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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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Monday, 21 February 11
CHURCHILL MINING RECEIVES SIGNIFICANT INTEREST, PROPOSALS TO DEVELOP EAST KUTAI COAL PROJECT - PROACTIVE INVESTORS
Proactive Investors reported that, Churchill Mining has received a number of specific proposals to fund and develop its massive East Kutai coa ...
Monday, 21 February 11
ABOLISH 5% DUTY ON COAL IMPORTS: SHINDE
Indian Express reported that, with acute coal shortage of domestic coal threatening to destabilise its power generation plans, the power ministry ha ...
Saturday, 19 February 11
THE FREIGHT MARKET EXPECTED TO BE STEADY NEXT WEEK - VISTAAR
COALspot.com - The market was quite firm this week with freight rates in South east asia and India/Feast almost up by 30 pct.
However towards end ...
Thursday, 17 February 11
COAL-GEN EUROPE 2011 REAFFIRMS THE IMPORTANCE OF COAL
Press Release: The third COAL-GEN Europe conference and exhibition, kicked off on Tuesday 15 February, with leading experts, professionals and compa ...
Thursday, 17 February 11
UNCERTAINTY AND VOLATILITY - FEARNBULK
Handy
Recovering market as evidenced by the solid USD 16k/day achieved by a handymax from Continent to east Med with scrap. More short period requ ...
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- Salva Resources Pvt Ltd - India
- Ministry of Mines - Canada
- Chamber of Mines of South Africa
- CNBM International Corporation - China
- Baramulti Group, Indonesia
- MS Steel International - UAE
- Kapuas Tunggal Persada - Indonesia
- Altura Mining Limited, Indonesia
- Sinarmas Energy and Mining - Indonesia
- Eastern Coal Council - USA
- Neyveli Lignite Corporation Ltd, - India
- Dalmia Cement Bharat India
- Gujarat Electricity Regulatory Commission - India
- McConnell Dowell - Australia
- Renaissance Capital - South Africa
- Maharashtra Electricity Regulatory Commission - India
- Uttam Galva Steels Limited - India
- Posco Energy - South Korea
- Bukit Baiduri Energy - Indonesia
- European Bulk Services B.V. - Netherlands
- Orica Australia Pty. Ltd.
- Offshore Bulk Terminal Pte Ltd, Singapore
- Singapore Mercantile Exchange
- The State Trading Corporation of India Ltd
- Kumho Petrochemical, South Korea
- Vijayanagar Sugar Pvt Ltd - India
- Therma Luzon, Inc, Philippines
- PetroVietnam Power Coal Import and Supply Company
- Billiton Holdings Pty Ltd - Australia
- Formosa Plastics Group - Taiwan
- Parry Sugars Refinery, India
- SN Aboitiz Power Inc, Philippines
- Indian Energy Exchange, India
- Banpu Public Company Limited - Thailand
- Directorate Of Revenue Intelligence - India
- Semirara Mining and Power Corporation, Philippines
- Energy Development Corp, Philippines
- Simpson Spence & Young - Indonesia
- Videocon Industries ltd - India
- Bhatia International Limited - India
- Larsen & Toubro Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Georgia Ports Authority, United States
- Essar Steel Hazira Ltd - India
- Ambuja Cements Ltd - India
- Thai Mozambique Logistica
- Australian Coal Association
- Petron Corporation, Philippines
- Tamil Nadu electricity Board
- Manunggal Multi Energi - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Romanian Commodities Exchange
- Bharathi Cement Corporation - India
- Kideco Jaya Agung - Indonesia
- Kepco SPC Power Corporation, Philippines
- Tata Chemicals Ltd - India
- Electricity Authority, New Zealand
- PTC India Limited - India
- Madhucon Powers Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Port Waratah Coal Services - Australia
- ASAPP Information Group - India
- Energy Link Ltd, New Zealand
- Africa Commodities Group - South Africa
- New Zealand Coal & Carbon
- Toyota Tsusho Corporation, Japan
- Bhoruka Overseas - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Coal and Oil Company - UAE
- Planning Commission, India
- London Commodity Brokers - England
- Petrochimia International Co. Ltd.- Taiwan
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Indian Oil Corporation Limited
- Kartika Selabumi Mining - Indonesia
- Power Finance Corporation Ltd., India
- Alfred C Toepfer International GmbH - Germany
- Marubeni Corporation - India
- Rio Tinto Coal - Australia
- Mercator Lines Limited - India
- Trasteel International SA, Italy
- Cement Manufacturers Association - India
- Antam Resourcindo - Indonesia
- Xindia Steels Limited - India
- Straits Asia Resources Limited - Singapore
- Iligan Light & Power Inc, Philippines
- IHS Mccloskey Coal Group - USA
- Global Coal Blending Company Limited - Australia
