[Levin]

October 1, 2021
9:29 PM +08
Last Updated 2 days ago

By Sudarshan Varadhan



WHAT ARE THE CURRENT STOCK LEVELS?

As at Sept. 29, 16 of India's 135 coal-fired power plants had zero coal stocks

......

Over half of the plants had stocks that would last fewer than three days, while over 80% had less than a week's stock left.

Coal accounts for over 70% of India's electricity output, and utilities account for about 75% of India's coal consumption.


WHAT CAUSED THE COAL SHORTAGE?

India's industrial power demand has surged after the second coronavirus pandemic wave. On top of that, a widening price gap between lower domestic prices and record global coal prices has led buyers to shun imports.

......

WHY ARE UTILITIES UNABLE TO PASS ON HIGHER COSTS?

India's power tariffs, set by the respective states, are among the lowest in the world, according to the website globalpetrolprices.com, as state-run distribution companies have absorbed higher input costs to keep tariffs steady.

This has left many of these companies deeply indebted, with cumulative liabilities running into billions of dollars.

The companies' strained balance sheets have consistently triggered delayed payments to power producers, often affecting cash flows and disincentivising further investment in the electricity generation sector.



https://www.reuters.com/world/india/why-...021-10-01/

[Rubitin]

October 1, 2021
9:29 PM +08
Last Updated 2 days ago

By Sudarshan Varadhan

WFH?  

WHAT ARE THE CURRENT STOCK LEVELS?

As at Sept. 29, 16 of India's 135 coal-fired power plants had zero coal stocks

......

Over half of the plants had stocks that would last fewer than three days, while over 80% had less than a week's stock left.

Coal accounts for over 70% of India's electricity output, and utilities account for about 75% of India's coal consumption.


WHAT CAUSED THE COAL SHORTAGE?

India's industrial power demand has surged after the second coronavirus pandemic wave. On top of that, a widening price gap between lower domestic prices and record global coal prices has led buyers to shun imports.

......

WHY ARE UTILITIES UNABLE TO PASS ON HIGHER COSTS?

India's power tariffs, set by the respective states, are among the lowest in the world, according to the website globalpetrolprices.com, as state-run distribution companies have absorbed higher input costs to keep tariffs steady.

This has left many of these companies deeply indebted, with cumulative liabilities running into billions of dollars.

The companies' strained balance sheets have consistently triggered delayed payments to power producers, often affecting cash flows and disincentivising further investment in the electricity generation sector.



https://www.reuters.com/world/india/why-...021-10-01/

[debono]

October 1, 2021
9:29 PM +08
Last Updated 2 days ago

By Sudarshan Varadhan



WHAT ARE THE CURRENT STOCK LEVELS?

As at Sept. 29, 16 of India's 135 coal-fired power plants had zero coal stocks

......

Over half of the plants had stocks that would last fewer than three days, while over 80% had less than a week's stock left.

Coal accounts for over 70% of India's electricity output, and utilities account for about 75% of India's coal consumption.


WHAT CAUSED THE COAL SHORTAGE?

India's industrial power demand has surged after the second coronavirus pandemic wave. On top of that, a widening price gap between lower domestic prices and record global coal prices has led buyers to shun imports.

......

WHY ARE UTILITIES UNABLE TO PASS ON HIGHER COSTS?

India's power tariffs, set by the respective states, are among the lowest in the world, according to the website globalpetrolprices.com, as state-run distribution companies have absorbed higher input costs to keep tariffs steady.

This has left many of these companies deeply indebted, with cumulative liabilities running into billions of dollars.

The companies' strained balance sheets have consistently triggered delayed payments to power producers, often affecting cash flows and disincentivising further investment in the electricity generation sector.



https://www.reuters.com/world/india/why-...021-10-01/

In India, the price of electricity is very low, but there is always an increasing pressure for electricity demand.  With 70% of India's electricity produced by coal-fired generating stations.  The lack of coal will eventually lead to power outage.  These days we a talking above carbon footprints, and coal-fired generating stations are the ones who emits large amounts of carbon dioxide.  So the world is trying to reduce carbon dioxide in our atmosphere, and thence generating stations, have to be oil-fired, or depend on wind power, solar power or hydroelectric power.....