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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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Wednesday, 24 November 21
WHY THIS MINING ANALYST IS UPBEAT ON THE IRON ORE PRICE FORECAST - MOTLEY FOOL
In many ways, 2021 can be called the year of the iron ore price. Much of the talk of the ASX town this year has revolved around this key economic m ...
Wednesday, 24 November 21
PRICE OF CHINA’S COAL FUTURE DROPS BY 60% AS NATIONWIDE DAILY OUTPUT REACHES OVER 12 MILLION TONS: NDRC - GLOBAL TIMES
China’s daily coal output has now stabilized after reaching over 12 million tons and the price of coal futures has declined to 800 yuan ($125 ...
Friday, 19 November 21
CHINA: COAL SUPPLIES TO STABILIZE FOR COMING COLD SEASON
China is capable of ensuring stable coal supplies this winter and next spring with the increase in coal production and the rising stockpiles at pow ...
Wednesday, 17 November 21
MARKET INSIGHT - INTERMODAL
It has been another declining week for the dry bulk market and evidently, we are seeing asset values gradually losing momentum as well. Following a ...
Tuesday, 16 November 21
EARNINGS RECOVERY IN INDONESIAN COAL TO CONTINUE THROUGH 2021, BUT SLOW IN 2022 - FITCH RATINGS
The recovery in the operating and financial performance of Indonesian coal miners and coal contractors is likely to slow in 2022, but coal prices s ...
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- Trasteel International SA, Italy
- Tamil Nadu electricity Board
- Aditya Birla Group - India
- Asmin Koalindo Tuhup - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement PLC, Thailand
- Electricity Generating Authority of Thailand
- Indian Energy Exchange, India
- Jorong Barutama Greston.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Port Waratah Coal Services - Australia
- CNBM International Corporation - China
- Economic Council, Georgia
- Pendopo Energi Batubara - Indonesia
- Therma Luzon, Inc, Philippines
- Attock Cement Pakistan Limited
- Karaikal Port Pvt Ltd - India
- Ministry of Mines - Canada
- Vedanta Resources Plc - India
- Aboitiz Power Corporation - Philippines
- Thiess Contractors Indonesia
- Semirara Mining and Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Xindia Steels Limited - India
- Meenaskhi Energy Private Limited - India
- Bangladesh Power Developement Board
- Binh Thuan Hamico - Vietnam
- PowerSource Philippines DevCo
- Krishnapatnam Port Company Ltd. - India
- Directorate Of Revenue Intelligence - India
- Holcim Trading Pte Ltd - Singapore
- Sojitz Corporation - Japan
- Sical Logistics Limited - India
- Indonesian Coal Mining Association
- TeaM Sual Corporation - Philippines
- Bhushan Steel Limited - India
- Power Finance Corporation Ltd., India
- Sree Jayajothi Cements Limited - India
- Iligan Light & Power Inc, Philippines
- Electricity Authority, New Zealand
- Star Paper Mills Limited - India
- Indo Tambangraya Megah - Indonesia
- Sakthi Sugars Limited - India
- Wilmar Investment Holdings
- European Bulk Services B.V. - Netherlands
- Altura Mining Limited, Indonesia
- Chettinad Cement Corporation Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Anglo American - United Kingdom
- Global Business Power Corporation, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Riau Bara Harum - Indonesia
- Global Coal Blending Company Limited - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Pipit Mutiara Jaya. PT, Indonesia
- Georgia Ports Authority, United States
- IHS Mccloskey Coal Group - USA
- Maharashtra Electricity Regulatory Commission - India
- Ministry of Transport, Egypt
- Eastern Energy - Thailand
- Miang Besar Coal Terminal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Planning Commission, India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Edison Trading Spa - Italy
- Ind-Barath Power Infra Limited - India
- Renaissance Capital - South Africa
- Price Waterhouse Coopers - Russia
- Kepco SPC Power Corporation, Philippines
- Alfred C Toepfer International GmbH - Germany
- PNOC Exploration Corporation - Philippines
- Mintek Dendrill Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Meralco Power Generation, Philippines
- Cement Manufacturers Association - India
- Independent Power Producers Association of India
- Oldendorff Carriers - Singapore
- White Energy Company Limited
- Rio Tinto Coal - Australia
- Chamber of Mines of South Africa
- Toyota Tsusho Corporation, Japan
- LBH Netherlands Bv - Netherlands
- Thai Mozambique Logistica
- Bayan Resources Tbk. - Indonesia
- Australian Commodity Traders Exchange
- Petron Corporation, Philippines
- Vizag Seaport Private Limited - India
- MS Steel International - UAE
- PTC India Limited - India
- Posco Energy - South Korea
- Latin American Coal - Colombia
- Marubeni Corporation - India
- Timah Investasi Mineral - Indoneisa
- Dalmia Cement Bharat India
- Metalloyd Limited - United Kingdom
- IEA Clean Coal Centre - UK
- Bukit Asam (Persero) Tbk - Indonesia
- Essar Steel Hazira Ltd - India
- ASAPP Information Group - India
- Simpson Spence & Young - Indonesia
- Central Java Power - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Heidelberg Cement - Germany
- Indian Oil Corporation Limited
- Mercuria Energy - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Savvy Resources Ltd - HongKong
- PetroVietnam Power Coal Import and Supply Company
- The Treasury - Australian Government
- Interocean Group of Companies - India
- Siam City Cement - Thailand
- Coastal Gujarat Power Limited - India
- ICICI Bank Limited - India
- Orica Australia Pty. Ltd.
