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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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Saturday, 15 January 11
MAKE SACRIFICES TO SAVE PLN, INDONESIA GOVT BEGS MINERS - THE JAKARTA GLOBE
The Jakarta Globe reported that, Darwin Zahedi Saleh, Indonesia's minister of energy and mineral resources, on Friday appealed to local coal compan ...
Saturday, 15 January 11
RISING PRICES, GOVERNMENT DECREE LEAVE PLN AT LOGGERHEADS WITH COAL FIRMS - THE JAKARTA GLOBE
The Jakarta Globe reported that, As coal prices continue to increase, state utility Perusahaan Listrik Negara faces problems in securing enough coal ...
Thursday, 13 January 11
SURGING COAL PRICES UNDERMINE PLN'S EFFICIENCY PROGRAM - THE JAKARTA POST
The Jakarta Post reported that, The soaring global coal prices are undermining state electricity company PT PLN's pledge to improve its operational ...
Thursday, 13 January 11
SPML INFRA TO DOUBLE INDONESIA COAL MINE OUTPUT IN TWO YEARS - DNA INDIA
DNA India reported that, Kolkata-based infrastructure company SPML Infra, formerly Subhash Projects & Marketing Ltd, will in two years nearly do ...
Thursday, 13 January 11
DRY BULK RATES HIT NEW MULTI-MONTH LOWS ON AUSTRALIAS FLOODS - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Floods in Australia’s Queensland has seriously disrupted coal shipments and together with a flood of vessels has pushed freight rates for dry ...
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- Tata Chemicals Ltd - India
- Coalindo Energy - Indonesia
- Siam City Cement PLC, Thailand
- Siam City Cement - Thailand
- Madhucon Powers Ltd - India
- Indika Energy - Indonesia
- Meenaskhi Energy Private Limited - India
- Karbindo Abesyapradhi - Indoneisa
- Sree Jayajothi Cements Limited - India
- Orica Australia Pty. Ltd.
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Australian Commodity Traders Exchange
- Kobexindo Tractors - Indoneisa
- PetroVietnam Power Coal Import and Supply Company
- CNBM International Corporation - China
- OPG Power Generation Pvt Ltd - India
- Directorate General of MIneral and Coal - Indonesia
- Edison Trading Spa - Italy
- The State Trading Corporation of India Ltd
- PNOC Exploration Corporation - Philippines
- Chamber of Mines of South Africa
- Oldendorff Carriers - Singapore
- Altura Mining Limited, Indonesia
- Mercator Lines Limited - India
- Star Paper Mills Limited - India
- Parliament of New Zealand
- Thiess Contractors Indonesia
- Jaiprakash Power Ventures ltd
- Singapore Mercantile Exchange
- Vedanta Resources Plc - India
- South Luzon Thermal Energy Corporation
- Pendopo Energi Batubara - Indonesia
- Global Coal Blending Company Limited - Australia
- McConnell Dowell - Australia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Eastern Coal Council - USA
- Global Green Power PLC Corporation, Philippines
- Sojitz Corporation - Japan
- Coal and Oil Company - UAE
- Gujarat Sidhee Cement - India
- GAC Shipping (India) Pvt Ltd
- Kideco Jaya Agung - Indonesia
- Therma Luzon, Inc, Philippines
- New Zealand Coal & Carbon
- Aboitiz Power Corporation - Philippines
- Electricity Generating Authority of Thailand
- Jorong Barutama Greston.PT - Indonesia
- Ministry of Mines - Canada
- Sarangani Energy Corporation, Philippines
- Gujarat Electricity Regulatory Commission - India
- Semirara Mining Corp, Philippines
- Indonesian Coal Mining Association
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Gujarat Mineral Development Corp Ltd - India
- Malabar Cements Ltd - India
- Dalmia Cement Bharat India
- GVK Power & Infra Limited - India
- Savvy Resources Ltd - HongKong
- Sakthi Sugars Limited - India
- Neyveli Lignite Corporation Ltd, - India
- Agrawal Coal Company - India
- Antam Resourcindo - Indonesia
- Jindal Steel & Power Ltd - India
- Wilmar Investment Holdings
- Samtan Co., Ltd - South Korea
- The Treasury - Australian Government
- Power Finance Corporation Ltd., India
- Directorate Of Revenue Intelligence - India
- SMG Consultants - Indonesia
- Romanian Commodities Exchange
- Indogreen Group - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Borneo Indobara - Indonesia
- Deloitte Consulting - India
- London Commodity Brokers - England
- Asmin Koalindo Tuhup - Indonesia
- Bulk Trading Sa - Switzerland
- Aditya Birla Group - India
- Tamil Nadu electricity Board
- Georgia Ports Authority, United States
- Parry Sugars Refinery, India
- CIMB Investment Bank - Malaysia
- Bhatia International Limited - India
- Bhoruka Overseas - Indonesia
- Trasteel International SA, Italy
- Bahari Cakrawala Sebuku - Indonesia
- Riau Bara Harum - Indonesia
- Commonwealth Bank - Australia
