State Grid warns of widespread power cuts

State Grid, the larger of China's two power grid operators, said on Thursday that extreme winter weather conditions may necessitate power cuts and energy rationing in parts of Hunan, Hubei, Henan, Jiangxi, Chongqing and Sichuan, the Financial Times reported. A spike in demand coupled with disruption of coal supplies and low  hydropower output may force electricity disruptions to steel mills and aluminum smelters in Hubei, Hunan and Henan provinces. The coal shortage during the recent cold snap has been additionally complicated by a previous initiative in coal-rich Shanxi province to consolidate small coal mines, reducing overall supplies. Hu Zhaoguang, a State Grid official, said that the power cuts would a "a short-term, temporary issue."

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