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A general view shows the Wujing Coal-Electricity Power Station in Shanghai on September 28, 2021.
Hector Retamal | AFP | Getty Images

BEIJING — Local Chinese authorities have abruptly ordered power cuts at many factories in the last week, reflecting a system trying to react to a number of directives from Beijing, and macroeconomic developments.

While a few economists have cut their forecasts on China’s GDP growth as a result, others are still waiting to see the scale of the impact.

Here’s a broad overview on how the power crunch developed:

Coal supply drops, prices surge

Back in late 2020, China stopped buying coal from Australia, once the Asian giant’s largest source of imported coal. Political tensions between the two countries have escalated after Australia supported an investigation into how Beijing handled the coronavirus pandemic.

Meanwhile, historically cold weather that winter drove up demand for coal. Some cities reportedly restricted electricity use in homes and factories.

Alongside a global surge in commodity prices, thermal coal, the primary fuel for electricity production, saw prices soar by more than 40% over 12 months to around 777 yuan per metric ton ($119.53) in December 2020 on the Zhengzhou Commodity Exchange, according to data from Wind Information.

As spring approached, central government authorities announced five-year targets for the country to achieve its publicly declared goal of reaching peak carbon emissions by 2030. China aims in the next five years to boost the share of non-fossil fuels to about 20% of energy consumption, up from about 15% currently.

Renewable energy falls off

But as China tried to shift to renewable energy, a severe drought hit the hydropower center of Yunnan province. Water-generated power declined year-on-year in July and August by more than 4% each month, according to the National Development and Reform Commission.

Wind-generated power has also slowed its growth, rising 7% in August from a year ago, down from 25.4% growth in July, the commission said.

Analysts have also said China’s climate goals in the latest five-year plan are more moderate than expected. Climate Action Tracker, an international non-profit that reviews countries’ efforts to meet Paris Agreement goals, rated China’s policies and actions as “insufficient” in a report released Sept. 15.

The bulk of electricity in China is still generated by coal. Year-on-year growth in electricity use has surged to its highest in a decade, according to data accessed through Wind.

Power rationing begins

In addition to extreme temperatures, factories are demanding more electricity as they rush to fill global orders for Chinese goods. Exports have surged by double digits amid the pandemic.

“Demand for power has risen with China’s economic recovery,” Eurasia Group analysts wrote in May. They noted that “several industrial hubs along China’s eastern coast, including Guangdong, Zhejiang, Jiangsu, and Shandong, have warned about potential temporary power supply shortages during the summer peak season.”

In June, state-backed Securities Times reported of some power restrictions in parts of the export hub of Guangdong.

Meanwhile, coal supply was falling as mines shut down in a national effort to reduce carbon emissions. The coal inventory of major power plants reached a ten-year low in August, according to Wind data.

But in mid-August, China’s economic planning agency announced that 20 regions — accounting for about 70% of China’s GDP per Nomura — failed to meet carbon-related targets, prompting local authorities to take action.

Some authorities cut electricity overnight

Some of the latest moves were quite abrupt. For example, on Sept. 23, management of a high-tech business area in Hunan province ordered power restrictions, effective immediately, according to a copy seen by CNBC. The curbs are set to last through Thursday, the day before China’s National Day holiday that runs Oct. 1 to 7.

On Sunday, state-backed Securities Times reported of major power cuts for factories in Guangdong’s manufacturing hub of Dongguang city for the same week. The report also noted sudden power outages in many parts of northeast China, including residential areas in Liaoning province.

“The power outage means products cannot be delivered on time,” said Wen Biao, general manager at Qianhe Technology Logistics Co. in Shenzhen, Guangdong province. He said the situation is the same in Shanghai and the port city of Ningbo.

The drop in production has cut demand for shipping overseas, and prices for shipping to the U.S. West Coast have dropped to $9,000 per container, down from $15,000, he said, noting the declines began Sept. 24.

In all, Reuters reported that more than 10 provinces and regions have restricted power use.

For context, Guangdong province accounts for about 23% of China’s exports by value, while Liaoning accounts for 1.6%, according to official data for January to August.

The abrupt power cuts have also given foreign businesses pause on whether to invest more in China-based supply chains. Some businesses that had planned investments of tens of millions of U.S. dollars in China are now looking at Southeast Asia instead, said Johan Annell, partner at consulting firm Asia Perspective.

