The average temperature in the ten major cities along the Yangtze River is currently six degrees Celsius above the average level over the past five years. pic.twitter.com/eanms8Dw1Z
— Shanghai Macro Strategist (@ShanghaiMacro) August 24, 2022
However, there are two critical differences between the current situation and the crisis in 2021. First, the demand side is different. Instead of booming industrial activity last year, it is the surging usage of air conditioning that is driving power demand this time. pic.twitter.com/Ib5PH5JmsO
— Shanghai Macro Strategist (@ShanghaiMacro) August 24, 2022
Given that hydro power only accounts for 17% of national power supply while coal accounts for 60%, the overall impact from the draught will be less severe compared with the coal crisis in 2021. And it is very unlikely that China will experience another coal shortage this year. pic.twitter.com/8OkcUmZQLX
— Shanghai Macro Strategist (@ShanghaiMacro) August 24, 2022
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