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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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Wednesday, 12 January 11
BULKER DELIVERIES WEIGHING IN ON FREIGHT RATES KEEPING SENTIMENT ON A NEGATIVE MODE - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
A flurry of new buildings still hitting the water has caught up for good with the freight market, with capesizes unable to weather the storm. With r ...
Tuesday, 11 January 11
SUPRAMAX TRIP VIA INDONESIA TO INDIA US$ 8,000 PER DAY
Despite continued growth in the bulk trades, the delivery of new vessels is beginning to take its toll. The BDI continued its decline, finishing las ...
Tuesday, 11 January 11
DRY BULK MARKET REACHES NEW LOWS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market’s benchmark index, the Baltic Dry Index (BDI) lost further ground in the beginning of the week, following the trend of the ...
Monday, 10 January 11
MINING INVESTMENT TARGET TOO LOW - TEMPO INTERACTIVE
TEMPO Interactive reported that, the Indonesian Mining Association’s executive director, Priyo Pribadi, believes the government’s invest ...
Monday, 10 January 11
COAL MONGOLIA IS INVITING YOU TO THE INTERNATIONAL COAL SECTOR INVESTORS CONFERENCE
COALspot.com - (Press Release) - The Coal Mongolian Conference will take place at Chinggis Hotel, in Ulaanbaatar on 24-25, Feb 2011. The coal bonanz ...
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- Pendopo Energi Batubara - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Energy Development Corp, Philippines
- Agrawal Coal Company - India
- Bukit Baiduri Energy - Indonesia
- Coalindo Energy - Indonesia
- IHS Mccloskey Coal Group - USA
- Ambuja Cements Ltd - India
- CIMB Investment Bank - Malaysia
- GMR Energy Limited - India
- Ministry of Finance - Indonesia
- Bank of Tokyo Mitsubishi UFJ Ltd
- PTC India Limited - India
- Petron Corporation, Philippines
- Globalindo Alam Lestari - Indonesia
- GAC Shipping (India) Pvt Ltd
- Electricity Generating Authority of Thailand
- Gujarat Mineral Development Corp Ltd - India
- Straits Asia Resources Limited - Singapore
- Asia Pacific Energy Resources Ventures Inc, Philippines
- McConnell Dowell - Australia
- Chamber of Mines of South Africa
- Alfred C Toepfer International GmbH - Germany
- Semirara Mining and Power Corporation, Philippines
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Meenaskhi Energy Private Limited - India
- Central Java Power - Indonesia
- Makarim & Taira - Indonesia
- Mercator Lines Limited - India
- Krishnapatnam Port Company Ltd. - India
- Star Paper Mills Limited - India
- Rashtriya Ispat Nigam Limited - India
- Posco Energy - South Korea
- Lanco Infratech Ltd - India
- Chettinad Cement Corporation Ltd - India
- Altura Mining Limited, Indonesia
- Mercuria Energy - Indonesia
- Central Electricity Authority - India
- Wood Mackenzie - Singapore
- Eastern Energy - Thailand
- TNB Fuel Sdn Bhd - Malaysia
- Planning Commission, India
- Binh Thuan Hamico - Vietnam
- Antam Resourcindo - Indonesia
- Deloitte Consulting - India
- Borneo Indobara - Indonesia
- Commonwealth Bank - Australia
- Neyveli Lignite Corporation Ltd, - India
- Baramulti Group, Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Barasentosa Lestari - Indonesia
- Thai Mozambique Logistica
- Leighton Contractors Pty Ltd - Australia
- Rio Tinto Coal - Australia
- Malabar Cements Ltd - India
- Global Green Power PLC Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Parliament of New Zealand
- ICICI Bank Limited - India
- Power Finance Corporation Ltd., India
- Minerals Council of Australia
- The Treasury - Australian Government
- Kohat Cement Company Ltd. - Pakistan
- Bahari Cakrawala Sebuku - Indonesia
- Marubeni Corporation - India
- Therma Luzon, Inc, Philippines
- Trasteel International SA, Italy
- New Zealand Coal & Carbon
- VISA Power Limited - India
- Sarangani Energy Corporation, Philippines
- Formosa Plastics Group - Taiwan
- Ceylon Electricity Board - Sri Lanka
- Bulk Trading Sa - Switzerland
- Meralco Power Generation, Philippines
- Directorate Of Revenue Intelligence - India
- Dalmia Cement Bharat India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Attock Cement Pakistan Limited
- Oldendorff Carriers - Singapore
- CNBM International Corporation - China
- TeaM Sual Corporation - Philippines
- Simpson Spence & Young - Indonesia
- India Bulls Power Limited - India
- Ministry of Mines - Canada
- Xindia Steels Limited - India
- Edison Trading Spa - Italy
- Merrill Lynch Commodities Europe
- Indogreen Group - Indonesia
- Sical Logistics Limited - India