This week, China’s State Grid and National Development and Reform Commission pledged to ensure power, especially for residents, and said they would take measures such as allowing greater production of coal and increasing coal imports.

The commission said power demand this winter could exceed the peak levels of this past summer and winter.

Thermal coal prices have nearly doubled this year, and traded just over 1% lower around 1,319.80 yuan per metric ton as of midday Thursday.

Economic impact

The shock to many Chinese factories comes as investors worry about fallout in the massive real estate sector as indebted property giant Evergrande warns of default. Together with related industries like construction, real estate accounts for about a quarter of China’s GDP, according to Moody’s.

After the industry’s roughly two decades of rapid, debt-fueled expansion, regulators have stepped in with tighter rules on how much developers can borrow.

When it comes to the economic impact, Dan Wang, Shanghai-based chief economist at Hang Seng China, said she would “focus more on the restrictive policies in the property market.”

She attributed the power curbs mostly to an inability of authorities to adjust the electricity price, which is largely set by the state. Wang said factories’ rush to fill global demand has also created overcapacity.

“The impact from the power restriction is equivalent to a natural disaster,” she said.

Some economists expect a more severe impact. Among major investment banks, Nomura cut its China GDP forecast on Friday, followed by Goldman Sachs on Tuesday.

“The power cuts by themselves may not be significant enough, but combined with the property sector slowdown and regional Covid outbreaks, they do make me worry more about GDP growth in Q4,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management. “I have lowered my forecast for Q4 to around 4% from 5%, with risk on the downside.”

Economists at other financial institutions have mostly held off on forecast cuts and are waiting to see how significant the drop in production is.

Also weighing on growth is a crackdown on major internet technology companies for alleged monopolistic practices. A sudden order in July that after-school tutoring companies restructure as non-profits has put hundreds of thousands of jobs — and incomes — in question.

Consumer spending, a major driver of Chinese economic growth, has also been sluggish since the pandemic as Covid-related restrictions have kept many people from traveling and eating out.

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The ticket bot cometh: cities are ticketing drivers that AI says are bad [update]

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The ticket bot cometh: cities are ticketing drivers that AI says are bad [update]

In a high-tech move that we can all get behind and isn’t dystopian at all, the City of Barcelona is feeding camera data from its city buses into an advanced AI, but they swear they’re not using the footage to to issue tickets to bad drivers. Yet.

UPDATE 06DEC2025: the ticket bot cometh to Chicago.

Last month, the Chicago Transit Authority (CTA) contracted with Hayden AI to equip six of its transit buses with AI-powered license plate readers intended to target illegally parked vehicles in an area bound by North Avenue, Roosevelt Road, Lake Michigan and Ashland Avenue.

As with similar pilots in Barcelona and NYC, the Hayden AI technology captures information from vehicles illegally blocking bus and bike lanes, then submits its “findings” to a human reviewer for confirmation. If the reviewer agrees with the AI, they can issue a fine of $90 for parking in a bus lane, $250 for bike lane obstruction, $50 for parking in expired meters outside of the central business district, and $140 for personal vehicles parked in commercial loading zones.

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Despite those hefty fines, Chicago Mayor Brandon Johnson is quick to point out that the goal of the program isn’t to generate revenue.

“Every Chicagoan deserves a transportation system that is safe, reliable, and efficient,” said Mayor Johnson, in a statement. “By keeping bus and bike lanes clear of illegally parked vehicles, the Smart Streets pilot helps us protect our most vulnerable road users while improving the daily commute for riders across the city.”

The official release makes no mention of the fact that Hayden AI’s system generated nearly $21 million in revenue for the city in just a few months, despite the fact that thousands of those ticketed weren’t doing anything wrong.

We wrote about some of these issues back in Jun. You can read that original article, below, and let us know what you think of Chicago’s “non-revenue” claims in the comments.


Barcelona launches automated bus lane and bus stop enforcement pilot with Hayden AI
Barcelona ticketing AI; via Hayden AI.

Barcelona and its Ring Roads Low Emission Zone have earned lots of fans by limiting ICE traffic in the city’s core. The city’s latest idea to promote mass transit is the deployment of an artificial intelligence system developed by Hayden AI for automatic enforcement of reserved lanes and stops to improve bus circulation – but while it seems to be working as intended, it’s raising entirely different questions.

