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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, 26 March 13
NEWCASTLE PORT SHIPPED 2.39 MMT OF COAL W/E 25 MARCH 2013
COALspot.com - Newcastle port in Australia has loaded 2.396 million tons of thermal and coking coal for week ended 0700 hours 25 March 2013, N ...
Monday, 25 March 13
BUNKER FUELS ARE ABOUT TO GET CLEANER, BUT AT WHAT COST? - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The cost of bunkers is nowadays the driving force behind most ship owners' major decisions, with regulations bound to change in many parts of the w ...
Sunday, 24 March 13
THE SUB-BIT INDONESIA'S COAL SWAPS FOR Q2 DELIVERY PRICE LOST 7.47 PERCENT PMT M-O-M
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for average Q2’ 2013 delivery has lost 3.39 percent and CFR South China coal shipment 2.65 ...
Sunday, 24 March 13
FREIGHT MARKETS CONTINUED TO FIRM - VISTAAR
COALspot.com - This freight market continued to remain firm in all segments except for cape index which softened slightly.
The BDI was up by 4.60 ...
Sunday, 24 March 13
DRY BULK MARKET PROSPECTS OFFER ROOM FOR RESTRAINED OPTIMISM SAYS SHIP OWNER - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
In its announcement regarding its annual performance, ship owner Frontline offered some useful insight on the future prospects of both the dry bulk ...
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- Ind-Barath Power Infra Limited - India
- Orica Australia Pty. Ltd.
- Tamil Nadu electricity Board
- London Commodity Brokers - England
- Formosa Plastics Group - Taiwan
- Timah Investasi Mineral - Indoneisa
- Maheswari Brothers Coal Limited - India
- Port Waratah Coal Services - Australia
- Bhushan Steel Limited - India
- Ministry of Mines - Canada
- Commonwealth Bank - Australia
- Carbofer General Trading SA - India
- Semirara Mining and Power Corporation, Philippines
- Mercuria Energy - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Simpson Spence & Young - Indonesia
- Goldman Sachs - Singapore
- Vijayanagar Sugar Pvt Ltd - India
- PTC India Limited - India
- Mercator Lines Limited - India
- Vizag Seaport Private Limited - India
- Uttam Galva Steels Limited - India
- Electricity Generating Authority of Thailand
- TeaM Sual Corporation - Philippines
- CIMB Investment Bank - Malaysia
- IEA Clean Coal Centre - UK
- Gujarat Sidhee Cement - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Medco Energi Mining Internasional
- Ministry of Finance - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Power Finance Corporation Ltd., India
- Deloitte Consulting - India
- Sarangani Energy Corporation, Philippines
- Coastal Gujarat Power Limited - India
- PNOC Exploration Corporation - Philippines
- Singapore Mercantile Exchange
- Kartika Selabumi Mining - Indonesia
- Australian Coal Association
- Thiess Contractors Indonesia
- Latin American Coal - Colombia
- Banpu Public Company Limited - Thailand
- Bangladesh Power Developement Board
- Pendopo Energi Batubara - Indonesia
- Global Business Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Parry Sugars Refinery, India
- South Luzon Thermal Energy Corporation
- Kobexindo Tractors - Indoneisa
- Dalmia Cement Bharat India
- Sakthi Sugars Limited - India
- Chettinad Cement Corporation Ltd - India
- Wilmar Investment Holdings
- Aditya Birla Group - India
- Barasentosa Lestari - Indonesia
- The Treasury - Australian Government
- European Bulk Services B.V. - Netherlands
- McConnell Dowell - Australia
- Posco Energy - South Korea
- Indian Oil Corporation Limited
- Eastern Energy - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- SN Aboitiz Power Inc, Philippines
- Xindia Steels Limited - India
- Essar Steel Hazira Ltd - India
- Coal and Oil Company - UAE
- Meralco Power Generation, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Vedanta Resources Plc - India
- Africa Commodities Group - South Africa
- Ministry of Transport, Egypt
- Videocon Industries ltd - India
- Alfred C Toepfer International GmbH - Germany
- Star Paper Mills Limited - India
- Mintek Dendrill Indonesia
- The University of Queensland
- Baramulti Group, Indonesia
- Bhoruka Overseas - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Edison Trading Spa - Italy
- Planning Commission, India
- Directorate Of Revenue Intelligence - India
- Indonesian Coal Mining Association
- Mjunction Services Limited - India
- Marubeni Corporation - India
- Intertek Mineral Services - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Economic Council, Georgia
