The Government of India (GOI) has a long list of achievements in the energy sector. In the context of the coal sector, one of the achievements listed is the increase in coal quality. According to the statement of the GOI, there has been a substantial improvement in conformity to the declared grade of coal supply from Coal India Limited (CIL) and grade conformity has increased from 51 percent in 2017-18 to 69 percent in 2022-23. The improvement in the quality of coal is attributed to the introduction of improved mining technology like surface miners, supply of washed coal, first-mile connectivity for direct conveying of coal on the belt from coal surface/face to rapid loading silo and the installation of auto analysers. The statement of the GOI also notes that all consumers of CIL have the option of quality assessment of the supplies through independent third-party sampling agencies (TPSA). TPSAs ascertain coal quality from loaded coal wagons/lorries as per prescribed norms under Bureau of Indian Standards (BIS) specifications. Apart from the Central Institute of Mining & Fuel Research (CIMFR) and the Quality Council of India (QCI) two more private agencies provide choices for assessing coal quality. The cost of sampling is shared equally by the coal supplier and the TPSA.
In theory, improvement in coal quality should improve efficiency in coal combustion and reduce negative externalities such as pollution. But in practice, accommodation of a variety of technical trade-offs, and economic and political compulsions compromise the pursuit of environmental goals.
With Indian coal, there are two broad concerns over coal quality. The first is the concern over consistency in physical quality such as size and the second is the concern over chemical quality. Both concerns may be addressed by coal beneficiation methods that are interrelated. Beneficiation may be carried out at the mining stage to eliminate stone and shale bands and also by selective mining. Beneficiation can also be continued at the post-mining stage through the separation of stones, crushing, screening, etc. followed by coal washing. The efficiency of beneficiation to improve chemical composition depends on liberation of inert matter which in turn depends on physical quality as it varies with size ranges of coal. In the case of Indian coal, the liberation of inert matter such as ash is not straightforward.
Indian coal is of Gondwana origin and is heterogeneous. These coal deposits are thought to have been transported by water across long distances carrying impurities after which coalification is said to have taken place. Such coals are said to be of ‘drift origin’ and have mineral matter finely disseminated with coal matter causing significant deterioration in quality in the formation stage itself. The mineral matter of which ash is a major part is inherent ash (as opposed to free ash) embedded in the combustible part of the coal and therefore cannot be easily removed. More than 75 percent of Indian coal has ash content of more than 30 percent or higher with some where the ash content is as high as 50 percent. This is high compared to coal traded on the international market where ash share rarely exceeds 15 percent.
High ash content is among the reasons why Indian coal scores poorly on energy content. Most of the coal produced in India is in the range of 3,500–5,000 kcal/kg (kilo calories per kilogram) which is lower than the calorific value of coal found in major countries such as the US, Russia, and China. India’s rank as the world’s third largest coal producer reported in volume terms drops to fifth place after China, the US, Indonesia, and Australia when reported in energy terms.
Source: The Future of Coal, MIT
The intrinsic quality of Indian coal and the dominant practice of open-cast mining has meant that (Run of the Mine) ROM Indian non-coking coal contains a high share of ash and other minerals. ROM coal typically has a high ash content of 30-50 percent and a low calorific value (2500-5000 kilocalories per kilogramme—kcal/kg). In general, high ash content creates problems for coal users that include but are not limited to erosion, difficulty in pulverisation, poor emissivity and flame temperature, low radiative transfer, and generation of excessive amounts of fly ash containing large amounts of unburnt carbon. In addition, the transport of ROM coal across long distances is wasteful as it carries large quantities of ash-forming minerals that result in shortages of rail and port capacity. The transport of high ash coal across long distances also contributes to the emission of carbon dioxide (CO2) and other greenhouse gases (GHG) from the mode of transport (rail and road).
The average gross calorific value (GCV) of coal supplied to power plants in India declined from about 5,900 kcal/kg in the 1950s to just over 3,500 kcal/kg in the 2000s. Since the 2000s production of high and mid-energy coal (more than 4,200 kcal/Kg) has stagnated in India while the production of low-energy coal (less than 4200 kcal/kg) has more than doubled. This means that 1.5 tonnes of Indian coal have to be mined to get the same energy content as 1 tonne of Australian coal. Some improvement in the quality of coal mining in India is expected by 2040 on account of a marginal increase in the share of coal from under-ground mines but coal quality is assumed to remain a problem for India in the next two decades. The focus on ‘easy-to-mine’ coal from shallower depths that contributed to the decline in coal quality is expected to sustain the trend of decreasing energy content per tonne of coal production in India.
In theory, upgrading coal quality (beneficiation) is expected to offer benefits at two levels. One is the possible short-term benefit of reduction in polluting emissions that result from using upgraded coals in existing power plant boilers. The other is the longer-term benefit arising from the use of advanced clean coal technologies which may demand the use of upgraded coal by design in order to realize their potential for increased thermal efficiency. There are other process implications of coal upgrading, but they are mainly second-order effects. For example, reducing the ash content of coal may make it easier to grind, so that the energy used in the mills is reduced. The amount of pyrite present is also likely to be reduced in washed coal.
Beneficiation is also expected to improve overall plant operations that directly affect the profitability of a coal plant over the long term and also improve its ability to avoid environmental penalties and disputes. It could also potentially improve the life of emission control devices. Most of the ash present in coal travels through the combustion process and is captured by emission control devices such as electrostatic precipitators. Washed coal use reduces the amount of ash produced and collected by these devices and extends their useful lives. Power plants that use coal of higher quality have a performance advantage over lower-quality coal. In general, the higher the ash content of coal, the lower the heating value of coal per unit weight of coal. When the percentage of ash content is reduced, the heating value of coal is increased and so less coal can be burnt to produce a given quality of electricity. When low ash, plant operators can reduce scheduled and unscheduled maintenance required to remove ash collection. Lower ash coal can also reduce corrosion on plant ductwork which reduces plant life. If power-generating plants are designed to burn one type of coal, then they must continue to be supplied with a similar coal or undergo an extensive and costly redesign to adapt to a different type of coal.
