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Friday, 03 August 12
INDIA - LIGHTS OUT! - SALVA
 The Indian power sector hit global headlines this week for all the wrong reasons. Firstly, on Monday, over 350 million people lost power across northern India, including Delhi. The following day, the lights went out again, but this time over 600 million people in 20 of India’s 28 states were affected, with the outages covering range of 3000 kilometers in the northern and eastern regions. The authorities’ response has ranged from blaming states for overdrawing from the grid, to appointing a committee to inquire into the causes of the blackout. However, these latest outages are merely symptomatic of much larger problems in India’s power sector, which has been short of power for years.
In Salva’s view, the problem does not lie within the generation sector – but with its upstream (coal supply and transportation) and downstream (transmission and distribution) counterparts. Since the generation sector was deregulated in FY03-04 to enable private participation, installed generation capacity has almost doubled, growing by 92GW or 85%, at a CAGR of 10.8%. The vast majority of this new capacity is coal-fired, which added another 18GW of new capacity in FY11-12 and a further 4.2GW in Q1’12.
However, this new power generation capacity is not being fully utilised, with plant load factors for coal declining from 79.2% in H1’11 to 75.8% in H1’12 and 72% most recently in June. Over 4.3TWh of coal-fired generation was lost in June alone due to low coal supply with a further 1.4TWh lost because of transmission constraints and unplanned outages. Given these figures, clearly thermal coal supply remains a problem. While domestic coal production has increased in 2012, it has languished in recent years, growing at around 1% (5Mt) between 2008-11, which pales in comparison against annual coal-fired power capacity growth of over 10%. Even when production is strong, which it has been in early 2012 (by Indian standards), transportation of coal remains highly problematic. Indian Railways has not been able to procure wagons in time to boost availability sufficiently. This has resulted in coal shortages at power plants and growth in coal mine stockpiles. Transport capacity remains severely constrained as capacity addition has languished at the altar of populism. Passenger traffic shares the same infrastructure as freight, causing freight such as coal to be given a lower priority.
The Electricity Act of 2003 freed up the generation sector, but the same reforms haven’t yet percolated to the transmission and distribution sectors, which are suffering from the same bottlenecks that existed prior to 2003. Transmission capacity is not being developed at the same pace as generation capacity, while distribution reforms remain a pipe dream. As domestic coal production has not kept pace with demand, power producers have used much costlier imported coal to generate electricity. However, India’s tariff framework is still lagging behind, so the State Electricity Boards require ever increasing financial support from state owned banks and financial institutions. Tariff reform is an immediate requirement. Only that will facilitate the sector’s much needed investment.
What are the implications if this is not done now?
Indian cities are accustomed to power cuts. However, increasing prosperity has increased electricity demand and, coupled with the weak monsoon this year, has caused power demand to spike. Agricultural states like Uttar Pradesh, Haryana and Punjab have increasingly overdrawn power from the grids to feed the agricultural sector (which ironically is not metered as power is free for farmers) and to meet residential demand. The agricultural sector is still dependent upon the monsoon as the irrigation network is not widespread, and the weak monsoon has resulted in farmers pumping groundwater onto their fields. Generally electricity demand is low during the monsoon months (June-September) as the rains reduce temperatures. However, the rains have been weak and hence residential power demand has remained strong. This has been further exacerbated with the additional demand from the agricultural sector. State power distribution companies have not planned in advance to buy additional electricity and have overdrawn power from the grid without additional generation being supplied. This has destabilised the grid and caused it to fail.
The impact of the electricity shortages have been felt by the public at large, with a few incidents of people protesting on the road. However, it hasn’t erupted into widespread unrest - thankfully.
The implications of not carrying out reforms in the transmission and distribution sector are now apparent. Lack of adequate investment in the transmission sector will hobble the impressive generation capacity that has been developed. Lack of commercial reforms in the power distribution sector will not provide the returns or even cover the basic cost of generation. The power sector is already sick and if reforms are not carried out with the seriousness required, India will suffer further setbacks.
Source: Salva
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Friday, 24 May 13
US'S COAL PRODUCTION INCREASED WEEK ON WEEK
COALspot.com – United states the world’s second largest coal producer produced totaled approximately 18.90 million short tons (mmst) of ...
Friday, 24 May 13
OPG POWER VENTURES OF INDIA LOOKING FOR 210,000 MT OF 4,200 GAR INDONESIAN THERMAL COAL
COALspot.com - OPG Power Ventures Plc (OPG) is an AIM listed (London Stock Exchange) and fast growing developer and operator of power plants in Indi ...
