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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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Monday, 25 October 21
A QUESTION OF POSSESSION - THE BALTIC EXCHANGE
Possession and tangibility are closely related concepts long established under English law. Yet a change to these concepts is around the corner. Th ...
Monday, 25 October 21
CHINA VOWS TO SEVERELY PUNISH MARKET VIOLATIONS AMID LOW COAL FUTURES PRICES - GLOBAL TIMES
Domestic coal futures had plunged for three consecutive trading days after the government vowed to crack down on soaring prices, and China’s ...
Monday, 25 October 21
FARMERS MAY JOIN THE COAL COMMODITY MARKET TO REDUCE RISKS - GLOBAL TIMES
A recent trip to by the Global Times to East China’s Shandong Province to get a glimpse of China’s coal supply chain revealed a surpris ...
Monday, 25 October 21
CHINA COAL PRICES MARK WORST WEEK SINCE MAY ON GOVERNMENT INTERVENTION - REUTERS
China’s thermal coal futures plunged on Friday and turned in their worst week in five months, following Beijing’s strongest interventio ...
Friday, 22 October 21
THE BIG PICTURE: ENERGY MARKETS - BREAK WAVE ADVISORS
The shipping markets have been pulled further into wild markets of coal and other energy sources. Given how nebulous this sector is, it’s alw ...
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- Vedanta Resources Plc - India
- Indonesian Coal Mining Association
- Bukit Makmur.PT - Indonesia
- Therma Luzon, Inc, Philippines
- Bangladesh Power Developement Board
- Coal and Oil Company - UAE
- Jindal Steel & Power Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Malabar Cements Ltd - India
- Riau Bara Harum - Indonesia
- Formosa Plastics Group - Taiwan
- IEA Clean Coal Centre - UK
- GN Power Mariveles Coal Plant, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Offshore Bulk Terminal Pte Ltd, Singapore
- Mintek Dendrill Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Economic Council, Georgia
- Bhatia International Limited - India
- Sakthi Sugars Limited - India
- Kideco Jaya Agung - Indonesia
- Anglo American - United Kingdom
- European Bulk Services B.V. - Netherlands
- Wilmar Investment Holdings
- GAC Shipping (India) Pvt Ltd
- Asmin Koalindo Tuhup - Indonesia
- Posco Energy - South Korea
- Indika Energy - Indonesia
- Indian Oil Corporation Limited
- Trasteel International SA, Italy
- Aditya Birla Group - India
- Petron Corporation, Philippines
- Romanian Commodities Exchange
- Australian Commodity Traders Exchange
- Intertek Mineral Services - Indonesia
- PNOC Exploration Corporation - Philippines
- Standard Chartered Bank - UAE
- Bukit Baiduri Energy - Indonesia
- Bulk Trading Sa - Switzerland
- Ministry of Finance - Indonesia
- GVK Power & Infra Limited - India
- Latin American Coal - Colombia
- Bhoruka Overseas - Indonesia
- McConnell Dowell - Australia
- Sarangani Energy Corporation, Philippines
- Borneo Indobara - Indonesia
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- Karaikal Port Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Kobexindo Tractors - Indoneisa
- Miang Besar Coal Terminal - Indonesia
- Electricity Generating Authority of Thailand
- Bayan Resources Tbk. - Indonesia
- Rio Tinto Coal - Australia
- Meralco Power Generation, Philippines
- Maheswari Brothers Coal Limited - India
- Straits Asia Resources Limited - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- AsiaOL BioFuels Corp., Philippines
- ICICI Bank Limited - India
- Directorate Of Revenue Intelligence - India
- ASAPP Information Group - India
- Georgia Ports Authority, United States
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- IHS Mccloskey Coal Group - USA
- Mjunction Services Limited - India
- Minerals Council of Australia
- Commonwealth Bank - Australia
- Holcim Trading Pte Ltd - Singapore
- Neyveli Lignite Corporation Ltd, - India
- Savvy Resources Ltd - HongKong
- Price Waterhouse Coopers - Russia
- London Commodity Brokers - England
- TNB Fuel Sdn Bhd - Malaysia
- VISA Power Limited - India
- Merrill Lynch Commodities Europe
- Semirara Mining Corp, Philippines
- Sical Logistics Limited - India
- CNBM International Corporation - China
- Gujarat Mineral Development Corp Ltd - India
- SMC Global Power, Philippines
- Kapuas Tunggal Persada - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Mines - Canada
- Lanco Infratech Ltd - India
- Marubeni Corporation - India
- Central Electricity Authority - India
- The State Trading Corporation of India Ltd
