Coronavirus company news summary – JSW Energy cancels purchase of Kamalanga Energy – Electrobras plans multi-billion investments to 2035

3 August 2020 (Last Updated August 3rd, 2020 09:29)

3 August

JSW Energy has terminated the $710m (Rs53.2bn) deal to acquire GMR’s Kamalanga Energy. In a statement, JSW Energy said: “With the elapsing of the long stop date, both parties have mutually agreed to terminate the transaction, given continued uncertainty due to the Covid-19 pandemic.” The parties announced the proposed acquisition last October. GMR Kamalanga Energy operates a 1.05GW thermal plant in the Indian state of Odisha. JSW put the deal on hold in May, reported The Hindu Business Line.

For the first time, worldwide coal-fired power generation capacity has declined. In the first half of 2020 plant closures, particularly in Europe and the US, outpaced the commencement of new units according to a report by Global Energy Monitor. At the same time, new projects were put on hold due to the Covid-19 pandemic. Although the net decline of 2.9GW is just slightly more than 0.1% of the total coal generation capacity in the world, , the report said it represents a ‘turning point’ in the electricity production.

Power plants in India used more gas in the second quarter of this year than in any quarter in the last three and a half years, according to a government data. LNG imports became cheaper than coal for the power plant operators in the west coast. According to power producers, this trend will continue until September this year as demand for LNG has fallen due to Covid-19, reported LiveMint.

Brazilian state-owned power firm Eletrobas has shown plans to invest $1.1bn every year until 2035 to expand its power generation and transmission capacity. This investment amount could also double if Eletrobas is successful in its privatisation, reported Reuters.