Thursday, 23 May 13
HANDY : THE ATLANTIC MARKET REMAINS UNCHANGED - FEARNRESEARCH
Handy
The Atlantic market remains unchanged. USG-Feast rates were around USD 19k. Little change from last week in the Pacific, fewer stems and tonn ...
Thursday, 23 May 13
COLOMBIA SHIPPED 11.74 MILLION TONS OF THERMAL COAL IN Q1
COALspot.om - Colombia produced about 18,388,972.94 mt of coal for the first quarter of 2013.
Q1' 2013 coal production was around 21.42 p ...
Wednesday, 22 May 13
COKAL SIGNS JV WITH MDM, FOR BARITO RIVER BARGING
COALspot.com - Cokal Limited (ASX: CKA) has announced that it has entered into a 50:50 Joint Venture (JV) with Meratus Advance Maritime (MDM) one of ...
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- Karbindo Abesyapradhi - Indoneisa
- Salva Resources Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Globalindo Alam Lestari - Indonesia
- London Commodity Brokers - England
- Minerals Council of Australia
- Bhatia International Limited - India
- Singapore Mercantile Exchange
- Jaiprakash Power Ventures ltd
- Renaissance Capital - South Africa
- Rashtriya Ispat Nigam Limited - India
- Planning Commission, India
- Uttam Galva Steels Limited - India
- Interocean Group of Companies - India
- Meenaskhi Energy Private Limited - India
- VISA Power Limited - India
- Bharathi Cement Corporation - India
- Kumho Petrochemical, South Korea
- Trasteel International SA, Italy
- Bangladesh Power Developement Board
- Essar Steel Hazira Ltd - India
- Chettinad Cement Corporation Ltd - India
- Coalindo Energy - Indonesia
- Posco Energy - South Korea
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Baiduri Energy - Indonesia
- Semirara Mining and Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- European Bulk Services B.V. - Netherlands
- Toyota Tsusho Corporation, Japan
- Banpu Public Company Limited - Thailand
- Indika Energy - Indonesia
- Therma Luzon, Inc, Philippines
- Sarangani Energy Corporation, Philippines
- Romanian Commodities Exchange
- ASAPP Information Group - India
- Petron Corporation, Philippines
- Kaltim Prima Coal - Indonesia
- Semirara Mining Corp, Philippines
- Carbofer General Trading SA - India
- Commonwealth Bank - Australia
- Vedanta Resources Plc - India
- Gujarat Mineral Development Corp Ltd - India
- Standard Chartered Bank - UAE
- Port Waratah Coal Services - Australia
- Grasim Industreis Ltd - India
- Vizag Seaport Private Limited - India
- The University of Queensland
- Indonesian Coal Mining Association
- PNOC Exploration Corporation - Philippines
- Coal and Oil Company - UAE
- Bukit Makmur.PT - Indonesia
- International Coal Ventures Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Merrill Lynch Commodities Europe
- Sical Logistics Limited - India
- Oldendorff Carriers - Singapore
- SN Aboitiz Power Inc, Philippines
- Jorong Barutama Greston.PT - Indonesia
- Energy Link Ltd, New Zealand
- Cigading International Bulk Terminal - Indonesia
- Aditya Birla Group - India
- Price Waterhouse Coopers - Russia
- Makarim & Taira - Indonesia
- Sree Jayajothi Cements Limited - India
- Borneo Indobara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Central Electricity Authority - India
- Ministry of Transport, Egypt
- GN Power Mariveles Coal Plant, Philippines
- Gujarat Sidhee Cement - India
- Maheswari Brothers Coal Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Larsen & Toubro Limited - India
- SMC Global Power, Philippines
- Kapuas Tunggal Persada - Indonesia
- SMG Consultants - Indonesia
- Baramulti Group, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Malabar Cements Ltd - India
- Mercuria Energy - Indonesia
- Ind-Barath Power Infra Limited - India
- Jindal Steel & Power Ltd - India
- Intertek Mineral Services - Indonesia
- Formosa Plastics Group - Taiwan
- Ministry of Mines - Canada
- Medco Energi Mining Internasional
- Thai Mozambique Logistica
- Sakthi Sugars Limited - India
- Energy Development Corp, Philippines
- Karaikal Port Pvt Ltd - India
- Directorate Of Revenue Intelligence - India
- Australian Commodity Traders Exchange
- Ministry of Finance - Indonesia
- Siam City Cement - Thailand
- Billiton Holdings Pty Ltd - Australia
- Sojitz Corporation - Japan
- TeaM Sual Corporation - Philippines
- Mjunction Services Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Star Paper Mills Limited - India
- Manunggal Multi Energi - Indonesia
- Bayan Resources Tbk. - Indonesia
- Indian Energy Exchange, India
- Eastern Coal Council - USA
- Latin American Coal - Colombia
- Africa Commodities Group - South Africa
- Bulk Trading Sa - Switzerland
- CNBM International Corporation - China
- Sindya Power Generating Company Private Ltd
- Xindia Steels Limited - India
- Kobexindo Tractors - Indoneisa
- Kohat Cement Company Ltd. - Pakistan
- The Treasury - Australian Government
- Orica Australia Pty. Ltd.
