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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
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Monday, 20 August 12
CHINESE COAL SWAPS RISE, INDONESIAN COAL CONTRACTS SOFT
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for October 2012 delivery lost -2.05 percent W-o-W on Friday (17 August 2012) closing but gained ...
Saturday, 18 August 12
BULK FREIGHT MARKETS CONTINUED THEIR DECLINE IN LINE WITH WEAK DEMAND - VISTAAR
COALspot.com - This week also the indices fell on all segments with BDI touching lowest in almost 3 years.
The BDI closed at 714 points down by 7 ...
Thursday, 16 August 12
PUBLIC PRIVATE PARTNERSHIPS CONFERENCE 2012
Press Release - Asia’s Premier Public Private Partnerships Conference 2012 will showcase commercial opportunities for investors and developers ...
Wednesday, 15 August 12
UT GENERATED RP 3.09 TRILLION NET INCOME
COALspot.com - As of June 2012 Indonesia’s heavy equipment market grew 14%, from 8,448 units to 9,618 units (based on UT’s internal mark ...
Tuesday, 14 August 12
SAKARI ENTERED INTO JV IN CAMBODIA TO EXPLORE COAL OPPORTUNITIES
COALspot.com - Sakari joints hands with The Royal Group of Companies in Cambodia to explore and develop coal opportunities throughout the country.
...
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- Global Green Power PLC Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Mjunction Services Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- VISA Power Limited - India
- Mintek Dendrill Indonesia
- PNOC Exploration Corporation - Philippines
- Orica Australia Pty. Ltd.
- Power Finance Corporation Ltd., India
- Salva Resources Pvt Ltd - India
- Indogreen Group - Indonesia
- Karaikal Port Pvt Ltd - India
- Eastern Coal Council - USA
- PTC India Limited - India
- ASAPP Information Group - India
- Ind-Barath Power Infra Limited - India
- Parliament of New Zealand
- Central Electricity Authority - India
- Baramulti Group, Indonesia
- Sinarmas Energy and Mining - Indonesia
- Renaissance Capital - South Africa
- International Coal Ventures Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Thiess Contractors Indonesia
- The University of Queensland
- Toyota Tsusho Corporation, Japan
- White Energy Company Limited
- Trasteel International SA, Italy
- SMG Consultants - Indonesia
- Kobexindo Tractors - Indoneisa
- Meralco Power Generation, Philippines
- Bulk Trading Sa - Switzerland
- Sindya Power Generating Company Private Ltd
- Bharathi Cement Corporation - India
- Thai Mozambique Logistica
- Bayan Resources Tbk. - Indonesia
- Deloitte Consulting - India
- PetroVietnam Power Coal Import and Supply Company
- Karbindo Abesyapradhi - Indoneisa
- SN Aboitiz Power Inc, Philippines
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Siam City Cement PLC, Thailand
- Planning Commission, India
- Electricity Generating Authority of Thailand
- Global Coal Blending Company Limited - Australia
- Attock Cement Pakistan Limited
- Agrawal Coal Company - India
- Videocon Industries ltd - India
- Central Java Power - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Samtan Co., Ltd - South Korea
- Indian Energy Exchange, India
- Aboitiz Power Corporation - Philippines
- Petron Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Carbofer General Trading SA - India
- IEA Clean Coal Centre - UK
- Leighton Contractors Pty Ltd - Australia
- Dalmia Cement Bharat India
- Kaltim Prima Coal - Indonesia
- Wilmar Investment Holdings
- London Commodity Brokers - England
- San Jose City I Power Corp, Philippines
- Latin American Coal - Colombia
- Rio Tinto Coal - Australia
- Manunggal Multi Energi - Indonesia
- Interocean Group of Companies - India
- Grasim Industreis Ltd - India
- Australian Coal Association
- Coal and Oil Company - UAE
- India Bulls Power Limited - India
- Billiton Holdings Pty Ltd - Australia
- Ministry of Mines - Canada
- Maheswari Brothers Coal Limited - India
- Straits Asia Resources Limited - Singapore
- Banpu Public Company Limited - Thailand
- Singapore Mercantile Exchange
- Larsen & Toubro Limited - India
- Kapuas Tunggal Persada - Indonesia
- Goldman Sachs - Singapore
- Cement Manufacturers Association - India
- ICICI Bank Limited - India
- Miang Besar Coal Terminal - Indonesia
- MS Steel International - UAE
- Intertek Mineral Services - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- South Luzon Thermal Energy Corporation
