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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 March 12
DRY BULK RATES WILL REMAIN LOW IN 2012 SAYS DANISH SHIP FINANCE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
In its annual shipping survey Danish Ship Finance said that the current outlook for the Dry Bulk market seems unlikely to foster higher rates in any ...
Monday, 12 March 12
WEEKLY DRY MARKET OVERVIEW - MARIA BERTZELETOU, HELLENIC SHIPPING
The first days of March appear to be more encouraging for dry bulk operators, but the outlook is still gloomy for the rest of year with earnings for ...
Sunday, 11 March 12
FREIGHT RATES FOR INDONESIA TO INDIA WILL CONTINUE TO REMAIN FIRM- VISTAAR
COALspot.com - This week saw another upward trend with all indices up except for the Cape index.
The BDI was up by 6.87 pct closing at 824 points ...
Friday, 09 March 12
MINING IN INDONESIA: RESTRICTION ON FOREIGN INVESTMENT - SUNIL K KUMBHAT
COALspot.com - Recently Govt has passed regulation instructing foreign mining companies to reduce their ownership stake.
The regulation known as ...
Friday, 09 March 12
SHIP OWNERS LOOKING TO CHINA FOR REVIVAL, WHILE THEY KEEP SELLING OLD SHIPS FOR SCRAP - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
With China’s economic policy plan for the future on every ship owner’s mind, at least those involved in the dry bulk industry, the lates ...
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Showing 4811 to 4815 news of total 6871 |
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- Sarangani Energy Corporation, Philippines
- Ministry of Finance - Indonesia
- GMR Energy Limited - India
- Wilmar Investment Holdings
- SMG Consultants - Indonesia
- Barasentosa Lestari - Indonesia
- Toyota Tsusho Corporation, Japan
- Mercuria Energy - Indonesia
- Bhoruka Overseas - Indonesia
- Bangladesh Power Developement Board
- Asmin Koalindo Tuhup - Indonesia
- Iligan Light & Power Inc, Philippines
- International Coal Ventures Pvt Ltd - India
- MS Steel International - UAE
- Economic Council, Georgia
- Minerals Council of Australia
- Gujarat Mineral Development Corp Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Singapore Mercantile Exchange
- Leighton Contractors Pty Ltd - Australia
- GVK Power & Infra Limited - India
- Electricity Generating Authority of Thailand
- TeaM Sual Corporation - Philippines
- Anglo American - United Kingdom
- Globalindo Alam Lestari - Indonesia
- Attock Cement Pakistan Limited
- Kumho Petrochemical, South Korea
- Directorate Of Revenue Intelligence - India
- IEA Clean Coal Centre - UK
- Tamil Nadu electricity Board
- Bukit Baiduri Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Malabar Cements Ltd - India
- Bulk Trading Sa - Switzerland
- Rashtriya Ispat Nigam Limited - India
- Essar Steel Hazira Ltd - India
- White Energy Company Limited
- PTC India Limited - India
- Altura Mining Limited, Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Edison Trading Spa - Italy
- Thai Mozambique Logistica
- GAC Shipping (India) Pvt Ltd
- Lanco Infratech Ltd - India
- Renaissance Capital - South Africa
- Parliament of New Zealand
- Simpson Spence & Young - Indonesia
- PowerSource Philippines DevCo
- IHS Mccloskey Coal Group - USA
- Merrill Lynch Commodities Europe
- Rio Tinto Coal - Australia
- Petron Corporation, Philippines
- Meralco Power Generation, Philippines
- Baramulti Group, Indonesia
- SMC Global Power, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Posco Energy - South Korea
- Bayan Resources Tbk. - Indonesia
- Chamber of Mines of South Africa
- San Jose City I Power Corp, Philippines
- Marubeni Corporation - India
- Mjunction Services Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Romanian Commodities Exchange
- Sree Jayajothi Cements Limited - India
- Interocean Group of Companies - India
- Kepco SPC Power Corporation, Philippines
- Wood Mackenzie - Singapore
- Jaiprakash Power Ventures ltd
- The University of Queensland
- Global Green Power PLC Corporation, Philippines
- Ambuja Cements Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Kaltim Prima Coal - Indonesia
- Chettinad Cement Corporation Ltd - India
- Straits Asia Resources Limited - Singapore
- South Luzon Thermal Energy Corporation
- AsiaOL BioFuels Corp., Philippines
- Banpu Public Company Limited - Thailand
- Grasim Industreis Ltd - India
- OPG Power Generation Pvt Ltd - India
- The Treasury - Australian Government
- Energy Development Corp, Philippines
- Cigading International Bulk Terminal - Indonesia
- Heidelberg Cement - Germany
- Orica Australia Pty. Ltd.
