The “only real option in the short term” for China to boost its electricity grid stability is to increase coal-fired power production, ANZ Group analysts Daniel Hynes and Soni Kumari said in a report.
Concerns about power shortages could force China to rely more on coal to keep grids stable amid the growing demand for electricity, including from the rising electric vehicles fleet, analysts at ANZ Group say.
The rise in EV sales in the world’s largest EV market, China, is set to increase pressure on the grids, which have struggled recently amid low hydropower output and rising power demand from industry and households. In these circumstances, the “only real option in the short term” for China to boost its electricity grid stability is to increase coal-fired power production, ANZ Group analysts Daniel Hynes and Soni Kumari said in a report on Thursday, as carried by“Power shortages are likely to reemerge as the acceleration in the energy transition continues to put pressure on electricity networks,” the analysts added.
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