Electricity consumption in China as a indicator of economic growth
The China Electricity Council has recently released data showing that, in 2023, the total electricity consumption in the country is projected to reach 9.22 trillion kilowatt-hours, marking a year-on-year increase of 6.7%. This growth rate is 3.1 percentage points higher than in 2022, indicating a rebound in national electricity consumption and a positive signal for economic recovery.
The data reveals not only a stable and improving trend in electricity consumption, but also a steady development in the country’s economy, full of confidence and potential.
Rural revitalization is one of the driving forces for this growth, with electricity consumption in the primary industry expected to increase by 11.5% year-on-year in 2023, reflecting a robust agricultural and rural production situation. Additionally, the manufacturing industry is also seeing an acceleration in transformation and upgrading, as the electricity consumption of the secondary industry is projected to increase by 6.5% year-on-year, with a growing trend quarter by quarter.
Furthermore, the service industry has shown steady recovery, with an anticipated increase of 12.2% year-on-year in electricity consumption. New energy vehicles are also contributing to this growth, as the rapid development of the industry is driving the electricity consumption of the charging and swapping service industry to increase by 78.1% year-on-year in 2023.
In terms of regional development, the eastern and western regions stand out with relatively leading growth rates in electricity consumption, reflecting a good economic development momentum. The eastern region’s industry, in particular, has experienced rapid recovery and strong resilience, with significant contributions to the growth of electricity consumption.
Looking into the future, it is expected that electricity consumption will continue to grow, driven by steady growth in the country’s macro-economy and the improvement of electrification levels in various sectors. The China Electricity Council predicts that the electricity consumption of the whole country will increase by about 6% in 2024 compared with 2023, posing a pressure to ensure a tight balance in national electricity supply and demand.
In light of this, power companies must ensure the safety and stability of large power grids, while government departments should do a good job in primary energy tracking and monitoring, load early warning, and disaster emergency response mechanisms to safeguard the bottom line of power consumption for people’s livelihood.
In conclusion, the electricity consumption data not only serves as an indicator of economic growth, but also highlights the need for a comprehensive and coordinated approach to ensure a stable and balanced electricity supply to support the country’s economic and social development.
By Wang Yichen