- Commonwealth Bank - Australia
- GVK Power & Infra Limited - India
- Bulk Trading Sa - Switzerland
- Africa Commodities Group - South Africa
- VISA Power Limited - India
- Grasim Industreis Ltd - India
- Medco Energi Mining Internasional
- Kaltim Prima Coal - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Malabar Cements Ltd - India
- Bukit Baiduri Energy - Indonesia
- Makarim & Taira - Indonesia
- GAC Shipping (India) Pvt Ltd
- The University of Queensland
- London Commodity Brokers - England
- Coalindo Energy - Indonesia
- Uttam Galva Steels Limited - India
- Australian Coal Association
- Lanco Infratech Ltd - India
- Wood Mackenzie - Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Gujarat Electricity Regulatory Commission - India
- Sarangani Energy Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Romanian Commodities Exchange
- Karbindo Abesyapradhi - Indoneisa
- Larsen & Toubro Limited - India
- Gujarat Sidhee Cement - India
- Bahari Cakrawala Sebuku - Indonesia
- Bhatia International Limited - India
- Central Electricity Authority - India
- Samtan Co., Ltd - South Korea
- Energy Link Ltd, New Zealand
- Sinarmas Energy and Mining - Indonesia
- Agrawal Coal Company - India
- Singapore Mercantile Exchange
- Indogreen Group - Indonesia
- OPG Power Generation Pvt Ltd - India
- SMG Consultants - Indonesia
- Deloitte Consulting - India
- India Bulls Power Limited - India
- Eastern Coal Council - USA
- Kobexindo Tractors - Indoneisa
- Parry Sugars Refinery, India
- Jindal Steel & Power Ltd - India
- Mjunction Services Limited - India
- GMR Energy Limited - India
- Kumho Petrochemical, South Korea
- The State Trading Corporation of India Ltd
- Minerals Council of Australia
- Standard Chartered Bank - UAE
- CIMB Investment Bank - Malaysia
- Coal and Oil Company - UAE
- Antam Resourcindo - Indonesia
- Barasentosa Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Maheswari Brothers Coal Limited - India
- Videocon Industries ltd - India
- Formosa Plastics Group - Taiwan
- McConnell Dowell - Australia
- Global Green Power PLC Corporation, Philippines
- Baramulti Group, Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Globalindo Alam Lestari - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Mercator Lines Limited - India
- Goldman Sachs - Singapore
- SN Aboitiz Power Inc, Philippines
- Intertek Mineral Services - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Ambuja Cements Ltd - India
- Madhucon Powers Ltd - India
- New Zealand Coal & Carbon
- Parliament of New Zealand
- Salva Resources Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- SMC Global Power, Philippines
- Bharathi Cement Corporation - India
- Semirara Mining Corp, Philippines
- Tata Chemicals Ltd - India
- Borneo Indobara - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Energy Development Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Manunggal Multi Energi - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- Orica Mining Services - Indonesia
- Merrill Lynch Commodities Europe
- Kapuas Tunggal Persada - Indonesia
- Carbofer General Trading SA - India
- San Jose City I Power Corp, Philippines
- South Luzon Thermal Energy Corporation
- Ministry of Finance - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Jaiprakash Power Ventures ltd
- Bukit Makmur.PT - Indonesia
- Indika Energy - Indonesia
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