Sunday, April 5, 2026

Power Consumption Surge Drives China’s Economic Growth

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China experienced a significant power consumption surge in July and August, reaching record highs. Industry insiders said the surge reflects both economic recovery and intense summer heatwaves. In July, the country’s electricity use surpassed 1 trillion kilowatt-hours. It climbed to nearly 1.02 trillion kilowatt-hours in August, a 5-percent year-on-year increase. This power consumption surge indicates growing energy demand across multiple sectors.

The summer heatwaves pushed households and the tertiary industry to use more electricity. At the same time, supportive government policies encouraged industrial production to expand steadily, said Jiang Debin from the China Electricity Council. Peak power loads climbed to record highs multiple times in July, signaling strong energy demand and contributing to the overall power consumption surge.

Secondary industry, which accounts for nearly 60 percent of total electricity use, continued its recovery. In August, this sector grew 5 percent year on year, slightly higher than July and above last year’s rate. Manufacturing experienced particularly strong growth. Electricity use rose 5.5 percent, driven by raw material industries such as steel, building materials, chemicals, and non-ferrous metals, further fueling the power consumption surge.

Emerging sectors also contributed to higher electricity demand. High-tech and equipment manufacturing increased electricity use by 9.1 percent, outpacing the sector average by 4.6 percentage points. Internet-related services expanded 28.8 percent from January to August, as mobile internet, big data, and cloud computing usage surged.

New energy vehicle production additionally drove higher electricity demand. Power use in this sector climbed 23 percent, while battery charging and swap services surged 44.1 percent year on year. Experts expect electricity use to grow faster in the second half of 2025, driven by heatwaves and a low comparative base from 2024. They forecast annual growth of 5 to 6 percent, sustaining the power consumption surge.

Looking ahead, China expects electricity demand to maintain growth during the 15th Five-Year Plan period. Emerging sectors such as computing infrastructure, new energy vehicles, and green hydrogen will drive this increase. Zhang Lin from the China Electricity Council said national consumption could exceed 13 trillion kilowatt-hours by 2030.

Overall, the power consumption surge highlights China’s resilient economic recovery. It also emphasizes the growing influence of new industries on national electricity demand.

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