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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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Thursday, 27 January 22
2022 - A YEAR OF REBALANCING FOR METALS AND MINING - WOOD MACKENZIE
If 2021 was the year of rebound for metals and mining (M&M) commodities, then 2022 is shaping as the year of rebalance, says Wood Mackenzie, a ...
Wednesday, 26 January 22
MARKET INSIGHT - INTERMODAL
While it is logical that most of the S&P reports of the first weeks of the year are linked to very limited activity as reflected in the weekly ...
Wednesday, 26 January 22
INDONESIA: DME PROJECT IS ECONOMICALLY VIABLE AS STUDY DEMONSTRATES
The government is encouraging downstream coal processing or increase in coal added value, for example by turning coal into Dimethyl Ether (DME) to ...
Wednesday, 26 January 22
COMMODITY PRICES COULD SOAR IF THE RUSSIA-UKRAINE CRISIS ESCALATES - ING
It appears that a number of commodity markets are starting to at least price in some geopolitical risk around the growing tension between Russia an ...
Wednesday, 26 January 22
INDONESIA'S COAL BAN SENDS PRICES SOARING, OTHER EXPORTERS FAIL TO STEP UP - REUTERS
Indonesia’s short-lived ban on exporting coal has sent ructions through the seaborne market for the fuel in Asia, with the fallout likely to ...
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- Kumho Petrochemical, South Korea
- South Luzon Thermal Energy Corporation
- Bahari Cakrawala Sebuku - Indonesia
- GMR Energy Limited - India
- Coal and Oil Company - UAE
- Chettinad Cement Corporation Ltd - India
- Indogreen Group - Indonesia
- Dalmia Cement Bharat India
- Standard Chartered Bank - UAE
- Essar Steel Hazira Ltd - India
- Vedanta Resources Plc - India
- Ministry of Mines - Canada
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Maheswari Brothers Coal Limited - India
- Latin American Coal - Colombia
- Bhatia International Limited - India
- Africa Commodities Group - South Africa
- Meralco Power Generation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- Tamil Nadu electricity Board
- The State Trading Corporation of India Ltd
- Oldendorff Carriers - Singapore
- Rashtriya Ispat Nigam Limited - India
- Parliament of New Zealand
- Krishnapatnam Port Company Ltd. - India
- Banpu Public Company Limited - Thailand
- Kideco Jaya Agung - Indonesia
- Indian Oil Corporation Limited
- Therma Luzon, Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Mjunction Services Limited - India
- Sarangani Energy Corporation, Philippines
- Thai Mozambique Logistica
- SMC Global Power, Philippines
- Orica Mining Services - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMG Consultants - Indonesia
- Bukit Makmur.PT - Indonesia
- Romanian Commodities Exchange
- Kohat Cement Company Ltd. - Pakistan
- Kepco SPC Power Corporation, Philippines
- Antam Resourcindo - Indonesia
- Price Waterhouse Coopers - Russia
- Carbofer General Trading SA - India
- Eastern Energy - Thailand
- OPG Power Generation Pvt Ltd - India
- Bhushan Steel Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- MS Steel International - UAE
- Meenaskhi Energy Private Limited - India
- Interocean Group of Companies - India
- Sree Jayajothi Cements Limited - India
- Jaiprakash Power Ventures ltd
- TeaM Sual Corporation - Philippines
- PTC India Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Baramulti Group, Indonesia
- Cement Manufacturers Association - India
- Edison Trading Spa - Italy
- Gujarat Electricity Regulatory Commission - India
- Anglo American - United Kingdom
- Formosa Plastics Group - Taiwan
- Videocon Industries ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Madhucon Powers Ltd - India
- Ceylon Electricity Board - Sri Lanka
- Grasim Industreis Ltd - India
- VISA Power Limited - India
- Global Green Power PLC Corporation, Philippines
- Heidelberg Cement - Germany
- Metalloyd Limited - United Kingdom
- Simpson Spence & Young - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Energy Development Corp, Philippines
- Marubeni Corporation - India
- SN Aboitiz Power Inc, Philippines
- Sakthi Sugars Limited - India
- Global Coal Blending Company Limited - Australia
- Electricity Authority, New Zealand
- Pendopo Energi Batubara - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Billiton Holdings Pty Ltd - Australia
- San Jose City I Power Corp, Philippines
- Leighton Contractors Pty Ltd - Australia
- Timah Investasi Mineral - Indoneisa
- Minerals Council of Australia
- Globalindo Alam Lestari - Indonesia
