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Wednesday, 20 October 21
OVER-RELIANCE ON COAL IN OUR POWER MIX HURTING INDIA - LIVEMINT
In spite of the renewables push, coal still accounts for about 50% of India’s installed power capacity. That means a simultaneous demand and supply shock, as happening now, can disrupt power generation.
The current shortage of coal is raising the spectre of long power outages. At a broader level, the crisis also underscores India’s overwhelming dependence on coal to meet its energy needs, the significant push towards renewables notwithstanding. As of September 2021, thermal power— power generated from burning coal, gas and petroleum—comprised 60% of India’s installed capacity in power generation. Coal alone accounted for nearly 50%. By comparison, renewable sources such as wind and solar energy and biomass accounted for 26%.
European countries lead the way in renewable sources, which are more sustainable and environment-friendly. Germany, for example, drew 44% of its electricity from renewables in the first half of 2021. For India, that figure was just 10% in 2019-20, against the installed capacity share of 26%. While installed capacity represents the maximum amount of electricity that can be generated, the actual amount generated from renewables is lower due to their erratic nature. For instance, lack of sufficient wind on a given day would lead to lower energy produced from wind turbines.
While India is expected to tide over the current coal shortage, the only way it can secure its longer-term energy security is by ramping up production from renewables. However, in the medium term, it is also imperative to upgrade infrastructure at coal mining facilities, and open up existing mines to the private sector for mining to augment the supply of coal. Failure to do so will leave it vulnerable to imbalances in supply—and have deleterious trickle-down effects, as being seen now.
Supply Crunch
Coal production has picked up in the current financial year and exceeds pre-pandemic levels. In the six-month period from April to September 2021, India produced 315 million tonnes of coal, a 5.5% increase over the corresponding period of 2019 (pre-pandemic). However, there has been a secular stagnation in coal production since 2017, with the rise in production not keeping pace with increasing demand.
State-owned Coal India dominates coal production in the country, accounting for about 85% of the coal produced in the first six months of 2021-22. In addition to domestic production, India imports nearly 25% of its coal requirement. Coal imports too had fallen sharply in 2020-21, due to supply shortages and the ensuing increase in global coal prices. In a move that will enhance imports, the Centre has ordered thermal power producers to import coal for at least 10% blending in their fuel, citing a shortage of domestic supply.
Production Woes
There is, currently, a crippling shortage of coal at thermal power plants. At an all-India level, the normative stock of coal required across all power plants is 39.7 million tonnes. However, the coal stock available on 15 October with these plants stood at 7.5 million tonnes, or about 19% of the stock required, according to the Central Electricity Authority. That same day, as many as 104 of the 135 coal-based plants in India had less than five days’ stock of coal remaining, which is deemed to be ‘critical’ for plants that are located near a coal mine.
The shortage is stark across states in all regions. The northern region, which is distant from most coal-producing regions, is the worst-affected, with around 91% of thermal plants facing shortages. By comparison, the western region, which includes mineral-rich Chhattisgarh, is slightly better off, with the coal shortage affecting around 74% of power plants there.
Price Spikes
The current concern regarding coal supplies has led to a spike in electricity costs. The supply arrangement in India is that distribution companies, mostly state-owned, enter into direct purchase agreements with power producers. In the event that producers are unable to fulfil their commitments, or demand exceeds contracted supply, distribution companies buy from sellers in the open market.
Data from the Indian Energy Exchange (IEX), a marketplace for short-term electricity trading in India, shows that electricity prices rose nearly five-fold over the past month in reaction to news regarding the impending shortage of coal. Considering that end prices paid by consumers remained fixed, distribution companies, which are already in a precarious financial position, were forced to bear the brunt of this higher price. Although rates have slid back to normal levels again, this upheaval is a grim reminder of the centrality of coal in India’s power mix and why this needs to change.
Source: Livemint
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Tuesday, 19 July 22
DRY BULK MARKET: CAPESIZE MARKET FIRMS THIS WEEK - BALTIC EXCHANGE
Capesize
Firmer sentiment across both basins pushed the Capesize 5TC route average above the $20,000 threshold this week, closing at $24,209. A ...
Tuesday, 19 July 22
WHY SHIPPING MIGHT BE ABOUT TO GET A LITTLE BIT SLOWER - WORLD ECONOMIC FORUM
If shipping is the beating heart of global trade, its pulse is about to get slower.
Faced with uncertainty about which fuels to use in the long ...