“Bus lanes are designed to help deliver reliable, fast, and convenient public transport service. But private vehicles illegally using bus lanes make this impossible,” explains Laia Bonet, First Deputy Mayor, Area for Urban Planning, Ecological Transition, Urban Services and Housing at the Ajuntament de Barcelona. “We are excited to partner with Hayden AI to learn where these problems occur and how they are impacting our public transport service.”

Currently operating as a pilot program on the city’s H12 and D20 bus lines, the system uses cameras installed on the city’s electric buses to detect vehicles that commit static violations in the bus lanes and stops (read: stopping or parking where you shouldn’t). The Hayden AI system then analyses that data and provides statistical information on what it captures while the bus is driving along on its daily route.

Hayden AI says that, while it photographs and records video sequences and collects contextual information of the violation, its cameras do not record license plates or people and no penalties are being issued to drivers or owners of the vehicles.

So far so good, right? But it’s what happens once the six mont pilot is over that seems like it should be setting off alarm bells.

Big Brother Bus is watching


“You are being recorded” sign in a bus; via Barcelona City Council.

The footage is manually reviewed by a Transports Metropolitans de Barcelona (TMB) officer, who reportedly reviewed some 2,500 violations identified by AI in May alone. But, while the system isn’t being used to issue violations during the pilot program, it easily could.

And, in fact, it already has … and the AI f@#ked up royally.

AI writes thousands of bad tickets


NYC issued hundreds of thousands of tickets; via NBC.

When AI was given the ability to issue citations in New York City earlier this year, it wrote more than 290,000 tickets (that’s right: two-hundred and ninety thousand) in just three months, generating nearly $21 million in revenue for the city. The was just one problem: thousands of those drivers weren’t doing anything wrong.

What’s more, the fines generated by the AI powered cameras were supposed to be approved only after being verified by a human, but either that didn’t happen, or it did happen and the human operator in question wasn’t paying attention, or (maybe the worst possibility) the violations were mistakes or hallucinations, and the human checker couldn’t tell the difference.

In OpenAI’s tests of its newest o3 and o4-mini reasoning models, the company found the o3 model hallucinated 33% of the time during its PersonQA tests, in which the bot is asked questions about public figures. When asked short fact-based questions in the company’s SimpleQA tests, OpenAI said o3 hallucinated 51% of the time. The o4-mini model fared even worse: It hallucinated 41% of the time during the PersonQA test and 79% of the time in the SimpleQA test, though OpenAI said its worse performance was expected as it is a smaller model designed to be faster. OpenAI’s latest update to ChatGPT, GPT-4.5, hallucinates less than its o3 and o4-mini models. The company said when GPT-4.5 was released in February the model has a hallucination rate of 37.1% for its SimpleQA test.

FORBES

I don’t know about you guys, but if we had a local traffic cop that got it wrong 33% of the time (at best), I’d be surprised if they kept their job for very long. But AI? AI has a multibillion dollar hype train and armies of undereducated believers talking about singularities and building themselves blonde robots with boobs. And once the AI starts issuing tickets to the AI that’s driving your robotaxi, it can just call its buddy AI the bank to send over your money. No human necessary, at any point, and the economy keeps on humming.

But, like – I’m sure that’s fine. Embrace the future and all that … right?

SOURCES: Hayden AI, via Chicago Sun Times, Forbes, Motorpasión.


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Kubota, Kilter to partner on next-generation autonomous farm robot

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Kubota, Kilter to partner on next-generation autonomous farm robot

The Japanese agriculture equipment experts Kubota are partnering with Norwegian tech startup Kilter to co-develop, pilot, and promote the new Kilter AX-1 ultra high-precision weeding robot across Europe.

The collaboration will initially target Kubota’s vegetable growing customers in Germany and the Netherlands, specifically farmers growing spinach, salad lettuces, herbs, celeriac, and strawberries who hope to benefit of higher yields and crop quality while cutting the use of chemical pesticides to an absolute minimum.

To accomplish those goals, the Kilter AX-1 uses a patented tech package it calls “Single Drop Technology.” Single Drop Technology combines AI weed recognition and ~6 mm placement accuracy to deliver micro-doses directly to weeds, protecting the crop and minimizing the impact to the surrounding soil.

Getting that 6 mm droplet application wasn’t easy. “You can’t buy a field-ready droplet applicator off the shelf,” Anders Brevik, CEO of Kilter, told AgTechNavigator. “We had to design one that survives years of dust, vibration, temperature swings, and long operating days, while keeping droplet size, timing, and placement consistent. That takes deep agronomy knowledge, a lot of engineering, and thousands of hours of field testing.”

