Report: Shanghai power cuts won’t affect foreign firms

Expanded measures being introduced by the Shanghai government to lower power consumption during peak hours this summer won’t affect most foreign-invested companies, the official China Daily newspaper reported on Tuesday.

China has faced a shortage of power this summer as soaring summer temperatures strain the country’s power grid, prompting officials to seek out measures to reduce power consumption in major cities, including Beijing and Shanghai. In Shanghai alone, the city faces a shortfall of 2 gigawatts to 2.6 gigawatts this summer, the China Daily said.

To help bridge this gap, the Shanghai municipal government has ordered lighting used to illuminate city landmarks to be shut off during peak times, the China Daily said. In addition, the government plans to ask 700 enterprises to shift their hours of operation to between 12:00 a.m. and 8:00 a.m., a move that is expected to reduce power consumption by 500 megawatts during peak hours, it said.

The Shanghai government had earlier asked 500 local companies to shift their operating hours to the early morning to reduce power consumption during peak hours, it said.

The report described the affected companies as heavy energy consumers in industries such as steel refining, cement and iron alloy manufacturing. Apart from a few exceptions, foreign-invested companies in Shanghai will not be affected by the measure, it said. The report did not state exactly how many foreign-invested companies would be affected.

In addition to these measures, the Shanghai government has also asked some local companies to halt production on a weekly basis and has ordered a stop to construction at non-essential building sites and infrastructure projects when temperatures exceed 35C (95F), the China Daily said.

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