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Source: Statistical Review of World Energy 2025
Coal continues to play a central role in both India and China, decisively delivering affordability and energy security, two of the three pillars of the energy trilemma. While the third pillar of sustainability remains a critical shortfall, India is investing in increasing thermal efficiency, carbon capture, utilisation and storage (CCUS), and coal gasification to reduce emissions from coal consumption and consequently improve coal’s score on the sustainability metric.
India has prioritised domestic coal production as a cornerstone of its energy security strategy. In 2024-25, domestic coal production was over 1.04 billion tonnes, a record high underpinning a 4.9 percent increase over the last financial year. Non‑coking coal imports for 2024-25 were 169 million tonnes (MT), down 8 percent compared to imports of 183 MT in 2023-24. Imported coal blending with domestic coal fell to 5.5 MT in 2024-25 compared to 12 MT in 2023-24, a substantial 54 percent reduction. Foreign exchange savings from import reduction in 2024-25 were estimated at about US$7.93 billion. India’s coal fleet accounts for about 45 percent of the installed capacity for power generation and about 75 percent of power generation.
On affordability, there is some debate. On the one hand, we have renewable advocates who use the levelized cost of electricity (LCOE) metric to argue that renewable power is cheaper than coal. Others point out the shortcomings of LCOE to claim that coal power remains cheaper than renewable power at a system level, which is important for policymakers. In the context of project finance, LCOE measures the constant electricity price a single asset must achieve, under specific assumptions, to recover costs and service debt. This is precisely the variable bankers use for debt service coverage ratio (DSCR) assessments. For assets like wind or solar farms that lack a long-term market reference for fuel prices, LCOE is used as a reliable benchmark to determine whether a given power purchase agreement (PPA) price can achieve breakeven. LCOE is an asset owner perspective that tells an investor the cost of owning and operating that specific generator. LCOE ignores all additional costs required to integrate intermittent generation into the grid, such as reserve capacity, frequency regulation, transmission and distribution expansion, and storage. Policy makers face a macro, complex, and highly interconnected electricity system, not a single project. LCOE’s inability to capture system effects could lead to systematic distortions at the macro level. Research shows that at high renewable penetration, these integration costs can reach €25-30 per megawatt hour (MWh), enough to erase or even reverse the apparent cost advantage of a particular source of energy. For example, a wind generator may have an LCOE of €30/MWh, but once the cost of grid-provided spinning reserve, storage and transmission is added, the real cost can double. This additional cost is allocated by the policymaker to the ratepayer or taxpayer. The additional cost is often allocated to the taxpayer, which sustains the narrative of a low renewable tariff for the ratepayer.
For example, some studies quote coal tariff based on LCOE metric to be comparable to, or even higher than, that of recently discovered firm and dispatchable tariffs (primarily coal), which ranged between ₹4.3–5.8/kWh (kilowatt hour). The studies draw attention to recent solar and storage tenders in India priced in the range of INR2.9–3.6/kWh, much lower than coal-based firm dispatchable power. But questions have been raised over low tariffs quoted by developers in India’s rapidly expanding battery energy storage sector. In 2025, financial and execution stress due to tariffs falling below viability benchmarks is influencing nearly 75 percent of the country’s allocated two-hour standalone battery storage capacity. Aggressive bidding (not exclusive to the renewable sector; bid low and renegotiate later is a common strategy) with unviable tariffs, along with rising supply-chain costs, are squeezing project economics. India allocated around 10.4 GW (gigawatt) of standalone BESS (battery energy storage system) capacity in 2025, while cumulative energy storage tendered capacity surged more than 13 times from 6.8 GW in 2018 to 90.7 GW by 2025. Standalone storage tenders accounted for over 71 percent of total storage capacity tendered during the year, while standalone BESS projects made up around 60 percent of capacity. Between 2022 and 2025, average standalone BESS tariffs declined by nearly 79.6 percent, while battery pack prices fell only 36.5 percent during the same period, exposing developers to rising cost pressures and weak project returns. Lithium carbonate prices in China nearly doubled by December 2025, while China’s phased withdrawal of battery export rebates from April 2026 is expected to further increase landed battery costs in India. The stress is affecting financing and project execution. A critical issue is that the import of batteries compromises energy security.
Another factor that has reinforced the affordability of coal-based power is the tax reforms introduced by the Indian government in 2025. India’s coal prices fell markedly in 2025 following the move by the GST (Goods and Services Tax) council to increase the consumption levy on coal from 5 percent to 18 percent but completely remove the INR400/tonne compensation cess. The net effect was that coal prices for power utilities fell by 8.1–19.8 percent. Power generation costs dropped by approximately INR 0.17/kWh. The reduction in coal-based power generation cost is comparable to the estimated INR 0.10/kWh decline for solar power from simultaneous GST panel tax reductions.
In India, where per-person energy consumption is about a third of the global average, the cost of power is a direct determinant of industrial competitiveness and social welfare. Since, at a system level, coal remains the most cost-effective source of baseload power, coal will remain the source of affordable energy as India targets tripling its per capita energy consumption by 2047. Beyond electricity, coal is deeply embedded in heavy industrial sectors such as steel, cement, and chemical production. In these sectors, the cost-competitiveness of coal-based heat is difficult to replace with current electrification alternatives without a significant economic burden.
On sustainability, India has allocated public funds for coal gasification and for CCUS. India's national coal gasification mission, launched in 2021, targets 100 million tonnes (MT) of coal gasification annually by 2030, supported by an initial INR85 billion (US$1.02 billion) incentive scheme. This target was subsequently adjusted to 75 MT under a significantly expanded INR375 billion (US$4.52 billion) scheme approved in May 2026, designed to mobilise INR3 trillion (US$30 billion) in investment. According to government data, as of late 2025, India's actual coal gasification output was approximately 5 MT per annum in a good year, of which about 1.8 MT comes from Jindal Steel and Power's plant at Angul. China, by contrast, gasifies over 340 MT of coal annually.
India’s Union Budget 2026–27 has earmarked INR200 billion (US$2.4 billion) over five years for CCUS. This allocation is directed at hard-to-abate sectors such as steel, cement, power, refineries, and chemicals. India’s Net Zero 2070 strategy aims to capture 750 MT of CO₂ (carbon dioxide) by 2050. The funding is intended to bridge the gap between pilot projects and commercially viable CCUS systems, supporting demonstration plants, indigenous technology development, and international collaboration.
Coal’s role in India is evolving from a simple volume-driven commodity to a resilience tool. In periods of geopolitical instability or extreme weather events, the availability of domestic coal reserves acts as an insurance policy against the price volatility seen in global gas and oil markets. Consequently, coal will continue to be the backbone of India’s energy strategy for the foreseeable future, even as the scale and relative share of renewables grow.
Imports
Coal India Ltd (CIL) is planning a comprehensive 10-year roadmap to slash the current 243 million tonnes (MT) coal import volume through ramped-up domestic production, coal quality upgrades, and logistics cost parity. The proposed roadmap targeting coal import cuts includes a detailed forensic audit of imports, backed by sector-specific policies and phased shift strategies to boost local supply. It will include the National Washery & Logistics Grid to streamline coal washing and transport, addressing key bottlenecks in the supply chain.
Governance
Two cement companies in Meghalaya have been accused of violating prescribed norms in the transport of over 2.93 lakh metric tonnes of coal, a high court (HC)-appointed committee said in its latest report. The single-member panel of retired judge B P Katakey said that the two companies transported the dry fuel from outside the state between February 2025 and February this year "without obtaining mandatory approvals under the Standard Operating Procedure (SOP), 2024". Justice (Retd) B P Katakey heads the committee, appointed by the HC to oversee compliance with its directions on curbing illegal coal mining and transportation.
India’s top solar power-producing state has once again blocked approval for a proposed 3.2 gigawatt (GW) coal-fired power project, highlighting ongoing regulatory scrutiny around new thermal power capacity amid the country’s renewable energy expansion. The state regulator reportedly withheld approval for the large-scale coal power project, citing concerns related to electricity demand projections, cost implications and energy planning priorities. India has been expanding renewable energy capacity rapidly while maintaining coal power as a critical source of baseload electricity. However, rising renewable penetration, storage expansion and changing energy economics have intensified debates around the need for new coal-fired plants.
The government has approved a proposal to list Mahanadi Coalfields Ltd (MCL) and divest up to 25 percent of stake through an initial public offering (IPO), Coal India Ltd said. The listing would happen through a combination of fresh equity issuance and disinvestment by Coal India through an offer for sale.
Production
Coal India Ltd (CIL), the country’s largest coal producer, reported a 9.7 percent drop in coal production to 56.1 million tonnes (MT) in April, raising concerns over meeting the country’s surging energy demands. The slump in coal production is significant as coal remains the backbone of the country’s power generation, accounting for over 70 percent of electricity output. CIL produced 62.1 MT of coal in April 2025-26.
The Pakri Barwadih coal mining project of NTPC Ltd has achieved a milestone by surpassing 100 million tonnes (MT) of coal production since inception, it announced. Coal production at the Pakri Barwadih project operating in Barkagaon block of Hazaribag district, began in Jan 2017, while the first rail rake was dispatched in Feb 2017. The project was declared commercial on April 2019.
Imports
Coal India Ltd (CIL) is planning a comprehensive 10-year roadmap to slash the current 243 million tonnes (MT) coal import volume through ramped-up domestic production, coal quality upgrades, and logistics cost parity. The proposed roadmap targeting coal import cuts includes a detailed forensic audit of imports, backed by sector-specific policies and phased shift strategies to boost local supply. It will include the National Washery & Logistics Grid to streamline coal washing and transport, addressing key bottlenecks in the supply chain.
Value Addition
New Era Cleantech Solutions Pvt Ltd, which held a ground-breaking for its coal gasification plant at Chandrapur, has drawn plans to make coal gas-based urea at the site on priority basis. The company, which had plans to make ammonia out of coal, now wants to build the urea plant in the first phase itself. The plant is estimated to produce about 3,850 tonnes per day of urea. This is equivalent to 1.27 million metric tonnes per annum (MMTPA) based on gasification of 1.3 MMTPA of coal. If this works out, it would become the first-ever private sector coal-to-urea plant in the country. The company has written a letter to the ministry of coal seeking a clear policy framework for the coal-to-urea projects in the country, financial incentives and the viability gap funding.
Pricing
Coal India Ltd is absorbing rising input costs to protect consumers from higher coal prices, even as expenses for key inputs, such as explosives and industrial diesel, have surged sharply following the West Asia conflict. The company said it has chosen not to pass on the increase, warning that doing so could trigger a cascading impact across sectors reliant on coal.
Coal India Ltd subsidiary Bharat Coking Coal Ltd (BCCL) announced a scheme to encourage higher coal offtake and reduce costs for power consumers for buying coal during the April-June period of the current financial year. The move aims at encouraging power companies to buy more coal, speed up transport, and cut their costs. It will improve coal supply, ensure steady electricity, and support India’s self-reliance goal amid global energy issues. The scheme will apply to all eligible power sector consumers covered under the fuel supply pact, including those under the flexi-linkage scheme.
Auctions
The coal ministry launched the 15th round of commercial coal Mine auctions in which a total of 11 blocks are being offered, including 7 fully explored and 4 partially explored mines. Of these, 3 mines are being offered under the Coal Mines (Special Provisions) Act, 2015 (CMSP) and 8 under the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR). It includes 1 coking coal block and remaining 10 are non-coking coal blocks, catering to the requirements of key sectors such as steel and power. Additionally, 6 coal mines are also being offered of 2nd attempt of the 13th round, the ministry said.
Coal India Ltd (CIL) offered 30.5 million tonnes (MT) of coal through online auctions in April, marking a 6 percent decline from 32.5 MT in March. The dip comes against the backdrop of ongoing geopolitical tensions in West Asia, a key oil-producing region, which have spiked global energy prices and prompted power plants to ramp up coal usage for energy security. According to the CIL data, of the total coal on offer by the PSU in April, Mahanadi Coalfields Ltd (MCL) auctioned 9.4 MT, followed by South Eastern Coalfields Ltd (SECL) 5.6 MT, Central Coalfields Ltd (CCL) 4.6 MT, Eastern Coalfields Ltd (ECL) 4.4 MT, Bharat Coking Coal Ltd (BCCL) 3.0 MT, among others. The state-run coal producer offered coal through the Single Window Mode Agnostic (SWMA) auction. SWMA auction is a unified, simplified e-auction system launched in 2022 to consolidate multiple existing auction windows (spot, special spot, forward) into a single platform, making coal procurement easier, more transparent, and market-driven for all buyers. CIL accounts for over 80 percent of domestic coal production.
Demand
Union Coal and Mines Minister G Kishan Reddy said more than 200 million tonnes (MT) of coal stock adequate for 90 days is available in the country. He said one billion tonnes coal production was achieved in the country for the second year in a row.
