Energy

Coal shortage easing at plants, power price falls on exchange

The average market price of power traded on the India Energy Exchange Day Ahead Market (IEX DAM) fell to Rs 2.4 per unit (kilowatt hour) on Friday from a peak of Rs 16.4 per unit on October 11, with states rushing to the exchange to buy power as thermal power plants struggled to meet demand due to low coal stocks.

The average coal inventory across the nation’s thermal power plants has improved to seven days worth of stock from an average of four days in the first half of October, when a number of states including Punjab, Uttar Pradesh and Rajasthan imposed load shedding as thermal plants ran out of the dry fuel.

Thermal power plants are required to maintain minimum reserves of 15-30 days of coal stock based on the distance of the plant from the source of coal. The total volume of power sold on the IEX DAM has also fallen to 1,47,308 MWh (megawatt hour), from a peak of 2,81,823 MWh on October 12.

A number of states were forced to buy power from the exchange at prices of Rs 20 per unit during the coal shortage.A sharp uptick in power demand with the economy recovering from the Covid-19 pandemic, coupled with above average rainfall in September impacting coal production and supply, had contributed to a drawdown in coal stocks

IMF welcomes India’s announcement at COP26 on renewables, net zero target by 2070

India's significant investment in renewables and climate change adaptation policies suggest it is well positioned to take further steps to reach this new target," IMF Director Rice said .The International Monetary Fund (IMF) on Thursday welcomed India’s announcement with regard to addressing the climate change challenges at the recently concluded COP26 summit in Glasgow.

“We welcome India’s announcement at the COP26 of new targets to increase reliance on renewables and reduce the carbon intensity of its economy, including to adopt net zero target by 2070,” Gerry Rice, Director, Communication Department, IMF, told reporters at a news conference.

“As you know, India is currently one of the world’s largest emitters, still heavily reliant on coal for electricity generation. And so, its actions may help catalyse action in other emerging market economies as well,” he said. “India’s significant investment in renewables and climate change adaptation policies suggest it is well positioned to take further steps to reach this new target,” Rice said responding to a question.

“We are heartened by India’s focus on achieving progress in the current decade given the urgent need for global mitigation action. And as with other countries, it will be important to follow through with specific actions to contain emissions over the current decade,” he added

Adani Group Commits 70% Capex Until 2030 To Energy Transition

Port-to-energy conglomerate Adani Group will invest over USD 50-70 billion in renewable energy value chain over the next decade and the group firms have committed 70 per cent of planned capex until 2030 to the energy transition, its billionaire chairman Gautam Adani said on Tuesday.Speaking to business leaders on the sidelines of the UK's Global Investment Summit at the London Science Museum, he made a plea for equitable and pragmatic policies in the battle against climate change and recommended setting practical goals and agendas.

Hydrogen, he said, is a game-changer and the group's green energy portfolio will expand to become one of the world's largest green hydrogen producers."Green policies and climate action not based on equitable growth will struggle in the long run," he was quoted as saying in a statement issued by Adani Group.

Decision-makers, he said, must consider the voices of the vulnerable when developing climate strategies and mitigation measures.

He also suggested that a collaborative approach was needed wherein developed nations, which have emitted more greenhouse gases over time, shoulder greater responsibility and propose policies and targets that fairly address the needs of the developing world.

"We are putting money where our mouth is," said Adani, "And the portfolio companies of Adani are leading the way with investment plans."

SABIC, ExxonMobil JV in U.S. preparing for initial startup

Saudi Basic Industries, the world's fourth-biggest petrochemicals firm, said on Sunday its joint venture project with ExxonMobil in the U.S. Gulf Coast has started commissioning activities and preparing for an initial startup.

The project includes the establishment of an ethylene production unit with annual capacity of about 1.8 million tonnes, which will feed two polyethylene units and a monoethylene glycol unit, it said in a statement.

SABIC expects that this project will have a positive impact on its consolidated financial statements after the commercial operation begins.

It supports SABIC's strategy to diversify its feedstock sources and strength its petrochemical manufacturing presence in North America for a wide range of products, it said

Bids for 4,000 MWhr battery storage projects to be invited soon: Power Minister R K Singh

India will soon invite global bids for battery storage projects totalling 4,000 MWhr (megawatt hours), Union Power Minister R K Singh said on Thursday. He made the announcement while addressing the US India Strategic Partnership Forum and industry leaders in a Virtual Energy Industry Roundtable, the Ministry of Power said in a statement.

