What They Say

The government in Sichuan, China, said that it would ration power to industrial users for six days potentially causing problems for a number of companies in the display supply chain. The power cuts are the result of a worsening drought causing problems of soaring demand for power for air conditioners at the same time as low water levels for hydroelectric power. Water levels at hydropower reservoirs are down by as much as half this month, according to the Sichuan Provincial Department of Economics and Information Technology, AP said.

BOE is reported to have said that it will ‘make adjustments’ to the facilities to deal with rationing and did not anticipate “any major impact on its overall operating performance”.

What We Think

The drought issues are not limited to Sichuan and other provinces are having to take special measures. Given the significant issues related to global warming, it was great to see the US government putting in place a lot of plans and money to promote the development of greener energy this week. It’s good (and relatively rare) to welcome US legislation for me! (BR)