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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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Thursday, 26 April 12
TAIPOWER TO BUY 1.15 MILLION TONS OF 5000 GAR COAL
COALspot.com - Taiwan Power Company intends to procure 1.125million tons of sub-bituminous coal for Taipower thermal power plant through open tender ...
Thursday, 26 April 12
TAIPOWER TO BUY 375,000 MT OF 4800 GAR COAL
COALspot.com - Taiwan Power Company intends to procure 375,000 metric tons of low sulfur sub-bituminous coal for Taipower thermal power plant ...
Thursday, 26 April 12
ADK SHIPPED 28,000 TONNES OF COAL THIS MONTH
COALspot.com - Orpheus Energy (ASX:OEG) has announced that four coal barges carrying a total of approximately 28,000 tonnes of ADK (Alam Duta K ...
Thursday, 26 April 12
DRY BULK CARRIERS RENTER FLEET AFTER IDLING, ON MARKETS RECOVERY - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market seems to be back on track, not only solidifying the gains of the past couple of weeks, but also racing to new heights, recuperra ...
Thursday, 26 April 12
PANAMAXES AGAIN EARN MORE THAN CAPESIZES - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The latest surge of demand for Panamaxes has led the dry bulk market to new higher ground on Monday, with the Baltic Dry Index (BDI) reaching 1,090 ...
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- Directorate General of MIneral and Coal - Indonesia
- Metalloyd Limited - United Kingdom
- Parliament of New Zealand
- Miang Besar Coal Terminal - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Vedanta Resources Plc - India
- Bhushan Steel Limited - India
- LBH Netherlands Bv - Netherlands
- Essar Steel Hazira Ltd - India
- Kapuas Tunggal Persada - Indonesia
- Attock Cement Pakistan Limited
- Georgia Ports Authority, United States
- Port Waratah Coal Services - Australia
- Parry Sugars Refinery, India
- Toyota Tsusho Corporation, Japan
- Jindal Steel & Power Ltd - India
- Anglo American - United Kingdom
- Globalindo Alam Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- IHS Mccloskey Coal Group - USA
- Aditya Birla Group - India
- Rio Tinto Coal - Australia
- Salva Resources Pvt Ltd - India
- Makarim & Taira - Indonesia
- Cement Manufacturers Association - India
- Formosa Plastics Group - Taiwan
- Interocean Group of Companies - India
- Australian Commodity Traders Exchange
- SMC Global Power, Philippines
- Central Electricity Authority - India
- Independent Power Producers Association of India
- CIMB Investment Bank - Malaysia
- Sojitz Corporation - Japan
- Gujarat Electricity Regulatory Commission - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Semirara Mining Corp, Philippines
- Cigading International Bulk Terminal - Indonesia
- Bangladesh Power Developement Board
- Bukit Baiduri Energy - Indonesia
- Binh Thuan Hamico - Vietnam
- Posco Energy - South Korea
- Pendopo Energi Batubara - Indonesia
- Intertek Mineral Services - Indonesia
- Deloitte Consulting - India
- Uttam Galva Steels Limited - India
- Renaissance Capital - South Africa
- Billiton Holdings Pty Ltd - Australia
- PetroVietnam Power Coal Import and Supply Company
- Banpu Public Company Limited - Thailand
- ASAPP Information Group - India
- GVK Power & Infra Limited - India
- PTC India Limited - India
- Kepco SPC Power Corporation, Philippines
- PNOC Exploration Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Xindia Steels Limited - India
- White Energy Company Limited
- GMR Energy Limited - India
- Coal and Oil Company - UAE
- Mercator Lines Limited - India
- ICICI Bank Limited - India
- Karaikal Port Pvt Ltd - India
- Planning Commission, India
- Energy Link Ltd, New Zealand
- Karbindo Abesyapradhi - Indoneisa
- Kobexindo Tractors - Indoneisa
- Ministry of Mines - Canada
- Eastern Energy - Thailand
- Kaltim Prima Coal - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Sarangani Energy Corporation, Philippines
- Indika Energy - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- The Treasury - Australian Government
- India Bulls Power Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Tamil Nadu electricity Board
- Siam City Cement PLC, Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Thai Mozambique Logistica
- Kideco Jaya Agung - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Petrochimia International Co. Ltd.- Taiwan
- Manunggal Multi Energi - Indonesia
- Power Finance Corporation Ltd., India
- Bhoruka Overseas - Indonesia
- Star Paper Mills Limited - India
- VISA Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bayan Resources Tbk. - Indonesia
- Bukit Makmur.PT - Indonesia
- Simpson Spence & Young - Indonesia
- Energy Development Corp, Philippines
- Mjunction Services Limited - India
- OPG Power Generation Pvt Ltd - India
- Wilmar Investment Holdings
- The University of Queensland
- Neyveli Lignite Corporation Ltd, - India
- Coastal Gujarat Power Limited - India
- Kumho Petrochemical, South Korea
- Carbofer General Trading SA - India
- The State Trading Corporation of India Ltd
- Therma Luzon, Inc, Philippines
- Price Waterhouse Coopers - Russia
- Commonwealth Bank - Australia
- Videocon Industries ltd - India
- Malabar Cements Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Baramulti Group, Indonesia
- Global Coal Blending Company Limited - Australia
- Dalmia Cement Bharat India
- Iligan Light & Power Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- International Coal Ventures Pvt Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Maharashtra Electricity Regulatory Commission - India
- Bahari Cakrawala Sebuku - Indonesia
- Economic Council, Georgia
- Merrill Lynch Commodities Europe
- Tata Chemicals Ltd - India
- Orica Mining Services - Indonesia
- IEA Clean Coal Centre - UK
- Larsen & Toubro Limited - India
- Romanian Commodities Exchange
- Vizag Seaport Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Sinarmas Energy and Mining - Indonesia
- Oldendorff Carriers - Singapore
- Ceylon Electricity Board - Sri Lanka
- Orica Australia Pty. Ltd.
