"Limitation order", upstream cosmetics companies have been affected

On May 10, the Guangzhou Municipal Ministry of Industry and Information Technology approved and announced the "Guangzhou City Orderly Power Consumption Plan in 2021", which clarified the policy considerations of the Guangzhou Municipal Ministry of Industry and Information Technology for implementing the "Power Limitation Order":

Under normal circumstances, in 2021, there will be no network restrictions on the Guangzhou power grid. However, considering that the overall power supply in the province will be tight in 2021, the power supply and demand situation in the province will be severe during the alternate dry and flood seasons and the peak summer season, and there will be a greater risk of peak-shifting and curtailment. , Affected by this, the Guangzhou power grid may also experience tight or even shortage of power supply.

The main measures of the "Power Limitation Order" are carefully stipulated in the plan, including: the release of peak staggered warning information, the orderly classification of electricity consumption in the city, the guarantee of electricity consumption for key projects and key enterprises in the city, etc., and, this time The "Power Limitation Order" is valid for 1 year.

Not long after the implementation of the "Power Ratio Order" in Guangzhou, the power rationing policy spread to many regions in eastern Guangdong, including Foshan, Dongguan, Huizhou, Zhuhai, Zhongshan, and Chaozhou, and companies were required to use electricity at off-peak times!

A practitioner in the plastics industry said: "Power cuts are very painful for factories. In retrospect, the last power cut in Guangdong Province was in 2007."

01

The power consumption load is rising steadily, and various factors have contributed to the power cut

Guangdong is located in the subtropical zone, and the temperature in summer and autumn is high, and the electricity consumption of residents will be relatively high. In addition, China took the lead in breaking free from the haze of the new crown epidemic to achieve positive economic growth. As a major manufacturing province, Guangdong's demand for electricity is also rising steadily.

According to the China Electricity Council, from January to April, the electricity consumption of the whole society in Guangdong Province increased by 29.2% year-on-year, 10 percentage points higher than the national average growth rate. According to the market information disclosure forecast data of the Guangdong Electricity Exchange Center, on May 24, the maximum power load was predicted to be 121 million kilowatts. Last year, the maximum power load was only 127 million kilowatts, but this is not yet the hottest time in Guangdong.

On May 10, the daily power generation of Guangdong Company of China Energy Group reached 136 million kWh, and all the units in operation were started to operate, with an average load rate of 88%. The daily power generation reached a new high since the organizational restructuring. From January to April, the year-on-year growth rate of thermal power generation in Guangdong Province was as high as 50.9%, leading other power-consuming provinces.

Although thermal power is operating at a high load and fully fired, it still cannot meet the people's growing demand for electricity because of minor problems with hydropower and the "West to East Power Transmission".

The flood season of the "Four Rivers" basin in Guangdong Province is in summer, and the peak of hydropower generation is also in summer. May is the alternating period between dry season and flood season, and the hydropower generation capacity is limited. To make matters worse, since the spring of this year, most areas along the Tropic of Cancer in my country have experienced a rare drought that lasted for several months. The areas involved include Guangdong, Guangxi, Yunnan and southern Taiwan. The drought in some areas has even turned into a drought.

Guangdong Province relied on the "West-to-East Power Transmission" project in previous years. This year, due to the reduction of Yunnan's own hydropower production and the high-energy-consuming projects such as electrolytic aluminum and chemical industry launched in recent years, the amount of electricity sent from west to east to Guangdong has dropped significantly. Judging from the information disclosed by the Guangdong Power Trading Center, the electricity transmission from west to east in the first half of May decreased by about 15% compared with the same period in 2019.

The demand for electricity has risen sharply, the hydropower in the province is weak, and the power of Yunnan's "West-to-East Power Transmission" has decreased, coupled with the rise in domestic thermal coal prices. Under the premise of electricity consumption, key projects and key enterprises, the scale of industrial electricity consumption is limited, and the load on the power grid in the province is reduced. The power restriction measures introduced by various places have also affected the cosmetics industry.

02

Cosmetics manufacturers are affected

Production capacity and delivery of goods are affected

Liang Qiquan, general manager of Guangzhou Shanggong Plastic Co., Ltd., said in an interview: As far as the packaging materials for cosmetics are concerned, whether it is a pump head production plant, a bottle blowing plant, a vacuum bottle manufacturing plant, an injection molding plant or a hose factory, etc., this time Power cuts have a great impact on packaging material companies.

In fact, the electricity restriction measures of staggered peak power consumption and shutdown of production have affected the entire upstream cosmetics processing plant.

Half of the more than 4,000 cosmetics factories in the country are concentrated in Guangzhou and its surrounding areas. This power cut has a great impact on the production activities of OEM/ODM factories. Several factories said that customers are advised to stock up in advance because of off-peak electricity consumption.

Take Baiyun District, where cosmetics ODM/OEM factories are relatively concentrated, as an example. When implementing the "Power Limitation Order" in Guangzhou, the Baiyun District Power Supply Bureau will classify industrial enterprises according to the scale of their output value in the previous year, namely: C-type enterprises, B-type enterprises Class enterprises, Class A enterprises, and premium insurance enterprises will implement peak staggering in the same order and in accordance with this order. The four types of enterprises have different power cut dates, so as to ensure staggered periods of concentrated power consumption and reduce the overall power load.

When the Baiyun District Power Supply Bureau implements the power reduction policy, it will predict the peak power consumption according to the peak power consumption and weather factors in a certain period, and select and notify the power reduction enterprises for the next day.

At present, the "power rationing order" has had a certain impact on the production activities of enterprises. For example, scheduling shifts at night will more or less increase labor costs. At present, there have been cases where factories' offices are not open to make room for power consumption in workshops. Some enterprises told reporters that the impact of power cuts on enterprises is not particularly large at present, and only a small number of customers have an impact on the delivery of goods. have a great impact on production activities.

In response to the duration of the "power limit order", the power supply office replied that this is the first time in 10 years that it has encountered such an overloaded power consumption situation. Hydropower resources have a lot to do with coal power generation.

I hope the "Power Limitation Order" will pass as soon as possible!