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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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Saturday, 25 August 12
FREIGHT RATES ARE EXPECTED TO BE STEADY NEXT WEEK - VISTAAR
COALspot.com - This week the indices showed some signs of improvement will all the segments moving up except for the handy size.
The BDI was marg ...
Saturday, 25 August 12
INDONESIAN COAL SWAP REMAINS STABLE AT LOW LEVEL
COALspot.com - Sub-Bit Indonesia coal swaps (FOB ) for October 2012 delivery gain 0.804 percent W-o-W on Friday (24 August 2012) closing but lost 0. ...
Thursday, 23 August 12
INDONESIA-INDIA, LARGE ECO SUPRA FIXED AT USD 6K FOR DELIVERY SOUTH CHINA - FEARNLEYS AS
Handy
The market continued the same trend as last week, low activity and holidays in some countries.
Rate wise unchanged, with US Gulf/Continent ...
Thursday, 23 August 12
EGCO GROUP EXPANDS TOWARDS INTEGRATED ENERGY BUSINESS WITH INVESTMENT IN INDONESIAS COAL MINE
Electricity Generating Public Company Limited or EGCO Group, the Thailand’s first Independent Power Producer has continually invaded foreign m ...
Thursday, 23 August 12
EGCO GROUP ANNOUNCES 2 BILLION BAHT PROFITS IN Q2/2012
Successfully Establishes Integrated Energy Business and Strengthen Investments in ASEAN
Mr. Sahust Pratuknukul, President of Electri ...
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- Carbofer General Trading SA - India
- Bangladesh Power Developement Board
- SMG Consultants - Indonesia
- Larsen & Toubro Limited - India
- Tata Chemicals Ltd - India
- McConnell Dowell - Australia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Sinarmas Energy and Mining - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Metalloyd Limited - United Kingdom
- Price Waterhouse Coopers - Russia
- Madhucon Powers Ltd - India
- India Bulls Power Limited - India
- Indogreen Group - Indonesia
- Rio Tinto Coal - Australia
- Therma Luzon, Inc, Philippines
- Edison Trading Spa - Italy
- Minerals Council of Australia
- Jindal Steel & Power Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Banpu Public Company Limited - Thailand
- Formosa Plastics Group - Taiwan
- IHS Mccloskey Coal Group - USA
- Ministry of Transport, Egypt
- Dalmia Cement Bharat India
- Gujarat Sidhee Cement - India
- Standard Chartered Bank - UAE
- Gujarat Electricity Regulatory Commission - India
- Bayan Resources Tbk. - Indonesia
- Sarangani Energy Corporation, Philippines
- Marubeni Corporation - India
- Borneo Indobara - Indonesia
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- International Coal Ventures Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Kideco Jaya Agung - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Indian Oil Corporation Limited
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Mercuria Energy - Indonesia
- ASAPP Information Group - India
- Oldendorff Carriers - Singapore
- Indo Tambangraya Megah - Indonesia
- Sindya Power Generating Company Private Ltd
- Electricity Generating Authority of Thailand
- Latin American Coal - Colombia
- Orica Australia Pty. Ltd.
- Aditya Birla Group - India
- Ministry of Mines - Canada
- Cigading International Bulk Terminal - Indonesia
- Semirara Mining Corp, Philippines
- Australian Commodity Traders Exchange
- Sojitz Corporation - Japan
- ICICI Bank Limited - India
- Attock Cement Pakistan Limited
- Sical Logistics Limited - India
- VISA Power Limited - India
- Aboitiz Power Corporation - Philippines
- Eastern Energy - Thailand
- London Commodity Brokers - England
- Deloitte Consulting - India
- Directorate General of MIneral and Coal - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Antam Resourcindo - Indonesia
- Australian Coal Association
- Sakthi Sugars Limited - India
- Goldman Sachs - Singapore
- Sree Jayajothi Cements Limited - India
- Independent Power Producers Association of India
- Trasteel International SA, Italy
- LBH Netherlands Bv - Netherlands
- SN Aboitiz Power Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Vedanta Resources Plc - India
- Grasim Industreis Ltd - India
- Romanian Commodities Exchange
- Power Finance Corporation Ltd., India
- Riau Bara Harum - Indonesia
- Kepco SPC Power Corporation, Philippines
- Kumho Petrochemical, South Korea
- IEA Clean Coal Centre - UK
- PowerSource Philippines DevCo
- GVK Power & Infra Limited - India
- GAC Shipping (India) Pvt Ltd
- Billiton Holdings Pty Ltd - Australia
- Intertek Mineral Services - Indonesia
- The State Trading Corporation of India Ltd
- Mjunction Services Limited - India
- Straits Asia Resources Limited - Singapore
