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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, 06 November 12
NOVEMBER 2012 HBA $35.21 LOWER THAN A YEAR AGO
COALspot.com - The Indonesian government’s declared coal reference price for November’ 12 has lost US$ 4.60 per MT M-o-M.
...
Sunday, 04 November 12
SUB-BIT INDONESIA COAL SWAPS FOR DECEMBER' 12 DELIVERY FALLS TO $ 59.78
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for December 2012 delivery fell -1.02 percent on WoW but gained 0.08 percent on D-D on Friday, 2 ...
Saturday, 03 November 12
THE SUPRAMAX FREIGHT EXPECTED TO BE SOFT NEXT WEEK - VISTAAR
COALspot.com - This week the market remained soft with all the sectors soft.
The BDI and was down by 6 pct closing at 986 points. The cape index ...
Saturday, 03 November 12
DEMOLITION IS THE KEY FOR DRY BULK SHIPPING'S RECOVERY SAYS SHIPBROKER - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING NEWS
With the number of new building deliveries so far in 2012 already having surpassed the total of 2011, it's more than clear that the dry bulk sector ...
Thursday, 01 November 12
INDONESIA HAS REVISED DOWN ITS 2012 DOMESTIC MARKET OBLIGATION REQUIREMENT FOR COAL
COALspot.com - Minister of Energy and Mineral Resources of Indonesia has revised down its 2012 domestic market obligation requirement due to lower d ...
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- Salva Resources Pvt Ltd - India
- Kideco Jaya Agung - Indonesia
- Indogreen Group - Indonesia
- Australian Commodity Traders Exchange
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sical Logistics Limited - India
- Orica Australia Pty. Ltd.
- Port Waratah Coal Services - Australia
- Gujarat Mineral Development Corp Ltd - India
- Meralco Power Generation, Philippines
- Chettinad Cement Corporation Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Samtan Co., Ltd - South Korea
- Globalindo Alam Lestari - Indonesia
- Sarangani Energy Corporation, Philippines
- Dalmia Cement Bharat India
- GN Power Mariveles Coal Plant, Philippines
- Economic Council, Georgia
- Chamber of Mines of South Africa
- Vijayanagar Sugar Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Miang Besar Coal Terminal - Indonesia
- Directorate Of Revenue Intelligence - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Posco Energy - South Korea
- Cement Manufacturers Association - India
- Interocean Group of Companies - India
- Jaiprakash Power Ventures ltd
- Carbofer General Trading SA - India
- Edison Trading Spa - Italy
- Gujarat Sidhee Cement - India
- Anglo American - United Kingdom
- Goldman Sachs - Singapore
- Lanco Infratech Ltd - India
- Indonesian Coal Mining Association
- Krishnapatnam Port Company Ltd. - India
- Marubeni Corporation - India
- Borneo Indobara - Indonesia
- Baramulti Group, Indonesia
- Siam City Cement - Thailand
- Deloitte Consulting - India
- Oldendorff Carriers - Singapore
- Banpu Public Company Limited - Thailand
- Star Paper Mills Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Larsen & Toubro Limited - India
- Savvy Resources Ltd - HongKong
- Electricity Generating Authority of Thailand
- MS Steel International - UAE
- Ind-Barath Power Infra Limited - India
- CNBM International Corporation - China
- Wilmar Investment Holdings
- Offshore Bulk Terminal Pte Ltd, Singapore
- ICICI Bank Limited - India
- Uttam Galva Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Thai Mozambique Logistica
- Ceylon Electricity Board - Sri Lanka
- Bulk Trading Sa - Switzerland
- Therma Luzon, Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Electricity Authority, New Zealand
- White Energy Company Limited
- Leighton Contractors Pty Ltd - Australia
- Global Coal Blending Company Limited - Australia
- Mintek Dendrill Indonesia
- Ministry of Transport, Egypt
- McConnell Dowell - Australia
- Gujarat Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- Energy Link Ltd, New Zealand
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Timah Investasi Mineral - Indoneisa
- GAC Shipping (India) Pvt Ltd
- Indo Tambangraya Megah - Indonesia
- SMG Consultants - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Pendopo Energi Batubara - Indonesia
- Global Business Power Corporation, Philippines
- Indika Energy - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Medco Energi Mining Internasional
- Kaltim Prima Coal - Indonesia
- India Bulls Power Limited - India
- Aboitiz Power Corporation - Philippines
- Madhucon Powers Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Petron Corporation, Philippines
- Bukit Makmur.PT - Indonesia
