South western province Guizhou, which ranks the fifth in coal deposit of 58.7 billion tonnes, has been facing increased power supply strains this year, with Q2 deficit expected to reach 1.5GW-2GW, or 20-30m KWh/day, forecast local grid operator.

According to Fu Jing, director of the provincial energy bureau, the closure of small mines and decline in production capacity since last year is believed to be the reason, although severe droughts were also responsible. Guizhou shut down 515 small mines in 2010, reducing capacity by 25 million tonne per year.

The province wants to reduce mining companies from current 1,000 to 300 by 2012, and further to 200 by 2013.

According to local economic planners, Guizhou’s power plants are presently receiving 0.15 million tonne per day supply, while consumption stands at 0.16 million tonne per day leading to a 0.01 million tonne per day gap. The internal shortage forces the province to cut inter-provincial power supply to Guangdong by 20%. Guizhou produced 159.54 million tonne in 2010, rising 16.53% YoY.

(Sourced from China Coal Times)