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Sunday, 13 March 11
COAL NO LONGER A CHEAP ENERGY SOURCE - THE SUNDAY LEADER
The Sunday Leader reported that, the addition of power generated through coal power to the country’s national grid was initially expected to result in the generation of cheap electricity. However, with the country’s (Sri Lanka) first coal power plant set to commence power generation shortly, Power and Energy Minister Champika Ranawaka says that it might not generate cheap power or result in a possible reduction in electricity tariffs.
The Minister observes that the era of cheap power ended in 1995. The increasing demand for energy has now made ‘cheap power’ a thing of the past.
The Norochcholai coal power plant project was mooted in the 1990s and initiated in 2006 with the promise of cheap power to the consumers. Successive government’s claimed that coal power would result in a reduction in the electricity tariffs.
However, the delays in implementing the project and the increase in coal prices have now prevented Sri Lanka from reaping the anticipated benefit of cheap power.
Although relatively cheaper than thermal power, coal power would not bring a reduction in current tariffs.
According to the Minister, the price of electricity depends on the energy sources and technology. “It is beyond our control,” he said.
Ranawaka said that coal power in the current context is not a long term solution to the country’s power generation issues and long term power diversification is therefore considered important.
“Coal power would bring in a long term diversification of the country’s energy sources and short term economic benefits, but would not result in the generation of cheap power as expected in the 1990s when the plan to construct a coal power plant was initially mooted,” he said.
Ranawaka explained that a coal power generated electricity unit that cost 18 cents (US$ 0.0016) in 1990 and 90 cents (US$ 0.0081) in 2000 has increased to Rs. 6.20 (US$ 0.05) in 2010. In 1990, an electricity unit was sold at Rs. 4.70 (US$ 0.042) in the country.
The increase in a unit price of coal power is a clear indication that coal power generation would not be able to bring the results anticipated in 1990.
The Minister noted that coal when Sri Lanka ordered its first shipment, was at US$ 69 per tonne and the energy cost of a unit was Rs. 3.20 (US$ 0.029). When the second shipment was ordered, the coal prices had increased to US$ 140 per tonne resulting in an increase in the per unit energy cost to Rs. 6.50 (US$ 0.059).
“We have now ordered the next shipment and the coal prices have further increased to US$ 160 per tonne,” Ranawaka said.
The increase in coal consumption and the lack of energy sources are expected to make coal a very expensive energy source by 2020.
Coal cannot be considered a cheap energy source since the 2008 crisis, the Minister said.
The per unit energy cost of diesel power is Rs. 22 (US$ 0.199), naphtha/heavy fuel is Rs. 10 (US$ 0.0908) and special fuel is Rs. 14 (US$ 0.1272) at present. An additional Rs. 5 (US$ 0.0454) and Rs. 3.50 (US$ 0.0318) for transmission and distribution has to be included for each unit in order to determine the final cost of a unit.
Coal power generation was included in the Ceylon Electricity Board’s (CEB’s) generation cycle in 1990 when coal in fact was a cheap source of power. However, the implementation of a coal power project was delayed till 2006 due to protests and objections raised by various parties.
The delay in the installation of a coal power plant has now resulted in coal power no longer being a cheap energy source.
Although coal is no longer a cheap energy source, it is relatively cheaper than renewable energy and diesel and naphtha generated energy.
Ranawaka also explained that when purchasing coal for power generation, the coal should be of a certain standard in order to minimise the environmental impact.
He explained that while there is coal available at different prices, the cheaper coal would result in higher environmental pollution.
Coal power generation causes a sludge, ash, carbon and sulfur emissions.
According to Ranawaka, unlike in the past, there are now ways of disposing the waste products.
While coal ash is one of the key components of cement, countries like India use the sludge as construction material.
“Technology is there to dispose the carbon and sulfur emissions from a coal power plant,” he said.
The carbon emission from the proposed 300MW coal power plant is expected to increase per capita emission by 110Kgs. In 2010, the total per capita level of emission stood at 660Kgs and the addition of the coal power plant would increase it up to 770Kgs.
Once the second phase of the Norochcholai coal power plant is completed and the Sampur power plant is also added into the grid, per capita emission levels will increase by 490-500Kgs.
The total per capita emission level will be 1150-1200Kgs.
