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India should cut thermal power dependence: Govt panel

  • Market: Coal, Electricity
  • 06/01/20

An Indian government panel has recommended lowering the country's reliance on thermal power over the next five years as part of a $1.4 trillion infrastructure spending plan.

The energy sector is proposed to account for as much as 24pc of the planned investment to be made by central and state governments and the private sector, with the power sector projected to get a large share of this, according to the panel's report that was released by India's finance ministry.

The panel forecast that India's installed electricity generation capacity will rise to 619GW by the financial year ending March 2025, up from 365.98GW now.

Thermal power generation capacity — which includes coal, natural gas, lignite and diesel-fired power plants — is projected to make up just 50pc of the total installed power generation mix by March 2025.

Thermal power currently accounts for 62.7pc of the country's installed capacity, which is dominated by coal.

Coal-fired electricity generation fell from a year earlier in December, amid an overall drop in power demand and stronger generation from sources such as hydropower. The weaker coal-fired electricity generation last month extended a trend of annual falls posted each month since August.

A key part of the plan is expanding electricity generation from renewable energy sources such as solar and wind. The proportion of installed power capacity based on renewable sources is expected to increase to 39pc from 23pc over the five-year period.

Some of the proposed investment will also go towards reforming debt-laden state-owned electricity distributors, dozens of which are operating at losses because of legacy issues related mainly to an inability to increase electricity tariffs.

These losses are likely to fall as the electricity distributors are expected to undertake a series of measures such as enhancing public-private-partnerships, regular tariff revisions and smart metering, the report said.

The proposal to seek more private-sector involvement fits with a move to attract investors to India's coal sector, as the government prepares to auction coal blocks for commercial mining.

The spending plan is part of prime minister Narendra Modi's push to propel the country's sagging economic growth. Providing round-the-clock electricity to all and promoting clean energy are central to his reform agenda.

By Saurabh Chaturvedi


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06/11/24

Trump victory raises climate law questions

Trump victory raises climate law questions

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Mozambique’s Maputo port halts receipt of coal cargoes


06/11/24
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06/11/24

Mozambique’s Maputo port halts receipt of coal cargoes

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EU expected to approve climate, energy commissioners


06/11/24
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06/11/24

EU expected to approve climate, energy commissioners

Brussels, 6 November (Argus) — Former Danish climate minister Dan Jorgensen is expected to be confirmed late this month as EU energy and housing commissioner, having received clear support after his hearing in front of EU parliament members. Similarly, centre-right political support is expected to ensure a vote for reconfirmation of Wopke Hoekstra as climate commissioner. Jorgensen has received approval from the joint hearing committee, after his hearing yesterday. During the hearing, he promised a plan for affordable energy, a roadmap to end Russian energy imports, a clean energy investment plan and an electrification action plan. He focused on cost, noting the need to work towards lower energy prices in Europe and recognised nuclear energy as "part of the solution". But Jorgensen avoided giving detail on contentious issues, adding no precise date for an end to Russian energy imports. Although he backed a 2040 renewables target, he gave no approximate percentage share, or range, for renewables in final energy consumption by that date. German member Christian Ehler said his centre-right EPP group would "in the end" support Jorgensen following "reasonable" performance. Ehler wants the future commissioner's statements on hydrogen and related delegated acts, especially on low-carbon hydrogen, to be "concretised quickly". Industry group SolarPower Europe welcomed Jorgensen's clarity around not seeking fundamental changes to electricity market rules, but their proper implementation. A power industry source, though, pointed to his "other ideas" on specifics, notably on how to increase market liquidity . Documents prepared for the 7 November hearing of current climate commissioner Wopke Hoekstra give little concrete detail on revision of the bloc's emissions trading system (ETS). Hoekstra is expected to take a similarly cautious approach as that of designated EU agriculture commissioner Christophe Hansen on ETS integration to cut agriculture's 11pc share of EU greenhouse gas (GHG) emissions. But Hoekstra is expected to be more open about using the 2026 ETS review to lower thresholds for EU ETS inclusion from 2031, including for maritime shipping, bioenergy with carbon capture and storage (Beccs) and direct air capture with carbon storage (Daccs). The European Parliament is expected to vote on the new commissioners during its 25-28 November plenary in Strasbourg. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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UK parliament approves SAF mandate from 2025


06/11/24
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06/11/24

UK parliament approves SAF mandate from 2025

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Q&A: French state auction for biomethane RGGOs


06/11/24
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06/11/24

Q&A: French state auction for biomethane RGGOs

London, 6 November (Argus) — France's first auction for state-owned biomethane renewable gas guarantees of origin (RGGOs) is due to take place on 4 December. It will be run by European Energy Exchange (EEX), which also manages the French biogas registry. Argus spoke to Aude Filippi, director of business development gas and sustainability markets at EEX, about biomethane RGGOs in France and the new auctions. Edited highlights follow: How are RGGOs currently traded in France? All RGGOs for biomethane injected into the French gas grid are currently exchanged via the over-the-counter (OTC) market, and the transfer of ownership is done via the French biogas registry. The RGGOs are tradeable for 12 months and usable for 18 months, and are issued in monthly intervals. The market has been growing quite significantly. Between January and September 2024, 8.5TWh of RGGOs were issued and 7.2TWh cancelled, while in 2023 there were 9.6TWh issued. Almost all of the issued RGGOs are cancelled, with very few expiring after 18 months. Why are the biomethane RGGO auctions being launched now? The French state owns all the RGGOs from biomethane produced from subsidised plants where the contract was signed after 9 November 2020, and now the French state wants to sell them. Even though the contracts were signed in 2020, it takes time to put biomethane into production, so very few of the RGGOs have expired so far. But the volume being produced is growing so it is important that we now have the auctions. What size volumes are you expecting to be in the new biomethane GOO auctions? We expect over 80,000MWh in the first upcoming auction, with volumes likely to increase in the following sessions. What buyers are you expecting to participate in the auctions? Essentially it will be the members of the French biogas registry that we have connected today. And some members connected to the French power GOO auctions at EEX might participate, so we expect that it will be a similar target group, but for gas. Will buyers be able to export the biomethane GOOs for use in other countries? Today we are not yet connected to a hub for the international trade of RGGOs. At the moment, we are working with the hubs to get connected. Why do the auctions have a mechanism for certain buyers to reserve volumes in the auction? The idea is that the operator of a production device will have the ability to buy the RGGOs produced from this particular device from the French state. They are then committing for one year at least to buy these RGGOs at the auction price plus a 30pc premium. By Emma Tribe Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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