China asks to increase the supply of Russian electricity

Chinese representatives approached the Russian company PJSC Inter RAO with a request to increase the supply of electricity to the country due to the severe energy shortage in the northern provinces. At the moment, the technical side of the supply issue is being discussed.

At the same time, export volumes will be determined hourly, depending on demand. Just as our specialists emphasize, an increase in supplies to China will reduce the final price for electricity for Russian industrialists in the Far East. This will be possible due to the peculiarities of the exporter's margin regulation.

China is in dire need of electricity

So in the past 2020, the total volume of electricity exports from the Russian Federation to China was at the level of 3.06 billion kWh, which turned out to be 1.3% less than in 2019. In addition, supplies continued to decline in the first half of 2021.

The Chinese economy is gaining momentum, and as a result, electricity consumption this year increased by 16%. But all the plans for systematic development have confused high prices for gas and coal.

The thing is that the overwhelming majority of Chinese power plants sell electricity according to fixed prices and some of the manufacturers decided to suspend their work in order not to work at a loss.

And in order for the production of electricity to become profitable again, it is necessary to raise tariffs by at least 30%. This has led to the fact that in China, the energy crisis is starting to gain momentum.

This has already led to the fact that many enterprises have switched to the 2/2 mode of operation (two days of downtime, two days of work), and some enterprises generally work only 2 days a week.

The forecasted cold winter can aggravate the energy "hole". And it turns out that in order to solve the problem with electricity supplies as soon as possible, the authorities of the northern provinces turned to the Russian side with a request to increase the supply of electricity.

In fact, this will be beneficial to both parties, since China will allow obtaining cheap energy, and Russia will reduce the burden on industrial consumers in the Far East.

And, as it became known, Inter RAO will triple the supply of electricity to China starting from October 1.

Well, we will follow the development of the situation. Well, if you liked the material, then rate it and do not forget to subscribe to the channel. Thank you for your attention!