Page 12 - AsiaElec Week 11

AsiaElec
NEWS IN BRIEF
AsiaElec
COVID-19
ADB announces $6.5 billion
initial response to COVID-19
pandemic
The Asian Development Bank (ADB) today announced a $6.5 billion initial package to address the immediate needs of its developing member countries (DMCs) as they respond to the novel coronavirus (COVID-19) pandemic.
“This pandemic has become a major
global crisis. It requires forceful action at national, regional, and global levels,” said ADB President Masatsugu Asakawa.
“With our developing member countries, we are formulating an aggressive set of actions to combat the pandemic; to protect the
poor, the vulnerable, and wider populations across the region; and to ensure economies will rebound as swiftly as possible. Based on close dialogue with our members and peer institutions, we are deploying this $6.5 billion rescue package to meet the immediate needs of our members.”
Asakawa stressed that “ADB stands ready to provide further financial assistance and policy advice down the road whenever the situation warrants, on top of the $6.5 billion package.”
The initial package includes approximately $3.6 billion in sovereign operations for a range of responses to the health and economic consequences of the pandemic, and $1.6 billion in non-sovereign operations for
micro, small, and medium-sized enterprises, domestic and regional trade, and firms directly impacted.
ADB will also mobilize about $1 billion in concessional resources through reallocations from ongoing projects and assessing possible needs for contingencies. ADB will make available $40 million in technical assistance and quick-disbursing grants.
ADB
DEMAND
Chinese power demand, production falls
In January and February, China’s production of raw coal and electric power for industries above designated size decreased, while the production of crude oil and natural gas kept growing, according to figures from China’s National Bureau of Statistics.
Electricity production fell by 8.2%, leading while thermal generation fell by 9%.
In January and February, 1,026.7 billion kWh was generated, with an average of 17.11
billion kWh per day, down 8.2% year on year. In terms of varieties, thermal power and
hydropower declined significantly, nuclear power and wind power declined slightly, and solar power generation grew steadily.
Among them, thermal power decreased by 8.9%, hydropower fell 11.9%, nuclear power declined 2.2%, wind power dropped by 0.2%, while solar power rose by 12.0%.
Raw coal production declined. In January and February, 490 million tonnes of raw coal were produced, with an average daily output of 8.15 million tonnes, down 6.3% year
on year; 68.06 million tonnes of coal were imported, up 33.1% year on year.
The comprehensive trading price of port coal has increased. On February 28, the
price of 5500, 5000 and 4500 kcal coal in Qinhuangdao port was 556, 502 and 452 yuan per tonnes respectively, up 7, 8 and 8 yuan respectively from January 3.
CHINA’S NATIONAL BUREAU OF STATISTICS
COAL
Japan’s coal consumption
to decline even with lacking
climate action
Even with a sizeable coal pipeline, Japan
is set for a significant reduction in coal consumption over the next 20 years, according to an analysis by the Institute for Energy Economics and Financial Analysis (IEEFA). Consumption is expected to decline even without further action on climate change.
Latest Global Energy Monitor (GEM) data showed that Japan has 9.3GW of coal plants under construction. However, Japan’s electricity generation has dropped at an average rate of 1.2% per annum since 2008.
“New power generation cannot be added to a power system with flat or declining demand without existing generation being crowded out,” said Simon Nicholas, energy finance analyst at IEEFA.
Importantly, the GEM data also shows that Japan has 8.3GW of old coal power plants that will be due for end-of-life closure over the next five years. The new, more efficient coal plants will replace the old ones, consuming less coal in the process.
Furthermore, the pipeline of Japanese coal plants yet to reach construction has been hollowed out by project cancellations, Nicholas said.
There was another 9GW of coal plant proposals under development but yet to reach construction. As of January 2020, there are now only 2.6GW according to GEM. “What’s more, the remaining projects look highly uncertain to proceed,” Nicholas added.
Indian minister attacks coal importers
The Indian government has hit out against coal import lobbyists, saying there is sufficient domestic stock to meet demand.
Indian Coal Minister Pralhad Joshi said India housed the fourth largest resources in the world yet thermal coals were being imported and should be stopped.
“There is no hesitation in saying that
in many states some import lobby is also working. Though in last three-four months we have enough stock some of the Gencos are importing. This is the major problem,” Joshi said.
The minister said many states are importing thermal coal that was substitutable.
“I have written to all chief ministers including of Madhya Pradesh, Uttar Pradesh, Chattisgarh, Punjab, Rajasthan,Maharashtra, West Bengal, Telangana, Jharkhand and Tamil Nadu requesting them to direct all Gencos
to maximise the coal lifting and stop coal imports,” he said.
The minister said he has also asked Power Minister R K Singh to ask NTPC to totally stop the imports.
All thermal power plants have a stock of 23 days which is the highest ever in ecent history, he added.
The minister cautioned states to utilise domestic coal on a priority basis as the present stock has a maximum life of 30 years.
The minister said though coal production this year remained impacted due to “incessant and unprecedented” rains,the production increased post December.
COAL-FIRED GENERATION
Vietnam reduces capacity of coal power plants
Vietnam has published radical new plans to abandon 15GW of planned coal power projects over the next 10 years
Vietnam’s National Steering Committee for Power Development has recommended eliminating 15 GW of planned coal power projects.
The reduction is mainly due to some thermal power projects delaying their development, while some localities have not agreed to allow the development of thermal power projects.
The capacity will cut by 6,000MW to 20,000MW in 2020 compared to the revised Master Power Development Plant VII (PDP
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Week 11 18•March•2020