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Heatwave in China threatens rice and cotton crops and strains the electricity grid

China has so far escaped the severe power outages that occurred when there was a statewide coal shortage last year. The supply of coal is significantly higher now that miners were instructed to increase production to record levels, according to the authorities, who are confident that the current situation can be controlled.

Digital Desk: As China attempts to boost industrial activity to bolster the economy, scorching temperatures are putting a burden on the country's electrical networks. Meanwhile, farmers are frantically trying to protect crops like rice and cotton from the effects of the intense heat.

In order to ensure that there is adequate electricity to run air conditioners during peak hours, certain locations have already seen record-high power demand. In southern China, the heat is threatening the crops of rice, fruit, and vegetables, while in Xinjiang, where cotton is grown, melting glaciers are causing floods.

China's ability to maintain the operation of its industries is being put to the test by the heat, from the southern technology hub of Shenzhen to the eastern manufacturing region of Zhejiang, which borders Shanghai. Another indication of the dangers posed by increasingly regular extreme weather events brought on by climate change is the interruptions in the world's second-largest economy. This summer, heat waves have also devastated the US, Europe, and India.

China has so far escaped the severe power outages that occurred when there was a statewide coal shortage last year. The supply of coal is significantly higher now that miners were instructed to increase production to record levels, according to the authorities, who are confident that the current situation can be controlled.

The National Energy Administration highlighted a record-breaking 52 percent growth in power plant inventories to 170 million tonnes at the conclusion of the first half of the year at a briefing on Wednesday. But almost a month of consistently hot weather will have already depleted their supplies. According to China Coal Resources, inventories kept in six power plants in the coastal regions with a lot of industry fell to a four-year low last week with less than 12 days of usage.

Most cities may experience increases in demand through August, but this year we anticipate a less severe power shortage, according to BloombergNEF analyst Hanyang Wei.

According to the China Meteorological Administration, southern China will experience yet another heat wave over the next ten days.

However, in the instance of Guangdong, the southern economic powerhouse, where this year's hot wave has brought demand far closer to the grid's limits, equipment breakdowns rather than a lack of coal have been the root of the issues, according to BNEF's Hanyang.

According to Li Fulong, an official at the NEA, China anticipates its energy demand to increase in the second half of the year following different initiatives to stimulate the economy, resulting in another spike in coal, gas, and electricity demand in the winter.