- MS Steel International - UAE
- Bhushan Steel Limited - India
- Thiess Contractors Indonesia
- Singapore Mercantile Exchange
- Independent Power Producers Association of India
- Sinarmas Energy and Mining - Indonesia
- Metalloyd Limited - United Kingdom
- Madhucon Powers Ltd - India
- Vijayanagar Sugar Pvt Ltd - India
- Vedanta Resources Plc - India
- Indonesian Coal Mining Association
- The University of Queensland
- Essar Steel Hazira Ltd - India
- Uttam Galva Steels Limited - India
- International Coal Ventures Pvt Ltd - India
- Medco Energi Mining Internasional
- The State Trading Corporation of India Ltd
- Bangladesh Power Developement Board
- Cement Manufacturers Association - India
- Manunggal Multi Energi - Indonesia
- Sakthi Sugars Limited - India
- Coal and Oil Company - UAE
- Indian Energy Exchange, India
- Port Waratah Coal Services - Australia
- Kartika Selabumi Mining - Indonesia
- Orica Mining Services - Indonesia
- Sojitz Corporation - Japan
- Standard Chartered Bank - UAE
- Jindal Steel & Power Ltd - India
- Kaltim Prima Coal - Indonesia
- Electricity Authority, New Zealand
- Kideco Jaya Agung - Indonesia
- Semirara Mining Corp, Philippines
- Kobexindo Tractors - Indoneisa
- Parry Sugars Refinery, India
- Maharashtra Electricity Regulatory Commission - India
- Gujarat Sidhee Cement - India
- Anglo American - United Kingdom
- Ministry of Transport, Egypt
- PowerSource Philippines DevCo
- Wilmar Investment Holdings
- Riau Bara Harum - Indonesia
- Renaissance Capital - South Africa
- Mjunction Services Limited - India
- ASAPP Information Group - India
- Savvy Resources Ltd - HongKong
- Kepco SPC Power Corporation, Philippines
- Indo Tambangraya Megah - Indonesia
- Grasim Industreis Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Miang Besar Coal Terminal - Indonesia
- Jaiprakash Power Ventures ltd
- Larsen & Toubro Limited - India
- Orica Australia Pty. Ltd.
- PNOC Exploration Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Petrochimia International Co. Ltd.- Taiwan
- Africa Commodities Group - South Africa
- Ind-Barath Power Infra Limited - India
- Goldman Sachs - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Interocean Group of Companies - India
- Timah Investasi Mineral - Indoneisa
- Bhoruka Overseas - Indonesia
- Bhatia International Limited - India
- Indika Energy - Indonesia
- Kumho Petrochemical, South Korea
- IEA Clean Coal Centre - UK
- Iligan Light & Power Inc, Philippines
- Toyota Tsusho Corporation, Japan
- Price Waterhouse Coopers - Russia
- White Energy Company Limited
- Bayan Resources Tbk. - Indonesia
- AsiaOL BioFuels Corp., Philippines
- London Commodity Brokers - England
- SMG Consultants - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Heidelberg Cement - Germany
- Pipit Mutiara Jaya. PT, Indonesia
- Gujarat Electricity Regulatory Commission - India
- Carbofer General Trading SA - India
- Global Coal Blending Company Limited - Australia
- OPG Power Generation Pvt Ltd - India
- Siam City Cement PLC, Thailand
- Vizag Seaport Private Limited - India
- GVK Power & Infra Limited - India
- Bukit Makmur.PT - Indonesia
- Intertek Mineral Services - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Karaikal Port Pvt Ltd - India
- Australian Coal Association
- Banpu Public Company Limited - Thailand
- Billiton Holdings Pty Ltd - Australia
- Aditya Birla Group - India
- Maheswari Brothers Coal Limited - India
- Tata Chemicals Ltd - India
- LBH Netherlands Bv - Netherlands
- Eastern Coal Council - USA
- SMC Global Power, Philippines
- Samtan Co., Ltd - South Korea
- Holcim Trading Pte Ltd - Singapore
- Salva Resources Pvt Ltd - India
- Global Business Power Corporation, Philippines
- Tamil Nadu electricity Board
- Australian Commodity Traders Exchange
- Kapuas Tunggal Persada - Indonesia
- Energy Link Ltd, New Zealand
- Cigading International Bulk Terminal - Indonesia
- Indian Oil Corporation Limited
- Economic Council, Georgia
- Coastal Gujarat Power Limited - India
- Aboitiz Power Corporation - Philippines
- Siam City Cement - Thailand
- Georgia Ports Authority, United States
- Sindya Power Generating Company Private Ltd
- PetroVietnam Power Coal Import and Supply Company
- South Luzon Thermal Energy Corporation
- European Bulk Services B.V. - Netherlands
- Bharathi Cement Corporation - India
- Latin American Coal - Colombia
- Mintek Dendrill Indonesia
- Videocon Industries ltd - India
- San Jose City I Power Corp, Philippines
- Sree Jayajothi Cements Limited - India
- Romanian Commodities Exchange
- SN Aboitiz Power Inc, Philippines
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