context: Zhejiang joins Jiangsu and Yunnan in imposing strict shutdown orders on energy-intensive industries to meet energy consumption targets. Zhejiang's mid-year energy consumption results were not terrible (receiving an 'orange' light, not as bad as a 'red' light), but the province still opted to take drastic measures to achieve current targets. This indicates that the Beijing's messages to reduce power consumption are getting through, and signal that other provinces, even ones that received 'orange light' warnings mid-year, may take similar actions.
In Zhejiang, Shaoxing’s municipal government announced on 22 Sep 2021 that high energy-consuming firms are to stop production until 30 September, affecting a total of 161 firms consisting of mainly textile printing and dyeing and chemical fibre producers. The notice was released under the nationwide energy consumption 'dual control' policy to mitigate power shortages in high-consuming areas. As one of the country’s largest textile printing and dyeing bases, production in the Keqiao area of Shaoxing accounts for one third of total national capacity. Affected firms are redirecting orders to unsuspended factories in other areas to prevent large-scale loss amid the busy business season, reported Sina. The production suspension could lead to a rise in raw material prices and processing fees.
According to the 2021 H1 regional energy consumption 'dual control' target completion barometer released by NDRC (National Development and Reform Commission) in August 2021, Zhejiang received a grade II warning for both energy consumption intensity reduction and total amount control, while Jiangsu received a grade I warning for both indicators. Earlier in May, Zhejiang province also issued policies requiring manufacturers to upgrade their production technologies and increase energy efficiency. NDRC again released a plan on enhancing energy consumption intensity and a total amount control mechanism on 11 September, specifying five-year basic targets and incentive targets for each province, which take into account provincial differences.