Can China Keep the Lights On? (BusinessWeek)

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http://www.businessweek.com/globalbiz/content/jun2008/gb2008069_203821.htm?chan=top+news_top+news+index_global+business

For three days in an average week, factories in Foshan's Shunde district have to work to keep their own lights on. As power cuts take effect in this small part of Guangdong province, home to Chinese home appliance manufacturers like Midea, Galanz and Kelon, diesel-powered generators hum to life to keep production going.

"It's impossible for any factory, if they rely on public utilities," said a Shunde factory operator, who asked that both his name and industry be withheld. "They cannot survive."

He spoke enviously of Dongguan, an industrial base to the northeast. "They only have a day or two of blackouts in a week."

In fact, Shunde's power proved so problematic that the factory operator applied to his local government to build a small coal-fired cogeneration plant to provide electricity and steam for his factory. Now he has more than enough power—and at a discount of around 40% on public utility prices.

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