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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, 04 November 21
FASTER DECARBONISATION: BACK TO BASICS FOR THE MINING INDUSTRY? - WOOD MACKENZIE
To the uninitiated, rugby is a technical and complicated game. As young schoolboys it was all a wee bit confusing and we invariably ended up on the ...
Wednesday, 03 November 21
CHINA TO LAUNCH NEW DATA MONITORING SYSTEM, TARGETING COAL MARKET SPECULATION, HOARDING - GLOBAL TIMES
China’s top economic planner announced on Sunday a new data system for supervising the implementation of medium- and long-term contracts of c ...
Wednesday, 03 November 21
CHINA’S STATE PLANNER SAYS COAL SUPPLY IMPROVING, PRICES STABILISING - REUTERS
China’s coal supply situation has seen significant improvement with joint efforts from coal producers, logistics and downstream users, while ...
Wednesday, 03 November 21
HIGHER COKING COAL PRICES TO PARE PROFITABILITY OF STEELMAKERS IN SECOND HALF OF FY22 - CRISIL RATINGS
The operating margin of primary steelmakers will reduce by a third to 24-26% in the second half of this fiscal versus the first half as input cost ...
Wednesday, 03 November 21
MARKET INSIGHT - INTERMODAL
November is here and soon the all time seasonal favorite “all I want or Christmas is you” by Mariah Carey will be played in radio stati ...
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- Coalindo Energy - Indonesia
- Latin American Coal - Colombia
- Indian Oil Corporation Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Indo Tambangraya Megah - Indonesia
- SMG Consultants - Indonesia
- Carbofer General Trading SA - India
- Parry Sugars Refinery, India
- Independent Power Producers Association of India
- Barasentosa Lestari - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Bulk Trading Sa - Switzerland
- Makarim & Taira - Indonesia
- Straits Asia Resources Limited - Singapore
- Kaltim Prima Coal - Indonesia
- Petron Corporation, Philippines
- Indika Energy - Indonesia
- Bukit Baiduri Energy - Indonesia
- Parliament of New Zealand
- Semirara Mining Corp, Philippines
- White Energy Company Limited
- GVK Power & Infra Limited - India
- Bharathi Cement Corporation - India
- Pendopo Energi Batubara - Indonesia
- Borneo Indobara - Indonesia
- Formosa Plastics Group - Taiwan
- Vedanta Resources Plc - India
- Energy Development Corp, Philippines
- Wilmar Investment Holdings
- London Commodity Brokers - England
- Directorate Of Revenue Intelligence - India
- SN Aboitiz Power Inc, Philippines
- Central Electricity Authority - India
- MS Steel International - UAE
- Jaiprakash Power Ventures ltd
- Riau Bara Harum - Indonesia
- Eastern Coal Council - USA
- Krishnapatnam Port Company Ltd. - India
- Gujarat Electricity Regulatory Commission - India
- Economic Council, Georgia
- Kapuas Tunggal Persada - Indonesia
- Vizag Seaport Private Limited - India
- San Jose City I Power Corp, Philippines
- Mjunction Services Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Eastern Energy - Thailand
- GAC Shipping (India) Pvt Ltd
- Gujarat Mineral Development Corp Ltd - India
- India Bulls Power Limited - India
- New Zealand Coal & Carbon
- Kohat Cement Company Ltd. - Pakistan
- Ministry of Transport, Egypt
- Videocon Industries ltd - India
- GN Power Mariveles Coal Plant, Philippines
- GMR Energy Limited - India
- Banpu Public Company Limited - Thailand
- Timah Investasi Mineral - Indoneisa
- Chamber of Mines of South Africa
- Electricity Authority, New Zealand
- ASAPP Information Group - India
- Siam City Cement - Thailand
- Thai Mozambique Logistica
- Merrill Lynch Commodities Europe
- Kartika Selabumi Mining - Indonesia
- Sojitz Corporation - Japan
- Simpson Spence & Young - Indonesia
- Mercuria Energy - Indonesia
- Orica Mining Services - Indonesia
- Orica Australia Pty. Ltd.
