China orders coal mines to boost production amid 'worst electricity crisis'

Beijing has ordered China’s coal mines to boost production in a bid to mitigate the power crisis that has left millions of homes across the nation without electricity. According to CNN, several provinces across China have been suffering from blackouts since the middle of the last month. The power shortages have led to increasing demand for electricity and forced the Chinese government to ration electricity during peak hours. 

Now, amid the power crisis, Chinese officials in Inner Mongolia have asked 72 mines to boost production by a total of 98.4 million metric tons. The Inner Mongolia region is the country’s second-largest producer of coal. The proposed increase in the output would amount to almost three per cent of China’s total annual thermal coal consumption, according to the official government data. 

According to reports, China is facing its “worst electricity crisis” in decades. The power shortage has forced factories to reduce operating days and electricity consumption. The move is the latest attempt by Chinese officials to increase coal supplies as prices hit record heights and electricity shortages have forced energy firms to ration power in large parts of the country. 

China's electricity crisis

Last week, China’s state planner, the National Development and Reform Commission, even called on mining companies and power firms to sign up to new agreements to resolve the problem. China’s three biggest coal-producing provinces -  Inner Mongolia, Shanxi, and Shaanxi - have also been ordered to deliver 145 million metric tons of coal in the fourth quarter, so that “livelihood use of coal” is not interrupted. 

Coal is the main energy source of China as it provides 70 per cent of the country’s power generation. Experts believe that the reason for the recent crisis could be tacked back to a string of policy missteps and poorly thought-out market interventions after the beginning of the pandemic. It is worth mentioning that earlier this year, China had even shut down hundreds of coal mines or reduced production in the functioning ones amid a national push to reduce carbon emissions. 

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