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, 07 August 12
2ND ANNUAL FLOATING TERMINALS
Press Release - After a ground breaking and successful launch in 2011, the 2nd Annual Floating Terminals conferenceis back to address innovation, co ...
Tuesday, 07 August 12
KRISHNAPATNAM PORT HAS DISCHARGED 122,247 MTS OF COAL IN JUST 24 HRS
COALspot.com - Keeping with the tradition of the new records that are set at the Olympic Games 2012, Krishnapatnam Port has also achieved in setting ...
Tuesday, 07 August 12
THE JAKARTA POST EDITORIAL: REVISITING THE MINING LAW
The Jakarta post, one of the leading English news paper in Indonesia writes in its editorial today, what the domestic and foreign investors had drea ...
Tuesday, 07 August 12
BARAMULTI SET TO LIST ON BOURSE IN Q4 - JP
The Jakarta Post reported that, coal miner PT Baramulti Sukses Sarana is preparing to make its shares available to the public in the fourth quarter ...
Tuesday, 07 August 12
REALM RESOURCES COMPLETES STUDY ON ITS KATINGAN RIA COAL PROJECT
COALspot.com - Realm Resources Ltd. has announced that it has completed the Project Study for the Katingan Ria Project in Central Kalimantan, Indone ...
|
|
|
Showing 4626 to 4630 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Malabar Cements Ltd - India
- Ministry of Transport, Egypt
- Lanco Infratech Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Deloitte Consulting - India
- Madhucon Powers Ltd - India
- Wood Mackenzie - Singapore
- Siam City Cement PLC, Thailand
- White Energy Company Limited
- Jindal Steel & Power Ltd - India
- Essar Steel Hazira Ltd - India
- Australian Commodity Traders Exchange
- Standard Chartered Bank - UAE
- Petrochimia International Co. Ltd.- Taiwan
- Savvy Resources Ltd - HongKong
- PTC India Limited - India
- Singapore Mercantile Exchange
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Semirara Mining Corp, Philippines
- OPG Power Generation Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Petron Corporation, Philippines
- GMR Energy Limited - India
- Merrill Lynch Commodities Europe
- Posco Energy - South Korea
- Directorate Of Revenue Intelligence - India
- Manunggal Multi Energi - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Gujarat Sidhee Cement - India
- Aditya Birla Group - India
- Indonesian Coal Mining Association
- Price Waterhouse Coopers - Russia
- Latin American Coal - Colombia
- Central Electricity Authority - India
- Salva Resources Pvt Ltd - India
- Kaltim Prima Coal - Indonesia
- Cement Manufacturers Association - India
- Meenaskhi Energy Private Limited - India
- Sakthi Sugars Limited - India
- Global Coal Blending Company Limited - Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Asmin Koalindo Tuhup - Indonesia
- Indian Oil Corporation Limited
- Georgia Ports Authority, United States
- Bharathi Cement Corporation - India
- Sindya Power Generating Company Private Ltd
- Globalindo Alam Lestari - Indonesia
- MS Steel International - UAE
- TeaM Sual Corporation - Philippines
- Vizag Seaport Private Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Baiduri Energy - Indonesia
- Indian Energy Exchange, India
- Power Finance Corporation Ltd., India
- Samtan Co., Ltd - South Korea
- Kapuas Tunggal Persada - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Marubeni Corporation - India
- Larsen & Toubro Limited - India
- Goldman Sachs - Singapore
- Karbindo Abesyapradhi - Indoneisa
- Orica Australia Pty. Ltd.
