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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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Friday, 04 February 22
RENEWABLES ON THE RISE, COAL CONTINUOUSLY FALLING - EUROPEAN COMMISSION
Although oil (34.5%) and natural gas (23.7%) were still the most important fuel sources in the EU energy mix in 2020, renewable energy’s shar ...
Thursday, 03 February 22
COAL SHORTAGE NOW AT ALARMING LEVELS, SAY ALUMINIUM PRODUCERS - IANS
With no relief in sight despite coal stocks running critically low and production disruptions looming across the Indian aluminium sector, the Alumi ...
Wednesday, 02 February 22
HIGH COKING COAL PRICES PROVIDE GLIMPSE INTO STEELMAKING'S FUTURE - MCKINSEY
Last year was a volatile one in global commodity markets. Demand for coking coal, an essential raw material in the production of steel, was extreme ...
Wednesday, 02 February 22
INDONESIA'S RESTRICTIONS ON COMMODITIES RATTLE MARKETS, MORE MOVES LIKELY - REUTERS
In just the first month of this year, Indonesian policymakers have rattled global markets with restrictions on some of its biggest commodities expo ...
Wednesday, 02 February 22
CHINA'S TOP COAL PRODUCER FORECASTS 28 PCT PROFIT GROWTH IN 2021 - XINHUA
China Shenhua Energy Company Limited, one of the country’s biggest coal producers, said its net profits are expected to jump by 28 percent in ...
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- Miang Besar Coal Terminal - Indonesia
- Power Finance Corporation Ltd., India
- Energy Development Corp, Philippines
- Kobexindo Tractors - Indoneisa
- New Zealand Coal & Carbon
- Therma Luzon, Inc, Philippines
- Maheswari Brothers Coal Limited - India
- McConnell Dowell - Australia
- Standard Chartered Bank - UAE
- Meralco Power Generation, Philippines
- CIMB Investment Bank - Malaysia
- Essar Steel Hazira Ltd - India
- Australian Commodity Traders Exchange
- Makarim & Taira - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Borneo Indobara - Indonesia
- SMC Global Power, Philippines
- Metalloyd Limited - United Kingdom
- Xindia Steels Limited - India
- The State Trading Corporation of India Ltd
- Siam City Cement - Thailand
- GVK Power & Infra Limited - India
- Rio Tinto Coal - Australia
- Kideco Jaya Agung - Indonesia
- Orica Australia Pty. Ltd.
- Directorate General of MIneral and Coal - Indonesia
- Eastern Energy - Thailand
- Global Business Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Oldendorff Carriers - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Aboitiz Power Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- Marubeni Corporation - India
- Formosa Plastics Group - Taiwan
- Commonwealth Bank - Australia
- SMG Consultants - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Mines - Canada
- White Energy Company Limited
- Indogreen Group - Indonesia
- Energy Link Ltd, New Zealand
- Electricity Authority, New Zealand
- Minerals Council of Australia
- Tamil Nadu electricity Board
- Jorong Barutama Greston.PT - Indonesia
- Interocean Group of Companies - India
- Bhushan Steel Limited - India
- Ministry of Transport, Egypt
- Economic Council, Georgia
- Kohat Cement Company Ltd. - Pakistan
- Asmin Koalindo Tuhup - Indonesia
- Kartika Selabumi Mining - Indonesia
- IHS Mccloskey Coal Group - USA
- TeaM Sual Corporation - Philippines
- Rashtriya Ispat Nigam Limited - India
- Bharathi Cement Corporation - India
- Leighton Contractors Pty Ltd - Australia
- Bhatia International Limited - India
- Baramulti Group, Indonesia
- Petron Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Georgia Ports Authority, United States
- MS Steel International - UAE
- PTC India Limited - India
- Videocon Industries ltd - India
- Globalindo Alam Lestari - Indonesia
- Chettinad Cement Corporation Ltd - India
- Larsen & Toubro Limited - India
- Kumho Petrochemical, South Korea
- Lanco Infratech Ltd - India
- Planning Commission, India
- Kapuas Tunggal Persada - Indonesia
- Manunggal Multi Energi - Indonesia
- Iligan Light & Power Inc, Philippines
- Singapore Mercantile Exchange
- Billiton Holdings Pty Ltd - Australia
- Simpson Spence & Young - Indonesia
- Salva Resources Pvt Ltd - India
- Madhucon Powers Ltd - India
- Vedanta Resources Plc - India
- Africa Commodities Group - South Africa
- Kaltim Prima Coal - Indonesia
- GMR Energy Limited - India
- Orica Mining Services - Indonesia
- Malabar Cements Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Straits Asia Resources Limited - Singapore
