Energy Crisis Everywhere, Now Threatening India
The energy crisis is now happening in several countries in the world. After Britain and China, now a similar crisis threatens India.
The country's utility companies are busy securing coal supplies after a surge in electricity demand from industry and slow imports. This is due to record global prices due to a rebound in electricity demand and competition with China - the world's largest coal consumer - which is hit by a severe power crisis. Government data shows half of the 135 coal-fired power plants (PLTU) only have fuel stock for less than three days. ., the rules of the federal government, supply must be there for at least two weeks.
"The supply crunch is expected to continue," the rating agency S&P CRISIL said in a report.
In detail, the electricity consumption of states that focus on Industry continues to rise. In Maharashtra, Gujarat, and Tamil Nadu for example, consumption grew 13.9 to 21% in the three months to September.
"This year we saw a tremendous growth of industrial demand," said the director of Gujarat's electricity regulator, Shameena Husain.
The price of coal from the world's top exporter has reached an all-time high. Australia's Newcastle coal is up about 50%.
Meanwhile, Indonesia rose 30% in the last three months. Benchmark prices for September are even seven times higher than similar quality fuels at Coal India, India's state-owned mining and refining company.
"Traders who buy coal from Coal India at spot auctions are committing 'murder'. They are selling at a 50-100% premium," said a senior official in charge of coal procurement at a major Indian utility operator.
Despite India's dwindling coal supply, large-scale blackouts have yet to occur. But citing Reuters, shortages are already visible in Uttar Pradesh, Bihar, and Kashmir.
India is the second-largest coal importer in the world. Even so, the Mister Fear country has the world's fourth-largest reserves.
Electricity Crisis Gets Serious, Factory Activity in China Dies
China's dwindling factory activity due to electricity restrictions has raised many concerns about the fate of the world's second-largest economy.
A survey released Thursday (30/9/2021), as quoted by the Guardian, showed China's factory activity contracted in September. This is the first time this has happened to China since the pandemic hit in February 2020.
The figures show that output is falling due to a slowdown in production in high energy-consuming industries. One of them is like a factory that processes metals and oil products. The sub-index also highlighted declines in new orders, employment, and new export orders. Analysts expected the manufacturing purchasing managers' index (PMI) to remain steady at 50.1 in September, although official results showed the index at 49.6. The 50-point mark separates growth from contraction.
Previously, China's economy quickly recovered after being hit by the pandemic last year. Although the results of the non-manufacturing PMI were good, the economy continued to deteriorate after the manufacturing sector production stalled due to the electricity crisis.
Amid the crisis, Russia's state energy company Inter RAO said China had asked it to increase its electricity supply to help with supply shortages at home.
The spokesman said Inter RAO was considering a significant increase in power supply. Russia can supply up to 7 billion kilowatt-hours of electricity to China annually but its exports fell by 7.2% last year.
China's electricity crisis comes as the country's energy demand surges past pre-pandemic levels. However, restrictions on coal imports from Australia due to political disputes have put pressure on the supply of this commodity. The electricity crisis hit the Bamboo Curtain country, China, and made several technology companies asked to stop production from Sunday to Thursday. In a filing to the Taiwan Stock Exchange on Monday, September 27, several companies supplying parts to automaker Tesla were asked to stop production this week.
The global energy crisis is starting to show.
Two big countries at the same time China and Britain experienced a coal crisis which resulted in reduced electricity supply. This resulted in the disruption of factory operations, and some even stopped operating.
The campaign to reduce fossil energy, especially coal, to reduce carbon emissions and encourage the transition to renewable energy is one of the driving factors for the energy crisis in several countries in the world today.
The UK and countries in Europe have been leaning towards gas as an energy source for power generation.
The easing of social activity restrictions and the arrival of winter boost energy demand. Meanwhile, the supply of energy commodities limited because production has not been normal due to the pandemic and due to weather factors. Meanwhile, China has also begun to stop the operation of coal-based power plants and replace them with renewable energy. However, unbalanced energy demand and supply caused crises in various regions.
China's Economic Planning Agency is trying to reassure citizens and businesses in the hardest-hit areas that coal use and energy supplies are being closely monitored.
As reported by Reuters, Wednesday (29/9), The state planner, The National Development and Reform Commission (NDRC) asked local governments to monitor the use and stock of coal for power plants. Local governments are also asked to increase the fulfillment of medium-term and long-term contracts to supply thermal coal. China has also called for increased imports and increased domestic coal production.
Northeast China is one of the areas hardest hit by the energy crisis. Media reports and social media posts highlight various energy shortage problems in cities such as traffic lights and dead 3G communication networks.
Officials have been trying to reassure residents that coal supplies will be sufficient ahead of the coming winter and the rising demand for heating fuel. The state's main network operator has also attempted to placate customers twice this week.