China’s power consumption up 3.6% YoY in 2022

The growth is slowed that the 10.3% recorded in 2021

China posted a power consumption growth of 3.6% year-on-year (YoY) in 2022 to 8,637 terawatt-hours, slower than the 10.3% in 2021 as COVID disruptions affected industrial activities.

In a report, CreditSights said the power consumption of the secondary industry, mainly manufacturing and construction, only expanded by 1.2% YoY from a 9.1% growth in the previous year.

It said the power consumption of cement, steel and nonferrous metals industries shrank by 5% to 15% YoY from January to November amidst a prolonged property downturn.

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“This was partially offset by strong power consumption for new energy vehicles (EVs) manufacturing as China continued to push for electrification of the auto sector under its green mandate. Power consumption by rural households was also resilient on the back of higher solar installation in rural areas,” it said.

Meanwhile, CreditSights expect the power consumption growth to recover to around 6% in 2023 due to the COVID reopening which came “earlier than expected” and the peaking of the “exit wave.”

In December 2022, power consumption rose 14% from November and was only 4% below the previous year. China’s economic activities are expected to continue to recover in the first half of 2023 which could boost power consumption.