We welcome article submissions from experts in the areas of coal, mining,
shipping, etc.
To Submit your article please click here.
|
|
|
Monday, 06 October 14
' COAL-BY-WIRE' FROM SUMATRA TO JAVA - THE JAKARTA POST
 Coal from the island of Sumatra accounts for most of Indonesia’s low-grade lignite, a low-quality coal that receives a poor price in international markets.
Given this low pricing combined with high transportation costs and the fact that most reserves are located in landlocked areas, it is not feasible to export Sumatra’s coal out of the island.
It is more efficient to use Sumatra’s coal for a mine-mouth power plant, an approach in which we develop a power plant very close to where mines are located, use the low-calorie coal from the mines to feed the plant, and transmit the electricity, rather than transporting a low-value commodity, out of the mines.
With mine-mouth, we no longer require either barges or expensive railway-heavy infrastructure to transport coal; rather we need to have long-distance high-voltage transmission lines to bring “coal-by-wire” from mines to consumer centers, either regions in Sumatra and/or Java-Bali.
Essentially, with “coal-by-wire” we are transporting a higher-value commodity by wire from mines to customers. Coal stays in the landlocked areas and feeds mine-mouth, coal-fired power plants.
“Coal-by-wire” would definitely boost the development of a domestic market for low-grade coal. Today, our market for coal is very thin as we are one of the world’s leading exporters of thermal coal of a high quality in the international market.
Our exports have increased very significantly within the past decade on account of demand from fast-growing Asian economies. More than 80 percent of our coal currently produced is exported.
Indeed, coal is currently the most important source of energy for our economy. For decades coal has accounted for more than half of our power-generation capacity. And this will continue for a half century to come before alternative and cleaner energy sources other than coal become affordably available.
Our economy is also growing, and of course will require more electricity power and therefore coal – challenges that have to be met. Electricity generation now consumes close to 75 million tons per year, and will almost triple in the next 10 to 15 years.
However, domestic use of coal today notoriously suffers from infrastructure bottlenecks. Congested barges and ports, as well as a shortage of railways limit the transportation of coal from coalmines in two coal-producing regions, Kalimantan and Sumatra, to demand centers in Java-Bali, where most of our power plants are located.
The majority of our coal reserves in the two regions are located in landlocked areas that require rail transportation infrastructure to reach ports for export.
Either truck haul or rail is needed to transport the coal to barge ports and terminals.
Truck operating costs are about twice that of rail, but existing rail transportation infrastructure is severely insufficient.
Indonesia’s attempts to improve coal-transport infrastructure for the domestic market have not been very successful. Dedicated coal ports in Kalimantan have been planned for many years, but implementation has again faced bottleneck issues.
Specialized railways for coal in Sumatra have also been initiated, but this concept is still under development and has not yet received a higher-level mandate or legal authorization.
Delays in expanding the capacity of barge and transportation infrastructure cause inefficiencies and high transportation costs in domestic coal utilization. These high costs and infrastructure bottlenecks have held back the development of the domestic market for coal.
Our high-voltage transmission lines are also astonishingly limited. The state-owned electricity company (PLN) operates approximately 40,000 kilometers of transmission lines, with less than 15 percent of this total serving the island of Sumatra.
If we can build more mine-mouth, coal-fired power generation plants we will need to expand our transmission network across the island, interconnected to other transmission systems in Java-Bali.
A new set of lines of a high-voltage of 500 kilovolts and medium-voltage of 275 kV needs to be developed as a backbone network across the island, i.e. providing long-distance, reliable and stable transmission.
The distribution system and transformer capacity also need to be expanded to service a larger coverage of costumers and demand centers.
We are required also to develop an interconnected transmission system, as existing electricity transmission is not compatible across regions due to different systems and manufacturer standards adopted in the past.
The current initiative of developing inter-island interconnection lines between Java and Sumatra with 500kV High Voltage Direct Current (HVDC) lines needs to be completed in harmony with the mine-mouth development.
These long-distance transmission and distribution lines, as well as interconnected systems are required to exist before a system of mine-mouth power plants is commissioned to ensure that electricity produced can be transmitted in a timely manner and with minimum cost.
Both the central and local governments must work hand-in-hand to endorse incentives to encourage the private sector — independent power producers (IPPs) — to develop mine-mouth power plants.
