NBS: China's power generation slides 12% MoM in Sept

China's power generation from all sources fell by 11.8% from August to 826.2 billion kilowatt hours (kWh) in September, though the reading remained 1.5% higher compared with the same month last year, according to the latest data released by the National Bureau of Statistics (NBS) on October 20.

The monthly decline reflected a seasonal drop in China's electricity demand last month when cooler weather across many parts of the country reduced air-conditioner use among households, Mysteel Global noted.

Generation from thermal power, the largest source of electricity production in China, retreated notably last month, down by 17.5% on month and 5.4% on year to 517.5 billion kWh. Its share in the country's total power generation also shrank to 62.6%, as compared with 67% in August, according to the NBS data.

In the first half of September, reduced fuel demand from power plants pressured down spot thermal coal prices in China, but their proactive purchases prior to the country's week-long National Day holiday bolstered up prices in the second half of the month, Mysteel Global noted.

Solar and nuclear power generation also weakened in September, down by 13.6% and 15.1% on month to 46.5 billion kWh and 36.2 billion kWh, respectively.

In contrast, hydropower generation thrived amid abundant rains last month, particularly in Southwest China which hosts the majority of the country's hydroelectric capacities. Data from the National Meteorological Administration showed that average rainfall across China amounted to 80.1 mm last month, higher by a substantial 32.4% than the same period of past years.

The outflows of China's Three Gorges Dam, the country's largest one and spanning the Yangtze River in Yichang, Central China's Hubei province, averaged 23,786 cm3/s last month, soaring by 74% from the month-prior average, Mysteel's monitoring data showed.

As such, China's electricity generation from hydro dams in September hit an 11-month high of 158.9 billion kWh, rising by 7.5% from August and jumping by 31.9% from the year-ago level. It accounted for 19.2% of the country's total power generation last month, up from 15.8% in August, the NBS data showed.

Wind power contributed 8.1% to the overall power mix, with its generation up by 4.2% on month to 67.2 billion kWh, though the figure was 7.6% lower on year, the NBS data indicated.

For the first nine months of this year, China's total electricity output from all sources reached 7.26 trillion kWh, higher by 1.6% from the same period last year, according to the NBS data.

Written by Tammy Yang, yangfangb@mysteel.com

Edited by Alyssa Ren, rentingting@mysteel.com