Low ash coal can potentially reduce damage to all coal handling equipment such as such as conveyors, pulverisers, crushers and storage. The use of higher ash coals increases the load on the plant which increases the quantity of plant site energy needed to operate the plant which reduces the energy available for power generation. This increases plant operating costs and decreases its profit potential.
Main emissions from coal and lignite-based thermal power plants in India are CO2, Oxides of Nitrogen (NOX) and oxides of sulphur (SOX) and air-borne inorganic particles such as fly ash, carbonaceous material (soot), suspended particulate matter (SPM) and other trace gas species. Thermal power plants are among the large point sources (LPS) accounting for 50 percent of CO2 and SOX and about 20 percent of NOX. Coal beneficiation has the potential to reduce the level of these emissions.
Until 2020, government policies favoured the beneficiation of coal. In 1988, the Planning Commission constituted the Ronghe Committee to study the issue of washing coal. The committee concluded that washing would be cost-effective only if coal is transported over a distance of 1,000 km (kilometres) when the cost of beneficiation would more or less get neutralised by saving in the cost of transportation of additional ash in coal. Coal washing was opened to the private sector but the 10th plan (2002-2007) noted that the results were mixed and concluded that ‘washeries were uneconomical’ and that there were no takers. The 11th plan (2007-12) identified coal beneficiation as one of the prime clean coal technologies. It observed that coal washing would ensure consistent fuel supply to conventional Pulverised Coal Combustion (PCC) boilers and improve efficiency by 1 percent. It further noted that ‘perfect’ growth on coal washing would be realised if the suggestion to price coal on a fully variable gross calorific value Basis (GCV) was implemented as it would provide the right incentive to both the producer and consumer to improve the quality of coal. It cautioned that an increase in washing capacity would consequently increase the demand for raw coal unless fines were used productively. In the early, 2000s some of the coking coal washeries converted to non-coking coal washeries anticipating the enforcement of the Ministry of Environment & Forests (MOEF&CC) directive notified in 1998 mandating the use of coal containing not more than 34 percent ash in power stations located 1,000 km from pitheads and those located in urban/sensitive/critically polluted areas effective from June 2001. In addition, all new coal plants were mandated to use supercritical technology and existing plants were assigned mandatory efficiency targets which will require the use of higher quality coal.
In 2020 the government rolled back the directive on transport of unwashed coal. The revised directive stated that the Ministry of Power had argued against coal washing on the basis of the following outcomes (i) washing of coal reduces ash content only marginally (ii) washery rejects find their way into the market for use in industries that cause pollution (iii) high cost of washing, cost transport of unwashed & washed coal and the cost of loading and unloading coal that result in higher power tariff (iv) pollution caused by the process of washing (v) competition from imported coal especially in the case of coastal power plants (vi) loss of calorific value in washing (vii) advance in technologies that allow pollution control at the smoke stack. For its part, the Ministry of Coal (MOC) has also submitted that (i) the quality of raw coal supply had improved substantially (ii) the use of raw coal reduces energy charge rate (ii) the use of supercritical technology can use unwashed coal efficiently (iii) washing localises pollution. In addition, the MOEF&CC also cited a NITI Aayog report commissioned for the purpose that reiterated most of the observations of the MOC and the Ministry of Power (MOP) with the additional comments that (i) environmental benefit of washing is marginal (ii) ash generated by power plants is more useful than ash generated by coal washeries (iii) no environmental rationale for fixing 500 km limit for using unwashed coal (iv) the 500 km limit offers undue price advantage for power plants that are within the limit.
One of the most important but not explicitly stated messages in the observations of the MOC, MOP, NITI Aayog and the MOEF&CC is that the costs of improving the quality of coal cannot be passed on to the consumer (electricity ratepayer). This highlights one of the dilemmas of producing environmental goods such as clean air in India. The use of higher quality coal produces an environmental public good in the longer term while the costs are immediate and private. This raises an important question: Should the cost of increasing coal quality be publicly funded?
Another issue that may be debated in the context of the changing narratives over cleaning coal is whether there are interests other than efficiency and environmental sustainability in increasing the quality of coal. When MOEF&CC was in favour of regulating the production of clean coal, there was thrust on imported coal from newly constructed private power generators. Mandating the use of clean coal served the interests of importers. It also served the interests of private washeries that could potentially divert coal supply to users that did not have formal coal supply linkages with CIL. The position has now reversed. Pollution control technologies have shifted from mines to power plants. Though self-reliance and energy security have become dominant interests subordinating environmental concerns, the commercial interests of all players in the value chain have also contributed to changing the dominant narrative on cleaning coal.
Source: The Future of Coal, MIT
RE Policy and Market Trends
According to the Ministry of New & Renewable Energy (MNRE) data, India added a record renewable energy capacity of 18.48 GW in 2023-24, which is over 21 percent higher than 15.27 GW a year ago. However, as per industry experts, there is a need to add at least 50 GW of renewable energy capacity annually for the next six years to meet the ambitious target of 500 GW of renewables by 2030. According to the data, India’s installed renewable energy capacity is 143.64 GW as of 31 March 2024, excluding 47 GW of large hydropower capacity (each plant is more than 25 GW or above). The data showed that solar installations of 12.78 GW led to the renewable energy capacity addition of 15.27 GW in 2023-24, followed by 2.27 GW of wind energy. Among the states, Gujarat and Rajasthan have the largest renewable energy capacities of about 27GW each, followed by Tamil Nadu at about 22 GW, Karnataka at about 21 GW and Maharashtra at about 17 GW. Himachal Pradesh and Andhra Pradesh have installed renewable energy capacity of about 11 GW each.
Karnataka and Gujarat have surpassed Maharashtra for effective integration of renewable energy sources in the power sector, thereby showcasing strong strides in decarbonisation. Maharashtra, on the other hand, missed out on being a top performer due to a "low share in renewable energy consumption" among other factors, revealed the latest report released by the Institute for Energy Economics and Financial Analysis (IEEFA) and Ember. Maharashtra was a top performer in the 'Market Enablers' dimension, indicating that it is setting the stage for accelerated progress towards the electricity transition. It also had a green tariff rate of 66 paise per unit (kWh) for electricity consumers.
