China’s power crunch is next shock after Evergrande

Energy issue: A man walks near a coal-fired power plant in Harbin, Heilongjiang province. The economy is at risk of a severe shortage of coal and gas used to heat homes and power factories this winter. — Reuters

BEIJING: China may be diving head first into a power supply shock that could hit Asia’s largest economy hard just as the Evergrande crisis sends shockwaves through its financial system.

The crackdown on power consumption is being driven by rising demand for electricity and surging coal and gas prices as well as strict targets from Beijing to cut emissions.