World
Seaborne thermal coal prices in Asia rallied in the wake of the US (United States) and Israeli war against Iran, but the gains are modest and nowhere near the size seen during the crisis created by Russia’s invasion of Ukraine. This may seem counter-intuitive at first glance, given that thermal coal is an alternative to liquefied natural gas (LNG) for electricity generation, and about 20 percent of global supply of the super-chilled fuel has been lost with the effective closure of the Strait of Hormuz. Seaborne thermal coal prices surged as much as 78 percent in the aftermath of Russia’s invasion of Ukraine in February 2022, even though there was very little disruption to supply, with the main impact being a re-routing of flows as Western buyers shunned Russian cargoes. But with the prices for spot LNG and oil-linked long-term LNG rising, thermal coal is getting more competitive.
China
China’s coal output inched down 1 percent year-on-year in April despite lower imports and a rise in coal-fired power generation during the month, the National Bureau of Statistics data showed, indicating a continued tight supply-demand balance. April output was 385.63 million metric tonnes, down from a record high of 440.62 million tonnes in March. Output over the first four months of the year reached 1.58 billion metric tonnes, down 0.1 percent compared with the same period in 2025. China’s thermal electricity production, which is generated mostly by coal-fired capacity, rose 3.1 percent in April and rose 3.6 percent over the first four months as a whole. China’s coal imports fell 14 percent year-on-year in April to 33.1 million tonnes.
Rest of Asia Pacific
Yancoal Australia said it has agreed to acquire an 80 percent stake in the Kestrel coking coal mine in Queensland for up to US$2.4 billion, a move that strengthens its position as one of the country’s largest coal miners. Yancoal, which has a market capitalization of about US$6.77 billion, will purchase the majority stake in the Bowen Basin-based mine from private equity firm EMR Capital and Alamtri Resources Indonesia. The remaining 20 percent is held by Japanese trading house Mitsui & Co. Kestrel, the largest producing underground coal mine in Australia, recorded saleable production of 5.9 million tonnes in 2025, Yancoal said. The deal is expected to close by the end of the third quarter of 2026. EMR and Alamtri had bought the 80 percent stake in the coal mine from mining giant Rio Tinto for US$2.25 billion in 2018.
Anglo American said it has agreed to sell its steelmaking coal mines in Australia to United Kingdom (UK)-based miner Dhilmar for up to US$3.88 billion. The deal comprises US$2.3 billion upfront cash and an earnout of up to US$1.58 billion linked to coal prices, with proceeds earmarked to cut debt, the company said.
Anglo American has at least three potential buyers for its Australian steelmaking coal business after its unsuccessful deal with Peabody Energy for the assets. Australian miner Stanmore Resources, Japan’s Mitsubishi Corporation and Indonesia-based PT Buma Internasional Grup, are among the bidders for the coal assets. Peabody withdrew its US$3.78 billion bid for Anglo American’s Australian coking coal assets in August, and the London-listed miner initiated an arbitration against the US (United States)-based coal miner. The assets up for sale include mines in Queensland’s Bowen Basin, the world’s top steelmaking coal region, and are part of Anglo’s wider plans to divest its non-core assets.
North & South America
United States (US) lawmakers criticized Energy Secretary Chris Wright in hearings for ordering aging coal plants to stay open, saying the action stands to raise already-high power bills for consumers and steelmakers. Wright’s department in December ordered two Indiana coal plants, that had been planning to shut permanently, to remain open, saying they would lower the risk of blackouts and ensure access to affordable power. The CenterPoint Energy and Northern Indiana Public Service Company coal plants had planned to be replaced by natural gas and other power sources. Wright has ordered TransAlta to keep a coal unit open at its Centralia plant in Washington state that had been planning to retire at the end of 2025.
OMCs raise petrol, diesel price by 90 paise per litre, 2nd hike in a week
19 May: Oil marketing companies (OMCs) increased prices of petrol and diesel by 90 paise per litre, marking the second hike in fuel prices in under a week, amid soaring losses due to elevated crude oil prices. The oil firms had increased fuel prices by INR3 a litre on 15 May. With the latest hike, petrol costs INR98.64 a litre in the national capital, from INR97.77 a litre earlier, while diesel is priced at INR91.58 per litre in Delhi, from INR90.67 a litre. According to analysts, OMCs might look at further price hikes in the coming weeks as they are still incurring steep losses on the sale of petrol, diesel, and liquefied petroleum gas (LPG) cylinders. Union Oil Minister Hardeep Singh Puri had said that OMCs’ under-recoveries in the first quarter of FY27 could rise to INR2 trillion, while losses may touch INR1 trillion, as they sell fuel at comparatively lower prices in the country. The government had reduced excise duty on petrol and diesel by INR10 per litre in late March in a bid to provide relief to consumers and support OMCs. The excise duty cut, however, was not enough to significantly reduce OMCs’ losses. The government had signalled a possible fuel price increase over the past week as OMCs’ fuel prices had remained largely unchanged even as crude traded above US$100 per barrel amid escalating tensions in West Asia.
Revenue loss on LPG widens in May: Indian Oil
19 May: Indian Oil Corporation (IOC) is suffering a revenue loss of INR617 (US$6.39) on the sale of a cylinder of liquefied petroleum gas (LPG) compared to INR171 in April after the Iran war pushed up the prices, its finance chief Anuj Jain said. In January-March, the company suffered a revenue loss of INR100 for the sale of a 14.2-kilogram cylinder of LPG, mainly used as a cooking fuel, he said. Indian state-run fuel retailers sell LPG for households at discounted rates. India, the world’s second-largest LPG importer, is grappling with its worst gas crisis in decades, with the government cutting supplies to industry to protect household cooking fuel needs. In 2025, India consumed 33.15 million tonnes (MT) of LPG. Imports accounted for about 60 percent of demand, with 90 percent of those supplies coming from the Middle East. Supplies of LPG from the Middle East have been disrupted by the closure of the Strait of Hormuz following the US (United States)-Israeli war with Iran. The closure of the Hormuz Strait has prompted IOC to diversify its sourcing of crude, LPG and liquefied natural gas (LNG) to meet local demand. The company has about a month’s crude inventory, he said. IOC recently bought LNG from Oman, Nigeria, Angola and Indonesia after major suppliers in the Middle East declared force majeure, he said. By the end of the year, IOC hopes to expand its Panipat refinery to 500,000 barrels per day (bpd), its Gujarat refinery to 360,000 bpd, and its Barauni plant to 180,000 bpd, he said.
Bharat Petroleum reviewing oil imports daily, spot buying more amid Iran war
19 May: Bharat Petroleum Corporation Ltd (BPCL) is recalibrating its crude import strategy almost daily and ramping up spot purchases after the US (United States)-Israeli conflict with Iran disrupted Middle East supplies, Chairman Sanjay Khanna said. India, the world’s third-largest oil importer and consumer, has been hit by rising crude prices and supply disruptions following the closure of the Strait of Hormuz. The South Asian nation has raised the retail prices of petrol and diesel twice in a week. BPCL had planned to source about 55 percent of its crude requirement for 2026/27 through annual contracts, mainly from Middle Eastern producers, and the rest through spot markets. But force majeure declarations by some Gulf suppliers have pushed BPCL to increase spot buying to keep refineries running at 115 percent capacity, Khanna said. BPCL operates three refineries in India with a capacity to process 706,000 barrels per day (bpd) of oil. The refiner has an optional annual crude purchase arrangement with Brazil.
India develops indigenous cooking gas alternative at Pune laboratory
18 May: Millions of Indian households depend on LPG (liquefied petroleum gas) cylinders for daily cooking, exposing the country to significant fuel import reliance. Scientists at the CSIR-National Chemical Laboratory in Pune are developing an indigenous alternative known as Dimethyl Ether (DME), which they present as a promising substitute for LPG. DME can be produced domestically utilizing resources such as coal, biomass, and methanol, potentially reducing India’s dependence on imported fuel. Scientists involved in the project described their work as part of “India’s next-generation deep-tech innovation.” The researchers highlighted that DME’s applications extend beyond household cooking fuel, including use in LPG-run autorickshaws and as a possible replacement for diesel generators. The transition to DME will begin with blending 20 percent DME with 80 percent LPG, which could be implemented without the need for consumers to change their existing stoves or cylinders. The scientists noted that even this 20 percent blend could significantly reduce India’s LPG imports and ease pressure on foreign exchange reserves.
20k tonnes LPG carrier Symi arrives in Gujarat after crossing Strait of Hormuz
17 May: The Marshall Islands-flagged tanker Symi, an LPG (liquefied petroleum gas) carrier transporting nearly 20,000 tonnes of liquid propane and butane, has safely docked at Deendayal Port in Kandla. The vessel crossed the Strait of Hormuz on 13 May, marking another crucial movement of energy supplies through the key maritime route amid the ongoing Middle East crisis. The vessel has 21 crew members onboard, with eight Ukrainians and 13 Filipinos. Symi was the 11th LPG tanker to cross the Strait in the current monitored operations. According to officials, these safe passages were made possible through close coordination between DG Shipping and the ministries of external affairs, defence, and petroleum and natural gas. These shipments come at a time when global energy supplies have been under pressure due to the ongoing Middle East conflict. India’s crude reserves have shrunk sharply in the months as the Strait of Hormuz has continued to see disruptions for over 75 days, with stockpiles have dropping by nearly 15 percent. Commodities analytics firm Kpler data estimates that India’s total crude stockpile, including strategic petroleum reserves, refinery holdings and commercial storage, but excluding pipeline stocks, has fallen to 91 million barrels from 107 million barrels recorded at the end of February, when the conflict began. At current consumption levels of about 5 million barrels a day, India’s available crude inventory is estimated to cover nearly 18 days of demand, according to Kpler’s calculations.
Delhi cuts VAT on aviation turbine fuel to 7 percent
17 May: The Delhi government reduced the value added tax (VAT) on aviation turbine fuel (ATF) from 25 percent to 7 percent for a period of six months, citing rising financial pressure on the aviation sector amid recent global geopolitical developments. Announcing the cabinet decision, Chief Minister (CM) Rekha Gupta said the move was aimed at maintaining Delhi’s economic competitiveness and supporting aviation, tourism and logistics activities in the Capital. ATF accounts for nearly 40 percent of airlines’ operational costs, with airlines currently paying both VAT and central excise duty on fuel purchases from oil companies. The government said high tax rates have a direct impact on ticket prices and the financial health of airlines. She said VAT on ATF contributes nearly INR13.68 billion annually, accounting for around 19 percent of Delhi’s total annual VAT collection.
India, other oil importers to bilaterally negotiate transit corridors with Iran: Moody’s
17 May: India and other oil importing nations are likely to negotiate bilaterally to secure energy supplies, potentially through coordinated transit corridors, but a return to pre-war traffic volumes is unlikely in 2026, Moody’s Ratings has said. In a global report on geopolitical risks, Moody’s said there is little prospect of a swift and durable settlement between the US (United States) and Iran and with it the full reopening of the Strait of Hormuz. Moody’s said the transit flows will gradually improve, but through bilateral channels rather than a general reopening. This would allow some incremental improvement in energy transit flows from near-zero now, but the process will be slow, opaque and subject to interruption.
Abu Dhabi to ramp up crude storage, India’s reserve may go up 70 percent
16 May: India’s crude security is all set to get a boost with its reserve likely to increase by nearly 70 percent from 5.3 million tonnes (MT), as the UAE’s Abu Dhabi National Oil Company (ADNOC) has agreed to ramp up crude oil storage to as much as 30 million barrels. The UAE already has leased storage capacity at Mangalore in India, where it keeps nearly 6 million barrels, or around eight lakh tonnes, of crude. Ramping up the storage to 30 million barrels will add over four million tonnes of crude to India’s overall strategic reserves. India currently has a strategic petroleum reserve of 5.3 MT at Visakhapatnam, Mangalore and Padur, which equals around 38 million barrels. ADNOC has signed an agreement with Indian Oil Corporation (IOC) to expand LPG (liquefied petroleum gas) supply and trading opportunities for the widely used cooking gas in India. The deal will be an extension of an existing LPG term contract signed between the two energy companies in 2023 and is likely to support a long-term LPG sale and purchase agreement.
India’s Russian oil supply likely to be hit if US waiver not extended
15 May: India’s crude oil supply from Russia is likely to be impacted if the US (United States) does not renew the sanctions waiver on the purchase of petroleum products from Moscow, according to industry experts and refinery executives. Under the latest US waiver, countries have been allowed to purchase Russian crude oil and petroleum products until 16 May that were loaded onto vessels on or before 17 April. The US has not renewed the waiver as of now.
Maharashtra government reduces vat on jet fuel from 18 percent to 7 percent
15 May: The Maharashtra government reduced value added tax (VAT) on aviation turbine fuel (ATF) or jet fuel from 18 percent to 7 percent for a period of six months. The decision comes at a time when fuel prices across the country have risen by INR3 due to elevated crude oil prices, supply disruption concerns in the Gulf region, and the weakening rupee. As per the notification issued under the Maharashtra Value Added Tax (MVAT) Act, 2002, the revised VAT rate will come into effect from 15 May 2026, and remain applicable till 14 November 2026.
