We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Thursday, 01 July 21
WHY INDIA’S SOLAR POWER TARIFFS ARE CLIMBING AFTER HITTING RECORD LOWS LAST YEAR - IEEFA
What’s behind the recent increase?
Solar tariffs are deflationary. Prices have fallen by 75% in seven years in India, and in 2020 solar tariffs hit record lows.
From 2019 to the first quarter of 2020, most of India’s newly-auctioned solar projects saw tariffs in the range of Rs2.5-2.87/kilowatt hour (kWh). Then in February 2020, the Ministry of New and Renewable Energy (MNRE) removed ceiling tariffs for all new solar and wind tenders to hasten tender activity and capacity allocation. From Quarter 2 of 2020, prices were in the range of Rs1.99-2.97/kWh, with bids thereby hitting the new record low tariff.
The reasons for such low tariffs were access to low cost financing (cheaper interest rates) by international developers based out of Saudi Arabia (Aljomaih Energy and Water Co.) and Singapore (Sembcorp) as well as government entities like NTPC which can secure debt at a rate of 7-7.5%. And since they can source funds at lower rates, their return on equity expectation is also lower. Also, these tenders are likely to be exempted from the Safeguard Duty (SGD) and Basic Customs Duty (BCD) on solar cell and module imports. Another key factor was power purchase assurance for the developers, for example, the power sale agreement (PSA) between the intermediary procurer, Solar Energy Corporation of India (SECI), and the buying entity, Rajasthan power distribution company (Discom) Rajasthan Urja Vikas Nigam Ltd. (RUVNL). The other tender was issued by Gujarat Discom, Gujarat Urja Vikas Nigam Ltd. (GUVNL).
In 2021, however, solar tariffs saw an upward trend. In January and February, the lowest tariffs discovered in auctions were Rs2.22/kWh and Rs2.25/kWh, by Torrent Power Ltd. (TPL) and NTPC Ltd. The tariff increases could be attributed to lack of participation by international developers like Aljomaih Energy and Water Co. and Sembcorp. Moreover, module prices increased from US$0.20/Wp in July 2020 to US$0.22-0.23/Wp in January 2021, causing solar prices to increase. Further, module suppliers are now selling modules at FOB (free on Board) prices instead of CIF (cost, insurance, and freight) prices, which is also impacting solar prices in India.
Then in March, the Government of India announced it will impose a 40% basic customs duty (BCD) on solar modules and 25% on solar cells from 1 April 2022 in a move to promote domestic manufacturing. The imposition of BCD is likely to increase solar tariffs by approximately 25%. The lowest tariff delivered in the first solar auction result after the BCD announcement – GUVNL’s 500MW auction in Gujarat – was Rs2.22/kWh, a 21 paisa (12%) increase per kWh from the previous GUVNL tender under the same conditions.
Lower prices are favourable for renewable energy growth. However, aggressive tariffs come with risks, and developers need to properly factor these risks into their bids. With improved module technology, generation will increase. Another factor that will pull down solar prices is access to low cost financing. On the other hand, a rise in module costs due to various global demand and supply factors and floating interest rates that change in line with Reserve Bank of India (RBI) guidelines could push prices upwards.
Vibhuti Garg is an Energy Economist and Lead India at IEEFA
This article was first published in SolarQuarter India
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Sunday, 11 July 21
COAL SHOWS ITS STAYING POWER AS ECONOMIES BOUNCE BACK - THE WALL STREET JOURNAL
Coal use is surging in some of the world’s largest economies as electricity demand rebounds from the pandemic, illustrating the challenges to ...
Sunday, 11 July 21
ROBUST CHINA COAL DEMAND AMID AUSTRALIA IMPORT BAN FUELS PRICE RALLY - REUTERS
Seaborne coal has become a quiet winner among energy commodities, lacking the attention of higher-profile crude oil and liquefied natural gas (LNG) ...
Saturday, 10 July 21
OVERESTIMATED LCOES OF COAL-FIRED POWER PLANTS CREATE A FINANCIAL BUBBLE - IEEFA
Massive stranded asset risk detrimentally affects the financial and power distribution
India’s future coal-fired power project pipeline ...
Friday, 09 July 21
EIA FORECASTS COAL’S GENERATION SHARE IN U.S TO RISE FROM 20% IN 2020 TO 24% THIS YEAR BUT TO FALL TO 22% NEXT YEAR
The July Short-Term Energy Outlook (STEO) of EIA remains subject to heightened levels of uncertainty related to the ongoing economic recovery from ...