- Grasim Industreis Ltd - India
- Star Paper Mills Limited - India
- Vedanta Resources Plc - India
- Straits Asia Resources Limited - Singapore
- Renaissance Capital - South Africa
- European Bulk Services B.V. - Netherlands
- Bhoruka Overseas - Indonesia
- Attock Cement Pakistan Limited
- Thiess Contractors Indonesia
- Intertek Mineral Services - Indonesia
- Kumho Petrochemical, South Korea
- Rio Tinto Coal - Australia
- Oldendorff Carriers - Singapore
- Eastern Coal Council - USA
- Simpson Spence & Young - Indonesia
- Altura Mining Limited, Indonesia
- Baramulti Group, Indonesia
- LBH Netherlands Bv - Netherlands
- CIMB Investment Bank - Malaysia
- Electricity Generating Authority of Thailand
- Africa Commodities Group - South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Ceylon Electricity Board - Sri Lanka
- The State Trading Corporation of India Ltd
- GN Power Mariveles Coal Plant, Philippines
- Pendopo Energi Batubara - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Tata Chemicals Ltd - India
- GVK Power & Infra Limited - India
- PNOC Exploration Corporation - Philippines
- India Bulls Power Limited - India
- Ambuja Cements Ltd - India
- Bangladesh Power Developement Board
- Timah Investasi Mineral - Indoneisa
- Bukit Asam (Persero) Tbk - Indonesia
- VISA Power Limited - India
- Formosa Plastics Group - Taiwan
- Parliament of New Zealand
- Mjunction Services Limited - India
- Independent Power Producers Association of India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Commonwealth Bank - Australia
- Central Java Power - Indonesia
- Agrawal Coal Company - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- SMC Global Power, Philippines
- Electricity Authority, New Zealand
- Jorong Barutama Greston.PT - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Heidelberg Cement - Germany
- Maheswari Brothers Coal Limited - India
- Orica Mining Services - Indonesia
- Xindia Steels Limited - India
- Kideco Jaya Agung - Indonesia
- Interocean Group of Companies - India
- Coalindo Energy - Indonesia
- Metalloyd Limited - United Kingdom
- The University of Queensland
- South Luzon Thermal Energy Corporation
- Gujarat Mineral Development Corp Ltd - India
- The Treasury - Australian Government
- Binh Thuan Hamico - Vietnam
- SMG Consultants - Indonesia
- Medco Energi Mining Internasional
- Bhushan Steel Limited - India
- Uttam Galva Steels Limited - India
- IEA Clean Coal Centre - UK
- Ministry of Finance - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Barasentosa Lestari - Indonesia
- ICICI Bank Limited - India
- Meralco Power Generation, Philippines
- Coal and Oil Company - UAE
- Dalmia Cement Bharat India
- Maharashtra Electricity Regulatory Commission - India
- Videocon Industries ltd - India
- San Jose City I Power Corp, Philippines
- Edison Trading Spa - Italy
- Offshore Bulk Terminal Pte Ltd, Singapore
- Toyota Tsusho Corporation, Japan
- Chamber of Mines of South Africa
- Carbofer General Trading SA - India
- Indogreen Group - Indonesia
- GAC Shipping (India) Pvt Ltd
- Energy Link Ltd, New Zealand
- Wilmar Investment Holdings
- Makarim & Taira - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Sical Logistics Limited - India
- Borneo Indobara - Indonesia
- ASAPP Information Group - India
- Mercator Lines Limited - India
- Planning Commission, India
- New Zealand Coal & Carbon
- McConnell Dowell - Australia
- Antam Resourcindo - Indonesia
- Siam City Cement - Thailand
- Mintek Dendrill Indonesia
- SN Aboitiz Power Inc, Philippines
- Ministry of Mines - Canada
- IHS Mccloskey Coal Group - USA
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Kohat Cement Company Ltd. - Pakistan
- Cigading International Bulk Terminal - Indonesia
- Karaikal Port Pvt Ltd - India
- Indika Energy - Indonesia
- Sarangani Energy Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Global Business Power Corporation, Philippines
- Economic Council, Georgia
- AsiaOL BioFuels Corp., Philippines
- Jaiprakash Power Ventures ltd
- Tamil Nadu electricity Board
- Romanian Commodities Exchange
- Holcim Trading Pte Ltd - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Riau Bara Harum - Indonesia
- Mercuria Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- Trasteel International SA, Italy
- Semirara Mining and Power Corporation, Philippines
- PowerSource Philippines DevCo
- Port Waratah Coal Services - Australia
- PetroVietnam Power Coal Import and Supply Company
- Indo Tambangraya Megah - Indonesia
- Therma Luzon, Inc, Philippines
- Thai Mozambique Logistica
- Bulk Trading Sa - Switzerland
- International Coal Ventures Pvt Ltd - India
- Kepco SPC Power Corporation, Philippines
- Chettinad Cement Corporation Ltd - India
- Parry Sugars Refinery, India
- Minerals Council of Australia
- Energy Development Corp, Philippines
- Aboitiz Power Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- Iligan Light & Power Inc, Philippines
- Kobexindo Tractors - Indoneisa
- Anglo American - United Kingdom
- London Commodity Brokers - England
- Kartika Selabumi Mining - Indonesia
- Eastern Energy - Thailand
- Sinarmas Energy and Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Sojitz Corporation - Japan
- Coastal Gujarat Power Limited - India
- Bukit Makmur.PT - Indonesia
- CNBM International Corporation - China
- Australian Coal Association
- Bayan Resources Tbk. - Indonesia
- Bhatia International Limited - India
|
| |
| |
|
