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California sticks with coal exit despite grid concerns

  • : Coal
  • 16/06/23

Electricity from coal-fired power plants in other states helped keep the air conditioners running in southern California as the region struggled with record heat. But in a few years, that will no longer be the case.

California law prevents the Los Angeles Department of Water and Power (LADWP) and other municipal utilities from renewing contracts to import power from out-of-state coal-fired plants, which will essentially end coal electricity in the state by the middle of the next decade. Even with recent concerns about grid reliability, lawmakers in the state have little interest in reversing course on coal.

Southern California electricity grids have been stressed by the combination of very hot weather and limited natural gas supply after halting a four-month long gas leak at the Aliso Canyon storage field in February. On 20 June, as temperatures in some parts of the state rose above 100°F and electricity demand peaked at 44.5GW, the California Independent System Operator (ISO) and the LADWP warned grid stability in southern California was at risk. As temperatures moderated, electricity demand dropped to 34.5GW today.

During the record heat, consumers were asked to set air conditioners to 78°F or higher and only use major appliances after 9pm "to help avoid power outages."

Utilities also increased coal-fired power purchases early this week. But the gains were short-lived.

Capacity levels at Intermountain Power Agency's (IPA) 1,800MW coal-fired Intermountain Power Project were at 86pc on 19 June and 78pc the next day. By 21 June, the plant was back at 50pc capacity. The plant, which is in Utah, generally sells half of its power to LADWP.

"The units are not necessarily at full load, but the unloaded capacity is available as needed," LADWP said. The utility gets around 17pc of its electricity from coal plants in other states. Two years ago, electricity from coal accounted for 40pc of the utility's mix.

Electricity from IPA's plant is particularly attractive to some California utilities because of the direct-current transmission line that runs from the plant directly to the southern California power grid, which makes the power relatively inexpensive and easy to access.

But even in the wake of the Aliso Canyon gas leak that was discovered in October 2015, California has been steadfast in its commitment to move away from coal.

Some critics see coal as a contributor to the record heat. Coal plants release carbon dioxide in the atmosphere most scientists see as warming global temperatures.

Some coal executives do not agree, and most have asked state and federal governments to do more to foster investment in emissions control technology and other measures to keep coal in the mix.

The California ISO and LADWP earlier this year proposed stepping up use of hydropower resources and curtailing certain physical natural gas and wholesale power sales, among other ideas, to bolster electric reliability this summer, while governor Jerry Brown's moratorium on gas injections and restrictions on withdrawals from Aliso Canyon remain in place.

California's emission performance standard does not outright ban coal generation, but plans to comply with the restrictions will bring coal's share of the state's electric power mix down to 3pc by 2024 and zero shortly after that, the California Energy Commission said. In 2014, coal generation made up 6pc of the state's electricity mix.

The California ISO does not use any electricity from coal-fired power plants. It said it cannot foresee circumstances where electricity generated from coal would be used in its system.

The grid and LADWP said they are investing heavily in renewable energy. Coal is not the only other fuel source to suffer. California utility Pacific Gas & Electric (PG&E) said this week it would close the Diablo Canyon nuclear plant, which serves 3mn customers, by 2025. It said state policies supporting renewable energy, energy efficiency and storage negated the need to extend Diablo's operating licenses.

Natural gas has been playing a bigger role in California power generation as coal has been phased out, accounting for 57pc of the California ISO's energy mix on 10 June and about 39pc of the LADWP's energy mix this year. The state's suspension of gas injections and withdrawals is expected to remain in place well into the end of this year because field owner SoCal Gas has successfully completed integrity testing of only nine of 114 injection wells at Aliso Canyon.

That curtailment of gas supply could lead to rolling blackouts on 14 or more days this summer in southern California if daily gas use exceeds forecasts, state agencies have warned. But the concern is doing little to make state legislators and regulators change their minds on coal. When IPA's last contract with a California utility expires in 2027, coal-fired power sales to the state will be over.


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25/05/01

US factory activity contracts for 2nd month in April

US factory activity contracts for 2nd month in April

Houston, 1 May (Argus) — US manufacturing activity contracted in April for a second month, as output and new orders slowed on tariff policy uncertainty, while price gains accelerated. The Institute for Supply Management's manufacturing purchasing managers' index (PMI) fell to 48.7 in April, down from 49 in March and the lowest since last November. The threshold between contraction and expansion is 50. The two-month contraction in manufacturing activity follows a two-month expansion preceded by 26 consecutive months of contraction. ISM's services PMI, a separate report that tracks the biggest part of the economy, showed nine months of expansion through March. "Demand and production retreated and de-staffing continued, as panelists' companies responded to an unknown economic environment," ISM said Thursday. "Prices growth accelerated slightly due to tariffs, causing new-order placement backlogs, supplier delivery slowdowns and manufacturing inventory growth." The manufacturing data follows a report Wednesday that showed the US economy contracted at an annualized 0.3pc pace in the first quarter as businesses boosted imports and stocked up on goods ahead of US import tariffs. The ISM's new-orders index came in at 47.2, higher than 45.2 in March but showing contraction for a third month. The production index fell to 44, showing a deepening contraction from 48.3 in the prior month. Employment rose by 1.8 points to 46.5, showing a slowing contraction. New export orders contracted faster at 43.1 in April, while imports entered contraction at 47.1 after barely growing, at 50.1, the prior month. The prices index rose to 69.8, up from 69.4 the prior month and signaling quickening expansion. The inventories index fell by 2.6 points to 50.8, marking a second month of expansion after six months of contraction. By Bob Willis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indonesia's coal power phase-out hinges on funding