The per capita emissions levels are currently 2,100Kgs in India, 6,800Kgs in China, 11,000Kgs in Europe, 21,000 Kgs in Australia and 24,000 Kgs in the US.
“Sri Lanka is far lower in the list,” Ranawaka said, adding that the country did not face any threat of environmental pollution from the coal power plants.
Nevertheless, coal power cannot be considered as a long term solution, he reiterated. It is this reason that has prompted the country’s power sector to consider liquid natural gas (LNG) and even nuclear power as energy sources. “The long term solution would always lie in green energy sources,” Ranawaka said.
Unlike hydro power, coal power is considered as a base load power that is generated throughout the day.
“We want to develop coal, thermal, LNG and nuclear power in the country. Nuclear power however, would take another 15 years,” the Minister said.
The Power and Energy Ministry is now looking at converting most of the thermal power plants in the country into LNG plants.
The LNG plants are to come into operation within two years, Ranawaka said.
As for the price factor, he said that the cost of LNG power would be similar to coal power.
However, Ranawaka said that in the context of rising commodity prices in the past few years, electricity prices have remained unchanged since 2008.
When all other commodity prices increased, the electricity prices have not been increased and have remained the same,” he said.
Sampur Plant Will Go Ahead
Power and Energy Minister Champika Ranawaka said the proposed Sampur power plant will go ahead as planned once the legal issues are resolved. The Sampur plant that is to be set up with Indian cooperation has been delayed due to a legal snag following several issues raised by the Attorney General.
“Once the legal issues are resolved, work on the power plant will commence,” Ranawaka said.
The Sampur coal power plant is expected to be completed by 2017. The type of coal to be used in the plant is to be decided by the Indians.
When asked if the plant would use coal that is of a good quality in order to minimise the environmental impact, Ranawaka said there would not be a problem with the quality of the coal used in the Sampur plant. (1 LKR = 0.00908926 USD - http://www.xe.com)
Source: The Sunday Leader (By Mandana Ismail Abeywickrema)
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Friday, 01 April 11
SUPRAS EX RICHARDS BAY COAL TERMINAL TO INDIA HOVERING AT $ 25 - 27.00 PMT - FEARNBULK
Handy
Atlantic markets remain stable with more activity from the Black Sea to FEast paying in the mid 20´s on Supras. The USG remains firm p ...
Friday, 01 April 11
DRY BULK MARKET WEAKENS ON SLOWER DEMAND, HOPES FOR MID-TERM REBOUND ON JAPANS RECONSTRUCTION - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market, as reflected in the Baltic Dry Index (BDI) retreated for a third day yesterday, after staying flat on Monday, to end at 1,530 p ...
Wednesday, 30 March 11
CHALLENGER SIGNS OPTION AGREEMENTS TO PURCHASE FOUR COAL PROJECTS IN INDONESIA
Challenger Signs Three Exclusive Option Agreements to Purchase Four Coal Projects in East Kalimantan, Indonesia
Challenger Deep Resources Corp.ha ...
Wednesday, 30 March 11
KPCL TO IMPORT ONE MILLION TONS OF 6300 GAD COAL
COALspot.com - Karnataka Power Corporation a state utility of Karnataka, India called for open tender for supply of one million tons of 6300 Kcal/kg ...
Wednesday, 30 March 11
WIKA GRABS PROJECT FROM ADARO INDONESIA - INSIDER STORIES
One of Indonesia's largest thermal coal PT Adaro Indonesia has finally mandated PT Wijaya Karya Tbk (WIKA) as a contractor to install and manage ov ...
