China has experienced severe energy shortages since the summer of 2002. Power shaving—managed blackouts or brownouts—caused huge economic losses in more than 20 provinces and cities in 2003 and 2004. This year, State Grid Corp., which covers most of the country, predicted another 30 gigawatt (GW) power shortfall during the summer. China's second grid operator, Southern Power Grid Co., which covers Guangdong, Guangxi, Guizhou, Hainan, and Yunnan, had a similarly gloomy outlook: The maximum power shortfall this summer on the southern grid would be as much as 7.8 GW, officials predicted...