In India Heat Driven Power Demand Satisfied Mostly by Coal

The extreme heat that's been scorching Asia in recent past weeks has produced one clear beneficiary - Russia.

Russian energy, shunned by the West, is looking increasingly attractive as countries across the Asian region scramble to make sure they have enough coal, gas and fuel oil to keep (i) the lights on and (ii) air conditioners running.
Asian economies are anxious about making sure their power generators are supplied with enough fuel in what could be the hottest year on record.

The worst place to be right now amid searing temperatures is South Asia. It's very hard to care too much about international affairs when you can't even take care of your people's basic needs.

Russian exports of thermal coal and natural gas, the two fuels most often used for electricity generation, have grown markedly this year.

Coal volumes have jumped sharply, about a third higher than a year earlier. LNG shipments have also been growing to Asia in recent months after prices retreated from record highs that had made the fuel unaffordable for many poorer nations.

Asian imports of Russian fuel oil, a dirtier and cheaper alternative for power generators, had the two highest months on record in March and April.

An emerging El Nino weather pattern, which has already sent temperature soaring in parts of the Asian region is a big impetus to buy more Russian energy. Vietnam got the warning of power shortages while Myanmar struggles with worsening blackouts.

Carbon dioxide emissions from burning fossil fuels are trapping heat in the atmosphere and planet gets warmed up and is the primary driver of more extreme weather events, including heat waves.

Heat driven power demand in India will likely be satisfied mostly by coal.

China and India are the most enthusiastic buyers of discounted Russian oil. They are purchasing most coal, gas and fuel oil.

The increasing purchases of Russian energy by many Asia countries highlights (i) declining clout of White House and (ii) perilious situation many nations find themselves in.

" Would I rather risk falling afoul of the US or forgo steep discounts on energy", many Asian nations are asking themselves. " When there is a good deal on the table , how can poorer nations afford to say no?" more  

Number of oil fuelled vehicles are on rise and so the demand for oil will continue. From emissions in transport sector considerations, transition to EVs is important. But clean transport requires clean grid. Given the country's dependence on coal for electricity generation, there is a contradiction in EV projects. Emissions from EVs can shift to coal fired power plants. more  
Vehicle loans driving banking. How? Bank loans. Psychographic segmentation, as in instant gratification and status symbol appeal, active. Young are purchasing vehicles. Public transport secondary for them. Pollution rise inevitable. What gives? more  
According to RBI, vehicle loans have witnessed about 137% growth in past three years - surpassing the home loan segment. Instant gratification and status symbols are highly appealing to younger demographics for cars and SUVs. These vehicles are diesel/petrol driven and can contribute in raising transport sector's carbon footprint and pollution. Banks provide vehicle loans in Class I cities , while NBFCs( non banking financial companies) are active in tier II cities, for example. For salaried employees, vehicle loans are granted easily as they have a steady income source. more  
Agree. Rightly analysed. Notwithstanding nation-state visits to the US, India dependant on discounted Russian oil, and solar power abundantly explored in India all it marks up to be garnish or flavouring. Russia can buy solar power from India in future. Until Russia buys India's solar energy, what is really driving Russia's economy and carbon emission is Russia exporting its cheap energy coal, gas and fuel oil. Fossil fuels the driving energy in Asian nations. more  
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