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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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- Semirara Mining and Power Corporation, Philippines
- Therma Luzon, Inc, Philippines
- India Bulls Power Limited - India
- Dalmia Cement Bharat India
- Kobexindo Tractors - Indoneisa
- VISA Power Limited - India
- Price Waterhouse Coopers - Russia
- Power Finance Corporation Ltd., India
- Economic Council, Georgia
- Rashtriya Ispat Nigam Limited - India
- Sindya Power Generating Company Private Ltd
- Central Electricity Authority - India
- Bangladesh Power Developement Board
- Essar Steel Hazira Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Kumho Petrochemical, South Korea
- Kepco SPC Power Corporation, Philippines
- International Coal Ventures Pvt Ltd - India
- Samtan Co., Ltd - South Korea
- Indonesian Coal Mining Association
- CIMB Investment Bank - Malaysia
- Iligan Light & Power Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Ministry of Finance - Indonesia
- CNBM International Corporation - China
- San Jose City I Power Corp, Philippines
- Bharathi Cement Corporation - India
- Globalindo Alam Lestari - Indonesia
- Binh Thuan Hamico - Vietnam
- McConnell Dowell - Australia
- Georgia Ports Authority, United States
- Borneo Indobara - Indonesia
- Sical Logistics Limited - India
- Bulk Trading Sa - Switzerland
- PNOC Exploration Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Videocon Industries ltd - India
- Karaikal Port Pvt Ltd - India
- ASAPP Information Group - India
- Indogreen Group - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Ministry of Mines - Canada
- Antam Resourcindo - Indonesia
- Tata Chemicals Ltd - India
- Sarangani Energy Corporation, Philippines
- Barasentosa Lestari - Indonesia
- Cement Manufacturers Association - India
- Indian Energy Exchange, India
- Pendopo Energi Batubara - Indonesia
- Bhatia International Limited - India
- Maheswari Brothers Coal Limited - India
- Siam City Cement PLC, Thailand
- Oldendorff Carriers - Singapore
- Uttam Galva Steels Limited - India
- Deloitte Consulting - India
- Kideco Jaya Agung - Indonesia
- Kaltim Prima Coal - Indonesia
- Baramulti Group, Indonesia
- Edison Trading Spa - Italy
- Directorate Of Revenue Intelligence - India
- Orica Australia Pty. Ltd.
- PowerSource Philippines DevCo
- Global Coal Blending Company Limited - Australia
- Bayan Resources Tbk. - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Indian Oil Corporation Limited
- Bahari Cakrawala Sebuku - Indonesia
- Independent Power Producers Association of India
- Goldman Sachs - Singapore
- TNB Fuel Sdn Bhd - Malaysia
- Thai Mozambique Logistica
- Intertek Mineral Services - Indonesia
- Krishnapatnam Port Company Ltd. - India
- The Treasury - Australian Government
- Gujarat Sidhee Cement - India
- Petrochimia International Co. Ltd.- Taiwan
- Indo Tambangraya Megah - Indonesia
- Energy Link Ltd, New Zealand
- SN Aboitiz Power Inc, Philippines
- Global Business Power Corporation, Philippines
- AsiaOL BioFuels Corp., Philippines
- Kapuas Tunggal Persada - Indonesia
- ICICI Bank Limited - India
- Altura Mining Limited, Indonesia
- Manunggal Multi Energi - Indonesia
- Bukit Baiduri Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Makarim & Taira - Indonesia
- Mercuria Energy - Indonesia
- Malabar Cements Ltd - India
- Wood Mackenzie - Singapore
- Simpson Spence & Young - Indonesia
- GMR Energy Limited - India
- White Energy Company Limited
- Siam City Cement - Thailand
- Toyota Tsusho Corporation, Japan
- London Commodity Brokers - England
- Parliament of New Zealand
- Kartika Selabumi Mining - Indonesia
- Interocean Group of Companies - India
- Asmin Koalindo Tuhup - Indonesia
- Coastal Gujarat Power Limited - India
- Meralco Power Generation, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- Standard Chartered Bank - UAE
