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.
|
|
Saturday, 11 September 21
CIL STEPS UP SUPPLY COAL TO POWER SECTOR; PER-DAY AVERAGE 20 PC HIGHER THAN LAST YEAR - PTI
State-owned CIL on Friday said it has stepped up the supply of coal to the power sector in the first eight days of the current month, with an avera ...
Saturday, 11 September 21
RECORD CHINESE COAL FUTURES SIGNAL NEED TO BOOST OUTPUT - REUTERS
China’s coal prices have climbed to a record high, signaling the need for more production in the short term, even as the government tries to ...
Saturday, 11 September 21
IN 2022, EIA EXPECTS U.S. COAL PRODUCTION TO INCREASE BY 47 MMST TO 648 MMST
U.S. Coal production accordng to EIA's forecast, totals 601 million short tons (MMst) in 2021, 66 MMst more than in 2020, EIA's Short-Term ...
Wednesday, 08 September 21
FITCH RATINGS RAISES THERMAL COAL PRICE ASSUMPTIONS ON TIGHT SUPPLY
Fitch Ratings has increased all its Qinhuangdao 5,500kcal/kg price assumptions and short- and medium-term Newcastle 6,000kcal/kg price assumptions ...
Wednesday, 08 September 21
COAL IS STILL KING; INDONESIAN COAL PRICE REFERENCE ABOVE $150 FOR FIRST TIME IN HISTORY
COALspot.com: The Indonesian Coal Price Reference rose dramatically from US$ 127.05 in February 2011, to a peak of US$ 150.03 in September 2021, be ...
|
|
|
Showing 486 to 490 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Makarim & Taira - Indonesia
- Metalloyd Limited - United Kingdom
- Ambuja Cements Ltd - India
- ICICI Bank Limited - India
- Energy Development Corp, Philippines
- Rio Tinto Coal - Australia
- Uttam Galva Steels Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Siam City Cement PLC, Thailand
- Mjunction Services Limited - India
- Formosa Plastics Group - Taiwan
- Global Green Power PLC Corporation, Philippines
- Goldman Sachs - Singapore
- PowerSource Philippines DevCo
- Coalindo Energy - Indonesia
- Tata Chemicals Ltd - India
- Semirara Mining Corp, Philippines
- Bhatia International Limited - India
- Maharashtra Electricity Regulatory Commission - India
- Meralco Power Generation, Philippines
- Anglo American - United Kingdom
- IHS Mccloskey Coal Group - USA
- Globalindo Alam Lestari - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Indo Tambangraya Megah - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Sinarmas Energy and Mining - Indonesia
- Vedanta Resources Plc - India
- Price Waterhouse Coopers - Russia
- Rashtriya Ispat Nigam Limited - India
- Miang Besar Coal Terminal - Indonesia
- Bukit Makmur.PT - Indonesia
- Central Java Power - Indonesia
- Samtan Co., Ltd - South Korea
- Electricity Authority, New Zealand
- Planning Commission, India
- Petrochimia International Co. Ltd.- Taiwan
- Orica Australia Pty. Ltd.
- Mercuria Energy - Indonesia
- Electricity Generating Authority of Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Romanian Commodities Exchange
- International Coal Ventures Pvt Ltd - India
- Indian Energy Exchange, India
- Madhucon Powers Ltd - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Ministry of Mines - Canada
- The University of Queensland
- Parliament of New Zealand
- Billiton Holdings Pty Ltd - Australia
- McConnell Dowell - Australia
- Kapuas Tunggal Persada - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Binh Thuan Hamico - Vietnam
- Eastern Energy - Thailand
- Indika Energy - Indonesia
- Malabar Cements Ltd - India
- Grasim Industreis Ltd - India
- Kaltim Prima Coal - Indonesia
- Straits Asia Resources Limited - Singapore
- Riau Bara Harum - Indonesia
- Intertek Mineral Services - Indonesia
- Toyota Tsusho Corporation, Japan
- VISA Power Limited - India
- SMG Consultants - Indonesia
- Wood Mackenzie - Singapore
- Savvy Resources Ltd - HongKong
- Bukit Baiduri Energy - Indonesia
- Xindia Steels Limited - India
- Deloitte Consulting - India
- Carbofer General Trading SA - India
- Latin American Coal - Colombia
- Posco Energy - South Korea
- Sojitz Corporation - Japan
- Sindya Power Generating Company Private Ltd
- Jorong Barutama Greston.PT - Indonesia
- SN Aboitiz Power Inc, Philippines
- Salva Resources Pvt Ltd - India
- SMC Global Power, Philippines
- Coastal Gujarat Power Limited - India
- Karaikal Port Pvt Ltd - India
- Georgia Ports Authority, United States
- Ministry of Transport, Egypt
- Directorate General of MIneral and Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- Vizag Seaport Private Limited - India
- Singapore Mercantile Exchange
- CNBM International Corporation - China
- The Treasury - Australian Government
- Gujarat Sidhee Cement - India
