The Heron's Latest Catch
China drought underlines hydropower reliance risks
By: Emma Graham-Harrison
Date: 28-01-2008
BEIJING (Reuters) - A major drought has squeezed electricity output at big dams across southwest China, highlighting the risks of Beijing's massive hydropower expansion plans on coal and oil markets in a warmer, drier world. Ships are stranded, millions are short on drinking water, and power supplies to big consumers in several Chinese provinces have been cut back, industry officials and local media have said.
And while building more dams will help Beijing meet more of its electricity demand using resources within its own borders, it also risks short-term surges in consumption of oil, coal or natural gas to generate emergency power when rivers run low. . . Other countries like Pakistan and Vietnam that are heavily reliant on hydropower have been forced to step up imports of fuel oil or buy power from neighbours during dry spells, driving up costs for producers and unsettling regional oil markets.
And while building more dams will help Beijing meet more of its electricity demand using resources within its own borders, it also risks short-term surges in consumption of oil, coal or natural gas to generate emergency power when rivers run low. . . Other countries like Pakistan and Vietnam that are heavily reliant on hydropower have been forced to step up imports of fuel oil or buy power from neighbours during dry spells, driving up costs for producers and unsettling regional oil markets.
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