OMCs have reduced fuel supplies to retail outlets: Rajasthan petrol pump dealers
14 May: Petrol pump dealers in Rajasthan have alleged that oil marketing companies (OMCs) have reduced fuel supplies to retail outlets and imposed informal limits on sale of petrol and diesel to consumers. They warned that the move could lead to law and order problems at fuel stations. Rajasthan Petroleum Dealers Association said dealers were being informed through mobile messages and verbal instructions to restrict fuel sales to individual consumers. According to the Indian Oil Corporation (IOC) association general secretary Shashank Korani allegedly directed dealers to limit diesel sales up to INR50,000 and petrol sales up to INR5,000 per consumer, while Bharat Petroleum Corporation Ltd (BPCL) allegedly capped sales at 49 litres of petrol and 200 litres of diesel. Similar restrictions were allegedly communicated by Hindustan Petroleum Corporation Ltd (HPCL), it said.
Consumers lock agency over LPG shortage in Beed
14 May: Agitated consumers locked an LPG (liquefied petroleum gas) agency in Beed, protesting a shortage in gas cylinder supply and not receiving refills despite booking online and making advance payments. Echoing similar concerns, a woman said she had to spend INR300 on an autorickshaw just to visit the agency. Another customer said he was initially promised delivery on 9 May but was later asked to wait till 26 May. Responding to the situation, Beed district supply officer Shivkumar Swamy said panic buying had led to temporary disruptions at some agencies. Swamy said the district had adequate LPG stocks for domestic and commercial use, urging consumers not to resort to panic buying.
Himachal Pradesh governor announces ‘Petrol-Free Sundays’ at Lok Bhawan
14 May: Himachal Pradesh governor Shiv Pratap Shukla has announced a ‘Petrol-Free Sunday’ initiative at Lok Bhawan as part of efforts to promote fuel conservation and encourage environmentally responsible practices. The move comes amid increasing focus on reducing fuel consumption and promoting sustainable transportation habits across government institutions. Under the initiative, the use of petrol and diesel vehicles at Lok Bhawan will be restricted on Sundays, with officials and staff encouraged to adopt alternative transport methods such as walking, cycling or electric vehicles wherever possible. The campaign is aimed at creating awareness around fuel savings and environmental sustainability. Industry experts believe awareness campaigns around fuel conservation could become increasingly important as rising fuel demand, global oil price volatility and climate concerns continue shaping India’s energy policy discussions.
Fuel prices may rise if West Asia war drags on: RBI governor
13 May: India may need to increase retail fuel prices if the conflict in the West Asia drags on, Reserve Bank of India (RBI) governor Sanjay Malhotra said. His remarks came after Prime Minister (PM) Narendra Modi urged voluntary austerity, including cutting down on petrol and diesel use and putting off gold purchases, to preserve foreign exchange reserves. India’s inflation edged up to 3.48 percent in April from 3.40 percent in March, coming in lower than expected as the government absorbed higher crude costs. However, risks remain as rising energy prices from the West Asia conflict weigh on the outlook. Supply-chain disruptions in the region are beginning to hit India.
Ship with 16k MT LPG cuts through Hormuz to reach Maharashtra port
9 May: Confidence Petroleum, one of the country’s largest private cooking gas bottlers, has steered one vessel with 16,000 million tonnes (MT) of LPG through the Strait of Hormuz flanked by naval boats, and is docked in Maharashtra’s Devgad port. Confidence Petroleum hopes that easing of supplies would help slash prices of auto LPG (liquefied petroleum gas) and cooking gas. The navy has so far escorted 10 Indian-flagged vessels with LPG and crude through the conflict zone. The shipping company agreed to sail through Strait of Hormuz after an assurance of naval protection, and the vessels were carefully steered out as there was a risk of being struck by warring nations. With the ship carrying cooking gas from a UAE (United Arab Emirates) company adding to the vessels reaching India, Confidence hinted at a further slashing of prices in coming days. After an initial round of hikes following the West Asia crisis, the company recently cut rates of both auto LPG and cooking gas — from INR121/ litre, the rate of auto LPG was brought down to INR99/litre. Cooking gas prices too were slashed from INR220/kilogram (kg) during the peak of the crisis to INR145/kg. The company is open to further cut rates to ease the burden on consumers. Of the 16,000 MT of LPG, around 8,000 MT would be set aside for Bharat Petroleum Corporation Ltd (BPCL). After that, Confidence would have enough stock to last for 10 days. Currently, two ships of Confidence Petroleum remain stranded in the Strait of Hormuz. However, vessels have now picked up speed. In March, the company brought two ships with 50,000 MT of LPG originally bound for China in a mid-sea deal, offering a hefty premium as compared to the earlier buyer. The company has purchased two vessels from the US (United States), one of which is expected to reach India this month, with the other in June.
Parliamentary panel to review domestic output of petroleum products on 15 May
7 May: India’s parliamentary panel on petroleum and natural gas is set to review the domestic production of fuels on 15 May, as the country faces energy supply constraints amid the West Asia war-triggered disruptions. The review comes amid strained domestic availability of petroleum products, especially cooking gas. The government maintains that the availability petrol and diesel is comfortable, but liquefied petroleum gas (LPG) remains affected due to the crisis that has led to the blockage of West Asia’s crucial energy shipment pathway, the Strait of Hormuz. Concern over low stocks and anticipation of an increase in prices of petrol and diesel has led to instances of panic buying in several parts of the country. India is a major producer of petrol and diesel, and has the fourth largest refining capacity in the world. It is, however, dependent on imports for nearly 90 percent of its crude oil requirement, 60 percent for LPG and about 55 percent for liquefied natural gas (LNG). While India has significantly diversified its sourcing of crude oil over the past few years, the shortage remains severe in LPG since it imports about 90 percent of its cooking gas requirement from West Asia, and these supplies have been choked due to the Strait of Hormuz blockade for over two months. The government has put curbs to manage the LPG crunch. There is a cap in place for bookings—urban households can book a cylinder only after 25 days of the previous booking, while the gap for rural households is 45 days. The parliamentary panel will review availability of fertilizers and its required inputs amid persisting concerns over high prices and availability of fertilizers and natural gas for the production of fertilizers during the upcoming kharif crop season.
India’s RIL to shut some units at 660k bpd refinery
6 May: India’s Reliance Industries Ltd (RIL) will shut some units at its 660,000 barrels per day (bpd) refinery for 3-4 weeks for maintenance after Nayara Energy resumes operations later this month, the petroleum ministry said. RIL plans to shut a crude unit and some secondary units at its 660,000 bpd refinery for routine maintenance.
India’s HPCL buys 2 mn barrels of Oman crude
6 May: India’s Hindustan Petroleum Corporation Ltd (HPCL) has bought two million barrels of Oman crude for delivery in July, traders said. HPCL bought the oil from Vitol at a discount of 10-20 cents to the June dated Brent price, traders said. The companies typically do not comment on their commercial deals. Oman crude is exported from the terminal at Mina Al Fahal outside of the Strait of Hormuz.
IGL hikes CNG prices for second time in 48 hours
17 May: Indraprastha Gas Ltd (IGL) has increased CNG (compressed natural gas) prices across its network by INR1/kg (kilogram). This marks the second increase in 2 days and pushes Delhi’s CNG price past the INR80/kg mark for the first time, while rates at IGL stations in Haryana, Uttar Pradesh and Rajasthan have also gone up. With the latest revision, CNG in Delhi costs INR80.09/kg, up from INR79.09/kg after the earlier nationwide INR2/kg hike announced on 15 May. Following the latest revision, CNG prices now stand at INR88.70/kg in Noida, Greater Noida and Ghaziabad, while Gurugram’s revised rate is INR85.12/kg.
India declines Russian LNG under sanctions, talks continue on permitted cargoes
11 May: India has declined Russia’s offer to sell it liquefied natural gas (LNG) subject to US (United States) sanctions despite a shortfall driven by Middle East tensions, leaving a tanker bound for India in limbo as talks continue on permitted cargoes. The stance highlights the fine balance the world’s third-biggest oil importer and consumer is seeking to strike between securing energy supplies and avoiding LNG cargoes on which the US has placed sanctions, which are harder to disguise and carry greater compliance risk. It also underscores the limits of Moscow’s ability to pivot its LNG exports to new markets. India’s reluctance has left an LNG cargo from Russia’s US-sanctioned Portovaya plant in the Baltic Sea unable to discharge, despite indicating India as its destination in mid-April. The vessel was tracked despite documentation suggesting the cargo was non-Russian. India, the biggest buyer of Russian seaborne crude, conveyed its decision not to buy LNG that was under sanction to Russia’s Deputy Energy Minister Pavel Sorokin during his 30 April visit, when he met Indian officials including Petroleum and Natural Gas Minister Hardeep Singh Puri. It was their second meeting in as many months, and Sorokin could return in June for further talks. India’s purchases of Russian crude have meanwhile continued unabated, aided by a temporary waiver of US sanctions introduced to help countries cope with an energy crisis resulting from the US-Israeli war on Iran, which began on 28 February. India is open to buying authorised Russian LNG, but most of those volumes are committed to Europe. Moscow is seeking long-term deals to supply India with LNG and fertilisers such as potash, phosphorus and urea. Before the Iran conflict disrupted shipping through the Strait of Hormuz, India was meeting half of its gas consumption through imports, about 60 percent of which had come through the waterway. More than half of its crude supplies came the same way. Indian Prime Minister Narendra Modi urged people to conserve fuel and foreign exchange by working from home, limiting foreign travel and reducing imports of gold and edible oil.
Odisha government notifies City Gas Distribution Policy to boost PNG, CNG infra
8 May: The Odisha City Gas Distribution (CGD) Policy, 2026, notified by the state government, seeks to facilitate faster implementation of piped natural gas (PNG) and compressed natural gas (CNG) and related infrastructure through a streamlined, time-bound approval mechanism. Notified by the Housing and Urban Development department recently, the policy aims to promote natural gas as a cleaner and environment-friendly fuel for domestic, commercial, industrial and transport sectors in line with the vision of ‘Viksit Odisha’ and India’s clean energy transition goals. The policy provides for single-window clearance mechanisms, standardised permission charges, GIS-based underground utility mapping, priority allotment of land for CNG stations and City Gate stations, and inclusion of PNG pipeline provisions in building plans and urban master plans. Odisha has already authorised five CGD entities - GAIL (India) Ltd, Gail Gas Ltd, BPCL, Adani Total Gas and Megha Gas - to cover all 30 districts of the state. Around nine lakh domestic PNG connections and 271 CNG stations have been planned under the committed work programme, with an estimated investment potential of nearly INR51 billion. The policy lays down roadmap for smooth implementation of the expansion plan. To encourage rapid expansion of CGD infrastructure, the state government has waived permission and supervision charges for pipeline laying till 31 March 2027. The policy emphasises safety standards, emergency response mechanisms, uninterrupted supply of PNG and CNG as essential services and promotion of Compressed Biogas (CBG) initiatives in association with local bodies.
3.2 GW coal project faces fresh setback as regulator withholds approval
18 May: India’s top solar power-producing state has once again blocked approval for a proposed 3.2 gigawatt (GW) coal-fired power project, highlighting ongoing regulatory scrutiny around new thermal power capacity amid the country’s renewable energy expansion. The state regulator reportedly withheld approval for the large-scale coal power project, citing concerns related to electricity demand projections, cost implications and energy planning priorities. India has been expanding renewable energy capacity rapidly while maintaining coal power as a critical source of baseload electricity. However, rising renewable penetration, storage expansion and changing energy economics have intensified debates around the need for new coal-fired plants.
Government clears proposal for MCL listing, Coal India to divest up to 25 percent stake
15 May: The government has approved a proposal to list Mahanadi Coalfields Ltd (MCL) and divest up to 25 percent of stake through an initial public offering (IPO), Coal India Ltd said. The listing would happen through a combination of fresh equity issuance and disinvestment by Coal India through an offer for sale.
Coal India auctions dip 6 percent to 30.5 MT in April amid West Asia energy shock
11 May: Coal India Ltd (CIL) offered 30.5 million tonnes (MT) of coal through online auctions in April, marking a 6 percent decline from 32.5 MT in March. The dip comes against the backdrop of ongoing geopolitical tensions in West Asia, a key oil-producing region, which have spiked global energy prices and prompted power plants to ramp up coal usage for energy security. According to the CIL data, of the total coal on offer by the PSU in April, Mahanadi Coalfields Ltd (MCL) auctioned 9.4 MT, followed by South Eastern Coalfields Ltd (SECL) 5.6 MT, Central Coalfields Ltd (CCL) 4.6 MT, Eastern Coalfields Ltd (ECL) 4.4 MT, Bharat Coking Coal Ltd (BCCL) 3.0 MT, among others. The state-run coal producer offered coal through the Single Window Mode Agnostic (SWMA) auction. SWMA auction is a unified, simplified e-auction system launched in 2022 to consolidate multiple existing auction windows (spot, special spot, forward) into a single platform, making coal procurement easier, more transparent, and market-driven for all buyers. CIL accounts for over 80 percent of domestic coal production.
NTPC achieves 90 GW installed capacity milestone
18 May: NTPC Group has crossed the milestone of 90 GW (gigawatt) in installed power generation capacity following the successful completion of trial operations of Unit 2 (800 MW) at Patratu Vidyut Utpadan Nigam Ltd (PVUNL) in Jharkhand. The addition marks another key step in NTPC’s expansion as India continues to scale electricity generation capacity to meet rising power demand. The latest capacity addition came from PVUNL, a joint venture between an NTPC subsidiary, which holds a 74 percent stake, and Jharkhand Bijli Vitran Nigam Ltd, which owns the remaining 26 percent. The project comprises three units of 800 MW each and is aimed at supplying reliable and affordable power using advanced technologies and improved resource efficiency. With the commissioning, NTPC Group operates more than 90 GW of installed capacity across the country and has around 32 GW under construction.