Incentives need to be designed to enhance the financial viability of IPPs’ mine-mouth power plant projects.
PLN as an off-taker of IPP plays a fundamental role as the “coal-by-wire” agent, and has to be ready to absorb all of the risks associated with the development and operation of the system, including the difficulties in land acquisition and intra-regional compatibility of transmission systems.
Sumatra with its huge resources of low-grade coal can secure its own electricity supply and, eventually, can be the source of low-cost electricity with its energy radiating not only to Java, but also to every corner of the country.
Source: The Jakarta Post
The writer is deputy for energy and mineral resources at the office of Coordinating Economic Minister.
If you believe an article violates your rights or the rights of others, please contact us.
|
|
Sunday, 09 November 14
CAPE INDEX UP 3.06%; PANAMAX INDEX FELL 4.05%
COALspot.com: The BDI was almost at same levels compared to last week closing or just increased 0.77 pct from last week. The BDI was closed at 1437 ...
Friday, 07 November 14
U.S. PRODUCED 85.60 MILLION SHORT TONS OF COAL IN OCTOBER, UP 2.88% M-O-M
COALspot.com – United States the world's one of the largest coal producers, produced approximately 19.0 million short tons (mmst) of coal ...
Thursday, 06 November 14
THE ATLANTIC HAS REMAINED STRONG WITH A HEALTHY SUPPLY OF NEW CARGOES
Handy
This week has continued its slow trend in both hemispheres and even though rates are a bit up w-o-w it is not a clear sign for any improvem ...
Wednesday, 05 November 14
CAPESIZE SEGMENT ENJOYED FIRMING RATES ACROSS BOTH BASINS
Following a fantastic week in terms of rate performance for Capes, the Dry Bulk market managed to note another positive weekly closing, which stron ...
Wednesday, 05 November 14
SHIPPING MARKET INSIGHT - PANOS TSILINGIRIS
COALspot.com: The steep appreciation in dry bulker values between late 2012 and March 2014 resulted in unrealistically expensive ship values compar ...
|
|
|
Showing 3391 to 3395 news of total 6871 |
|
 |
|
|
|
|
| |
|
 |
|
|
| |
|
- Neyveli Lignite Corporation Ltd, - India
- Bangladesh Power Developement Board
- Oldendorff Carriers - Singapore
- PNOC Exploration Corporation - Philippines
- European Bulk Services B.V. - Netherlands
- Planning Commission, India
- Toyota Tsusho Corporation, Japan
- Kobexindo Tractors - Indoneisa
- Timah Investasi Mineral - Indoneisa
- Mercuria Energy - Indonesia
- Intertek Mineral Services - Indonesia
- Energy Link Ltd, New Zealand
- Africa Commodities Group - South Africa
- Commonwealth Bank - Australia
- OPG Power Generation Pvt Ltd - India
- Medco Energi Mining Internasional
- Kartika Selabumi Mining - Indonesia
- Eastern Coal Council - USA
- Grasim Industreis Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Baramulti Group, Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Deloitte Consulting - India
- Orica Mining Services - Indonesia
- PTC India Limited - India
- Ministry of Finance - Indonesia
- Videocon Industries ltd - India
- The Treasury - Australian Government
- Miang Besar Coal Terminal - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Karbindo Abesyapradhi - Indoneisa
- Interocean Group of Companies - India
- Kaltim Prima Coal - Indonesia
- SN Aboitiz Power Inc, Philippines
- Central Java Power - Indonesia
- Trasteel International SA, Italy
- San Jose City I Power Corp, Philippines
- South Luzon Thermal Energy Corporation
- Central Electricity Authority - India
- PowerSource Philippines DevCo
- Power Finance Corporation Ltd., India
- Petron Corporation, Philippines
- Therma Luzon, Inc, Philippines
- Mjunction Services Limited - India
- Global Business Power Corporation, Philippines
- Bukit Asam (Persero) Tbk - Indonesia
- Alfred C Toepfer International GmbH - Germany
- Gujarat Electricity Regulatory Commission - India
- Eastern Energy - Thailand
- Karaikal Port Pvt Ltd - India
- Bharathi Cement Corporation - India
- Gujarat Sidhee Cement - India
- Meralco Power Generation, Philippines
- Sinarmas Energy and Mining - Indonesia
