The "electricity shortage" is due to the excessive growth of high-energy-consuming industries.
September 05 09:34:10, 2025
As temperatures continue to climb, the electricity shortage that had previously eased has made a troubling return. The State Grid Corporation of China has warned that the power deficit in the North, East, and Central China regions—commonly referred to as Sanhua—is expected to persist not just through this summer, but also into this winter and possibly extend into 2012 and even 2013. This is no longer a temporary issue; it’s becoming a recurring challenge.
With the start of the 12th Five-Year Plan, electricity shortages have become a central concern. While maintaining stable electricity prices is important, there's an urgent need to address the deeper structural issues behind these shortages. It’s not just about supply and demand—it’s about how we manage energy consumption and industrial growth.
According to data released by the National Development and Reform Commission, the country’s GDP grew by 9.6% in the first four months of this year, while electricity consumption surged by 12.6%. This means the power elasticity coefficient reached 1.32, indicating that electricity use is growing faster than economic output. While some regions faced temporary shortages due to droughts affecting hydropower, this overall trend suggests a broader, systemic electricity shortage.
The root cause lies in the rapid expansion of high-energy-consuming industries. In the first quarter alone, the production of crude steel, coke, cement, and iron increased by 13.3%, 29.8%, 23.7%, and 17.4% respectively. These industries are pushing the limits of China’s energy infrastructure, especially given the current reliance on coal-fired power plants. Experts warn that only half of the 3 billion tons of coal produced annually meets safe, efficient, and environmentally friendly standards. The rest contributes to pollution, resource waste, and safety risks.
This pattern of energy use—relying heavily on non-scientific production and inefficient consumption—has led to environmental degradation and unsustainable growth. We can call this model "A," which prioritizes rapid expansion at the cost of long-term stability. To break free from this cycle, China must transition to a more sustainable energy supply model, which we can call "B."
Model B emphasizes meeting reasonable demand through scientific and efficient supply. For example, in the cement industry, China’s annual output has skyrocketed from 600 million to 1.84 billion tons since 2000, accounting for nearly 60% of global production. However, experts estimate that existing capacity could support over 2.5 billion square meters of construction, 100,000 km of highways, and extensive rail and airport networks—far beyond what is realistically needed.
This indicates that many high-energy industries have already reached saturation. Continuing to expand them will only worsen resource constraints and environmental damage. Unnecessary projects like large-scale speculative developments, golf courses, or poorly planned infrastructure are not only wasteful but also counterproductive.
On a macro level, China’s energy intensity remains alarmingly high. In 2010, the country accounted for 9.5% of the world’s GDP but consumed 19.5% of global energy. Its energy use per unit of GDP is almost double the global average and nearly five times that of Japan. While some inefficiency is expected during rapid industrialization, the current levels point to serious structural and efficiency issues.
To move toward scientific supply, China must focus on improving coal production efficiency, reducing outdated and unsafe capacity, and investing in renewable energy and natural gas. Technological innovation and cleaner energy sources are key to building a modern, diverse, and sustainable energy system.
China stands at a critical turning point. To achieve a sustainable future, it must shift away from high-investment, energy-intensive growth and instead prioritize efficiency, environmental protection, and long-term development. This requires rethinking performance metrics, integrating economic value into policy decisions, and using market mechanisms to drive change.
In short, the electricity shortage is not just a technical problem—it’s a symptom of a larger imbalance in energy use and industrial structure. Addressing it requires a fundamental transformation of how we produce, consume, and manage energy. Energy conservation is not just about saving resources; it’s about fostering new economic growth and developing a smarter, more sustainable future. Leading in energy efficiency must be one of the defining features of China’s modernization journey.