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.
|
|
Friday, 15 October 21
GLOBAL STEEL DEMAND GROWTH DOWNGRADED FOR 2021 DUE TO CHINA - WORLD STEEL ASSOCIATION
The World Steel Association (worldsteel) today released an update of its Short Range Outlook (SRO) for 2021 and 2022. worldsteel forecasts that ste ...
Thursday, 14 October 21
SPIKING COAL PRICES: DON’T BLAME THE ENERGY TRANSITION - IEEFA
Volatility highlights urgency for renewables-based energy solutions
“Energy crisis.” The phrase evokes nearly-forgotten ...
Thursday, 14 October 21
EIA FORECASTS U.S. COAL PRODUCTION TOTALS 588 MMST IN 2021, UP 53 MMST YOY
U.S. coal production in EIA's forecasts totals 588 million short tons (MMst) in 2021, 53 MMst more than in 2020.
According ...
Wednesday, 13 October 21
COAL PRICES ARE ROARING BACK AMID A GLOBAL ENERGY CRUNCH - SYDNEY MORNING HERALD
Soaring coal prices have placed Australia’s mining and energy exports on track to reach a record $349 billion this year evenas the value of t ...
Wednesday, 13 October 21
CHINA ISN'T THE ONLY HUGE ASIAN ECONOMY WITH A COAL SHORTAGE NOW - CNBC
China is not the only Asian giant grappling with an energy crunch — India is also teetering on the edge of a power crisis.
Mos ...
|
|
|
Showing 456 to 460 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- The Treasury - Australian Government
- Kartika Selabumi Mining - Indonesia
- GMR Energy Limited - India
- Minerals Council of Australia
- Trasteel International SA, Italy
- Indo Tambangraya Megah - Indonesia
- Karaikal Port Pvt Ltd - India
- Interocean Group of Companies - India
- Independent Power Producers Association of India
- Toyota Tsusho Corporation, Japan
- Eastern Energy - Thailand
- Sindya Power Generating Company Private Ltd
- Samtan Co., Ltd - South Korea
- McConnell Dowell - Australia
- Price Waterhouse Coopers - Russia
- Straits Asia Resources Limited - Singapore
- Bayan Resources Tbk. - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Formosa Plastics Group - Taiwan
- Agrawal Coal Company - India
- New Zealand Coal & Carbon
- Lanco Infratech Ltd - India
- Star Paper Mills Limited - India
- Gujarat Mineral Development Corp Ltd - India
- Barasentosa Lestari - Indonesia
- Indian Oil Corporation Limited
- Altura Mining Limited, Indonesia
- Makarim & Taira - Indonesia
- Singapore Mercantile Exchange
- Vizag Seaport Private Limited - India
- OPG Power Generation Pvt Ltd - India
- Bukit Makmur.PT - Indonesia
- Chettinad Cement Corporation Ltd - India
- Metalloyd Limited - United Kingdom
- Sakthi Sugars Limited - India
- SMC Global Power, Philippines
- Gujarat Electricity Regulatory Commission - India
- Africa Commodities Group - South Africa
- AsiaOL BioFuels Corp., Philippines
- Tata Chemicals Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Videocon Industries ltd - India
- Bhushan Steel Limited - India
- Mercator Lines Limited - India
- Cigading International Bulk Terminal - Indonesia
- European Bulk Services B.V. - Netherlands
- Karbindo Abesyapradhi - Indoneisa
- Electricity Generating Authority of Thailand
- Offshore Bulk Terminal Pte Ltd, Singapore
- Kepco SPC Power Corporation, Philippines
- Ministry of Finance - Indonesia
- Eastern Coal Council - USA
- Bhatia International Limited - India
- Indogreen Group - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Petron Corporation, Philippines
- Chamber of Mines of South Africa
- Oldendorff Carriers - Singapore
- LBH Netherlands Bv - Netherlands
- Mintek Dendrill Indonesia
- Holcim Trading Pte Ltd - Singapore
- Grasim Industreis Ltd - India
- Coastal Gujarat Power Limited - India
- White Energy Company Limited
- Indian Energy Exchange, India
- SMG Consultants - Indonesia
- Heidelberg Cement - Germany
- Port Waratah Coal Services - Australia
- Bulk Trading Sa - Switzerland
- Siam City Cement PLC, Thailand
- Kapuas Tunggal Persada - Indonesia
- India Bulls Power Limited - India
- Electricity Authority, New Zealand
- Asmin Koalindo Tuhup - Indonesia
- Indika Energy - Indonesia
- VISA Power Limited - India
- Sojitz Corporation - Japan
- Maheswari Brothers Coal Limited - India
- Orica Mining Services - Indonesia
- Salva Resources Pvt Ltd - India
- Wilmar Investment Holdings
- PTC India Limited - India
- South Luzon Thermal Energy Corporation
- Bhoruka Overseas - Indonesia
- Antam Resourcindo - Indonesia
- Kobexindo Tractors - Indoneisa
- Sree Jayajothi Cements Limited - India
- Simpson Spence & Young - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Rashtriya Ispat Nigam Limited - India