- Kohat Cement Company Ltd. - Pakistan
- Semirara Mining and Power Corporation, Philippines
- Timah Investasi Mineral - Indoneisa
- Indo Tambangraya Megah - Indonesia
- AsiaOL BioFuels Corp., Philippines
- VISA Power Limited - India
- Indian Oil Corporation Limited
- Renaissance Capital - South Africa
- Ministry of Finance - Indonesia
- Latin American Coal - Colombia
- Leighton Contractors Pty Ltd - Australia
- Pipit Mutiara Jaya. PT, Indonesia
- Kapuas Tunggal Persada - Indonesia
- Lanco Infratech Ltd - India
- Larsen & Toubro Limited - India
- Bukit Makmur.PT - Indonesia
- Karaikal Port Pvt Ltd - India
- Minerals Council of Australia
- Coastal Gujarat Power Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Bharathi Cement Corporation - India
- Formosa Plastics Group - Taiwan
- Central Java Power - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Wood Mackenzie - Singapore
- Mjunction Services Limited - India
- Central Electricity Authority - India
- ICICI Bank Limited - India
- Sical Logistics Limited - India
- Toyota Tsusho Corporation, Japan
- Bangladesh Power Developement Board
- Alfred C Toepfer International GmbH - Germany
- Bank of Tokyo Mitsubishi UFJ Ltd
- International Coal Ventures Pvt Ltd - India
- SMC Global Power, Philippines
- Manunggal Multi Energi - Indonesia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Miang Besar Coal Terminal - Indonesia
- Price Waterhouse Coopers - Russia
- Cigading International Bulk Terminal - Indonesia
- Kepco SPC Power Corporation, Philippines
- IEA Clean Coal Centre - UK
- Kartika Selabumi Mining - Indonesia
- GMR Energy Limited - India
- IHS Mccloskey Coal Group - USA
- Attock Cement Pakistan Limited
- Kaltim Prima Coal - Indonesia
- Kumho Petrochemical, South Korea
- Medco Energi Mining Internasional
- Mercuria Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Uttam Galva Steels Limited - India
- Intertek Mineral Services - Indonesia
- Rashtriya Ispat Nigam Limited - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Rio Tinto Coal - Australia
- Grasim Industreis Ltd - India
- Indian Energy Exchange, India
- Petron Corporation, Philippines
- Global Business Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Australian Coal Association
- Billiton Holdings Pty Ltd - Australia
- Eastern Energy - Thailand
- Marubeni Corporation - India
- Meralco Power Generation, Philippines
- Iligan Light & Power Inc, Philippines
- Heidelberg Cement - Germany
- Baramulti Group, Indonesia
- Orica Mining Services - Indonesia
- Goldman Sachs - Singapore
- Metalloyd Limited - United Kingdom
- TNB Fuel Sdn Bhd - Malaysia
- White Energy Company Limited
- ASAPP Information Group - India
- TeaM Sual Corporation - Philippines
- PTC India Limited - India
- Sindya Power Generating Company Private Ltd
- European Bulk Services B.V. - Netherlands
- Ministry of Transport, Egypt
- Ind-Barath Power Infra Limited - India
- MS Steel International - UAE
- Ambuja Cements Ltd - India
- Port Waratah Coal Services - Australia
- Planning Commission, India
- Videocon Industries ltd - India
- SN Aboitiz Power Inc, Philippines
- Bhushan Steel Limited - India
- Mintek Dendrill Indonesia
- Simpson Spence & Young - Indonesia
- The University of Queensland
- Maheswari Brothers Coal Limited - India
- Banpu Public Company Limited - Thailand
- Vijayanagar Sugar Pvt Ltd - India
- Straits Asia Resources Limited - Singapore
- PowerSource Philippines DevCo
- Salva Resources Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- Vizag Seaport Private Limited - India
- Cement Manufacturers Association - India
- Binh Thuan Hamico - Vietnam
- Barasentosa Lestari - Indonesia
- Africa Commodities Group - South Africa
- Essar Steel Hazira Ltd - India
- Carbofer General Trading SA - India
- Electricity Authority, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Energy Link Ltd, New Zealand
- Anglo American - United Kingdom
- Chettinad Cement Corporation Ltd - India
- Krishnapatnam Port Company Ltd. - India
- Merrill Lynch Commodities Europe
- Economic Council, Georgia
- Xindia Steels Limited - India
- San Jose City I Power Corp, Philippines
- Standard Chartered Bank - UAE
- Globalindo Alam Lestari - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Makarim & Taira - Indonesia
- Bayan Resources Tbk. - Indonesia
- India Bulls Power Limited - India
- Posco Energy - South Korea
- Independent Power Producers Association of India
- Interocean Group of Companies - India
- Bukit Baiduri Energy - Indonesia
- LBH Netherlands Bv - Netherlands
- GN Power Mariveles Coal Plant, Philippines
- Thai Mozambique Logistica
- Energy Development Corp, Philippines
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