- Kumho Petrochemical, South Korea
- The University of Queensland
- Interocean Group of Companies - India
- CNBM International Corporation - China
- Standard Chartered Bank - UAE
- Australian Commodity Traders Exchange
- CIMB Investment Bank - Malaysia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Chettinad Cement Corporation Ltd - India
- ICICI Bank Limited - India
- Mintek Dendrill Indonesia
- Binh Thuan Hamico - Vietnam
- Cement Manufacturers Association - India
- Therma Luzon, Inc, Philippines
- Bhushan Steel Limited - India
- Tata Chemicals Ltd - India
- Madhucon Powers Ltd - India
- Planning Commission, India
- Commonwealth Bank - Australia
- Port Waratah Coal Services - Australia
- Billiton Holdings Pty Ltd - Australia
- Rashtriya Ispat Nigam Limited - India
- Bhoruka Overseas - Indonesia
- Intertek Mineral Services - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Ambuja Cements Ltd - India
- Salva Resources Pvt Ltd - India
- Edison Trading Spa - Italy
- Directorate General of MIneral and Coal - Indonesia
- Sakthi Sugars Limited - India
- The State Trading Corporation of India Ltd
- Ceylon Electricity Board - Sri Lanka
- Cigading International Bulk Terminal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Power Finance Corporation Ltd., India
- The Treasury - Australian Government
- Bayan Resources Tbk. - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Thiess Contractors Indonesia
- Africa Commodities Group - South Africa
- SMC Global Power, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- AsiaOL BioFuels Corp., Philippines
- Jindal Steel & Power Ltd - India
- Energy Link Ltd, New Zealand
- IHS Mccloskey Coal Group - USA
- Romanian Commodities Exchange
- OPG Power Generation Pvt Ltd - India
- Attock Cement Pakistan Limited
- International Coal Ventures Pvt Ltd - India
- Trasteel International SA, Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ind-Barath Power Infra Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sree Jayajothi Cements Limited - India
- Kideco Jaya Agung - Indonesia
- Goldman Sachs - Singapore
- Kepco SPC Power Corporation, Philippines
- Indian Energy Exchange, India
- Iligan Light & Power Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Global Coal Blending Company Limited - Australia
- Aditya Birla Group - India
- Siam City Cement PLC, Thailand
- TeaM Sual Corporation - Philippines
- Gujarat Sidhee Cement - India
- Lanco Infratech Ltd - India
- Bukit Makmur.PT - Indonesia
- Central Java Power - Indonesia
- Essar Steel Hazira Ltd - India
- McConnell Dowell - Australia
- Karaikal Port Pvt Ltd - India
- Georgia Ports Authority, United States
- Leighton Contractors Pty Ltd - Australia
- Semirara Mining and Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- Electricity Generating Authority of Thailand
- Holcim Trading Pte Ltd - Singapore
- Aboitiz Power Corporation - Philippines
- Metalloyd Limited - United Kingdom
- Globalindo Alam Lestari - Indonesia
- Xindia Steels Limited - India
- PTC India Limited - India
- Ministry of Finance - Indonesia
- Anglo American - United Kingdom
- Mercator Lines Limited - India
- Larsen & Toubro Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Meralco Power Generation, Philippines
- Minerals Council of Australia
- Samtan Co., Ltd - South Korea
- Meenaskhi Energy Private Limited - India
- VISA Power Limited - India
- Indogreen Group - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Tamil Nadu electricity Board
- PetroVietnam Power Coal Import and Supply Company
- LBH Netherlands Bv - Netherlands
- PNOC Exploration Corporation - Philippines
- Global Business Power Corporation, Philippines
- Wood Mackenzie - Singapore
- Bukit Asam (Persero) Tbk - Indonesia
- Grasim Industreis Ltd - India
- Maheswari Brothers Coal Limited - India
- Price Waterhouse Coopers - Russia
- Uttam Galva Steels Limited - India
- Medco Energi Mining Internasional
- Kobexindo Tractors - Indoneisa
- Coal and Oil Company - UAE
- Star Paper Mills Limited - India
- South Luzon Thermal Energy Corporation
- Baramulti Group, Indonesia
- Sical Logistics Limited - India
- Agrawal Coal Company - India
- Global Green Power PLC Corporation, Philippines
- Sindya Power Generating Company Private Ltd
- Asmin Koalindo Tuhup - Indonesia
- Oldendorff Carriers - Singapore
- Marubeni Corporation - India
- Sinarmas Energy and Mining - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Singapore Mercantile Exchange
- Posco Energy - South Korea
- Deloitte Consulting - India
- Toyota Tsusho Corporation, Japan
- Altura Mining Limited, Indonesia
- Heidelberg Cement - Germany
- Indonesian Coal Mining Association
- Jorong Barutama Greston.PT - Indonesia
- Bangladesh Power Developement Board
- Manunggal Multi Energi - Indonesia
- Sarangani Energy Corporation, Philippines
- Ministry of Mines - Canada
- European Bulk Services B.V. - Netherlands
- Australian Coal Association
- Alfred C Toepfer International GmbH - Germany
- Rio Tinto Coal - Australia
- Maharashtra Electricity Regulatory Commission - India
- Dalmia Cement Bharat India
- Savvy Resources Ltd - HongKong
- Malabar Cements Ltd - India
- Antam Resourcindo - Indonesia
- Bhatia International Limited - India
- PowerSource Philippines DevCo
- Renaissance Capital - South Africa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- IEA Clean Coal Centre - UK
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