COALspot.com keeps you connected across the coal world
  • NOVEMBER 2021 HBA FOR EXPORTS INCREASED BY $33.03% MOM, $85.79 YTM AND $183.50% YOY
  • NOVEMBER 2021 INDONESIAN COAL PRICE REFERENCE FOR EXPORTS FIXED AT US$215.01 A TON

Submit Your Articles
We welcome article submissions from experts in the areas of coal, mining, shipping, etc.

To Submit your article please click here.

International Energy Events


WTI Crude Oil

BRENT Crude Oil

Search News
Latest CoalNews Headlines
Tuesday, 26 October 21
ENERGY CRISIS SHOWS COAL IS AN EXPENSIVE AND UNRELIABLE SOURCE OF ELECTRICITY GENERATION - IEEFA
Any knee-jerk reaction that urges more investment in coal completely misses the point

India is teetering on the brink of joining a growing global energy crisis. This burning issue is not only keeping coal power producers, distribution companies, and state governments awake at night, but also the Prime Minister’s Office, the Ministry of Power and the Ministry of Coal. Daily analysis of coal stocks is taking place at the highest levels to avert the risk of blackouts.
 
So how did we end up in this situation? And what can we learn from it?
 
Understanding the causes
Electricity demand in India has soared on the back of recent strong economic growth. But peak demand during September and October is around 175 gigawatts (GW), less than it was in July when demand crossed 200GW. In July, however, there was enough coal-powered production as well as generation available from wind and hydro to meet the peak demand. The real demand surges happened before the current crisis with much higher demand from late June to mid-July, and again during August.
 
While electricity demand was expected to surge with the economic revival, it is less the demand level than the lack of preparedness at the supply side that is driving the current power plant coal and electricity shortage.
 
At the end of financial year (FY) 2020/21, coal stocks hit a record high of 132 million tonnes (MT) – Coal India Ltd. (CIL) and Singareni Collieries Company Limited (SCCL) had the highest pithead coal stockpiles. Comparing the coal stock positions for the first seven months (January to July period) over the last four years, total coal consumption increased by 21% in 2021 compared to 2020, by 7% over 2019 and by 11% over 2018.
 
CIL was sitting on much larger coal stockpiles than usual – over 40 MT – even at the end of September, so how has the situation become so precarious? Monsoons impact CIL production every year, but this year was different – India witnessed an extended monsoon season which exacerbated the coal shortage crisis. Further, issues with transportation logistics during this season led to lower offtake of coal.
 
But despite all these issues, CIL still had enough supplies to meet coal demand. On 9 October the total despatch of coal from all sources, including CIL’s and SCCL’s production, captive mines, and imports, was 1.92 MT against the total consumption of 1.87MT. The coal despatch was further increased to 2 MT on 12 October.
 
Although there is enough coal at CIL’s end, despatch to coal power plants has become an issue. CIL has been regulating supplies to coal power producers on account of discom payment delays, which means that the situation is worse in states where coal power producers have large outstanding dues.
 
Analysis of the daily coal stock position reveals a deterioration as more plants reported their supplies were reaching critical levels. On 1 August, 23 plants with installed capacity of 33GW had critical coal supplies. By 9 September, this increased to 92 (with total installed capacity of 112GW) and by 22 September, it was 102 (123GW). On 10 October 2021, the amount of capacity with critical coal supplies had reached 140GW.
 
A key problem was that power producers did not stock enough coal before the monsoons when coal stock supplies and dispatchability from CIL were not an issue. There was an expectation that another Covid wave would hit India during the festive season in October and supress demand. So power producers were ‘playing safe’ – at least financially – by not maintaining the mandatory coal stock supplies at their end, and this is a key cause of the current supply crisis.
 
Moreover, with the increase in price of imported Indonesian coal – from US$60/tonne in March 2021 to US$200/tonne in September/October for 5,000 Kcal/kg GAR (Gross As Received) coal – the shortfall could not be viably met through coal imports. Given the skyrocketing prices of imported coal, power producers have been reluctant to increase coal imports, and incur the resulting losses.
 
Although daily wind generation fell from a high of 510 MUs in August 2021 to 100-150 MUs in September-October, this is a normal seasonal event, and since 1 September, wind has generated far more (between 23% and 41%) than in the equivalent period in each of the last three years, and hydro slightly more, so they cannot be blamed for the energy shortfall. Meanwhile solar has steadily and predictably increased its contribution to the grid.
 
