India is facing a dilemma to remain dependent on fossil fuel to drive the economy or to shift to clean energy. Both the scenarios are tricky especially at a time when India faces record heat wave but also needs energy to avoid power shortages

Delhi tries to shift to green fuel

State-run&nbsp;Coal&nbsp;India, the world's largest&nbsp;coal&nbsp;miner, will import the fuel for use by utilities, a power ministry letter seen by Reuters showed on Saturday, as shortages raise concerns about renewed power outages.&nbsp;

It would be the first time since 2015 that&nbsp;Coal&nbsp;India&nbsp;has imported the fuel, highlighting efforts by state and federal officials to stock up to avoid a repeat of April, when&nbsp;India&nbsp;faced its worst power cuts in more than six years.&nbsp;

"Coal&nbsp;India&nbsp;would import&nbsp;coal&nbsp;for blending on government-to-government (G2G) basis and supply ... to thermal power plants of state generators and independent power producers (IPPs)," the federal Power Ministry said in the letter dated May 28.&nbsp;

The letter was sent to all utilities, top federal and state energy officials including the federal&nbsp;coal&nbsp;secretary and the chairman of&nbsp;Coal&nbsp;India.&nbsp;

India&nbsp;is expected to face a wider&nbsp;coal&nbsp;shortage during the third quarter of 2022 due to expectations of higher electricity demand, stoking fears of widespread power outages.&nbsp;

The power ministry said in the letter the decision was taken after nearly all states suggested that multiple&nbsp;coal&nbsp;import tenders by states would lead to a confusion and sought centralised procurement through&nbsp;Coal&nbsp;India.&nbsp;

India&nbsp;stepped up pressure on utilities to increase imports to blend with local&nbsp;coal&nbsp;in recent days, warning of cuts to the supply of domestically mined&nbsp;coal&nbsp;if power plants did not build up&nbsp;coal&nbsp;inventories through imports.&nbsp;

But the power ministry on Saturday asked states to suspend tenders that are "under process".&nbsp;

"The tenders under process by state generators and IPPs for importing&nbsp;coal&nbsp;for blending may be kept in abeyance to await the price discovery by&nbsp;Coal&nbsp;India&nbsp;through G2G route, so as to procure&nbsp;coal&nbsp;at least possible rates," the ministry said.&nbsp;

Coal&nbsp;inventories at power plants have declined by about 13% since April to the lowest pre-summer levels in years.&nbsp;

State-run Coal India, the world's largest coal miner, will import the fuel for use by utilities, a power ministry letter seen by Reuters showed on Saturday, as shortages raise concerns about renewed power outages.

State-run Coal India, the world's largest coal miner, will import the fuel for use by utilities, a power ministry letter seen by Reuters showed on Saturday, as shortages raise concerns about renewed power outages. It would be the first time since 2015 that Coal India has imported the fuel, highlighting efforts by state and federal officials to stock up to avoid a repeat of April, when India faced its worst power cuts in more than six years. "Coal India would import coal for blending on government-to-government (G2G) basis and supply ... to thermal power plants of state generators and independent power producers (IPPs)," the federal Power Ministry said in the letter dated May 28. The letter was sent to all utilities, top federal and state energy officials including the federal coal secretary and the chairman of Coal India. India is expected to face a wider coal shortage during the third quarter of 2022 due to expectations of higher electricity demand, stoking fears of widespread power outages. The power ministry said in the letter the decision was taken after nearly all states suggested that multiple coal import tenders by states would lead to a confusion and sought centralised procurement through Coal India. India stepped up pressure on utilities to increase imports to blend with local coal in recent days, warning of cuts to the supply of domestically mined coal if power plants did not build up coal inventories through imports. But the power ministry on Saturday asked states to suspend tenders that are "under process". "The tenders under process by state generators and IPPs for importing coal for blending may be kept in abeyance to await the price discovery by Coal India through G2G route, so as to procure coal at least possible rates," the ministry said. Coal inventories at power plants have declined by about 13% since April to the lowest pre-summer levels in years.

Coal India to import for first time in years as power shortages loom

Vietnam will contend with severe power shortages from 2021 as electricity demand outpaces construction of new power plants in the Southeast Asian country, the Ministry of Industry and Trade told Reuters on Wednesday.

The lack of energy infrastructure could put the brakes on foreign investment inflows into one of Asia's fastest-growing economies and challenge Vietnam's position as the top beneficiary of the US-China trade war.

Vietnam's demand for electricity will exceed its supply by 6.6 billion kilowatt-hours (kWh) in 2021, increasing to 15 billion kWh by 2023, equivalent to about 5% of forecasted demand for electricity then, the ministry said in an emailed statement.

In addition to the shortfall, many energy projects in Vietnam have been facing long delays, the ministry told Reuters.