- LBH Netherlands Bv - Netherlands
- Wilmar Investment Holdings
- Borneo Indobara - Indonesia
- Star Paper Mills Limited - India
- Independent Power Producers Association of India
- Ambuja Cements Ltd - India
- CIMB Investment Bank - Malaysia
- White Energy Company Limited
- Samtan Co., Ltd - South Korea
- Altura Mining Limited, Indonesia
- CNBM International Corporation - China
- GN Power Mariveles Coal Plant, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Coalindo Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Bhoruka Overseas - Indonesia
- Mercuria Energy - Indonesia
- Planning Commission, India
- Cigading International Bulk Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Sindya Power Generating Company Private Ltd
- Directorate General of MIneral and Coal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Aboitiz Power Corporation - Philippines
- Trasteel International SA, Italy
- Parry Sugars Refinery, India
- Aditya Birla Group - India
- Central Java Power - Indonesia
- Singapore Mercantile Exchange
- PNOC Exploration Corporation - Philippines
- Central Electricity Authority - India
- Port Waratah Coal Services - Australia
- Barasentosa Lestari - Indonesia
- Jindal Steel & Power Ltd - India
- Siam City Cement - Thailand
- Indonesian Coal Mining Association
- The Treasury - Australian Government
- Maharashtra Electricity Regulatory Commission - India
- Makarim & Taira - Indonesia
- Indo Tambangraya Megah - Indonesia
- The University of Queensland
- Karaikal Port Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Australian Commodity Traders Exchange
- Semirara Mining and Power Corporation, Philippines
- Uttam Galva Steels Limited - India
- Tata Chemicals Ltd - India
- Directorate Of Revenue Intelligence - India
- Manunggal Multi Energi - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- GAC Shipping (India) Pvt Ltd
- Neyveli Lignite Corporation Ltd, - India
- Georgia Ports Authority, United States
- Mintek Dendrill Indonesia
- Kaltim Prima Coal - Indonesia
- Rio Tinto Coal - Australia
- London Commodity Brokers - England
- New Zealand Coal & Carbon
- ASAPP Information Group - India
- Petron Corporation, Philippines
- Indian Energy Exchange, India
- Bulk Trading Sa - Switzerland
- Vizag Seaport Private Limited - India
- Australian Coal Association
- Lanco Infratech Ltd - India
- Gujarat Sidhee Cement - India
- Xindia Steels Limited - India
- AsiaOL BioFuels Corp., Philippines
- Attock Cement Pakistan Limited
- ICICI Bank Limited - India
- Gujarat Mineral Development Corp Ltd - India
- GVK Power & Infra Limited - India
- Agrawal Coal Company - India
- Savvy Resources Ltd - HongKong
- Salva Resources Pvt Ltd - India
- Thiess Contractors Indonesia
- Miang Besar Coal Terminal - Indonesia
- Kobexindo Tractors - Indoneisa
- Orica Australia Pty. Ltd.
- Semirara Mining Corp, Philippines
- Bukit Baiduri Energy - Indonesia
- Electricity Generating Authority of Thailand
- IEA Clean Coal Centre - UK
- Posco Energy - South Korea
- Toyota Tsusho Corporation, Japan
- Alfred C Toepfer International GmbH - Germany
- TNB Fuel Sdn Bhd - Malaysia
- Ministry of Transport, Egypt
- Vijayanagar Sugar Pvt Ltd - India
- Renaissance Capital - South Africa
- PowerSource Philippines DevCo
- Binh Thuan Hamico - Vietnam
- Deloitte Consulting - India
- International Coal Ventures Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Sical Logistics Limited - India
- McConnell Dowell - Australia
- Merrill Lynch Commodities Europe
- Iligan Light & Power Inc, Philippines
- Chamber of Mines of South Africa
- Malabar Cements Ltd - India
- Intertek Mineral Services - Indonesia
- Siam City Cement PLC, Thailand
- European Bulk Services B.V. - Netherlands
- India Bulls Power Limited - India
- Mercator Lines Limited - India
- Larsen & Toubro Limited - India
- Sojitz Corporation - Japan
- Eastern Coal Council - USA
- Kapuas Tunggal Persada - Indonesia
- Power Finance Corporation Ltd., India
- Global Business Power Corporation, Philippines
- Goldman Sachs - Singapore
- Medco Energi Mining Internasional
- Indika Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Ministry of Finance - Indonesia
- Wood Mackenzie - Singapore
- Economic Council, Georgia
- Bharathi Cement Corporation - India
- Coastal Gujarat Power Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Offshore Bulk Terminal Pte Ltd, Singapore
- IHS Mccloskey Coal Group - USA
- Bangladesh Power Developement Board
- Commonwealth Bank - Australia
- Asmin Koalindo Tuhup - Indonesia
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