China's energy shortage is an opportunity for Russia

RUSSIA / FSU POLITICS - In Brief 17 Oct 2021 by Alex Teddy
Several Chinese provinces are rationing electricity due to a paucity of power. In late September 2021 China asked the Russian electricity company Inter RAO to supply more electricity.China is striving to go carbon neutral by 2060. This will change the energy market considerably. In the medium term it will lead to more Russian energy sales to Russia.The Chinese government has new targets to meet in cutting CO2 emissions and other greenhouse gases. Coal was vital to Chinese energy but coal burning is being scaled back. This is causing power outages. Some manufacturing industries need a lot of power: cement, metals and chemicals.China is facing an energy shortage for three reasons. World energy prices are surging due to the pandemic's ending. China is weaning itself off coal. Beijing has also imposed environmental standards leading to less power being generated. The world price of coal is up. Coal used to be the main fuel in China.China is producing more energy than before in some provinces. However, it is still insufficient to meet demand. Hydroelectric power is supposed to be China's energy solution but there are too few dams.Chinese unpreparedness for the new environmental rules is an opportunity for Russia. About 60% of Russian exports to China are oil and gas. China's moving towards renewable energy will increase these exports in the interim. China is trying to cut coal usage. Coal accounts for 67% of China's electricity. Gas fueled power stations are an alternative. Gas produces half the greenhouse gases that goal does. McKinsey says that China's demand for gas will increase 100% by 2035Russian exports by gas pipeline and LNG are doing well. In January 2021 Russian ...

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