China will offer assistance to coal plants to maintain electricity supplies as demand for the fuel surges in the wake of extreme heat and droughts in the south-west of the country. A months-long heatwave and a lack of rain has starved dams of water in Sichuan, a province of 80mn which mostly relies on hydropower, forcing authorities there and in the neighbouring municipality of Chongqing to ask companies to temporarily shut factories.
China’s vice-premier Han Zheng said on Wednesday that Beijing would provide support for coal after the country’s planning ministry said daily consumption of the fuel by the country’s power plants was up 15 per cent in the first two weeks of August compared with the same period last year.
“[We need to] guarantee safe electricity supply for the people . . . and key sectors,” he said, during a visit to the State Grid Corporation of China. The government will “enhance policy support [and] take multiple measures to help coal plants ease actual difficulties”, he added without offering details.