We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Friday, 03 August 12
INDIA - LIGHTS OUT! - SALVA
 The Indian power sector hit global headlines this week for all the wrong reasons. Firstly, on Monday, over 350 million people lost power across northern India, including Delhi. The following day, the lights went out again, but this time over 600 million people in 20 of India’s 28 states were affected, with the outages covering range of 3000 kilometers in the northern and eastern regions. The authorities’ response has ranged from blaming states for overdrawing from the grid, to appointing a committee to inquire into the causes of the blackout. However, these latest outages are merely symptomatic of much larger problems in India’s power sector, which has been short of power for years.
In Salva’s view, the problem does not lie within the generation sector – but with its upstream (coal supply and transportation) and downstream (transmission and distribution) counterparts. Since the generation sector was deregulated in FY03-04 to enable private participation, installed generation capacity has almost doubled, growing by 92GW or 85%, at a CAGR of 10.8%. The vast majority of this new capacity is coal-fired, which added another 18GW of new capacity in FY11-12 and a further 4.2GW in Q1’12.
However, this new power generation capacity is not being fully utilised, with plant load factors for coal declining from 79.2% in H1’11 to 75.8% in H1’12 and 72% most recently in June. Over 4.3TWh of coal-fired generation was lost in June alone due to low coal supply with a further 1.4TWh lost because of transmission constraints and unplanned outages. Given these figures, clearly thermal coal supply remains a problem. While domestic coal production has increased in 2012, it has languished in recent years, growing at around 1% (5Mt) between 2008-11, which pales in comparison against annual coal-fired power capacity growth of over 10%. Even when production is strong, which it has been in early 2012 (by Indian standards), transportation of coal remains highly problematic. Indian Railways has not been able to procure wagons in time to boost availability sufficiently. This has resulted in coal shortages at power plants and growth in coal mine stockpiles. Transport capacity remains severely constrained as capacity addition has languished at the altar of populism. Passenger traffic shares the same infrastructure as freight, causing freight such as coal to be given a lower priority.
The Electricity Act of 2003 freed up the generation sector, but the same reforms haven’t yet percolated to the transmission and distribution sectors, which are suffering from the same bottlenecks that existed prior to 2003. Transmission capacity is not being developed at the same pace as generation capacity, while distribution reforms remain a pipe dream. As domestic coal production has not kept pace with demand, power producers have used much costlier imported coal to generate electricity. However, India’s tariff framework is still lagging behind, so the State Electricity Boards require ever increasing financial support from state owned banks and financial institutions. Tariff reform is an immediate requirement. Only that will facilitate the sector’s much needed investment.
What are the implications if this is not done now?
Indian cities are accustomed to power cuts. However, increasing prosperity has increased electricity demand and, coupled with the weak monsoon this year, has caused power demand to spike. Agricultural states like Uttar Pradesh, Haryana and Punjab have increasingly overdrawn power from the grids to feed the agricultural sector (which ironically is not metered as power is free for farmers) and to meet residential demand. The agricultural sector is still dependent upon the monsoon as the irrigation network is not widespread, and the weak monsoon has resulted in farmers pumping groundwater onto their fields. Generally electricity demand is low during the monsoon months (June-September) as the rains reduce temperatures. However, the rains have been weak and hence residential power demand has remained strong. This has been further exacerbated with the additional demand from the agricultural sector. State power distribution companies have not planned in advance to buy additional electricity and have overdrawn power from the grid without additional generation being supplied. This has destabilised the grid and caused it to fail.
The impact of the electricity shortages have been felt by the public at large, with a few incidents of people protesting on the road. However, it hasn’t erupted into widespread unrest - thankfully.
The implications of not carrying out reforms in the transmission and distribution sector are now apparent. Lack of adequate investment in the transmission sector will hobble the impressive generation capacity that has been developed. Lack of commercial reforms in the power distribution sector will not provide the returns or even cover the basic cost of generation. The power sector is already sick and if reforms are not carried out with the seriousness required, India will suffer further setbacks.
Source: Salva
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Tuesday, 04 September 12
SHIP OWNERS' COMPETITION LEADS TO TANKER FIXTURES BELOW OPERATING COSTS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Ship owners operating in the VLCC tanker markets are increasingly finding it difficult to obtain even breakeven rates for their vessels, as competit ...
Tuesday, 04 September 12
ORPHEUS SECURES ADDITIONAL SIGNIFICANT KINTAP COAL PROJECT IN SOUTH KALIMANTAN
COALspot.com - Indonesian coal producer, Orpheus Energy (ASX:OEG) has announced that it has secured a 50% equity ownership in an additional tenement ...