Finding solutions
 
While the current energy crisis has prompted alarm, the government has sprung into action and with monsoons receding, domestic coal production and coal offtake have been ramped up. To deal with the crisis, the government has suggested blending 10% of imported coal with domestic coal which would soften the high prices. The government has also asked power plants with captive mines to ensure these mines are used to the maximum. The captive mines have been allowed to sell 50% of their annual output in the open market. Plants with imported coal power purchase agreements (PPAs) have been asked to redirect coal to generators with low stocks.
 
With these efforts, it is likely, at least in the short term, that a blackout situation will be averted. Looking ahead, there is growing recognition that coal is a ‘zombie fuel’ – the walking dead – and we should be progressively reducing our reliance on it by building clean, cheaper domestic alternatives at increased speed.
 
Any knee-jerk reaction that urges more investment in coal completely misses the point. The cost of coal-based generation is high and, further, it is inflationary. The current crisis has also revealed that coal is an unreliable source of electricity generation that is heavily dependent on a long supply chain and would be better used as flexible generation as the share of variable renewable energy increases.
 
India must now accelerate the deployment of deflationary renewable energy. To ensure a secure, reliable and low-emissions electricity system, we urgently need flexible and dynamic generation solutions in the form of battery storage, pumped hydro storage, peaking gas-fired capacity and flexible operation of the existing coal fleet.
 
By Vibhuti Garg, Energy Economist and Lead India at the Institute for Energy Economics and Financial Analysis (IEEFA)
 
This commentary first appeared in The Economic Times


If you believe an article violates your rights or the rights of others, please contact us.

Recent News

Saturday, 10 February 18
OIL PRICE USD 100/BARREL BY END OF 2018! - SAROJ MOHAPATRA
All demand supplies calculations are going wrong in oil market at present. US production is increasing at a good pace and set to topple Saudi comfo ...


Friday, 09 February 18
COAL BUYERS SPOOKED BY INDONESIA'S NEW SHIPPING RULES - ASSOC
Buyers of Indonesian coal are holding back orders of the fuel after the government issued new shipping rules for coal and crude palm oil that would ...


Thursday, 08 February 18
ENHANCED PRODUCTION BY COAL INDIA LIMITED HELPS DECLINE IN COAL IMPORTS - UNION MINISTER OF RAILWAYS AND COAL
According to press release from PIB, as per the current import policy, coal is kept under Open General License (OGL) and consumers are free to impo ...


Thursday, 08 February 18
A NEW WEEK WITH A SOFT SENTIMENT AND DECREASING RATES IN BOTH HEMISPHERE FOR THE PANAMAXES, SAYS FEARNLEYS
Supramax USG dropping remarkably due to lack of fresh enquiry both for fhaul and bhaul, Supras were fixed from USG to Spore-Japan range now aroun ...


Wednesday, 07 February 18
INDONESIAN COAL PRICE REFERENCE RISES TO HIT THIRTEEN-MONTH HIGH OF $100.69 A TON
COALspot.com: The Indonesian Coal Price Reference (HBA) rose 5.39 per cent in February 2018, the latest ministerial decree showed. The benchma ...


   281 282 283 284 285   
Showing 1411 to 1415 news of total 6470
News by Category
Popular News
 
Total Members : 27,644
Member
Panelist
User ID
Password
Remember Me
By logging on you accept our TERMS OF USE.
Free
Register
Forgot Password
 
Our Members Are From ...

