A drop in electricity usage in China's Pearl River Delta region has raised global concerns about an economic slowdown in the area.
Energy consumption in China is usually regarded as a barometer for economic growth but in Guangdong, the growth of electricity usage has been decelerating since the beginning of July.
Since energy consumption is down, widespread power shortages like those experienced last year, are less likely. Some large industrial companies, which are the biggest users of electricity, are therefore able to ensure normal operations.
"Last year, we could only receive electricity three days a week but this year the basic needs for electricity during production can be guaranteed," said General Manager Assistant of Foshan Sanshui Exquisite Material Co., Liang Jiehua.
However, economic ysts say that slower growth in electricity use reflects a lackluster state of manufacturing in China. Some experts also worry that the deceleration in electricity usage will drag on GDP growth in the next few months.
"Most of the enterprises in the Pearl River Delta are mainly doing export-oriented businesses," said Deputy Chief Engineer of China Southern Power Grid, Wang Jifeng."As the global economic crisis has undermined Chinese exports, there were less orders coming in from Europe. As a result, those enterprises lowered their electricity consumption," added Wang.
The China Electricity Council, however, forecast that a recovery in industrial activity could lead to a gradual rise in electricity use in the third quarter, along with a rise in demand for thermal coal.
