India should cut thermal power dependence: Govt panel

  • Market: Coal, Electricity
  • 06/01/20

An Indian government panel has recommended lowering the country's reliance on thermal power over the next five years as part of a $1.4 trillion infrastructure spending plan.

The energy sector is proposed to account for as much as 24pc of the planned investment to be made by central and state governments and the private sector, with the power sector projected to get a large share of this, according to the panel's report that was released by India's finance ministry.

The panel forecast that India's installed electricity generation capacity will rise to 619GW by the financial year ending March 2025, up from 365.98GW now.

Thermal power generation capacity — which includes coal, natural gas, lignite and diesel-fired power plants — is projected to make up just 50pc of the total installed power generation mix by March 2025.

Thermal power currently accounts for 62.7pc of the country's installed capacity, which is dominated by coal.

Coal-fired electricity generation fell from a year earlier in December, amid an overall drop in power demand and stronger generation from sources such as hydropower. The weaker coal-fired electricity generation last month extended a trend of annual falls posted each month since August.

A key part of the plan is expanding electricity generation from renewable energy sources such as solar and wind. The proportion of installed power capacity based on renewable sources is expected to increase to 39pc from 23pc over the five-year period.

Some of the proposed investment will also go towards reforming debt-laden state-owned electricity distributors, dozens of which are operating at losses because of legacy issues related mainly to an inability to increase electricity tariffs.

These losses are likely to fall as the electricity distributors are expected to undertake a series of measures such as enhancing public-private-partnerships, regular tariff revisions and smart metering, the report said.

The proposal to seek more private-sector involvement fits with a move to attract investors to India's coal sector, as the government prepares to auction coal blocks for commercial mining.

The spending plan is part of prime minister Narendra Modi's push to propel the country's sagging economic growth. Providing round-the-clock electricity to all and promoting clean energy are central to his reform agenda.

By Saurabh Chaturvedi


Sharelinkedin-sharetwitter-sharefacebook-shareemail-share

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

News
23/04/24

Japan’s Higashidori No.1 reactor faces further delays

Japan’s Higashidori No.1 reactor faces further delays

Osaka, 23 April (Argus) — Japanese utility Tohoku Electric Power has confirmed a further delay in reinforcement works at its 1,100MW Higashidori No.1 nuclear reactor, with its completion date unknown. The postponement in restarting the Higashidori reactor in northern Aomori prefecture would encourage Tohoku to secure replacement thermal fuels — such as LNG and coal — for an extended period, although the company is planning to resume another reactor in September. Tohoku previously aimed to complete the reinforcement work at Higashidori in the April 2024-March 2025 fiscal year. But the company needs more time to clear all the procedures for the assessment of basic earthquake ground motions and tsunamis, and to prepare for the plant inspection. It is still unclear when the company will complete the safety measures. The Higashidori reactor is undergoing inspections by Japan's nuclear regulation authority (NRA), based on stricter safety rules following the 2011 Fukushima nuclear disaster. The reactor will need to pass the safety checks and secure approval from local governments before restarting. Tohoku has three commercial reactors, including two at Onagawa in Miyagi prefecture and the Higashidori No.1 reactor, of which it applied to restart two. The 825MW Onagawa No.2 reactor has already cleared the NRA's safety inspections and obtained permission from local authorities to restart. The company is now planning to restart the Onagawa No.2 reactor in September . The possible return of the Onagawa No.2 reactor will help Tohoku reduce consumption of thermal fuels. The company used 2.76mn t of LNG in April-December 2023, up by 12pc from a year earlier, in the absence of all its nuclear reactors. But its coal consumption fell by 12pc to 5.68mn t during the period. By Motoko Hasegawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Read more
News

Colombia's electricity woes add to unrest against Petro


22/04/24
News
22/04/24

Colombia's electricity woes add to unrest against Petro

Bogota, 22 April (Argus) — Colombians took the streets of major cities and towns across the nation on Sunday to protest mainly against health, pension and labor changes, but potential power outages are also creating discontent. Authorities estimated that about 250,000 Colombians marched in widespread protests, sparked by changes in healthcare. Congress in April had rejected President Gustavo Petro's proposals in the sector, and the government the next day seized the two largest private-sector health insurers. Protesting healthcare workers say the government did this to implement changes through a back channel. "Regulatory noise and risk are likely to remain high amid announcements, proposals, and measures [that do not require congressional approval], aimed at changing the game's rules in strategic sectors," brokerage Credicorp Capital said. Colombians also protested being on the verge of electricity rationing like that in neighboring Ecuador as hydroelectric reservoirs remain at record-low levels. Several unions and other associations have long warned the Petro administration to take measures to offset the effects of the El Nino weather phenomenon. Electricity distributors last year called for allowing bills for energy purchased on the spot market to be deferred and for loosening price index rules, among other proposals. The national business council sent at least three letters to the president on the issue. At least nine separate letters calling for preparation to prevent blackouts were sent to the president and ministers. Several actions were only recently implemented . "There are no risk of electricity rationing in Colombia," former energy minister Irene Velez said in 2023. "We do not understand why some people are interested in generating panic." Government weather forecasts also overestimated rainfall expected for March, leading hydroelectric plants to use more water in the reservoirs than they otherwise would have, said director of the thermoelectric generation association (Andeg) Alejandro Castaneda. Reservoir levels stood at 29.5pc today, rising thanks to rains since 19 April, up from 28.75pc on 18 April. Electricity rationing is set to begin when reservoirs drop below 27pc, according to grid operator XM. By Diana Delgado Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Baltimore opens third temporary shipping channel