25/05/01
25/05/01

Indonesia's coal power phase-out hinges on funding

Manila, 1 May (Argus) — Indonesia's accelerated coal-fired power phase-out plan hinges on private-sector and international partners financial support, the country's energy ministry said, after issuing further guidance last month. Indonesian energy ministry ESDM published a ministerial regulation in early April outlining the criteria and processes for the early retirement of coal-fired power plants. But the plan will not be carried out if there is no clarity over funding for its energy transition efforts, in which case Jakarta will continue to prioritise domestic energy production, including through fossil-based sources, ESDM said this week. The Indonesian government will not use its state budget or funds from state-owned utility PLN to fund the early retirement of coal-fired plants, ESDM said. The new regulation details the evaluation processes for retiring coal-fired plants early, and emphasises the need for financial support from private-sector or international partners to achieve an accelerated phase out. Policy makers will evaluate the impact of a plant's retirement on the country's electricity grid, power supply and electricity tariffs, among other factors, when considering its phase out, ESDM said. It will also take into account aspects of the Just Energy Transition Partnership (JETP) climate financing pact signed with rich nations in 2022, such as the livelihood of employees affected by the phase-out, as well as a plant's capacity, age, utilisation, greenhouse gas emissions and economic value. The availability of foreign and domestic technological support will also be considered; according to ESDM. US president Donald Trump's decision to withdraw the US from the JETP raised concerns earlier this year on whether Indonesia could stick to its energy transition policies, but the country recently secured $60mn in JETP funding to develop a solar project . State-owned utility PLN will be tasked with studying the technical, legal, commercial and financial aspects of decommissioning plants that are put forward for early retirement, including funding sources. It will have to submit a report to the ministry no later than six months from the date a plant is identified for decommissioning, ESDM said. The share of renewables in Indonesia's power mix is expected to rise to around 21pc by 2030 and 41pc by 2040, according to think-tank Ember. By Antonio delos Reyes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

India’s TSPL starts up torrefied bio-pellet plant


25/04/29
25/04/29

India’s TSPL starts up torrefied bio-pellet plant

Singapore, 29 April (Argus) — India's private sector utility Talwandi Sabo Power (TSPL) has set up a torrefied bio-pellet manufacturing facility in the northern state of Punjab, to ensure steady biomass supply to its 1.98GW coal-fired plant. The pellet plant has a capacity of 500 t/d or 182,500 t/yr of torrefied bio-pellets, and use agricultural stubble or residue as feedstock, according to TSPL, a unit of mining conglomerate Vedanta. The Punjab region generates around 15-20mn t/yr of crop stubble, according to TSPL. The plant had already purchased over 800,000t of agricultural stubble, which it will convert to around 640,000t of torrefied bio-pellets. The utility is also targeting to reduce "5pc use of coal daily" by replacing the fuel with torrefied bio-pellets. TSPL also co-fires 450 t/d of torrefied biomass that is purchased from other suppliers in the open market. The utility typically seeks torrefied pellets made from agricultural residue with a minimum of 50pc raw material from stubble, straw, or crop residue from rice paddy. The gross calorific value of pellets procured for its plant usually ranges between GAR 3,400-5,000 kcal/kg. Vedanta's aluminium unit had also used biomass briquettes for power generation. Its alumina refinery in Lanjigarh, Odisha consumes about 20 t/d of biomass briquettes, according to Vedanta. The briquettes are made from agricultural residue sourced from farmers in India. By Nadhir Mokhtar Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump works to blunt renewables growth


