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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, 12 November 12
THE ESTABLISHMENT OF NORTH KALIMANTAN AS A NEW PROVINCE WILL NOT AFFECT THE LOCAL MINING COMPANIES
The government of Indonesia has ensured that the establishment of North Kalimantan as a new province will not affect the local mining companies ...
Monday, 12 November 12
DRILLING COMPLETED AT THE MOORLANDS DEPOSIT, WEST BOWEN PROJECT
Press Release - Cuesta Coal Limited (ASX: CQC) (“Cuesta”) is pleased to announce it has completed its exploration activities at the Moor ...
Monday, 12 November 12
BARGE-LOAD OF 5K TONNES OF COAL FROM THE ADK JOINT VENTURE SHIPPED LAST WEEK
COALspot.com - Orpheus Energy (ASX:OEG) has announced that, it has successfully shipped a 5,000 tonne of ADK thermal coal to an Indonesian trading g ...
Sunday, 11 November 12
AN OPTIMISTIC WEEK FOR INDONESIAN SUB-BIT COAL
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for January 2013 delivery gains 2.08 percent WoW and 1.28 percent DoD on Friday, 9 November ...
Sunday, 11 November 12
THE IRON ORE AND COAL PRICES MOVEMENTS REMAINS LOW - VISTAAR
COALspot.com The market remained soft with all the sectors soft.
The BDI and was down by 4.67 pct closing at 940 points, on Friday 9 Novemb ...
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- European Bulk Services B.V. - Netherlands
- Maheswari Brothers Coal Limited - India
- Bhatia International Limited - India
- Dalmia Cement Bharat India
- Global Coal Blending Company Limited - Australia
- Gujarat Sidhee Cement - India
- Kideco Jaya Agung - Indonesia
- Semirara Mining Corp, Philippines
- The Treasury - Australian Government
- Savvy Resources Ltd - HongKong
- Ministry of Finance - Indonesia
- Makarim & Taira - Indonesia
- Central Electricity Authority - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Edison Trading Spa - Italy
- Gujarat Electricity Regulatory Commission - India
- Alfred C Toepfer International GmbH - Germany
- Jindal Steel & Power Ltd - India
- Bharathi Cement Corporation - India
- Africa Commodities Group - South Africa
- Orica Mining Services - Indonesia
- Singapore Mercantile Exchange
- San Jose City I Power Corp, Philippines
- Agrawal Coal Company - India
- Meralco Power Generation, Philippines
- GMR Energy Limited - India
- Barasentosa Lestari - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Iligan Light & Power Inc, Philippines
- Timah Investasi Mineral - Indoneisa
- Malabar Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- PTC India Limited - India
- SMG Consultants - Indonesia
- Commonwealth Bank - Australia
- Global Green Power PLC Corporation, Philippines
- Georgia Ports Authority, United States
- Vedanta Resources Plc - India
- Sree Jayajothi Cements Limited - India
- Parry Sugars Refinery, India
- Sindya Power Generating Company Private Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Toyota Tsusho Corporation, Japan
- London Commodity Brokers - England
- Electricity Generating Authority of Thailand
- Rio Tinto Coal - Australia
- Wilmar Investment Holdings
- Kapuas Tunggal Persada - Indonesia
- The State Trading Corporation of India Ltd
- Oldendorff Carriers - Singapore
- Intertek Mineral Services - Indonesia
- Binh Thuan Hamico - Vietnam
- Holcim Trading Pte Ltd - Singapore
- IEA Clean Coal Centre - UK
- Thai Mozambique Logistica
- Mercator Lines Limited - India
- Petron Corporation, Philippines
- Medco Energi Mining Internasional
- Ministry of Mines - Canada
- Indika Energy - Indonesia
- Ambuja Cements Ltd - India
- Indonesian Coal Mining Association
- Siam City Cement - Thailand
- Economic Council, Georgia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- AsiaOL BioFuels Corp., Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Siam City Cement PLC, Thailand
- Port Waratah Coal Services - Australia
- Australian Coal Association
- Manunggal Multi Energi - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Altura Mining Limited, Indonesia
- Bukit Makmur.PT - Indonesia
- Sical Logistics Limited - India
- Interocean Group of Companies - India
- Straits Asia Resources Limited - Singapore
- Independent Power Producers Association of India
- Jaiprakash Power Ventures ltd
- Standard Chartered Bank - UAE
- Antam Resourcindo - Indonesia
- IHS Mccloskey Coal Group - USA
- Energy Link Ltd, New Zealand
- Romanian Commodities Exchange
- Sojitz Corporation - Japan
- Kohat Cement Company Ltd. - Pakistan
- VISA Power Limited - India
- Eastern Coal Council - USA
- Parliament of New Zealand
- Borneo Indobara - Indonesia
- Uttam Galva Steels Limited - India
- Cigading International Bulk Terminal - Indonesia
- Grasim Industreis Ltd - India
- India Bulls Power Limited - India
- SN Aboitiz Power Inc, Philippines
- Ministry of Transport, Egypt
- Bulk Trading Sa - Switzerland
- Eastern Energy - Thailand
- Semirara Mining and Power Corporation, Philippines
- Ceylon Electricity Board - Sri Lanka
- Gujarat Mineral Development Corp Ltd - India
- Sarangani Energy Corporation, Philippines
- Electricity Authority, New Zealand
- GVK Power & Infra Limited - India
- Kumho Petrochemical, South Korea
- Indian Oil Corporation Limited
- Mintek Dendrill Indonesia
- Salva Resources Pvt Ltd - India
- Baramulti Group, Indonesia
- Kaltim Prima Coal - Indonesia
- Bhushan Steel Limited - India
- Deloitte Consulting - India
- Orica Australia Pty. Ltd.