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Kilter says growers can reduce herbicide use by up to 95% by adopting the new AX-1, shifting selectivity from chemistry to smart application.

Kubota Europe’s Smart Farming Solutions Division, launched back in 2024, is working with the company’s European dealer network to train up sales staff and integrate the Kilter robot into Kubota’s broader farm solutions portfolio. There’s no word, yet, on pricing or if/when we’ll get the Kilter in North America.

Electrek’s Take


AX-1 robot; by Kilter, via AgTechNavigator.

Kubota has been bringing literal tons of electrified and autonomous ag solutions to shows like CES for the past few years, and they’ve made significant waves there. With partnerships that take the sustainability push beyond decarbonization and into the realms of de-chemicalizing (that’s a word) and pro-pollenatoring (another word), they’re making real steps towards a more sustainable future for agriculture.

SOURCES | IMAGES: Kilter, AgTechNavigator.


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The future of electric farming is taking shape at John Deere [video]

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The future of electric farming is taking shape at John Deere [video]

Energy independence and cost control are top of mind for farmers, and more companies are rolling out electric equipment that can be charged by solar, wind, or even on-farm biogas. With the debut of its latest next-generation electric tractor at Agritechnica last month, John Deere is signaling that it intends to lead that revolution.

John Deere says the E-Power electric tractor prototypes that it’s been quietly teasing since 2022 will be as quiet as a car, as easy to drive as a golf cart, and require minimal upkeep – and all while providing the same performance as the company’s beloved diesel tractors.

“Our goal with the E-Power tractor is to ensure it performs the same jobs as its diesel counterparts and works with the same implements, while unlocking incremental value,” explains Derek Muller, business manager for battery electric vehicle systems at John Deere. “Through our electric lineup, we’ll look to reduce operational and maintenance costs, deliver powerful and reliable performance, and intuitive operation.”

The latest electric John Deere tractor prototype, recently unveiled at Agritechnica, is equipped with a 100 hp drive motor and two, additional motors. One 130 continuous hp electric motor for the PTO, and a third for the hydraulic pump. They’ll draw power from up to five KREISEL li-ion battery packs, allowing customers significant pricing flexibility based on their ability to determine how much power and run time they need (and are willing to pay for) to get their jobs done.

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Electric John Deere tractor


130 hp electric tractor shown at Agritechnica; by John Deere.

The customization will go well beyond just battery size. Deere plans to offer customers a number of different tractor and equipment options, and keep costs competitive by basing them on a vehicle common architecture.

“John Deere aims to develop a single electric concept that customers can configure to their own needs,” writes Bob Karsten, at Future Farming. “Buyers will be able to choose the number of batteries (up to five, totalling 195 kWh), the axle type (narrow or wide track), and the cab (either an orchard cab or the familiar 5M cab). In essence, buyers select their preferred battery capacity. With the largest battery (195 kWh), the tractor can operate for eight hours. The target is to enable fast charging up to 80% in 30 minutes.”

Deere revealed one version of that upcoming electric tractor (above) at Agritechnica last week, but despite being an early prototype, it’s a fully functional piece that’s already seen duty with some of John Deere’s most trusted customers.

  • Daniel, an orchard customer from California, said his experience with the electric tractor led him to believe it could help ease training new operators, “I do think the tractor is much easier for drivers to understand it and to drive it. It would take less time to teach them [operators] how to use it.”
  • Tyler, a vineyard customer in California, believes that a new electric tractor could help his operation meet its sustainability goals, “When we look at our carbon footprint, greenhouse gas emissions, we want to try and reduce those as we run our equipment to farm our vineyards, we want to be conscious of the community at large.”

There’s no official word yet on when the new John Deere electric tractor platform will start reaching customers, but Big Green’s recent purchase of battery manufacturer KREISEL and its continued push into more global markets means that it can’t afford to take things slow.

You can check out a quick, virtual walkaround of John Deere’s E-Power electric tractor concept in this (admittedly older) video released around the ACT Expo, and expect more details and possible configurations at the upcoming CON/AGExpo conference in March.

John Deere E-Power configurations


SOURCE | IMAGES: John Deere.


If you’re considering going solar, it’s always a good idea to get quotes from a few installers. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them. 

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.

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