“ This report is a wake up call to investors and industry , questioning the economic basis for an increasing number of proposed coal projects in Australia ”
– Tim Buckley , IEEFA Director of Energy Finance studies Australasia
face a period of uncertainty
questioning the economic basis for an increasing number of proposed coal projects in Australia .”
The report says that as Chinese coal demand idles , eyes have turned to the Indian market to boost the industry . However , the Indian coalfired power generation industry faces fundamental financing problems .
“ India ’ s perilous economic and financial situation create further uncertainty for companies relying on its ability and willingness to import coal , with its associated implications for inflation , current account deficits , economic instability and energy security ,” Buckley said .
The report by the Institute for Energy shows that imported coal would need to be priced at double the wholesale price of India ’ s electricity and would not alleviate India ’ s energy poverty .
“ People think India will just follow the same growth of China , but India ’ s economy has choked on coal energy and it doesn ’ t need more expensive coal imports ,” he said .
In May of this year , HSBC and
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