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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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Tuesday, 08 March 11
US$ 8 BILLION WORTH OF INFRASTRUCTURE PROJECTS IN PIPELINE IN INDONESIA - WOOD MACKENZIE
India’s Increasing Demand for Thermal Coal Cannot Be Satisfied Without Emerging Coal Areas in Indonesia - Wood Mackenzie
At Coa ...
Tuesday, 08 March 11
INDIA'S VEDANTA TO ACQUIRE COAL MINES IN OVERSEAS
COALspot.com - India's Vedanta group is also looking at long-term off take agreements and possible acquire of coal mines overseas, the official sai ...
Tuesday, 08 March 11
MINERS SAY VALUE-ADDED LAW WILL HURT IN THE LONG RUN - THE JAKARTA GLOBE
The Jakarta Globe reported that, Government plans to require miners to give added value to their exported commodities could end up costing the count ...
Tuesday, 08 March 11
THE PANAMAX MARKET THIS WEEK FIRMED UP - BRS
Underlining the unpredictability of the current market, rates for all dry bulk segments swung up again last week. Stronger exports out of South Amer ...
Sunday, 06 March 11
THE S6 ROUTE MAY CONTINUE TO BE FIRM - VISTAAR
COALspot.com - The freight market was firm this week with all indices up. The BDI , Cape Index and Panamax index was up by almost 9 pct where as Sup ...
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- Eastern Coal Council - USA
- Kepco SPC Power Corporation, Philippines
- IHS Mccloskey Coal Group - USA
- Ministry of Mines - Canada
- Siam City Cement - Thailand
- London Commodity Brokers - England
- Toyota Tsusho Corporation, Japan
- Central Java Power - Indonesia
- Ind-Barath Power Infra Limited - India
- Tamil Nadu electricity Board
- Commonwealth Bank - Australia
- Aditya Birla Group - India
- Billiton Holdings Pty Ltd - Australia
- South Luzon Thermal Energy Corporation
- Krishnapatnam Port Company Ltd. - India
- Parry Sugars Refinery, India
- Leighton Contractors Pty Ltd - Australia
- Altura Mining Limited, Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Semirara Mining and Power Corporation, Philippines
- Jindal Steel & Power Ltd - India
- Baramulti Group, Indonesia
- Bhatia International Limited - India
- ASAPP Information Group - India
- Minerals Council of Australia
- Latin American Coal - Colombia
- Mintek Dendrill Indonesia
- VISA Power Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Mjunction Services Limited - India
- PowerSource Philippines DevCo
- Pendopo Energi Batubara - Indonesia
- Antam Resourcindo - Indonesia
- Deloitte Consulting - India
- Coal and Oil Company - UAE
- Madhucon Powers Ltd - India
- Iligan Light & Power Inc, Philippines
- Sinarmas Energy and Mining - Indonesia
- Petron Corporation, Philippines
- Dalmia Cement Bharat India
- Borneo Indobara - Indonesia
- TeaM Sual Corporation - Philippines
- Australian Coal Association
- Indo Tambangraya Megah - Indonesia
- SMG Consultants - Indonesia
- Ministry of Finance - Indonesia
- India Bulls Power Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Manunggal Multi Energi - Indonesia
- Bhoruka Overseas - Indonesia
- Binh Thuan Hamico - Vietnam
- Siam City Cement PLC, Thailand
- Bahari Cakrawala Sebuku - Indonesia
- Indian Energy Exchange, India
- Planning Commission, India
- Kideco Jaya Agung - Indonesia
- Merrill Lynch Commodities Europe
- Heidelberg Cement - Germany
- Indika Energy - Indonesia
- Independent Power Producers Association of India
- Medco Energi Mining Internasional
- European Bulk Services B.V. - Netherlands
- Energy Development Corp, Philippines
- Standard Chartered Bank - UAE
- Kobexindo Tractors - Indoneisa
- Maharashtra Electricity Regulatory Commission - India
- Kohat Cement Company Ltd. - Pakistan
- Salva Resources Pvt Ltd - India
- Cement Manufacturers Association - India
- Eastern Energy - Thailand
- Attock Cement Pakistan Limited
- Bukit Baiduri Energy - Indonesia
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Gujarat Sidhee Cement - India
- Ambuja Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- Kartika Selabumi Mining - Indonesia
- Jaiprakash Power Ventures ltd
- SMC Global Power, Philippines
- Samtan Co., Ltd - South Korea
- Anglo American - United Kingdom
- SN Aboitiz Power Inc, Philippines
- Orica Mining Services - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- Makarim & Taira - Indonesia
- Meenaskhi Energy Private Limited - India
- Maheswari Brothers Coal Limited - India
- Lanco Infratech Ltd - India
- Renaissance Capital - South Africa
- Rashtriya Ispat Nigam Limited - India
