How coal prices are set to impact the power sector
Recent months have seen gas, coal, and electricity prices rise to their highest levels in decades. A combination of factors has caused these increases. As Russia accounts for around 20% of the global thermal coal exports, it is likely that the ongoing conflict between Ukraine and Russia has been a significant factor in the inflation.
Despite the fact that India does not import coal from Russia, the increase in its prices worldwide will have a major effect on the price discovery front in those countries where it imports coal from.
Residents of Punjab, Madhya Pradesh, Maharashtra, Uttar Pradesh, Rajasthan, Tamil Nadu, Bihar, and Andhra Pradesh are sweltering in the heat as they continue to face a rise in temperatures and no electricity. All over the country, power plants are unable to meet the increasing demand for electricity due to acute coal shortages. So much so that some states are even experiencing power outages lasting three to four hours.
As an independent power producer with both thermal and solar power generation portfolios, Hindustan Powerprojects (HPPPL) is currently generating 1362 MW from Thermal and Solar Assets with an asset size of $2 billion and more than 1,000 associates across its various sites.
One of the main objectives of Hindustan Powerprojects (HPPPL) is to contribute to the progress of the nation by generating cheap power by following all environmental norms. According to its Chairman, Ratul Puri, “It is very important to understand the needs of society. We believe in creating partnerships with the communities so that the benefits from the development are aligned with their needs.”
Mr. Ratul Puri further added in the energy sector, it is critical to plan under extreme uncertainty across jurisdictions, domains, ministries and the public and private sectors. According to him, “There is a need for domain experts, government agencies and industry players to brainstorm and generate creative solutions.” He believes that we all have a responsibility to the environment, and we should practice sustainability beyond statutory compliance by transforming our operating philosophy into one based on natural systems of environmental restoration and the precautionary principle.