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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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Monday, 15 April 13
SUB - BIT INDONESIA COAL SWAP SHOWS POSITIVE TREND
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for average Q2’ 2013 delivery has gained 2.70 percent and CFR South China coal shipment&nbs ...
Saturday, 13 April 13
THE FREIGHT MARKETS EXPECTED TO HOLD FIRM NEXT WEEK - CAPT. REDDY
COALspot.com - This freight market firmed up this week and all sectors were up except for Supramax index.
The BDI was up by 1.62 pct closing at 8 ...
Friday, 12 April 13
DRY BULK SHIP OWNERS DEVELOPED NEWFOUND APPETITE FOR BULKERS DURING FIRST QUARTER OF 2013 - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
It's official; more and more ship owners operating in the dry bulk market appear to have developed a newfound optimism in the market's prospects. ...
Thursday, 11 April 13
HANDY: INDO - INDIA NOW BEEN REPORTED AT APS BASIS AT USD 10K+BB 85K - FEARNLEYS
Handy
The Atlantic markets remain with not many cargoes seen this week. The USG-Feast was at USD 18k and Black Sea-Feast was at USD 12k. The Pacifi ...
Thursday, 11 April 13
AUSTRALIA'S NEWCASTLE PORT SHIPPED 15.96 PERCENT LESS COAL W-O-W
COALspot.com - Newcastle port in Australia has loaded 2,545,914 tons of thermal and coking coal for week ended 0700 hours 8 April 2013, Newcas ...
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- PowerSource Philippines DevCo
- Ministry of Mines - Canada
- Baramulti Group, Indonesia
- New Zealand Coal & Carbon
- Energy Development Corp, Philippines
- SN Aboitiz Power Inc, Philippines
- Samtan Co., Ltd - South Korea
- Siam City Cement - Thailand
- Videocon Industries ltd - India
- AsiaOL BioFuels Corp., Philippines
- Medco Energi Mining Internasional
- Kideco Jaya Agung - Indonesia
- Madhucon Powers Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Anglo American - United Kingdom
- Renaissance Capital - South Africa
- ICICI Bank Limited - India
- Makarim & Taira - Indonesia
- Vedanta Resources Plc - India
- Economic Council, Georgia
- CIMB Investment Bank - Malaysia
- Kartika Selabumi Mining - Indonesia
- Binh Thuan Hamico - Vietnam
- Sree Jayajothi Cements Limited - India
- Rio Tinto Coal - Australia
- The University of Queensland
- Uttam Galva Steels Limited - India
- Metalloyd Limited - United Kingdom
- GAC Shipping (India) Pvt Ltd
- Manunggal Multi Energi - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Jorong Barutama Greston.PT - Indonesia
- Global Coal Blending Company Limited - Australia
- Parry Sugars Refinery, India
- Gujarat Electricity Regulatory Commission - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Wood Mackenzie - Singapore
- Leighton Contractors Pty Ltd - Australia
- Bukit Asam (Persero) Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Star Paper Mills Limited - India
- Wilmar Investment Holdings
- Semirara Mining and Power Corporation, Philippines
- London Commodity Brokers - England
- Thiess Contractors Indonesia
- The State Trading Corporation of India Ltd
- Sinarmas Energy and Mining - Indonesia
- The Treasury - Australian Government
- GVK Power & Infra Limited - India
- Power Finance Corporation Ltd., India
- Sakthi Sugars Limited - India
- Indian Oil Corporation Limited
- Essar Steel Hazira Ltd - India
- Bharathi Cement Corporation - India
- Banpu Public Company Limited - Thailand
- Central Java Power - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Indonesian Coal Mining Association
- TNB Fuel Sdn Bhd - Malaysia
- Salva Resources Pvt Ltd - India
- Grasim Industreis Ltd - India
- Marubeni Corporation - India
- White Energy Company Limited
- Sarangani Energy Corporation, Philippines
- Goldman Sachs - Singapore
- Jaiprakash Power Ventures ltd
- Central Electricity Authority - India
- South Luzon Thermal Energy Corporation
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- Bangladesh Power Developement Board
- Holcim Trading Pte Ltd - Singapore
- Attock Cement Pakistan Limited
- PNOC Exploration Corporation - Philippines
- Aboitiz Power Corporation - Philippines
- Siam City Cement PLC, Thailand
- Timah Investasi Mineral - Indoneisa
- Tamil Nadu electricity Board
- Australian Commodity Traders Exchange
- Chettinad Cement Corporation Ltd - India
- GMR Energy Limited - India
- Port Waratah Coal Services - Australia
- Trasteel International SA, Italy
- Parliament of New Zealand
- Commonwealth Bank - Australia
- Borneo Indobara - Indonesia
- Therma Luzon, Inc, Philippines
