Summer: blackout season

China, Japan, India, Thailand, Vietnam, Phillippines take measures to guarantee energy and development

Hong Kong (AsiaNews) -- Asia is accustomed to defending itself against energy shortages; this year, however, more difficulties than usual are foreseen due to the concurrence of climatic and international political factors.  While the U.S. and Western states belonging to the the International Energy Agency (IEA) have enough reserves to see them through energy supply crises, Asia -- and especially the Far East -- risks being overwhelmed by supply shortages.  In fact, the greater the growth in petroleum consumption for energy production, the more Asian countries become dependent on the Middle East; such a dependency could prove risky were the situation in Iraq not to stabilize and were terrorism to continue threatening Saudi Arabia.

China

What worries this country most is the possibility of finding itself coping with a blackout on the scale of the one that hit North America last August and left 50 million people without electrical energy.

The Yangtze River delta area will probably be hit , this summer, by the worse energy shortage in recent years.  Shanghai and the Jiangsu provinces are preparing to deal with a shortage ranging between 10 and 15 million kW.  The China Securities Journal recently made known that in the first 5 months of the year, 24 provinces suffered blackouts, compared to the 23 of last year and the 12 of 2002.  Despite the government's intention to slow down economic growth -- and to curb energy consumption -- a blackout of 20 million kW is expected in the second four-month period and of 25 in the third.

Instructions are arriving from Beijing on how to cope with energy shortages.  Authorities intend to guarantee energy resources to families, agriculture and key industries, while restrictions are planned for energy industries.  Many companies, including foreign ones, have decided to stagger hours of consumption to limit the use of electricity during peak periods and to give more holidays to employees as a way of saving energy, as was announced by Wan Jian, director of the Economic Commission of Shanghai.  Mandated consumption cut-backs for 1,700 companies will take effect from mid-June to September 17th.

Beijing has gone so far as to publish a pamphlet on how to save energy, for example by limiting the use of air conditioners in offices which, acording to China Daily, alone account for 40% of energy consumption in cities.  The pamphlet states that 24 hotels in the capital have launched a campaign to keep a standard inside temperature of 23 rather than 22 degrees, an initiative that should decrease electrical consumption by 8%.

Another reason for alarm is the lack of water, which is extensively used in coal combustion processes. Water shortages cost the country some 290 billion yuan a year in economic losses.  The minister for environmental resources, Wu Jisong, announced that 400 main cities out of 660 have already had to cope with such shortages.  Development thus risks being seriously compromised: the situation is expected to worsen through to the middle of the century when the population will peak at 1.6 billion.

Japan

This country currently has crude oil reserves that can supplement energy shortages for about six-months.  Nevertheless the government is concerned by the energy emergency that is threatening the rest of the continent.  Japan has been calling Aisan countries to form an entity, similar to the IEA, tasked with monitoring markets and proposing solutions to increase energy security.  Without such cooperation, the area risks unrestrained competition in the rush to buy energy in case of emergencies.  This would provoke serious tensions between the main Asian powers, including China and Japan.  The Japanese proposal, however, had yet to garner support in the region.

Thailand

Here as well,  the energy emergency has required immediate measures.  This week, in fact, the Thai government put into place the following precautions: signs are to be turned off after 10 p.m.; street lights are to be removed in certain areas;  petroleum industries are to be closed at  night.  Deputy Minister for Energy, Vist Jupibal, said that the main petroleum enterprises, PTT and Bangchak, both state-run, will run a national campaign to close their various plants at night.

India

India's new government has plans to tackle energy shortage with a project that, it was announced, will be carried out by the end of 2007.  In January, the former government had approved a plan to build three large deposits with a 14-day reserve capacity.

Vietnam

The National Department for Hydro Studies revealed that last year's drop in precipitation is creating considerable difficulties for hydro-electric plants which are on the verge of exhausting their reserves.

The Haiphong Electricity Department has taken measures to cope with energy shortages in the summer months.  In addition to an information campaign on saving energy, the department has design a project to make energy networks more efficient and to give incentives for the installation of meters that calculate different prices according to the time of day.

Recently, the first and largest privately-run energy plant was opened in Vietnam.  Located in the Phu My Power Industrial Park of Ba Ria-Vung Tau, this plant produces 716 MW; by an agreement for 23 years with the Ministry of Industry, it will sell energy to EVN (Electricity of Vietnam).

Philippines

The President of the National Petroleum Company, Thelmo Cunan, announced that energy blackouts will no longer be a problem in the West Negros region thanks to the installation (as of 2005, for operation in 2006) of a plant that will guarantee the region energy self-sufficiency.  "Let's hope that, in the future, this new reality can ," Cunan said, "be a model for not only the Visayas region but for the whole country."

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