- Offshore Bulk Terminal Pte Ltd, Singapore
- The University of Queensland
- Trasteel International SA, Italy
- CIMB Investment Bank - Malaysia
- Anglo American - United Kingdom
- Heidelberg Cement - Germany
- Latin American Coal - Colombia
- Vizag Seaport Private Limited - India
- Mercuria Energy - Indonesia
- Central Java Power - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Kartika Selabumi Mining - Indonesia
- White Energy Company Limited
- Formosa Plastics Group - Taiwan
- Goldman Sachs - Singapore
- Carbofer General Trading SA - India
- Essar Steel Hazira Ltd - India
- Renaissance Capital - South Africa
- Therma Luzon, Inc, Philippines
- Riau Bara Harum - Indonesia
- GAC Shipping (India) Pvt Ltd
- Minerals Council of Australia
- Directorate General of MIneral and Coal - Indonesia
- Kobexindo Tractors - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- South Luzon Thermal Energy Corporation
- Globalindo Alam Lestari - Indonesia
- ICICI Bank Limited - India
- Metalloyd Limited - United Kingdom
- Krishnapatnam Port Company Ltd. - India
- OPG Power Generation Pvt Ltd - India
- ASAPP Information Group - India
- Xindia Steels Limited - India
- MS Steel International - UAE
- Sakthi Sugars Limited - India
- Larsen & Toubro Limited - India
- Karaikal Port Pvt Ltd - India
- Power Finance Corporation Ltd., India
- International Coal Ventures Pvt Ltd - India
- New Zealand Coal & Carbon
- Petrochimia International Co. Ltd.- Taiwan
- Star Paper Mills Limited - India
- Bhoruka Overseas - Indonesia
- Australian Commodity Traders Exchange
- GN Power Mariveles Coal Plant, Philippines
- Energy Development Corp, Philippines
- Chamber of Mines of South Africa
- Asmin Koalindo Tuhup - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Kepco SPC Power Corporation, Philippines
- Marubeni Corporation - India
- Indogreen Group - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Kalimantan Lumbung Energi - Indonesia
- TeaM Sual Corporation - Philippines
- McConnell Dowell - Australia
- Bangladesh Power Developement Board
- Madhucon Powers Ltd - India
- Attock Cement Pakistan Limited
- Asia Pacific Energy Resources Ventures Inc, Philippines
- LBH Netherlands Bv - Netherlands
- Videocon Industries ltd - India
- Miang Besar Coal Terminal - Indonesia
- Aditya Birla Group - India
- Tata Chemicals Ltd - India
- Sinarmas Energy and Mining - Indonesia
- Price Waterhouse Coopers - Russia
- SMC Global Power, Philippines
- Simpson Spence & Young - Indonesia
- Global Business Power Corporation, Philippines
- Tamil Nadu electricity Board
- Chettinad Cement Corporation Ltd - India
- Cement Manufacturers Association - India
- Lanco Infratech Ltd - India
- Indo Tambangraya Megah - Indonesia
- Bukit Baiduri Energy - Indonesia
- Coalindo Energy - Indonesia
- Merrill Lynch Commodities Europe
- Mjunction Services Limited - India
- Ind-Barath Power Infra Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Leighton Contractors Pty Ltd - Australia
- PetroVietnam Power Coal Import and Supply Company
- Neyveli Lignite Corporation Ltd, - India
- Meenaskhi Energy Private Limited - India
- Wood Mackenzie - Singapore
- Rashtriya Ispat Nigam Limited - India
- Planning Commission, India
- Bayan Resources Tbk. - Indonesia
- PNOC Exploration Corporation - Philippines
- Posco Energy - South Korea
- Coastal Gujarat Power Limited - India
- Banpu Public Company Limited - Thailand
- PowerSource Philippines DevCo
- Directorate Of Revenue Intelligence - India
- Samtan Co., Ltd - South Korea
- Indian Energy Exchange, India
- CNBM International Corporation - China
- Coal and Oil Company - UAE
- Thiess Contractors Indonesia
- Pendopo Energi Batubara - Indonesia
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