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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, 20 October 21
MARKET INSIGHT - INTERMODAL
IMO 2020, Ballast Water Treatment regulations, Green Recycling, GHG emissions, EEXI, CII, ETS, Fit for 55, Carbon price/levy, the Poseidon Principl ...
Tuesday, 19 October 21
SPONGE IRON SECTOR MIGHT REPORT NEGATIVE GROWTH DUE TO COAL CRISIS: SIMA - PTI
The domestic sponge iron industry might report a negative growth in the ongoing December quarter “if the shortage of coal is allowed to conti ...
Tuesday, 19 October 21
COAL INDIA, THE FALL GUY FOR POWER CRISIS - INDIA EXPRESS
The post-Covid economic recovery has led to a major increase in the demand for power, both in India and globally. In India, coal-based power plants ...
Saturday, 16 October 21
SOLAR INSTALLATION SURGE PUTS INDIA ON TRACK TO CAP COAL-FIRED POWER AS EARLY AS 2024 - IEEFA
Recent increase in solar power installations could push coal to peak sooner than expected
If India keeps installing solar capacity a ...
Saturday, 16 October 21
DESPITE HIGHER COAL PRICES, U.S. COAL RECOVERY LOOKS WEAK BY MOST MEASURES - IEEFA
U.S. coal sector is locked into a long-term sectoral decline
Coal prices have surged to the highest level in years in the U.S., and have soare ...
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- Minerals Council of Australia
- Chettinad Cement Corporation Ltd - India
- Indogreen Group - Indonesia
- Commonwealth Bank - Australia
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- Tamil Nadu electricity Board
- Malabar Cements Ltd - India
- Edison Trading Spa - Italy
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- India Bulls Power Limited - India
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- London Commodity Brokers - England
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- Planning Commission, India
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- Coastal Gujarat Power Limited - India
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- Indian Oil Corporation Limited
- Dalmia Cement Bharat India
- Australian Commodity Traders Exchange
- European Bulk Services B.V. - Netherlands
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- Intertek Mineral Services - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
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- ICICI Bank Limited - India
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- Posco Energy - South Korea
- Bulk Trading Sa - Switzerland
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- Kalimantan Lumbung Energi - Indonesia
- Orica Mining Services - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Sarangani Energy Corporation, Philippines
- Renaissance Capital - South Africa
- Maharashtra Electricity Regulatory Commission - India
- White Energy Company Limited
- Global Business Power Corporation, Philippines
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- Global Coal Blending Company Limited - Australia
- Ministry of Finance - Indonesia
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- Altura Mining Limited, Indonesia
- Bhoruka Overseas - Indonesia
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- SMG Consultants - Indonesia
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- Savvy Resources Ltd - HongKong
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- Energy Link Ltd, New Zealand
- TeaM Sual Corporation - Philippines
- Siam City Cement PLC, Thailand
- Chamber of Mines of South Africa
- Gujarat Mineral Development Corp Ltd - India
- Mintek Dendrill Indonesia
- Deloitte Consulting - India
- Marubeni Corporation - India
- Indika Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Banpu Public Company Limited - Thailand
- Ministry of Mines - Canada
- Ministry of Transport, Egypt
- Straits Asia Resources Limited - Singapore
- LBH Netherlands Bv - Netherlands
- Simpson Spence & Young - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Kohat Cement Company Ltd. - Pakistan
- Agrawal Coal Company - India
- Gujarat Sidhee Cement - India
- Directorate General of MIneral and Coal - Indonesia
- Directorate Of Revenue Intelligence - India
- Bayan Resources Tbk. - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Trasteel International SA, Italy
- GN Power Mariveles Coal Plant, Philippines
- New Zealand Coal & Carbon
- IEA Clean Coal Centre - UK
- Aboitiz Power Corporation - Philippines
- Cigading International Bulk Terminal - Indonesia
- Oldendorff Carriers - Singapore
- Thiess Contractors Indonesia
- Samtan Co., Ltd - South Korea
- Alfred C Toepfer International GmbH - Germany
- Kaltim Prima Coal - Indonesia
- Bharathi Cement Corporation - India
- MS Steel International - UAE
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- Jaiprakash Power Ventures ltd
- Vedanta Resources Plc - India
- Miang Besar Coal Terminal - Indonesia
- Attock Cement Pakistan Limited
- Standard Chartered Bank - UAE
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- Economic Council, Georgia
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- Romanian Commodities Exchange
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- Bangladesh Power Developement Board
- Petron Corporation, Philippines
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- Coalindo Energy - Indonesia
- Timah Investasi Mineral - Indoneisa
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- Bukit Makmur.PT - Indonesia
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- Asia Pacific Energy Resources Ventures Inc, Philippines
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- Coal and Oil Company - UAE
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- Indian Energy Exchange, India
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- SN Aboitiz Power Inc, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- The Treasury - Australian Government
- Ceylon Electricity Board - Sri Lanka
- Holcim Trading Pte Ltd - Singapore
- The University of Queensland
- GVK Power & Infra Limited - India
- CNBM International Corporation - China
- GMR Energy Limited - India
- Grasim Industreis Ltd - India
- Uttam Galva Steels Limited - India
- Kumho Petrochemical, South Korea
- PetroVietnam Power Coal Import and Supply Company
- Wood Mackenzie - Singapore
- Parliament of New Zealand
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- Independent Power Producers Association of India
- Sakthi Sugars Limited - India
- Latin American Coal - Colombia
- Star Paper Mills Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Goldman Sachs - Singapore
- Rio Tinto Coal - Australia
- Asmin Koalindo Tuhup - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Thai Mozambique Logistica
- Australian Coal Association
- Kepco SPC Power Corporation, Philippines
- Baramulti Group, Indonesia
- IHS Mccloskey Coal Group - USA
- Rashtriya Ispat Nigam Limited - India
- OPG Power Generation Pvt Ltd - India
- Energy Development Corp, Philippines
- Pendopo Energi Batubara - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Orica Australia Pty. Ltd.
- PTC India Limited - India
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- Madhucon Powers Ltd - India
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- Parry Sugars Refinery, India
- Gujarat Electricity Regulatory Commission - India
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- Electricity Generating Authority of Thailand
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- Petrochimia International Co. Ltd.- Taiwan
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- Binh Thuan Hamico - Vietnam
- Global Green Power PLC Corporation, Philippines
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- Africa Commodities Group - South Africa
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