China Electricity Consumption Grows At Slowest Pace In 30 Years

Tyler Durden's picture

Chinese Electricity Consumption year-to-date grew at 1.3% year-over-year in June. As China People's Daily reports, this is the slowest pace for mid-year in 30 years according to China Electricity Council.

 

 

As China People's Daily reports,

China Electricity Council released “A Brief on 2015 Jan.-Jun. Electricity Industry” on July 21, reporting a declined acceleration rate on power consumption of 1.3%- the lowest acceleration rate in 30 years.

 

According to the brief, the first half of 2015 sees a total electricity consumption of 2662.4 billion kWh all over China. Electricity supply relatively surpasses the demand, but the investment in electricity construction still increases.

 

The data varies in different areas. There are 19 provinces whose acceleration rates are above the 1.3% national average, and there are 9 provinces whose acceleration rates are below zero.

 

The data also varies in different industries. Electricity consumption in secondary industry decreases by 0.5%: the very first time to decrease in five years. Electricity consumption in light industry increases by 2.1%, while heavy industry decreases by 0.9%.

 

Electricity data has long been the barometer of economy. According to China Energy News, experts point out that the decreased acceleration rate is the indicator that China has entered a phase of slower economic development.

*  *  *

While we know only a tin-foil-hat-wearing fringe blog would question the honesty of China's headline macro data, the weakest growth in Electricity consumption in 30 years does tend to suggest things are not as 'unicorns and ponies' as some would have the world believe.

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Bitcoin Meiser's picture

I was so wrong about China. They are not as "ready" as they pretended to be.

Tom Servo's picture

Better get the big hitters out for the 3:30 ramp...

 

johngaltfla's picture

US electricity futures indicate a dim, er, powerless autumn also. No growth unless the iChargers start consuming more juice to save the ObamaCONomy from a deflationary depression.

venturen's picture

Solar represents like .01%...did you know at night solar doesn't work...it seems some people don't understand that when demand is needed...it doesn't work

Milton Keynes's picture

LED Lightbulbs Bitches.  China makes all those cheap LED bulbs and suddenly discovered that

if you have supremely efficient lighting, you make the office and plant less hot and you need

less A/C

CPL's picture

Ummm, the coal industry is fucked and in the process of collapsing.  66% of China's power is generated by coal.  When the coal buckets at the mine are coming up empty and there's a commodities market run by morons it destroys the complete supply chain to provide power. 

Much like the chart shows above with the peak and the decline, that's about the same time the coal started to run out.  Not just in China mind you...everywhere.  The fact is everyone is getting hit with the same issue (go read up on India and Pakistan's problems).  Even 40% of the power made in the western world is still coal.  Not only is the oil running out...so are alot of other things like coal.  Every country but the USA is taking the attitude that less is more and reflecting it in how they conserve their energy.

China is in the process of getting ready, the western world is not.  Why is that?

http://www.platts.com/latest-news/coal/perth/one-sixth-of-australian-the...

http://oilprice.com/Energy/Coal/Bankruptcies-Starting-To-Pile-Up-In-Coal...

http://www.hellenicshippingnews.com/chinas-coal-industry-loses-steam-as-...

http://www.hellenicshippingnews.com/chinas-may-thermal-coal-imports-coll...

http://www.hellenicshippingnews.com/chinas-coal-imports-from-australia-d...

http://oilprice.com/Energy/Coal/Coal-Facing-Worst-Year-Yet-in-2015.html

http://cassandralegacy.blogspot.jp/2015/05/the-senility-of-elites-coal-m...

http://www.bloomberg.com/news/articles/2015-05-28/mounting-coal-piles-ad...

http://www.platts.com/latest-news/coal/houston/us-weekly-coal-carloads-b...

http://www.hellenicshippingnews.com/australia-coal-industry-set-for-shak...

http://www.reuters.com/article/2015/04/25/germany-coal-protests-idUSL5N0...

http://oilprice.com/Energy/Coal/Weak-Chinese-Demand-Could-Undermine-Enti...

Dubaibanker's picture

Dear Tyler and fellow ZHers,

This headline is totally and grossly misleading.

One small blip does not make a trend!

It is unfair to assert that China's electricity consumption is declining without mentioning that China's hydroelectricity consumption has jumped from 80m tons oil equiv. to 208.2m tons in 2014 over a 10 year period, a rise of 160.25%!

At the same, a country with almost double the GDP, being USA, and triple the GDP of 5 years ago and quadruple the GDP, 10 years ago, remained STAGNANT at 61.3m tons oil equiv and 61.4m tons oil equiv between 2004 to 2014.

There is no mention on ZH that India, a country with roughly equiv population size of China rose from 19m tons oil equiv to just 29.8 m oil equiv (a rise of 56.8%) and just about 7 times LOWER than China's consumption in 2014!. (that's 700% higher in China than in India or 700% lower in India than in China)!

At the same time, biggest DECLINES were observed in Europe (and we ALL know what's happening in Eurozone) while largest increases were seen across Asia) in the period 2014 versus 2013.

One monthly data point does not make a decline!

I suggest ZH should stop its anti China sentiment just like a typical Bloomberg or WSJ or FT headline writer...... (or write with a proper perspective and also SCREAM when European consumption as well as production is declining at super speed or American one is stagnant at best while American population has risen from 290m to 320m (that too excluding the illegals) over the last decade.

And before anyone jumps on me with energy efficiency, please think and then write about efficiency. Yes, there is efficieny improvement but does it not get offset by rising population as well as poor people who cannot afford to replace their electric systems added to which is an economic decline with factory shut downs and what not?

