Power usage upturn underscores dynamic economic rebound

China's economy is demonstrating a powerful recovery, with daily power usage recently reaching a record high 1.5 billion kilowatt-hours, which industry experts believe is a clear testament to the vitality and resilience of the world's second-largest economy.

This significant upturn underscores a vigorous and dynamic economic rebound, demonstrating a broad-based revitalization now clearly evident across the industrial, commercial and residential sectors, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

On July 16, the National Energy Administration said that China's maximum power load once again set a new historical record, surpassing 1.5 billion kW for the first time and reaching a peak of 1.506 billion kW.

This represents an increase of 55 million kW compared to last year's peak load, it said, adding that it also marks the third time a historical record has been broken this month, following recent highs set on July 4(1.465 billion kW) and July 7 (1.467 billion kW).

A power load of 1.5 billion kW is equivalent to 15 billion 100-watt light bulbs being lit simultaneously.

Industry experts said the record suggests that underlying demand is robust, and production capacities are being fully utilized, painting a very positive picture of the near-term growth trajectory.

"This record daily power consumption figure of 1.5 billion kWh is arguably one of the most compelling real-time indicators of China's economic resurgence," said Lin.

"Electricity usage directly reflects activity in factories, commercial establishments, and households. This surge unequivocally confirms that the world's second-largest economy is not just recovering, but demonstrating significant vitality and resilience."

Peng Peng, secretary-general of the China New Energy Investment and Financing Alliance, an industry group, said the widespread and sustained high temperatures experienced across the country this summer also fueled a significant surge in demand.

The escalating electricity usage figure directly reflects China's accelerating economic engine. According to data released by the NEA, power consumed by the primary industry gained 4.9 percent in June year-on-year, while the secondary industry's consumption rose by 3.2 percent.

Factories and infrastructure projects are operating at increased capacities, driving demand, it said.

Services sector is also rebounding, with tertiary power use climbing 9 percent in June. Household consumption increased 10.8 percent to 129.1 billion kWh, it said.

The NEA affirmed that the nation's overall power supply remains stable, a capability stemming from decades of strategic planning and investment.

At the heart of this success is China's diversified energy structure. The nation leverages coal, hydropower, and a rapidly expanding portfolio of clean energy sources like nuclear, wind, and solar power, a multipronged approach that ensures a resilient supply chain.

China's advanced power grid technology also ensures seamless supply. According to the China Electricity Council, the nation has significantly upgraded its grid infrastructure and capacity in recent years, with interprovincial transmission capability now exceeding 300 million kW.

Accelerating the creation of a unified national power market is also expected to further enhance the efficient distribution of power resources across the country, said Yang Kun, the council's executive vice-chairman.

China has also fully leveraged the resource allocation capabilities of its massive ultrahigh voltage power grid to significantly increase interregional and interprovincial power transmission, with the maximum power transmitted by State Grid Corp of China having already surpassed 225 million kW.

"The record electricity consumption indicates China's economic vitality and effective energy strategy," said Lin.

"It demonstrates our capacity to fuel rapid growth and ensure energy security through a resilient, technologically advanced power system."

China's experience in managing soaring energy demand while maintaining stability offers valuable insights. Its ability to sustain robust economic growth, underpinned by secure energy, showcases a model of strategic foresight and operational excellence in energy governance, he said.