Multi-site grid load innovation high-power coal market or change

In recent days, the country has experienced an intense heatwave, with many regions recording record-breaking temperatures. This surge in heat has led to a significant increase in power demand, putting immense pressure on the grid. Industry sources have told the China Securities Journal that as thermal power plants ramp up their operations, the downward trend in thermal coal prices has slowed, signaling subtle shifts in the coal market. The high grid load has been a major concern since late July, when widespread high temperatures began. According to data from the National Grid Power Control Center, the national grid load hit historic levels at the end of July and into early August. In Beijing, for example, the power grid load reached 16.797 million kilowatts on July 30, breaking previous records. The Beijing Electric Power Company raised its emergency response level from Level IV to Level III. Similarly, in Tianjin, the power grid load exceeded 12 million kilowatts on July 29, marking a new high and showing a 7.7% increase compared to the previous year. Southern provinces, too, have struggled with the extreme heat. Hangzhou, Zhejiang, saw temperatures rise to 40.1°C on July 28, the fifth consecutive day above 40°C. By July 29, Zhejiang’s unified power load and daily electricity consumption had both set new records, reaching 54.63 million kilowatts and 1.13 billion kWh respectively. With the province's maximum power supply capacity hovering around 53-55 million kilowatts, the electricity balance is extremely tight. Even western provinces like Ningxia have not been spared. On August 1, the power grid load in Ningxia climbed to 10.28 million kilowatts, while daily electricity consumption hit a record high of 23,326 megawatt-hours. According to State Grid data, power generation volumes on July 24 and 25 hit new records, with 16.866 billion kWh generated on the 25th. The national grid load also reached a peak of 627 million kilowatts that day, with several regional grids—including those in North China, East China, and Central China—setting all-time highs. Interestingly, this summer’s heatwave has not led to widespread power shortages, unlike in previous years. State Grid sources noted that before the summer season, power cuts were common, forcing some industrial enterprises to adjust production. This year, despite rising residential electricity use, the expected “power shortage” has not materialized. Experts from the China Electricity Council suggest this is due to slower growth in industrial electricity consumption. As the country continues to phase out outdated production capacities in sectors like steel and papermaking, overall electricity demand growth remains low, indicating progress in structural economic adjustments. Wang Zhenming, a senior engineer at the State Grid Beijing Institute of Economics and Technology, pointed out that with increased residential electricity usage, total societal electricity consumption is expected to hit a record high. In Hunan, for instance, the maximum power load reached 20.54 million kilowatts on July 24, with daily consumption hitting 429 million kilowatt-hours. Hydropower contributed only 47 million kWh, while thermal power supplied 317 million kWh. Additional power came from other provinces, renewables, and other sources. Currently, the average operating rate of major thermal power plants has reached 96.6%, up 1.3 percentage points from the previous month. Coal inventories have also declined by about 3%. Although the increased thermal power output has not yet stabilized coal prices or sales, some coal companies report that the rate of price decline has slowed since late July, suggesting potential minor changes in the thermal coal market as power plant stocks begin to build up.

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