- Timah Investasi Mineral - Indoneisa
- Bhoruka Overseas - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Orica Mining Services - Indonesia
- Coal and Oil Company - UAE
- Samtan Co., Ltd - South Korea
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Siam City Cement - Thailand
- Chettinad Cement Corporation Ltd - India
- Commonwealth Bank - Australia
- Kapuas Tunggal Persada - Indonesia
- Bukit Makmur.PT - Indonesia
- Mintek Dendrill Indonesia
- Medco Energi Mining Internasional
- Barasentosa Lestari - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Indian Energy Exchange, India
- Pendopo Energi Batubara - Indonesia
- The Treasury - Australian Government
- Thiess Contractors Indonesia
- Posco Energy - South Korea
- Planning Commission, India
- OPG Power Generation Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Krishnapatnam Port Company Ltd. - India
- Petrochimia International Co. Ltd.- Taiwan
- Lanco Infratech Ltd - India
- New Zealand Coal & Carbon
- TNB Fuel Sdn Bhd - Malaysia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Energy Development Corp, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- South Luzon Thermal Energy Corporation
- Iligan Light & Power Inc, Philippines
- Bukit Baiduri Energy - Indonesia
- Indika Energy - Indonesia
- PNOC Exploration Corporation - Philippines
- Interocean Group of Companies - India
- Africa Commodities Group - South Africa
- Leighton Contractors Pty Ltd - Australia
- CNBM International Corporation - China
- Bhushan Steel Limited - India
- Karaikal Port Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Anglo American - United Kingdom
- Ind-Barath Power Infra Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Ambuja Cements Ltd - India
- Malabar Cements Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Neyveli Lignite Corporation Ltd, - India
- Maheswari Brothers Coal Limited - India
- Essar Steel Hazira Ltd - India
- GMR Energy Limited - India
- White Energy Company Limited
- CIMB Investment Bank - Malaysia
- Meenaskhi Energy Private Limited - India
- Merrill Lynch Commodities Europe
- Mercator Lines Limited - India
- Agrawal Coal Company - India
- Vizag Seaport Private Limited - India
- Toyota Tsusho Corporation, Japan
- Global Business Power Corporation, Philippines
- Coastal Gujarat Power Limited - India
- European Bulk Services B.V. - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- GN Power Mariveles Coal Plant, Philippines
- Chamber of Mines of South Africa
- Altura Mining Limited, Indonesia
- Eastern Coal Council - USA
- Savvy Resources Ltd - HongKong
- Meralco Power Generation, Philippines
- Singapore Mercantile Exchange
- Bulk Trading Sa - Switzerland
- Binh Thuan Hamico - Vietnam
- Tamil Nadu electricity Board
- Port Waratah Coal Services - Australia
- AsiaOL BioFuels Corp., Philippines
- Directorate Of Revenue Intelligence - India
- Cement Manufacturers Association - India
- Globalindo Alam Lestari - Indonesia
- Georgia Ports Authority, United States
- Xindia Steels Limited - India
- Wood Mackenzie - Singapore
- Global Coal Blending Company Limited - Australia
- Jaiprakash Power Ventures ltd
- Kobexindo Tractors - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Energy Link Ltd, New Zealand
- Bhatia International Limited - India
- TeaM Sual Corporation - Philippines
- PTC India Limited - India
- SMC Global Power, Philippines
- Salva Resources Pvt Ltd - India
- Petron Corporation, Philippines
- Videocon Industries ltd - India
- Ceylon Electricity Board - Sri Lanka
- Coalindo Energy - Indonesia
- The University of Queensland
- San Jose City I Power Corp, Philippines
- Economic Council, Georgia
- Baramulti Group, Indonesia
- Central Java Power - Indonesia
- Parliament of New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Manunggal Multi Energi - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Indonesian Coal Mining Association
- Kaltim Prima Coal - Indonesia
- Ministry of Finance - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Renaissance Capital - South Africa
- Parry Sugars Refinery, India
- Bharathi Cement Corporation - India
- Jorong Barutama Greston.PT - Indonesia
- Thai Mozambique Logistica
- Makarim & Taira - Indonesia
- Simpson Spence & Young - Indonesia
- Siam City Cement PLC, Thailand
- Star Paper Mills Limited - India
- MS Steel International - UAE
- Heidelberg Cement - Germany
- Electricity Authority, New Zealand
- Wilmar Investment Holdings
- Central Electricity Authority - India
- Uttam Galva Steels Limited - India
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