Monday, 03 September 12
SHIPOWNERS TO WAIT FOR FURTHER PRICE REDUCTIONS IN THE SECOND HAND VESSEL MARKETS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
With September now upon us, shipbrokers are looking towards an interesting winter season, as ship owners are looking to capitalize on more second ha ...
Sunday, 02 September 12
ADAROS COAL ROYALTIES TO THE GOVERNMENT INCREASED BY 10.5 PERCENT Y-O-Y TO US$196.8 MILLION
COALspot.com - PT Adaro Energy Tbk (IDX: ADRO), the second largest power plant coal producer in Indonesia, announced its consolidated auditor-review ...
Saturday, 01 September 12
FALLING PRICES; BLEEDING MINERS
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for October 2012 delivery lost 4.070 percent and 0.422 percent respectively on W-o-W and D- ...
|
|
|
Showing 4591 to 4595 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Meenaskhi Energy Private Limited - India
- White Energy Company Limited
- Kobexindo Tractors - Indoneisa
- Parliament of New Zealand
- Rio Tinto Coal - Australia
- Formosa Plastics Group - Taiwan
- Kumho Petrochemical, South Korea
- Central Java Power - Indonesia
- Australian Commodity Traders Exchange
- Semirara Mining and Power Corporation, Philippines
- Thai Mozambique Logistica
- GVK Power & Infra Limited - India
- Banpu Public Company Limited - Thailand
- Maheswari Brothers Coal Limited - India
- San Jose City I Power Corp, Philippines
- Vedanta Resources Plc - India
- Kapuas Tunggal Persada - Indonesia
- Dalmia Cement Bharat India
- Chamber of Mines of South Africa
- Orica Mining Services - Indonesia
- VISA Power Limited - India
- Malabar Cements Ltd - India
- CIMB Investment Bank - Malaysia
- Oldendorff Carriers - Singapore
- Leighton Contractors Pty Ltd - Australia
- Indian Energy Exchange, India
- Bulk Trading Sa - Switzerland
- SN Aboitiz Power Inc, Philippines
- London Commodity Brokers - England
- Siam City Cement - Thailand
- Madhucon Powers Ltd - India
- Africa Commodities Group - South Africa
- Alfred C Toepfer International GmbH - Germany
- IHS Mccloskey Coal Group - USA
- Maharashtra Electricity Regulatory Commission - India
- Bukit Makmur.PT - Indonesia
- Kideco Jaya Agung - Indonesia
- India Bulls Power Limited - India
- Meralco Power Generation, Philippines
- Mercator Lines Limited - India
- AsiaOL BioFuels Corp., Philippines
- Uttam Galva Steels Limited - India
- Singapore Mercantile Exchange
- Sree Jayajothi Cements Limited - India
- Electricity Generating Authority of Thailand
- Therma Luzon, Inc, Philippines
- Kartika Selabumi Mining - Indonesia
- Jaiprakash Power Ventures ltd
- Petrochimia International Co. Ltd.- Taiwan
- SMG Consultants - Indonesia
- Sindya Power Generating Company Private Ltd
- Jindal Steel & Power Ltd - India
- Coastal Gujarat Power Limited - India
- Straits Asia Resources Limited - Singapore
- Timah Investasi Mineral - Indoneisa
- Deloitte Consulting - India
- Karaikal Port Pvt Ltd - India
- Power Finance Corporation Ltd., India
- Neyveli Lignite Corporation Ltd, - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Altura Mining Limited, Indonesia
- Bharathi Cement Corporation - India
- Wood Mackenzie - Singapore
- CNBM International Corporation - China
- Port Waratah Coal Services - Australia
- SMC Global Power, Philippines
- European Bulk Services B.V. - Netherlands
- Anglo American - United Kingdom
- Siam City Cement PLC, Thailand
- Trasteel International SA, Italy
- Gujarat Electricity Regulatory Commission - India
- PowerSource Philippines DevCo
- International Coal Ventures Pvt Ltd - India
- PNOC Exploration Corporation - Philippines
- Baramulti Group, Indonesia
- Borneo Indobara - Indonesia
- Energy Link Ltd, New Zealand
- Directorate General of MIneral and Coal - Indonesia
- TeaM Sual Corporation - Philippines
- Riau Bara Harum - Indonesia
- Mintek Dendrill Indonesia
- Merrill Lynch Commodities Europe
- Romanian Commodities Exchange
- Sakthi Sugars Limited - India
- Marubeni Corporation - India
- Kaltim Prima Coal - Indonesia
- Parry Sugars Refinery, India
- Manunggal Multi Energi - Indonesia
- Mjunction Services Limited - India
- Georgia Ports Authority, United States
- Kepco SPC Power Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Simpson Spence & Young - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Standard Chartered Bank - UAE
