Qld power plant set for coal cap compo | The Canberra Times | Canberra, ACTIt seems taxpayers will fund the recent coal price cap subsidies; the price cap is effectively a non-event. The government is robbing Peter to pay Peter while looking like it is doing something, they have effectively done nothing. All they have done is shift the burden from those who do not pay taxes to those who do and increasing the incentive to live under a welfare umbrella. But we all know that royalties have gone up, so they will get a revenue boost in the meantime, while gradually biting at the hand that feeds them in the long run. The financial juggling that the state governments do to appear like saviours is laughable.
We do not foresee a power crisis: CIL Chairman - The Hindu BusinessLineIndia's coal trains supply misses target for 13th straight month (reuters.com)They do not foresee a power crisis because it is convenient for them not to. It seems we are getting conflicting reports on the state of Indias coal supply security. Being such a big country, I do expect that different regions have different supply/demand imbalances. With logistical backlogs acting as a prime suspect to shortages in different parts of the nation. One would take this as a sign that logistics need to be upgraded throughout the country. This would not be easy, with more steel, coal, electricity and time (likely years) required to bring rail lines and ports into service.
Power cuts happening due to inadequate coal supply: Rajasthan Minister Bhanwar Singh Bhati (aninews.in)Despite Indias ramp up in production, blackouts are common and coal supply is still scarce. Their vast electrical grid will likely require upgrades to deal with increased demand. Indias industrial and manufacturing sector will consume much of the coal to employ the people and drive economic development. Cement, asphalt, brickworks, steel and electricity generation are essential to bring more people out of poverty, which is crucial to growth and the general well-being of the people. It would appear that in this case the cure is the cause. With no easy fix in sight, only time will unravel the mess that the world was plunged into almost 3 years ago.
In all of this, there is no clear path or incentive for coal prices (driven by classic supply/demand market dynamics) to revert to what they were prior to the reopening of borders and abolishment of COVID lockdowns throughout the world.
Coal prices reportedly rise in northern Tajikistan due to the closure of the Tajik-Kyrgyz border | Tajikistan News ASIA-Plus (asiaplustj.info)Further border disputes worldwide are leading to a doubling of coal prices for locals. A common trend that shows little sign of reversing coal prices to recent historic lows.
Progress in the Fight Against Climate Change | Foreign AffairsIn the midst of these supply shortages and logistical cobwebs, we have some of the largest economies in the world pledging to halt finance for coal mines being developed "outside" their borders, how convenient, there is no mention of halting finance within their borders. This is all making it harder for developing nations to bring their people out of poverty, which would do wonders for the environment. A content and prosperous populace has more time and resources to take care of their surroundings. Currently there are people burning wood and dung instead of coal, both of which emit more smoke and have a lower caloric value per kg than mid-range CV coal.
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