25/04/28
25/04/28

Trump works to blunt renewables growth

Washington, 28 April (Argus) — US president Donald Trump has started to impede development of renewable energy projects he sees as boondoggles, but he is facing challenges to his attempts to halt government funding and tax credits for the sector. Trump has attacked wind turbines and solar projects as part of a "Green New Scam" that should not be built, based on his preference for the fossil fuel-fired and nuclear power plants he says are more reliable and affordable. Trump selected a cabinet of like-minded individuals who oppose renewables and see little urgency to address climate change. He was elected to end the "nonsense" of building renewable resources that are heavily subsidised, make the grid less reliable and raise costs, energy secretary Chris Wright said in an interview on Earth Day. Interior secretary Doug Burgum on 16 April ordered Norwegian state-controlled Equinor to "immediately halt" construction of the 810MW Empire Wind project off New York. Trump had already ordered a freeze on future offshore wind leases , and suspending Empire Wind's permits is likely to spook investors even outside the renewables sphere. To reverse course on a fully permitted project is "bad policy" that "sends a chilling signal to all energy investment", American Clean Power Association chief executive Jason Grumet says. The US last week separately said it would impose anti-dumping duties on solar components imported from four southeast Asian countries that will range from 15pc to 3,400pc. Those duties — in effect from June to support US solar manufacturers — will be in addition to a 10pc across-the-board tariff the US imposed this month on most imports. Solar industry groups have said that steep import duties will make new installations unaffordable, stunting the industry's ability to grow. Trump has had less success in his push to axe support for renewables approved under Joe Biden. On 15 April, a federal judge ordered the administration to unfreeze billions of dollars for clean energy projects provided by the Inflation Reduction Act (IRA) and 2021 infrastructure law. The administration lacks "unfettered power to hamstring in perpetuity two statutes", judge Mary McElroy wrote. In a separate ruling on 15 April, judge Tanya Chutkan prohibited the administration from suspending $14bn in grants distributed to nonprofits under the IRA for a greenhouse gas reduction programme. The administration is appealing both rulings. Targeting the windfall Trump could further undermine the growth of renewables by convincing Republicans in Congress to use an upcoming filibuster-proof budget package to repeal or narrow the IRA's tax credits for wind, solar and other clean energy projects. Critics of that law see the potential for $1 trillion in savings by repealing its tax credits, which could offset the costs of more than $5 trillion in planned tax cuts. But there appear to be enough votes in each chamber of Congress to spare at least some of the IRA's energy tax credits. In the Senate, where Republicans can only afford to lose three votes, Alaska's Lisa Murkowski and three other Republicans signed a joint letter this month saying "wholesale repeal" of the tax credits would fuel uncertainty and undermine job creation. In the House of Representatives, where Republicans have a similarly slim majority, 21 Republicans voiced concerns earlier this year about repealing all of the tax credits. Renewables are on track to overtake natural gas as the largest source of US electricity by 2030 — assuming the tax credits and climate rules enacted under Biden remain intact — the EIA stated this month in its Annual Energy Outlook . The amount of power from renewables under the EIA's existing policy baseline by 2035 will increase by 135pc to 2.8bn MWh, while gas-fired power will decline by 14pc to 1.6bn MWh over the same time period. By Chris Knight Baseline US net power generation Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Cement sales at India’s Dalmia fall on year in Jan-Mar


25/04/28
25/04/28

Cement sales at India’s Dalmia fall on year in Jan-Mar

Singapore, 28 April (Argus) — Indian cement maker Dalmia Bharat reported a 2.8pc decline on the year in January-March sales, although sales increased by a sharp 28pc on the quarter because of an uptick in demand. Bombay Stock Exchange-listed Dalmia sold 8.6mn t of cement over January-March, down from 8.8mn t a year earlier but well above the 6.7mn t sold in October-December 2024. Sales rose by 2pc to 29.4mn t in the 2024-25 fiscal year ending 31 March. Cement demand was "relatively slow" in the first three quarters of the last fiscal year at 3-3.5pc growth, while the industry's full-year growth is estimated at 4-5pc, the company said. It expects cement demand to grow by 7-8pc in the current year. The year-on-year decline in sales in January-March was because of a higher base in the year-earlier period, when the company sold 0.6mn tthrough a tolling arrangement in January-March 2024, Dalmia told investors on 24 April. This arrangement was discontinued in July 2024. Power and fuel costs fell by 7.2pc from a year earlier to 945 rupees/t ($11.10/t) of cement in January-March. This was primarily because average fuel consumption costs fell by $19/t on the year to $95/t in the latest quarter. Cement plants use petroleum coke and thermal coal as fuel in cement kilns. The Argus -assessed delivered India price of 6.5pc coke averaged $98.38/t for October-December, down by almost 25pc from the average of $131.04/t a year earlier. Most of the US high-sulphur coke that Indian cement makers consumed in January-March would typically have been booked in the previous quarter, considering a voyage time of approximately six weeks. Revenue from sales fell by 5pc on the year to Rs40.91bn in January-March, a sharper decline compared with the 2.8pc drop in sales volume because of lower cement prices. The fiscal year's revenue also slipped by almost 5pc to Rs139.8bn. The company reported higher cement prices this quarter, and it is reasonably optimistic about the sustainability of recent hikes. It expects the rising industry consolidation in cement industry to eventually give producers a higher pricing. Dalmia's profits increased by 37pc on the year to Rs4.4bn over January-March, but the annual profit declined by 18pc to Rs7bn from the year earlier. Dalmia Bharat added approximately 5mn t/yr of cement capacity in 2024-25 to 49.4mn t/yr. It had earlier announced an aspiration to raise cement capacity to 75mn t/yr by 2027-28, but details have not yet been made public. By Ajay Modi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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