Causes of the Crisis
Coal-based producers account for more than 70% of China’s electricity generation. However, China’s supply couldn’t catch up and import from Australia was limited due to political disputes and sanctions which are unlikely to ease during Biden’s administration.
Xi’s push to reduce greenhouse gas emissions and go “carbon neutral” by 2060 has capped the growth of coal mining. Furthermore, Xi has implemented regulations for coal mine operations, limiting their ability to increase supplies
China tried to shift to renewables, but a serious draught hit the hydropower center of Yunnan province resulting in a 4% decrease in total renewable output each month. Wind power also slowed down in growth from 25.4% in 2020, to 7% in 2021.
Resulting Regulation and Impact