- Heidelberg Cement - Germany
- Deloitte Consulting - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Savvy Resources Ltd - HongKong
- Petrochimia International Co. Ltd.- Taiwan
- Thai Mozambique Logistica
- Holcim Trading Pte Ltd - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Riau Bara Harum - Indonesia
- Barasentosa Lestari - Indonesia
- Wilmar Investment Holdings
- IEA Clean Coal Centre - UK
- Central Java Power - Indonesia
- Ministry of Finance - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining Corp, Philippines
- Merrill Lynch Commodities Europe
- Sarangani Energy Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Cement Manufacturers Association - India
- VISA Power Limited - India
- Romanian Commodities Exchange
- Bukit Baiduri Energy - Indonesia
- London Commodity Brokers - England
- Star Paper Mills Limited - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Tata Chemicals Ltd - India
- Uttam Galva Steels Limited - India
- Altura Mining Limited, Indonesia
- Mercator Lines Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Vizag Seaport Private Limited - India
- Sical Logistics Limited - India
- Latin American Coal - Colombia
- Siam City Cement PLC, Thailand
- Posco Energy - South Korea
- Gujarat Mineral Development Corp Ltd - India
- Bayan Resources Tbk. - Indonesia
- Parry Sugars Refinery, India
- Mintek Dendrill Indonesia
- Timah Investasi Mineral - Indoneisa
- Karaikal Port Pvt Ltd - India
- Indian Energy Exchange, India
- Global Coal Blending Company Limited - Australia
- Bukit Makmur.PT - Indonesia
- Banpu Public Company Limited - Thailand
- Agrawal Coal Company - India
- Maharashtra Electricity Regulatory Commission - India
- The University of Queensland
- Eastern Coal Council - USA
- Coalindo Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bhoruka Overseas - Indonesia
- Price Waterhouse Coopers - Russia
- Pipit Mutiara Jaya. PT, Indonesia
- South Luzon Thermal Energy Corporation
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- LBH Netherlands Bv - Netherlands
- Bulk Trading Sa - Switzerland
- San Jose City I Power Corp, Philippines
- Grasim Industreis Ltd - India
- Alfred C Toepfer International GmbH - Germany
- CNBM International Corporation - China
- Sindya Power Generating Company Private Ltd
- Australian Coal Association
- Meenaskhi Energy Private Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- PNOC Exploration Corporation - Philippines
- Chamber of Mines of South Africa
- Samtan Co., Ltd - South Korea
- Anglo American - United Kingdom
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Renaissance Capital - South Africa
- Carbofer General Trading SA - India
- Kepco SPC Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Gujarat Sidhee Cement - India
- Bangladesh Power Developement Board
- India Bulls Power Limited - India
- Intertek Mineral Services - Indonesia
- Jindal Steel & Power Ltd - India
- Coastal Gujarat Power Limited - India
- Indonesian Coal Mining Association
- Attock Cement Pakistan Limited
- Aditya Birla Group - India
- ASAPP Information Group - India
- Thiess Contractors Indonesia
- Independent Power Producers Association of India
- Karbindo Abesyapradhi - Indoneisa
- Trasteel International SA, Italy
- Toyota Tsusho Corporation, Japan
- Mercuria Energy - Indonesia
- Sakthi Sugars Limited - India
- Mjunction Services Limited - India
- ICICI Bank Limited - India
- Ambuja Cements Ltd - India
- Jaiprakash Power Ventures ltd
- International Coal Ventures Pvt Ltd - India
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- Semirara Mining and Power Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Indian Oil Corporation Limited
- Coal and Oil Company - UAE
- Indika Energy - Indonesia
- Central Electricity Authority - India
- Antam Resourcindo - Indonesia
- Ind-Barath Power Infra Limited - India
- Wood Mackenzie - Singapore
- Parliament of New Zealand
- Edison Trading Spa - Italy
- Indo Tambangraya Megah - Indonesia
- Ceylon Electricity Board - Sri Lanka
- OPG Power Generation Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Sojitz Corporation - Japan
- Neyveli Lignite Corporation Ltd, - India
- Electricity Generating Authority of Thailand
- Port Waratah Coal Services - Australia
- Goldman Sachs - Singapore
- Dalmia Cement Bharat India
- Medco Energi Mining Internasional
- GAC Shipping (India) Pvt Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Krishnapatnam Port Company Ltd. - India
- European Bulk Services B.V. - Netherlands
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