India’s coal-based power generation recorded its first fall in 29 years in 2019 but the fall was likely a one-off event caused by the combination of a large reduction in demand growth and weather-driven increase in hydro generation while wind and solar also played a role, according to a latest study.
Indian electricity demand grew by only 0.8% in 2019 compared to an average annual increase of 7% per year from 2010 to 2018
After waiting for more than five years, the government may finally throw open the doors of the regulated coal sector for commercial mining by the private sector Indian and overseas miners in the first quarter of fiscal year 2020-21.
Government sources said that draft rules, bid documents and agreements for commercial mining has been prepared and it would be finalised by the end of the month after Cabinet approval with auctions starting soon thereafter.
Northern Coalfields Ltd (NCL), is on track to meet its production and despatch target of 106.25 million tonne each in the current fiscal, an official said. The company has hit 100-million-tonne mark for coal production and despatch each for the current fiscal.
Going by the production and despatch figures, it is expected that the company will achieve targets on or before time, the official said. This comes at a time when Coal India is not expected to meet its 660 million tonne production target for 2019-20 fiscal.
Coal India is upgrading transport facilities at mines as part of efforts to meet its target of producing 1 billion tonnes by 2024.
It has hired Indian Port Rail Corp. (IPRCL) to build rail infrastructure, construct more sidings and improve connectivity with Indian Railways’ main network. The two companies signed a memorandum of understanding on March 5, 2024.
Global carbon dioxide (CO2) emissions from the power sector fell by 2% last year, the biggest fall since at least 1990, owing to reduced coal usage in Europe and the United States, a study showed.
Overall, the decline in coal use last year and shift towards renewables was helped by factors such as cheap gas, nuclear plant restarts in Japan and South Korea and slowing electricity demand, the report said.
Coal India has not commenced supplies from the auction for power companies with electricity sale agreements held last June although the Centre has initiated the process for the next auction.
A Coal India executive said only one of the companies that won the auction had submitted the necessary documents. Industry executives blamed regulatory and procedural delays, which are hurting the already stressed power producers.