- GMR Energy Limited - India
- Krishnapatnam Port Company Ltd. - India
- TNB Fuel Sdn Bhd - Malaysia
- Karaikal Port Pvt Ltd - India
- Central Electricity Authority - India
- Iligan Light & Power Inc, Philippines
- Sojitz Corporation - Japan
- Rashtriya Ispat Nigam Limited - India
- GVK Power & Infra Limited - India
- Renaissance Capital - South Africa
- Minerals Council of Australia
- International Coal Ventures Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Antam Resourcindo - Indonesia
- Jaiprakash Power Ventures ltd
- Energy Development Corp, Philippines
- SMG Consultants - Indonesia
- San Jose City I Power Corp, Philippines
- Cement Manufacturers Association - India
- Petrochimia International Co. Ltd.- Taiwan
- Manunggal Multi Energi - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Metalloyd Limited - United Kingdom
- Siam City Cement - Thailand
- Samtan Co., Ltd - South Korea
- Grasim Industreis Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Malabar Cements Ltd - India
- Trasteel International SA, Italy
- Asmin Koalindo Tuhup - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Cigading International Bulk Terminal - Indonesia
- Electricity Authority, New Zealand
- Anglo American - United Kingdom
- Thai Mozambique Logistica
- Larsen & Toubro Limited - India
- Bukit Baiduri Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- ICICI Bank Limited - India
- Binh Thuan Hamico - Vietnam
- Indian Energy Exchange, India
- Bahari Cakrawala Sebuku - Indonesia
- Price Waterhouse Coopers - Russia
- Sree Jayajothi Cements Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Pipit Mutiara Jaya. PT, Indonesia
- Australian Commodity Traders Exchange
- Straits Asia Resources Limited - Singapore
- Jindal Steel & Power Ltd - India
- Bhatia International Limited - India
- Indo Tambangraya Megah - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Indika Energy - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Oldendorff Carriers - Singapore
- Toyota Tsusho Corporation, Japan
- Salva Resources Pvt Ltd - India
- India Bulls Power Limited - India
- The State Trading Corporation of India Ltd
- Sindya Power Generating Company Private Ltd
- Heidelberg Cement - Germany
- Kumho Petrochemical, South Korea
- Eastern Coal Council - USA
- Makarim & Taira - Indonesia
- Lanco Infratech Ltd - India
- Semirara Mining Corp, Philippines
- Petron Corporation, Philippines
- New Zealand Coal & Carbon
- Leighton Contractors Pty Ltd - Australia
- IHS Mccloskey Coal Group - USA
- Meenaskhi Energy Private Limited - India
- GAC Shipping (India) Pvt Ltd
- Tata Chemicals Ltd - India
- Standard Chartered Bank - UAE
- CNBM International Corporation - China
- Billiton Holdings Pty Ltd - Australia
- PetroVietnam Power Coal Import and Supply Company
- Chamber of Mines of South Africa
- Miang Besar Coal Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Agrawal Coal Company - India
- Rio Tinto Coal - Australia
- PowerSource Philippines DevCo
- Wood Mackenzie - Singapore
- Bayan Resources Tbk. - Indonesia
- OPG Power Generation Pvt Ltd - India
- MS Steel International - UAE
- Therma Luzon, Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Bukit Makmur.PT - Indonesia
- SMC Global Power, Philippines
- Interocean Group of Companies - India
- Jorong Barutama Greston.PT - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Energy Link Ltd, New Zealand
- VISA Power Limited - India
- Riau Bara Harum - Indonesia
- Kaltim Prima Coal - Indonesia
- Georgia Ports Authority, United States
- Global Green Power PLC Corporation, Philippines
- Attock Cement Pakistan Limited
- Independent Power Producers Association of India
- Parliament of New Zealand
- Maharashtra Electricity Regulatory Commission - India
- Borneo Indobara - Indonesia
- Kideco Jaya Agung - Indonesia
- Savvy Resources Ltd - HongKong
- Karbindo Abesyapradhi - Indoneisa
- Aboitiz Power Corporation - Philippines
- LBH Netherlands Bv - Netherlands
- Madhucon Powers Ltd - India
- Ambuja Cements Ltd - India
- Romanian Commodities Exchange
- Sical Logistics Limited - India
- Central Java Power - Indonesia
- ASAPP Information Group - India
- Coalindo Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Bharathi Cement Corporation - India
- White Energy Company Limited
- Merrill Lynch Commodities Europe
- Bulk Trading Sa - Switzerland
- Indogreen Group - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Orica Mining Services - Indonesia
- Globalindo Alam Lestari - Indonesia
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