Page 11 - AsiaElec Week 33

AsiaElec NEWS IN BRIEF AsiaElec

COAL

Vietnam coal imports jump

50%

Vietnam has spent around $2.6bn on
importing 36.5mn tonnes of coal in the first
seven months of this year, up 50% in volume
year-on-year.
In July alone, the country imported 5mn
tonnes of the product worth $294mn, mostly
DEMAND Tadmax the right to develop the plant, subject from Indonesia, Russia and China, according
to it entering into a long-term power sales to Vietnam Customs.
Fitch forecasts 4% drop in agreement. In an announcement to Bursa tonnes of coal worth $57mn between January
Vietnam also exported more than 410,800
Malaysia on August 7, TNB confirmed that
Indian power demand the PPA has been signed. The agreement and July.
will be for a period of 21 years from the
The country has been importing increasing
Fitch Ratings expects India’s electricity commercial operation date of the first amounts of coal in recent years as demand
demand to drop by 4% during the financial generating block, which is expected on from thermal power plants increases and
year ending March 2021, given the January 1 2024. domestic production is mired in difficulties,
expectations of only a gradual pick-up in Pulau Indah Power Plant (PIPP), formerly requiring deeper pits to reach the mineral.
economic activity since pandemic-related known as Tadmax Indah Power, will It became a coal importer from being a net
lockdowns were relaxed in June 2020. construct, own, operate and maintain the exporter just five years ago.
The fall in demand is likely to result in gas-fired combined cycle electricity generating Though the government has been trying
lower load factors, mainly for coal-based facility with a total nominal capacity of 1,200 to reduce its reliance on coal, encouraging
power plants. The weak demand, along with megawatts, located in Pulau Indah, Selangor. solar and wind power plants, thermal power
higher coal inventory, led to India’s coal PIPP is a special purpose company owned by plants accounted for 36.1% of the electricity
imports falling by 22% yoy in 1H20. Tadmax (40%), Worldwide Holdings Berhad generated last year, according to the Vietnam
We expect the credit profiles of state- (35%) and Korea Electric Power Corporation Energy Association.
owned distribution companies (discoms) (25%). Vietnam is expected to import 12mn
to worsen further against weak demand The power plant, consisting of two tonnes of coal this year, 30mn tonnes in 2025
from high-paying industrial customers, blocks, will have natural gas as the main fuel and 50mn tonnes in 2030 to fuel its thermal
due to the economic slowdown. The central and distillate as the back-up. The overall power plants, senior officials of the state-
government’s recent INR900bn liquidity design, procurement, construction and owned coal mining group Vinacomin said
facility for discoms should help them pay the commissioning will be executed on a turnkey earlier this year.
huge outstanding amount owed to generation basis.
and transmission companies.
Fitch expects the pandemic-related supply
chain and labour disruption to result in slower SOL AR
renewable-energy capacity additions during COAL
2020. Hybrid projects - a combination of China Three Gorges enters
renewable and storage facilities - are gaining China’s coal output falls
traction in India to address the intermittent Spain market with solar
nature of renewable power and streamline 0.1% in January-July
integration with the grid, while solar purchase
continues to lead capacity additions. China’s National Bureau of Statistics
FITCH announced that China’s coal output in the China’s state-owned energy and infrastructure
January-July 2020 amounted to 2.12bn tonnes, giant China Three Gorges (CTG) has
down 0.1% year on year, shifting from the agreed to buy 13 Spanish solar plants built
GAS-FIRED GENERATION year-on-year rise of 0.6% recorded in the first by Madrid-based renewables firm X-Elio,
six months of the year. marking its entry into the Spanish energy
Tadmax Resources signs amounted to 320mn tonnes, down 3.7% sector, X-Elio said.
In July alone, China’s raw coal output
The expansion into Spain follows CTG’s
PPA with Malaysia’s TNB year on year, 2.5%age points higher than the purchase of a 23% stake in Portugal’s largest
utility EDP-Energias de Portugal, which
decline rate recorded in June.
Malaysia’s Tadmax Resources has signed At the same time, China imported 200mn has provoked concerns in the United States
a power purchase agreement (PPA) with tonnes of coal in the January-July period, up and some European countries over China’s
utility Tenaga Nasional Berhad (TNB) for its 6.8% year on year, 5.9%age points slower than growing influence in the sector, Reuters
planned combined cycle gas power plant in the rise recorded in the first half of the current reported.
the state of Selangor. year. The photovoltaic plants were built between
The Malaysian government awarded 2019 and 2020, and are fully operational with

Week 33 19•August•2020 www. NEWSBASE .com P11