Chhattisgarh adds 220 kV double-circuit line, power boost for 5 districts
17 May: Chhattisgarh State Power Transmission Company has energised a new 220 kilovolt (kV) double-circuit line from power grid’s 765 kV Dhamdha substation to the state grid to improve power supply capacity across five districts. The new Dhamdha-Gaindpur line will significantly increase the capacity to receive power from the central grid, making the supply more reliable and quality-driven. The move increases the number of available 220 kV lines for this network from three to five. The project will help ensure uninterrupted power supply in Rajnandgaon, Kawardha, Mungeli, Bemetara, and Balodabazar-Bhatapara districts. The system will also maintain supply continuity even during technical faults on the route, aiding industrial, agricultural, and domestic consumers.
Evening peak triggers outages as Punjab power demand surges
15 May: Punjab State Power Corporation Ltd (PSPCL) recorded a generation shortfall of 1,265 megawatt (MW) during peak evening hours, triggering scheduled load-shedding across parts of the state amid a sharp rise in power demand. According to PSPCL’s power supply position report for 12 May, Punjab’s peak demand touched 10,227 MW, compared with 9,143 MW on the corresponding date last year — an increase of nearly 12 percent.
GERC draft rules put BESS at centre of Gujarat grid
15 May: The Gujarat Electricity Regulatory Commission (GERC) has released draft regulations for grid-interactive Battery Energy Storage Systems (BESS), formally recognizing battery storage as generation-linked, transmission-linked, distribution-linked and standalone grid assets. The draft framework allows standalone BESS developers to independently participate in energy markets, ancillary services and bilateral contracts. GERC said the regulations aim to improve grid flexibility, reliability, stability and renewable energy integration while addressing intermittency challenges associated with renewable energy sources. Under the proposed regulations, BESS may be deployed for congestion management, peak demand management, renewable energy balancing, reserve support, voltage regulation, frequency support and energy arbitrage. The draft allows multi-use battery systems supporting multiple grid functions simultaneously and permits transmission and distribution licensees to evaluate battery storage as an alternative to conventional network augmentation. The State Load Despatch Centre (SLDC) will oversee scheduling, dispatch and control of all grid-connected BESS projects. The framework formally recognises battery systems installed under net metering, gross metering and related consumer arrangements.
Madhya Pradesh cabinet nod must for future power purchase deals
15 May: The Madhya Pradesh Power Management Company Ltd (MPPMCL) has decided that all future long-term and medium-term power purchase agreements (PPAs) and power supply agreements (PSAs) will require prior approval from the state cabinet before implementation. The decision was taken during a recent board meeting of the power management company and is being seen as a significant policy shift aimed at increasing transparency and accountability in the energy sector. Till now, such agreements were approved at the board level of the company. The state government currently has nearly 1,795 PPAs of varying durations and capacities, with a combined contracted capacity of around 26,012 MW. The existing arrangements have helped Madhya Pradesh maintain uninterrupted power supply and function as an energy-surplus state.
GHRC wants report on smart power meter rollout
12 May: The Goa Human Rights Commission (GHRC) took suo motu cognisance of a news report on government’s mandatory smart electricity meter rollout and sought a report from the chief electrical engineer of the electricity department. The commission said the report prima facie raised concerns of human rights violations and directed the chief electrical engineer to submit a reply by 2 June. The electricity department and power minister recently said replacing existing digital meters with smart meters is mandatory for all consumers. The department issued a public notice urging consumers to cooperate with the installation process. The department said the upgraded meters would enable access to real-time billing data and promote efficient energy use. Several consumers have written to the department opposing the replacement of functional meters, while others have submitted representations over the installation of smart meters. Power Minister Ramkrishna Sudin Dhavalikar said the project cost exceeds INR8.90 billion, with INR8.20 billion to be borne by state government and INR700 million by central government through gross budgetary support.
Private distribution licences could spell danger for state discoms
12 May: Private power distribution licences for large commercial and industrial customers, similar to the one secured by Google’s data centre in Visakhapatnam, could be a red flag for already struggling state discoms (distribution companies). Power sector experts suggest that commercial and industrial (C&I) customers contribute about 55-60 percent of discom revenues, and though the policy in Andhra Pradesh is the first of its kind, a larger trend towards private licences could cause stress. The gross debt of state discoms stood at INR7300 billion as of March 2025, driven by working capital borrowings, losses and liquidity support schemes, ICRA data showed. While losses have improved in recent years due to higher subsidies and lower power purchase costs, the rating agency expects profitability pressures to continue in FY26 and FY27 because of inadequate tariff hikes, rising interest costs and elevated power purchase expenses, it said.
At 4.5 GW, Mumbai hits new all-time peak power demand high
11 May: Days after its peak power demand hit an all-time high of 4,372 megawatt (MW) last month, Mumbai breached the record once again at 4,540 MW. Tata Power and Adani Electricity could together generate only 865 MW and the remaining 3,675 MW had to be drawn from outside the city. The sharp gap between local generation and actual demand highlights a structural challenge for Mumbai, where peak consumption has hovered between 4,000 MW and 4,400 MW in recent years and is projected to rise to 5,000 MW in the coming years. To strengthen supply reliability, a 1,000 MW high-voltage direct current link was commissioned, giving Mumbai’s transmission capacity a major boost. This increased the city’s external power intake capacity by 50 percent. Consumers have been encouraged to shift usage to non-peak hours through ‘time of day’ tariffs, a dynamic pricing model in which rates vary with demand, with a benefit of 50 paise per unit offered for off-peak consumption.
Jharkhand Urja Sancharan Nigam move to curb power cuts in 7 districts
9 May: Residents across the Santhal Pargana, Dhanbad and Giridih areas are set to receive consistent power supply following a major infrastructure breakthrough. The Jharkhand Urja Sancharan Nigam Ltd (JUSNL) has energised a single-circuit line-in line-out (LILO) of the 220 kilovolt (kV) Govindpur-Dumka transmission line at the NKTL (North Karanpura Transmission Ltd) grid substation in Dhanbad. The commissioning is expected to provide substantial relief from power cuts in several districts, as the state is now equipped to receive up to 450 megawatt (MW) of power from the NKTL. At present, Dumka region draws around 103 MW through the link, while the Govindpur grid substation gets nearly 80 MW.
Uttar Pradesh government scraps smart prepaid meter system, shifts all consumers to postpaid mode
8 May: The Uttar Pradesh (UP) government has decided to discontinue the smart prepaid electricity meter system across the state and convert the already-installed devices to postpaid with immediate effect, Energy Minister A K Sharma said. The move comes amid growing protests in several districts over alleged excess billing and irregularities linked to smart prepaid meters installed under the Revamped Distribution Sector Scheme (RDSS). The decision was taken following directions from Chief Minister (CM) Yogi Adityanath in view of consumer convenience and grievances.
Supreme Court rules against tariff burden for unused power projects
8 May: The Supreme Court of India has ruled that electricity consumers cannot be made to bear tariff liabilities for power plants that were never commissioned or failed to supply electricity. The judgment came in a case concerning recovery of charges linked to non-operational power projects and the passing of such costs to end consumers through electricity tariffs. The court observed that consumers cannot be burdened with costs for projects that did not become functional or generate electricity under the agreed framework. The ruling is expected to impact tariff recovery mechanisms adopted by power distribution companies and regulators in similar cases involving stranded or delayed projects. The matter involved fixed charges and tariff-related claims arising from power projects that remained non-operational. The court held that such financial liabilities cannot automatically be transferred to consumers where electricity supply obligations were not fulfilled. The judgment may have implications for ongoing disputes between power generators, distribution companies and regulatory bodies over recovery of costs linked to stalled infrastructure assets. Several power projects in India have faced delays due to financing issues, fuel shortages, land acquisition hurdles and regulatory clearances. The ruling is likely to influence future power purchase agreements and tariff approval processes in the sector, particularly in cases involving project delays or failure to commence operations.
India’s power demand to rise by 5 to 5.5 percent in FY27: ICRA
7 May: Rating agency ICRA said power demand will rise by 5.0-5.5 percent in 2026-27 as against a tepid one percent growth in 2025-26, supported by continued momentum in industrial and commercial activity. The country’s power demand growth in 2026-27 is likely to be supported by agricultural and household sectors given the expectation of sub-par rainfall amidst a potential El Nino, along with demand from industries as well as from emerging sources like electric vehicles and data centres, ICRA said. The book losses of the distribution companies at the all-India level improved in 2024-25 over 2023-24. The gross debt for state-owned discoms (distribution companies) reduced to INR7.1 trillion as of March 2025 from INR7.4 trillion as of March 2024, it stated. The tariff orders for 2026-27 have been issued in 17 out of 28 states as of April 2026, it noted. ICRA expects the cash gap per unit for the discoms at the all-India level could remain high at 30-33 paise per unit in 2026-27 in case of limited tariff hikes and increased power purchase costs amid addition of relatively higher tariff-based capacities, it stated. ICRA’s outlook for the power distribution segment remains Negative amid limited tariff hikes and continued loss-making operations, it stated.
KPTCL sets target to complete Kadandale 400 kV power substation project by 15 July
6 May: Karnataka Power Transmission Corporation Ltd (KPTCL) has set a target to complete the strategically important Kadandale 400 kilovolt (kV) power substation project by 15 July, aiming to ensure uninterrupted and quality power supply to the coastal districts of Dakshina Kannada and Udupi. The target has been fixed by the KPTCL (Karnataka Power Transmission Corporation Limited) following the directions of State Energy Minister K J George. The project, located at Kadandale village in Moodbidri taluk of Dakshina Kannada district, had remained stalled for nearly three years due to land-related litigation affecting the 400 kV transmission line works.
Maharashtra signs MoUs with four companies for 25 GW nuclear power projects
19 May: Maharashtra took a major step towards clean energy expansion as the state government signed memorandums of understanding (MoU) with four leading companies for 25,400 megawatt (MW) nuclear power generation projects with investments of INR6.5k billion. Chief Minister (CM) Devendra Fadnavis said the companies will conduct a survey of the project sites for which the department of the state government will cooperate and provide assistance. The government signed MoUs with NTPC Ltd, Adani Power, Reliance Industries Ltd, and Lalitpur Power Generation Company Ltd of the Bajaj Group.
Centre approves INR55 bn scheme for floating solar projects with battery storage
19 May: The Expenditure Finance Committee (EFC) under the finance ministry has approved a proposed INR55 billion scheme focused on floating solar projects integrated with battery energy storage systems (BESS). The proposal will be forwarded to the Union Cabinet for final approval as India accelerates efforts to strengthen energy security and expand renewable energy capacity. The initiative is aimed at encouraging states and project developers to deploy floating solar installations along with battery storage infrastructure across the country. Floating solar systems are installed on reservoirs and other water bodies, which may to help reduce pressure on land availability while improving solar generation performance due to the cooling effect of water surfaces. The approval comes amid growing concerns over global energy security linked to geopolitical tensions and ongoing instability in West Asia. Rising uncertainty around fossil fuel supplies has intensified India’s focus on scaling domestic renewable energy generation and reducing dependence on imported fuels.
Centre clears 13 lakh rooftop solar installations under ULA model
18 May: The government has approved the installation of nearly 13 lakh rooftop solar systems across 10 states and Union Territories under the Utility-Led Aggregation (ULA) model to accelerate residential solar adoption under the PM Surya Ghar: Muft Bijli Yojana. The approved projects are expected to add around 4.9 gigawatt (GW) of rooftop solar capacity and will be implemented through distribution companies (discoms), involving an estimated investment of around INR85 billion. The ULA model enables discoms or designated agencies to aggregate consumer demand and oversee large-scale rooftop solar deployment, helping reduce upfront complexity for households and improve implementation efficiency. The approved states and Union Territories include Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, Madhya Pradesh, Chhattisgarh, Assam, Meghalaya, Nagaland and Lakshadweep. The initiative is expected to improve electricity access and encourage renewable energy adoption, especially in regions where rooftop solar penetration has remained relatively low.
Kanpur to make entry in list of top solar power energy districts of India
17 May: The city is heading towards marking its entry in the list of top solar power energy districts of the country. The 225 megawatt (MW) solar power project established by NTPC Green Energy at Dodwa Jamauli in Bilhaur Tehsil is a big centre of Green Energy. This project ranks among the leading solar energy initiatives in Uttar Pradesh and is generating clean energy on a large scale. It is the largest solar project in the state to be operated at a single location. According to energy experts, the clean energy generated by this project has resulted in a reduction of approximately 1.96 million tonnes of carbon dioxide emissions to date. This is being hailed as a major achievement in the realm of environmental conservation. Experts believe that projects of this nature will strengthen a non-fossil-fuel-based energy system in the
Madhya Pradesh pushes solar beyond sunset with battery and hydro-backed storage
15 May: Madhya Pradesh is betting on stored solar energy to solve one of renewable power’s biggest challenges — electricity after dark — with new battery and pumped hydro-backed projects capable of powering lakhs of homes. Rewa Ultra Mega Solar Ltd (RUMSL), the state agency developing major solar parks, invited bids for two solar projects with a combined capacity of 250 megawatt (MW). Unlike conventional solar plants that generate electricity only during daytime, the new projects are designed to provide assured power supply during evening peak hours as well. The projects are technology-agnostic, allowing developers to choose suitable storage systems and set up facilities either inside or outside the solar parks depending on technical feasibility. The projects are aimed at providing stable and reliable renewable power to Madhya Pradesh Power Management Company Ltd (MPPMCL). The state had earlier recorded low tariffs in its Morena solar-with-storage project, encouraging authorities to expand similar models further. According to RUMSL, the broader renewable energy and storage programme forms part of India’s clean energy targets under its COP-26 commitments.
