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India launches electricity distribution revival plan

  • Spanish Market: Coal
  • 01/08/22

India has launched a plan to invest 3.04 trillion rupees ($38.4bn) in reviving ailing electricity distributors, with a broader goal to boost the country's power sector.

Prime minister Narendra Modi launched the plan on 30 July, around a year after it was approved by the federal cabinet.

The plan, known as the revamped distribution sector scheme, is aimed at boosting "the operational efficiencies and financial sustainability" of Indian electricity distribution companies, the federal power ministry said.

The plan seeks to provide financial assistance to distribution companies "for modernisation and strengthening of distribution infrastructure", aiming to improve the reliability and quality of electricity supply, the ministry added.

These distributors are predominantly government-owned and considered to be the weakest link in the electricity supply chain, with outstanding payments to utilities, including coal-fired operators, of about Rs1.05 trillion.

The plan is focused on revamping the supply infrastructure and cutting transmission and distribution losses. The power ministry will provide conditional financial assistance to the distributors based on parameters linked to operational improvement under the scheme, which will be available until March 2026.

The steps to revive the distributors is vital to the country's plans to expand generation and power its economy. The plan will also involve prompting distributors to install pre-paid smart meters and upgrade systems, among other measures to achieve operational efficiency.

The financial health of the distributors has weakened over the years with irregular revisions to tariffs to cover costs and sustain free cash flow. These firms have borrowed heavily from state-controlled financial institutions to pay utilities and meet other working capital needs. This has also weighed on generation at utilities given the inability of distributors to increase electricity purchases because of the financial turmoil. This has in turn pressured operations at state-controlled coal producer Coal India as utilities delayed payments for coal supplies.

Delhi has proposed amending existing electricity legislation to support overall plans to revive the ailing distributors. The amendment includes provisions on regular tariff revisions, as well as steps to trim distribution losses.


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11/06/25

EPA seeks end to power plant CO2, mercury rules

EPA seeks end to power plant CO2, mercury rules

Washington, 11 June (Argus) — The US Environmental Protection Agency (EPA) on Wednesday proposed the repeal of CO2 and mercury emissions standards for power plants, its latest steps in an effort to undo many of the regulations enacted by President Donald Trump's predecessors The agency said the repeals will help bring about an end to the "war on much of our domestic energy supply" waged by previous administrations, while saving consumers money "We have chosen to both protect the environment and grow the economy," EPA administrator Lee Zeldin said. "There was this false binary choice made before we got here." Together, the repeals would save more than $1bn/yr for American families, Zeldin said. The standards, finalized last year by EPA during the administration of former president Joe Biden, cover CO2 emissions from existing and new coal-fired power plants and new natural gas-fired units, as well as mercury emissions from coal- and oil-fired power plants. At the time, EPA said the CO2 rules will lead to a 90pc reduction in emissions from coal-fired power plants, while it tightened the Mercury and Air Toxics Standards (MATS) for coal- and oil-fired units by 67pc and included new emissions-monitoring requirements. In addition, the MATS for lignite-fired units were tightened by 70pc to put them in line with the standards for other coal plants. The CO2 rule includes standards for new coal and gas units and guidance for existing coal-fired power plants, the latter of which vary by unit type, size and other factors such as whether a power plant provides baseload or backup power. It does not include standards for existing gas-fired generators, which EPA had proposed in 2023 but last year decided to scrap in favor of a "new, comprehensive approach". While the CO2 regulation would be fully repealed, Zeldin said the agency is proposing to only undo last year's "gratuitous" changes to MATS, such as the new lignite standards. "If finalized no power plant will be allowed to emit more than they do now or as much as they did one or two years ago," he said. In addition to repealing the two Biden regulations, EPA is proposing to undo the Clean Power Plan, developed by the agency during the administration of former president Barack Obama. It would do this in part by reversing a previous agency determination that it could regulate greenhouse gas (GHG) emissions from power plants, and by also finding that those emissions "do not contribute significantly to dangerous air pollution." The Clean Power Plan has never been enforced, and the US Supreme Court in 2022 ruled the agency lacked the authority to regulate CO2 emissions from power plants in the way envisioned by that approach. Unlike during Trump's first term, when EPA first sought to repeal the Clean Power Plan, the agency this time around is not proposing any replacement. The previous replacement rule was struck down by the US District of Columbia Circuit Court of Appeals in 2021. The lack of a new rule could make EPA more vulnerable to legal challenges, which are all but certain to be filed by environmental groups and some states. "This administration is transparently trading American lives for campaign dollars and the support of fossil fuel companies, and Americans ought to be disgusted and outraged that their government has launched an assault on our health and our future," Sierra Club climate policy director Patrick Drupp said. Zeldin said he was not concerned about any potential litigation. "I would say with great enthusiasm and excitement for the future, I know we are absolutely going down the right path," he said. Coal and electric sector groups cheered EPA's proposal. "Today's announcement nullifies two of EPA's most consequential air rules, removing deliberately unattainable standards and leveling the playing field for reliable power sources, instead of stacking the deck against them," National Mining Association president Rich Nolan said. EPA in March included the CO2 and mercury rules among 31 Obama and Biden-era regulations and actions it planned to review and potentially repeal. Since then, the White House has identified more than 60 fossil fuel-fired power plants that will have two extra years to comply with the more-stringent MATS, giving them a reprieve while EPA works to formally repeal the regulations. The March announcement also included a reconsideration of the 2009 endangerment finding for GHG emissions, which underpins all of the major climate regulations EPA issued in recent years. "I don't have anything to announce today as it relates to any proposed rulemaking that may be to come on that topic," Zeldin said. EPA will open a 45-day public comment period on each proposed repeal once they are published in the Federal Register . By Michael Ball Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Vietnam's coal imports hit 23-month high in May