- Parry Sugars Refinery, India
- Sical Logistics Limited - India
- Savvy Resources Ltd - HongKong
- Energy Link Ltd, New Zealand
- Mintek Dendrill Indonesia
- Carbofer General Trading SA - India
- Antam Resourcindo - Indonesia
- Binh Thuan Hamico - Vietnam
- Standard Chartered Bank - UAE
- SN Aboitiz Power Inc, Philippines
- Borneo Indobara - Indonesia
- Siam City Cement PLC, Thailand
- Eastern Energy - Thailand
- Independent Power Producers Association of India
- Gujarat Electricity Regulatory Commission - India
- Commonwealth Bank - Australia
- Oldendorff Carriers - Singapore
- Therma Luzon, Inc, Philippines
- Global Business Power Corporation, Philippines
- Coal and Oil Company - UAE
- Pendopo Energi Batubara - Indonesia
- Bhatia International Limited - India
- Indian Energy Exchange, India
- Formosa Plastics Group - Taiwan
- Kideco Jaya Agung - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Goldman Sachs - Singapore
- Sojitz Corporation - Japan
- Port Waratah Coal Services - Australia
- Star Paper Mills Limited - India
- Petrochimia International Co. Ltd.- Taiwan
- Siam City Cement - Thailand
- Ministry of Mines - Canada
- New Zealand Coal & Carbon
- Indian Oil Corporation Limited
- Australian Commodity Traders Exchange
- Salva Resources Pvt Ltd - India
- Semirara Mining Corp, Philippines
- Kartika Selabumi Mining - Indonesia
- Deloitte Consulting - India
- Central Electricity Authority - India
- Maheswari Brothers Coal Limited - India
- Meenaskhi Energy Private Limited - India
- Samtan Co., Ltd - South Korea
- Semirara Mining and Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Kalimantan Lumbung Energi - Indonesia
- Africa Commodities Group - South Africa
- Kohat Cement Company Ltd. - Pakistan
- Vedanta Resources Plc - India
- CNBM International Corporation - China
- Manunggal Multi Energi - Indonesia
- Aditya Birla Group - India
- Georgia Ports Authority, United States
- Coalindo Energy - Indonesia
- Gujarat Sidhee Cement - India
- ICICI Bank Limited - India
- PNOC Exploration Corporation - Philippines
- Karaikal Port Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Uttam Galva Steels Limited - India
- Planning Commission, India
- PetroVietnam Power Coal Import and Supply Company
- Intertek Mineral Services - Indonesia
- The State Trading Corporation of India Ltd
- Vijayanagar Sugar Pvt Ltd - India
- Eastern Coal Council - USA
- London Commodity Brokers - England
- European Bulk Services B.V. - Netherlands
- Bank of Tokyo Mitsubishi UFJ Ltd
- Billiton Holdings Pty Ltd - Australia
- Mercator Lines Limited - India
- Orica Mining Services - Indonesia
- Central Java Power - Indonesia
- Indo Tambangraya Megah - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Madhucon Powers Ltd - India
- Sindya Power Generating Company Private Ltd
- Alfred C Toepfer International GmbH - Germany
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Cement Manufacturers Association - India
- Australian Coal Association
- Latin American Coal - Colombia
- ASAPP Information Group - India
- Power Finance Corporation Ltd., India
- Ind-Barath Power Infra Limited - India
- Sakthi Sugars Limited - India
- Price Waterhouse Coopers - Russia
- Thiess Contractors Indonesia
- Bharathi Cement Corporation - India
- CIMB Investment Bank - Malaysia
- Electricity Authority, New Zealand
- Medco Energi Mining Internasional
- Riau Bara Harum - Indonesia
- Xindia Steels Limited - India
- Jindal Steel & Power Ltd - India
- Trasteel International SA, Italy
- Indonesian Coal Mining Association
- Dalmia Cement Bharat India
- Maharashtra Electricity Regulatory Commission - India
- Kobexindo Tractors - Indoneisa
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indika Energy - Indonesia
- McConnell Dowell - Australia
- Timah Investasi Mineral - Indoneisa
- Indogreen Group - Indonesia
- Global Coal Blending Company Limited - Australia
- Bhushan Steel Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Ministry of Transport, Egypt
- Krishnapatnam Port Company Ltd. - India
- Bukit Asam (Persero) Tbk - Indonesia
- Holcim Trading Pte Ltd - Singapore
- Metalloyd Limited - United Kingdom
- Kapuas Tunggal Persada - Indonesia
- Aboitiz Power Corporation - Philippines
- Vizag Seaport Private Limited - India
- Videocon Industries ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Larsen & Toubro Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Coastal Gujarat Power Limited - India
- VISA Power Limited - India
- Sinarmas Energy and Mining - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Makarim & Taira - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- LBH Netherlands Bv - Netherlands
- Agrawal Coal Company - India
- India Bulls Power Limited - India
- Miang Besar Coal Terminal - Indonesia
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