India has 11k GW geothermal heat potential, 450 GW power capacity
15 May: India has an estimated geothermal heat potential of 11,000 GW (gigawatt) and a possible geothermal power generation capacity of around 450 GW, according to a report released by Project InnerSpace in partnership with the Council on Energy, Environment and Water. The report highlighted India’s untapped geothermal resources and their potential role in supporting the country’s growing industrial, cooling and electricity demand while easing pressure on the power grid. The report noted that geothermal deployment in India has so far remained limited to pilot projects due to exploration risks. However, India possesses several geothermal hotspots across regions such as Ladakh, Himachal Pradesh, Uttarakhand, Chhattisgarh and parts of Gujarat and Maharashtra, which could support future clean energy development. India has primarily focused on solar, wind and hydropower expansion so far, while geothermal energy remains largely underexplored. Industry experts said large scale deployment would require stronger policy support, exploration investment and drilling infrastructure.
Varanasi ranks 10th in solar rooftop installation
15 May: Uttar Pradesh (UP) has emerged as a frontrunner in rooftop solar installations under the PM Surya Ghar Muft Bijli Yojana and Varanasi claimed 10th position, while Lucknow is at the top nationwide. The city is carving out a new identity in the field of green energy with rooftop solar panel installation, surpassing several major metros. A total of 39,018 rooftop solar plants have been installed in Varanasi so far.
Third unit of Yadadri thermal power station gets commissioned
13 May: The third unit of Yadadri thermal power station (YTPS) was successfully commissioned. The Telangana Power Generation Corporation Ltd (TG Genco) is establishing the thermal power plant with five units, each with a capacity of 800 MW and a total installed capacity of 4,000 megawatt (MW) at Veerlapalem Village, Damaracherla Mandal, Nalgonda district. The project consists of two units of 800 MW each in Stage-I and three units of 800 MW each in Stage-II. The third unit was operated continuously for 72 hours, generating an average power of 811.99 MW against the rated capacity of 800 MW, according to TG Genco.
Tata Power in talks with 3 states for its nuclear power project plan
12 May: Tata Power is in discussions with three states over its nuclear power projects, for which it is currently undertaking a feasibility study and expects a detailed project report (DPR) in the next six months. The company is engaged with the Nuclear Power Corporation of India Ltd (NPCIL) for its nuclear project plans.
India to shrink zones around nuclear reactors to free up land
11 May: India plans to reduce the size of exclusion zones around nuclear plants to free up significant amounts of land for reactor expansions, in a move to attract private investment that is likely to face backlash from opposition parties and the public. At present, all nuclear reactors in India have a minimum buffer of about 1 kilometre (0.62 miles) around reactors where no habitation or economic activity is allowed, a provision meant to keep radiation risks at a distance. India’s atomic energy regulator and the Department of Atomic Energy have approved an "in principle" plan to reduce these buffers. The changes are likely to be included in final rules that are due to be published in the next couple of months after the country opened its nuclear generation sector to private and foreign players last year. India aims to expand nuclear capacity to 100 gigawatt (GW) by 2047 from about 8 GW at present as part of its clean energy strategy. With smaller exclusion zones, a 10-reactor nuclear complex with 700 megawatt (MW) of capacity each could be set up within less than 700 hectares, the presentation showed. India's existing nuclear plants typically use around 1,000 hectares of land.
Government mulls incentives to boost floating solar panel installation
11 May: The government is mulling incentives for the installation of floating solar panels to ensure that renewable energy capacity is added nationwide and does not remain concentrated in a few states. New and Renewable Energy Secretary Santosh Sarangi said that the energy transition that India has envisioned focuses on affordability, availability and sustainability. He noted that the NITI Aayog projects by 2050, we would require 1,800 gigawatt (GW) of RE (renewable energy), along with a similar quantum of battery energy storage systems (BESS), that is about 2,000 gigawatt hour (GWh) of BESS. He suggested that renewable energy installations, which are only happening in states like Rajasthan and Gujarat, need to be decentralised. Taking note of the issue of renewable energy curtailment, he said that the issue needs to be addressed on a very urgent and priority basis. India will be substantially investing in green energy corridors to tackle the issue of grid stability that is required for induction of renewable energy, he said, while emphasising the critical need to strengthen transmission infrastructure to support India’s expanding renewable energy capacity. Reducing costs will require a combination of technological innovation, improved efficiencies and scaled investments across the renewable energy value chain, he said.
India shaping global change through renewable energy expansion: Environment Minister
11 May: India is uniquely positioned to emerge as a global leader by combining innovation with resilience, economic growth with sustainability and development with social inclusion, Union Environment Minister Bhupendra Yadav said. He said that the country is the world’s fastest-growing major economy and is helping shape global change through renewable energy expansion, digital public infrastructure, start-up growth and manufacturing.
NTPC to approach Centre with feasibility report for its first nuclear power plant
11 May: NTPC Ltd will soon approach the Centre with the feasibility report for its first nuclear energy plant in the country, as India looks to increase its atomic power capacity from the current 9 gigawatt (GW) to 100 GW by 2047. NTPC has completed a feasibility study in one of the 14 states where it intends to set up nuclear energy plants over next few years, while work on at least two more is underway. They added that the power giant has also identified land for a nuclear power plant in Bihar’s Banka district and received state’s nod to prepare a detailed project report. NTPC has set a target of setting up 30 GW of nuclear power capacity across 14 states by 2047. Approval from the Centre will pave the way for the public sector undertaking to begin work on its first standalone nuclear project, as it aims to achieve at least 2 GW of nuclear capacity by 2032. The standing site selection committee of the department of atomic energy reviews such proposals and, if found technically feasible, forwards them to AEC (Atomic Energy Commission) for further processing.
NHPC commissions fourth unit of Subansiri Lower Hydroelectric Project, reaches 1 GW
9 May: Commercial operation of the fourth unit (250 MW) of NHPC’s 2,000 MW (8x250 MW) Subansiri Lower Hydroelectric Project (SLHEP) located in Arunachal Pradesh and Assam started. With the commissioning of this unit, SLHEP has achieved a total operational capacity of 1,000 megawatt (MW) out of its planned 2,000 MW capacity, marking a milestone in the project’s phased commissioning. The remaining units are expected to commissioned within the targeted timelines. The Subansiri project was initially planned to be completed by December 2012.
JBVNL plans to buy additional 100 MW of wind power
7 May: In an effort to enhance renewable energy sources, Jharkhand Bijli Vitran Nigam Ltd (JBVNL) has decided to procure 100 megawatt (MW) of wind power. The project is intended to support the discom (distribution company) in satisfying its renewable purchase obligation (RPO) mandates. Under the RPO framework established by the Jharkhand State Electricity Regulatory Commission, wind energy represents a compulsory category that discoms must satisfy, based on a specific percentage of their overall energy consumption. JBVNL intends to obtain the additional capacity through either short- or long-term supply contracts with qualified developers or power traders. Based on the expression of interest (EOI), a fundamental requirement is that energy must originate from wind installations that reached their commercial operation date (COD) on or after 31 March 2024.
Coal India commissions 100 MW solar power plant in Gujarat’s Banaskantha district
6 May: Coal India Ltd (CIL) has successfully commissioned a 100 megawatt (MW) solar power plant in Gujarat, marking a significant step towards expanding its presence in the renewable energy sector. The company received the official commissioning certificate on 4 May 2026, from the Gujarat Energy Development Agency (GEDA). The solar project is located at Bhadramali village in Deesa taluka of Banaskantha district. As per the certification, the plant has been operational with effect from 31 March 2026. This development highlights Coal India’s ongoing efforts to diversify its energy portfolio beyond conventional coal-based power generation. With this project, CIL is taking a concrete step towards sustainability while supporting the country’s transition to greener energy sources. The move reinforces the importance of solar power in meeting rising electricity demand in an environmentally responsible manner.
Italy’s government to extend cut in fuel excise duty
19 May: Italy will prolong a cut in fuel excise duties due to expire on 22 May as part of efforts to curb the spike in energy prices due to the war in the Middle East, top members of Prime Minister (PM) Giorgia Meloni’s government said. The European Commission rebuffed calls from Italy for more lenient budget rules on energy-related spending, saying member states should tackle the negative impact of the Iran war by using existing resources and tools. Italy has so far spent around €1 billion (US$1.16 billion) to cut excise duties on petrol and diesel pump prices. The measure was introduced in March and first extended in late April. Being highly dependent on imported energy, Italy is particularly vulnerable to supply disruptions linked to the U.S.-Israeli conflict with Iran.
Australia’s Santos achieves first oil at Alaska project
18 May: Santos, Australia’s no.2 oil and gas producer, said it had achieved first oil from the first phase of its Pikka development project in the US (United States) state of Alaska. The Pikka project is expected to reach a gross production plateau of 80,000 barrels of oil per day in the third quarter of fiscal 2026, with first sales revenue seen two to three months following first oil, Santos said.
China’s April oil throughput hits lowest since August 2022, inventories rise
18 May: China’s April crude oil throughput fell to the lowest since August 2022, as the Iran war curbed refinery runs in the world’s second-largest oil consumer. Refinery throughput fell 5.8 percent from a year earlier to 54.65 million metric tonnes, or about 13.3 million barrels per day (bpd), the National Bureau of Statistics data showed. Throughput in the first four months dropped 0.5 percent from a year earlier to 238.95 million metric tonnes, or 14.54 million bpd, according to the data. Chinese refiners' average crude processing utilisation rate slipped to 63.59 percent in April, down 4.7 percentage points from a year earlier, and was down 5.13 percentage points from March, according to Chinese consultancy Oilchem. The run cuts were due to negative oil-processing margins, and Chinese independent refineries are expected to deepen the cuts in May despite Beijing urging small refiners to maintain fuel production. Some of the smaller refiners had to shut their plants for maintenance in May. Although refinery operating rates in China declined, refiners raised gasoline and diesel yields. Combined with demand destruction from higher oil prices, this pushed gasoline and diesel inventories higher, Oilchem report said. China’s April oil imports dropped 20 percent year-on-year to 38.47 million tonnes, or 9.36 million bpd, hitting the lowest level in almost four years, a steeper decline than the drop in oil throughput. China’s oil production in the first four months was 72.74 million tonnes, or 4.43 million bpd, down 0.5 percent compared with a year earlier.
Iraq exported 10 mn barrels of oil through Strait of Hormuz in April
16 May: Iraq exported 10 million barrels of oil via the Strait of Hormuz in April, down from about 93 million barrels monthly before the Iran war, the country’s new Oil Minister Basim Mohammed said. The closure of the Strait of Hormuz due to the Iran war has curtailed oil exports from Saudi Arabia, the UAE (United Arab Emirates), Kuwait and Iraq, sending prices sharply higher. Iraq is currently producing 1.4 million barrels per day (bpd). The country’s crude exports through the Kirkuk–Ceyhan oil pipeline resumed in March, after Baghdad and the Kurdistan Regional Government agreed on restarting flows. Baghdad is in talks with Ankara on a new cooperation agreement covering upstream and downstream projects, expanding on a previous deal that was limited to crude exports, the Minister said. Iraq plans to engage with OPEC (Organization of the Petroleum Exporting Countries) to boost the country’s production and export capacity, the Minister said. Baghdad aims to reach a production capacity of 5 million bpd through this dialogue.
Rising diesel costs from Iran war strain United States school budgets
16 May: Soaring diesel prices since the onset of the Iran war are draining already tight US (United States) school district budgets, making it more expensive to bus students and run generators in a shock officials say they will not be able to afford for long. School districts from Yakima, Washington, to Waco, Texas, are tapping emergency funding reserves to keep buses running. In remote Alaska, officials are scrambling to secure enough fuel to keep the lights on. The stress reflects one of many knock-on impacts of the US-Israeli war on Iran, which has disrupted the flow of around a fifth of the world’s oil supplies. US school bus operators are major buyers of diesel, consuming more than 800 million gallons of diesel annually, according to the American School Bus Council.
