We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
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 carries a massive stranded asset risk due to the collapse in the average utilisation rate of its coal-fired power fleet leading to an underestimation of financial risk for new projects, finds a new report from the Institute for Energy Economics and Financial Analysis (IEEFA).
There are currently 33 gigawatts (GW) of coal-fired power plants under construction and another 29GW of proposed projects under various stages of regulatory approval in India.
Author of the report, energy finance analyst Kashish Shah says the LCOE (levelised cost of energy) is the required tariff at which the net present value of the investment is zero.
“In other words, LCOE is the minimum required average tariff for a power asset to reach a breakeven return at the end of its life. Anything less than that suggests the asset is unviable.”
Shah found that the average utilisation rate of India’s coal-fired fleet has collapsed to a financially unsustainable low of 53% in financial year (FY) 2020/21 from a high of 78% a decade ago in FY2011/12.
For most coal plants in India, the LCOE is calculated with an assumption of utilisation factor of 85-90% throughout the life of the project. However, the LCOE turns out to be 64% higher with India’s average capacity utilisation factor sitting at ~55% for the last few years.
“The aspiration for further builds of coal capacity stems from the notion that coal is still ‘cheap’,” says Shah. “However, with tariffs now below Rs2/kilowatt hour (kWh) (US$27/MWh), solar power is cheaper than even the variable cost of coal-fired power and is ready to absorb incremental daytime demand.”
IEEFA’s report highlights that utilisation factors of coal-fired power plants have declined not just in India, but across major electricity markets including China, the United Kingdom (UK) and the United States (U.S.).
“With zero fuel costs, the marginal cost of generation for renewables is practically zero,” says Shah. “On the other hand, with increasing inflation in Indian domestic coal prices and railway transportation costs for coal, the gap between cost competitiveness of renewables versus coal is widening.
“This raises a serious concern about the viability of coal-fired power plants.
“Debt servicing for underutilised coal-fired power assets becomes extremely difficult and creates a liquidity crunch in the whole value chain. The financial stress then spills over to the power distribution sector as well as affecting India’s financial lending institutions. This further inhibits growth in other important segments of the power industry such as renewables and transmission infrastructure, which are extremely critical for India’s electricity sector transition.”
The report concludes that the financial viability of India’s proposed and under construction coal-fired power projects should be re-evaluated based on the right estimation of utilisation factors including LCOE and capacity factor to avoid further bloating of India’s non-performing assets.
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 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Ministry of Mines - Canada
- Petron Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Lanco Infratech Ltd - India
- South Luzon Thermal Energy Corporation
- Indika Energy - Indonesia
- Essar Steel Hazira Ltd - India
- Star Paper Mills Limited - India
- Semirara Mining Corp, Philippines
- Coal and Oil Company - UAE
- Manunggal Multi Energi - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMC Global Power, Philippines
- Vedanta Resources Plc - India
- Wood Mackenzie - Singapore
- Indo Tambangraya Megah - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Mercator Lines Limited - India
- PTC India Limited - India
- Indian Oil Corporation Limited
- Kobexindo Tractors - Indoneisa
- Mintek Dendrill Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Aditya Birla Group - India
- Gujarat Electricity Regulatory Commission - India
- Billiton Holdings Pty Ltd - Australia
- Xindia Steels Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Ind-Barath Power Infra Limited - India
- ASAPP Information Group - India
- Kapuas Tunggal Persada - Indonesia
- TeaM Sual Corporation - Philippines
- Commonwealth Bank - Australia
- Globalindo Alam Lestari - Indonesia
- Parry Sugars Refinery, India
- Marubeni Corporation - India
- Wilmar Investment Holdings
- Karaikal Port Pvt Ltd - India
- Goldman Sachs - Singapore
- Energy Development Corp, Philippines
- Kaltim Prima Coal - Indonesia
- Standard Chartered Bank - UAE
- Georgia Ports Authority, United States
- Miang Besar Coal Terminal - Indonesia
- Ministry of Transport, Egypt
- Economic Council, Georgia
- PowerSource Philippines DevCo
- Renaissance Capital - South Africa
- Siam City Cement - Thailand
- Madhucon Powers Ltd - India
- Meralco Power Generation, Philippines
- Makarim & Taira - Indonesia
- Tata Chemicals Ltd - India
- TNB Fuel Sdn Bhd - Malaysia
- Aboitiz Power Corporation - Philippines
- Therma Luzon, Inc, Philippines
- Jindal Steel & Power Ltd - India
- San Jose City I Power Corp, Philippines
- Latin American Coal - Colombia
- White Energy Company Limited
- Baramulti Group, Indonesia
- MS Steel International - UAE
- Posco Energy - South Korea
- Bukit Asam (Persero) Tbk - Indonesia
- Orica Mining Services - Indonesia
- Chettinad Cement Corporation Ltd - India
- Salva Resources Pvt Ltd - India
- Carbofer General Trading SA - India