- Jaiprakash Power Ventures ltd
- Vizag Seaport Private Limited - India
- Port Waratah Coal Services - Australia
- Thiess Contractors Indonesia
- Lanco Infratech Ltd - India
- Sree Jayajothi Cements Limited - India
- Global Green Power PLC Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Jindal Steel & Power Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Coal and Oil Company - UAE
- Timah Investasi Mineral - Indoneisa
- Sojitz Corporation - Japan
- Planning Commission, India
- PTC India Limited - India
- Wilmar Investment Holdings
- Bhushan Steel Limited - India
- Eastern Energy - Thailand
- OPG Power Generation Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- European Bulk Services B.V. - Netherlands
- Attock Cement Pakistan Limited
- Xindia Steels Limited - India
- Carbofer General Trading SA - India
- Banpu Public Company Limited - Thailand
- Australian Commodity Traders Exchange
- Formosa Plastics Group - Taiwan
- Chamber of Mines of South Africa
- Marubeni Corporation - India
- GAC Shipping (India) Pvt Ltd
- Petron Corporation, Philippines
- Commonwealth Bank - Australia
- Billiton Holdings Pty Ltd - Australia
- Africa Commodities Group - South Africa
- Bukit Asam (Persero) Tbk - Indonesia
- Coalindo Energy - Indonesia
- Trasteel International SA, Italy
- Mintek Dendrill Indonesia
- Miang Besar Coal Terminal - Indonesia
- Mjunction Services Limited - India
- The State Trading Corporation of India Ltd
- Aboitiz Power Corporation - Philippines
- Renaissance Capital - South Africa
- Bukit Makmur.PT - Indonesia
- Straits Asia Resources Limited - Singapore
- Savvy Resources Ltd - HongKong
- Metalloyd Limited - United Kingdom
- GVK Power & Infra Limited - India
- Madhucon Powers Ltd - India
- Central Java Power - Indonesia
- Parry Sugars Refinery, India
- Indika Energy - Indonesia
- Aditya Birla Group - India
- Riau Bara Harum - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Grasim Industreis Ltd - India
- Posco Energy - South Korea
- MS Steel International - UAE
- Electricity Generating Authority of Thailand
- SMG Consultants - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Merrill Lynch Commodities Europe
- The University of Queensland
- Rio Tinto Coal - Australia
- Meenaskhi Energy Private Limited - India
- Holcim Trading Pte Ltd - Singapore
- Mercator Lines Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Energy Development Corp, Philippines
- Orica Mining Services - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Leighton Contractors Pty Ltd - Australia
- Ministry of Transport, Egypt
- Star Paper Mills Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Latin American Coal - Colombia
- Pipit Mutiara Jaya. PT, Indonesia
- Australian Coal Association
- Bhoruka Overseas - Indonesia
- IEA Clean Coal Centre - UK
- Alfred C Toepfer International GmbH - Germany
- Salva Resources Pvt Ltd - India
- Medco Energi Mining Internasional
- Minerals Council of Australia
- Singapore Mercantile Exchange
- South Luzon Thermal Energy Corporation
- Heidelberg Cement - Germany
- Larsen & Toubro Limited - India
- Anglo American - United Kingdom
- New Zealand Coal & Carbon
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- LBH Netherlands Bv - Netherlands
- Ind-Barath Power Infra Limited - India
- Eastern Coal Council - USA
- Romanian Commodities Exchange
- Gujarat Mineral Development Corp Ltd - India
- Tamil Nadu electricity Board
- Semirara Mining Corp, Philippines
- Electricity Authority, New Zealand
- Ambuja Cements Ltd - India
- TeaM Sual Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Sakthi Sugars Limited - India
- Jorong Barutama Greston.PT - Indonesia
- SMC Global Power, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Agrawal Coal Company - India
- Neyveli Lignite Corporation Ltd, - India
- Chettinad Cement Corporation Ltd - India
- Vedanta Resources Plc - India
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