According to India’s Mahindra Group, it will invest INR12 billion (bn) (US$144 million (mn)) to set up solar and wind energy projects of 150 megawatt (MW) hybrid capacity in India. The projects will be developed by the group’s renewable energy unit Mahindra Susten with the Ontario Teachers' Pension Plan Board, one of Canada’s largest pension funds, as its strategic partner. Mahindra & Mahindra will acquire a 26 percent stake in its solar power generating unit Gelos Solren for US$4.8 mn, taking the combined investment to nearly US$150 mn. India, the world’s third-largest greenhouse gas emitter, is currently trying to boost its non-fossil capacity, including solar and wind energy, to 500 gigawatt (GW) by 2030 after missing its target to install 175 GW of renewable capacity by 2022. The Mahindra Group aims to adopt 100 percent renewable energy by 2030. As per its 2022-23 annual report, wind power was used for nearly two-thirds of Mahindra & Mahindra’s power needs.
ReNew has completed the construction of 1.94 GW of RE assets in FY24, taking the cumulative capacity set up by the company to over 10 GW. Accounting for assets sold, ReNew’s revenue-generating capacity stands at 9.52 GW as of 31 March 2024. The Nasdaq-listed firm added 1,174 MW of solar in the last financial year. ReNew added 768 MW of wind energy capacity in FY24, which is one of the highest capacity additions among all companies in India, in a single year. It also has India’s largest wind portfolio of 4.7 GW, representing 10.5 percent of India’s total wind energy capacity. Last fiscal year, ReNew contributed around 10 percent of India’s total solar and wind energy generation. In FY24, it won auctions to supply 4.8 GW (PPA) renewable energy (RE) capacity, accounting for 10.1 percent of the total capacity for which tenders were concluded during the year. Looking ahead, this would enable it to double RE assets to 20 GW by 2027-28. With a capacity close to 10 GW, ReNew will generate 21 billion units (BU) of clean electricity, enough to power 5.9 million households and avoid 17 million tonnes (MT) of CO2 emissions annually. During the past seven years, ReNew helped avoid around 72 MT of carbon emissions. The company started its operations with a 25 MW wind project in Gujarat and entered the solar energy space in 2014. ReNew became the first clean energy firm to cross operating capacity of 1 GW in 2016 and doubled it the next year. In 2019, it became the first Indian renewable energy company to achieve the 5 GW milestone.
Adani Group will invest about INR2.3k bn (US$27.6 bn) through 2030 in India’s most ambitious renewable energy expansion and solar and wind manufacturing capacity addition ever as it shrugs off a short-seller attack to pursue its trademark rapid growth plans. Adani Green Energy Ltd, India’s largest renewable energy company, will invest about INR1.5k bn (US$18 bn) in expanding capacity to generate electricity from solar energy and wind power at Khavda in Gujarat's Kutch to 30 GW from 2 GW currently and another INR500 bn in 6-7 GW of similar projects elsewhere in the country, the company said. Adani New Industries Ltd (ANIL), a unit in the group's flagship Adani Enterprises Ltd, will invest close to INR300 bn in expanding solar cell and wind turbine manufacturing capacity at Mundra in Gujarat.
Torrent Power has received a letter of award from its 'Distribution Unit' for setting up a 150 MW wind solar hybrid project with an investment of INR18.25 bn (US$218.95 mn). The renewable energy project will supply power at a tariff of INR3.65 per kWh. The project will be commissioned within 24 months from the signing of Power Purchase Agreement (PPA). The contract for supply of power will be 25 years from the commissioning of the project. The annual CUF (capacity utilisation factor) will not be less than 50 percent for any year during the term of the PPA and rated power capacity of wind and solar will be in the ratio of 2:1. To meet the 50 percent CUF requirement, the company plans to install 245 MW of wind and solar capacity projects against a contracted capacity of 150 MW.
Roof Top /Distributed Solar Projects
Varanasi is leading in energy and environmental conservation initiatives in Uttar Pradesh (UP). Government’s endeavour to transform Varanasi into a solar city is gaining momentum and promising significant savings in both electricity and finances while prioritizing environmental protection. Under ‘Har Ghar Solar Yojana’, over 28,000 registrations for solar rooftop grid systems have been done in just 2.5 months, surpassing the targeted 25,000 connections.
Utility Scale Solar Projects
Amara Raja Infra Pvt Ltd has secured a 700 MWp (megawatt peak) solar project from Greenko in Andhra Pradesh. With the latest win, the order book of Amara Raja Infra Private Limited (ARIPL) stands at INR15.16 bn (US$181.3 mn) at the end of FY24. The project spans across an area of 2,200 acre site near Uyyalavada Town in Kurnool district of Andhra Pradesh. The work includes Engineering, Procurement and Construction (EPC) of the entire balance of system (BoS) for the 700 MWp project, which is part of Greenko's Integrated Renewable Energy Project.
Avaada Energy closed a refinancing deal of INR44.7 bn (US$536.3 mn) with National Bank for Financing Infrastructure and Development (NaBFID) for its four solar projects in Rajasthan. This refinancing transaction, conducted under Restricted Group (RG) structure, encompasses four inter-state transmission system-connected solar projects with a combined capacity of 1,700 MWp. Avaada Group has been engaged in renewable energy generation, solar PV (photovoltaic) manufacturing, development of green fuels such as green ammonia, green methanol and sustainable aviation fuel, and providing energy storage solutions.
TP Saurya (TPSL), a subsidiary of Tata Power Renewable Energy (TPREL), announced the successful commissioning of a 200 MW solar project located in Bikaner, Rajasthan, for Tata Power Trading Company, a subsidiary of Tata Power Company. Expected to generate an impressive 485 MU of energy annually, the project aligns with the Company's mission to drive substantial contributions to India’s renewable energy capacity.
Adani Solar Energy RJ Two, wholly-owned stepdown subsidiary of Adani Green Energy (AGEL) has operationalized 180 MW of solar power project at Devikot in Jaisalmer, Rajasthan. With operationalization of this plant, AGEL’s total operational renewable generation capacity has increased to 9,784 MW, in its journey of 45 GW capacity by 2030.