- SMG Consultants - Indonesia
- Bulk Trading Sa - Switzerland
- Trasteel International SA, Italy
- Formosa Plastics Group - Taiwan
- Petrochimia International Co. Ltd.- Taiwan
- Sindya Power Generating Company Private Ltd
- Merrill Lynch Commodities Europe
- Sree Jayajothi Cements Limited - India
- Coastal Gujarat Power Limited - India
- Rio Tinto Coal - Australia
- Bhatia International Limited - India
- Semirara Mining and Power Corporation, Philippines
- Indonesian Coal Mining Association
- Indogreen Group - Indonesia
- Bangladesh Power Developement Board
- Krishnapatnam Port Company Ltd. - India
- CIMB Investment Bank - Malaysia
- Grasim Industreis Ltd - India
- Sarangani Energy Corporation, Philippines
- Bharathi Cement Corporation - India
- Neyveli Lignite Corporation Ltd, - India
- Sakthi Sugars Limited - India
- International Coal Ventures Pvt Ltd - India
- Singapore Mercantile Exchange
- Gujarat Mineral Development Corp Ltd - India
- Bukit Baiduri Energy - Indonesia
- Holcim Trading Pte Ltd - Singapore
- IEA Clean Coal Centre - UK
- Karbindo Abesyapradhi - Indoneisa
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bayan Resources Tbk. - Indonesia
- ICICI Bank Limited - India
- Cigading International Bulk Terminal - Indonesia
- Banpu Public Company Limited - Thailand
- Ambuja Cements Ltd - India
- Intertek Mineral Services - Indonesia
- McConnell Dowell - Australia
- London Commodity Brokers - England
- Kohat Cement Company Ltd. - Pakistan
- Agrawal Coal Company - India
- Global Coal Blending Company Limited - Australia
- Australian Commodity Traders Exchange
- Metalloyd Limited - United Kingdom
- Malabar Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- Uttam Galva Steels Limited - India
- GN Power Mariveles Coal Plant, Philippines
- Sinarmas Energy and Mining - Indonesia
- Coalindo Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Mercuria Energy - Indonesia
- Mjunction Services Limited - India
- Sical Logistics Limited - India
- Kepco SPC Power Corporation, Philippines
- Eastern Energy - Thailand
- Chamber of Mines of South Africa
- Meenaskhi Energy Private Limited - India
- Oldendorff Carriers - Singapore
- Maheswari Brothers Coal Limited - India
- Barasentosa Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Bahari Cakrawala Sebuku - Indonesia
- GVK Power & Infra Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Riau Bara Harum - Indonesia
- Timah Investasi Mineral - Indoneisa
- Attock Cement Pakistan Limited
- Energy Link Ltd, New Zealand
- Bhoruka Overseas - Indonesia
- Tamil Nadu electricity Board
- Directorate Of Revenue Intelligence - India
- Deloitte Consulting - India
- Medco Energi Mining Internasional
- Interocean Group of Companies - India
- Sojitz Corporation - Japan
- Dalmia Cement Bharat India
- Price Waterhouse Coopers - Russia
- European Bulk Services B.V. - Netherlands
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Altura Mining Limited, Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Cement Manufacturers Association - India
- Straits Asia Resources Limited - Singapore
- GMR Energy Limited - India
- The State Trading Corporation of India Ltd
- Borneo Indobara - Indonesia
- SN Aboitiz Power Inc, Philippines
- Minerals Council of Australia
- Kartika Selabumi Mining - Indonesia
- Power Finance Corporation Ltd., India
- Port Waratah Coal Services - Australia
- PetroVietnam Power Coal Import and Supply Company
- Pipit Mutiara Jaya. PT, Indonesia
- LBH Netherlands Bv - Netherlands
- OPG Power Generation Pvt Ltd - India
- Leighton Contractors Pty Ltd - Australia
- The University of Queensland
- Alfred C Toepfer International GmbH - Germany
- Savvy Resources Ltd - HongKong
- Central Electricity Authority - India
- AsiaOL BioFuels Corp., Philippines
- CNBM International Corporation - China
- Australian Coal Association
- Anglo American - United Kingdom
- Antam Resourcindo - Indonesia
- Pendopo Energi Batubara - Indonesia
- Planning Commission, India
- New Zealand Coal & Carbon
- Rashtriya Ispat Nigam Limited - India
- Vizag Seaport Private Limited - India
- Videocon Industries ltd - India
- Central Java Power - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Iligan Light & Power Inc, Philippines
- Independent Power Producers Association of India
- Thai Mozambique Logistica
- Ministry of Finance - Indonesia
- Parliament of New Zealand
- Electricity Generating Authority of Thailand
- Directorate General of MIneral and Coal - Indonesia
- Toyota Tsusho Corporation, Japan
- Heidelberg Cement - Germany
- VISA Power Limited - India
- Indian Energy Exchange, India
- Samtan Co., Ltd - South Korea
- India Bulls Power Limited - India
- Global Business Power Corporation, Philippines
- Siam City Cement PLC, Thailand
- Eastern Coal Council - USA
- Thiess Contractors Indonesia
- Orica Australia Pty. Ltd.
- Electricity Authority, New Zealand
- Kumho Petrochemical, South Korea
- Romanian Commodities Exchange
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Bhushan Steel Limited - India
- PNOC Exploration Corporation - Philippines
- IHS Mccloskey Coal Group - USA
- Larsen & Toubro Limited - India
- Bukit Makmur.PT - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Gujarat Sidhee Cement - India
- Jaiprakash Power Ventures ltd
- Edison Trading Spa - Italy
- The Treasury - Australian Government
- Kideco Jaya Agung - Indonesia
- Africa Commodities Group - South Africa
- Simpson Spence & Young - Indonesia
- Binh Thuan Hamico - Vietnam
|
| |
| |
|
