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Saturday, 02 January 10
TAIPOWER FORECASTS COAL DEMAND TO SNAP DECLINE


Taiwan Power Co., Asia's biggest importer of thermal coal, expects its demand for the fuel to rise in 2010 after falling for two years as the island's economic recovery boosts electricity consumption.

The state-run utility will probably increase the amount of coal burned by 0.9 percent to 26 million metric tons in 2010 and gas demand by 9 percent to 4.93 million tons, Chief Engineer Tu Yueh-yuan said in an interview in her Taipei office Thursday.

Taiwan Power, known as Taipower, is reversing two years of reduction in coal consumption as Taiwan emerges from its first recession since 2001.

The company gets about 80 percent of its coal on long-term contracts and the remainder from the spot market, Tu said. The island doesn't produce the fuel.

“We will adjust the amount of coal we buy in the spot market as needed,” she said. “The policies are to secure enough fuel and to get it for the lowest possible prices.”

Taipower, the monopoly grid operator in Taiwan, estimated that its coal consumption will fall 7.5 percent this year after a decline of 1.4 percent in 2008, according to Tu.

Coal-fired generators provided 43 percent of Taiwan's electricity in November, compared with 26 percent from natural gas-fueled plants and 17 percent from nuclear reactors, Taipower said on its Web site.

The island also gets electricity from hydropower and renewable sources such as wind. To read more China Post



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