UAE’s new oil pipeline push to double export capacity bypassing Hormuz
15 May: The United Arab Emirates (UAE) will accelerate construction of a new oil pipeline to double its export capacity via the port of Fujairah by 2027, vastly expanding its ability to bypass the Strait of Hormuz. Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed directed the Abu Dhabi National Oil Company (ADNOC) to fast-track the West-East Pipeline project during an executive committee meeting, ADMO said. The pipeline is under construction and expected to start operating next year. Since the outbreak of the Iran war, Tehran has significantly expanded its definition of the strait and, consequently, the maritime area it claims control over. The existing Abu Dhabi Crude Oil Pipeline (ADCOP), also known as the Habshan-Fujairah pipeline, can carry up to 1.8 million barrels per day (bpd) and has proved crucial as the UAE seeks to maximise exports from the Gulf of Oman coast, just outside the strait. The UAE and Saudi Arabia are the only Gulf producers with pipelines that export crude outside the strait. Oman has a long coastline on the Gulf of Oman, while Kuwait, Iraq, Qatar and Bahrain are almost wholly reliant on the waterway for shipments. ADNOC is targeting 5 million bpd of capacity by next year, a goal brought forward by three years. It said in May 2024 that capacity had reached 4.85 million bpd and has not provided an update since. The UAE produced just under 3.4 million bpd in January before the war, but output more than halved after the effective closure of the Strait of Hormuz forced ADNOC to shut in some production.
Argentina’s YPF registers US$25 bn oil project for RIGI investment scheme
15 May: Argentina’s energy firm YPF said the company has requested a large investment tax scheme known as RIGI apply to a US$25 billion oil project aimed at accelerating development of the Vaca Muerta shale formation. The project, known as LLL, represents Argentina’s most significant oil export program and is the largest to be submitted under the Incentive Regime for Large Investments (RIGI), according to CEO (chief executive officer) Horacio Marin. LLL Oil targets production of 240,000 barrels of crude per day from 2032 with drilling 1,152 wells, with all output directed for export.
Angola aims to hold oil output steady over next year: Petroleum Minister
14 May: Angola aims to hold its oil output steady over the next year, its Petroleum Minister Diamantino Azevedo said. Higher prices from its crude exports due to the Iran war are helping to offset increased costs for imported fuels. The African nation left producer group OPEC in 2024 over a disagreement about output quotas, although production since has fallen from 1.16 million barrels per day (bpd) in 2024 to 1.07 million bpd in 2025, according to the International Energy Agency (IEA). Angola is developing more oil refining capacity that will help it become self-sufficient and turn into an exporter of fuels, he said. The Cabinda refinery is working at 30,000 bpd and another 30,000 bpd of capacity at the plant will be added later, he said. Construction of the Lobito refinery, being developed by state oil company Sonangol and due to be the country’s largest at 200,000 bpd, is about half complete and expected to be finished by 2029, he said.
Russia’s oil output down 460k bpd year-on-year in April: IEA
13 May: Russia’s crude oil production declined by 460,000 barrels per day (bpd) in April from the same month a year ago to around 8.8 million bpd, the International Energy Agency (IEA) said, as Ukraine ramped up drone attacks on energy targets. Crude exports, meanwhile, increased by 250,000 bpd from March to 4.9 million bpd, as disruptions in Gulf supplies caused by the Iran war attracted new buyers for Russian oil. Since March, Ukraine has unleashed waves of drone strikes on some of Russia’s biggest oil ports and attacked refineries in an effort to drain Moscow’s war economy. Russian oil output peaked in the late 1980s but cratered after the 1991 collapse of the Soviet Union due to a lack of investment. It recovered in the 2000s and 2010s reaching a post-Soviet peak in 2019 just before the COVID-19 pandemic. The IEA said the rebound was driven by higher seaborne shipments via the Baltic Sea - an increase of 190,000 bpd from March - and a partial resumption of Druzhba pipeline flows to Hungary and Slovakia, which reached 60,000 bpd in the final week of April.
Vietnam imports more fuel to offset oil shortfall amid Iran war
13 May: Vietnam ramped up imports of refined oil products after the outbreak of the Iran war to offset a drop in crude supplies for the country’s refineries, customs data shows. The shift helped the Southeast Asian industrial hub cushion the impact of the Gulf crisis. But it also contributed to an unusual trade deficit for the export-reliant economy and a sharp rise in consumer prices, which jumped 5.46 percent in April, above the 4.5 percent target set by the government. In the March to April period, Hanoi increased its imports of refined oil products by nearly 17 percent from a year earlier by volume and by 144 percent in dollar terms, according to data. The country purchased more from Malaysia and South Korea to offset falling fuel shipments from Singapore and China. Imports of Malaysian oil products nearly doubled to 403,000 tons, surpassing China as Vietnam’s third-largest provider of refined oil products. Vietnam’s imports of refined oil products after the outbreak of the Iran war increased from South Korea and Malaysia, more than offsetting drops in shipments from Singapore and China
Libya aims to restart Ras Lanuf oil refinery within a year: NOC
13 May: Libya aims to restart its 220,000 barrel per day (bpd) Ras Lanuf oil refinery within six to 12 months to supply the domestic market, National Oil Corporation (NOC) chairman Masoud Suleman said. The refinery, Libya’s largest, has been idle since 2013 amid an arbitration dispute between NOC and its Emirati partner in the plant Trasta. NOC said it had signed a final agreement with Trasta to end the partnership, transferring the Ras Lanuf complex and refinery to full Libyan ownership and control. Libya’s oil sector, the country’s main source of income, has faced repeated disruption from local and wider political unrest since the 2011 NATO-backed uprising that toppled Muammar Gaddafi. The 120,000 bpd Zawiya refinery shut due to nearby clashes. Suleman said output from Ras Lanuf would mainly serve the domestic market and be marketed by NOC subsidiary Brega Oil Company. NOC expects initial run rates of about 200,000 bpd, gradually ramping up to full capacity, he added. The refinery will run on Libya’s Amna crude grade.
Global oil supply to plunge below demand this year due to Iran war: IEA
13 May: Global oil supply will fall short of total demand this year as the Iran war wreaks havoc on Middle East oil production and drains inventories at an unprecedented pace, the International Energy Agency (IEA) said, upending its earlier outlook calling for a surplus. The US (United States) and Israel’s war with Iran, subsequent damage to Iran and its Gulf neighbours' oil infrastructure and the effective closure of the Strait of Hormuz have caused the largest oil supply crisis in history in the IEA’s view, sending oil prices skyrocketing. OPEC (Organization of the Petroleum Exporting Countries) in a report highlighted falling output as the Iran war constrains exports from some of its top producers in the Middle East. The IEA forecasts imply that supply will come in 1.78 million bpd below total demand in 2026, erasing a 410,000 bpd surplus projected in last month’s report and a close to 4 million bpd surplus in its December report.
South Korea’s SK Energy advances crude unit turnaround to mid-May
11 May: South Korea’s SK Energy has brought forward the maintenance of a crude unit at its Ulsan refinery to mid-May from end-May. The No. 5 crude distillation unit (CDU), with a processing capacity of 260,000 barrels per day (bpd), will be shut for about a month. SK Energy’s Ulsan refinery complex consists of five CDUs with a total processing capacity of 840,000 bpd. Two other CDUs at the site are currently shut. The company plans to restart the 170,000 bpd No. 3 CDU in mid-May, which was shut in early April after the refinery’s crude supply was disrupted by the US (United States)-Israeli war with Iran. Works on the 60,000 bpd No. 1 CDU, which was shut in late March, will last until mid-June.
Japan to receive first Central Asian crude oil since Iran war started
11 May: Japan’s industry ministry said a tanker carrying Azerbaijani crude oil was set to arrive as early as with the first cargo of oil received from Central Asia since the Iran war began in February. Before the US (United States)-Israeli war with Iran broke out in late February, Japan relied on the Middle East for about 95 percent of its crude oil imports. Iran’s retaliatory shutting of most tanker traffic through the Strait of Hormuz has curtailed those shipments, requiring the country to seek alternative supply. Japan’s refineries were largely designed to process Gulf crude to meet growing fuel demand during its economic expansion after World War Two. Japan has imported oil from Azerbaijan before but the cargo arriving at Yokohama and bound for Eneos would be the first since the Iran war started, Japan’s Ministry of Economy, Trade and Industry said. Japan has turned to the US, aside from other sources, and imported a crude oil cargo from Russia’s Sakhalin-2 project that was exempted from sanctions. Japan largely stopped importing crude oil from Russia and joined sanctions against it after Moscow’s full-scale invasion of Ukraine in 2022. Japan has opened its oil stockpiles to deal with the Middle East shortfall, releasing enough for about 50 days of consumption on 16 March, later adding around five days' worth of consumption from joint stockpiles and tapping another 20 days' worth from 1 May.
Strait of Hormuz disruption could push oil market recovery into 2027: Saudi Aramco CEO
11 May: Disruption to oil exports via the Strait of Hormuz is threatening to delay the market’s return to normal until 2027, Saudi Aramco CEO (chief executive officer) Amin Nasser warned. The recovery could drag into 2027 if the situation continues until mid-June, Nasser said. The impact of the Iran war, including the effective closure of the strait, has already been called the biggest disruption to the energy market in history. The market is losing around 100 million barrels of oil a week, Nasser said. Aramco has ramped up exports via the East-West pipeline to the Red Sea port of Yanbu to help sustain some 60-70 percent of its crude export volumes.
Turkey set to receive its first shipment from US emergency oil stash
11 May: A cargo of crude oil loaded from the United States (US) Strategic Petroleum Reserve (SPR) is heading to Turkey, the first shipment of US emergency reserve oil to the Mediterranean country, ship tracking data showed. The US is in the process of releasing 172 million barrels from the SPR in a bid to combat spiking crude prices, as the war in Iran has upended global supplies with the critical chokepoint, the Strait of Hormuz, remaining largely closed. The move is part of a coordinated effort by the International Energy Agency to release a record 400 million barrels of oil to quell rising prices.
OPEC oil output hits new low in April on Hormuz export disruption
11 May: The Organization of the Petroleum Exporting Countries (OPEC) oil output dropped further in April to the lowest in more than two decades, a survey found, as the US (United States)-Israeli war with Iran effectively closed the Strait of Hormuz and forced export cuts. Crude output by the 12-member OPEC in April fell by 830,000 barrels per day (bpd) month-on-month to 20.04 million bpd, the survey found. Eight members of the OPEC+ producer group, which includes OPEC plus allies including Russia, had agreed to resume oil production hikes in April, although the outbreak of the Iran war on 28 February and effective Hormuz closure made it impossible to deliver on the agreement. Kuwait experienced the group’s biggest drop in production in April, reflecting a whole month of disruption to exports, the survey found. Saudi Arabia and Iraq had further declines, although the United Arab Emirates (UAE) was the only Gulf member able to increase production. Like Saudi Arabia, the UAE has an export route bypassing Hormuz and tanker data shows higher UAE exports in April. April’s output is the lowest by OPEC since at least 2000, excluding membership changes since then according to surveys, and is significantly below the levels reached during the COVID-19 pandemic in 2020 when demand collapsed. Besides the UAE, which left OPEC with effect from 1 May, Venezuela and Libya raised output during April, the survey found.
Two more crude oil tankers exit Strait of Hormuz with trackers switched off
11 May: Two more tankers laden with crude exited the Strait of Hormuz with trackers switched off to avoid Iranian attacks, Kpler shipping data showed, underscoring a rising trend to sustain Middle East oil exports. The very large crude carrier (VLCC) Basrah Energy loaded 2 million barrels of Upper Zakum crude from Abu Dhabi National Oil Company (ADNOC)’s Zirku terminal on 1 May and exited the Strait of Hormuz on 6 May, the data showed. The Panama-flagged vessel offloaded its cargo at the Fujairah Oil Tanker Terminals on 8 May, according to the data. ADNOC and its buyers have recently sailed several tankers loaded with crude through the Strait of Hormuz in a bid to move oil stranded in the Gulf by the Middle East conflict.
US issues new sanctions over Iran's oil shipments to China
11 May: The United States (US) government announced sanctions against three people and nine companies, including four based in Hong Kong and four in the United Arab Emirates (UAE), for aiding Iran’s shipment of oil to China. The ninth company is based in Oman. The US Treasury move follows sanctions announced on individuals and companies aiding Iranian purchases of weapons and components used to make drones and ballistic missiles. It comes days before US President Donald Trump’s planned meeting with Xi Jinping, where he is expected to press the Chinese leader to help resolve the standoff with Iran and reopen the critical Strait of Hormuz. Treasury said the new designations by the Office of Foreign Assets Control (OFAC) were aimed at individuals and entities that helped Iran’s Islamic Revolutionary Guard Corps sell and ship its allotment of Iranian oil to China using a series of front companies. Treasury said the IRGC relies on shell companies to arrange and receive payment for its allotment of Iranian oil shipments. It said action builds on sanctions imposed in July 2025 on Golden Globe, a Turkey-based company that Treasury said handles hundreds of millions of dollars in IRGC oil sales annually. Dubai-based Ocean Allianz Shipping LLC and Sharjah-based Atic Energy FZE, which facilitated shipments of Iranian oil on five sanctioned shadow fleet tankers in 2025.
