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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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Tuesday, 23 April 13
INDONESIAN STATE OWNED COAL MINER SHIPPED 4 PERCENT MORE COAL IN 1Q
COALspot.com - PT. Bukit Asam, the Indonesian state owned coal miner shipped more coal in first quarter of this year compared to the same period in ...
Tuesday, 23 April 13
REALM CONTINUES AS 51% OWNER AND MANAGER OF THE KATINGAN RIA THERMAL COAL PROJECT
COALspot.com - Realm Resources Ltd. (ASX: RRP) has announced today that, the commercial way forward for the development of its 51% held Indonesian t ...
Tuesday, 23 April 13
TIGERS REALM COAL HAS SOME OF THE WORLD'S BEST UNDEVELOPED COKING COAL ASSETS - EXECUTIVE CHAIRMAN
COALspot.com - “ During 2012, your Company has made very significant progress towards meeting its stated objective of becoming a global player ...
Tuesday, 23 April 13
AUSTRALIA'S NEWCASTLE PORT COAL SHIPMENTS DROPPED BY 4.38 PERCENT W-O-W
COALspot.com - Newcastle port in Australia has loaded 2,434,336 tons of thermal and coking coal for week ended 0700 hours 22 April 2013, Newca ...
Sunday, 21 April 13
INDONESIA - INDIA COAL FREIGHT RATES ARE FIRMING UP - CAPT. REDDY
COALspot.com – The BDI was up by 1.40 pct closed at 888 points week ended 19 April 2013. The Cape index was down by 2.45 pct closing at 1234 p ...
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- GVK Power & Infra Limited - India
- Africa Commodities Group - South Africa
- Thai Mozambique Logistica
- Asmin Koalindo Tuhup - Indonesia
- Price Waterhouse Coopers - Russia
- Iligan Light & Power Inc, Philippines
- Larsen & Toubro Limited - India
- Semirara Mining Corp, Philippines
- The Treasury - Australian Government
- Central Electricity Authority - India
- Medco Energi Mining Internasional
- Electricity Authority, New Zealand
- Sinarmas Energy and Mining - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- White Energy Company Limited
- Star Paper Mills Limited - India
- Bangladesh Power Developement Board
- Meenaskhi Energy Private Limited - India
- Pendopo Energi Batubara - Indonesia
- Carbofer General Trading SA - India
- McConnell Dowell - Australia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Grasim Industreis Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Marubeni Corporation - India
- CIMB Investment Bank - Malaysia
- Trasteel International SA, Italy
- Essar Steel Hazira Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Bahari Cakrawala Sebuku - Indonesia
- Banpu Public Company Limited - Thailand
- Miang Besar Coal Terminal - Indonesia
- Bayan Resources Tbk. - Indonesia
- Baramulti Group, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Sindya Power Generating Company Private Ltd
- Toyota Tsusho Corporation, Japan
- Indogreen Group - Indonesia
- Kepco SPC Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- Chettinad Cement Corporation Ltd - India
- Orica Mining Services - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Power Finance Corporation Ltd., India
- South Luzon Thermal Energy Corporation
- Wood Mackenzie - Singapore
- Timah Investasi Mineral - Indoneisa
- Global Business Power Corporation, Philippines
- Edison Trading Spa - Italy
- AsiaOL BioFuels Corp., Philippines
- Mintek Dendrill Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Billiton Holdings Pty Ltd - Australia
- New Zealand Coal & Carbon
- Intertek Mineral Services - Indonesia
- Merrill Lynch Commodities Europe
- PTC India Limited - India
- Sree Jayajothi Cements Limited - India
- Cement Manufacturers Association - India
- Eastern Coal Council - USA
- Kideco Jaya Agung - Indonesia
- Ministry of Finance - Indonesia
- Barasentosa Lestari - Indonesia
- Tamil Nadu electricity Board
- Independent Power Producers Association of India
- GN Power Mariveles Coal Plant, Philippines
- Energy Development Corp, Philippines
- Petron Corporation, Philippines
- Cigading International Bulk Terminal - Indonesia
- Wilmar Investment Holdings
- Gujarat Mineral Development Corp Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Global Green Power PLC Corporation, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Attock Cement Pakistan Limited
- Madhucon Powers Ltd - India
- Ambuja Cements Ltd - India
- Coalindo Energy - Indonesia
- Mjunction Services Limited - India
- ASAPP Information Group - India
- Jaiprakash Power Ventures ltd
- Mercuria Energy - Indonesia
- ICICI Bank Limited - India
- Binh Thuan Hamico - Vietnam
- TNB Fuel Sdn Bhd - Malaysia
- Orica Australia Pty. Ltd.
