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Wednesday, 20 October 21
OVER-RELIANCE ON COAL IN OUR POWER MIX HURTING INDIA - LIVEMINT
In spite of the renewables push, coal still accounts for about 50% of India’s installed power capacity. That means a simultaneous demand and supply shock, as happening now, can disrupt power generation.
The current shortage of coal is raising the spectre of long power outages. At a broader level, the crisis also underscores India’s overwhelming dependence on coal to meet its energy needs, the significant push towards renewables notwithstanding. As of September 2021, thermal power— power generated from burning coal, gas and petroleum—comprised 60% of India’s installed capacity in power generation. Coal alone accounted for nearly 50%. By comparison, renewable sources such as wind and solar energy and biomass accounted for 26%.
European countries lead the way in renewable sources, which are more sustainable and environment-friendly. Germany, for example, drew 44% of its electricity from renewables in the first half of 2021. For India, that figure was just 10% in 2019-20, against the installed capacity share of 26%. While installed capacity represents the maximum amount of electricity that can be generated, the actual amount generated from renewables is lower due to their erratic nature. For instance, lack of sufficient wind on a given day would lead to lower energy produced from wind turbines.
While India is expected to tide over the current coal shortage, the only way it can secure its longer-term energy security is by ramping up production from renewables. However, in the medium term, it is also imperative to upgrade infrastructure at coal mining facilities, and open up existing mines to the private sector for mining to augment the supply of coal. Failure to do so will leave it vulnerable to imbalances in supply—and have deleterious trickle-down effects, as being seen now.
Supply Crunch
Coal production has picked up in the current financial year and exceeds pre-pandemic levels. In the six-month period from April to September 2021, India produced 315 million tonnes of coal, a 5.5% increase over the corresponding period of 2019 (pre-pandemic). However, there has been a secular stagnation in coal production since 2017, with the rise in production not keeping pace with increasing demand.
State-owned Coal India dominates coal production in the country, accounting for about 85% of the coal produced in the first six months of 2021-22. In addition to domestic production, India imports nearly 25% of its coal requirement. Coal imports too had fallen sharply in 2020-21, due to supply shortages and the ensuing increase in global coal prices. In a move that will enhance imports, the Centre has ordered thermal power producers to import coal for at least 10% blending in their fuel, citing a shortage of domestic supply.
Production Woes
There is, currently, a crippling shortage of coal at thermal power plants. At an all-India level, the normative stock of coal required across all power plants is 39.7 million tonnes. However, the coal stock available on 15 October with these plants stood at 7.5 million tonnes, or about 19% of the stock required, according to the Central Electricity Authority. That same day, as many as 104 of the 135 coal-based plants in India had less than five days’ stock of coal remaining, which is deemed to be ‘critical’ for plants that are located near a coal mine.
The shortage is stark across states in all regions. The northern region, which is distant from most coal-producing regions, is the worst-affected, with around 91% of thermal plants facing shortages. By comparison, the western region, which includes mineral-rich Chhattisgarh, is slightly better off, with the coal shortage affecting around 74% of power plants there.
Price Spikes
The current concern regarding coal supplies has led to a spike in electricity costs. The supply arrangement in India is that distribution companies, mostly state-owned, enter into direct purchase agreements with power producers. In the event that producers are unable to fulfil their commitments, or demand exceeds contracted supply, distribution companies buy from sellers in the open market.
Data from the Indian Energy Exchange (IEX), a marketplace for short-term electricity trading in India, shows that electricity prices rose nearly five-fold over the past month in reaction to news regarding the impending shortage of coal. Considering that end prices paid by consumers remained fixed, distribution companies, which are already in a precarious financial position, were forced to bear the brunt of this higher price. Although rates have slid back to normal levels again, this upheaval is a grim reminder of the centrality of coal in India’s power mix and why this needs to change.
Source: Livemint
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Monday, 19 February 24
METALS INVESTMENT: THE DARKEST HOUR IS JUST BEFORE THE DAWN - WOOD MACKENZIE
Things often seem at their worst just before they get better. In terms of meeting our net zero 2050 scenario, we’ve reached a watershed momen ...
Tuesday, 13 February 24
WHAT IS THE OUTLOOK FOR THE NATURAL GAS SPOT PRICE IN 2024 AND 2025? EIA
We expect the U.S. benchmark Henry Hub natural gas spot price to average higher in 2024 and 2025 than in 2023, but to remain lower than $3.00 per m ...
