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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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Friday, 26 November 21
CHINA FINDS COMPLIANCE PROBLEMS IN COAL PRICE INDEX PROBE - REUTERS
China’s state planner on Wednesday said it had discovered some “noncompliant” behaviour among coal price index providers as it an ...
Thursday, 25 November 21
SE ASIA POWER DEMAND TO RISE AS STATE SUPPORT MITIGATES COVID-19 IMPACT - FITCH RATINGS
Electricity demand in south-east Asia is likely to increase in 2021, following slow growth or contraction in 2020, thanks to state support that has ...
Thursday, 25 November 21
FITCH RATINGS INCREASES MOST GLOBAL METALS AND MINING PRICE ASSUMPTIONS - FITCH RATINGS
Fitch Ratings has increased most metals and mining price assumptions, particularly those that benefit from increased longer-term demand due to glob ...
Thursday, 25 November 21
CHINA'S COAL PRICE DROPS IN MID-NOVEMBER AMID GOVERNMENT’S SWEEPING MEASURES - GLOBAL TIMES
China’s coal prices have dropped significantly in mid-November compared with the beginning of the month, with the price of coking coal and co ...
Wednesday, 24 November 21
MARKET INSIGHT - INTERMODAL
Inflation is the word that has dominated the meetings of foreign leaders and finance ministers in recent weeks, as rising energy costs, supply chai ...
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- Vizag Seaport Private Limited - India
- CNBM International Corporation - China
- Orica Mining Services - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Straits Asia Resources Limited - Singapore
- SMG Consultants - Indonesia
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- India Bulls Power Limited - India
- Global Green Power PLC Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- Kapuas Tunggal Persada - Indonesia
- Tamil Nadu electricity Board
- Central Electricity Authority - India
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Global Coal Blending Company Limited - Australia
- Bayan Resources Tbk. - Indonesia
- Renaissance Capital - South Africa
- Sindya Power Generating Company Private Ltd
- Coalindo Energy - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- SMC Global Power, Philippines
- Electricity Generating Authority of Thailand
- Kumho Petrochemical, South Korea
- Minerals Council of Australia
- South Luzon Thermal Energy Corporation
- Mercuria Energy - Indonesia
- Sakthi Sugars Limited - India
- Australian Commodity Traders Exchange
- Bulk Trading Sa - Switzerland
- LBH Netherlands Bv - Netherlands
- Chamber of Mines of South Africa
- Iligan Light & Power Inc, Philippines
- Sree Jayajothi Cements Limited - India
- Singapore Mercantile Exchange
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- TeaM Sual Corporation - Philippines
- Petron Corporation, Philippines
- Ministry of Transport, Egypt
- Pendopo Energi Batubara - Indonesia
- Barasentosa Lestari - Indonesia
- Sojitz Corporation - Japan
- McConnell Dowell - Australia
- White Energy Company Limited
- Indogreen Group - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Ministry of Finance - Indonesia
- Metalloyd Limited - United Kingdom
- Madhucon Powers Ltd - India
- Jorong Barutama Greston.PT - Indonesia
- Wilmar Investment Holdings
- Romanian Commodities Exchange
- Indian Energy Exchange, India
- Rio Tinto Coal - Australia
- Toyota Tsusho Corporation, Japan
- Meralco Power Generation, Philippines
- Holcim Trading Pte Ltd - Singapore
- Electricity Authority, New Zealand
- Billiton Holdings Pty Ltd - Australia
- Goldman Sachs - Singapore
- Kalimantan Lumbung Energi - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Siam City Cement - Thailand
- Posco Energy - South Korea
- Coal and Oil Company - UAE
- Larsen & Toubro Limited - India
- Malabar Cements Ltd - India
- Ministry of Mines - Canada
- Tata Chemicals Ltd - India
- Bhushan Steel Limited - India
- GAC Shipping (India) Pvt Ltd
- Mercator Lines Limited - India
- Samtan Co., Ltd - South Korea
- Baramulti Group, Indonesia
- Planning Commission, India
- The State Trading Corporation of India Ltd
- Thiess Contractors Indonesia
- San Jose City I Power Corp, Philippines
- Asmin Koalindo Tuhup - Indonesia
- Kideco Jaya Agung - Indonesia
- Karaikal Port Pvt Ltd - India
