China’s coal-derived electricity generation was able to set a second consecutive record in August due in part from hydropower production coming under pressure.  Hydropower production fell year-on-year by 11% in August due to low water inflow.  September figures are pending, but we expect to see similar results.  Of note to us today is that Three Gorges Power Station generation data for the entire third quarter has now been reported.  Hydropower production at this critical station in the third quarter fell year-on-year by 52%.  Other smaller stations have also reported year-on-year production declines in the third quarter ranging between 10 to 20%. 

Overall, we remain quite bullish for China’s coal-derived electricity generation prospects, and we continue to note that China’s total electricity output and coal-derived electricity generation each setting new records in July and August has not received widespread attention.