- PTC India Limited - India
- European Bulk Services B.V. - Netherlands
- Indian Energy Exchange, India
- Rio Tinto Coal - Australia
- Planning Commission, India
- Formosa Plastics Group - Taiwan
- Riau Bara Harum - Indonesia
- TeaM Sual Corporation - Philippines
- Makarim & Taira - Indonesia
- Antam Resourcindo - Indonesia
- Bhoruka Overseas - Indonesia
- Agrawal Coal Company - India
- Thiess Contractors Indonesia
- Intertek Mineral Services - Indonesia
- Africa Commodities Group - South Africa
- Bhushan Steel Limited - India
- San Jose City I Power Corp, Philippines
- Alfred C Toepfer International GmbH - Germany
- Binh Thuan Hamico - Vietnam
- Semirara Mining Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Coastal Gujarat Power Limited - India
- Bharathi Cement Corporation - India
- Sakthi Sugars Limited - India
- Trasteel International SA, Italy
- Bukit Asam (Persero) Tbk - Indonesia
- Indian Oil Corporation Limited
- Parry Sugars Refinery, India
- Asmin Koalindo Tuhup - Indonesia
- Tata Chemicals Ltd - India
- Siam City Cement PLC, Thailand
- Bayan Resources Tbk. - Indonesia
- Tamil Nadu electricity Board
- Kepco SPC Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- SMC Global Power, Philippines
- CIMB Investment Bank - Malaysia
- Romanian Commodities Exchange
- IEA Clean Coal Centre - UK
- Semirara Mining and Power Corporation, Philippines
- Sojitz Corporation - Japan
- Kapuas Tunggal Persada - Indonesia
- Bhatia International Limited - India
- The Treasury - Australian Government
- Sree Jayajothi Cements Limited - India
- LBH Netherlands Bv - Netherlands
- Malabar Cements Ltd - India
- The University of Queensland
- Mercator Lines Limited - India
- IHS Mccloskey Coal Group - USA
- Georgia Ports Authority, United States
- Latin American Coal - Colombia
- Barasentosa Lestari - Indonesia
- Xindia Steels Limited - India
- GVK Power & Infra Limited - India
- PNOC Exploration Corporation - Philippines
- Wood Mackenzie - Singapore
- Energy Development Corp, Philippines
- Sinarmas Energy and Mining - Indonesia
- Neyveli Lignite Corporation Ltd, - India
- London Commodity Brokers - England
- Simpson Spence & Young - Indonesia
- Commonwealth Bank - Australia
- Iligan Light & Power Inc, Philippines
- Eastern Energy - Thailand
- Bangladesh Power Developement Board
- Kobexindo Tractors - Indoneisa
- Grasim Industreis Ltd - India
- Heidelberg Cement - Germany
- Metalloyd Limited - United Kingdom
- SN Aboitiz Power Inc, Philippines
- PowerSource Philippines DevCo
- Manunggal Multi Energi - Indonesia
- VISA Power Limited - India
- Singapore Mercantile Exchange
- OPG Power Generation Pvt Ltd - India
- New Zealand Coal & Carbon
- Directorate General of MIneral and Coal - Indonesia
- Straits Asia Resources Limited - Singapore
- Karaikal Port Pvt Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Bukit Baiduri Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Central Java Power - Indonesia
- Kumho Petrochemical, South Korea
- Orica Mining Services - Indonesia
- Ministry of Finance - Indonesia
- Standard Chartered Bank - UAE
- Eastern Coal Council - USA
- Coalindo Energy - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Jindal Steel & Power Ltd - India
- GMR Energy Limited - India
- Minerals Council of Australia
- Altura Mining Limited, Indonesia
- Central Electricity Authority - India
- Mjunction Services Limited - India
- Ambuja Cements Ltd - India
- Maheswari Brothers Coal Limited - India
- Independent Power Producers Association of India
- Parliament of New Zealand
- Australian Coal Association
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Essar Steel Hazira Ltd - India
- Vizag Seaport Private Limited - India
- Renaissance Capital - South Africa
- Attock Cement Pakistan Limited
- ASAPP Information Group - India
- Power Finance Corporation Ltd., India
- Videocon Industries ltd - India
- Billiton Holdings Pty Ltd - Australia
- Aditya Birla Group - India
- International Coal Ventures Pvt Ltd - India
- Coal and Oil Company - UAE
- Vedanta Resources Plc - India
- The State Trading Corporation of India Ltd
- Cigading International Bulk Terminal - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Rashtriya Ispat Nigam Limited - India
- Sindya Power Generating Company Private Ltd
- Mercuria Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Ministry of Mines - Canada
- South Luzon Thermal Energy Corporation
- Karbindo Abesyapradhi - Indoneisa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Merrill Lynch Commodities Europe
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