Chinese power companies have started using diesel generators

China energy giant Sinopec Group on Tuesday released a statement on its website that the eastern part of Zhejiang province Chinese many power enterprises in the local government began a limited supply of electrical energy began using diesel as fuel generator. With 80% of China's electricity using coal as a power generating resource, rising coal has substantially weakened the profit margins of power generation companies.

According to Xinhua News Agency reported that many coal power plant Gansu, Hubei, Hunan, Shanxi and Shaanxi provinces had to close because of shrinking profit margins, which resulted in these areas have the most serious power shortage since 2004. "With some of the power companies to use diesel generators, we are experiencing a hitherto unknown demand for diesel," Chinese Oil Corporation Senior Engineer Gong Jinshuang (sound) said, "although the current situation is not to need to increase the time ordered imports of diesel, but the national oil companies have already started to do this are considered."