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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, 25 January 11
DRY BULK RATES CONTINUED TO TUMBLE LAST WEEK - BRS
With weather-related problems affecting the short-term outlook, and new building deliveries the longer-term picture, dry bulk rates continued to tum ...
Tuesday, 25 January 11
R-POWER TO INVEST $5BN IN INDONESIA - THE TIMES OF INDIA
The Times of India reported that, In what is being seen as one of the largest foreign investments in Indonesia, Reliance Power will infuse $5 billio ...
Monday, 24 January 11
GOVT PROMISES COAL FOR PLN DESPITE PRICE SPIKES - THE JAKARTA POST
The Jakarta Post reported that, the government says state electricity company PT PLN will receive enough coal to fire its power plants, despite pric ...
Monday, 24 January 11
DRY BULK MARKETS DOWNTURN SEES NO RELIEF - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
The dry bulk market has kept falling for yet another week, with the industry’s benchmark, the Baltic Dry Index (BDI) losing an additional 4.79 ...
Sunday, 23 January 11
THE AVERAGE CHARTER RATE FOR CAPE SIZE VESSELS WAS AT $ 8,859 PD ALMOST CLOSE TO 2008 LOWS - VISTAAR
COALspot.com - The BDI continues to drop and saw a drop of about 5 pct this week closing at 1,370 points. “ In May 2010 the BDI touched ...
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- Central Electricity Authority - India
- Bukit Makmur.PT - Indonesia
- Star Paper Mills Limited - India
- Metalloyd Limited - United Kingdom
- Formosa Plastics Group - Taiwan
- Independent Power Producers Association of India
- Gujarat Mineral Development Corp Ltd - India
- Port Waratah Coal Services - Australia
- Baramulti Group, Indonesia
- The State Trading Corporation of India Ltd
- New Zealand Coal & Carbon
- Bukit Baiduri Energy - Indonesia
- Cigading International Bulk Terminal - Indonesia
- SMC Global Power, Philippines
- South Luzon Thermal Energy Corporation
- Kepco SPC Power Corporation, Philippines
- Xindia Steels Limited - India
- Rio Tinto Coal - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Carbofer General Trading SA - India
- Marubeni Corporation - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Kobexindo Tractors - Indoneisa
- Jorong Barutama Greston.PT - Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
- Coastal Gujarat Power Limited - India
- Timah Investasi Mineral - Indoneisa
- Electricity Authority, New Zealand
- Posco Energy - South Korea
- Ministry of Finance - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- Pendopo Energi Batubara - Indonesia
- Minerals Council of Australia
- Mercator Lines Limited - India
- TeaM Sual Corporation - Philippines
- Kohat Cement Company Ltd. - Pakistan
- Kaltim Prima Coal - Indonesia
- Merrill Lynch Commodities Europe
- Rashtriya Ispat Nigam Limited - India
- Deloitte Consulting - India
- Miang Besar Coal Terminal - Indonesia
- Sojitz Corporation - Japan
- Bahari Cakrawala Sebuku - Indonesia
- Bharathi Cement Corporation - India
- Tamil Nadu electricity Board
- Billiton Holdings Pty Ltd - Australia
- Indian Energy Exchange, India
- Barasentosa Lestari - Indonesia
- White Energy Company Limited
- Iligan Light & Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- Simpson Spence & Young - Indonesia
- Indogreen Group - Indonesia
- Latin American Coal - Colombia
- Power Finance Corporation Ltd., India
- Siam City Cement PLC, Thailand
- Jindal Steel & Power Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Intertek Mineral Services - Indonesia
- Indian Oil Corporation Limited
- Straits Asia Resources Limited - Singapore
- Dalmia Cement Bharat India
- SN Aboitiz Power Inc, Philippines
- Savvy Resources Ltd - HongKong
- Meralco Power Generation, Philippines
- Kumho Petrochemical, South Korea
- Wood Mackenzie - Singapore
- Ministry of Mines - Canada
- Aboitiz Power Corporation - Philippines
- Offshore Bulk Terminal Pte Ltd, Singapore
- Thai Mozambique Logistica
- ICICI Bank Limited - India
- Riau Bara Harum - Indonesia
- Videocon Industries ltd - India
- The University of Queensland
- Attock Cement Pakistan Limited
- Antam Resourcindo - Indonesia
- Vedanta Resources Plc - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Petron Corporation, Philippines
- Bhoruka Overseas - Indonesia
- Planning Commission, India
- Holcim Trading Pte Ltd - Singapore
- Malabar Cements Ltd - India
- Sindya Power Generating Company Private Ltd
- Karaikal Port Pvt Ltd - India
- SMG Consultants - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Maheswari Brothers Coal Limited - India
