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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, 21 January 22
CHINA'S POWER TRADING TARIFFS TO RISE IN 2022 - FITCH RATINGS
Rising trading volume and higher-than-benchmark tariffs in the 2022 bilateral contracts signed between Chinese power generation companies (gencos) ...
Thursday, 20 January 22
CHINESE COAL JUMPS OVER 6% ON PRE-HOLIDAY SUPPLY WORRY - REUTERS
China’s thermal coal futures soared more than 6% on Wednesday, hitting a level last seen in late November as investors grew concerned over ti ...
Thursday, 20 January 22
VIETNAM: COAL SECTOR SEES POSITIVE PROSPECT IN 2022 - VNA
With many signs of rising demand for coal in various economic sectors in 2022, the Vietnam National Coal – Mineral Industries Group (Vinacomi ...
Wednesday, 19 January 22
MARKET INSIGHT - INTERMODAL
Since the beginning of the year, we have been witnessing the BDI correcting downwards with sizable drops across all segments. Latest similar levels ...
Sunday, 09 January 22
INDONESIA MINISTER SAYS 'EMERGENCY OVER' ON COAL SUPPLY CRUNCH - REUTERS
Indonesia’s power emergency which has triggered a coal export ban is over but the government will still continue to discuss policies in this ...
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- Ministry of Mines - Canada
- Indo Tambangraya Megah - Indonesia
- Petron Corporation, Philippines
- Electricity Authority, New Zealand
- Medco Energi Mining Internasional
- European Bulk Services B.V. - Netherlands
- San Jose City I Power Corp, Philippines
- Orica Australia Pty. Ltd.
- Agrawal Coal Company - India
- SMG Consultants - Indonesia
- Jindal Steel & Power Ltd - India
- Independent Power Producers Association of India
- Neyveli Lignite Corporation Ltd, - India
- International Coal Ventures Pvt Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Barasentosa Lestari - Indonesia
- Dalmia Cement Bharat India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indika Energy - Indonesia
- Renaissance Capital - South Africa
- Maheswari Brothers Coal Limited - India
- Heidelberg Cement - Germany
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Coalindo Energy - Indonesia
- Aditya Birla Group - India
- Merrill Lynch Commodities Europe
- Ceylon Electricity Board - Sri Lanka
- Meenaskhi Energy Private Limited - India
- Interocean Group of Companies - India
- Pipit Mutiara Jaya. PT, Indonesia
- South Luzon Thermal Energy Corporation
- Star Paper Mills Limited - India
- Makarim & Taira - Indonesia
- Bhatia International Limited - India
- Bulk Trading Sa - Switzerland
- Standard Chartered Bank - UAE
- Parry Sugars Refinery, India
- Siam City Cement - Thailand
- Pendopo Energi Batubara - Indonesia
- VISA Power Limited - India
- Ministry of Transport, Egypt
- Marubeni Corporation - India
- Carbofer General Trading SA - India
- GVK Power & Infra Limited - India
- Sree Jayajothi Cements Limited - India
- Cement Manufacturers Association - India
- Jorong Barutama Greston.PT - Indonesia
- Central Java Power - Indonesia
- Indonesian Coal Mining Association
- Thiess Contractors Indonesia
- Gujarat Electricity Regulatory Commission - India
- Grasim Industreis Ltd - India
- Sojitz Corporation - Japan
- Mercator Lines Limited - India
- Lanco Infratech Ltd - India
- Tamil Nadu electricity Board
- Gujarat Mineral Development Corp Ltd - India
- Bangladesh Power Developement Board
- Tata Chemicals Ltd - India
- Indian Oil Corporation Limited
- Central Electricity Authority - India
- Vizag Seaport Private Limited - India
- Straits Asia Resources Limited - Singapore
- ICICI Bank Limited - India
- Minerals Council of Australia
- Kideco Jaya Agung - Indonesia
- Simpson Spence & Young - Indonesia
- OPG Power Generation Pvt Ltd - India
- Coal and Oil Company - UAE
- Bukit Makmur.PT - Indonesia
- Antam Resourcindo - Indonesia
- Trasteel International SA, Italy
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Directorate General of MIneral and Coal - Indonesia
- Mercuria Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- CNBM International Corporation - China
- Formosa Plastics Group - Taiwan
- PTC India Limited - India
- Kapuas Tunggal Persada - Indonesia
- IHS Mccloskey Coal Group - USA
- Bharathi Cement Corporation - India
- Kohat Cement Company Ltd. - Pakistan
- Intertek Mineral Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Meralco Power Generation, Philippines
- McConnell Dowell - Australia
- GMR Energy Limited - India
- Aboitiz Power Corporation - Philippines