Monday, 12 February 24
US THERMAL COAL EXPORTS HIT 5-YEAR HIGHS AND TOP $5 BLN IN 2023 - REUTERS
United States exporters of thermal coal earned more than $5 billion in 2023 as they shipped out more than 32.5 million metric tons of the high-poll ...
Tuesday, 06 February 24
NEW E-FUELS PROJECT TO MAKE INTERNATIONAL SHIPPING CLIMATE-NEUTRAL - RINA
Transport and trade on the ocean blue must be made much greener. This is the goal of the new €17 million European GAMMA project, where compani ...
Tuesday, 06 February 24
INDIA SEES ANNUAL COAL OUTPUT UP 10.9% IN 2024/25 - REUTERS
India expects domestic coal output to increase by 10.9% to 1.13 billion metric tons in the fiscal year ending March 2025, a senior government offic ...
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- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Thai Mozambique Logistica
- Uttam Galva Steels Limited - India
- Holcim Trading Pte Ltd - Singapore
- Goldman Sachs - Singapore
- Siam City Cement PLC, Thailand
- Eastern Coal Council - USA
- Globalindo Alam Lestari - Indonesia
- Vedanta Resources Plc - India
- SMC Global Power, Philippines
- MS Steel International - UAE
- Alfred C Toepfer International GmbH - Germany
- Africa Commodities Group - South Africa
- Gujarat Electricity Regulatory Commission - India
- Australian Commodity Traders Exchange
- Petron Corporation, Philippines
- Singapore Mercantile Exchange
- Krishnapatnam Port Company Ltd. - India
- Coalindo Energy - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Larsen & Toubro Limited - India
- Bukit Makmur.PT - Indonesia
- Deloitte Consulting - India
- Kobexindo Tractors - Indoneisa
- Gujarat Sidhee Cement - India
- Semirara Mining Corp, Philippines
- Meenaskhi Energy Private Limited - India
- McConnell Dowell - Australia
- Power Finance Corporation Ltd., India
- Videocon Industries ltd - India
- Grasim Industreis Ltd - India
- Kideco Jaya Agung - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- PTC India Limited - India
- Sakthi Sugars Limited - India
- Kepco SPC Power Corporation, Philippines
- Pendopo Energi Batubara - Indonesia
- Mintek Dendrill Indonesia
- Makarim & Taira - Indonesia
- Star Paper Mills Limited - India
- Bhoruka Overseas - Indonesia
- Global Business Power Corporation, Philippines
- Rashtriya Ispat Nigam Limited - India
- Straits Asia Resources Limited - Singapore
- Bahari Cakrawala Sebuku - Indonesia
- Bukit Baiduri Energy - Indonesia
- Oldendorff Carriers - Singapore
- IEA Clean Coal Centre - UK
- Sojitz Corporation - Japan
- Ind-Barath Power Infra Limited - India
- Carbofer General Trading SA - India
- Directorate Of Revenue Intelligence - India
- Savvy Resources Ltd - HongKong
- Meralco Power Generation, Philippines
- Riau Bara Harum - Indonesia
- Bharathi Cement Corporation - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Georgia Ports Authority, United States
- Essar Steel Hazira Ltd - India
- Central Java Power - Indonesia
- Energy Link Ltd, New Zealand
- Kaltim Prima Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Commonwealth Bank - Australia
- India Bulls Power Limited - India
- Global Coal Blending Company Limited - Australia
- Kumho Petrochemical, South Korea
- Samtan Co., Ltd - South Korea
- Merrill Lynch Commodities Europe
- Eastern Energy - Thailand
- South Luzon Thermal Energy Corporation
- Altura Mining Limited, Indonesia
- Mercuria Energy - Indonesia
- Kartika Selabumi Mining - Indonesia
- Indika Energy - Indonesia
- Tata Chemicals Ltd - India
- Salva Resources Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Independent Power Producers Association of India
- Maharashtra Electricity Regulatory Commission - India
- Simpson Spence & Young - Indonesia
- Manunggal Multi Energi - Indonesia
- Economic Council, Georgia
- London Commodity Brokers - England
- Parry Sugars Refinery, India
- Maheswari Brothers Coal Limited - India
- Jaiprakash Power Ventures ltd
- Wood Mackenzie - Singapore
- Indonesian Coal Mining Association
- Bulk Trading Sa - Switzerland
- AsiaOL BioFuels Corp., Philippines
- Toyota Tsusho Corporation, Japan
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Baramulti Group, Indonesia
- Bhatia International Limited - India
- European Bulk Services B.V. - Netherlands
- Posco Energy - South Korea
- Bayan Resources Tbk. - Indonesia