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- Cigading International Bulk Terminal - Indonesia
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- Formosa Plastics Group - Taiwan
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- TeaM Sual Corporation - Philippines
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- Vizag Seaport Private Limited - India
- Straits Asia Resources Limited - Singapore
- SN Aboitiz Power Inc, Philippines
- Thai Mozambique Logistica
- IEA Clean Coal Centre - UK
- Singapore Mercantile Exchange
- Electricity Generating Authority of Thailand
- Mercuria Energy - Indonesia
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- Banpu Public Company Limited - Thailand
- Mjunction Services Limited - India
- Essar Steel Hazira Ltd - India
- Aditya Birla Group - India
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- Australian Coal Association
- European Bulk Services B.V. - Netherlands
- Interocean Group of Companies - India
- Uttam Galva Steels Limited - India
- Petrochimia International Co. Ltd.- Taiwan
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- Global Business Power Corporation, Philippines
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- SMG Consultants - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
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- Planning Commission, India
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- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Agrawal Coal Company - India
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- Aboitiz Power Corporation - Philippines
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- New Zealand Coal & Carbon
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- Energy Link Ltd, New Zealand
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- Ministry of Transport, Egypt
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- Bhatia International Limited - India
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- Bulk Trading Sa - Switzerland
- Parliament of New Zealand
- Simpson Spence & Young - Indonesia
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- Maharashtra Electricity Regulatory Commission - India
- Anglo American - United Kingdom
- PowerSource Philippines DevCo
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- Electricity Authority, New Zealand
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- PTC India Limited - India
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- Savvy Resources Ltd - HongKong
- Eastern Energy - Thailand
- Minerals Council of Australia
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- Directorate Of Revenue Intelligence - India
- Therma Luzon, Inc, Philippines
- Semirara Mining and Power Corporation, Philippines
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- South Luzon Thermal Energy Corporation
- Romanian Commodities Exchange
- Latin American Coal - Colombia
- Manunggal Multi Energi - Indonesia
- Port Waratah Coal Services - Australia
- Bharathi Cement Corporation - India
- Toyota Tsusho Corporation, Japan
- Orica Australia Pty. Ltd.
- Renaissance Capital - South Africa
- Posco Energy - South Korea
- TNB Fuel Sdn Bhd - Malaysia
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- Kapuas Tunggal Persada - Indonesia
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- Chamber of Mines of South Africa
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- Eastern Coal Council - USA
- Metalloyd Limited - United Kingdom
- Globalindo Alam Lestari - Indonesia
- Sakthi Sugars Limited - India
- Global Coal Blending Company Limited - Australia
- Trasteel International SA, Italy
- Mintek Dendrill Indonesia
- Karbindo Abesyapradhi - Indoneisa
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- Bhushan Steel Limited - India
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- Energy Development Corp, Philippines
- Timah Investasi Mineral - Indoneisa
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- Parry Sugars Refinery, India
- Intertek Mineral Services - Indonesia
- The Treasury - Australian Government
- Kobexindo Tractors - Indoneisa
- Standard Chartered Bank - UAE
- CIMB Investment Bank - Malaysia
- Billiton Holdings Pty Ltd - Australia
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- Tamil Nadu electricity Board
- MS Steel International - UAE
- Ceylon Electricity Board - Sri Lanka
- Larsen & Toubro Limited - India
- Merrill Lynch Commodities Europe
- Medco Energi Mining Internasional
- Sinarmas Energy and Mining - Indonesia
- ASAPP Information Group - India
- Barasentosa Lestari - Indonesia
- Economic Council, Georgia
- Indo Tambangraya Megah - Indonesia
- Ministry of Finance - Indonesia
- Vedanta Resources Plc - India
- Chettinad Cement Corporation Ltd - India
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- Sindya Power Generating Company Private Ltd
- Attock Cement Pakistan Limited
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- Karaikal Port Pvt Ltd - India
- Ambuja Cements Ltd - India
- Star Paper Mills Limited - India
- Samtan Co., Ltd - South Korea
- Makarim & Taira - Indonesia
- White Energy Company Limited
- SMC Global Power, Philippines
- Sojitz Corporation - Japan
- Lanco Infratech Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Siam City Cement PLC, Thailand
- Orica Mining Services - Indonesia
- The State Trading Corporation of India Ltd
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- Marubeni Corporation - India
- Sical Logistics Limited - India
- Coal and Oil Company - UAE
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Jorong Barutama Greston.PT - Indonesia
- Riau Bara Harum - Indonesia
- Kohat Cement Company Ltd. - Pakistan
- Iligan Light & Power Inc, Philippines
- Ministry of Mines - Canada
- Rashtriya Ispat Nigam Limited - India
- Indika Energy - Indonesia
- Indian Energy Exchange, India
- Power Finance Corporation Ltd., India
- Georgia Ports Authority, United States
- Sarangani Energy Corporation, Philippines
- Independent Power Producers Association of India
- Gujarat Mineral Development Corp Ltd - India
- Maheswari Brothers Coal Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
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- Indonesian Coal Mining Association
- Deloitte Consulting - India
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