- Borneo Indobara - Indonesia
- Romanian Commodities Exchange
- Global Business Power Corporation, Philippines
- Mjunction Services Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Global Green Power PLC Corporation, Philippines
- Chamber of Mines of South Africa
- Billiton Holdings Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- New Zealand Coal & Carbon
- Kepco SPC Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Rio Tinto Coal - Australia
- Banpu Public Company Limited - Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Essar Steel Hazira Ltd - India
- Samtan Co., Ltd - South Korea
- Salva Resources Pvt Ltd - India
- Riau Bara Harum - Indonesia
- Coastal Gujarat Power Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Miang Besar Coal Terminal - Indonesia
- Videocon Industries ltd - India
- Edison Trading Spa - Italy
- Jaiprakash Power Ventures ltd
- Karaikal Port Pvt Ltd - India
- Orica Mining Services - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Sical Logistics Limited - India
- Bukit Baiduri Energy - Indonesia
- Kumho Petrochemical, South Korea
- SN Aboitiz Power Inc, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Malabar Cements Ltd - India
- Ambuja Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Energy Development Corp, Philippines
- Manunggal Multi Energi - Indonesia
- ASAPP Information Group - India
- Posco Energy - South Korea
- London Commodity Brokers - England
- Globalindo Alam Lestari - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Georgia Ports Authority, United States
- Ind-Barath Power Infra Limited - India
- Therma Luzon, Inc, Philippines
- Energy Link Ltd, New Zealand
- Wilmar Investment Holdings
- Uttam Galva Steels Limited - India
- Global Coal Blending Company Limited - Australia
- Gujarat Sidhee Cement - India
- Mintek Dendrill Indonesia
- Bhoruka Overseas - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Goldman Sachs - Singapore
- GAC Shipping (India) Pvt Ltd
- Kartika Selabumi Mining - Indonesia
- Baramulti Group, Indonesia
- Siam City Cement PLC, Thailand
- Sakthi Sugars Limited - India
- Larsen & Toubro Limited - India
- The Treasury - Australian Government
- Attock Cement Pakistan Limited
- PetroVietnam Power Coal Import and Supply Company
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The University of Queensland
- Australian Commodity Traders Exchange
- Semirara Mining Corp, Philippines
- Planning Commission, India
- AsiaOL BioFuels Corp., Philippines
- Altura Mining Limited, Indonesia
- Thai Mozambique Logistica
- Directorate Of Revenue Intelligence - India
- Parliament of New Zealand
- Electricity Generating Authority of Thailand
- Latin American Coal - Colombia
- Port Waratah Coal Services - Australia
- The State Trading Corporation of India Ltd
- Chettinad Cement Corporation Ltd - India
- LBH Netherlands Bv - Netherlands
- MS Steel International - UAE
- Commonwealth Bank - Australia
- Leighton Contractors Pty Ltd - Australia
- Anglo American - United Kingdom
- Savvy Resources Ltd - HongKong
- CIMB Investment Bank - Malaysia
- Cigading International Bulk Terminal - Indonesia
- Bhushan Steel Limited - India
- Indian Energy Exchange, India
- Kaltim Prima Coal - Indonesia
- Sindya Power Generating Company Private Ltd
- SMC Global Power, Philippines
- Bayan Resources Tbk. - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Toyota Tsusho Corporation, Japan
- Iligan Light & Power Inc, Philippines
- Deloitte Consulting - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Eastern Energy - Thailand
- Indogreen Group - Indonesia
- Economic Council, Georgia
- Africa Commodities Group - South Africa
- TeaM Sual Corporation - Philippines
- Australian Coal Association
- Vedanta Resources Plc - India
- Madhucon Powers Ltd - India
- PowerSource Philippines DevCo
- PNOC Exploration Corporation - Philippines
- Singapore Mercantile Exchange
- Binh Thuan Hamico - Vietnam
- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- Oldendorff Carriers - Singapore
- Xindia Steels Limited - India
- Timah Investasi Mineral - Indoneisa
- Alfred C Toepfer International GmbH - Germany
- TNB Fuel Sdn Bhd - Malaysia
- Sarangani Energy Corporation, Philippines
- Power Finance Corporation Ltd., India
- Eastern Coal Council - USA
- White Energy Company Limited
- Krishnapatnam Port Company Ltd. - India
- Sinarmas Energy and Mining - Indonesia
- Wood Mackenzie - Singapore
- India Bulls Power Limited - India
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