- Meralco Power Generation, Philippines
- PowerSource Philippines DevCo
- Wood Mackenzie - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Kideco Jaya Agung - Indonesia
- CNBM International Corporation - China
- Bangladesh Power Developement Board
- Riau Bara Harum - Indonesia
- The University of Queensland
- Tamil Nadu electricity Board
- London Commodity Brokers - England
- Energy Link Ltd, New Zealand
- Alfred C Toepfer International GmbH - Germany
- Pendopo Energi Batubara - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Manunggal Multi Energi - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Globalindo Alam Lestari - Indonesia
- Ministry of Mines - Canada
- Parliament of New Zealand
- Edison Trading Spa - Italy
- Kaltim Prima Coal - Indonesia
- Banpu Public Company Limited - Thailand
- Posco Energy - South Korea
- GVK Power & Infra Limited - India
- ICICI Bank Limited - India
- Renaissance Capital - South Africa
- Energy Development Corp, Philippines
- Latin American Coal - Colombia
- Borneo Indobara - Indonesia
- Jindal Steel & Power Ltd - India
- Vedanta Resources Plc - India
- TNB Fuel Sdn Bhd - Malaysia
- Carbofer General Trading SA - India
- TeaM Sual Corporation - Philippines
- Georgia Ports Authority, United States
- Therma Luzon, Inc, Philippines
- Madhucon Powers Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Aditya Birla Group - India
- Jaiprakash Power Ventures ltd
- Vijayanagar Sugar Pvt Ltd - India
- Malabar Cements Ltd - India
- Sinarmas Energy and Mining - Indonesia
- CIMB Investment Bank - Malaysia
- SN Aboitiz Power Inc, Philippines
- Bharathi Cement Corporation - India
- Directorate Of Revenue Intelligence - India
- Semirara Mining and Power Corporation, Philippines
- Romanian Commodities Exchange
- Miang Besar Coal Terminal - Indonesia
- Intertek Mineral Services - Indonesia
- GAC Shipping (India) Pvt Ltd
- Australian Commodity Traders Exchange
- Cement Manufacturers Association - India
- Mjunction Services Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Australian Coal Association
- Kumho Petrochemical, South Korea
- Bukit Baiduri Energy - Indonesia
- Power Finance Corporation Ltd., India
- Parry Sugars Refinery, India
- Global Coal Blending Company Limited - Australia
- Xindia Steels Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Sidhee Cement - India
- Rio Tinto Coal - Australia
- Medco Energi Mining Internasional
- Billiton Holdings Pty Ltd - Australia
- Meenaskhi Energy Private Limited - India
- Siam City Cement - Thailand
- Essar Steel Hazira Ltd - India
- Commonwealth Bank - Australia
- Larsen & Toubro Limited - India
- Economic Council, Georgia
- Anglo American - United Kingdom
- Ceylon Electricity Board - Sri Lanka
- Thai Mozambique Logistica
- ASAPP Information Group - India
- Iligan Light & Power Inc, Philippines
- Pipit Mutiara Jaya. PT, Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Baramulti Group, Indonesia
- Semirara Mining Corp, Philippines
- Planning Commission, India
- IHS Mccloskey Coal Group - USA
- International Coal Ventures Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Goldman Sachs - Singapore
- Coalindo Energy - Indonesia
- MS Steel International - UAE
- IEA Clean Coal Centre - UK
- Standard Chartered Bank - UAE
- PNOC Exploration Corporation - Philippines
- Neyveli Lignite Corporation Ltd, - India
- Marubeni Corporation - India
- San Jose City I Power Corp, Philippines
- Merrill Lynch Commodities Europe
- Timah Investasi Mineral - Indoneisa
- Aboitiz Power Corporation - Philippines
- Savvy Resources Ltd - HongKong
- PetroVietnam Power Coal Import and Supply Company
- Orica Australia Pty. Ltd.
- Coal and Oil Company - UAE
- Global Business Power Corporation, Philippines
- Binh Thuan Hamico - Vietnam
- Central Electricity Authority - India
- Mercuria Energy - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Global Green Power PLC Corporation, Philippines
- Sical Logistics Limited - India
- Ambuja Cements Ltd - India
- Dalmia Cement Bharat India
- Deloitte Consulting - India
- The State Trading Corporation of India Ltd
- Thiess Contractors Indonesia
- Indonesian Coal Mining Association
- Central Java Power - Indonesia
- Attock Cement Pakistan Limited
- Ind-Barath Power Infra Limited - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Transport, Egypt
- Kohat Cement Company Ltd. - Pakistan
- Sarangani Energy Corporation, Philippines
- Krishnapatnam Port Company Ltd. - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
|
| |
| |
|