- AsiaOL BioFuels Corp., Philippines
- Central Electricity Authority - India
- Eastern Energy - Thailand
- Mintek Dendrill Indonesia
- Gujarat Sidhee Cement - India
- VISA Power Limited - India
- Economic Council, Georgia
- SMG Consultants - Indonesia
- Sree Jayajothi Cements Limited - India
- Global Green Power PLC Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Standard Chartered Bank - UAE
- Globalindo Alam Lestari - Indonesia
- Samtan Co., Ltd - South Korea
- CIMB Investment Bank - Malaysia
- The University of Queensland
- SMC Global Power, Philippines
- Aditya Birla Group - India
- Ministry of Finance - Indonesia
- Vizag Seaport Private Limited - India
- Vedanta Resources Plc - India
- Semirara Mining Corp, Philippines
- Chettinad Cement Corporation Ltd - India
- GN Power Mariveles Coal Plant, Philippines
- Savvy Resources Ltd - HongKong
- Pendopo Energi Batubara - Indonesia
- White Energy Company Limited
- Makarim & Taira - Indonesia
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- Coalindo Energy - Indonesia
- Star Paper Mills Limited - India
- Sojitz Corporation - Japan
- Carbofer General Trading SA - India
- Jorong Barutama Greston.PT - Indonesia
- Global Business Power Corporation, Philippines
- Indogreen Group - Indonesia
- Bulk Trading Sa - Switzerland
- Medco Energi Mining Internasional
- Pipit Mutiara Jaya. PT, Indonesia
- Siam City Cement PLC, Thailand
- Merrill Lynch Commodities Europe
- Krishnapatnam Port Company Ltd. - India
- Maheswari Brothers Coal Limited - India
- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- Bukit Asam (Persero) Tbk - Indonesia
- PowerSource Philippines DevCo
- Indo Tambangraya Megah - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- Mjunction Services Limited - India
- Central Java Power - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- TeaM Sual Corporation - Philippines
- Thiess Contractors Indonesia
- LBH Netherlands Bv - Netherlands
- Meralco Power Generation, Philippines
- Leighton Contractors Pty Ltd - Australia
- Jaiprakash Power Ventures ltd
- Heidelberg Cement - Germany
- Binh Thuan Hamico - Vietnam
- Borneo Indobara - Indonesia
- Interocean Group of Companies - India
- GMR Energy Limited - India
- GVK Power & Infra Limited - India
- Barasentosa Lestari - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Kaltim Prima Coal - Indonesia
- PNOC Exploration Corporation - Philippines
- Jindal Steel & Power Ltd - India
- Malabar Cements Ltd - India
- India Bulls Power Limited - India
- Attock Cement Pakistan Limited
- Lanco Infratech Ltd - India
- Bhushan Steel Limited - India
- Directorate General of MIneral and Coal - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- ICICI Bank Limited - India
- Wood Mackenzie - Singapore
- Ministry of Transport, Egypt
- Agrawal Coal Company - India
- Australian Commodity Traders Exchange
- South Luzon Thermal Energy Corporation
- Indika Energy - Indonesia
- Parliament of New Zealand
- Bukit Makmur.PT - Indonesia
- Sical Logistics Limited - India
- OPG Power Generation Pvt Ltd - India
- Anglo American - United Kingdom
- Edison Trading Spa - Italy
- Timah Investasi Mineral - Indoneisa
- Orica Mining Services - Indonesia
- Latin American Coal - Colombia
- Minerals Council of Australia
- Karbindo Abesyapradhi - Indoneisa
- Gujarat Mineral Development Corp Ltd - India
- Deloitte Consulting - India
- Kohat Cement Company Ltd. - Pakistan
- Meenaskhi Energy Private Limited - India
- Indonesian Coal Mining Association
- Commonwealth Bank - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Riau Bara Harum - Indonesia
- Mercuria Energy - Indonesia
- Rashtriya Ispat Nigam Limited - India
- GAC Shipping (India) Pvt Ltd
- Ceylon Electricity Board - Sri Lanka
- Bayan Resources Tbk. - Indonesia
- Electricity Generating Authority of Thailand
- International Coal Ventures Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Sakthi Sugars Limited - India
- Siam City Cement - Thailand
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Ind-Barath Power Infra Limited - India
- Kobexindo Tractors - Indoneisa
- Independent Power Producers Association of India
- Bangladesh Power Developement Board
- Grasim Industreis Ltd - India
- Sarangani Energy Corporation, Philippines
- Aboitiz Power Corporation - Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- The Treasury - Australian Government
- Cigading International Bulk Terminal - Indonesia
- Price Waterhouse Coopers - Russia
- Karaikal Port Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Goldman Sachs - Singapore
- Sindya Power Generating Company Private Ltd
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