- Carbofer General Trading SA - India
- Sree Jayajothi Cements Limited - India
- Planning Commission, India
- Rashtriya Ispat Nigam Limited - India
- Thiess Contractors Indonesia
- Kepco SPC Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Binh Thuan Hamico - Vietnam
- Central Java Power - Indonesia
- Kartika Selabumi Mining - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The Treasury - Australian Government
- Toyota Tsusho Corporation, Japan
- Simpson Spence & Young - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- Sindya Power Generating Company Private Ltd
- PTC India Limited - India
- Gujarat Electricity Regulatory Commission - India
- Attock Cement Pakistan Limited
- Parry Sugars Refinery, India
- LBH Netherlands Bv - Netherlands
- Indian Energy Exchange, India
- Kalimantan Lumbung Energi - Indonesia
- Ambuja Cements Ltd - India
- Larsen & Toubro Limited - India
- Altura Mining Limited, Indonesia
- Gujarat Sidhee Cement - India
- The University of Queensland
- Star Paper Mills Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Ceylon Electricity Board - Sri Lanka
- TeaM Sual Corporation - Philippines
- Coalindo Energy - Indonesia
- SN Aboitiz Power Inc, Philippines
- Globalindo Alam Lestari - Indonesia
- Chettinad Cement Corporation Ltd - India
- San Jose City I Power Corp, Philippines
- Global Business Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Transport, Egypt
- Kaltim Prima Coal - Indonesia
- Baramulti Group, Indonesia
- Manunggal Multi Energi - Indonesia
- Deloitte Consulting - India
- Edison Trading Spa - Italy
- Aboitiz Power Corporation - Philippines
- Jorong Barutama Greston.PT - Indonesia
- Tamil Nadu electricity Board
- Bank of Tokyo Mitsubishi UFJ Ltd
- Samtan Co., Ltd - South Korea
- Singapore Mercantile Exchange
- GMR Energy Limited - India
- Eastern Energy - Thailand
- Australian Coal Association
- Energy Development Corp, Philippines
- Videocon Industries ltd - India
- Orica Australia Pty. Ltd.
- Renaissance Capital - South Africa
- Pipit Mutiara Jaya. PT, Indonesia
- Mercator Lines Limited - India
- Power Finance Corporation Ltd., India
- International Coal Ventures Pvt Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Krishnapatnam Port Company Ltd. - India
- Indo Tambangraya Megah - Indonesia
- PowerSource Philippines DevCo
- Parliament of New Zealand
- Cigading International Bulk Terminal - Indonesia
- New Zealand Coal & Carbon
- Ind-Barath Power Infra Limited - India
- Independent Power Producers Association of India
- Bharathi Cement Corporation - India
- Salva Resources Pvt Ltd - India
- Uttam Galva Steels Limited - India
- India Bulls Power Limited - India
- Makarim & Taira - Indonesia
- Jaiprakash Power Ventures ltd
- Agrawal Coal Company - India
- Port Waratah Coal Services - Australia
- Sojitz Corporation - Japan
- Billiton Holdings Pty Ltd - Australia
- Bhushan Steel Limited - India
- Indogreen Group - Indonesia
- Barasentosa Lestari - Indonesia
- Grasim Industreis Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Medco Energi Mining Internasional
- Madhucon Powers Ltd - India
- Siam City Cement - Thailand
- White Energy Company Limited
- Kohat Cement Company Ltd. - Pakistan
- Coastal Gujarat Power Limited - India
- Interocean Group of Companies - India
- Vizag Seaport Private Limited - India
- Dalmia Cement Bharat India
- Mercuria Energy - Indonesia
- Tata Chemicals Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Iligan Light & Power Inc, Philippines
- Eastern Coal Council - USA
- Xindia Steels Limited - India
- Orica Mining Services - Indonesia
- Energy Link Ltd, New Zealand
- OPG Power Generation Pvt Ltd - India
- Goldman Sachs - Singapore
- Essar Steel Hazira Ltd - India
- Meenaskhi Energy Private Limited - India
- Wood Mackenzie - Singapore
- Thai Mozambique Logistica
- Banpu Public Company Limited - Thailand
- Sinarmas Energy and Mining - Indonesia
- Pendopo Energi Batubara - Indonesia
- Metalloyd Limited - United Kingdom
- Timah Investasi Mineral - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Cement Manufacturers Association - India
- Chamber of Mines of South Africa
- MS Steel International - UAE
- Antam Resourcindo - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Global Coal Blending Company Limited - Australia
- Electricity Authority, New Zealand
- Heidelberg Cement - Germany
- Oldendorff Carriers - Singapore
- CIMB Investment Bank - Malaysia
- Leighton Contractors Pty Ltd - Australia
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