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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, 15 February 11
INDONESIAN COAL FOR HARYANA THERMAL PLANTS - PUNJAB NEWS LINE
To tide over the recurring coal shortage at thermal plants Haryana Power Generation Corporation Limited (HPGCL) has gone for Malaysian coal for its ...
Tuesday, 15 February 11
TONNAGE OVERSUPPLY TO CHOKE FREIGHT RATES IN THE COMING MONTHS SAYS BIMCO - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
In a new report assessing the dry bulk market, BIMCO’s analysis suggests that freight rates for Capesize vessels are likely to remain depresse ...
Sunday, 13 February 11
COAL MARKETS 2011 TO HIGHLIGHT INDONESIAN COAL AND NEW SOURCES OF COAL SUPPLY
“Over 300 senior decision-makers from coal mining, power and trading companies expected to congregate in Singapore”
Press Release - K ...
Sunday, 13 February 11
YEAR OF RABBIT PUSHING FREIGHT MARKET UP
COALspot.com – “The market finally moved up with firmness in all sectors with some positive signs of markets recovering”, said Cap ...
Friday, 11 February 11
DRY BULK MARKET HEATING UP ON FRESH CARGO DEMAND - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market is on a high this week, with owners of smaller vessels turning their attention towards the spot market, in order to take advanta ...
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- Miang Besar Coal Terminal - Indonesia
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- Samtan Co., Ltd - South Korea
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- Baramulti Group, Indonesia
- Savvy Resources Ltd - HongKong
- Aboitiz Power Corporation - Philippines
- Deloitte Consulting - India
- Maharashtra Electricity Regulatory Commission - India
- Tamil Nadu electricity Board
- IHS Mccloskey Coal Group - USA
- Central Java Power - Indonesia
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- Sree Jayajothi Cements Limited - India
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- Global Green Power PLC Corporation, Philippines
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- Sinarmas Energy and Mining - Indonesia
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- McConnell Dowell - Australia
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- Siam City Cement - Thailand
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- Vijayanagar Sugar Pvt Ltd - India
- Uttam Galva Steels Limited - India
- Aditya Birla Group - India
- Australian Commodity Traders Exchange
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- Ministry of Transport, Egypt
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- Heidelberg Cement - Germany
- Rashtriya Ispat Nigam Limited - India
- Ministry of Mines - Canada
- Chamber of Mines of South Africa
- Bukit Makmur.PT - Indonesia
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- Salva Resources Pvt Ltd - India
- Orica Australia Pty. Ltd.
- Antam Resourcindo - Indonesia
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- South Luzon Thermal Energy Corporation
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- PetroVietnam Power Coal Import and Supply Company
- Bulk Trading Sa - Switzerland
- Ministry of Finance - Indonesia
- Interocean Group of Companies - India
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- Wood Mackenzie - Singapore
- Malabar Cements Ltd - India
- VISA Power Limited - India
- Metalloyd Limited - United Kingdom
- Australian Coal Association
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- European Bulk Services B.V. - Netherlands
- Maheswari Brothers Coal Limited - India
- Merrill Lynch Commodities Europe
- Posco Energy - South Korea
- Economic Council, Georgia
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- LBH Netherlands Bv - Netherlands
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- Timah Investasi Mineral - Indoneisa
- Iligan Light & Power Inc, Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Bank of Tokyo Mitsubishi UFJ Ltd
- OPG Power Generation Pvt Ltd - India
- Bhoruka Overseas - Indonesia
- Sojitz Corporation - Japan
- The State Trading Corporation of India Ltd
- GMR Energy Limited - India
- Port Waratah Coal Services - Australia
- PowerSource Philippines DevCo
- New Zealand Coal & Carbon
- Sindya Power Generating Company Private Ltd
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- Ceylon Electricity Board - Sri Lanka
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- Medco Energi Mining Internasional
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- Lanco Infratech Ltd - India
- Leighton Contractors Pty Ltd - Australia
- Xindia Steels Limited - India
- Indian Oil Corporation Limited
- Parry Sugars Refinery, India
- ICICI Bank Limited - India
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- London Commodity Brokers - England
- Georgia Ports Authority, United States
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- SMC Global Power, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Wilmar Investment Holdings
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- Chettinad Cement Corporation Ltd - India
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- Madhucon Powers Ltd - India
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- Grasim Industreis Ltd - India
- Electricity Authority, New Zealand
- Anglo American - United Kingdom
- Kobexindo Tractors - Indoneisa
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- Billiton Holdings Pty Ltd - Australia
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- Semirara Mining Corp, Philippines
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- Attock Cement Pakistan Limited
- Thiess Contractors Indonesia
- The Treasury - Australian Government
- Commonwealth Bank - Australia
- Parliament of New Zealand
- Alfred C Toepfer International GmbH - Germany
- Essar Steel Hazira Ltd - India
- International Coal Ventures Pvt Ltd - India
- The University of Queensland
- Cigading International Bulk Terminal - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- Latin American Coal - Colombia
- San Jose City I Power Corp, Philippines
- Larsen & Toubro Limited - India
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- CNBM International Corporation - China
- Star Paper Mills Limited - India
- Trasteel International SA, Italy
- Jaiprakash Power Ventures ltd
- Pendopo Energi Batubara - Indonesia
- Banpu Public Company Limited - Thailand
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- Therma Luzon, Inc, Philippines
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- Intertek Mineral Services - Indonesia
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- Planning Commission, India
- Gujarat Electricity Regulatory Commission - India
- Semirara Mining and Power Corporation, Philippines
- Sakthi Sugars Limited - India
- MS Steel International - UAE
- Indogreen Group - Indonesia
- SN Aboitiz Power Inc, Philippines
- Price Waterhouse Coopers - Russia
- Romanian Commodities Exchange
- Kaltim Prima Coal - Indonesia
- Mercuria Energy - Indonesia
- CIMB Investment Bank - Malaysia
- Kumho Petrochemical, South Korea
- Eastern Energy - Thailand
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- Energy Link Ltd, New Zealand
- Indian Energy Exchange, India
- Directorate Of Revenue Intelligence - India
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- Jindal Steel & Power Ltd - India
- Electricity Generating Authority of Thailand
- Minerals Council of Australia
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- Kideco Jaya Agung - Indonesia
- Binh Thuan Hamico - Vietnam
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