  • Australian Coal Association
  • Platts
  • Aditya Birla Group - India
  • Sindya Power Generating Company Private Ltd
  • Miang Besar Coal Terminal - Indonesia
  • India Bulls Power Limited - India
  • Fearnleys - India
  • Minerals Council of Australia
  • Savvy Resources Ltd - HongKong
  • Bangkok Bank PCL
  • Renaissance Capital - South Africa
  • Parliament of New Zealand
  • Chettinad Cement Corporation Ltd - India
  • Panama Canal Authority
  • Madhucon Powers Ltd - India
  • Offshore Bulk Terminal Pte Ltd, Singapore
  • San Jose City I Power Corp, Philippines
  • Georgia Ports Authority, United States
  • Orica Mining Services - Indonesia
  • SGS (Thailand) Limited
  • Deutsche Bank - India
  • Thai Mozambique Logistica
  • J M Baxi & Co - India
  • Asian Development Bank
  • NALCO India
  • Heidelberg Cement - Germany
  • TNB Fuel Sdn Bhd - Malaysia
  • Tamil Nadu electricity Board
  • Thermax Limited - India
  • McKinsey & Co - India
  • Dong Bac Coal Mineral Investment Coporation - Vietnam
  • UOB Asia (HK) Ltd
  • Arch Coal - USA
  • Vizag Seaport Private Limited - India
  • VISA Power Limited - India
  • The India Cements Ltd
  • Malco - India
  • Indonesia Power. PT
  • Indika Energy - Indonesia
  • Bhoruka Overseas - Indonesia
  • Indian School of Mines
  • Ince & co LLP
  • Arutmin Indonesia
  • Karbindo Abesyapradhi - Indoneisa
  • CIMB Investment Bank - Malaysia
  • SMC Global Power, Philippines
  • SASOL - South Africa
  • Antam Resourcindo - Indonesia
  • Idemitsu - Japan
  • Rio Tinto Coal - Australia
  • PetroVietnam
  • GNFC Limited - India
  • Maheswari Brothers Coal Limited - India
  • Truba Alam Manunggal Engineering.Tbk - Indonesia
  • TNPL - India
  • Gujarat Sidhee Cement - India
  • Borneo Indobara - Indonesia
  • Geoservices-GeoAssay Lab
  • Leighton Contractors Pty Ltd - Australia
  • RBS Sempra - UK
  • London Commodity Brokers - England
  • TeaM Sual Corporation - Philippines
  • Uttam Galva Steels Limited - India
  • Coaltrans Conferences
  • World Coal - UK
  • OPG Power Generation Pvt Ltd - India
  • Credit Suisse - India
  • Asmin Koalindo Tuhup - Indonesia
  • Cardiff University - UK
  • Maruti Cements - India
  • Japan Coal Energy Center
  • HSBC - Hong Kong
  • KEPCO - South Korea
  • Oldendorff Carriers - Singapore
  • Chamber of Mines of South Africa
  • Straits Asia Resources Limited - Singapore
  • Pendopo Energi Batubara - Indonesia
  • U S Energy Resources
  • AsiaOL BioFuels Corp., Philippines
  • ACC Limited - India
  • Mintek Dendrill Indonesia
  • ETA - Dubai
  • Ministry of Mines - Canada
  • Cement Manufacturers Association - India
  • Cosco
  • Inspectorate - India
  • SUEK AG - Indonesia
  • Romanian Commodities Exchange
  • Noble Europe Ltd - UK
  • Indorama - Singapore
  • BNP Paribas - Singapore
  • Australian Commodity Traders Exchange
  • Coastal Gujarat Power Limited - India
  • Edison Trading Spa - Italy
  • Malabar Cements Ltd - India
  • Parry Sugars Refinery, India
  • Energy Development Corp, Philippines
  • Argus Media - Singapore
  • Maybank - Singapore
  • Bayan Resources Tbk. - Indonesia
  • NTPC Limited - India
  • Bank of Tokyo Mitsubishi UFJ Ltd
  • Indian Energy Exchange, India
  • SRK Consulting
  • Trasteel International SA, Italy
  • Indian Oil Corporation Limited
  • Orica Australia Pty. Ltd.
  • Price Waterhouse Coopers - Russia
  • PLN - Indonesia
  • Wood Mackenzie - Singapore
  • IBC Asia (S) Pte Ltd
  • Mitsui
  • Alfred C Toepfer International GmbH - Germany
  • Karaikal Port Pvt Ltd - India
  • PLN Batubara - Indonesia
  • Port Waratah Coal Services - Australia
  • Maersk Broker
  • Meenaskhi Energy Private Limited - India
  • Siam City Cement - Thailand
  • Global Green Power PLC Corporation, Philippines
  • Bukit Asam (Persero) Tbk - Indonesia
  • Coal Orbis AG
  • Lanco Infratech Ltd - India
