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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 February 13
10TH CLEAN COAL FORUM WILL BE HELD ON JUNE 2013
CDMC Events will be presenting the 10th Clean Coal Forum 2013 on June 13 - 14, 2013 in Beijing,China.
It will make you understand regulatory asp ...
Sunday, 24 February 13
COAL SWAPS INCH UP WEEK - ON - WEEK
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for average Q2’ 2013 delivery has gained 0.17 percent and CFR South China coal shipme ...
Sunday, 24 February 13
BDI FELL 1.72 PERCENT BUT FREIGHT MARKET FAIRLY STEADY - VISTAAR
COALspot.com - This freight market has been fairly steady this week but, BDI fell1.72 pct and closed at 740 points.
The cape index also joins BDI ...
Saturday, 23 February 13
IHS MCCLOSKEY 20TH ANNUAL COAL CONFERENCE OF THE AMERICAS
IHS McCloskey 20th Annual Coal Conference of the Americas to be held on 13-14 March 2013 in Cartagena, Colombia
IHS is pleased to invite you to t ...
Thursday, 21 February 13
HANDY : THE PACIFIC MARKET GOT FIRMED UP AS CHINESE CAME BACK FROM HOLIDAYS - FEARNLEYS
Handy
The Atlantic saw more cargoes than last week but rates remained unchanged as lot of ships in the market. The USG-Feast was at USD 18k and Bla ...
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- Mjunction Services Limited - India
- Chettinad Cement Corporation Ltd - India
- The University of Queensland
- Grasim Industreis Ltd - India
- Independent Power Producers Association of India
- Wood Mackenzie - Singapore
- International Coal Ventures Pvt Ltd - India
- Orica Mining Services - Indonesia
- Simpson Spence & Young - Indonesia
- Toyota Tsusho Corporation, Japan
- Maheswari Brothers Coal Limited - India
- Indonesian Coal Mining Association
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement - Thailand
- Karbindo Abesyapradhi - Indoneisa
- Bayan Resources Tbk. - Indonesia
- Salva Resources Pvt Ltd - India
- European Bulk Services B.V. - Netherlands
- ASAPP Information Group - India
- Semirara Mining Corp, Philippines
- GAC Shipping (India) Pvt Ltd
- Australian Commodity Traders Exchange
- Gujarat Mineral Development Corp Ltd - India
- Metalloyd Limited - United Kingdom
- TNB Fuel Sdn Bhd - Malaysia
- Minerals Council of Australia
- Borneo Indobara - Indonesia
- Attock Cement Pakistan Limited
- CNBM International Corporation - China
- Indo Tambangraya Megah - Indonesia
- Kobexindo Tractors - Indoneisa
- Australian Coal Association
- Directorate Of Revenue Intelligence - India
- San Jose City I Power Corp, Philippines
- Petron Corporation, Philippines
- Bhushan Steel Limited - India
- Asmin Koalindo Tuhup - Indonesia
- Sarangani Energy Corporation, Philippines
- Global Green Power PLC Corporation, Philippines
- Essar Steel Hazira Ltd - India
- Carbofer General Trading SA - India
- SMC Global Power, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Intertek Mineral Services - Indonesia
- White Energy Company Limited
- Interocean Group of Companies - India
- Formosa Plastics Group - Taiwan
- Global Business Power Corporation, Philippines
- Malabar Cements Ltd - India
- Heidelberg Cement - Germany
- Timah Investasi Mineral - Indoneisa
- Wilmar Investment Holdings
- Videocon Industries ltd - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Standard Chartered Bank - UAE
- Port Waratah Coal Services - Australia
- Xindia Steels Limited - India
- PTC India Limited - India
- Thai Mozambique Logistica
- Cement Manufacturers Association - India
- Bharathi Cement Corporation - India
- Aditya Birla Group - India
- AsiaOL BioFuels Corp., Philippines
- Ministry of Mines - Canada
- Vedanta Resources Plc - India
- Eastern Energy - Thailand
- Energy Development Corp, Philippines
- IEA Clean Coal Centre - UK
- Edison Trading Spa - Italy
- Cigading International Bulk Terminal - Indonesia
- Indian Oil Corporation Limited
- Makarim & Taira - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- CIMB Investment Bank - Malaysia
- Coalindo Energy - Indonesia
- Tata Chemicals Ltd - India
- Kaltim Prima Coal - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Chamber of Mines of South Africa
- Siam City Cement PLC, Thailand
- Manunggal Multi Energi - Indonesia
- Trasteel International SA, Italy
- Indika Energy - Indonesia
- Oldendorff Carriers - Singapore
- Bhatia International Limited - India
- Bukit Makmur.PT - Indonesia
- Globalindo Alam Lestari - Indonesia
- Georgia Ports Authority, United States
- Ind-Barath Power Infra Limited - India
- Ministry of Finance - Indonesia
