Page 204 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
Hydroelectric Power in developing nations that must also contend
with soaring electricity demand as per-capita
China's Three Gorges Dam is an awe-inspiring consumption rises. At the same time the drought
sight, a vast barrier across the Yangtze River that issues underscore the need to speed up efforts
contains enough concrete to fill seven Wembley to curb rising temperatures as the cost of making
Stadiums and more steel than eight Empire State the energy transition mounts (Murtaugh et. al.).
Buildings. Its turbines could singlehandedly
power the Philippines. However, scorching It is especially worrisome when you have to
temperatures and a drought upstream reduced prepare a power grid in a time of droughts and
the reservoir to a bare minimum, drastically extreme rainfall at opposite sides of the country.
reducing the plant’s ability to generate electricity. China routinely faces heavy flooding during its
The water woes of China’s iconic mega-dam are summer, but record-breaking rain in some regions
part of a global hydropower crisis that is being in 2022 has highlighted the challenges it faces as it
made worse by global warming. Summer 2022 tries to adapt to climate change, with temperatures
heatwaves and droughts shrunk rivers that feed also reaching fresh highs. In southern China,
reservoirs thoughout the world. Hydroelectricity average rainfall was already 10.7 percent higher
output fell by 75 terrawatt-hours in Europe than normal in March 2022 and doubled in some
this year through September — more than the parts of the south. Rain in the Pearl River basin
annual consumption of Greece — and fell 30 in the southern province of Guangdong was at its
percent across China in September 2022. It's a highest on record. The floods submerged farmland,
cruel irony that's forcing utilities to reconsider interrupted power and communications, affected
the traditional role of hydropower as a reliable roads and destroyed homes, with emergency
and instant source of green energy. Dams are response teams deployed throughout the country
the world’s largest source of clean energy, yet to administer relief. Across China in 2022, as many
extreme weather is making them less effective in as 487 rivers have exceeded their flood warning
the battle against climate change. The problem is levels by August 2022, while over 1.2 million people
there are few renewable alternatives as flexible were evacuated (Reuters, China gears).
or widespread. Globally, hydropower generates
more electricity than nuclear and more power A surge in hydropower output in China boosted
than wind and solar combined. Moreover, large by record-breaking rainfall actually helped China
dams have historically been more reliable, meet green targets as well as cut liquefied natural
producing power on average about 42 percent of gas imports (LNG) amid tight global supplies. The
the time, compared to 25 percent for wind and situation in China in 2022 was very unique, mainly
12 percent for solar. And grid operators can use because the COVID-19 restrictions limited power
them as a dispatchable source — one that can be demand and the fast-growing renewables are
almost instantly switched on when it’s needed, able to meet the slow power demand growth.
similar to coal or gas. Except when there’s no A lockdown in Shanghai earlier in the year and
water. No country has built more dams though COVID-19 curbs in dozens of cities crimped
than China, where the worst drought in at least 60 business activity, lowering demand for electricity.
years in Sichuan, a province the size of Germany, China added about 23 GW of new hydropower
cut generation by 50 percent in August 2022 just capacity in 2021, bringing total hydro capacity to 16
as air-conditioning demand soared to counter a percent of the power mix (Xu).
heat wave. Officials had to shut off power to many
local factories for nearly two weeks, disrupting Nuclear Power
supplies for manufacturing giants including Apple
Inc. and Tesla Inc. Concern about the reliability Sichuan's hydropower crisis has some
of dams as the planet warms is compounding officials calling for accelerated nuclear reactor
growing resistance to new hydropower projects construction. Unfortunately building plants in arid
in many countries. Hydro's struggles underline regions will be tricky. Sichuan relies on dams for
the difficulty of building a robust renewable a whopping 80 percent of its power and exports
energy network to replace fossil fuels, especially
204
Hydroelectric Power in developing nations that must also contend
with soaring electricity demand as per-capita
China's Three Gorges Dam is an awe-inspiring consumption rises. At the same time the drought
sight, a vast barrier across the Yangtze River that issues underscore the need to speed up efforts
contains enough concrete to fill seven Wembley to curb rising temperatures as the cost of making
Stadiums and more steel than eight Empire State the energy transition mounts (Murtaugh et. al.).
Buildings. Its turbines could singlehandedly
power the Philippines. However, scorching It is especially worrisome when you have to
temperatures and a drought upstream reduced prepare a power grid in a time of droughts and
the reservoir to a bare minimum, drastically extreme rainfall at opposite sides of the country.
reducing the plant’s ability to generate electricity. China routinely faces heavy flooding during its
The water woes of China’s iconic mega-dam are summer, but record-breaking rain in some regions
part of a global hydropower crisis that is being in 2022 has highlighted the challenges it faces as it
made worse by global warming. Summer 2022 tries to adapt to climate change, with temperatures
heatwaves and droughts shrunk rivers that feed also reaching fresh highs. In southern China,
reservoirs thoughout the world. Hydroelectricity average rainfall was already 10.7 percent higher
output fell by 75 terrawatt-hours in Europe than normal in March 2022 and doubled in some
this year through September — more than the parts of the south. Rain in the Pearl River basin
annual consumption of Greece — and fell 30 in the southern province of Guangdong was at its
percent across China in September 2022. It's a highest on record. The floods submerged farmland,
cruel irony that's forcing utilities to reconsider interrupted power and communications, affected
the traditional role of hydropower as a reliable roads and destroyed homes, with emergency
and instant source of green energy. Dams are response teams deployed throughout the country
the world’s largest source of clean energy, yet to administer relief. Across China in 2022, as many
extreme weather is making them less effective in as 487 rivers have exceeded their flood warning
the battle against climate change. The problem is levels by August 2022, while over 1.2 million people
there are few renewable alternatives as flexible were evacuated (Reuters, China gears).
or widespread. Globally, hydropower generates
more electricity than nuclear and more power A surge in hydropower output in China boosted
than wind and solar combined. Moreover, large by record-breaking rainfall actually helped China
dams have historically been more reliable, meet green targets as well as cut liquefied natural
producing power on average about 42 percent of gas imports (LNG) amid tight global supplies. The
the time, compared to 25 percent for wind and situation in China in 2022 was very unique, mainly
12 percent for solar. And grid operators can use because the COVID-19 restrictions limited power
them as a dispatchable source — one that can be demand and the fast-growing renewables are
almost instantly switched on when it’s needed, able to meet the slow power demand growth.
similar to coal or gas. Except when there’s no A lockdown in Shanghai earlier in the year and
water. No country has built more dams though COVID-19 curbs in dozens of cities crimped
than China, where the worst drought in at least 60 business activity, lowering demand for electricity.
years in Sichuan, a province the size of Germany, China added about 23 GW of new hydropower
cut generation by 50 percent in August 2022 just capacity in 2021, bringing total hydro capacity to 16
as air-conditioning demand soared to counter a percent of the power mix (Xu).
heat wave. Officials had to shut off power to many
local factories for nearly two weeks, disrupting Nuclear Power
supplies for manufacturing giants including Apple
Inc. and Tesla Inc. Concern about the reliability Sichuan's hydropower crisis has some
of dams as the planet warms is compounding officials calling for accelerated nuclear reactor
growing resistance to new hydropower projects construction. Unfortunately building plants in arid
in many countries. Hydro's struggles underline regions will be tricky. Sichuan relies on dams for
the difficulty of building a robust renewable a whopping 80 percent of its power and exports
energy network to replace fossil fuels, especially
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