Shanghai power plant burns 800 tons of coal an hour to keep city cool

By Bloomberg News

On a sprawling riverside industrial complex about 10 miles (16 kilometers) from Shanghai’s gleaming downtown skyscrapers, a massive power plant is burning as much as 800 tons of coal an hour to keep the city cool. 
 

A heat wave is scorching China, killing livestock and straining electricity grids across the country. Temperatures in Beijing soared to as high as 39C (102F) on Thursday, and the National Meteorological Center issued a low-level heat alert, advising against outdoor activities.

In Shanghai, the Waigaoqiao power plant — the second-largest coal-fired facility in China and the fifth-biggest in the world — has ramped up generation since the start of the month to cope with the hot weather, a company spokesman said during a tour of the plant on Thursday.

“Shanghai’s power supply will be pretty tight this year,” said Chen Tao, chairman of the plant that provides more than 6% of the city’s power needs.  

Hot weather has hit earlier and more intensely than usual in China this year. In Beijing, power demand is up 30% so far this quarter from the same period a year earlier, when commercial activity was slowed by pandemic restrictions, the Beijing Daily reported. Shanghai’s peak power needs will reach 38 gigawatts this year, up from a maximum of 35 gigawatts just a year ago. 

After a spate of power shortages in 2021 and 2022, the government wants to make sure there won’t be a repeat this year. It’s pushed miners to boost coal output to a record and approved a massive fleet of new power plants, all while supporting state-owned utilities to undertake the largest renewable energy build-out in the history of mankind.

The National Development and Reform Commission reiterated that China will ensure coal and natural gas supplies are sufficient to meet summer power demand. It will push power plants to keep coal inventories at a relatively high level, a spokesperson said a briefing on Friday. 

Still, it might not be enough. Government officials have warned that certain regions will likely face periodic shortages during peak hours throughout the summer. Surging air conditioner sales mean that power needs rise even higher on the hottest days. Nationally, electricity consumption nationally was up 7.4% in May, requiring a 16% jump in generation from fossil fuel power plants, mainly due to reduced output from hydro.

In Shanghai, Waigaoqiao has stockpiled about 200,000 tons of coal with some backup fuel stored at ports, enough to keep it operating for 15 days, according to Zhang Ling, the plant’s general manager. Output is adjusted based on demand, as well as how much nearby wind and solar facilities are generating, he said.

With lower coal prices, Chairman Chen said the plant won’t face difficulties obtaining fuel this summer. The main challenge will be maintaining normal operations during the peak demand period, which is expected to last until mid-September, he said.