A blistering heatwave sweeping across southern China is threatening crops and adding strain to the local power grids, as the Asian nation becomes the latest region around the globe battling searing temperatures.

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(Bloomberg) — A blistering heatwave sweeping across southern China is threatening crops and adding strain to the local power grids, as the Asian nation becomes the latest region around the globe battling searing temperatures. 

Shanghai, China’s financial hub, on Wednesday issued a red alert, the highest level heat warning, as the temperature was expected to reach 40 degrees Celsius (104 degrees Fahrenheit). Cities in Sichuan and economic powerhouses Jiangsu and Zhejiang also issued red alerts after temperatures in parts of the region hit records. 

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The heatwave is expected to last through the weekend, with temperatures reaching as high as 42 degrees Celsius, according to the national meteorological center.

Heatwaves are blasting regions from Europe to the US at the start of summer in the northern hemisphere, adding pressure to already-high energy prices. Texas power use is breaking records, while Europe continues to bake after the third-warmest June on record. 

Hot weather in China is coming at a crucial time for the nation’s early rice to fill and harvest. The heat may hurt rice yields and is negative for cotton growth as well, the country’s meteorological department said. 

The heatwave will also likely boost power consumption further this summer as residents and businesses turn on air conditioning to keep cool. Electricity use has already hit a record across several Chinese provinces, including Shandong and Henan in the north and Zhejiang in the east.

Several provinces in China are preparing “orderly consumption” plans for times when power supplies are tight, BJX.com reported. The plans curb use at inefficient or high-consumption factories in order to make sure enough supply is available for residents and more important industries.

A prolonged surge in power demand could threaten to deplete stockpiles of coal, the main fuel used for electricity generation. Overseas prices of the fuel are near a record high, and higher Chinese demand could exacerbate a global supply crunch.