Economic slowdown dampens China’s power use

China's power consumption growth slowed by 9.3% in September year-on-year on reduced factory activity and industrial output triggered by the persistent economic downturn.

The National Energy Administration said China's total electricity consumption grew only 2.9% from a year earlier to 405.1 billion kilowatt hours (kwh). That was 0.7% lower than August and 9.3% lower than September 2011.

Consumption from January to September amounted to 3.7 trillion kwh, up 4.8% year-on-year. It was also lower than the 5.1% growth seen in the first eight months, according to NEA.

Zhou Dadi, standing vice president of the China Energy Research Society, said the slower growth in power consumption is the result of energy-consuming industries like the real estate and infrastructure construction sectors, decelerating amid the slowing economy.

NEA data showed that electricity used by the industrial and manufacturing sector continued to tumble, accounting for 73% of China’s total power consumption in September.

From July to September, power consumption by the industrial and manufacturing sector continued to fall, indicating that the Chinese economy is still facing downward pressure.

Zhou said the drop in power consumption can also be explained by the country's economic restructuring.

Power consumed by the agriculture sector dipped 0.3% year-on-year to 79.5 billion kwh, while electricity consumed by the industrial and manufacturing sector added 2.9% year-on-year to 2.7 trillion kwh.

Electricity consumption by the service sector increased 11.3% year-on-year to 428.5 billion kwh while residential electricity use amounted to 477.9 billion kwh, up 11.6% year-on-year.