Sichuan Rations Electricity for Factories as Drought Curbs Supply

Southwestern China’s Sichuan province started rationing electricity for industrial plants as extreme weather threatens the power supply, affecting a number of leading makers of solar power equipment.

A large-scale production halt was scheduled for Aug. 15–20 due to power shortages, according to filings of several Sichuan-based companies.

Sichuan relies heavily on hydropower, a cheaper source of electricity that has made the province attractive for producers of photovoltaic silicon. But high temperatures and drought this summer have curbed hydropower generation and worsened an electricity crunch.