Hydro Power
Hydroelectric power projects with an aggregate capacity of 15 GW are under construction in India, which will increase the hydro capacity by more than 50 percent from 42 GW to 67 GW by 2031-32, as announced by the power ministry. Moreover, the development of pumped storage projects (PSPs) will help balance power to the grid. PSPs which is an ideal complement to modern clean energy systems. It is projected that PSP capacity will increase from 4.7 GW to around 55 GW by 2031-32.
India's hydroelectricity output fell at the steepest pace in at least 38 years during the year ended 31 March, an analysis of government data showed, as erratic rainfall forced further dependence on coal-fired power amid higher demand. The 16.3 percent drop in generation from India’s biggest clean energy source coincided with the share of renewables in power generation sliding for the first time since Prime Minister Narendra Modi made commitments to boost solar and wind capacity at the United Nations climate talks at Paris in 2015. Renewables accounted for 11.7 percent of India’s power output in the year that ended in March, down from 11.8 percent a year earlier, an analysis of daily load despatch data from the federal grid regulator Grid-India showed. India is the world’s third-largest greenhouse gas emitter, and the government often points to lower per-capita emissions compared to developed nations to defend rising coal use. Hydropower’s share in India’s total power output fell to a record low of 8.3 percent during the fiscal year ended 31 March, Grid-India data showed, compared with an average of 12.3 percent in the 10 years through 2020. India missed a 2022 target to install 175 gigawatt (GW) of renewable energy, and remains 38.4 GW short of that goal, with Grid-India data showing India's dependence on fossil fuel for power hit a five-year high of 77.2 percent in 2023/24. India’s addition of renewables slowed to a five-year low in 2023. Hydro output in India, the sixth-biggest hydropower producer, fell nearly seven times faster than the global average.
Wind Power
Wind energy solutions provider Inox Wind has secured a repeat order for 210 MW for its 3 MW wind turbine generators from Hero Future Energies (HFE). Additionally, Inox Wind will also provide post-commissioning multi-year Operations & Maintenance (O&M) services. The order is for (IWL) Inox Wind Ltd's state-of-the-art 3 MW Wind Turbine Generators (WTGs), and the scope comprises equipment supply with certain add-on services.
Delhi-NCR based Juniper Green Energy announced commissioning of 25.2 MW capacity of its 70 MW wind power project. The project has been commissioned almost nine months before the scheduled commercial date of operation. The operational 25.2 MW is part of the project's progressive rollout and the project is expected to produce around 230 MU of electricity per year, aiding in Gujarat’s renewable energy efforts and reducing carbon emissions by an estimated 2,13,055 tonnes annually. The initiative will supply power to about 45,440 households, showcasing Juniper Green Energy’s role in promoting renewable energy adoption. Juniper Green Energy is an independent renewable energy power producer and operator of solar, wind and hybrid power projects.
Biomass/Bio-Power/Waste to Energy
Adani TotalEnergies Biomass Ltd (ATBL), a wholly-owned subsidiary of Adani Total Gas Ltd (ATGL), has commissioned operations at Phase 1 of its Barsana Biogas Plant, located at Mathura in Uttar Pradesh (UP). The Barsana Biogas Project would attain overall capacity of 600 tons per day (TPD) of feedstock, generating over 42 TPD of CBG and 217 TPD of organic fertiliser upon full commissioning. The company claimed that the plant will be India’s largest agri waste-based bio CNG plant after reaching full design capacity at Phase 3.
North & South America
Florida-based NextEra Energy added some 2,765 MW of wind, solar and battery storage projects in the first three months of this year, marking its second-best quarter for growth in its renewables division. NextEra, which includes renewables business NextEra Energy Resources and regulated electric utility Florida Power & Light (FPL), said its project backlog now stands at roughly 21.5 GW, up from nearly 20 GW at the end of 2023. Florida-based NextEra, the world’s largest renewables company, has benefited from federal and state clean energy incentives along with rising US (United States) power demand, which is projected to grow at an unprecedented rate in some of the country’s regions through 2030 after a roughly two-decade lull.
Drops in power generation from wind farms, hydro dams and nuclear reactors has forced the operator of the electric grid in Texas - one of the largest power systems in the US - to boost fossil fuel use and emissions so far this year. Rising use of air conditioners due to high temperatures have boosted power use and spurred the Electric Reliability Council of Texas (ERCOT) to ask electricity generators to delay or cancel planned outages. But tight supplies of clean power have meant that ERCOT system managers have been forced to crank generation from fossil fuels to balance system needs. Through mid-April, ERCOT has lifted coal-fired power generation by 5 percent from the same period in 2023, and natural gas output by 12 percent.
The Biden administration said the US had surpassed a goal of permitting more than 25 GW of clean energy projects on public lands by 2025 and finalized a plan to slash project fees for wind and solar energy on federal acreage. The announcement marks the latest effort by the administration of President Joe Biden to leverage the nation’s 250 million acres of federal land to reach his goal of decarbonizing the US power grid by 2035. The permitted projects also appeared to satisfy a Congressional mandate from 2020 that the Interior Department permit at least 25 GW of renewable energy by 2025. The Interior Department has permitted nearly 29 GW of clean energy on public lands - enough to power more than 12 million homes. The Bureau of Land Management, which manages 250 million acres of federal lands, has permitted more than 7 GW of projects since 2021. The agency is processing permits for an additional 32 GW of renewable energy. The finalized Renewable Energy Rule will reduce fees for solar and wind projects on federal lands by 80 percent while streamlining the application process.
The company that owns New Jersey’s three nuclear power plants will seek federal approval to operate them for another 20 years. The move comes as New Jersey makes a strong push to become the East Coast leader in offshore wind. But the three power plants run by PSEG Nuclear LLC provide nearly half of New Jersey’s electricity, and a licensing extension represents a potential hedge against not enough wind projects being available to meet the state’s needs. The company has notified the US Nuclear Regulatory Commission of its intent to seek renewed licenses for the Salem Generating Station Units 1 and 2, and the Hope Creek Generating Station. All are located on one site on Artificial Island in Lower Alloways Creek Township, Salem County. Beginning this year, a nuclear production tax credit included in the federal Inflation Reduction Act will provide nuclear generators with nine years of financial support through 2032.