- Cigading International Bulk Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- Trasteel International SA, Italy
- Simpson Spence & Young - Indonesia
- Coal and Oil Company - UAE
- GAC Shipping (India) Pvt Ltd
- Indonesian Coal Mining Association
- Wilmar Investment Holdings
- Neyveli Lignite Corporation Ltd, - India
- ASAPP Information Group - India
- Krishnapatnam Port Company Ltd. - India
- Economic Council, Georgia
- Central Electricity Authority - India
- Iligan Light & Power Inc, Philippines
- European Bulk Services B.V. - Netherlands
- Mercator Lines Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Sarangani Energy Corporation, Philippines
- Directorate Of Revenue Intelligence - India
- Pendopo Energi Batubara - Indonesia
- Kideco Jaya Agung - Indonesia
- Essar Steel Hazira Ltd - India
- Australian Commodity Traders Exchange
- Oldendorff Carriers - Singapore
- Orica Mining Services - Indonesia
- India Bulls Power Limited - India
- Altura Mining Limited, Indonesia
- Dalmia Cement Bharat India
- Alfred C Toepfer International GmbH - Germany
- Mintek Dendrill Indonesia
- Merrill Lynch Commodities Europe
- Manunggal Multi Energi - Indonesia
- Edison Trading Spa - Italy
- Ceylon Electricity Board - Sri Lanka
- Commonwealth Bank - Australia
- Timah Investasi Mineral - Indoneisa
- Power Finance Corporation Ltd., India
- Ind-Barath Power Infra Limited - India
- Tamil Nadu electricity Board
- Attock Cement Pakistan Limited
- Bank of Tokyo Mitsubishi UFJ Ltd
- Antam Resourcindo - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- GVK Power & Infra Limited - India
- Bhushan Steel Limited - India
- Sakthi Sugars Limited - India
- Independent Power Producers Association of India
- Parry Sugars Refinery, India
- London Commodity Brokers - England
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sree Jayajothi Cements Limited - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Larsen & Toubro Limited - India
- White Energy Company Limited
- The State Trading Corporation of India Ltd
- Kumho Petrochemical, South Korea
- Port Waratah Coal Services - Australia
- Interocean Group of Companies - India
- Bangladesh Power Developement Board
- Bulk Trading Sa - Switzerland
- Meenaskhi Energy Private Limited - India
- Barasentosa Lestari - Indonesia
- Energy Link Ltd, New Zealand
- Leighton Contractors Pty Ltd - Australia
- GMR Energy Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Finance - Indonesia
- Agrawal Coal Company - India
- Heidelberg Cement - Germany
- Kobexindo Tractors - Indoneisa
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- San Jose City I Power Corp, Philippines
- Borneo Indobara - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Global Business Power Corporation, Philippines
- Medco Energi Mining Internasional
- Australian Coal Association
- Videocon Industries ltd - India
- CIMB Investment Bank - Malaysia
- MS Steel International - UAE
- Lanco Infratech Ltd - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Standard Chartered Bank - UAE
- Chettinad Cement Corporation Ltd - India
- South Luzon Thermal Energy Corporation
- TeaM Sual Corporation - Philippines
- Siam City Cement - Thailand
- Jaiprakash Power Ventures ltd
- Bayan Resources Tbk. - Indonesia
- Jindal Steel & Power Ltd - India
- Marubeni Corporation - India
- PTC India Limited - India
- Therma Luzon, Inc, Philippines
- Aboitiz Power Corporation - Philippines
- Aditya Birla Group - India
- Africa Commodities Group - South Africa
- Gujarat Electricity Regulatory Commission - India
- Semirara Mining and Power Corporation, Philippines
- Bharathi Cement Corporation - India
- Global Coal Blending Company Limited - Australia
- Minerals Council of Australia
- Renaissance Capital - South Africa
- Kartika Selabumi Mining - Indonesia
- New Zealand Coal & Carbon
- Banpu Public Company Limited - Thailand
- Cement Manufacturers Association - India
- Bahari Cakrawala Sebuku - Indonesia
- Maheswari Brothers Coal Limited - India
- Indian Oil Corporation Limited
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- IEA Clean Coal Centre - UK
- Holcim Trading Pte Ltd - Singapore
- Thiess Contractors Indonesia
- Indogreen Group - Indonesia
- Chamber of Mines of South Africa
- Eastern Coal Council - USA
- Baramulti Group, Indonesia
- LBH Netherlands Bv - Netherlands
- Star Paper Mills Limited - India
- Thai Mozambique Logistica
- OPG Power Generation Pvt Ltd - India
- AsiaOL BioFuels Corp., Philippines
- Petron Corporation, Philippines
- Sical Logistics Limited - India
- Bhoruka Overseas - Indonesia
|
| |
| |
|