Tuesday, 19 July 22
GERMANY'S INCREASED COAL, OIL USE WILL BE TEMPORARY, SCHOLZ SAYS - CNBC
Chancellor Olaf Scholz says Germany’s decision to reactivate coal and oil-fired power plants to relieve energy shortages because of the war i ...
Tuesday, 19 July 22
INDONESIA REMOVES PALM OIL EXPORT LEVY UNTIL AUG. 31 - REUTERS
Indonesia has scrapped its export levy for all palm oil products until Aug. 31 in a fresh attempt to boost exports and ease high inventories, finan ...
Tuesday, 19 July 22
CHINA'S JUNE DAILY COAL OUTPUT JUMPS ON PEAK SUMMER DEMAND - REUTERS
China’s daily coal output in June rose 6.6 per cent from a month earlier as miners cranked up output ahead of peak summer temperatures, when ...
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- Commonwealth Bank - Australia
- Gujarat Electricity Regulatory Commission - India
- Coastal Gujarat Power Limited - India
- Indo Tambangraya Megah - Indonesia
- Coalindo Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Vizag Seaport Private Limited - India
- Bayan Resources Tbk. - Indonesia
- Eastern Coal Council - USA
- Renaissance Capital - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kumho Petrochemical, South Korea
- Directorate General of MIneral and Coal - Indonesia
- MS Steel International - UAE
- Wood Mackenzie - Singapore
- Toyota Tsusho Corporation, Japan
- Manunggal Multi Energi - Indonesia
- Latin American Coal - Colombia
- Tamil Nadu electricity Board
- Asia Pacific Energy Resources Ventures Inc, Philippines
- New Zealand Coal & Carbon
- GMR Energy Limited - India
- Banpu Public Company Limited - Thailand
- Meralco Power Generation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Sinarmas Energy and Mining - Indonesia
- Bukit Baiduri Energy - Indonesia
- Port Waratah Coal Services - Australia
- VISA Power Limited - India
- Kohat Cement Company Ltd. - Pakistan
- OPG Power Generation Pvt Ltd - India
- Eastern Energy - Thailand
- Straits Asia Resources Limited - Singapore
- India Bulls Power Limited - India
- Ind-Barath Power Infra Limited - India
- Standard Chartered Bank - UAE
- Xindia Steels Limited - India
- Intertek Mineral Services - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Jindal Steel & Power Ltd - India
- SMG Consultants - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Pendopo Energi Batubara - Indonesia
- Timah Investasi Mineral - Indoneisa
- Sakthi Sugars Limited - India
- Larsen & Toubro Limited - India
- GVK Power & Infra Limited - India
- Kaltim Prima Coal - Indonesia
- Petron Corporation, Philippines
- Orica Mining Services - Indonesia
- LBH Netherlands Bv - Netherlands
- Kobexindo Tractors - Indoneisa
- Therma Luzon, Inc, Philippines
- Energy Development Corp, Philippines
- European Bulk Services B.V. - Netherlands
- Carbofer General Trading SA - India
- Global Business Power Corporation, Philippines
- Central Java Power - Indonesia
- Aditya Birla Group - India
- Krishnapatnam Port Company Ltd. - India
- Electricity Generating Authority of Thailand
- Goldman Sachs - Singapore
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Lanco Infratech Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Makarim & Taira - Indonesia
- Indika Energy - Indonesia
- Uttam Galva Steels Limited - India
- Australian Commodity Traders Exchange
- Central Electricity Authority - India
- Electricity Authority, New Zealand
- Mercator Lines Limited - India
- Agrawal Coal Company - India
- Romanian Commodities Exchange
- Indogreen Group - Indonesia
- ICICI Bank Limited - India
- Kartika Selabumi Mining - Indonesia
- Orica Australia Pty. Ltd.