Transpetro, the logistics arm of Brazil’s oil firm is analyzing projects to supply all its 48 terminals with renewable energy, the subsidiary’s director of ducts and terminals Marcio Guimaraes said, ahead of the inauguration of a solar plant in Sao Paulo state. The plant, set to be operated by Transpetro, will supply enough energy to Brazil’s national grid to account for all operations at Transpetro’s terminal in Guarulhos International Airport, said Guimaraes. Petrobras has put a big bet on renewables as part of its plan to shift from an oil company to an energy firm, in line with President Luiz Inacio Lula da Silva’s wish to kickstart Brazil’s energy transition.
EU
Wind farms have been the primary source of electricity in the United Kingdom (UK) for the past two consecutive quarters, marking the longest stretch on record that renewable energy has surpassed fossil fuels in UK electricity generation. Total electricity generation from wind sources during the first three months of 2024 was 25.3 terawatt hours (TWh), compared to 23.6 TWh from all fossil fuel sources, according to data from energy think tank Ember. Wind power accounted for an average of 39.4 percent of total electricity during the first quarter of 2024, compared to 36.2 percent from fossil fuels. Wind output also exceeded fossil fuel-powered output during the final quarter of 2023, marking the first time that wind power has generated more electricity than fossil fuel plants in the UK for consecutive quarters. When combined with output from solar farms, total electricity output from renewable sources in the UK was 27.1 TWh during Q1 2024, the highest quarterly total ever for the UK and a record 42.2% share of total electricity generation.
European Union (EU) lawmakers adopted a law to place methane emission limits on Europe’s oil and gas imports from 2030, pressuring international suppliers to clamp down on leaks of the potent greenhouse gas. Methane, the main component of natural gas, is the second-biggest cause of climate change after carbon dioxide and in the short term has a far higher warming effect. Rapid cuts in methane emissions this decade are crucial if the world is to avoid severe climate change. The import rules - which will impose limits on "methane intensity values" from 2030 on producers sending fossil fuels into the EU - are likely to hit major gas suppliers which include the United States, Algeria and Russia.
The EU has opened two investigations into whether two Chinese bidders benefited excessively from subsidies in their offers in a public tender for a solar power park in Romania, the European Commission said. The first investigated consortium is composed of Romania’s ENEVO Group and a subsidiary of LONGi Green Energy Technology Co. The second involves subsidiaries of Chinese state-owned Shanghai Electric Group Co. The China Chamber of Commerce to the EU said it was gravely concerned by the investigations and said the regulation was seriously distorting the level playing field for Chinese companies operating in the EU.
Africa & Middle East
Ivory Coast officially opened a 37.5 MW solar power plant in what the government said was the first step of a plan to integrate more renewable energy into the power sector. Ivory Coast, the world’s top cocoa producer, is seeking to become a major power supplier in West Africa. It produces most of its roughly 2,250 MW of power from oil and gas and already exports electricity to Ghana, Burkina Faso, Benin, Togo and Mali. By 2030, the country wants 45 percent of its energy mix to consist of renewable energy. Ivory Coast will have added 678 MW from solar power plants projects to its power network by 2030.
China
China has a unique opportunity to drive forward an energy revolution in Africa, but it must first reverse nearly two decades of neglect of green power investments there, research from Boston University showed. Three years ago, China’s President Xi Jinping said the country would not build new coal-fired power projects abroad, pledging to deal with climate change by supporting the development of green and low-carbon energy. Although Africa’s green energy potential is one of the highest in the world, Chinese lending and investment has so far provided relatively little support for the continent’s energy transition, according to a report from Boston University’s Global Development Policy Center and the African Economic Research Consortium. Lending for renewables, such as solar and wind, from China's two main development finance institutions constituted just 2 percent of their US$52 bn of energy loans from 2000 to 2022, while more than 50 percent is allocated to fossil fuels.
Other Asia Pacific
Australia will set up an A$1 bn (US$653 mn) fund to help expand solar panel manufacturing at home, Prime Minister Anthony Albanese said, as it looks to ramp up its transition to renewable energy from coal power. Albanese’s centre-left Labor government has been boosting spending to underwrite new wind, solar and battery projects with more than A$40 bn of investment committed since coming to power in 2022. The government is targeting 82 percent renewable power by 2030 in the energy grid from around 40 percent now. One in three Australian homes have installed roof solar panels, the highest uptake in the world, but only 1 percent of those are manufactured in the country.
30 April: India’s net oil import bill could widen to US$101-104 billion in current fiscal from US$96.1 billion in 2023-24 and any escalation in the Iran-Israel conflict could impart an upward pressure on the value of imports, ICRA said. As per ICRA’s calculations, a US$10 per barrel uptick in the average crude oil price for this fiscal pushes up the net oil imports by US$12-13 billion during the year, thereby enlarging the current account deficit (CAD) by 0.3 percent of GDP. Accordingly, if the average crude oil price rises to USD 95/barrel in FY2025, then the CAD is likely to widen to 1.5 percent of GDP from ICRA’s current estimate of 1.2 percent of GDP for 2024-25. CAD, which is the difference between value of India's imports and exports, is estimated at 0.8 percent in 2023-24. India is more than 85 percent dependent on imports for its needs of crude oil, which is converted into fuels such as petrol and diesel at refineries. ICRA said the value of India’s imports of petroleum crude and products declined by 15.2 percent YoY during April-February of last fiscal, even as volumes rose slightly in this period.
29 April: Chennai Petroleum Corp Ltd will build a 180,000 barrels per day (bpd) refinery at Nagapattinam in Southern Tamil Nadu State by the end of 2027, two years later than initially planned. India, the world's third biggest oil consumer and producer, is expanding its refining capacity as it is expected to be the largest driver of global oil demand growth between 2023 and 2030, according to the International Energy Agency. Chennai Petroleum initially planned to complete the refinery by the end of 2025. The company recently changed the capital structure of the joint venture building the project, with its parent company Indian Oil Corp (IOC) controlling a 75 percent stake and Chennai Petroleum the remainder. Chennai Petroleum operates the 210,000 bpd Manali refinery at Chennai in southern Tamil Nadu state.
