Severe Electricity Problems in China & Europe

Since June 2021, China has ordered rationing of electricity in offices, homes, factories, etc. There are time limits of how much electricity can be used. In some cities the use of ACs and lifts were banned. In India some cities or villages for hours there is no electricity. This is happening in China as well. Because of the strict rules many factories have had to shut down or reduce production. Now you may wonder why the most powerful and richest country in the world is facing electricity problems. For that we will first have to learn how electricity is made. In China electricity is mostly made using coal. Electricity is produced by burning coal in a boiler to produce steam. The steam produced flows into a turbine, which spins a generator to create electricity. China also uses ‘Natural Gas’ to make electricity. ‘Natural Gas’ is naturally found deep below the earth. Natural gas is very hot. It is used to boil water, convert it into steam which rotates the turbines and electricity is formed. Coal when burnt creates smoke which pollutes our environment. However Natural gas does not cause pollution and is a good way to make electricity. China has switched to natural gas to make electricity but still they are very heavily dependent on coal.

Currently since production of both have become very less which is why their prices have skyrocketed. Coal prices are nearly at their highest in 13 years. This is why there is a shortage of electricity production and the Chinese government has implemented strict regulations on its usage. This is not the case only in China, the same is happening in Europe as well. People are saying that winter is coming soon. In China and Europe people will need electricity to heat their homes. If this continues, people will face more difficulties.

Here are reasons why the price of coal & natural gas has increased :

For more than a year the entire world was on lockdown. Factories, businesses, etc. were shut. Once everything opened, factories started producing more things and the demand for coal went through the roof.

Compared to other countries, China is the largest user of electricity as they have the highest number of factories which make mobiles, TV, fridge and so many other items. Since they use so much coal and natural gas, the natural reserves of these under the earth are also reducing day by day.

China used to get 90% of their coal locally from their various states. However, there is a severe shortage of coal in these states and since the production takes time, they are facing electricity problems.

Countries across the world have promised to reduce pollution in their country by controlling the bad gases and smoke that is released in their factories. China has promised that by 2060 they will make sure there is no pollution in their factories. But to achieve this goal they have to stop using coal, switch to natural gas to make electricity and implement strict rules on the country’s electricity usage.

China’s decision to ban the purchase of Australian coal due to political tensions is also another reason why there is an electricity problem in China.

There were problems with Coal mining in countries like Indonesia and Colombia which supplied coal to China and Europe as these countries experienced heavy rains in the last year. In other countries because of the lockdown, work to remove coal from the earth had stopped which is why the production reduced and price increased.

China and Europe’s electricity problem was a blessing to the Indian Coal producers. Earlier a lot of factories in India used to buy coal from foreign countries due to the cheap price. Now that coal prices in foreign countries have increased, Indian coal producers are back in demand and supplying to Indian factories, but still the coal stock is limited. Experts say the price for coal will remain high in the coming months. Fuel price increases are not only happening in China, Europe, but also in India. It affects the whole world. Governments need to take action and ensure that we use electricity in a limited way to avoid economic troubles.
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