We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Saturday, 10 July 21
OVERESTIMATED LCOES OF COAL-FIRED POWER PLANTS CREATE A FINANCIAL BUBBLE - IEEFA
 Massive stranded asset risk detrimentally affects the financial and power distribution
India’s future coal-fired power project pipeline carries a massive stranded asset risk due to the collapse in the average utilisation rate of its coal-fired power fleet leading to an underestimation of financial risk for new projects, finds a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).
There are currently 33 gigawatts (GW) of coal-fired power plants under construction and another 29GW of proposed projects under various stages of regulatory approval in India.
Author of the report, energy finance analyst Kashish Shah says the LCOE (levelised cost of energy) is the required tariff at which the net present value of the investment is zero.
“In other words, LCOE is the minimum required average tariff for a power asset to reach a breakeven return at the end of its life. Anything less than that suggests the asset is unviable.”
Shah found that the average utilisation rate of India’s coal-fired fleet has collapsed to a financially unsustainable low of 53% in financial year (FY) 2020/21 from a high of 78% a decade ago in FY2011/12.
For most coal plants in India, the LCOE is calculated with an assumption of utilisation factor of 85-90% throughout the life of the project. However, the LCOE turns out to be 64% higher with India’s average capacity utilisation factor sitting at ~55% for the last few years.
“The aspiration for further builds of coal capacity stems from the notion that coal is still ‘cheap’,” says Shah. “However, with tariffs now below Rs2/kilowatt hour (kWh) (US$27/MWh), solar power is cheaper than even the variable cost of coal-fired power and is ready to absorb incremental daytime demand.”
IEEFA’s report highlights that utilisation factors of coal-fired power plants have declined not just in India, but across major electricity markets including China, the United Kingdom (UK) and the United States (U.S.).
“With zero fuel costs, the marginal cost of generation for renewables is practically zero,” says Shah. “On the other hand, with increasing inflation in Indian domestic coal prices and railway transportation costs for coal, the gap between cost competitiveness of renewables versus coal is widening.
“This raises a serious concern about the viability of coal-fired power plants.
“Debt servicing for underutilised coal-fired power assets becomes extremely difficult and creates a liquidity crunch in the whole value chain. The financial stress then spills over to the power distribution sector as well as affecting India’s financial lending institutions. This further inhibits growth in other important segments of the power industry such as renewables and transmission infrastructure, which are extremely critical for India’s electricity sector transition.”
The report concludes that the financial viability of India’s proposed and under construction coal-fired power projects should be re-evaluated based on the right estimation of utilisation factors including LCOE and capacity factor to avoid further bloating of India’s non-performing assets.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Monday, 14 June 21
'WISHFUL THINKING': WHY CHINA NEEDS AUSTRALIAN IRON ORE FOR 'MANY YEARS' TO COME - YAHOO FINANCE AU
A “wintry period”.
That’s what’s expected to happen to Australia’s economy “when” China st ...
Sunday, 13 June 21
COAL AND LNG’S SURGE IN ASIA PLAYS INTO RENEWABLE ENERGY HANDS - REUTERS
Liquefied natural gas (LNG) and thermal coal prices in Asia have been roaring ahead in recent months amid strong demand, but while welcome news for ...
Friday, 11 June 21
5 REASONS GLOBAL SHIPPING COSTS WILL CONTINUE TO RISE - ING
No short-term relief
Shipping costs have been growing strongly since the autumn of 2020, but the first months of this year have seen a new surg ...
Friday, 11 June 21
ASIA COAL PRICES SURGE, BUT CHINA-AUSTRALIA DISPUTE MEANS RALLY IS UNEVEN - REUTERS
Thermal coal prices across Asia have surged to multi-year highs amid strong demand and some supply constraints, but some types of the fuel have don ...