- Miang Besar Coal Terminal - Indonesia
- Coal and Oil Company - UAE
- The Treasury - Australian Government
- Mjunction Services Limited - India
- SN Aboitiz Power Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Parry Sugars Refinery, India
- Simpson Spence & Young - Indonesia
- Malabar Cements Ltd - India
- Global Coal Blending Company Limited - Australia
- Energy Link Ltd, New Zealand
- Anglo American - United Kingdom
- Thiess Contractors Indonesia
- Semirara Mining Corp, Philippines
- Sarangani Energy Corporation, Philippines
- Wilmar Investment Holdings
- Rio Tinto Coal - Australia
- Deloitte Consulting - India
- Maharashtra Electricity Regulatory Commission - India
- Africa Commodities Group - South Africa
- Iligan Light & Power Inc, Philippines
- Indian Energy Exchange, India
- TeaM Sual Corporation - Philippines
- Kepco SPC Power Corporation, Philippines
- Bhushan Steel Limited - India
- Ambuja Cements Ltd - India
- Price Waterhouse Coopers - Russia
- Bhoruka Overseas - Indonesia
- Barasentosa Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- McConnell Dowell - Australia
- Grasim Industreis Ltd - India
- Merrill Lynch Commodities Europe
- Star Paper Mills Limited - India
- Holcim Trading Pte Ltd - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Altura Mining Limited, Indonesia
- Ministry of Transport, Egypt
- Georgia Ports Authority, United States
- Bulk Trading Sa - Switzerland
- Australian Coal Association
- Leighton Contractors Pty Ltd - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- AsiaOL BioFuels Corp., Philippines
- CNBM International Corporation - China
- Power Finance Corporation Ltd., India
- PetroVietnam Power Coal Import and Supply Company
- Bharathi Cement Corporation - India
- Ministry of Finance - Indonesia
- Indonesian Coal Mining Association
- Meenaskhi Energy Private Limited - India
- Marubeni Corporation - India
- Semirara Mining and Power Corporation, Philippines
- Bangladesh Power Developement Board
- Gujarat Sidhee Cement - India
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Mines - Canada
- Bhatia International Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Edison Trading Spa - Italy
- Salva Resources Pvt Ltd - India
- Madhucon Powers Ltd - India
- Mintek Dendrill Indonesia
- PowerSource Philippines DevCo
- Bukit Makmur.PT - Indonesia
- Savvy Resources Ltd - HongKong
- Medco Energi Mining Internasional
- Trasteel International SA, Italy
- Petrochimia International Co. Ltd.- Taiwan
- Chamber of Mines of South Africa
- Alfred C Toepfer International GmbH - Germany
- Asmin Koalindo Tuhup - Indonesia
- Riau Bara Harum - Indonesia
- Siam City Cement PLC, Thailand
- Metalloyd Limited - United Kingdom
- Mercuria Energy - Indonesia
- Kapuas Tunggal Persada - Indonesia
- South Luzon Thermal Energy Corporation
- Pipit Mutiara Jaya. PT, Indonesia
- Maheswari Brothers Coal Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Cigading International Bulk Terminal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Economic Council, Georgia
- Sojitz Corporation - Japan
- PNOC Exploration Corporation - Philippines
- Siam City Cement - Thailand
- GAC Shipping (India) Pvt Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Vedanta Resources Plc - India
- Planning Commission, India
- ASAPP Information Group - India
- Sree Jayajothi Cements Limited - India
- Oldendorff Carriers - Singapore
- White Energy Company Limited
- CIMB Investment Bank - Malaysia
- TNB Fuel Sdn Bhd - Malaysia
- Baramulti Group, Indonesia
- The University of Queensland
- Ceylon Electricity Board - Sri Lanka
- Minerals Council of Australia
- Heidelberg Cement - Germany
- Directorate Of Revenue Intelligence - India
- IHS Mccloskey Coal Group - USA
- Parliament of New Zealand
- Karaikal Port Pvt Ltd - India
- Attock Cement Pakistan Limited
- Videocon Industries ltd - India
- Cement Manufacturers Association - India
- Posco Energy - South Korea
- Global Green Power PLC Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Singapore Mercantile Exchange
- PTC India Limited - India
- Aboitiz Power Corporation - Philippines
- Dalmia Cement Bharat India
- Sical Logistics Limited - India
- Independent Power Producers Association of India
- Tata Chemicals Ltd - India
- London Commodity Brokers - England
- Neyveli Lignite Corporation Ltd, - India
- San Jose City I Power Corp, Philippines
- International Coal Ventures Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Formosa Plastics Group - Taiwan
- Sindya Power Generating Company Private Ltd
- The State Trading Corporation of India Ltd
- Interocean Group of Companies - India
- Chettinad Cement Corporation Ltd - India
- Borneo Indobara - Indonesia
- SMC Global Power, Philippines
- Thai Mozambique Logistica
- Jaiprakash Power Ventures ltd
- Kideco Jaya Agung - Indonesia
- Antam Resourcindo - Indonesia
- Indian Oil Corporation Limited
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