Chinese Electricity Demand and Recession

11:22 AM Posted by Baris Sanli
One of the implications of the recession is the big drops in electricity demands. In the developing countries, we see electricity demand drops followed by drops at industrial activity statistics. Here we see a basic example of economic activity(export rate is an indicator of Chinese economy) and electricity demand.

This news (China hit by massive drop in exports) from Financial Times says :
"Chinese exports plunged 25.7 per cent in February compared with a year ago, much higher than analysts had expected, as the global economic crisis began to take its full toll on the country’s export sector."

You should also check the following line:
"China’s exports have decreased for four months in a row, but until February the rate of decline had been much slower than seen in other Asian countries with large export sectors. .... The trade surplus, which has been at record levels for the last four months, also shrank sharply from $39.1bn to $4.84bn."

This reminded me the news from last month about a drop in Chinese electricity demand. Last month(Jan 2008), we have seen a 13% drop in Chinese electricity demand:

"Major power producers generated only 250.3 million megawatt hours of electricity last month, falling 13 percent from a year earlier, the China Daily reported. This is the fourth consecutive month that electricity generation in the country declined".
Source: China Post

Also read this one from Xinhua:

"However, the decline was smaller than in November and December, when power use fell 8.6 percent and 8.93 percent, respectively. According to CEC, the slowing pace of decline was a sign of economic recovery, as industrial use accounts for about 75 percent of total consumption. "

If you check Chinese state grid web site ( , you will see that the graphs (English / Statistics) are not updated for a long time
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