Thursday, 10 June 21
INDONESIA COAL EARNINGS RECOVERY TO SLOW AFTER STRONG 1Q - FITCH RATINGS
Fitch Ratings expects the recovery in operating and financial performance of Indonesian coal miners and coal contractors to slow during rest of 202 ...
|
|
|
Showing 551 to 555 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Malabar Cements Ltd - India
- Deloitte Consulting - India
- Toyota Tsusho Corporation, Japan
- LBH Netherlands Bv - Netherlands
- Alfred C Toepfer International GmbH - Germany
- Independent Power Producers Association of India
- Altura Mining Limited, Indonesia
- Renaissance Capital - South Africa
- The Treasury - Australian Government
- SMC Global Power, Philippines
- SMG Consultants - Indonesia
- Vizag Seaport Private Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Thai Mozambique Logistica
- Aboitiz Power Corporation - Philippines
- Leighton Contractors Pty Ltd - Australia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bahari Cakrawala Sebuku - Indonesia
- Sindya Power Generating Company Private Ltd
- Sree Jayajothi Cements Limited - India
- Dalmia Cement Bharat India
- Heidelberg Cement - Germany
- San Jose City I Power Corp, Philippines
- Aditya Birla Group - India
- Ambuja Cements Ltd - India
- Latin American Coal - Colombia
- Attock Cement Pakistan Limited
- Jindal Steel & Power Ltd - India
- Essar Steel Hazira Ltd - India
- CNBM International Corporation - China
- Electricity Generating Authority of Thailand
- Savvy Resources Ltd - HongKong
- GVK Power & Infra Limited - India
- Indonesian Coal Mining Association
- Sinarmas Energy and Mining - Indonesia
- Sarangani Energy Corporation, Philippines
- Power Finance Corporation Ltd., India
- Grasim Industreis Ltd - India
- Intertek Mineral Services - Indonesia
- Port Waratah Coal Services - Australia
- Bhatia International Limited - India
- Sakthi Sugars Limited - India
- Ministry of Transport, Egypt
- IHS Mccloskey Coal Group - USA
- Iligan Light & Power Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Energy Development Corp, Philippines
- Karaikal Port Pvt Ltd - India
- Mjunction Services Limited - India
- Planning Commission, India
- CIMB Investment Bank - Malaysia
- Global Green Power PLC Corporation, Philippines
- New Zealand Coal & Carbon
- Africa Commodities Group - South Africa
- Holcim Trading Pte Ltd - Singapore
- Bukit Baiduri Energy - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Barasentosa Lestari - Indonesia
- London Commodity Brokers - England
- Oldendorff Carriers - Singapore
- Semirara Mining and Power Corporation, Philippines
- The University of Queensland
- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- TNB Fuel Sdn Bhd - Malaysia
- Samtan Co., Ltd - South Korea
- Edison Trading Spa - Italy
- Georgia Ports Authority, United States
- OPG Power Generation Pvt Ltd - India
- White Energy Company Limited
- PNOC Exploration Corporation - Philippines
- Videocon Industries ltd - India
- Indo Tambangraya Megah - Indonesia
- Vedanta Resources Plc - India
- Kideco Jaya Agung - Indonesia
- Kepco SPC Power Corporation, Philippines
- Larsen & Toubro Limited - India
- Wilmar Investment Holdings
- Kobexindo Tractors - Indoneisa
- Tamil Nadu electricity Board
- Baramulti Group, Indonesia
- Wood Mackenzie - Singapore
- Economic Council, Georgia
- Antam Resourcindo - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Central Java Power - Indonesia
- Pendopo Energi Batubara - Indonesia
- Manunggal Multi Energi - Indonesia
- Siam City Cement - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Orica Mining Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Ind-Barath Power Infra Limited - India
- Bhoruka Overseas - Indonesia
- Uttam Galva Steels Limited - India
- ICICI Bank Limited - India
- Parry Sugars Refinery, India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Coalindo Energy - Indonesia
- Mercator Lines Limited - India
- Bharathi Cement Corporation - India
- The State Trading Corporation of India Ltd