Friday, 09 July 21
KOREA SOUTH-EAST POWER CO., LTD. INVITES BIDS FOR 1.86 MILLION TONS OF COAL OF 5600 & 4000 NCV COAL FOR THREE YEARS
COALspot.com: South Korea’s KOREA SOUTH-EAST POWER CO., LTD. (KOEN) has issued an international tender for 280,000 – 300,000 MT of Min. ...
|
|
|
Showing 526 to 530 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Bukit Makmur.PT - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Sarangani Energy Corporation, Philippines
- Gujarat Sidhee Cement - India
- The Treasury - Australian Government
- Thiess Contractors Indonesia
- Indo Tambangraya Megah - Indonesia
- Manunggal Multi Energi - Indonesia
- Electricity Generating Authority of Thailand
- Anglo American - United Kingdom
- PTC India Limited - India
- Bulk Trading Sa - Switzerland
- Salva Resources Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Indian Energy Exchange, India
- Bangladesh Power Developement Board
- Sakthi Sugars Limited - India
- Savvy Resources Ltd - HongKong
- Central Electricity Authority - India
- The University of Queensland
- Coal and Oil Company - UAE
- IEA Clean Coal Centre - UK
- Miang Besar Coal Terminal - Indonesia
- Singapore Mercantile Exchange
- Standard Chartered Bank - UAE
- Grasim Industreis Ltd - India
- Parry Sugars Refinery, India
- Therma Luzon, Inc, Philippines
- Agrawal Coal Company - India
- McConnell Dowell - Australia
- VISA Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Central Java Power - Indonesia
- GMR Energy Limited - India
- Siam City Cement - Thailand
- Eastern Energy - Thailand
- The State Trading Corporation of India Ltd
- Offshore Bulk Terminal Pte Ltd, Singapore
- Cement Manufacturers Association - India
- Semirara Mining and Power Corporation, Philippines
- Mercator Lines Limited - India
- Madhucon Powers Ltd - India
- AsiaOL BioFuels Corp., Philippines
- SN Aboitiz Power Inc, Philippines
- Energy Development Corp, Philippines
- Tata Chemicals Ltd - India
- Heidelberg Cement - Germany
- Malabar Cements Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Mjunction Services Limited - India
- Samtan Co., Ltd - South Korea
- Gujarat Electricity Regulatory Commission - India
- Gujarat Mineral Development Corp Ltd - India
- Orica Australia Pty. Ltd.
- Wilmar Investment Holdings
- Parliament of New Zealand
- Meenaskhi Energy Private Limited - India
- Port Waratah Coal Services - Australia
- ASAPP Information Group - India
- Directorate Of Revenue Intelligence - India
- SMG Consultants - Indonesia
- Indian Oil Corporation Limited
- Mintek Dendrill Indonesia
- Aditya Birla Group - India
- Romanian Commodities Exchange
- Vijayanagar Sugar Pvt Ltd - India
- Independent Power Producers Association of India
- LBH Netherlands Bv - Netherlands
- Pendopo Energi Batubara - Indonesia
- European Bulk Services B.V. - Netherlands
- Bayan Resources Tbk. - Indonesia
- Makarim & Taira - Indonesia
- Sindya Power Generating Company Private Ltd
- Siam City Cement PLC, Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- New Zealand Coal & Carbon
- Krishnapatnam Port Company Ltd. - India
- Wood Mackenzie - Singapore
- Ministry of Mines - Canada
- Price Waterhouse Coopers - Russia
- Indika Energy - Indonesia
- Star Paper Mills Limited - India
- Edison Trading Spa - Italy
- Bukit Asam (Persero) Tbk - Indonesia
- Videocon Industries ltd - India
- Ceylon Electricity Board - Sri Lanka
- Sojitz Corporation - Japan
- Ministry of Transport, Egypt
- Chamber of Mines of South Africa
- Tamil Nadu electricity Board
- Barasentosa Lestari - Indonesia
- Jindal Steel & Power Ltd - India
- Bhoruka Overseas - Indonesia
- MS Steel International - UAE
- Timah Investasi Mineral - Indoneisa
- Renaissance Capital - South Africa
- Toyota Tsusho Corporation, Japan
- Bharathi Cement Corporation - India
- Jaiprakash Power Ventures ltd
- Sical Logistics Limited - India
- Goldman Sachs - Singapore
- White Energy Company Limited
- Asmin Koalindo Tuhup - Indonesia
- PowerSource Philippines DevCo