22/04/24
News
22/04/24

Baltimore opens third temporary shipping channel

New York, 22 April (Argus) — A third temporary shipping channel has opened at the Port of Baltimore to allow more vessel traffic around the collapsed Francis Scott Key Bridge. Located on the northeast side of the main channel, the new passage has a controlling depth of 20-ft, a 300-ft horizontal clearance, and a vertical clearance of 135-ft. When combined with two other temporary channels opened earlier this month the port should be able to handle "... approximately 15 percent of pre-collapse commercial activity," said David O'Connell, the federal on-scene coordinator. The main shipping channel of the Port of Baltimore — a key conduit for US vehicle imports and coal exports — is expected to be reopened by the end of May, the Maryland Port Administration said earlier this month. The bridge collapsed into the water late last month when the 116,851dwt container ship Dali lost power and crashed into one of its support columns. Salvage teams have been working ever since to remove debris from the water and containers from the ship in order to clear the main channel. By Stephen Cunningham Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

TotalEnergies takes FID for Oman's Marsa LNG


22/04/24
News
22/04/24

TotalEnergies takes FID for Oman's Marsa LNG

Dubai, 22 April (Argus) — TotalEnergies has taken a final investment decision (FID) for the integrated Marsa LNG bunkering project it is carrying out in Oman with state oil company OQ. The project involves the production of 150mn ft³/d (1.55bn m³/yr) of gas from Oman's onshore block 10, the liquefaction of that gas at a new 1mn t/yr capacity plant to be built at the port of Sohar on Oman's north coast, and the construction of a 300MW solar generation facility that will power the plant. The ambition of the project is to serve as the first LNG bunkering hub in the Mideast Gulf region, showcasing "an available and competitive alternative marine fuel" to reduce emissions coming from the shipping industry. TotalEnergies said today that it expects to begin producing LNG by the first quarter of 2028. That LNG is "primarily intended to serve the marine fuel market in the Gulf", the company said, but all LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and OQ. "We are proud to open a new chapter in our history in the sultanate of Oman with the launch of the Marsa LNG project, together with OQ," TotalEnergies chief executive Patrick Pouyanne said. TotalEnergies holds a majority 80pc stake in the joint venture, with OQ holding the remaining 20pc. "We are especially pleased to deploy the two pillars of our transition strategy, LNG and renewables, and thus support the sultanate on a new scale in the sustainable development of its energy resources," Pouyanne said. TotalEnergies, Shell and OQ formalised an agreement to develop the gas resources in Oman's block 10 in late 2021 . The consortium began producing gas from the Mabrouk North East field in block 10 in January 2023. At the time, the companies said they expected to reach plateau production of 500mn ft³/d by the middle of 2024. But TotalEnergies today said the consortium had already reached plateau this month. As part of the original agreement, Marsa LNG was due to deliver production from the block to the government for 18 years, or until the end of 2039. But the decision by TotalEnergies and OQ to take FID has triggered an extension of Marsa LNG's rights to block 10 until 2050. The planned 300MW photovoltaic solar plant should cover 100pc of the LNG plant's annual power consumption, which will help "significantly" reduce greenhouse gases. "By paving the way for making the next generation of very low-emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy," Pouyanne said. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

News

Australia to launch 6GW renewables tender in May


22/04/24
News
22/04/24

Australia to launch 6GW renewables tender in May

Sydney, 22 April (Argus) — Australia's federal government plans to launch the country's largest ever tender for renewable energy in May, with more than a third of the capacity to be allocated to New South Wales (NSW) state. The first major tender under the federal government's expanded Capacity Investment Scheme (CIS) will offer support for 6GW of renewable generation capacity, with at least 2.2GW of the total set specifically to NSW, the federal and state governments said in a joint statement on 22 April. A market briefing outlining the tender process will be released in early May. A minimum of 300MW will also be exclusively allocated to projects in South Australia (SA), even though that is still subject to a final agreement between the federal and state governments. The remaining capacity will be allocated across the National Electricity Market, which apart from NSW and SA also includes Queensland, Victoria, Tasmania and the Australian Capital Territory. Tenders will run every six months until 2026-27 under the expanded CIS, with up to 15 years of support for a total of 32GW . This will consist of 23GW of renewable capacity like solar, wind and hydro and 9GW of dispatchable capacity such as pumped hydro and grid-scale batteries with at least two hours of dispatch. The inclusion of generation projects in NSW in the first CIS tender will replace the state's scheduled long-term energy service agreements (LTESA) tender under its NSW Roadmap. NSW will proceed though with the LTESA tender for long-duration storage infrastructure in the second quarter of 2024, as well as processes to award access rights for its Central West Orana and South West Renewable Energy Zones. The federal government also said it plans to launch a separate tender in Western Australia in mid-2024 targeting 500MW of dispatchable capacity. By Juan Weik Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more