- Merrill Lynch Commodities Europe
- Kumho Petrochemical, South Korea
- Banpu Public Company Limited - Thailand
- Electricity Authority, New Zealand
- Eastern Coal Council - USA
- Chamber of Mines of South Africa
- Globalindo Alam Lestari - Indonesia
- Bukit Makmur.PT - Indonesia
- Rashtriya Ispat Nigam Limited - India
- SN Aboitiz Power Inc, Philippines
- TeaM Sual Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- Posco Energy - South Korea
- Offshore Bulk Terminal Pte Ltd, Singapore
- Star Paper Mills Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Indika Energy - Indonesia
- Indian Energy Exchange, India
- Lanco Infratech Ltd - India
- Mercuria Energy - Indonesia
- Tata Chemicals Ltd - India
- Medco Energi Mining Internasional
- Carbofer General Trading SA - India
- India Bulls Power Limited - India
- McConnell Dowell - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Singapore Mercantile Exchange
- Sical Logistics Limited - India
- VISA Power Limited - India
- Riau Bara Harum - Indonesia
- Interocean Group of Companies - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Krishnapatnam Port Company Ltd. - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Straits Asia Resources Limited - Singapore
- Mintek Dendrill Indonesia
- Bhushan Steel Limited - India
- Energy Link Ltd, New Zealand
- Billiton Holdings Pty Ltd - Australia
- GMR Energy Limited - India
- ASAPP Information Group - India
- Bulk Trading Sa - Switzerland
- Chettinad Cement Corporation Ltd - India
- Australian Coal Association
- Semirara Mining Corp, Philippines
- Miang Besar Coal Terminal - Indonesia
- Ministry of Mines - Canada
- Standard Chartered Bank - UAE
- Orica Australia Pty. Ltd.
- Therma Luzon, Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Parliament of New Zealand
- Global Business Power Corporation, Philippines
- PowerSource Philippines DevCo
- Kapuas Tunggal Persada - Indonesia
- Minerals Council of Australia
- Directorate General of MIneral and Coal - Indonesia
- Bangladesh Power Developement Board
- Commonwealth Bank - Australia
- Asmin Koalindo Tuhup - Indonesia
- Global Coal Blending Company Limited - Australia
- Eastern Energy - Thailand
- Metalloyd Limited - United Kingdom
- Siam City Cement PLC, Thailand
- Simpson Spence & Young - Indonesia
- Borneo Indobara - Indonesia
- Petron Corporation, Philippines
- Coastal Gujarat Power Limited - India
- MS Steel International - UAE
- Central Electricity Authority - India
- Thiess Contractors Indonesia
- GAC Shipping (India) Pvt Ltd
- Kaltim Prima Coal - Indonesia
- Marubeni Corporation - India
- Kartika Selabumi Mining - Indonesia
- Salva Resources Pvt Ltd - India
- Cement Manufacturers Association - India
- Anglo American - United Kingdom
- GN Power Mariveles Coal Plant, Philippines
- AsiaOL BioFuels Corp., Philippines
- Bayan Resources Tbk. - Indonesia
- Meralco Power Generation, Philippines
- Ministry of Finance - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Cigading International Bulk Terminal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Maheswari Brothers Coal Limited - India
- Meenaskhi Energy Private Limited - India
- Gujarat Sidhee Cement - India
- Bukit Asam (Persero) Tbk - Indonesia
- Madhucon Powers Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Price Waterhouse Coopers - Russia
- International Coal Ventures Pvt Ltd - India
- Goldman Sachs - Singapore
- IEA Clean Coal Centre - UK
- South Luzon Thermal Energy Corporation
- Directorate Of Revenue Intelligence - India
- Makarim & Taira - Indonesia
- Xindia Steels Limited - India
- Jaiprakash Power Ventures ltd
- Rio Tinto Coal - Australia
- Romanian Commodities Exchange
- Indogreen Group - Indonesia
- Trasteel International SA, Italy
- Coal and Oil Company - UAE
- Sojitz Corporation - Japan
- PTC India Limited - India
- Agrawal Coal Company - India
- Gujarat Electricity Regulatory Commission - India
- Formosa Plastics Group - Taiwan
- European Bulk Services B.V. - Netherlands
- Binh Thuan Hamico - Vietnam
|
| |
| |
|