- Iligan Light & Power Inc, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Maheswari Brothers Coal Limited - India
- Vizag Seaport Private Limited - India
- Intertek Mineral Services - Indonesia
- Semirara Mining Corp, Philippines
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- PetroVietnam Power Coal Import and Supply Company
- Kohat Cement Company Ltd. - Pakistan
- Binh Thuan Hamico - Vietnam
- Commonwealth Bank - Australia
- Planning Commission, India
- Karaikal Port Pvt Ltd - India
- Australian Coal Association
- Deloitte Consulting - India
- Banpu Public Company Limited - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Aboitiz Power Corporation - Philippines
- Holcim Trading Pte Ltd - Singapore
- Kartika Selabumi Mining - Indonesia
- Global Business Power Corporation, Philippines
- Africa Commodities Group - South Africa
- Straits Asia Resources Limited - Singapore
- Attock Cement Pakistan Limited
- Vedanta Resources Plc - India
- Metalloyd Limited - United Kingdom
- Chettinad Cement Corporation Ltd - India
- Coastal Gujarat Power Limited - India
- Thai Mozambique Logistica
- CIMB Investment Bank - Malaysia
- OPG Power Generation Pvt Ltd - India
- London Commodity Brokers - England
- Larsen & Toubro Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Meralco Power Generation, Philippines
- International Coal Ventures Pvt Ltd - India
- Oldendorff Carriers - Singapore
- TeaM Sual Corporation - Philippines
- Minerals Council of Australia
- Australian Commodity Traders Exchange
- Sinarmas Energy and Mining - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Energy Link Ltd, New Zealand
- Alfred C Toepfer International GmbH - Germany
- CNBM International Corporation - China
- IHS Mccloskey Coal Group - USA
- Sree Jayajothi Cements Limited - India
- Kaltim Prima Coal - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- PNOC Exploration Corporation - Philippines
- GN Power Mariveles Coal Plant, Philippines
- SMC Global Power, Philippines
- Leighton Contractors Pty Ltd - Australia
- Kapuas Tunggal Persada - Indonesia
- Indonesian Coal Mining Association
- Baramulti Group, Indonesia
- Simpson Spence & Young - Indonesia
- Medco Energi Mining Internasional
- Latin American Coal - Colombia
- Merrill Lynch Commodities Europe
- GAC Shipping (India) Pvt Ltd
- Xindia Steels Limited - India
- Bhatia International Limited - India
- Global Coal Blending Company Limited - Australia
- Georgia Ports Authority, United States
- Petrochimia International Co. Ltd.- Taiwan
- Trasteel International SA, Italy
- Maharashtra Electricity Regulatory Commission - India
- Kumho Petrochemical, South Korea
- Carbofer General Trading SA - India
- Electricity Authority, New Zealand
- Indogreen Group - Indonesia
- Orica Mining Services - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Ind-Barath Power Infra Limited - India
- Ministry of Finance - Indonesia
- Posco Energy - South Korea
- Altura Mining Limited, Indonesia
- GVK Power & Infra Limited - India
- Neyveli Lignite Corporation Ltd, - India
- ICICI Bank Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Global Green Power PLC Corporation, Philippines
- Power Finance Corporation Ltd., India
- Ambuja Cements Ltd - India
- Economic Council, Georgia
- Globalindo Alam Lestari - Indonesia
- Riau Bara Harum - Indonesia
- Bukit Baiduri Energy - Indonesia
- Coalindo Energy - Indonesia
- Eastern Coal Council - USA
- Borneo Indobara - Indonesia
- Mercuria Energy - Indonesia
- Kideco Jaya Agung - Indonesia
- Interocean Group of Companies - India
- Antam Resourcindo - Indonesia
- Kepco SPC Power Corporation, Philippines
- Dalmia Cement Bharat India
- Essar Steel Hazira Ltd - India
- Bhushan Steel Limited - India
- South Luzon Thermal Energy Corporation
- Formosa Plastics Group - Taiwan
- Uttam Galva Steels Limited - India
- Petron Corporation, Philippines
- India Bulls Power Limited - India
- Rio Tinto Coal - Australia
- Jorong Barutama Greston.PT - Indonesia
- Marubeni Corporation - India
- San Jose City I Power Corp, Philippines
- Lanco Infratech Ltd - India
|
| |
| |
|
