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AsiaElec                                          COAL                                              AsiaElec


       China agrees to buy more coal




       from Indonesia in 2021




        INDONESIA        CHINA will buy $1.467bn worth of thermal coal  volumes up in a bid to compensate for declining
                         from Indonesia next year, the Indonesian Coal  global coal prices.
                         Mining Association (APBI) said on November   In 2019, falling global coal prices hit export
                         25.                                  revenues, even though coal output, exports and
                           The trade deal was signed between APBI and  domestic production all rose.
                         China Coal Transportation and Distribution on   Tasrif said in January that total coal output
                         Wednesday, according to APBI’s statement, Reu-  reached 610mn tonnes in 2019, although the
                         ters reported.                       2020 target was 9.8% lower at 550mn tonnes.
                           This is good news for Indonesia, as coal deliv-  However, domestic consumption is set to rise
                         eries to China had slowed in 2020,   by 12% from 128mn tonnes in 2019 to 155mn
                           “It is hoped that there will be an increase of  tonnes in 2020, he said.
                         coal exports to China by 200mn tonnes in the   This cap on coal output in 2020 aims to prop
                         coming year,” APBI said.             up falling coal prices and government revenues
                           “The target quantity will be reviewed every  by reducing production.
                         year.”                                 This cap is set to continue into 2021. In July,
                           Indonesia, the world’s top exporter of ther-  the mining companies have agreed to cut coal
                         mal coal, has resorted to diplomatic channels to  production by 50mn in 2021 in a bid to prop up
                         promote coal sales around Southeast Asia, par-  coal prices that have dropped during the corona-
                         ticularly in Vietnam, as exports to China slowed.  virus (COVID-19) crisis.
                           Coal, which is also a major export earner for   At the start of January, falling global coal
                         the country, currently accounts for 60% of the  prices meant that the Indonesian Ministry of
                         country’s generating output.         Energy and Mineral Resources set its January
                           The government wants by 2025 to double  thermal coal reference price (the Harga Batubara
                         Indonesia’s share of renewables, which stood at  Acuan, HBA) at $65.93 per tonne, down 0.6% on
                         just 5%, or 12% including hydro, in 2018, accord-  December 2019 and 28.7% lower than January
                         ing to the 2019 BP Statistical Review of Energy.  2019, when it was $92.41 per tonne.
                         Gas accounts for a further 26% of the country’s   China’s imports from Indonesia, the world’s
                         60,000mW of capacity.                biggest shipper of thermal coal used in power
                           As such, the country’s miners are pushing to  plants, dropped 24.5% in the first 10 months
                         increase exports to replace falling demand for  of 2020 to 86.88mn tonnes, compared with
                         power generation at home.            115.03mn tonnes during the same period last
                           Indeed, the miners are keen to keep export  year, according to Refinitiv data.™


                                                    RENEWABLES

       Indian solar tariffs reach new record





        INDIA            INDIA has posted a new record low for solar  Aljomaih Energy and Water Co. will construct a
                         tariffs, with local units of Singapore’s Sembcorp  200MW plant.
                         Industries and Saudi Arabian-based Aljomaih   SECI, which is the country’s main agency for
                         Holding bidding INR2 ($0.027) per kWh in  promoting renewable energy, awarded the con-
                         recent auctions.                     tract on price alone. The winners will now sign
                           The tariff is almost one-sixth lower than  a power purchase agreement (PPA) for the elec-
                         India’s previous record low of INR2.36 ($0.02)  tricity produced with SECI.
                         per kWh, reached in June at an auction held   The decline in renewable energy generation
                         by Solar Energy Corp. of India (SECI), Reuters  costs has helped India in its drive to use green
                         reported.                            power to fight climate change.
                           India, which is currently the world’s   India’s largest electricity generator, state-run
                         third-largest greenhouse gas (GHG) emitter,  NTPC Ltd, won a licence to operate the remain-
                         aims to have 175GW of renewable capacity  ing 470mW available at the auction with a bid of
                         by 2022 and 450GW by 2030, compared with  INR2.01 ($0.026) per kWh.
                         90GW now.                              The new utility-scale solar projects are to
                           Sembcorp-owned Green Infra Wind Energy  be built in the north-western desert state of
                         has won the rights to a 400MW solar plant, while  Rajasthan.



       Week 47  25•November•2020                www. NEWSBASE .com                                              P5
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