- TNB Fuel Sdn Bhd - Malaysia
- Economic Council, Georgia
- AsiaOL BioFuels Corp., Philippines
- Marubeni Corporation - India
- Global Coal Blending Company Limited - Australia
- Goldman Sachs - Singapore
- India Bulls Power Limited - India
- Australian Coal Association
- South Luzon Thermal Energy Corporation
- Electricity Generating Authority of Thailand
- Georgia Ports Authority, United States
- PetroVietnam Power Coal Import and Supply Company
- White Energy Company Limited
- Riau Bara Harum - Indonesia
- Holcim Trading Pte Ltd - Singapore
- PowerSource Philippines DevCo
- McConnell Dowell - Australia
- Tata Chemicals Ltd - India
- Kepco SPC Power Corporation, Philippines
- Wilmar Investment Holdings
- MS Steel International - UAE
- Agrawal Coal Company - India
- OPG Power Generation Pvt Ltd - India
- Indo Tambangraya Megah - Indonesia
- Eastern Energy - Thailand
- Bhushan Steel Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Lanco Infratech Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Aboitiz Power Corporation - Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Independent Power Producers Association of India
- Maharashtra Electricity Regulatory Commission - India
- Electricity Authority, New Zealand
- Parliament of New Zealand
- Bukit Asam (Persero) Tbk - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Dalmia Cement Bharat India
- Orica Mining Services - Indonesia
- Kartika Selabumi Mining - Indonesia
- Global Green Power PLC Corporation, Philippines
- Videocon Industries ltd - India
- Global Business Power Corporation, Philippines
- Indogreen Group - Indonesia
- Deloitte Consulting - India
- Wood Mackenzie - Singapore
- Indian Oil Corporation Limited
- Samtan Co., Ltd - South Korea
- Tamil Nadu electricity Board
- Krishnapatnam Port Company Ltd. - India
- Ambuja Cements Ltd - India
- Altura Mining Limited, Indonesia
- Pendopo Energi Batubara - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- GAC Shipping (India) Pvt Ltd
- Barasentosa Lestari - Indonesia
- Iligan Light & Power Inc, Philippines
- LBH Netherlands Bv - Netherlands
- IEA Clean Coal Centre - UK
- Mintek Dendrill Indonesia
- Alfred C Toepfer International GmbH - Germany
- Sinarmas Energy and Mining - Indonesia
- Edison Trading Spa - Italy
- IHS Mccloskey Coal Group - USA
- Simpson Spence & Young - Indonesia
- GVK Power & Infra Limited - India
- Anglo American - United Kingdom
- Asmin Koalindo Tuhup - Indonesia
- San Jose City I Power Corp, Philippines
- New Zealand Coal & Carbon
- Meralco Power Generation, Philippines
- Timah Investasi Mineral - Indoneisa
- Chamber of Mines of South Africa
- Coastal Gujarat Power Limited - India
- Central Java Power - Indonesia
- Heidelberg Cement - Germany
- GMR Energy Limited - India
- The State Trading Corporation of India Ltd
- Antam Resourcindo - Indonesia
- Gujarat Electricity Regulatory Commission - India
- PTC India Limited - India
- Leighton Contractors Pty Ltd - Australia
- Ceylon Electricity Board - Sri Lanka
- Kideco Jaya Agung - Indonesia
- Straits Asia Resources Limited - Singapore
- Thiess Contractors Indonesia
- Neyveli Lignite Corporation Ltd, - India
- Metalloyd Limited - United Kingdom
- ICICI Bank Limited - India
- Power Finance Corporation Ltd., India
- Cement Manufacturers Association - India
- Madhucon Powers Ltd - India
- Binh Thuan Hamico - Vietnam
- Siam City Cement PLC, Thailand
- Savvy Resources Ltd - HongKong
- Rio Tinto Coal - Australia
- Mercator Lines Limited - India
- Bhoruka Overseas - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Parry Sugars Refinery, India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Attock Cement Pakistan Limited
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