Libya’s Zawiya oil refinery shut due to nearby clashes
8 May: Libya’s largest functioning oil refinery has been closed and an emergency declared after clashes erupted near the facility in Zawiya, west of the capital Tripoli, the refinery’s operator said. The refinery, around 40 km (25 miles) west of Tripoli, has a capacity of 120,000 barrels per day (bpd). It is connected to the country’s 300,000 bpd Sharara oilfield. Operator Azzawiya Oil Refining Company said it was forced to shut the plant completely and evacuate all tankers from the port after heavy shelling linked to the clashes struck multiple locations inside the facility. Libya’s National Oil Corporation (NOC) said that several heavy-calibre projectiles landed in various parts of the oil complex but there had been no significant damage so far. Clashes had intensified and spread into the residential area adjacent to the refinery, increasing risks to the facility and surrounding areas, NOC said. NOC said the refinery had been shut and all tankers evacuated from the port as a precautionary measure, and that fuel supplies to Tripoli and surrounding areas had not been affected.
Asia gets first Mexican fuel oil cargo in 9 months after Mideast disruption
8 May: Asia received its first fuel oil cargo from Mexico in nine months, with more to follow, as higher Asian prices draw supply after the loss of Middle East cargoes due to the Iran war, according to shipping data. The incoming cargoes from Mexico will ease some concerns about declining inventories in Asia’s trading and bunkering hub Singapore, after the Iran conflict choked off most fuel oil supplies from key exporters in the Middle East like Iraq and Kuwait via the Strait of Hormuz. Fuel oil traders said that strong Asian prices are pulling cargoes to Asia while there is excess supply in the Americas.
Singapore’s oil product stocks hit over nine-month lows as US-Iran war cuts supply
7 May: Oil product stocks in Asia’s oil hub Singapore hit their lowest in more than nine months after the US (United States)-Iran war curtailed Middle East crude and fuel exports. Combined onshore oil product stocks totalled 44.83 million barrels in the week to 6 May, the lowest since late July 2025, Enterprise Singapore data showed. Stocks for light and middle distillates - gasoline, diesel and jet fuel - slid while residual fuel inventories held near a one-year low as imports from the Middle East remained near zero. Residual fuel inventories - the most stored oil product in Singapore storage tanks that typically goes into ships as marine fuel - totalled 19.88 million barrels, up 387,000 barrels on the week, hovering near the 50-week low of 19.488 million barrels in the previous week. Fuel oil traders have been sourcing more supplies from the West after the war crimped shipments from key Middle Eastern exporters such as Iraq and Kuwait. Middle distillates stocks fell 844,000 barrels to 10.077 million barrels from, though they held above last year’s average of 9.55 million barrels. The city-state turned into a net gasoil importer for the first time in almost three months, as total imports rose more than two times from a week earlier, while total exports fell by 5 percent from a week earlier.
Kentucky governor to cut gasoline tax as war-driven price surge continues
6 May: Kentucky governor Andy Beshear has moved to reduce the state’s gasoline tax by 10 cents as residents continue to grapple with rising prices at the pump as a result of the US (United States)-Israeli conflict with Iran. The Democratic governor said he would postpone a 0.6 cent per gallon increase in the state’s current 26.4 cent tax, which had been due to take effect July 1, and that together the moves will save state residents roughly US$1.7 million a month. Kentucky residents pay US$4.317 on average at the pump, according to the American Automobile Association. A month ago, during the early stages of the Iran conflict, they were paying US$3.910 on regular gasoline. The national average retail price of gasoline surpassed US$4.50 a gallon for the first time since July 2022, GasBuddy data showed.
US LNG export plant gas flows set to hit 16-week low despite expected return of Golden Pass
19 May: The amount of natural gas flowing to the nine big United States (US) liquefied natural gas (LNG) export plants looked set to hit a 16-week low even though QatarEnergy/Exxon Mobil’s Golden Pass plant in Texas was on track to return, according to financial company LSEG data. The US became the world’s biggest LNG exporter in 2023, surpassing Australia and Qatar, as surging global prices fed demand for more low-cost US gas. That US gas has become increasingly important in meeting growing demand for energy around the world in recent years as supply disruptions linked to Russia’s 2022 invasion of Ukraine and the US-Israeli war with Iran caused global gas prices to spike. Average gas flows to US LNG export plants fell from a monthly record high of 18.8 billion cubic feet per day (bcfd) in April to 16.9 bcfd so far in May, according to data, due to spring maintenance reductions at several plants, including the Golden Pass and Freeport LNG’s export plant in Texas. On a daily basis, LNG feedgas was on track to fall from 16.3 bcfd to 15.1 bcfd, the lowest since 27 January. One billion cubic feet is enough gas to supply around five million US homes for a day.
Norway’s Equinor sign’s 5-year gas supply deal for Germany with Eneco
19 May: Norway’s Equinor said it has signed a five-year gas supply agreement with Dutch energy firm Eneco for deliveries to its Germany subsidiary. The agreement to supply Eneco’s German subsidiary LichtBlick covers an annual volume of about 2.2 terawatt hour (TWh), or roughly 0.2 billion cubic meters (bcm) per year, running until 2030, the company said. It marks the second deal between Equinor and Eneco this year, following a five-year agreement signed in February to supply 0.5 bcm per year to the Netherlands. Both deals also include Eneco purchasing guarantees of origin from Equinor to certify a lower-than-average greenhouse gas footprint of the delivered natural gas.
Tanker delivers Russian LNG to China after almost six months at sea
19 May: A gas carrier has delivered a liquefied natural gas (LNG) cargo from Russia to China after almost half a year at sea, LSEG ship-tracking data showed, with Russia facing challenges to sell LNG due to Western sanctions over Ukraine. According to the data, gas carrier Perle docked at China’s Beihai LNG terminal. It took the cargo from Russia’s LNG Portovaya, which is under US (United States) sanctions, on 8 December. Depending on the route, it usually takes up to 45 days to deliver an LNG cargo from Russia to Asia. Russia’s largest LNG producer Novatek uses the same loading outlet in China for cargoes from its Arctic LNG 2 plant, which is also under sanctions. That’s the third cargo supplied to China from the plant on the Baltic Sea since Washington imposed sanctions in February 2025. The first cargo was delivered last December. In the early stages of its operations, most cargoes from Portovaya were delivered to Turkey and Greece. Supply markets subsequently widened to China, Spain and Italy.
Australia holds off on gas export curbs after supply assurances
15 May: Australia will not impose export restrictions on natural gas during winter after exporters assured the government of sufficient supply for its east coast markets, Resources Minister Madeleine King said. The government said in April it was considering activating the Australian Domestic Gas Security Mechanism (ADGSM) in the third quarter, which would have required exporters to prioritise local supply. The ADGSM allows the government to restrict exports from the three east coast liquefied natural gas (LNG) plants operated by Origin Energy, Shell and Santos. In April, the competition watchdog warned wholesale gas supply on the east coast was likely to tighten over winter.
BP considers sale of some Egyptian gas assets
15 May: Oil major BP is considering selling some of its natural gas assets in Egypt, as new CEO (chief executive officer) Meg O'Neill restructures the group to cut debt and refocus on more profitable projects. BP has invested more than US$35 billion in Egypt over six decades, producing about 60 percent of the country’s natural gas through joint ventures in the East Nile Delta and BP-operated fields in the West Nile Delta. The West Nile Delta development includes five gas fields across the North Alexandria and West Mediterranean Deepwater offshore blocks in the Mediterranean. BP produced 518 million cubic feet per day of natural gas in Egypt last year, down about 40 percent from 2024 and nearly 60 percent from 2023. It announced in April a gas and condensate discovery off the coast of Egypt and earlier in the year was awarded the North-East El Alamein and West El Hammad offshore exploration concessions.
China’s Sinopec books major reserves in ultra-deep shale gas find
14 May: Chinese oil major Sinopec said it has booked large proven reserves of gas at its ultra-deep Ziyang Dongfeng shale gas field. It said it had secured official approval for proven geological reserves of 235.687 billion cubic meters (bcm) for the Ziyang Dongfeng field, which lies deeper than 4,500 meters in the Sichuan Basin. To overcome the challenges of exploring and evaluating the formation deep underground, Sinopec said it had used artificial intelligence integrated with geophysical imaging to identify the reservoir. Sinopec brought its first major shale gas field, Fuling, into operation in 2017. Between 2018 and 2025, the company also confirmed several deep shale gas fields with reserves of more than 100 bcm, including Weirong, Qijiang, Yongchuan and Hongxing.
Australian energy producer Santos to proceed with gas tie-in project in Papua New Guinea
12 May: Australian energy producer Santos said it will proceed with the Agogo tie-in project in Papua New Guinea after approval from the PNG LNG joint venture, in which it holds a 39.9 percent stake. The project will provide gas from Santos-operated Agogo production facility to the PNG LNG gas pipeline, with Santos' share of capital expenditure being nearly US$160 million. A new 19-km (kilometre) pipeline will link the production facility to the existing PNG LNG gas pipeline, with first production of gas expected in the second quarter of 2028, the company said.
Freeport LNG in Texas boosts gas intake over weekend after train shutdown
11 May: Freeport LNG’s export plant in Texas took in more gas and was on track to take in more gas after one of its three liquefaction trains shut, according to the financial firm LSEG data. Freeport is one of the world’s most closely watched liquefied natural gas (LNG) export plants because the shutdown and startup of the facility have previously caused massive price swings in global gas markets. When Freeport shuts, US (United States) gas prices usually drop because demand for the fuel from the plant declines, and when liquefaction trains at Freeport restart, US gas prices usually rise as demand for the fuel increases. LSEG data showed gas flows to Freeport fell to 1.4 billion cubic feet per day (bcfd) on 8 May, before rising to around 1.9 bcfd on 9 to 10 May and so far on 11 May. That compares with an average of 1.9 bcfd during the prior seven days from 1 to 7 May. The three liquefaction trains at Freeport are capable of turning about 2.4 bcfd of gas into LNG. One billion cubic feet of gas is enough to supply about 5 million US homes for a day.
Italian energy group Eni’s Geliga-1 gas discovery posts strong test results offshore Indonesia
7 May: Italian energy group Eni said its Geliga-1 gas discovery offshore Indonesia delivered strong test results, confirming high reservoir productivity and supporting potential fast-track development. The discovery is located in the Ganal PSC and is operated by Eni, with an 82 percent interest. China’s Sinopec, holds the remaining 18 percent. The Ganal PSC is included in a portfolio of 19 blocks - 14 in Indonesia and five in Malaysia - that will be transferred to Searah, the company jointly controlled by Eni and Malaysia’s Petronas. Searah, which is expected to start working by the end of June once it has completed the authorisation process, will combine assets, technical know-how and financial capacity to support growth in Southeast Asia. Based on the test results, the Geliga-1 well is estimated to produce a sustainable rate of approximately 200 million standard cubic feet per day of gas and about 10,000 barrels per day (bpd) of condensate, Eni said.
China’s April coal output ticks down 1 percent on year
18 May: China’s coal output inched down 1 percent year-on-year in April despite lower imports and a rise in coal-fired power generation during the month, the National Bureau of Statistics data showed, indicating a continued tight supply-demand balance. April output was 385.63 million metric tonnes, down from a record high of 440.62 million tonnes in March. Output over the first four months of the year reached 1.58 billion metric tonnes, down 0.1 percent compared with the same period in 2025. China’s thermal electricity production, which is generated mostly by coal-fired capacity, rose 3.1 percent in April and rose 3.6 percent over the first four months as a whole. China’s coal imports fell 14 percent year-on-year in April to 33.1 million tonnes.
Anglo American to sell Australian coal mines for up to US$3.9 bn
18 May: Anglo American said it has agreed to sell its steelmaking coal mines in Australia to United Kingdom (UK)-based miner Dhilmar for up to US$3.88 billion. The deal comprises US$2.3 billion upfront cash and an earnout of up to US$1.58 billion linked to coal prices, with proceeds earmarked to cut debt, the company said.
Southeast Asia’s power demand from data centres, EVs to grow by more than 100 TWh in next 5 years
18 May: Power demand growth for green industrial parks, data centres and electric vehicles (EVs) in Southeast Asia is forecast to grow by more than 100 terawatts hour (TWh) in the next three to four years, according to Bain & Company and Standard Chartered report. The demand from these sectors is expected to require more than US$200 billion of investments, according to the 2026 Southeast Asia’s Green Economy Report. More than half of this investment will go to data centres with almost all operators willing to pay a premium to avoid grid connection delays. Southeast Asia’s green economy is currently valued at US$290 billion and on track to reach US$430 billion by 2030. However, only around 60 percent of the US$540 billion in green spending announced across the region's power and EV value chains between now and 2030 is on a credible path to deployment under current conditions. About 50-60 percent of renewable energy projects in Vietnam, Thailand, and Indonesia have been cancelled in the last five years due to system constraints including unclear power purchase agreement structures, permitting, and grid connection rules. Southeast Asia’s power demand growth is expected to exceed the pace of grid upgrades, as there is an estimated US$18 billion annual shortfall in grid investments by 2035.
Vietnam urges businesses, households to cut electricity use as consumption reaches year high
15 May: The Vietnamese government has called on businesses and households to do more to save energy, with electricity consumption in the Southeast Asian country surging as a result of hot weather. Electricity consumption hit its highest level of the year, reaching 1.1 billion kWh (kilowatt hour), state utility EVN said. Coal-fired power plants account for 53.4 percent of electricity output during peak hours, with hydropower plants accounting for 26 percent. A new heat wave is forecast to hit Vietnam in the last week of May, the government said, putting pressure on the power grid. Businesses and households in Vietnam, a manufacturing hub, have in previous years suffered from blackouts during heat waves. EVN is seeking approval from the Ministry of Industry and Trade to raise its retail electricity price to absorb its accumulated losses, which stood at 5.6 trillion dong (US$212.4 million) at the end of last year. The Philippines warned of power cuts of up to seven hours across its two main grids due to heat and power plant outages.