- Kapuas Tunggal Persada - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- New Zealand Coal & Carbon
- LBH Netherlands Bv - Netherlands
- PetroVietnam Power Coal Import and Supply Company
- Bayan Resources Tbk. - Indonesia
- Central Electricity Authority - India
- Sarangani Energy Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Singapore Mercantile Exchange
- San Jose City I Power Corp, Philippines
- Semirara Mining Corp, Philippines
- Goldman Sachs - Singapore
- Vedanta Resources Plc - India
- Cigading International Bulk Terminal - Indonesia
- Tata Chemicals Ltd - India
- Uttam Galva Steels Limited - India
- Star Paper Mills Limited - India
- The Treasury - Australian Government
- Pipit Mutiara Jaya. PT, Indonesia
- Coastal Gujarat Power Limited - India
- Therma Luzon, Inc, Philippines
- Metalloyd Limited - United Kingdom
- Grasim Industreis Ltd - India
- Intertek Mineral Services - Indonesia
- Essar Steel Hazira Ltd - India
- Electricity Authority, New Zealand
- Global Coal Blending Company Limited - Australia
- Indonesian Coal Mining Association
- Energy Link Ltd, New Zealand
- Wilmar Investment Holdings
- AsiaOL BioFuels Corp., Philippines
- Asmin Koalindo Tuhup - Indonesia
- Rio Tinto Coal - Australia
- Globalindo Alam Lestari - Indonesia
- PTC India Limited - India
- Ministry of Transport, Egypt
- Directorate Of Revenue Intelligence - India
- Marubeni Corporation - India
- Bukit Asam (Persero) Tbk - Indonesia
- PNOC Exploration Corporation - Philippines
- Sree Jayajothi Cements Limited - India
- The State Trading Corporation of India Ltd
- Power Finance Corporation Ltd., India
- Holcim Trading Pte Ltd - Singapore
- Banpu Public Company Limited - Thailand
- Simpson Spence & Young - Indonesia
- White Energy Company Limited
- Formosa Plastics Group - Taiwan
- Barasentosa Lestari - Indonesia
- Electricity Generating Authority of Thailand
- Edison Trading Spa - Italy
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Bangladesh Power Developement Board
- Kumho Petrochemical, South Korea
- Orica Australia Pty. Ltd.
- Straits Asia Resources Limited - Singapore
- Global Business Power Corporation, Philippines
- Agrawal Coal Company - India
- Larsen & Toubro Limited - India
- Xindia Steels Limited - India
- Sical Logistics Limited - India
- Indian Oil Corporation Limited
- Bharathi Cement Corporation - India
- Alfred C Toepfer International GmbH - Germany
- Thiess Contractors Indonesia
- MS Steel International - UAE
- Sakthi Sugars Limited - India
- Romanian Commodities Exchange
- Kaltim Prima Coal - Indonesia
- GMR Energy Limited - India
- Oldendorff Carriers - Singapore
- Africa Commodities Group - South Africa
- Riau Bara Harum - Indonesia
- GAC Shipping (India) Pvt Ltd
- Vijayanagar Sugar Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Bulk Trading Sa - Switzerland
- Kalimantan Lumbung Energi - Indonesia
- Mercuria Energy - Indonesia
- Chamber of Mines of South Africa
- Georgia Ports Authority, United States
- Meralco Power Generation, Philippines
- Timah Investasi Mineral - Indoneisa
- CNBM International Corporation - China
- IEA Clean Coal Centre - UK
- Bukit Makmur.PT - Indonesia
- Coalindo Energy - Indonesia
- Savvy Resources Ltd - HongKong
- CIMB Investment Bank - Malaysia
- TNB Fuel Sdn Bhd - Malaysia
- Malabar Cements Ltd - India
- Wood Mackenzie - Singapore
- The University of Queensland
- Sindya Power Generating Company Private Ltd
- Thai Mozambique Logistica
- Australian Commodity Traders Exchange
- Aboitiz Power Corporation - Philippines
- Vizag Seaport Private Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Gujarat Electricity Regulatory Commission - India
- Trasteel International SA, Italy
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Posco Energy - South Korea
- GVK Power & Infra Limited - India
- Bhushan Steel Limited - India
- Chettinad Cement Corporation Ltd - India
- Neyveli Lignite Corporation Ltd, - India
- Karaikal Port Pvt Ltd - India
- Price Waterhouse Coopers - Russia
- Miang Besar Coal Terminal - Indonesia
- Videocon Industries ltd - India
- Mercator Lines Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Economic Council, Georgia
- Indogreen Group - Indonesia
- Parliament of New Zealand
- McConnell Dowell - Australia
- Port Waratah Coal Services - Australia
- ICICI Bank Limited - India
- Sojitz Corporation - Japan
- International Coal Ventures Pvt Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Interocean Group of Companies - India
- Offshore Bulk Terminal Pte Ltd, Singapore
- Carbofer General Trading SA - India
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