Singh added that a battery project of 12 gigawatt hours (GWhr) will be set up in Ladakh.

"In the near future, India will have bids to invite global and domestic manufacturers for developing battery storage...India will soon have bids for 4,000 MWhr Battery Energy Storage Systems (BESS)...and later will take up 12 GWhr project in Ladakh," the statement quoted Singh as saying.

India has set an ambitious target of having 175 GW renewable energy (RE) capacity by 2022 and 450 GW by 2030.

At present, India has 100 GW installed solar and wind capacity and after adding hydro, the total installed renewable capacity is 146 MW, he said

Another 63 GW of renewable capacity is under construction, Singh said. The minister also informed the conference that India would be inviting bids for green hydrogen in the next 3-4 months to pave the way for viable usage of hydrogen as fuel

Bids for 4,000 MWhr battery storage projects to be invited soon: Power Minister R K Singh

India will soon invite global bids for battery storage projects totalling 4,000 MWhr (megawatt hours), Union Power Minister R K Singh said on Thursday. He made the announcement while addressing the US India Strategic Partnership Forum and industry leaders in a Virtual Energy Industry Roundtable, the Ministry of Power said in a statement.

Singh added that a battery project of 12 gigawatt hours (GWhr) will be set up in Ladakh.

"In the near future, India will have bids to invite global and domestic manufacturers for developing battery storage...India will soon have bids for 4,000 MWhr Battery Energy Storage Systems (BESS)...and later will take up 12 GWhr project in Ladakh," the statement quoted Singh as saying.

India has set an ambitious target of having 175 GW renewable energy (RE) capacity by 2022 and 450 GW by 2030.

At present, India has 100 GW installed solar and wind capacity and after adding hydro, the total installed renewable capacity is 146 MW, he said

Another 63 GW of renewable capacity is under construction, Singh said. The minister also informed the conference that India would be inviting bids for green hydrogen in the next 3-4 months to pave the way for viable usage of hydrogen as fuel

India's power consumption grows nearly 25% in first week of May

Power consumption in the country grew 25 per cent in the first week of May to 26.24 billion units (BU) over the same period last year, showing consistent recovery in industrial and commercial demand of electricity, according to power ministry data.

Power consumption in the first week of May 2020 was 21.05 BU. The power consumption in the entire month of May last year was 102.08 BU.

On the other hand, peak power demand met, which is the highest supply in a day, during the first week of this month remained well above the highest record of 166.22 GW in May 2020 except on May 2, when it was 161.14 GW.

During the first week of May this year, peak power demand met or the highest supply in a day touched the highest level of 168.78 GW (on May 6, 2021) and recorded a growth of nearly 22 per cent over 138.6 GW (peak met) recorded in the same period in 2020 (on May 7, 2020).

The power consumption in April grew 41 per cent to 119.27 BU..

Power consumption in April 2020 had dropped to 84.55 BU from 110.11 BU in the same month in 2019, mainly because of fewer economic activities following the imposition of lockdown by the government in the last week of March 2020 to contain the spread of deadly COVID-19.

The power consumption also fell in May 2020 to 102.08 BU from 120.02 BU in May 2019.

Similarly, peak power demand met or the highest power supply in a day also slumped to 132.73 GW in April last year from 176.81 GW in the same month in 2019, showing the impact of lockdown on economic activities.

Experts are of the view that high growth in power consumption as well as demand in May this year is mainly due to base effect but the data shows recovery so far even as the second strong wave of COVID-19 forced authorities to impose local lockdowns to contain deadly virus across the country

OPEC's share of Indian oil imports plunges to 2 decade low: Trade sources

OPEC's share of India's oil imports fell to the lowest in at least two decades in the year to the end of March as overall purchases by Asia's third largest economy fell to a six-year low, data obtained from industry and trade sources showed.

Total crude imports by the world's third-biggest oil importer fell to 3.97 million barrels per day (bpd) in the 2021 fiscal year to March 31, down 11.8% from a year earlier, the data showed.

India bought more U.S. and Canadian oil at the expense of that from Africa and the Middle East, reducing purchases from members of the Organization of the Petroleum Exporting Countries to around 2.86 million barrels per day and squeezing the group's share of imports to 72% from around 80% previously.

That is the lowest share since at least the 2001/02 fiscal year, before which crude import data is not available.

India's refiners are diversifying purchases to boost margins, having upgraded plants to process cheaper tougher crude grades, but refinery runs were hit as the pandemic curbed fuel consumption