- Bharathi Cement Corporation - India
- Price Waterhouse Coopers - Russia
- PTC India Limited - India
- Siam City Cement PLC, Thailand
- Antam Resourcindo - Indonesia
- Indo Tambangraya Megah - Indonesia
- Merrill Lynch Commodities Europe
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- MS Steel International - UAE
- Krishnapatnam Port Company Ltd. - India
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- Energy Link Ltd, New Zealand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Cigading International Bulk Terminal - Indonesia
- Altura Mining Limited, Indonesia
- Formosa Plastics Group - Taiwan
- PNOC Exploration Corporation - Philippines
- Bank of Tokyo Mitsubishi UFJ Ltd
- The University of Queensland
- Rashtriya Ispat Nigam Limited - India
- Africa Commodities Group - South Africa
- Sinarmas Energy and Mining - Indonesia
- Eastern Coal Council - USA
- Sarangani Energy Corporation, Philippines
- Mintek Dendrill Indonesia
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- Medco Energi Mining Internasional
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- Bukit Makmur.PT - Indonesia
- Port Waratah Coal Services - Australia
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- Bukit Baiduri Energy - Indonesia
- Edison Trading Spa - Italy
- Interocean Group of Companies - India
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- Banpu Public Company Limited - Thailand
- Simpson Spence & Young - Indonesia
- Agrawal Coal Company - India
- Jindal Steel & Power Ltd - India
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- Heidelberg Cement - Germany
- Ceylon Electricity Board - Sri Lanka
- Global Business Power Corporation, Philippines
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- ICICI Bank Limited - India
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- PowerSource Philippines DevCo
- Deloitte Consulting - India
- IEA Clean Coal Centre - UK
- Australian Coal Association
- Salva Resources Pvt Ltd - India
- Sical Logistics Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Semirara Mining and Power Corporation, Philippines
- CIMB Investment Bank - Malaysia
- Latin American Coal - Colombia
- Binh Thuan Hamico - Vietnam
- Carbofer General Trading SA - India
- AsiaOL BioFuels Corp., Philippines
- Gujarat Electricity Regulatory Commission - India
- Indian Oil Corporation Limited
- Kepco SPC Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Videocon Industries ltd - India
- Timah Investasi Mineral - Indoneisa
- IHS Mccloskey Coal Group - USA
- Bangladesh Power Developement Board
- Manunggal Multi Energi - Indonesia
- New Zealand Coal & Carbon
- Gujarat Sidhee Cement - India
- Indika Energy - Indonesia
- Power Finance Corporation Ltd., India
- Pipit Mutiara Jaya. PT, Indonesia
- Kartika Selabumi Mining - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Savvy Resources Ltd - HongKong
- Mjunction Services Limited - India
- Parliament of New Zealand
- Trasteel International SA, Italy
- Maheswari Brothers Coal Limited - India
- Eastern Energy - Thailand
- The Treasury - Australian Government
- GMR Energy Limited - India
- Attock Cement Pakistan Limited
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Uttam Galva Steels Limited - India
- Georgia Ports Authority, United States
- VISA Power Limited - India
- GN Power Mariveles Coal Plant, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Borneo Indobara - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Chettinad Cement Corporation Ltd - India
- Ind-Barath Power Infra Limited - India
- Dalmia Cement Bharat India
- Cement Manufacturers Association - India
- Commonwealth Bank - Australia
- Wood Mackenzie - Singapore
- Economic Council, Georgia
- Indonesian Coal Mining Association
- Standard Chartered Bank - UAE
- Alfred C Toepfer International GmbH - Germany
- Oldendorff Carriers - Singapore
- Aboitiz Power Corporation - Philippines
- Parry Sugars Refinery, India
- Jaiprakash Power Ventures ltd
- Miang Besar Coal Terminal - Indonesia
- Essar Steel Hazira Ltd - India
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- Gujarat Mineral Development Corp Ltd - India
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- London Commodity Brokers - England
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