Demand for electricity in China will grow faster than expected in 2024, the trade association says

BEIJING: China’s energy demand will grow faster than expected this year due to record heatwaves and Beijing’s economic stimulus measures aimed at boosting demand, an industry body said in its latest quarterly report.

The China Electricity Council now sees electricity consumption growing 7 percent to 9.9 trillion kilowatt hours (kWh) in 2024, according to its third-quarter report released late on Monday.

The group had forecast growth of 6.5 percent to 9.82 trillion kWh in its previous report.

Under the new forecast, energy demand growth in 2024 would be higher than last year’s 6.7 percent, the group said. It also indicates that electricity consumption will continue to grow faster than China’s economy, which is likely to grow 4.8 percent this year according to a Reuters poll of economists.

“High summer temperatures caused power consumption to exceed expectations in the first three quarters,” the CEC report said, adding that peak demand during summer reached a record high of 1.45 billion kilowatts, with China recording the highest national average temperature recorded in 57 years. years.

The report also cited the economic stimulus package introduced earlier this month to support the country’s economy, which it said would help sustain economic growth and support energy demand.

However, the CEC said energy demand growth would slow to 5 percent in the fourth quarter due to a high base effect in the year-ago period.

As energy demand grows, supply could be tight this winter during periods of peak demand in parts of eastern and southern China, the report said. The demand for electricity normally also peaks in winter, when households turn on their heating.