25 April: Russia continued to remain the largest supplier of crude oil to India in February with US$3.61 billion worth of supplies, although with a 19 percent drop from the previous month. In January, India imported oil worth US$4.47 billion crude oil from Russia. Russia has been the largest source of crude for India since its invasion of Ukraine in February 2022 sparked western sanctions, prompting it offer deep discounts. India and China have been the biggest beneficiaries of the discounts, which stood at over US$30 per barrel in 2022 but have shrunk over the past year to less than US$5 per barrel. Data from the ministry of commerce and industry showed that oil supplies from Saudi Arabia jumped 67.5 percent to US$2.6 billion taking it to the second position in the list of oil suppliers to India, from US$1.55 billion in January. For most part of the past two years, Iraq has been the second largest supplier to India. It has now slid to the third position with US$2.24 billion worth of supplies in February, 11.6 percent down from US$2.54 billion in January. India’s oil import bill in February 2024 stood at US$13.25 billion, about 10 percent higher from US$12.04 billion in January.
29 April: Natural gas consumption in India is expected to grow by 7 percent y-o-y (year on year) to 64.35 billion cubic meters (BCM) in the current calendar year aided by lower prices and rising demand from power and industrial sectors. According to the International Energy Agency (IEA), India is expected to see an increase in LNG (liquefied natural gas) imports due to the decline in spot LNG prices in 2024. However, this growth could be tempered by the increase in domestic gas production from ONGC’s Krishna-Godavari field. During October 2023-February 2024, India’s cumulative natural gas consumption rose by 17 percent y-o-y to 28.12 BCM. In the 2023 calendar year, the consumption stood at 60.12 BCM. The world’s fourth largest importer of LNG consumed 66.63 BCM natural gas in FY24, compared to 59.97 BCM and 64.16 BCM in FY23 and FY22, respectively. Lower natural gas prices continued to stimulate gas demand in India, with gas use in industry rising by an impressive 15 percent y-o-y during the October 2023-February 2024 period, the IEA said. According to the Petroleum Planning & Analysis Cell (PPAC), India’s primary natural gas supply (including net domestic production and LNG imports) increased by 16 percent y-o-y between October, 2023 and February, 2024. This strong growth in supply reflects growing demand for natural gas across all sectors, it said. India imported 30.92 BCM of LNG in FY24, compared to 26.30 BCM and 31.03 BCM in FY23 and FY22, respectively. Production in the last financial year stood at 35.72 BCM as against 33.66 BCM and 33.13 BCM in FY23 and FY22, respectively.
24 April: Reliance Industries Ltd (RIL) has received government approval for making additional investment towards developing gas reserves in its KG-D6 block in the Bay of Bengal. This can augment capacity with four to five million standard cubic metres per day (mscmd) adding to the production. RIL and its partner BP currently produce around 30 mmscmd or about 30 percent of India’s gas production, from the KG-D6 block. RIL-BP produces 30 mmscmd of gas from three sets of discoveries in the deep-sea KG-DWN-98/3 or KG-D6 block. Also, of the increase in production, KG-D6 production is almost 90 percent of the incremental domestic gas production. KG-D6 has aided the domestic production of natural gas, which is used to generate electricity, convert into CNG to assist automobiles or piped gas for cooking, touching a multi-year high of 99 mmscmd. RIL is the operator of the KG-D6 block with a 66.67 percent stake and BP holds the remaining 33.33 percent. Reliance has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3, were brought into production in April 2009.
26 April: Thermal power plants (TPPs), running on foreign coal, imported a record 41.81 million tonnes (MT) in the last financial year, ending March 2024, hitting a four year high following government’s mandate to run units at full capacity till 15 October to meet India’s rising electricity consumption. The power ministry data shows that imported-coal based (ICB) procured 41.81 MT of foreign coal, a whopping 104 percent growth y-o-y (year on year) from 20.53 MT in FY23. The installed capacity of ICB plants is around 25 gigawatt (GW), of which operational is around 18 GW. In-bound shipments by ICB plants in FY24 is the second highest so far. Before this, such plants procured a record 45.5 mt coal from foreign countries such as South Africa and Indonesia in FY20. Companies such as Tata Power, Adani Power, Essar, Shree Cement and JSW Energy are operating ICB (imported-coal based) plants. Earlier this month, the ministry directed ICB power plants to continue operating at full capacity till October 15, 2024 in anticipation of rising power demand, which grew at around 8 percent y-o-y in FY24. The price of imported coal is higher compared to domestic, leading to higher tariffs. However, operating under Section 11 allows for the variable cost to be passed through, providing relief to operators. As on 25 April, the 17 operational ICB plants with 17.97 GW capacity have coal stocks 1.97 MT with a daily requirement of 1.84 lakh tonnes.
30 April: As Kerala has been experiencing relentless heat for the past few weeks, power consumption in the state has shot up considerably, prompting the state government to urge residents to exercise control when using electricity. Kerala Electricity Minister K Krishnankutty said that power cuts are occurring more often at night in the state due to technical issues arising in the substations as a result of the increased consumption. He said that if people exercise restraint, then there will be no need for the Kerala State Electricity Board (KSEB) to go for load shedding. The Minister was responding to queries regarding protests in some parts of the state by the public against hours of power cuts late at night and a lack of any response by KSEB officials on how soon the problem would be rectified.
26 April: India expects power generation to grow 9.3 percent to 1,900 billion kilowatt hours (kWh) during the fiscal year through March 2025, internal projections by the federal power ministry reviewed, the fastest pace of growth since at least 2011/12. Searing heatwaves and an uptick in economic activity have resulted in India’s electricity generation growing at an average of about 8 percent annually following the pandemic year of 2020/21, outpacing power demand growth in every major global economy. India’s weather office has forecast more heat-wave days than normal between April and June this year, potentially boosting power use and generation further.