- Planning Commission, India
- Larsen & Toubro Limited - India
- Formosa Plastics Group - Taiwan
- Bukit Baiduri Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Riau Bara Harum - Indonesia
- Maheswari Brothers Coal Limited - India
- Eastern Coal Council - USA
- European Bulk Services B.V. - Netherlands
- Australian Coal Association
- McConnell Dowell - Australia
- Africa Commodities Group - South Africa
- Ministry of Transport, Egypt
- Savvy Resources Ltd - HongKong
- Bayan Resources Tbk. - Indonesia
- Semirara Mining Corp, Philippines
- Antam Resourcindo - Indonesia
- Interocean Group of Companies - India
- Mercuria Energy - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Petron Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Iligan Light & Power Inc, Philippines
- PTC India Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Kaltim Prima Coal - Indonesia
- MS Steel International - UAE
- Electricity Generating Authority of Thailand
- Pendopo Energi Batubara - Indonesia
- Kobexindo Tractors - Indoneisa
- Toyota Tsusho Corporation, Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Bhatia International Limited - India
- Mjunction Services Limited - India
- Ambuja Cements Ltd - India
- Orica Mining Services - Indonesia
- Sindya Power Generating Company Private Ltd
- Eastern Energy - Thailand
- Barasentosa Lestari - Indonesia
- Bulk Trading Sa - Switzerland
- Posco Energy - South Korea
- Intertek Mineral Services - Indonesia
- Vizag Seaport Private Limited - India
- Miang Besar Coal Terminal - Indonesia
- Global Green Power PLC Corporation, Philippines
- Oldendorff Carriers - Singapore
- Kumho Petrochemical, South Korea
- Straits Asia Resources Limited - Singapore
- ASAPP Information Group - India
- Indika Energy - Indonesia
- Kepco SPC Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Georgia Ports Authority, United States
- Minerals Council of Australia
- Bukit Makmur.PT - Indonesia
- Chamber of Mines of South Africa
- Cement Manufacturers Association - India
- Alfred C Toepfer International GmbH - Germany
- Standard Chartered Bank - UAE
- Simpson Spence & Young - Indonesia
- International Coal Ventures Pvt Ltd - India
- Deloitte Consulting - India
- Tata Chemicals Ltd - India
- Lanco Infratech Ltd - India
- Rashtriya Ispat Nigam Limited - India
- Billiton Holdings Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- Orica Australia Pty. Ltd.
- CNBM International Corporation - China
- Meenaskhi Energy Private Limited - India
- India Bulls Power Limited - India
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- Coalindo Energy - Indonesia
- SMG Consultants - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Heidelberg Cement - Germany
- Latin American Coal - Colombia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Agrawal Coal Company - India
- San Jose City I Power Corp, Philippines
- Sojitz Corporation - Japan
- Gujarat Sidhee Cement - India
- Bhushan Steel Limited - India
- Ceylon Electricity Board - Sri Lanka
- Merrill Lynch Commodities Europe
- Karaikal Port Pvt Ltd - India
- Meralco Power Generation, Philippines
- Aditya Birla Group - India
- Dalmia Cement Bharat India
- Independent Power Producers Association of India
- Coastal Gujarat Power Limited - India
- Singapore Mercantile Exchange
- Electricity Authority, New Zealand
- Bahari Cakrawala Sebuku - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Neyveli Lignite Corporation Ltd, - India
- Indo Tambangraya Megah - Indonesia
- Indogreen Group - Indonesia
- Thai Mozambique Logistica
- Bank of Tokyo Mitsubishi UFJ Ltd
- LBH Netherlands Bv - Netherlands
- Ind-Barath Power Infra Limited - India
- IEA Clean Coal Centre - UK
- Indian Energy Exchange, India
- Ministry of Finance - Indonesia
- IHS Mccloskey Coal Group - USA
- Edison Trading Spa - Italy
- TeaM Sual Corporation - Philippines
- Kalimantan Lumbung Energi - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Pipit Mutiara Jaya. PT, Indonesia
- SMC Global Power, Philippines
- Karbindo Abesyapradhi - Indoneisa
- Directorate General of MIneral and Coal - Indonesia
- Mercator Lines Limited - India
- Coal and Oil Company - UAE
- VISA Power Limited - India
- Price Waterhouse Coopers - Russia
- Malabar Cements Ltd - India
- OPG Power Generation Pvt Ltd - India
- Sical Logistics Limited - India
- Globalindo Alam Lestari - Indonesia
- Global Business Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Mintek Dendrill Indonesia
- Xindia Steels Limited - India
- Carbofer General Trading SA - India
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