China's rainfall comes at a critical time for the coal and dam industries.

Gate News bot reports that strong rainfall sweeping across southwestern and central China has caused rivers and reservoir water levels to rise, supplying water to national dams and posing another threat to the coal market competing with hydropower.

Heavy rain is expected to last at least until early next week, marking the latest downpour in the peak rainy season from June to August. The China Meteorological Administration forecasts that rainfall in major hydropower areas of Yunnan, as well as parts of Sichuan and Guizhou, could reach up to 250 millimeters (10 inches) during this period, which is about 20% to 70% higher than the average.

The meteorological department stated that this is good news for dam operators, as most areas in these provinces, except for Yunnan Province, have experienced rainfall below average levels so far in June. However, this is less favorable for the coal industry, which is struggling with persistently weak coal prices.

The rainy season has arrived just in time. In May, the country's hydropower generation fell by 14% year-on-year. Typically, May is the month when power generation rebounds after the dry season, and this clearly indicates for the first time how much hydropower can be relied upon to meet the surging electricity demand during the sweltering summer.

The strong rebound of dams such as the Three Gorges may further suppress thermal power generation, which declined by 3.1% in the first five months of this year. The Three Gorges is the largest power plant in the world.

Regardless of weather conditions, hydropower and coal are the two main base load power sources for China's electricity supply. However, the coal market is in trouble - due to both an oversupply of fuel and a slowdown in the Chinese economy - with benchmark prices plummeting by 30% over the past 12 months, reaching their lowest level in more than four years. As a result, mining profits have also significantly declined.

This is the time for the hydropower company to shine, but in recent years, with climate change leading to more extreme weather, the industry has become increasingly unpredictable.