AI and EVs Become "Power Hogs": China's Residential Electricity Consumption Turns Negative for First Time in Nearly a Decade in First Three Quarters

Data released in October by China's National Energy Administration shows that from January to September this year, total electricity consumption across society reached 80,734 billion kWh, up 3.9% year on year. Of that, urban and rural residential electricity consumption was 12,346 billion kWh, down 0.3% year on year. Image source: STR/AFP/Getty Images

(German Wave Chinese website) Data released by China's National Energy Administration on Wednesday (October 21) shows that from January to September 2026, total electricity consumption across the country reached 80,734 billion kWh, up 3.9% year on year. Of that, urban and rural residential electricity consumption was 12,346 billion kWh, down 0.3% year on year.

Residential electricity growth turns negative for the first time in the first three quarters

Data released in October by China's National Energy Administration shows that from January to September 2026, total electricity consumption across the country reached 80,734 billion kWh, up 3.9% year on year. Of that, urban and rural residential electricity consumption was 12,346 billion kWh, down 0.3% year on year.

Yicai, reviewing official data, found that this is the first time in nearly a decade that the cumulative growth rate of urban and rural residential electricity consumption nationwide has turned from positive to negative during the January-to-September statistical period.

Further reading — Expanding clean energy: coal's share of China's power generation falls below half for the first time

Two consecutive monthly declines in August and September drag down the cumulative growth rate

Broken down by month, the decline in residential electricity use was concentrated in August and September. In August 2026, urban and rural residential electricity consumption nationwide was 188.3 billion kWh, down 4.0% year on year; in September it fell further to 121 billion kWh, down 6.0% year on year.

Before August, the cumulative growth rate of residential electricity use remained positive. From January to August 2026, urban and rural residential electricity consumption nationwide was 1,113.2 billion kWh, up 0.3% year on year. With consecutive year-on-year monthly declines in August and September, and the September decline widening further from August, the growth rate of total electricity consumption across society was dragged down, and the cumulative growth rate for the first three quarters ultimately turned negative.

Has China just ushered in a new nuclear future?

Residential electricity decline attributed to extreme weather; medium- to long-term growth expected to continue

Looking at data for the same period over the past three years, the growth rate of residential electricity use has changed markedly. From January to September 2024, urban and rural residential electricity consumption nationwide rose 12.6% year on year; in the same period of 2025 it rose 5.6%; in the same period of 2026 it fell 0.3%.

Yicai's analysis holds that, compared with the data for the first three quarters of the previous two years, the first cumulative negative growth for the same period in nearly a decade this year is due to factors such as extreme weather disruptions—for example, an increase in typhoons and heavy rain starting in August this year led to a marked reduction in air-conditioning electricity use.

The National Energy Administration's website also said that the decline in residential electricity use in September was mainly due to extreme weather such as Typhoon Shadel, which reduced cooling-related electricity demand in high-load regions such as central China, east China and southern China in early and mid-September.

Yicai further noted that in September, urban and rural residential electricity consumption in Shanghai, Zhejiang, Jiangsu, Hunan, Jiangxi, Hubei, Anhui and Fujian all posted double-digit year-on-year declines. Shanghai had the largest decline at 27.8%; Zhejiang and Jiangsu fell 22.6% and 22.1%, respectively.

Lin Boqiang, dean of the China Institute for Studies in Energy Policy at Xiamen University, told Yicai that residential electricity use is easily affected by climate factors. As living standards rise, growth in electricity demand is largely reflected in high-energy-consuming appliances such as air conditioners, and air-conditioning electricity use is highly dependent on temperature conditions.

However, Lin Boqiang believes this decline in residential electricity use is a short-term phenomenon. With the sharp increase in electric vehicle penetration, residential electricity use is still expected to maintain growth in the medium and long term.

Is China a "climate sinner"?

Industrial electricity use grows overall; high-tech manufacturing stands out

In contrast to the decline in residential electricity use, industrial electricity use continued to grow, though growth rates varied across sectors.

Wu Liqiang, assistant director of the Statistics and Digital Intelligence Department at the China Electricity Council, said the secondary and tertiary industries are the "main engines" of growth in total electricity consumption across society. Within manufacturing, the pattern of "new rising, old falling" continues, with high-tech and equipment manufacturing maintaining relatively rapid growth. Consumer goods manufacturing is one of the sectors, apart from high-tech and equipment manufacturing, that contributed relatively greatly to manufacturing electricity growth. High-tech and equipment manufacturing used 116.7 billion kWh in September, up 4.6% year on year. Looking at cumulative data for the first three quarters, from January to September this sector used 961.9 billion kWh, up 8.7% year on year.

Charging and battery-swapping and internet data services become "big electricity consumers"

Electricity use in the tertiary industry grew faster than in the secondary industry, and fields such as new energy vehicle charging and battery-swapping services and internet data services are becoming important sources of growth in China's electricity consumption.

Is Europe's dependence on China's solar industry about to end?

In August 2026, electricity use in the charging and battery-swapping service industry was 17.2 billion kWh, up 51.2% year on year; electricity use in internet data services was 10.2 billion kWh, up 37.9% year on year.

In September, nationwide electricity use in the tertiary industry was 185.2 billion kWh, up 4.9% year on year. Of that, electricity use in the charging and battery-swapping service industry was 16.8 billion kWh, up 57.0% year on year; electricity use in internet data services was 9.8 billion kWh, up 35.4% year on year.

Looking at cumulative data for the first three quarters, electricity use in the tertiary industry reached 1,610.9 billion kWh, up 6.8% year on year. Electricity use in the charging and battery-swapping service industry and internet data services was 131.5 billion and 79.3 billion kWh, respectively, up 55.4% and 41.6% year on year.

The China Electricity Council previously forecast that China's total electricity consumption across society would grow 5% to 6% year on year in the second half of the year.

DW Chinese is on Instagram! Search for dw.chinese to see more in-depth, accessible text and video reporting.