As the northern hemisphere enters deeper into summer, record-breaking high temperatures across Asia are challenging local power supplies, highlighting the necessity to ensure reliable electricity supply, accelerate green energy growth, and develop backup power, upgrade transmission systems, and reform electricity pricing.
Back in late April this year, some regions in the northern hemisphere began experiencing hot weather, and in recent weeks, many countries, including China, Malaysia, India, Pakistan, and Bangladesh, have been hit by scorching heatwaves, breaking temperature records repeatedly and issuing warnings about power outages. The surge in electricity demand has strained power grids, leading to frequent blackouts.
Since early June, Vietnam has been grappling with power shortages, with sudden power cuts occurring in some industrial parks, disrupting factory production. Vietnam's state power producer EVN warned due to low coal inventories, the country's thermal power plants faced a coal supply shortage of up to 1.3 million tonnes, which will impact electricity generation, especially in the first half of this year.
Although Vietnam's hydropower capacity has grown rapidly in recent years, with a 22% increase from 2018 to 2022, the current hot and dry weather has significantly reduced hydroelectric output compared to previous years. As the country enters the hottest season of the year, the soaring demand for air conditioning and low water levels in reservoirs have become a major concern for power companies.
Renewable energy already accounts for over half of China's power mix. However, to cope with the potential surge in electricity demand caused by high temperatures, authorities have requested standby status for backup coal and gas-fired power plants.
Officials from India's Ministry of Power revealed that the largest solar power-producing region in India, Rajasthan, has received government alerts to prepare for the technical challenges that may arise from increased renewable energy usage. Additionally, India is extending the lifespan of its coal-fired power plants to ensure an adequate reserve capacity to meet the rising demand.
Improving grid reliability, however, comes at a high cost and increased carbon emissions. Consulting firm Wood Mackenzie projected earlier this month that over the next decade, the Asia-Pacific region may spend at least $2 trillion on upgrading transmission and distribution systems.
Unlike stable power supply provided by coal and natural gas, solar and wind energy fluctuate with local weather conditions, making them unpredictable and challenging to control. It becomes difficult to scale renewable energy generation up or down in response to sudden spikes or drops in electricity demand.
If an appropriate pricing structure is not introduced to incentivize flexible thermal power generation, the growth of renewable energy may slow down. Grid regulators also need to establish a grid capable of adjusting voltage and frequency based on solar energy fluctuations, which poses a significant challenge.
(Writing by Alex Guo Editing by Emma Yang)
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