For those who want the data: This latest report from BP is fascinating and mind blowing but please try to read and compare the data with an open mind while ignonring this ZH article! http://www.bp.com/content/dam/bp/pdf/Energy-economics/statistical-review...

Meanwhile, American oil consumption too has stagnated while China's oil consumption has more than doubled over the past decade!

Same for nuclear energy, China's consumption / production has more than doubled while US has again stagnated over the last decade! China has built over 26 reactors with 24 more under construction with at least 50 more to built in the next decade!

China will soon surpass South Korea, Russia, and Japan in nuclear generating capacity
Fahque Imuhnutjahb's picture

I've been reading this blog from the getgo, and my take is that the Tylers are equal opportunity bashers; I know the comments are, in fact the comments tend to be harder on the US from my perspective.

....and he dropped the mic.

Dubaibanker's picture

I agree.

But ZH may lose its appeal if only retarded people are attracted to this site.

I been reading it since 2008 or 2009 and joined around 2011....

There is no robust discussions, everything is a negative slant and nowhere does anyone provide a perspective or admit defeat where they were wrong but when the writers are correct, they dig out even a 10 year old article....

China bashing is simply wrong because the FACTS are wrong. 

I agree on manipulation in US, EU, Japan etc even gold and oil....because this is the THE END of the road for western capitalism as knew it....but talking bad about real growth economies with real business acivities is simply poor thinking!

The Ingenious Gentleman's picture

I think the reason you see more about China now in ZH is that China is hugely important now, particularly if things are not going well. It has nothing to do with being anti-China, anti-Greece, anti-Japan or anti-US. People don't come here looking for cheerleaders. And if they're wrong 10% of the time, it's worth it for the different perspective.

divingengineer's picture

The title says "electricity consumption", what does the method of production have to do with that? 

They are USING less than expected.

 

Max Steel's picture

Just read his first post agsin dumbo

i_call_you_my_base's picture

Time for the PBOC to buy electricity and ground it. Better still, make a law that all chinese citizens must keep their lights on all night.

Rainman's picture

Must not be many Teslas getting charged up over there.

divingengineer's picture

There's nearly 60. 

How many you want? Geez!

Dr. Engali's picture

China is using less energy, oil prices are down, and gas prices are slowly drifting downwards, am I the only one who sees this as good news?

KnuckleDragger-X's picture

Depends on your definition of 'good'. At this point as long as I don't wake up dead, it's all good. We're starting to see leaks springing up on the dam and its getting hard to keep up with patching them. But don't worry Doc, we've got the best and brightest taking care of things.....

GoldSilverBitcoinBug's picture

Yeah, a global recession is always a good news...

Dr. Engali's picture

Uhmm, hello. We've been in a depression since 2000. It's about time prices caught down to the fact.

Maplehood's picture

Over/Under on when the China's People Daily gets "shut down"?

Dr. Engali's picture

Maybe Nikkei Inc. will buy them.

i_call_you_my_base's picture

Nothing comes out of china media without pre-screening. Nothing.

BlueStreet's picture

The fringe is the only place you can see the forest through the trees that is this charade.  

Miffed Microbiologist's picture

I suppose this doesn't mean everyone is converting to solar.

Miffed

Uber Vandal's picture

Actually Miffed, when I bring this subject up to one of my friends, his automatic straw man defense is, in no particular order:

More solar power / Green Energy useage

More LED / CFL bulb useage

More efficient electronics and household products

More reliance on public transportation

More fuel efficient vehicles

More use of bicycles or people simply walking.

 

While all of those are correct and would add up in energy reductions, in an economic recession / depression/ crater/ abyss, there simply will be less energy demand for everything.

 

i_call_you_my_base's picture

Public transportation uses electricity and vehicles do not. Some of this doesn't make sense regardless.

Milton Keynes's picture

Econometrics tied to energy consumption are very misleading.

Energy consumption across the G-20 is declining on a per capita basis.

 

I have a big Desktop computer, I hardly use it, i mostly use my laptop now.

My GF hardly uses her laptop, she does about 70% of her data cruising on a Tablet.

 

 

Fahque Imuhnutjahb's picture

 

 

Well it wasn't too long ago the meme was "China tries to cool off hot markets".  Congratulations!!  mission accomplished; central planning wins out again.  With that in mind I'm going in the kitchen to cook a can

of soup by turning the burner from high to low repeatedly in rapid succession.

youngman's picture

At least its still positive....this might help clean up their air a little bit too...

Bitcoin Meiser's picture

What is this? A center for ants?

henry chucho's picture

The cheaper energy gets,the less of it the Chinese use,but the higher the stock market goes,the more of it they buy..Are you shitting me?

Dindu Nuffins's picture

It's almost as if, when a billion people have the same idea, that they somehow cause the price to go up... no matter what they're currently manic for?

CHC's picture
CHC (not verified) Jul 23, 2015 3:43 PM

When you're lying or fudging numbers, it's very easy to miss one thing, one item, one # that you missed.  This could be the 'proof in the pudding' number that puts every other number China puts out as questionable at best. Why anyone would ever believe anything the Chinese say is beyond me but that's for another discussion.

reader2010's picture

isnt this a better thing for the environment? 

Bitcoin Meiser's picture

Meanwhile back in NYC I have my air conditioner on full blast, with all of my lights on and soup cooking on the stove, two computers in use and Roku streaming Bloomberg.

divingengineer's picture

You got that WiFi router bitcoin miner powering through 1.21 Gigawatts of electricity an hour? 

GoldSilverBitcoinBug's picture

If China collapse, the WHOLE WORLD will collapse including US too.

To now, only China was the engine of the world growth engine.

Things will go from SNAFU to FUBAR in a very short time.