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China's reliance on coal-fired power generation increased during the first half of 2023 due to continued drought severely reduced hydroelectric power in the southern provinces. Total generation from all sources increased by +205 billion kilowatt-hours (kWh) in The first six months of-2023 compared with the same period in 2022 ("Output of energy products, National Bureau of Statistics, July 20"). The increase was +5.2%, which implies the government is probably on track to meet its declared target of around 5% for growth in gross domestic product this year. But hydro generation slumped by -132brk kWh (-23%) to its lowest level for eight years as the protracted drought hit reservoir levels. The two southwestern Provinces of Sichuan and Yunnan accounted for almost half (48%) of the country’s hydropower in 2020; adding the neighbouring areas of Guizhou and Guangxi takes the share to almost three-fifths (58%). But the region experienced much lower than average precipitation over the last 12 months, forcing sharp reductions in power production.

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