The record low water levels in the Yangtze River are not only affecting the lives of residents but also impacting the entire Chinese economy.
For the past decade, nearly every day, 62-year-old Wan Jinjun, who lives in Wuhan, has gone to the Yangtze River to bathe. He stated that he has never seen a drought as severe as this one.
The longest river in Asia is facing an unusually harsh summer. Just a year ago, where Mr. Wan usually bathed, the water was high up to the riverbank. Now, the water level is at its lowest for this time of year since records began in 1865, exposing sand, rocks, mud, and the foul smell of dead fish.
“The water is still going down,” Mr. Wan told Bloomberg. He mentioned that last week he had to walk 100 steps into the riverbed just to submerge himself in the water to cool off in the 40-degree Celsius heat.
Not only does this affect Mr. Wan’s daily enjoyment, but the low water levels in rivers are also causing severe consequences for China’s economy, as hydropower remains a crucial energy source for the world’s most populous nation.
Energy Shortages
The depletion of the Yangtze River threatens the production of many important hydropower plants, causing energy shortages in various regions across the country. Major cities have had to turn off lights, halt escalators, and reduce air conditioning use despite the heat.
Electric vehicle manufacturer Tesla has warned of potential supply chain disruptions for its factory in Shanghai, while Toyota and CATL – the world’s leading electric vehicle battery manufacturer – have had to temporarily shut down their plants.
A section of the Han River near its confluence with the Yangtze River in Wuhan is dry. (Photo: Bloomberg).
With climate change likely to continue causing heatwaves and droughts in the future, this incident raises long-term questions about China’s reliance on hydropower.
China is the largest investor in solar and wind energy. However, hydropower remains the most significant renewable energy source, with a total output of 1.3 million GWh, accounting for 18% of China’s total electricity generation in 2020, according to strategic research firm BloombergNEF.
Although the current energy shortage is not as severe as in 2021 – when a coal supply shortage for thermal power plants forced China to cut electricity consumption nationwide – it still presents additional challenges for officials who are already grappling with Covid-19 and a real estate crisis.
This also affects the credibility of Chinese officials, who previously committed to preventing energy shortages from occurring.
Sichuan Province, which is facing the largest drought since the 1960s, is the most heavily impacted due to its significant reliance on hydropower. As electricity generation capacity has been cut in half, the heatwave has increased electricity demand from residents and businesses by up to 25%, adding further pressure to the system.
The situation in Sichuan shows that despite being considered the most stable renewable energy source, hydropower is still less reliable than coal power, according to analyst Hanyang Wei at BloombergNEF.
Moreover, it highlights the challenges China faces if it wants to reduce its dependence on fossil fuels, as solar and wind power are even less stable.
A water level marker at the Han River in Wuhan on August 22. (Photo: Bloomberg).
After the crisis in 2021, China began considering building more coal-fired power plants. Under government pressure, coal mines have increased production by up to 11% this year.
Li Shou, an analyst at Greenpeace, remarked that the situation in Sichuan recalls the power shortages in Hunan Province at the end of 2020.
At that time, freezing weather affected wind power plants, while electricity demand for heating surged. The Chinese government had to approve the construction of additional coal-fired power plants in that province.
“I hope they won’t build more coal-fired power plants. However, I fear this is what they are heading towards,” Li said.
Factory Closures
The electricity shortage has led to numerous factories in Sichuan being cut off from power until August 25. Many companies, including Toyota and CATL, have had to close their facilities in the region. Polysilicon material manufacturer Tongwei reported that their factory was also affected, resulting in a decrease in the supply of products necessary for solar panel production.
The impact of the electricity shortage also extends beyond Sichuan. The Shanghai Bund has turned off decorative lights, while the city of Wuhan has halted light shows along the Yangtze River.
Although Sichuan contributes only about 5% of China’s GDP, the electricity shortage poses risks to the world’s second-largest economy. Economists have lowered their growth forecasts for China this year to below 4%, less than the government’s target of 5.5%.
An escalator at a shopping center in Shanghai is out of service on August 22. (Photo: Bloomberg).
China is not alone in the battle against the intense heat and drought this summer. High temperatures in Europe have contributed to record low water levels in the Rhine River. In some areas, the water level has dropped to just 30 cm. Meanwhile, drought has caused a 13% reduction in rice-growing areas in India this year.
In Wuhan, temperatures have frequently exceeded 40 degrees Celsius recently. Luo Yi, a 26-year-old employee at a ferry terminal on the Yangtze River, stated that his company had to move the floating ferry dock closer to shore to allow more room for boats to navigate.
“This is the hottest summer I can remember,” he said while seeking a cool spot in the shade.
At the luxury Heartland 66 shopping center in Wuhan, residents had to walk on non-operational escalators. Air conditioning was set to energy-saving mode, making the food court stuffy.
In the short term, the situation is expected to improve. The capital Chengdu of Sichuan Province will see rain again starting August 25. However, in the long term, both China and the world will face more challenges from extreme weather events.
In Wuhan, the heat has not deterred Mr. Wan and many others from going swimming. Nevertheless, 65-year-old Jiang Guangming, who has been rowing on the river since he was a child, expressed his sadness at the sight of the river’s water level.
“In previous years, the river water reached the road,” he said. “This year, even the sand at the riverbed is exposed.”