- Electricity Generating Authority of Thailand
- Holcim Trading Pte Ltd - Singapore
- Antam Resourcindo - Indonesia
- Siam City Cement - Thailand
- Eastern Coal Council - USA
- Trasteel International SA, Italy
- Leighton Contractors Pty Ltd - Australia
- Chettinad Cement Corporation Ltd - India
- Madhucon Powers Ltd - India
- Kohat Cement Company Ltd. - Pakistan
- Indo Tambangraya Megah - Indonesia
- Mintek Dendrill Indonesia
- South Luzon Thermal Energy Corporation
- Indonesian Coal Mining Association
- Gujarat Sidhee Cement - India
- Gujarat Mineral Development Corp Ltd - India
- Ministry of Transport, Egypt
- Barasentosa Lestari - Indonesia
- Sree Jayajothi Cements Limited - India
- Bharathi Cement Corporation - India
- Kartika Selabumi Mining - Indonesia
- Indian Oil Corporation Limited
- Meralco Power Generation, Philippines
- Sindya Power Generating Company Private Ltd
- Ministry of Finance - Indonesia
- Bhatia International Limited - India
- Global Business Power Corporation, Philippines
- Straits Asia Resources Limited - Singapore
- Global Green Power PLC Corporation, Philippines
- Maheswari Brothers Coal Limited - India
- Aboitiz Power Corporation - Philippines
- Central Java Power - Indonesia
- SMG Consultants - Indonesia
- PowerSource Philippines DevCo
- Asmin Koalindo Tuhup - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Ind-Barath Power Infra Limited - India
- San Jose City I Power Corp, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Altura Mining Limited, Indonesia
- Riau Bara Harum - Indonesia
- Heidelberg Cement - Germany
- Latin American Coal - Colombia
- Sakthi Sugars Limited - India
- Indogreen Group - Indonesia
- Borneo Indobara - Indonesia
- Samtan Co., Ltd - South Korea
- Alfred C Toepfer International GmbH - Germany
- Standard Chartered Bank - UAE
- Singapore Mercantile Exchange
- Timah Investasi Mineral - Indoneisa
- Savvy Resources Ltd - HongKong
- CNBM International Corporation - China
- Bulk Trading Sa - Switzerland
- TeaM Sual Corporation - Philippines
- Petron Corporation, Philippines
- Sical Logistics Limited - India
- Grasim Industreis Ltd - India
- MS Steel International - UAE
- Thiess Contractors Indonesia
- Electricity Authority, New Zealand
- Africa Commodities Group - South Africa
- London Commodity Brokers - England
- Medco Energi Mining Internasional
- Meenaskhi Energy Private Limited - India
- Goldman Sachs - Singapore
- Rashtriya Ispat Nigam Limited - India
- Edison Trading Spa - Italy
- New Zealand Coal & Carbon
- Mercuria Energy - Indonesia
- Lanco Infratech Ltd - India
- Semirara Mining and Power Corporation, Philippines
- SN Aboitiz Power Inc, Philippines
- Jaiprakash Power Ventures ltd
- Agrawal Coal Company - India
- Directorate Of Revenue Intelligence - India
- McConnell Dowell - Australia
- Minerals Council of Australia
- Chamber of Mines of South Africa
- Australian Coal Association
- GN Power Mariveles Coal Plant, Philippines
- Marubeni Corporation - India
- Indian Energy Exchange, India
- Wood Mackenzie - Singapore
- Ambuja Cements Ltd - India
- Coalindo Energy - Indonesia
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