"In April, we were short of four million kw of power, far above the 2.55-3.69 million kw predicted," said an official in charge of electricity resources management.

A lack of power and a lack of migrant workers are holding back the economy in the Pearl River Delta region and some foreign investors have begun to divert funds to other places.

The power company in the provincial capital Guangzhou issued a red alert on electricity consumption in May. Some companies have decided to down tools in turns and some have stopped production between 8:30 in the morning and 11:00 at night.

Insufficient generating units, a shortage of water and gas and the closure of some small thermal power plants have all contributed to the power shortage in Guangdong, said the official.

China Southern Power Grid Corp (CSG), which is responsible for supplying electricity to Guangdong, Guangxi, Guizhou, Yunnan and Hainan, upped Guangdong's electricity to 10.65 million kw in May, 1.03 million kw more than May last year.

CSG also hopes to purchase electricity from the State Power Grid Corp's Three Gorges project, but the official said the maximum amount Guangdong could receive would be only three million kw.