"Developers are facing difficulties securing sufficient funds from local sources, and the government has limited its guarantee for foreign loans," the ministry statement said.

Vietnam will need an average of $6.7 billion a year to expand its annual power generation capacity by 10% between 2016 and 2030, it added.&nbsp;

"This is a big challenge, given that current electricity prices in Vietnam are barely enough for the developers to make a profit," the statement said.

Last month, state media said 47 of Vietnam's 62 electric generation projects of 200 megawatts (MW) or more faced delays, with some at least two years behind schedule.

With a population of 96 million and annual gross domestic product growth of about 7% backed by robust foreign investment and exports, Vietnam's power generation will need to rise from about 48,600 MW currently to 60,000 MW by 2020 and 129,500 MW by 2030, according to government data.

Daine Loh, power and renewables analyst at Fitch Solutions, said the potential power shortage will pose some degree of risk to Vietnam's manufacturing sector, but the shortage won't be significant enough to have a severe impact on foreign investment into the country.

"We believe that Vietnam will have the capacity to resolve their power shortages by increasing electricity imports over the coming years, which will come largely from Laos and China," Loh said on Wednesday.

She said Vietnam already has some infrastructure in place to buy around 1 GW of electricity a year from its neighbours.&nbsp;

The World Bank last year said that Vietnam needs to invest up to $150 billion by 2030, almost twice the $80 billion spent on its power sector since 2010.

Vietnam is increasingly reliant on coal, which makes up 38.1% of the country's generating capacity, the ministry said, adding that Vietnam will have to use 720 million tonnes of domestic coal in addition to 680 million tonnes of imported coal to feed its power plants during the 2016-2030 period.

It will also have to import liquefied natural gas (LNG) for its power plants, the ministry said, and the power shortage is expected to subside gradually after 2025 when several new gas-fired power plants go online.

Fitch Solutions'&nbsp;Loh said the key risks to foreign investment and other economic benefits in Vietnam are more likely to stem from political factors, referring to ongoing disputes over the South China Sea.

&nbsp;

Vietnam will contend with severe power shortages from 2021 as electricity demand outpaces construction of new power plants in the Southeast Asian country, the Ministry of Industry and Trade told Reuters on Wednesday.

Vietnam will contend with severe power shortages from 2021 as electricity demand outpaces construction of new power plants in the Southeast Asian country, the Ministry of Industry and Trade told Reuters on Wednesday. The lack of energy infrastructure could put the brakes on foreign investment inflows into one of Asia's fastest-growing economies and challenge Vietnam's position as the top beneficiary of the US-China trade war. Vietnam's demand for electricity will exceed its supply by 6.6 billion kilowatt-hours (kWh) in 2021, increasing to 15 billion kWh by 2023, equivalent to about 5% of forecasted demand for electricity then, the ministry said in an emailed statement. In addition to the shortfall, many energy projects in Vietnam have been facing long delays, the ministry told Reuters. "Developers are facing difficulties securing sufficient funds from local sources, and the government has limited its guarantee for foreign loans," the ministry statement said. Vietnam will need an average of $6.7 billion a year to expand its annual power generation capacity by 10% between 2016 and 2030, it added. "This is a big challenge, given that current electricity prices in Vietnam are barely enough for the developers to make a profit," the statement said. Last month, state media said 47 of Vietnam's 62 electric generation projects of 200 megawatts (MW) or more faced delays, with some at least two years behind schedule. With a population of 96 million and annual gross domestic product growth of about 7% backed by robust foreign investment and exports, Vietnam's power generation will need to rise from about 48,600 MW currently to 60,000 MW by 2020 and 129,500 MW by 2030, according to government data. Daine Loh, power and renewables analyst at Fitch Solutions, said the potential power shortage will pose some degree of risk to Vietnam's manufacturing sector, but the shortage won't be significant enough to have a severe impact on foreign investment into the country. "We believe that Vietnam will have the capacity to resolve their power shortages by increasing electricity imports over the coming years, which will come largely from Laos and China," Loh said on Wednesday. She said Vietnam already has some infrastructure in place to buy around 1 GW of electricity a year from its neighbours. The World Bank last year said that Vietnam needs to invest up to $150 billion by 2030, almost twice the $80 billion spent on its power sector since 2010. Vietnam is increasingly reliant on coal, which makes up 38.1% of the country's generating capacity, the ministry said, adding that Vietnam will have to use 720 million tonnes of domestic coal in addition to 680 million tonnes of imported coal to feed its power plants during the 2016-2030 period. It will also have to import liquefied natural gas (LNG) for its power plants, the ministry said, and the power shortage is expected to subside gradually after 2025 when several new gas-fired power plants go online. Fitch Solutions' Loh said the key risks to foreign investment and other economic benefits in Vietnam are more likely to stem from political factors, referring to ongoing disputes over the South China Sea.

Vietnam will face severe power shortages from 2021: Ministry

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