Energy crunch under Shanghai’s heatwave send post-lockdown recovery into spasms in China’s commercial hub

Shanghai authorities switched off lights for two days along The Bund waterfront and the Lujiazui finance zone to save power

The two-month lockdown caused Shanghai’s economy to contract by 13.7 per cent in the second quarter, the worst slowdown in four decades

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People walk along The Bund promenade as decorative lights are switched off to save energy in Shanghai on Tuesday. Photo: AFP

Published: 7:30am, 25 Aug 2022Updated: 10:54am, 25 Aug 2022

The unprecedented heatwave in Shanghai has raised concerns about the possibility of a power crunch and disruption to construction work, hampering the city’s economic recovery from a two-month Covid-19 lockdown.

This summer, China’s biggest commercial city recorded at least seven days where the temperature rose above 40 degrees Celsius, the most since meteorological records started in 1872, according to the local meteorological station. Shanghai also logged its hottest day ever on July 13, when the mercury hit 40.9 degrees. Large parts of the country have been affected by a severe drought because of a record-breaking heatwave.

The inclement weather prompted local authorities to switch off lights along The Bund waterfront and the Lujiazui finance zone, where the Shanghai Stock Exchange and HSBC Tower are located, for two days through Tuesday. The authorities did not provide details, but it is widely believed the move was undertaken to conserve power to ensure supplies for industrial and household use.