  • Banpu Public Company Limited - Thailand
  • IOL Indonesia
  • Meralco Power Generation, Philippines
  • Runge Indonesia
  • Independent Power Producers Association of India
  • SN Aboitiz Power Inc, Philippines
  • Economic Council, Georgia
  • Humpuss - Indonesia
  • Coal India Limited
  • Vedanta Resources Plc - India
  • Cargill India Pvt Ltd
  • Coal and Oil Company - UAE
  • Kalimantan Lumbung Energi - Indonesia
  • Timah Investasi Mineral - Indoneisa
  • Lafarge - France
  • Asia Pacific Energy Resources Ventures Inc, Philippines
  • Sakthi Sugars Limited - India
  • Jatenergy - Australia
  • Mechel - Russia
  • IHS Mccloskey Coal Group - USA
  • Commonwealth Bank - Australia
  • ICICI Bank Limited - India
  • Billiton Holdings Pty Ltd - Australia
  • Star Paper Mills Limited - India
  • Platou - Singapore
  • Ministry of Transport, Egypt
  • JPower - Japan
  • Britmindo - Indonesia
  • Ambuja Cements Ltd - India
  • Singapore Mercantile Exchange
  • Dalmia Cement Bharat India
  • Adaro Indonesia
  • Barclays Capital - USA
  • PNOC Exploration Corporation - Philippines
  • IMC Shipping - Singapore
  • Bangladesh Power Developement Board
  • Mitsubishi Corporation
  • Videocon Industries ltd - India
  • Indogreen Group - Indonesia
  • Globalindo Alam Lestari - Indonesia
  • KPCL - India
  • Carbofer General Trading SA - India
  • Kobe Steel Ltd - Japan
  • Interocean Group of Companies - India
  • Wilmar Investment Holdings
  • EMO - The Netherlands
  • PTC India Limited - India
  • TRAFIGURA, South Korea
  • Medco Energi Mining Internasional
  • CoalTek, United States
  • Aboitiz Power Corporation - Philippines
  • Reliance Power - India
  • Anglo American - United Kingdom
  • Global Business Power Corporation, Philippines
  • The State Trading Corporation of India Ltd
  • Agrawal Coal Company - India
  • Petrochimia International Co. Ltd.- Taiwan
  • Thriveni
  • Larsen & Toubro Limited - India
  • Total Coal South Africa
  • Indo Tambangraya Megah - Indonesia
  • European Bulk Services B.V. - Netherlands
  • The University of Queensland
  • Dr Ramakrishna Prasad Power Pvt Ltd - India
  • Holcim Trading Pte Ltd - Singapore
  • globalCOAL - UK
  • Core Mineral Indonesia
  • GHCL Limited - India
  • LBH Netherlands Bv - Netherlands
  • Bukit Makmur.PT - Indonesia
  • Mercuria Energy - Indonesia
  • EIA - United States
  • Bank of America
  • Semirara Mining and Power Corporation, Philippines
  • White Energy Company Limited
  • Grasim Industreis Ltd - India
  • Energy Link Ltd, New Zealand
  • Semirara Mining Corp, Philippines
  • Krishnapatnam Port Company Ltd. - India
  • TANGEDCO India
  • Deloitte Consulting - India
  • The Treasury - Australian Government
  • Attock Cement Pakistan Limited
  • Salva Resources Pvt Ltd - India
  • Jaiprakash Power Ventures ltd
  • Sojitz Corporation - Japan
  • DBS Bank - Singapore
  • Pinang Coal Indonesia
  • Kohat Cement Company Ltd. - Pakistan
  • Merrill Lynch Bank
  • World Bank
  • Cemex - Philippines
  • PowerSource Philippines DevCo
  • Gresik Semen - Indonesia
  • APGENCO India
  • MEC Coal - Indonesia
  • Eastern Coal Council - USA
  • Mercator Lines Limited - India
  • Goldman Sachs - Singapore
  • WorleyParsons
  • GB Group - China
  • Toyota Tsusho Corporation, Japan
  • Kartika Selabumi Mining - Indonesia
  • OCBC - Singapore
  • Kaltim Prima Coal - Indonesia
  • Bhatia International Limited - India
  • Qatrana Cement - Jordan
  • ANZ Bank - Australia
  • TGV SRAAC LIMITED, India
  • Directorate General of MIneral and Coal - Indonesia
  • Kepco SPC Power Corporation, Philippines
  • Petrosea - Indonesia
  • Inco-Indonesia
  • Standard Chartered Bank - UAE
  • Bahari Cakrawala Sebuku - Indonesia
  • Essar Steel Hazira Ltd - India
  • Therma Luzon, Inc, Philippines
  • Riau Bara Harum - Indonesia
