Chinese electricity demand drops significantly amid lockdown

• Electricity use dropped 7.8% year on year for January and February, according to IHS Markit.
• It was a different scenario for the residential areas, where the electricity demand increased by 2.4pc as more people stayed home.

China has seen a significant drop in electricity demand amid coronavirus pandemic, as industries shut down have compelled people to stay indoors.

As per T&D World, China the epicenter of COVID-19 has seen a drop in electricity demand by nearly 8 percent as a result of social distancing policies and lockdowns intended to halt the spread of the disease.

Electricity use dropped 7.8% year on year for January and February, according to IHS Markit. Meanwhile, the drop was more prominent in China’s industrial sector with a 12pc decline in electricity demand, the electricity demand in the textile industry alone dropped 30pc.

However, it was a different scenario for the residential areas, where the electricity demand increased by 2.4pc as more people stayed home. The commercial and service sector also saw an increase in electricity demand by 3.1pc for January and February as people needed to stock up goods before isolating themselves.

Electricity demand from the telecom and internet sector jumped 27pc after China’s lockdown policies went into effect.

China will see a return to economic normalcy says IHS Market, as people return to work. The researcher anticipates a 3.9pc growth for the Chinese economy and a 2.8pc increase in electricity use.