11/06/25
11/06/25

Vietnam's coal imports hit 23-month high in May

Singapore, 11 June (Argus) — Vietnam's coal imports in May rose on the year to the highest level in 23 months, supported by restocking by utilities to cater for an increase in power demand in northern parts of the country. Seaborne receipts reached 7.2mn t in May, up from about 6.5mn t a year earlier and 7.16mn t in April , according to customs data. This marks the highest level since the 7.21mn t of coal imported in June 2023. Imports reached 31.64mn t in January-May, up from 27.06mn t a year earlier, Vietnamese customs data show. The data do not differentiate between coking and thermal coal. Receipts rose in May on restocking by utilities and steady industrial coal consumption in line with the economic activity in the country. The country's industrial output grew by 9.4pc in May from a year earlier, according to Vietnam's General Statistics Office (GSO), supporting its economic growth outlook. The utility restocking comes as hot weather peaks in June in northern Vietnam, which could buoy power demand and prompt utilities to boost coal-fired generation. This could support imports as power plants could continue to restock imported cargoes given that seaborne prices are at multi-year lows. Argus assessed the GAR 4,200 kcal/kg coal market for geared Supramaxes at $42.41/t fob Kalimantan on 6 June, the lowest since 26 March, 2021, when it was marked at $39.37/t. The country's overall generation last month stood at 28.62TWh , edging higher from 28.09TWh a year earlier, and 26.85TWh in April, data from state-owned utility EVN show. Coal-fired power accounted for the bulk of the generation last month at 15.8TWh, although this was down from 17.08TWh a year earlier and 16.09TWh in April. Hydropower output rose to 7.65TWh, up by 64pc from a year earlier, and also rising from an estimated 4.7TWh in April. EVN has asked all its units and plants to ensure stable supply of electricity, it said, and it will also ask local authorities to implement measures to save electricity to help manage loads on the grid. Indonesian coal accounted for the bulk of Vietnam's imports at 2.9mn t in in May, little changed from a year earlier and from April, the customs data show. Imports from Australia rose to 2.38mn t in May, up from 1.18mn t a year earlier, and from 2.23mn t in April. By Saurabh Chaturvedi Vietnam coal imports mn t Vietnam coal import trend mn t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian coal supply hit by rain-related disruptions


10/06/25
10/06/25

Australian coal supply hit by rain-related disruptions

Singapore, 10 June (Argus) — Rain-related disruptions at Australia's Newcastle port — a major loading terminal for thermal coal in the country — and connecting rail networks have curtailed the availability of spot high-calorific value (CV) coal cargoes. Logistical challenges at the port and coal hauling railway lines following heavy rains and flooding since late May have exacerbated uncertainty in the seaborne market, with scarce availability of prompt June-loading and July-loading cargoes. The supply-side interruption comes at a time when demand for high-CV Australian NAR 6,000 kcal/kg coal is showing signs of picking up, although interest from China, the world's biggest coal importer, is still limited given the surplus of domestic coal. The uptick in Japanese demand and supply tightness has supported prices. Argus assessed the NAR 6,000 kcal/kg coal market at $101.80 fob Newcastle on 6 June, up by 42¢/t on the week. The assessed price has also recovered from its year-to-date low of $91.71 on 25 April. The premium of NAR 6,000 kcal/kg coal over NAR 5,500 kcal/kg is at $36.72/t fob Newcastle on 6 June, the highest since 3 January, when it was $41.07/t fob Newcastle. Shifting trade flows Vessel queues at Newcastle port was over 100/d on 6 June, according to market participants. Coal producers operating at Newcastle are facing delays of up to 10 days at Port Waratah Coal Services (PWCS) terminals and about 20 days at Newcastle Coal Infrastructure (NCIG) terminals. The delays may also lead to additional demurrage costs for producers, although at least one producer announced force majeure to cover the obligations. Several Australian coal producers said they are out of spot cargoes for June-July, while offers for August are also scarce. This comes as some Japanese buyers requested for July-loading cargoes but could not find any firm offers because of delays and a backlog of shipments at Newcastle, prompting them to enquire for cargoes in other regions such as China . Some traders may be holding Australian high-CV coal at China's Yantai West port, according to market participants. China does not consume high-CV NAR 6,000 kcal/kg coal, which is usually procured by Japanese utilities, and these stocks are likely held by Japanese trading houses, according to market participants. Cargoes of NAR 6,000 at this port were heard to be offered at $130-140/t cfr Japan, according to one Australian producer. But Argus could not independently verify the details of these offers. A Japanese utility likely purchased as many as two 28,000-36,000t cargoes of thermal coal from the Yantai West port in May, according to data from analytics firm Kpler. The data does not show any vessel movement from Yantai West port to Japan so far this month. Japan's power demand has been gradually increasing as temperatures have risen after the end of spring in late May. The country's power demand averaged 86GW in the week to 8 June, increasing by 4pc from a week earlier, according to nationwide transmission system operator the Organisation for Cross-regional Co-ordination of Transmission Operators. Some Japanese utilities are also restarting coal-fired power plants after conducting seasonal maintenance during the spring season. By Nadhir Mokhtar Australian coal premiums on NAR 6000 basis against NAR 5500 $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Coronado eyes Australian financing deal: Correction