Cuba’s electrical grid suffers partial collapse as protests flare
14 May: Cuba’s electrical grid suffered a partial collapse early, the country’s grid operator UNE said, snuffing out power across eastern Cuba and testing the patience of Cubans already exhausted from seemingly interminable blackouts amid a US (United States) fuel blockade. By mid-morning officials had restored power to some essential services in the region, the grid operator said, though much of Cuba east of Camaguey, including the island's second-largest city, Santiago de Cuba, remained largely without electricity. The Caribbean island of nearly 10 million people has reached a tipping point this month, as summer heat sets in and the vast majority - including in the capital Havana - suffer without electricity for 20 hours or more each day. The blackouts dramatically worsened in January after US President Donald Trump threatened tariffs on any nation supplying the island with fuel. Venezuela and Mexico, once the country's top suppliers of crude oil, have since cut off shipments.
Czech energy utility CEZ lifts 2026 profit outlook as Middle East conflict raises prices
14 May: Czech energy utility CEZ lifted its 2026 earnings outlook, due to a rise in prices and generation resulting from the Middle East conflict, as the Czech electricity producer posted a 6 percent rise in first-quarter adjusted net profit. CEZ said it expected higher realised prices of electricity, higher utilisation of coal-fired plants and increased coal mining volumes because of the Middle East crisis, which has led to a blockade of the Strait of Hormuz, a major global waterway for oil and gas. The company said it had pre-sold 31.9 terawatt hour (TWh)of its 2027 output at an average of €86 per megawatt hour (MWh), versus a previous price of €85.
Canada plans to double capacity of electricity grid by 2050
14 May: Canada unveiled a C$1 trillion (US$729 billion) strategy to double the capacity of its electricity grid by 2050, citing rapidly increasing power demand and the need for energy security. The announcement by Prime Minister Mark Carney comes as Canada’s electricity systems are under increasing strain due to industrial growth, demand from AI data centers and greater electric vehicle use. The country’s total electricity generation has fallen, however, due in part to droughts that have reduced hydroelectric capacity and the retirement of coal-fired power plants. The plan comes as Canada looks to reduce its trade reliance on the United States (US) due to President Donald Trump's tariffs. Canada’s regional electricity grids trade more with the US than they do with each other, and its US electricity imports have increased every year since 2020, according to the Canada Energy Regulator. The electricity strategy aims to use new investment tax credits to spur the construction of east-west electricity interties to connect regional power grids.
US state governor pushes for grid reforms as power bills swell
11 May: The United States (US) state governor of Maryland Wes Moore pushed for reforms in PJM Interconnection, the largest US electricity market, including long-term power contracts and a requirement that data centers pay for the costly infrastructure needed to serve them. PJM Interconnection covers 13 states across the Midwest and Mid-Atlantic regions and is home to the world’s largest concentration of data centers. A supply crunch in the market has sent household power bills sharply higher and drawn growing political scrutiny. PJM is weighing major changes to rein in data center demand and rebalance regional electricity supply after roughly two years in which demand from Big Tech companies for their server warehouses has outstripped the addition of new supplies on the grid. PJM said it recognized the pressure caused by rising power bills in the region and that it was working to expedite the addition of more electricity supplies to the grid.
Texas off-grid power build soars as data centers bridge grid delays
6 May: The development of behind-the-meter (BTM) power generation is booming in Texas as data center developers seek to deploy facilities faster than grid connections can be completed. Over 20 gigawatt (GW) of BTM power projects for data centers were announced in Texas in 2024-2025, compared with 56 GW nationwide, according to Cleanview data. A further 10 GW was announced in Texas in January-April 2026. In March, Fermi America pledged to add 5 GW of gas-fired capacity to its Project Matador BTM private grid, resulting in 17 GW of total campus capacity including 11 GW of natural gas and 4.4 GW of nuclear energy, solar and battery sources. Some proposed BTM projects in Texas include large, fully off-grid power setups. However, fully off-grid power systems are unlikely to become the main model because ensuring reliability requires significant redundancy, which often sits idle much of the time.
Rwanda to explore deployment of small nuclear reactors with United States help
19 May: Rwanda signed agreements on civil nuclear cooperation with the United States (US) and US company Holtec International, as it assesses the potential for deploying small nuclear reactors to boost its power supply and support economic growth. Holtec said its development agreement with Rwanda was to advance the deployment of its SMR-300 units. Small Modular Reactors (SMRs) are smaller than conventional nuclear reactors. There is a global push to advance SMRs due to lower construction costs and quicker deployment times, but there are doubts over whether they will ever become widespread. South Africa has the African continent’s only operational nuclear power plant. Russian state nuclear company Rosatom is building another in Egypt. Rwanda Atomic Energy Board chief executive officer (CEO) Fidele Ndahayo said Rwanda aimed to have its first nuclear reactor operating by the early 2030s. He said the agreement with Holtec was about assessing possible sites and considering whether the SMR-300 can be used when the technology matures.
China’s April fossil-fuelled power generation up 3 percent
18 May: China’s fossil-fuelled power generation rose 3.1 percent year-on-year in April, the National Bureau of Statistics data showed. Thermal power generation, mostly from coal with a small amount from natural gas, rose 3.6 percent over the first four months as a whole, compared with 2025. Overall power generation was 744 billion kilowatt hour (kWh) in April, up 2.6 percent compared with the same period of last year. Over the first four months as a whole, power generation reached 3.12 trillion kWh, up 3.3 percent compared with the same period of last year. The data may underestimate total power generation as it reflects output from industrial enterprises with revenue above 20 million yuan (US$2.94 million), excluding some small-scale renewables. Hydropower volumes rose 12.2 percent in April and rose 9.9 percent over the first four months.
US oil refiners finally profit from biofuels due to mandates, high fuel prices
15 May: United States (US) oil refiners are finally reaping profits from renewable fuels, which had squeezed margins for years, but now demand has surged thanks to recent government biofuel mandates and rising diesel prices driven by the US-Israeli war on Iran. In late March, the US Environmental Protection Agency (EPA) mandated that refiners blend record volumes of biofuels into gasoline and diesel this year and next. The plan includes a 60 percent increase in the use of biodiesel and renewable diesel, along with a long-standing requirement to mix about 15 billion gallons of ethanol into gasoline each year.
Solar to surpass coal in Texas power generation in 2026: EIA
13 May: Annual electric power generation from utility-scale solar will surpass that from coal for the first time in 2026 within the electricity grid, the US (United States) Energy Information Administration (EIA) said. Solar generation in the Electric Reliability Council of Texas (ERCOT) grid, which serves most of the state, is forecast to reach 78 billion kilowatt hour (kWh) in 2026, compared with 60 billion kWh from coal, the EIA said. Solar generation is expected to rise further to 99 billion kWh in 2027, versus 66 billion kWh from coal. Solar output has grown steadily in ERCOT as new capacity helps rapid electricity demand growth.
New Zealand plans law change to stop private climate lawsuits
12 May: New Zealand’s government said it would change climate legislation to prevent courts from finding companies liable in private cases for climate change-related harm caused by greenhouse gas emissions. Justice Minister Paul Goldsmith said the government would amend the Climate Change Response Act 2002 to apply to both current and future court proceedings, including a High Court case brought against six major emitters. A litigation case brought by climate change activist Michael Smith against six major greenhouse gas emitters including dairy giant Fonterra Co-Operative Group, is currently making its way through the courts with a trial date set for 2027. The novel case alleges the companies' emissions have contributed to climate change and harmed his land, interests and cultural rights. Goldsmith said the litigation was creating uncertainty for business confidence and investment, and that New Zealand's response to climate change should be managed nationally through the country's parliament, its Emissions Trading Scheme and existing climate legislation.
European Union proposes to give industries more free CO2 permits
11 May: The European Commission proposed giving more free emissions permits to industries over the next few years, potentially saving companies €4 billion (US$4.7 billion) in CO2 (carbon dioxide) costs. The proposals confirmed a report based on an internal EU document. The European Union (EU)’s carbon market is the bloc’s main tool for addressing CO2 emissions, which it does by forcing industries to buy CO2 emissions permits when they pollute. The scheme has come under growing political pressure from member states worried about Europe’s faltering economic competitiveness. Some heavy industries have urged Brussels to give them more free CO2 permits to ease the cost of complying. In the new proposal, industry will on average continue to receive free allocation covering around 75 percent of its emissions. Coverage of indirect emissions will lead to a higher benchmark, with an expected financial impact of around €4 billion between 2026 and 2030, the Commission said. The Commission will adopt the benchmarks by the end of June. The measures are part of a broader review of the system, due in July.
US EPA moves to speed clean air permits for power plants, industry
11 May: The United States (US) Environmental Protection Agency (EPA) said it would speed up the process for large polluters to obtain clean air permits, the latest move by the Trump administration to ease regulatory burdens on American power plants and industry. The move means the EPA may take fewer than 45 days to review so‑called Title V permits for big industrial facilities such as power plants. These permits set limits on emissions and outline how facilities like refineries, aluminium, smelters and other factories must operate. Under the Clean Air Act, the EPA has up to 45 days to object to a proposed permit after receiving it. However, the agency said its new guidance makes clear it does not have to use the full period. The Trump administration has launched a broad push to roll back environmental regulations, including limits on emissions from power plants and vehicles and protections for waterways, as part of its effort to cut costs for industry and boost energy production.
European renewable projects with batteries set to grow more than 450 percent by 2030
11 May: Europe’s co-located renewable power and battery capacity is expected to surge more than 450 percent by 2030, with Germany the most attractive country to build projects, Aurora Energy Research report showed. Renewable projects such as wind and solar in Europe are increasingly being developed with battery storage alongside them which allows generators to store power rather than sell it at a loss when there is excess on the system, and then discharge the power when prices recover. Europe’s co-located renewable capacity reached 6.3 gigawatt (GW) in 2025, led by solar-plus-storage which made up over 60 percent of deployments, the report said. This is expected to grow to around 35 GW by 2030.
Trump’s crackdown on China-linked solar firms stalls US factory boom
8 May: Top solar companies, banks and insurers have stopped doing business with at least a half dozen recently built US (United States) panel factories because of uncertainty over whether their ties to China could disqualify them from clean-energy subsidies. The shift, driven by new Trump administration policies, jeopardizes more than a third of US solar capacity in factories initially built by Chinese firms. Details of how the policy uncertainty is driving installers and insurers away from US solar factories with China ties have not been previously reported. The emerging effects dovetail with US President Donald Trump’s broader efforts to block Chinese companies from the US market and to slash government support for green energy. Sunrun, the largest US residential solar installer, is among the companies now avoiding Chinese suppliers. The potentially far-reaching effects on US manufacturing underscore the difficulty of decoupling from China’s global dominance of renewable energy and green technologies, driven largely by Beijing’s own heavy subsidies for Chinese firms.
Portugal’s EDPR upbeat on US renewables market, sees profitable growth and new opportunities
7 May: Portugal’s EDP Renewables (EDPR), the world’s fourth-largest wind power producer, remains optimistic about the US (United States) market and anticipates profitable growth despite moves by President Donald Trump to roll back renewables, its CEO (chief executive officer) Miguel Stilwell de Andrade said. Since last July, when Washington accelerated the phase-out of tax credits for renewable energy projects, EDPR has secured 1.4 gigawatt (GW) of new capacity in the US and expects significant growth in the coming months, CEO said. The US accounts for around 50 percent of EDPR’s total installed capacity of 20.5 GW and is a key contributor to its earnings. EDPR plans to invest €4.5 billion (US$5.30 billion) - roughly 60 percent of its total spending - there over the next three years. EDPR is upgrading old wind farms there, which will increase output, extend lifespan and improve returns, helped by new tax credits and lower costs.
Bangladesh turns to solar as Middle East crisis drives energy risks
6 May: Bangladesh has floated tenders for 495 megawatt (MW) of solar power, stepping up efforts to cut its reliance on imported fuel as the Iran war drives a global surge in energy prices. The Bangladesh Power Development Board (BPDB) has invited bids for 10 grid-connected solar projects, each ranging from 25 MW to 100 MW. Private investors will develop the plants, which are planned near existing substations to support grid stability and reduce strain on fossil fuel-based power generation. Final bid submissions are due on 28 June, BPDB said. Though Bangladesh has previously set renewable energy expansion targets, progress has been slow. But heightened geopolitical uncertainty is now adding urgency.
Europe’s solar glut shunts power system into tricky new transition phase
6 May: Europe’s solar surge has become one of the continent’s most visible energy transition success stories. But even the staunchest clean power advocates are now sensing there can be too much of a good thing. Solar power capacity has expanded far more quickly than any other power source in Europe so far this decade, surging by over 115 percent since 2020 and triggering a doubling in solar-powered electricity supplies flowing through regional grids. But the blistering growth pace has come with some complicated side effects. Steadily rising solar generation is no longer just displacing fossil fuel output. It is reshaping how Europe’s electricity prices behave and power markets function.
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