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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, 01 February 13
HANDY - FLAT; PANAMAX - FLAT TO WEAK; CAPESIZE - WEAK
Handy
The Atlantic market remained stable with no significant movement in rates. Rates from USG to FEast were around USD 17k and Black sea to Feast ...
Thursday, 31 January 13
DRY BULK RATES ON A FALLING PATTERN DUE TO ADVERSE WEATHER CONDITIONS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
The seasonal factor has emerged as the latest catalyst in determining the course of the dry bulk market, as the floods in eastern Australia, the big ...
Thursday, 31 January 13
NEWCASTLE PORT SHIPPED 2.70 MMT OF COAL W/E 28 JANUARY 2013
COALspot.com - Newcastle port in Australia has loaded 2,703,921 MT of thermal and coking coal for week ended 0700 hours 28 January 2013, Newca ...
Thursday, 31 January 13
MMTC TO IMPORT 2.68 MMT OF COAL FOR ARAVALI POWER CORPORATION LTD
COALspot.com: The tender floated by MMTC on behalf of Aravali Power Corporation Ltd, a Joint venture between NTPC and State of Haryana for supply of ...
Wednesday, 30 January 13
TNPL TO SECURE 300K MT OF IMPORTED COAL SUPPLIES AT US$ 75.95 PMT FOR MARCH - AUGUST 2013 DELIVERY
COALspot.com – Chennai based Coastal Energy Private Limited (C&O Group of companies) offered lowest price of US$ 75.95 per met ...
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- Grasim Industreis Ltd - India
- Bayan Resources Tbk. - Indonesia
- Sarangani Energy Corporation, Philippines
- Standard Chartered Bank - UAE
- TeaM Sual Corporation - Philippines
- Commonwealth Bank - Australia
- Semirara Mining and Power Corporation, Philippines
- Heidelberg Cement - Germany
- Aboitiz Power Corporation - Philippines
- Savvy Resources Ltd - HongKong
- Planning Commission, India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Anglo American - United Kingdom
- Sindya Power Generating Company Private Ltd
- Global Business Power Corporation, Philippines
- Goldman Sachs - Singapore
- Jaiprakash Power Ventures ltd
- Binh Thuan Hamico - Vietnam
- AsiaOL BioFuels Corp., Philippines
- Madhucon Powers Ltd - India
- Singapore Mercantile Exchange
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bharathi Cement Corporation - India
- Kaltim Prima Coal - Indonesia
- Attock Cement Pakistan Limited
- Maheswari Brothers Coal Limited - India
- OPG Power Generation Pvt Ltd - India
- Wood Mackenzie - Singapore
- Eastern Coal Council - USA
- India Bulls Power Limited - India
- Electricity Generating Authority of Thailand
- Ministry of Mines - Canada
- Kohat Cement Company Ltd. - Pakistan
- Medco Energi Mining Internasional
- Jindal Steel & Power Ltd - India
- Trasteel International SA, Italy
- Samtan Co., Ltd - South Korea
- Electricity Authority, New Zealand
- Holcim Trading Pte Ltd - Singapore
- Mercuria Energy - Indonesia
- Baramulti Group, Indonesia
- Cement Manufacturers Association - India
- Straits Asia Resources Limited - Singapore
- Bangladesh Power Developement Board
- PetroVietnam Power Coal Import and Supply Company
- The Treasury - Australian Government
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bhoruka Overseas - Indonesia
- Power Finance Corporation Ltd., India
- Economic Council, Georgia
- Bahari Cakrawala Sebuku - Indonesia
- LBH Netherlands Bv - Netherlands
- International Coal Ventures Pvt Ltd - India
- ICICI Bank Limited - India
- Malabar Cements Ltd - India
- Asmin Koalindo Tuhup - Indonesia
- Ministry of Finance - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Star Paper Mills Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bulk Trading Sa - Switzerland
- Manunggal Multi Energi - Indonesia
- Parry Sugars Refinery, India
- Sakthi Sugars Limited - India
- PowerSource Philippines DevCo
- Sojitz Corporation - Japan
- Antam Resourcindo - Indonesia
- Larsen & Toubro Limited - India
- Indonesian Coal Mining Association
- New Zealand Coal & Carbon
- Leighton Contractors Pty Ltd - Australia
- Miang Besar Coal Terminal - Indonesia
- The State Trading Corporation of India Ltd
- GMR Energy Limited - India
- Riau Bara Harum - Indonesia
- Deloitte Consulting - India
- Makarim & Taira - Indonesia
- IHS Mccloskey Coal Group - USA
- Latin American Coal - Colombia
- Global Green Power PLC Corporation, Philippines
- Banpu Public Company Limited - Thailand
- Mercator Lines Limited - India
- Tata Chemicals Ltd - India
- Marubeni Corporation - India
- Borneo Indobara - Indonesia
- White Energy Company Limited
- Siam City Cement - Thailand
- Krishnapatnam Port Company Ltd. - India