10/06/25
10/06/25

Coronado eyes Australian financing deal: Correction

Corrects financing deal total in first paragraph to $150mn from A$150mn Sydney, 10 June (Argus) — US-Australian coal producer Coronado is holding talks with Australian state-owned electricity generator Stanwell for the latter to provide $150mn in exchange for thermal coal supply, supporting Coronado's cash-strapped coking coal business. The negotiations are incomplete and confidential, Coronado told investors on 5 June. There is no guarantee that the two groups will reach an agreement, it added. Coronado supplies 3mn t/yr of thermal coal to the 1460MW Stanwell Power Station, under a deal that is scheduled to end in the 2026-27 financial year (July-June). Coronado's Curragh mine in Queensland mostly produces coking coal but it also produces some thermal coal. The firm's saleable production fell by 3.6pc in 2024, although sales still increased year on year. Coronado exported 10.2mn t of hard coking coal from Curragh in 2024, up from 9.9mn t in 2023. But the company is facing cash availability difficulties, because of a fall in coking coal prices. Argus ' metallurgical coal premium hard low-volatile fob Australia price fell to $186.70/t on 5 June from $256.15/t on 7 June 2024. US credit ratings agency Fitch downgraded Coronado's credit rating from a B to a CCC+ on 14 May, because of expectations that its cash position will weaken without additional funding. But Coronado's cash position could improve soon, despite continued price weakness. The company started talks with Queensland's state government about possible mineral royalty relief in the first quarter, it told investors on 30 April. It also secured a A$150mn ($98mn) loan facility from lenders on 4 June, backed by coal inventories. By Avinash Govind Argus’ metallurgical coal premium hard low-vol fob Australia $/t Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US job growth slows in May, unemployment rate steady


06/06/25
06/06/25

US job growth slows in May, unemployment rate steady

Houston, 6 June (Argus) — US hiring eased in May, reflecting a labor market that is gradually slowing but has yet to reflect significant damage from the White House's volatile policies including tariffs. The US added 139,000 nonfarm jobs in May, slightly above economists' expectations for about 130,000 jobs, according to the Bureau of Labor Statistics (BLS). Job growth for April was revised down by 30,000 to 147,000 and job growth for March was revised lower to 120,000 from an initial 185,000. Job growth averaged 149,000 over the 12 months prior to May, BLS said. Fed funds futures after the report showed a 99.9pc probability the Federal Reserve will keep its target rate unchanged at the next meeting in two weeks, up 3.3 points from the prior day. The Fed has signalled it will continue to monitor the impacts of the administration's tariff, fiscal and other policies before adjusting policy. The unemployment rate remained unchanged at 4.2pc and has remained in a range of 4-4.2pc since May 2024. Federal government jobs declined by 22,000 and are off by 59,000 since January, reflecting the initial impacts of President Donald Trump's efforts to slash the federal workforce, which have been challenged in the courts. Employees on paid leave or receiving severance pay are reported as employed. Leisure and hospitality added 48,000 jobs last month following 29,000 jobs the prior month. Health care added 78,000 last month following gains of 85,000. Professional and business services lost 18,000 after gains of 10,000. Temporary help services, considered a leading indicator of labor market strength, lost 18,000. Transportation and warehousing gained 6,000 in May after a loss of 8,000. Manufacturing jobs fell by 8,000 following gains of 5,000. Motor vehicles and parts added 400 workers. Mining and logging lost 1,000 jobs. Average hourly earnings were up by 3.9pc in May, unchanged from the prior month. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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