- Neyveli Lignite Corporation Ltd, - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The Treasury - Australian Government
- Therma Luzon, Inc, Philippines
- Malabar Cements Ltd - India
- Merrill Lynch Commodities Europe
- Directorate Of Revenue Intelligence - India
- Coalindo Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Timah Investasi Mineral - Indoneisa
- Jaiprakash Power Ventures ltd
- Electricity Authority, New Zealand
- Ceylon Electricity Board - Sri Lanka
- Vizag Seaport Private Limited - India
- TeaM Sual Corporation - Philippines
- Iligan Light & Power Inc, Philippines
- Energy Link Ltd, New Zealand
- Bukit Baiduri Energy - Indonesia
- Riau Bara Harum - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Chamber of Mines of South Africa
- Sree Jayajothi Cements Limited - India
- Bangladesh Power Developement Board
- Sical Logistics Limited - India
- Eastern Energy - Thailand
- Chettinad Cement Corporation Ltd - India
- Mercator Lines Limited - India
- Ministry of Finance - Indonesia
- Star Paper Mills Limited - India
- Posco Energy - South Korea
- Krishnapatnam Port Company Ltd. - India
- Jindal Steel & Power Ltd - India
- Indo Tambangraya Megah - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Sidhee Cement - India
- CNBM International Corporation - China
- Edison Trading Spa - Italy
- Mercuria Energy - Indonesia
- GVK Power & Infra Limited - India
- Metalloyd Limited - United Kingdom
- Indonesian Coal Mining Association
- Semirara Mining Corp, Philippines
- Romanian Commodities Exchange
- Anglo American - United Kingdom
- Australian Commodity Traders Exchange
- PowerSource Philippines DevCo
- Parry Sugars Refinery, India
- Bahari Cakrawala Sebuku - Indonesia
- Vedanta Resources Plc - India
- Holcim Trading Pte Ltd - Singapore
- LBH Netherlands Bv - Netherlands
- Georgia Ports Authority, United States
- Independent Power Producers Association of India
- IHS Mccloskey Coal Group - USA
- Bhoruka Overseas - Indonesia
- Bukit Makmur.PT - Indonesia
- Africa Commodities Group - South Africa
- Meenaskhi Energy Private Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Uttam Galva Steels Limited - India
- Semirara Mining and Power Corporation, Philippines
- Medco Energi Mining Internasional
- The State Trading Corporation of India Ltd
- Lanco Infratech Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Oldendorff Carriers - Singapore
- Kartika Selabumi Mining - Indonesia
- Globalindo Alam Lestari - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- GMR Energy Limited - India
- Sakthi Sugars Limited - India
- Kepco SPC Power Corporation, Philippines
- Aditya Birla Group - India
- Commonwealth Bank - Australia
- SMC Global Power, Philippines
- Kumho Petrochemical, South Korea
- Antam Resourcindo - Indonesia
- Port Waratah Coal Services - Australia
- Jorong Barutama Greston.PT - Indonesia
- Orica Mining Services - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Altura Mining Limited, Indonesia
- Standard Chartered Bank - UAE
- Bhatia International Limited - India
- Coastal Gujarat Power Limited - India
- Marubeni Corporation - India
- OPG Power Generation Pvt Ltd - India
- Sarangani Energy Corporation, Philippines
- Sojitz Corporation - Japan
- Barasentosa Lestari - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Tata Chemicals Ltd - India
- CIMB Investment Bank - Malaysia
- Global Business Power Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Madhucon Powers Ltd - India
- Indika Energy - Indonesia
- Heidelberg Cement - Germany
- Tamil Nadu electricity Board
- Savvy Resources Ltd - HongKong
- Makarim & Taira - Indonesia
- Ministry of Transport, Egypt
- Ambuja Cements Ltd - India
- Binh Thuan Hamico - Vietnam
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- McConnell Dowell - Australia
- Bhushan Steel Limited - India
- Wood Mackenzie - Singapore
- Energy Development Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Xindia Steels Limited - India
- Siam City Cement - Thailand
- Indian Oil Corporation Limited
- GAC Shipping (India) Pvt Ltd
- Simpson Spence & Young - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Minerals Council of Australia
- Pendopo Energi Batubara - Indonesia
- Borneo Indobara - Indonesia
- Economic Council, Georgia
- European Bulk Services B.V. - Netherlands
- Formosa Plastics Group - Taiwan
- New Zealand Coal & Carbon
- TNB Fuel Sdn Bhd - Malaysia
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