- Bhushan Steel Limited - India
- Energy Development Corp, Philippines
- Economic Council, Georgia
- Samtan Co., Ltd - South Korea
- Tata Chemicals Ltd - India
- GMR Energy Limited - India
- Indika Energy - Indonesia
- Sakthi Sugars Limited - India
- Meenaskhi Energy Private Limited - India
- Australian Commodity Traders Exchange
- Leighton Contractors Pty Ltd - Australia
- Orica Mining Services - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Krishnapatnam Port Company Ltd. - India
- PowerSource Philippines DevCo
- International Coal Ventures Pvt Ltd - India
- Uttam Galva Steels Limited - India
- San Jose City I Power Corp, Philippines
- Indonesian Coal Mining Association
- Cement Manufacturers Association - India
- Eastern Coal Council - USA
- Coalindo Energy - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Vizag Seaport Private Limited - India
- Ceylon Electricity Board - Sri Lanka
- Romanian Commodities Exchange
- CIMB Investment Bank - Malaysia
- Anglo American - United Kingdom
- Renaissance Capital - South Africa
- Directorate Of Revenue Intelligence - India
- Heidelberg Cement - Germany
- GN Power Mariveles Coal Plant, Philippines
- Trasteel International SA, Italy
- Energy Link Ltd, New Zealand
- Indo Tambangraya Megah - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Australian Coal Association
- Sree Jayajothi Cements Limited - India
- Manunggal Multi Energi - Indonesia
- Lanco Infratech Ltd - India
- Binh Thuan Hamico - Vietnam
- Coal and Oil Company - UAE
- ASAPP Information Group - India
- Borneo Indobara - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- India Bulls Power Limited - India
- AsiaOL BioFuels Corp., Philippines
- Thiess Contractors Indonesia
- Gujarat Sidhee Cement - India
- Vijayanagar Sugar Pvt Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Central Java Power - Indonesia
- The Treasury - Australian Government
- Electricity Generating Authority of Thailand
- Edison Trading Spa - Italy
- Global Business Power Corporation, Philippines
- PetroVietnam Power Coal Import and Supply Company
- MS Steel International - UAE
- Semirara Mining Corp, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Therma Luzon, Inc, Philippines
- VISA Power Limited - India
- GAC Shipping (India) Pvt Ltd
- IHS Mccloskey Coal Group - USA
- Oldendorff Carriers - Singapore
- Altura Mining Limited, Indonesia
- IEA Clean Coal Centre - UK
- Makarim & Taira - Indonesia
- Parry Sugars Refinery, India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Chamber of Mines of South Africa
- Ministry of Transport, Egypt
- Sarangani Energy Corporation, Philippines
- Goldman Sachs - Singapore
- Aditya Birla Group - India
- Salva Resources Pvt Ltd - India
- Singapore Mercantile Exchange
- GVK Power & Infra Limited - India
- European Bulk Services B.V. - Netherlands
- Kartika Selabumi Mining - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Price Waterhouse Coopers - Russia
- Toyota Tsusho Corporation, Japan
- Banpu Public Company Limited - Thailand
- Parliament of New Zealand
- Larsen & Toubro Limited - India
- Kapuas Tunggal Persada - Indonesia
- PNOC Exploration Corporation - Philippines
- CNBM International Corporation - China
- Mjunction Services Limited - India
- Bhatia International Limited - India
- Africa Commodities Group - South Africa
- Interocean Group of Companies - India
- Bangladesh Power Developement Board
- OPG Power Generation Pvt Ltd - India
- PTC India Limited - India
- London Commodity Brokers - England
- Eastern Energy - Thailand
- Bulk Trading Sa - Switzerland
- Directorate General of MIneral and Coal - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Grasim Industreis Ltd - India
- Agrawal Coal Company - India
- Globalindo Alam Lestari - Indonesia
- Kideco Jaya Agung - Indonesia
- Siam City Cement - Thailand
- Neyveli Lignite Corporation Ltd, - India
- Ambuja Cements Ltd - India
- Georgia Ports Authority, United States
- Wilmar Investment Holdings
- Global Coal Blending Company Limited - Australia
- Bayan Resources Tbk. - Indonesia
- Chettinad Cement Corporation Ltd - India
- Alfred C Toepfer International GmbH - Germany
- Mintek Dendrill Indonesia
- Standard Chartered Bank - UAE
- Mercuria Energy - Indonesia
- Madhucon Powers Ltd - India
- Ind-Barath Power Infra Limited - India
- McConnell Dowell - Australia
- Commonwealth Bank - Australia
- Medco Energi Mining Internasional
- Orica Australia Pty. Ltd.
- Sical Logistics Limited - India
- Global Green Power PLC Corporation, Philippines
- Jaiprakash Power Ventures ltd
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