- VISA Power Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Indogreen Group - Indonesia
- Therma Luzon, Inc, Philippines
- Renaissance Capital - South Africa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Antam Resourcindo - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Barasentosa Lestari - Indonesia
- Singapore Mercantile Exchange
- Pendopo Energi Batubara - Indonesia
- Agrawal Coal Company - India
- Merrill Lynch Commodities Europe
- Mercuria Energy - Indonesia
- Sojitz Corporation - Japan
- Ambuja Cements Ltd - India
- Medco Energi Mining Internasional
- Sree Jayajothi Cements Limited - India
- Gujarat Sidhee Cement - India
- Sical Logistics Limited - India
- Parliament of New Zealand
- Bulk Trading Sa - Switzerland
- Kapuas Tunggal Persada - Indonesia
- Anglo American - United Kingdom
- Parry Sugars Refinery, India
- Economic Council, Georgia
- Ceylon Electricity Board - Sri Lanka
- Electricity Authority, New Zealand
- Global Coal Blending Company Limited - Australia
- Vijayanagar Sugar Pvt Ltd - India
- Karaikal Port Pvt Ltd - India
- Bangladesh Power Developement Board
- PNOC Exploration Corporation - Philippines
- PetroVietnam Power Coal Import and Supply Company
- Planning Commission, India
- Mercator Lines Limited - India
- Meralco Power Generation, Philippines
- Coastal Gujarat Power Limited - India
- Riau Bara Harum - Indonesia
- Iligan Light & Power Inc, Philippines
- Jaiprakash Power Ventures ltd
- MS Steel International - UAE
- Commonwealth Bank - Australia
- Semirara Mining and Power Corporation, Philippines
- Price Waterhouse Coopers - Russia
- Banpu Public Company Limited - Thailand
- Orica Australia Pty. Ltd.
- Savvy Resources Ltd - HongKong
- Meenaskhi Energy Private Limited - India
- Romanian Commodities Exchange
- Jorong Barutama Greston.PT - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- South Luzon Thermal Energy Corporation
- Posco Energy - South Korea
- Larsen & Toubro Limited - India
- Kideco Jaya Agung - Indonesia
- Tamil Nadu electricity Board
- Rio Tinto Coal - Australia
- Energy Link Ltd, New Zealand
- LBH Netherlands Bv - Netherlands
- Central Electricity Authority - India
- PowerSource Philippines DevCo
- The Treasury - Australian Government
- Indian Energy Exchange, India
- Sinarmas Energy and Mining - Indonesia
- Dalmia Cement Bharat India
- Uttam Galva Steels Limited - India
- Aboitiz Power Corporation - Philippines
- Goldman Sachs - Singapore
- Offshore Bulk Terminal Pte Ltd, Singapore
- Ministry of Transport, Egypt
- Bukit Asam (Persero) Tbk - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- New Zealand Coal & Carbon
- Bukit Baiduri Energy - Indonesia
- Mintek Dendrill Indonesia
- India Bulls Power Limited - India
- Deloitte Consulting - India
- Kumho Petrochemical, South Korea
- Miang Besar Coal Terminal - Indonesia
- Binh Thuan Hamico - Vietnam
- McConnell Dowell - Australia
- Latin American Coal - Colombia
- Lanco Infratech Ltd - India
- Bhoruka Overseas - Indonesia
- TeaM Sual Corporation - Philippines
- Africa Commodities Group - South Africa
- Sindya Power Generating Company Private Ltd
- Samtan Co., Ltd - South Korea
- ICICI Bank Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Altura Mining Limited, Indonesia
- SN Aboitiz Power Inc, Philippines
- Baramulti Group, Indonesia
- Kartika Selabumi Mining - Indonesia
- Holcim Trading Pte Ltd - Singapore
- GVK Power & Infra Limited - India
- Coal and Oil Company - UAE
- Marubeni Corporation - India
- Madhucon Powers Ltd - India
- GMR Energy Limited - India
- The State Trading Corporation of India Ltd
- London Commodity Brokers - England
- GN Power Mariveles Coal Plant, Philippines
- Billiton Holdings Pty Ltd - Australia
- Power Finance Corporation Ltd., India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Jindal Steel & Power Ltd - India
- OPG Power Generation Pvt Ltd - India
- SMG Consultants - Indonesia
- Central Java Power - Indonesia
- Star Paper Mills Limited - India
- Sakthi Sugars Limited - India
- Electricity Generating Authority of Thailand
- Kepco SPC Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Krishnapatnam Port Company Ltd. - India
- Thiess Contractors Indonesia
- Gujarat Electricity Regulatory Commission - India
- Neyveli Lignite Corporation Ltd, - India
- Petrochimia International Co. Ltd.- Taiwan
- Straits Asia Resources Limited - Singapore
- Vizag Seaport Private Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Eastern Coal Council - USA
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