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Municipal officials said the heatwave and the rapid economic development had exerted unprecedented pressure on the power supply in the city.
The halt of scenic illumination in Shanghai would lessen to some extent the insufficient electricity supply at nights in the city.
Meanwhile, the municipal government has also decided to restrict electricity use at some companies and construction sites.
As the temperature last week soared to a record high 39.6 degrees Celsius in Shanghai, the overload of 13.62 million kilowatts a day had far exceeded the city's power supply capacity, officials said.
Authorities had to resort to blackouts during the peak hours of energy consumption after electric power experts warned of a possible breakdown of its power grid if the overload continued.
Though the electricity generated by the Three Gorges Project began to feed Shanghai this month, the city still needs another 400,000 kilowatts per day.
Preliminary statistics show that the energy shortage has affected the electricity use of more than 1,000 companies in the city.
Power shortages have also been reported in other parts of China, especially the eastern coastal provinces like Zhejiang, Jiangsu and Anhui, and southern Guangdong province.
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