Page 5 - AsiaElec Week 27 2021

AsiaElec COMMENTARY AsiaElec

planner, announced on June 11 that solar and of the country’s gas storage and transportation
wind power would enjoy price parity with coal- capacity. This has led to shortfalls in supply, with
based grid supplies. The commission pointed industrial consumption sacrificed in colder
to industrial breakthroughs and plummeting weather to ensure homes do not freeze.
development costs as having allowed solar and While gas demand is expected to continue
wind power installations to achieve fundamen- growing until 2035, the country’s longer-term
tal conditions of grid price parity. energy outlook will more heavily depend on
The National Energy Administration (NEA) renewable energy solutions. Moreover, it is pos-
has set a target for solar and wind power output sible that as this transition gains steam – and
to account for 11% of total power consumption the energy security advantages of greater green
this year, up from 9.5% in 2020. energy consumption become readily apparent
to both government and industry – that Beijing
What next may set even more ambitions targets in its quest
The central government has pushed coal-to-gas to reduce its fossil fuel consumption.
conversion for years, first by striving to improve The risk of such a political shift will likely
urban air quality and then as part of Beijing’s come to weigh on investment decisions in new
wider carbon emission goals. regional liquefied natural gas (LNG) capacity,
That push has seen the conversion millions given expansion plans in the Middle East, North
of coal boilers often outpace the development America and Africa. ™

COAL

Indian coal production drops 2%

INDIA INDIA’S total coal production fell by 2.02% to The 5% decrease follows a 3% fall in 2019, caused
716.084mn tonnes during the year to March by a stuttering economy.
2021. Coal-fired output fell by 51 TWh, or 5%,
The coal ministry said that of the total pro- balanced by a 36-TWh (3%) contraction in elec-
duction of 716.084mn tonnes, 671.297mn tricity demand and a 12-TWh (26%) rise in solar
tonnes was non-coking coal and the remaining generation.
44.787mn tonnes was coking coal. It found that the country’s traditional power
The public sector produced 685.951mn generators, both state and private, face falling
tonnes, while the remaining 30.133mn tonnes Plant Load Factors (PLF) and worsening finan-
was from the private sector. cial prospects for fossil fuel generation.
Indian Coal Minister Pralhad Joshi said even Indeed, coal accounted for almost 100% of
though the effect of the pandemic has been the fall in electricity demand in 2020, suggesting
everywhere, the coal sector has shown its resil- that it struggled to adapt to changing demand
ience reflecting the criticality of its contribution patterns, unlike the country’s solar and wind
to the steady development of India’s economy. capacity.
Coal secretary Anil Kumar Jain said that coal State-owned Coal India Ltd (CIL) alone
forms the backbone of India’s energy system as it accounts for 83.26% of coal production in the
contributes to nearly 58% of the country’s com- country.
mercial primary energy supply and coal-based The state of Chhattisgarh registered highest
power forms more than 70% of power generated coal production at 158.409mn tonnes, followed
in the country. by Odisha with 154.150mn tonnes, Madhya
While coal output fell by 2%, the country’s Pradesh with 132.531mn tonnes and Jharkhand
coal-fired generation fell by 5% in 2020, the sec- with 119.296mn tonnes.
ond annual decline in a row, suggesting that the Electricity is the biggest driver of India’s car-
COVID-19 inspired decline in demand for elec- bon emissions due to its reliance on coal. With
tricity could be a turning point in the country’s 74% of power generating capacity, coal-fired
transition away from its reliance on the fuel. power is the source of one-third of the country’s
Coal was the generating fuel to be hit the total greenhouse gas (GHG) emissions.
most by the fall in demand for electric, UK-based Although coal forms a key plank of the coun-
think-tank Ember said in a recent report. try’s energy sector, the government wants to
The report found that the 5% drop in increase the share of non-fossil fuel energy in its
coal-generated power was the result of both fall- total energy mix to 40% by 2030.™
ing demand a steady increase in solar generation.

Week 27 07•July•2021 www. NEWSBASE .com P5