CHINA Southern Power Grid Co. reported record power demand in May, the government said Wednesday, the latest sign that China’s power market is already under pressure as weather forecasters predict a hotter-than-usual summer.

The power firm has increased its load to a record of 164 gigawatts in May, up 0.9 percent from the previous peak load and an increase of 25.5 percent year on year, the National Development & Reform Commission said.

It is the first time the peak load has reached a new high before the official start of the Northern Hemisphere summer June 21, when power demand surges as a result of air conditioner use.

China Southern Power is one of two State-owned power transmission firms covering Yunnan, Hainan, Guangxi, Guangdong and Guizhou, with the rest of the nation covered by State Grid Corp.

An unusually warm spring and forecasts of a hotter-than-usual summer are expected to boost electricity demand as households turn up their air-conditioning units or fans to keep cool.

Coal prices have soared as investors have bet on potential supply tightness due to strong demand from coal-fired power firms. Coal accounts for the majority of China’s power generation.

Some 60 percent of households in China have air conditioning, according to the International Energy Agency, which warned earlier in April that the rising use of cooling systems is the “most critical blind spot” in the energy debate. (SD-Agencies)