  • Cigading International Bulk Terminal - Indonesia
  • Clarksons - UK
  • Permata Bank - Indonesia
  • Ind-Barath Power Infra Limited - India
  • Vijayanagar Sugar Pvt Ltd - India
  • ING Bank NV - Singapore
  • Sree Jayajothi Cements Limited - India
  • JPMorgan - India
  • Vale Mozambique
  • Power Finance Corporation Ltd., India
  • Electricity Generating Authority of Thailand
  • CCIC - Indonesia
  • New Zealand Coal & Carbon
  • GN Power Mariveles Coal Plant, Philippines
  • Sarangani Energy Corporation, Philippines
  • Kobexindo Tractors - Indoneisa
  • Iligan Light & Power Inc, Philippines
  • MS Steel International - UAE
  • Bank of China, Malaysia
  • Manunggal Multi Energi - Indonesia
  • Ministry of Finance - Indonesia
  • Maharashtra Electricity Regulatory Commission - India
  • Thomson Reuters GRC
  • Cebu Energy, Philippines
  • Africa Commodities Group - South Africa
  • GMR Energy Limited - India
  • Glencore India Pvt. Ltd
  • Samsung - South Korea
  • Russian Coal LLC
  • Filglen & Citicon Mining (HK) Ltd - Hong Kong
  • Simpson Spence & Young - Indonesia
  • Metalloyd Limited - United Kingdom
  • Central Java Power - Indonesia
  • Bhushan Steel Limited - India
  • Adani Power Ltd - India
  • Coalindo Energy - Indonesia
  • Global Coal Blending Company Limited - Australia
  • Latin American Coal - Colombia
  • Freeport Indonesia
  • Makarim & Taira - Indonesia
  • International Coal Ventures Pvt Ltd - India
  • SMG Consultants - Indonesia
  • Rudhra Energy - India
  • Shenhua Group - China
  • Pipit Mutiara Jaya. PT, Indonesia
  • PetroVietnam Power Coal Import and Supply Company
  • Berau Coal - Indonesia
  • Rashtriya Ispat Nigam Limited - India
  • Vitol - Bahrain
  • South Luzon Thermal Energy Corporation
  • GAC Shipping (India) Pvt Ltd
  • Sucofindo - Indonesia
  • Posco Energy - South Korea
  • Tata Power - India
  • Indonesian Coal Mining Association
  • Directorate Of Revenue Intelligence - India
  • KPMG - USA
  • Jorong Barutama Greston.PT - Indonesia
  • ASAPP Information Group - India
  • Bukit Baiduri Energy - Indonesia
  • Moodys - Singapore
  • Jindal Steel & Power Ltd - India
  • Mitra SK Pvt Ltd - India
  • Xstrata Coal
  • Eastern Energy - Thailand
  • Siam City Cement PLC, Thailand
  • Tata Chemicals Ltd - India
  • GVK Power & Infra Limited - India
  • Enel Italy
  • Kapuas Tunggal Persada - Indonesia
  • McConnell Dowell - Australia
  • CESC Limited - India
  • KOWEPO - South Korea
  • Coeclerici Indonesia
  • Samtan Co., Ltd - South Korea
  • Surastha Cement
  • Gupta Coal India Ltd
  • Xindia Steels Limited - India
  • Kideco Jaya Agung - Indonesia
  • IEA Clean Coal Centre - UK
  • CNBM International Corporation - China
  • Baramulti Group, Indonesia
  • Barasentosa Lestari - Indonesia
  • Asia Cement - Taiwan
  • Binh Thuan Hamico - Vietnam
  • Kumho Petrochemical, South Korea
  • Ernst & Young Pvt. Ltd.
  • Ceylon Electricity Board - Sri Lanka
  • Shree Cement - India
  • Electricity Authority, New Zealand
  • Peabody Energy - USA
  • Tanito Harum - Indonesia
  • Neyveli Lignite Corporation Ltd, - India
  • Intertek Mineral Services - Indonesia
  • Mjunction Services Limited - India
  • Merrill Lynch Commodities Europe
  • Planning Commission, India
  • Infraline Energy - India
  • Sical Logistics Limited - India
  • Thailand Anthracite
  • UBS Singapore
  • Marubeni Corporation - India
  • BRS Brokers - Singapore
  • Gujarat Electricity Regulatory Commission - India
  • Gujarat Mineral Development Corp Ltd - India
  • bp singapore
  • Bulk Trading Sa - Switzerland
  • Petron Corporation, Philippines
  • Formosa Plastics Group - Taiwan
  • Central Electricity Authority - India
  • Sinarmas Energy and Mining - Indonesia
  • Thiess Contractors Indonesia
  • Bharathi Cement Corporation - India
  • Altura Mining Limited, Indonesia