30 April: Renewable energy giant, NHPC Limited, has signed a Memorandum of Understanding (MoU) with Ocean Sun, a Norwegian company, to explore the potential of floating solar energy technology in India. As per the agreement, the technology developers will work together to demonstrate Ocean Sun’s floating solar energy technology based on photovoltaic panels mounted on hydro-elastic membranes. The solar panels will be installed at relevant sites in India that will be identified by NHPC. The deal is in line with NHPC’s mission of promoting sustainable development and addition of renewable energy capacity. The company is also engaged in other renewable energy projects such as solar, wind, and green hydrogen.
29 April: Kundan Green Energy said it has secured approvals for setting up a 42 megawatt (MW) hydropower project at Okhali in Uttarakhand. The Okhali project is part of an agreement with the Uttarakhand government signed last year to develop a total of 80 MW greenfield hydropower capacity in the state at an investment of INR10 billion, Kundan Green Energy said. The project will be completed by 2028. Once commissioned, the Okhali project will take the combined hydropower capacities of the company to 270 MW from the present 104 MW (megawatt).
26 April: CESC Ltd said one of its step-down subsidiaries has completed the acquisition of a company that is in the process of implementing a 300 megawatt (MW) solar park in Rajasthan. The acquisition aims at bolstering the renewable energy portfolio of the power utility. CESC said Purvah Green Power has completed the acquisition of the 100 percent stake in Bhadla Three SKP Green Ventures at a consideration of INR38.4 million. The power utility said that the acquired company is developing a solar park with a capacity of 300 MW in Phalodi district of Rajasthan, and its operations are entirely based in India. The RP-Sanjiv Goenka group’s flagship company had earlier expressed its intention to acquire over 50,000 acres in Rajasthan and Gujarat to build its 3 gigawatt (GW) hybrid renewable energy portfolio. The company was exploring possibilities for substantial investments in renewable energy generation of up to 3 GW in a hybrid portfolio through its subsidiaries in multiple states across the country.
24 April: REC Ltd said it will provide a term loan of INR18.69 billion for 624 MW Kiru Hydro Electric Project in Kishtwar, Jammu & Kashmir. The loan will be utilized for development, construction and operation of the project on River Chenab. The project envisages construction of a 135-metre high dam and an underground power house with 4 units of 156 MW each. CVPPPL is a joint venture between NHPC (51 percent) and JKSPDC (49 percent). The company was incorporated in 2011.
24 April: Gruner Renewable Energy said that it has bagged multiple projects worth INR15 billion for compressed biogas (CBG) plants across the country, within the first year of its incorporation. The firm will develop CBG plants, which will collectively contribute to an annual production of over 88,000 tonnes of compressed biogas for the Indian market, it said. The projects are strategically located across various cities, including Ayodhya (Uttar Pradesh), Satna (Madhya Pradesh), Balasore (Orissa), Navsari (Gujarat), Yavatmal (Maharashtra), Vijayawada, and Rajahmundry (Andhra Pradesh), and others. This strategic initiative underscores the company’s dedication to driving growth and innovation in the renewable energy landscape while contributing significantly to India’s sustainable development goals.
24 April: Technology advances are making it possible for US (United States) shale oil and gas companies to reverse years of productivity declines, but the related requirement to frontload costs by drilling many more wells is deterring some companies from doing so. While overall output is at record levels, the amount of oil recovered per foot drilled in the Permian Basin of Texas, the main US shale formation, fell 15 percent from 2020 to 2023, putting it on par with a decade ago, according to energy researcher Enverus. But new oilfield innovations, which began being implemented more widely last year, have made it possible for fracking to be faster, less expensive and higher yielding.
24 April: Oil companies are flocking to Namibia, excited by the country’s plans to open up a major new frontier basin with recent offshore finds ranking among the largest this century. Namibia, which has yet to produce any oil or gas, has become an exploration hotspot after offshore discoveries by TotalEnergies and Shell and wants to accelerate the milestone of the country’s first output. The southern African country is planning for its first oil production from TotalEnergies' giant Venus field in 2029/2030, its petroleum commissioner Maggy Shino said. In the most recent strike, Portugal’s Galp Energia said it had found at least 10 billion barrels of oil equivalent in its Mopane field, in the largely unexplored Orange Basin.
25 April: LNG Energy Group Corp said it has won two contracts to develop hydrocarbons in Venezuela covering five producing fields. The contracts were signed just a day before the expiry of a reprieve for oil and gas activities issued by Washington to Caracas, based on a press release by LNG Energy Group announcing the awards. LNG Venezuela will provide the required investment to further develop the fields and conduct operations and has 120 business days from the date of signing to satisfy the required contractual conditions precedent in order to be awarded the CPPs (Productive Participation Contracts) and initiate operations, LNG Energy Group said. The deal gives it a 50–56 percent share of production.
25 April: Norwegian energy company Equinor posted a sharp fall in first-quarter profit, hit by tumbling natural gas prices in Europe, though strong energy trading and rising output limited the decline. The Norwegian oil and gas producer’s adjusted earnings before tax for January-March fell almost 37 percent to US$7.53 billion but beat the US$7.2 billion forecast in a poll of 22 analysts compiled by Equinor. The company overtook Russia’s Gazprom as Europe’s biggest supplier of natural gas in 2022 when Moscow’s invasion of Ukraine upended decades-long energy ties.
25 April: The European Commission’s next sanctions package is expected to propose restrictions on Russian liquefied natural gas (LNG) for the first time, including a ban on trans-shipments in the EU (European Union) and measures on three Russian LNG projects. The proposal would not ban imports of Russian LNG to Europe, but instead target trans-shipments, which move LNG from one vessel to another that then sails onto its final destination. The transfers are usually done in port areas. The other proposed measure would be to impose sanctions on three Russian LNG projects - Arctic LNG 2, Ust Luga and Murmansk - that are not yet operational. Imports of Russian LNG to Europe have increased since the war began, with Belgium, France, and Spain the biggest takers. Analysts have said existing sanctions and difficulties securing vessels mean Russia is unlikely to meet a government target to commission 100 million metric tonnes of LNG capacity by 2030. Actual capacity in 2030 is expected to be as much as 60 million tonnes short of that goal, Rystad Energy said.