- Jorong Barutama Greston.PT - Indonesia
- Gujarat Sidhee Cement - India
- Eastern Energy - Thailand
- Indian Oil Corporation Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Karaikal Port Pvt Ltd - India
- Bukit Baiduri Energy - Indonesia
- Parliament of New Zealand
- Indo Tambangraya Megah - Indonesia
- Bhushan Steel Limited - India
- Aditya Birla Group - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Malabar Cements Ltd - India
- Borneo Indobara - Indonesia
- The State Trading Corporation of India Ltd
- Sarangani Energy Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Minerals Council of Australia
- The University of Queensland
- Oldendorff Carriers - Singapore
- Directorate General of MIneral and Coal - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Manunggal Multi Energi - Indonesia
- Riau Bara Harum - Indonesia
- Coal and Oil Company - UAE
- Standard Chartered Bank - UAE
- Sojitz Corporation - Japan
- Ceylon Electricity Board - Sri Lanka
- Ministry of Mines - Canada
- SN Aboitiz Power Inc, Philippines
- Leighton Contractors Pty Ltd - Australia
- Coastal Gujarat Power Limited - India
- Kapuas Tunggal Persada - Indonesia
- Heidelberg Cement - Germany
- Planning Commission, India
- International Coal Ventures Pvt Ltd - India
- Kartika Selabumi Mining - Indonesia
- Xindia Steels Limited - India
- Indian Energy Exchange, India
- Tata Chemicals Ltd - India
- Commonwealth Bank - Australia
- Australian Coal Association
- Sical Logistics Limited - India
- Aboitiz Power Corporation - Philippines
- Rio Tinto Coal - Australia
- Uttam Galva Steels Limited - India
- Bharathi Cement Corporation - India
- IHS Mccloskey Coal Group - USA
- Dalmia Cement Bharat India
- Meralco Power Generation, Philippines
- Directorate Of Revenue Intelligence - India
- Indika Energy - Indonesia
- London Commodity Brokers - England
- PowerSource Philippines DevCo
- Bank of Tokyo Mitsubishi UFJ Ltd
- Antam Resourcindo - Indonesia
- Bulk Trading Sa - Switzerland
- Agrawal Coal Company - India
- Indonesian Coal Mining Association
- Kohat Cement Company Ltd. - Pakistan
- MS Steel International - UAE
- Renaissance Capital - South Africa
- Latin American Coal - Colombia
- VISA Power Limited - India
- Electricity Generating Authority of Thailand
- GMR Energy Limited - India
- Goldman Sachs - Singapore
- Simpson Spence & Young - Indonesia
- Straits Asia Resources Limited - Singapore
- Ind-Barath Power Infra Limited - India
- Ministry of Transport, Egypt
- Georgia Ports Authority, United States
- LBH Netherlands Bv - Netherlands
- SMG Consultants - Indonesia
- Samtan Co., Ltd - South Korea
- India Bulls Power Limited - India
- Chamber of Mines of South Africa
- Vizag Seaport Private Limited - India
- European Bulk Services B.V. - Netherlands
- Bhatia International Limited - India
- Interocean Group of Companies - India
- Metalloyd Limited - United Kingdom
- OPG Power Generation Pvt Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Deloitte Consulting - India
- GAC Shipping (India) Pvt Ltd
- Salva Resources Pvt Ltd - India
- Globalindo Alam Lestari - Indonesia
- TeaM Sual Corporation - Philippines
- Siam City Cement - Thailand
- SMC Global Power, Philippines
- Kumho Petrochemical, South Korea
- San Jose City I Power Corp, Philippines
- Altura Mining Limited, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Singapore Mercantile Exchange
- Rashtriya Ispat Nigam Limited - India
- Kaltim Prima Coal - Indonesia
- Lanco Infratech Ltd - India
- Makarim & Taira - Indonesia
- Jindal Steel & Power Ltd - India
- Bukit Makmur.PT - Indonesia
- Australian Commodity Traders Exchange
- Holcim Trading Pte Ltd - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Economic Council, Georgia
- Parry Sugars Refinery, India
- Kobexindo Tractors - Indoneisa
- Global Coal Blending Company Limited - Australia
- Energy Link Ltd, New Zealand
- CNBM International Corporation - China
- PNOC Exploration Corporation - Philippines
- Maheswari Brothers Coal Limited - India
- Mercator Lines Limited - India
- Videocon Industries ltd - India
- Posco Energy - South Korea
- Savvy Resources Ltd - HongKong
- Thiess Contractors Indonesia
- Formosa Plastics Group - Taiwan
- Sakthi Sugars Limited - India
- Romanian Commodities Exchange
- Central Java Power - Indonesia
- Siam City Cement PLC, Thailand
- Alfred C Toepfer International GmbH - Germany
- Anglo American - United Kingdom
- Port Waratah Coal Services - Australia
- Bhoruka Overseas - Indonesia
- Vedanta Resources Plc - India
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