- Anglo American - United Kingdom
- Energy Development Corp, Philippines
- Marubeni Corporation - India
- Indian Oil Corporation Limited
- Madhucon Powers Ltd - India
- Billiton Holdings Pty Ltd - Australia
- Indogreen Group - Indonesia
- Trasteel International SA, Italy
- Edison Trading Spa - Italy
- Bangladesh Power Developement Board
- TNB Fuel Sdn Bhd - Malaysia
- OPG Power Generation Pvt Ltd - India
- Central Electricity Authority - India
- SN Aboitiz Power Inc, Philippines
- Australian Coal Association
- Global Green Power PLC Corporation, Philippines
- New Zealand Coal & Carbon
- Siam City Cement - Thailand
- Kalimantan Lumbung Energi - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Medco Energi Mining Internasional
- Orica Mining Services - Indonesia
- Coal and Oil Company - UAE
- Heidelberg Cement - Germany
- Electricity Authority, New Zealand
- Miang Besar Coal Terminal - Indonesia
- Renaissance Capital - South Africa
- International Coal Ventures Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Planning Commission, India
- Ceylon Electricity Board - Sri Lanka
- Bukit Asam (Persero) Tbk - Indonesia
- Ministry of Mines - Canada
- Standard Chartered Bank - UAE
- Neyveli Lignite Corporation Ltd, - India
- LBH Netherlands Bv - Netherlands
- GAC Shipping (India) Pvt Ltd
- Mjunction Services Limited - India
- Formosa Plastics Group - Taiwan
- Barasentosa Lestari - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Agrawal Coal Company - India
- Sinarmas Energy and Mining - Indonesia
- The Treasury - Australian Government
- GMR Energy Limited - India
- Leighton Contractors Pty Ltd - Australia
- VISA Power Limited - India
- The State Trading Corporation of India Ltd
- Tamil Nadu electricity Board
- Electricity Generating Authority of Thailand
- IHS Mccloskey Coal Group - USA
- Orica Australia Pty. Ltd.
- PetroVietnam Power Coal Import and Supply Company
- ICICI Bank Limited - India
- CIMB Investment Bank - Malaysia
- Vizag Seaport Private Limited - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Iligan Light & Power Inc, Philippines
- Rio Tinto Coal - Australia
- Indo Tambangraya Megah - Indonesia
- Intertek Mineral Services - Indonesia
- PowerSource Philippines DevCo
- Attock Cement Pakistan Limited
- Gujarat Mineral Development Corp Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Jindal Steel & Power Ltd - India
- TeaM Sual Corporation - Philippines
- Antam Resourcindo - Indonesia
- CNBM International Corporation - China
- Romanian Commodities Exchange
- Sree Jayajothi Cements Limited - India
- Bhushan Steel Limited - India
- Mercator Lines Limited - India
- Xindia Steels Limited - India
- Wilmar Investment Holdings
- Sarangani Energy Corporation, Philippines
- San Jose City I Power Corp, Philippines
- ASAPP Information Group - India
- White Energy Company Limited
- Semirara Mining and Power Corporation, Philippines
- Interocean Group of Companies - India
- Minerals Council of Australia
- Ministry of Finance - Indonesia
- Metalloyd Limited - United Kingdom
- Malabar Cements Ltd - India
- Indian Energy Exchange, India
- Karbindo Abesyapradhi - Indoneisa
- GN Power Mariveles Coal Plant, Philippines
- Latin American Coal - Colombia
- Coastal Gujarat Power Limited - India
- Banpu Public Company Limited - Thailand
- Cement Manufacturers Association - India
- SMG Consultants - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Ambuja Cements Ltd - India
- Aboitiz Power Corporation - Philippines
- Timah Investasi Mineral - Indoneisa
- The University of Queensland
- GVK Power & Infra Limited - India
- Jorong Barutama Greston.PT - Indonesia
- Parliament of New Zealand
- Dalmia Cement Bharat India
- Aditya Birla Group - India
- PNOC Exploration Corporation - Philippines
- Ministry of Transport, Egypt
- Borneo Indobara - Indonesia
- Port Waratah Coal Services - Australia
- Karaikal Port Pvt Ltd - India
- Thiess Contractors Indonesia
- Sindya Power Generating Company Private Ltd
- Bank of Tokyo Mitsubishi UFJ Ltd
- Therma Luzon, Inc, Philippines
- Sical Logistics Limited - India
- Kapuas Tunggal Persada - Indonesia
- Lanco Infratech Ltd - India
- Chamber of Mines of South Africa
- Price Waterhouse Coopers - Russia
- Binh Thuan Hamico - Vietnam
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