24 April: Iranian President Ebrahim Raisi’s visit to Pakistan put the spotlight on a major gas pipeline deal between the two neighbours which has faced delays due to geopolitical issues and international sanctions. The two nations reiterated the importance of cooperation in the energy domain, including trade in electricity, power transmission lines and the IP Gas Pipeline Project.
24 April: Japan Gas Association members anticipate limited impact on their LNG (liquefied natural gas) procurement in the event of a blockade in the Strait of Hormuz, but expects gas prices would rise due to higher oil prices. Japan imports only 4-5 percent of the nearly 70 million metric tonnes of LNG from Qatar. The Strait of Hormuz runs between the Persian Gulf and Gulf of Oman and provides a key route for shipping.
26 April: Green NGOs have accused the Asian Development Bank (ADB) of indirectly financing coal plants in Indonesia through a US$600 million loan despite promises to no longer fund projects tied to the fossil fuel, according to a new report. The report by four NGOs alleges the ADB loan given in 2021 to Indonesia’s state power company to fund its ten-year business plan and "promote the use of clean energy" has no clause blocking spending on new coal facilities. The electricity company (PLN) plan contains more than a dozen new coal projects, including an expansion at Java island’s Suralaya, one of the biggest coal-fired plants in Southeast Asia, which will add two generating units to eight in operation.
24 April: China’s domestic coal prices have bottomed out and will exceed 2023 highs this year, a major coal industry group said. China Coal Transportation and Distribution Association (CCTD) expects China’s coal output to remain largely flat this year, compared with a 2.9 percent growth last year. Recent government economic stimulus measures could boost demand for coal, adding that there was hope that the economy was bottoming out. A protracted real estate slowdown has been cited as one of the major reasons for relatively tepid coal demand. Coal demand from the power sector has been stable, while consumption by the chemical sector has recovered slightly, growing to 6 million tons per week in April, compared with 5.5 million tonnes (MT) last year, according to CCTD. Coal imports by China, the world’s largest user of the polluting fuel, are expected to be little changed or decline in 2024 despite an expected increase in overall demand for the polluting fuel.
24 April: Japan's utilities are on track to boost clean electricity output to the highest levels in several years in 2024, after recording a 12.4 percent rise in clean power output over the first two months from the same period in 2023. Clean electricity output during January and February totalled 52.67 terawatt hours (TWh) according to energy think tank Ember, the highest for that period in at least five years. Japan’s power firms also cut fossil fuel-based generation over the opening two months of the year by 6 percent from the year before, to the lowest since 2019. As a result, clean power sources supplied 31.6 percent of Japan’s electricity during the first two months of 2024, up from a 28 percent share at the same point in 2023.
25 April: President Joe Biden’s government finalized sweeping plans to curb planet-warming emissions from the nation’s fossil fuel plants as part of the United States' efforts to confront the climate crisis. Hailed as among the most significant tools ever developed for reducing greenhouse gases from the power sector, the rules will require existing coal-fired plants and new high capacity gas-fired plants to reduce their carbon dioxide output by 90 percent, once they take effect. It comes as Democratic incumbent Biden faces a tough election rematch against Republican Donald Trump, with climate action seen as key to galvanizing youth and progressive voters. US power plant emissions have been declining, thanks to a drop in the cost of renewables. But they are still responsible for a quarter of greenhouse gasses produced by the world’s largest economy.
25 April: Renewable energy sources generated over a third of Australia’s utility-supplied electricity during the first quarter (Q1) of 2024, a record share for solar and wind farms during the first quarter of the year and Australia's peak summer demand period. Solar farms generated 13.11 terawatt hours (TWh) of electricity during the first quarter of 2024, up 13.5 percent from the same period in 2023, energy think tank Ember data shows. Wind power generated 7.53 TWh of electricity, up 6.5 percent from the same quarter a year ago, lifting total output from renewable sources to 20.64 TWh during the quarter, and the highest first-quarter total on record. The solar and wind production totals were the second highest ever on a quarterly basis after the final quarter of 2023, and indicate that Australia’s build-out of utility-scale clean energy generation capacity is having a deep impact on the country’s generation mix. Up until the end of 2020, Australia relied on fossil fuels to generate 75 percent of its electricity, while renewable energy sources accounted for less than 20 percent of utility-generated electricity supplies. Rooftop solar installations across Australia have surged in recent years, with an estimated 3 million households deploying some form of solar generation, producing roughly 11.2 percent of the country's electricity in 2023 according to the Australian Clean Energy Council.
25 April: Spain’s Repsol is working on a deal to sell a minority stake in a renewable portfolio in the United States (US) as it aims to expand its footprint in a country it sees as a key market. The move is in line with the energy firm’s strategy to fund its diversification into renewables from its traditional oil and gas core business by selling minority stakes in renewable projects. Repsol already has a 40 percent stake in US renewables developer Hecate Energy.
24 April: Some of the world’s largest solar equipment makers asked President Joe Biden’s administration to impose tariffs on panels and cells from four Asian countries to protect billions of dollars in investments in US (United States) manufacturing. Seven companies - Korea's Hanwha Qcells Switzerland’s Meyer Burger, Norway’s REC Silicon and US companies First Solar Inc Convalt Energy, Mission Solar and Swift Solar - are behind the petitions filed with the US Department of Commerce and the International Trade Commission. The American Alliance for Solar Manufacturing Trade Committee is accusing Chinese companies with factories in Malaysia, Cambodia, Vietnam and Thailand of flooding the US market with panels priced below their cost of production. That has caused prices to collapse by more than 50 percent, threatening their US-made products. If the case is successful, companies that import panels to install on rooftops or build large-scale solar power plants could face higher prices within months. Biden’s landmark climate change law, the Inflation Reduction Act, includes incentives for companies that produce clean energy equipment in the US.
This is a weekly publication of the Observer Research Foundation (ORF). It covers current national and international information on energy categorised systematically to add value. The year 2023 is the twentieth continuous year of publication of the newsletter. The newsletter is registered with the Registrar of News Paper for India under No. DELENG / 2004 / 13485.
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