- Gujarat Sidhee Cement - India
- Chettinad Cement Corporation Ltd - India
- Tamil Nadu electricity Board
- Ministry of Transport, Egypt
- Directorate Of Revenue Intelligence - India
- Makarim & Taira - Indonesia
- Salva Resources Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Price Waterhouse Coopers - Russia
- Sarangani Energy Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Toyota Tsusho Corporation, Japan
- Lanco Infratech Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Central Electricity Authority - India
- Cigading International Bulk Terminal - Indonesia
- Samtan Co., Ltd - South Korea
- PTC India Limited - India
- LBH Netherlands Bv - Netherlands
- Aboitiz Power Corporation - Philippines
- Posco Energy - South Korea
- New Zealand Coal & Carbon
- Kohat Cement Company Ltd. - Pakistan
- Edison Trading Spa - Italy
- Bangladesh Power Developement Board
- Krishnapatnam Port Company Ltd. - India
- Billiton Holdings Pty Ltd - Australia
- Antam Resourcindo - Indonesia
- Essar Steel Hazira Ltd - India
- Interocean Group of Companies - India
- Grasim Industreis Ltd - India
- Indika Energy - Indonesia
- Commonwealth Bank - Australia
- South Luzon Thermal Energy Corporation
- Eastern Energy - Thailand
- Indogreen Group - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Australian Coal Association
- Pendopo Energi Batubara - Indonesia
- Ministry of Mines - Canada
- Bahari Cakrawala Sebuku - Indonesia
- Tata Chemicals Ltd - India
- Iligan Light & Power Inc, Philippines
- Holcim Trading Pte Ltd - Singapore
- Medco Energi Mining Internasional
- Bhushan Steel Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- TNB Fuel Sdn Bhd - Malaysia
- Vijayanagar Sugar Pvt Ltd - India
- McConnell Dowell - Australia
- The Treasury - Australian Government
- Star Paper Mills Limited - India
- Ministry of Finance - Indonesia
- Ind-Barath Power Infra Limited - India
- Indo Tambangraya Megah - Indonesia
- Minerals Council of Australia
- Latin American Coal - Colombia
- Cement Manufacturers Association - India
- Ceylon Electricity Board - Sri Lanka
- Coalindo Energy - Indonesia
- IEA Clean Coal Centre - UK
- Economic Council, Georgia
- Bhatia International Limited - India
- Global Business Power Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Mercuria Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Binh Thuan Hamico - Vietnam
- Carbofer General Trading SA - India
- Larsen & Toubro Limited - India
- Goldman Sachs - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Sinarmas Energy and Mining - Indonesia
- Sojitz Corporation - Japan
- Eastern Coal Council - USA
- Independent Power Producers Association of India
- Xindia Steels Limited - India
- Thiess Contractors Indonesia
- ICICI Bank Limited - India
- Ambuja Cements Ltd - India
- Agrawal Coal Company - India
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Videocon Industries ltd - India
- Attock Cement Pakistan Limited
- GAC Shipping (India) Pvt Ltd
- OPG Power Generation Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- GMR Energy Limited - India
- Bayan Resources Tbk. - Indonesia
- Global Coal Blending Company Limited - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- ASAPP Information Group - India
- Indonesian Coal Mining Association
- Rashtriya Ispat Nigam Limited - India
- Indian Oil Corporation Limited
- Global Green Power PLC Corporation, Philippines
- Renaissance Capital - South Africa
- Petron Corporation, Philippines
- Vizag Seaport Private Limited - India
- The University of Queensland
- Heidelberg Cement - Germany
- Electricity Authority, New Zealand
- Planning Commission, India
- MS Steel International - UAE
- Aditya Birla Group - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Energy Development Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Sical Logistics Limited - India
- Wilmar Investment Holdings
- The State Trading Corporation of India Ltd
- Metalloyd Limited - United Kingdom
- Globalindo Alam Lestari - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Pipit Mutiara Jaya. PT, Indonesia
- Bhoruka Overseas - Indonesia
- Coal and Oil Company - UAE
- Orica Australia Pty. Ltd.
|
| |
| |
|