- Renaissance Capital - South Africa
- SN Aboitiz Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Lanco Infratech Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Cigading International Bulk Terminal - Indonesia
- Kartika Selabumi Mining - Indonesia
- Directorate Of Revenue Intelligence - India
- Coastal Gujarat Power Limited - India
- MS Steel International - UAE
- Georgia Ports Authority, United States
- Xindia Steels Limited - India
- Iligan Light & Power Inc, Philippines
- Kapuas Tunggal Persada - Indonesia
- Kumho Petrochemical, South Korea
- SMG Consultants - Indonesia
- Vizag Seaport Private Limited - India
- Kepco SPC Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- Australian Coal Association
- Global Coal Blending Company Limited - Australia
- Parliament of New Zealand
- Meenaskhi Energy Private Limited - India
- Africa Commodities Group - South Africa
- Thiess Contractors Indonesia
- Bukit Baiduri Energy - Indonesia
- Sree Jayajothi Cements Limited - India
- Bhatia International Limited - India
- CNBM International Corporation - China
- Rio Tinto Coal - Australia
- Bhushan Steel Limited - India
- Aditya Birla Group - India
- Indian Oil Corporation Limited
- Romanian Commodities Exchange
- CIMB Investment Bank - Malaysia
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Makmur.PT - Indonesia
- Price Waterhouse Coopers - Russia
- GN Power Mariveles Coal Plant, Philippines
- Timah Investasi Mineral - Indoneisa
- Indika Energy - Indonesia
- Globalindo Alam Lestari - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- IEA Clean Coal Centre - UK
- Mjunction Services Limited - India
- Formosa Plastics Group - Taiwan
- Maharashtra Electricity Regulatory Commission - India
- SMC Global Power, Philippines
- Therma Luzon, Inc, Philippines
- Central Java Power - Indonesia
- Central Electricity Authority - India
- South Luzon Thermal Energy Corporation
- Toyota Tsusho Corporation, Japan
- Coalindo Energy - Indonesia
- Simpson Spence & Young - Indonesia
- Coal and Oil Company - UAE
- Posco Energy - South Korea
- Dalmia Cement Bharat India
- Independent Power Producers Association of India
- Rashtriya Ispat Nigam Limited - India
- Kobexindo Tractors - Indoneisa
- Pendopo Energi Batubara - Indonesia
- GAC Shipping (India) Pvt Ltd
- Tamil Nadu electricity Board
- Salva Resources Pvt Ltd - India
- Gujarat Electricity Regulatory Commission - India
- Chamber of Mines of South Africa
- Directorate General of MIneral and Coal - Indonesia
- Orica Australia Pty. Ltd.
- Kalimantan Lumbung Energi - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Meralco Power Generation, Philippines
- ASAPP Information Group - India
- Indogreen Group - Indonesia
- The University of Queensland
- Uttam Galva Steels Limited - India
- GVK Power & Infra Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Energy Exchange, India
- Indo Tambangraya Megah - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Edison Trading Spa - Italy
- Carbofer General Trading SA - India
- Thai Mozambique Logistica
- Energy Link Ltd, New Zealand
- Petron Corporation, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Chettinad Cement Corporation Ltd - India
- London Commodity Brokers - England
- VISA Power Limited - India
- Ceylon Electricity Board - Sri Lanka
- Karaikal Port Pvt Ltd - India
- Vedanta Resources Plc - India
- Intertek Mineral Services - Indonesia
- Ind-Barath Power Infra Limited - India
- Gujarat Sidhee Cement - India
- Eastern Energy - Thailand
- Petrochimia International Co. Ltd.- Taiwan
- Videocon Industries ltd - India
- Ambuja Cements Ltd - India
- Agrawal Coal Company - India
- McConnell Dowell - Australia
- European Bulk Services B.V. - Netherlands
- Orica Mining Services - Indonesia
- Kideco Jaya Agung - Indonesia
- Energy Development Corp, Philippines
- PTC India Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Mintek Dendrill Indonesia
- Australian Commodity Traders Exchange
- Siam City Cement PLC, Thailand
- Sical Logistics Limited - India
- Wilmar Investment Holdings
- San Jose City I Power Corp, Philippines
- Semirara Mining Corp, Philippines
- Minerals Council of Australia
- Metalloyd Limited - United Kingdom
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Oldendorff Carriers - Singapore
- Merrill Lynch Commodities Europe
- Port Waratah Coal Services - Australia
- Ministry of Transport, Egypt
- Altura Mining Limited, Indonesia
- Interocean Group of Companies - India
- Barasentosa Lestari - Indonesia
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