginal cost? b. If the contract price were raised to 99% of the spot market price, how would that affect the electric power plants production?

    Thank You!!!

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