- Jaiprakash Power Ventures ltd
- Bukit Baiduri Energy - Indonesia
- Thai Mozambique Logistica
- Cigading International Bulk Terminal - Indonesia
- Sree Jayajothi Cements Limited - India
- Pipit Mutiara Jaya. PT, Indonesia
- Aboitiz Power Corporation - Philippines
- Manunggal Multi Energi - Indonesia
- Binh Thuan Hamico - Vietnam
- LBH Netherlands Bv - Netherlands
- Cement Manufacturers Association - India
- GN Power Mariveles Coal Plant, Philippines
- The University of Queensland
- Indo Tambangraya Megah - Indonesia
- Simpson Spence & Young - Indonesia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Directorate General of MIneral and Coal - Indonesia
- Star Paper Mills Limited - India
- Standard Chartered Bank - UAE
- Larsen & Toubro Limited - India
- Coastal Gujarat Power Limited - India
- ICICI Bank Limited - India
- GMR Energy Limited - India
- Kapuas Tunggal Persada - Indonesia
- Sarangani Energy Corporation, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Rashtriya Ispat Nigam Limited - India
- The State Trading Corporation of India Ltd
- Bahari Cakrawala Sebuku - Indonesia
- Wilmar Investment Holdings
- Vizag Seaport Private Limited - India
- Jindal Steel & Power Ltd - India
- Vedanta Resources Plc - India
- Semirara Mining Corp, Philippines
- Australian Commodity Traders Exchange
- Borneo Indobara - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Orica Australia Pty. Ltd.
- Riau Bara Harum - Indonesia
- Economic Council, Georgia
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Lanco Infratech Ltd - India
- Antam Resourcindo - Indonesia
- Goldman Sachs - Singapore
- Independent Power Producers Association of India
- Rio Tinto Coal - Australia
- PetroVietnam Power Coal Import and Supply Company
- Posco Energy - South Korea
- Semirara Mining and Power Corporation, Philippines
- Indonesian Coal Mining Association
- Leighton Contractors Pty Ltd - Australia
- Asmin Koalindo Tuhup - Indonesia
- Carbofer General Trading SA - India
- Essar Steel Hazira Ltd - India
- Dalmia Cement Bharat India
- AsiaOL BioFuels Corp., Philippines
- IHS Mccloskey Coal Group - USA
- CNBM International Corporation - China
- Meenaskhi Energy Private Limited - India
- Electricity Authority, New Zealand
- Sakthi Sugars Limited - India
- Global Coal Blending Company Limited - Australia
- Malabar Cements Ltd - India
- Chettinad Cement Corporation Ltd - India
- SMG Consultants - Indonesia
- Indogreen Group - Indonesia
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- VISA Power Limited - India
- Anglo American - United Kingdom
- Indika Energy - Indonesia
- ASAPP Information Group - India
- Attock Cement Pakistan Limited
- Latin American Coal - Colombia
- Siam City Cement PLC, Thailand
- Kepco SPC Power Corporation, Philippines
- Banpu Public Company Limited - Thailand
- London Commodity Brokers - England
- Iligan Light & Power Inc, Philippines
- Chamber of Mines of South Africa
- Thiess Contractors Indonesia
- Madhucon Powers Ltd - India
- Maharashtra Electricity Regulatory Commission - India
- Straits Asia Resources Limited - Singapore
- Marubeni Corporation - India
- Merrill Lynch Commodities Europe
- Bulk Trading Sa - Switzerland
- Kumho Petrochemical, South Korea
- Altura Mining Limited, Indonesia
- Indian Energy Exchange, India
- Parliament of New Zealand
- Sindya Power Generating Company Private Ltd
- Sical Logistics Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Holcim Trading Pte Ltd - Singapore
- Mintek Dendrill Indonesia
- Xindia Steels Limited - India
- Siam City Cement - Thailand
- TeaM Sual Corporation - Philippines
- Ceylon Electricity Board - Sri Lanka
- Ambuja Cements Ltd - India
- Heidelberg Cement - Germany
- Pendopo Energi Batubara - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Ministry of Mines - Canada
- Coal and Oil Company - UAE
- CIMB Investment Bank - Malaysia
- White Energy Company Limited
- Ministry of Transport, Egypt
- Bayan Resources Tbk. - Indonesia
- Metalloyd Limited - United Kingdom
- Jorong Barutama Greston.PT - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- International Coal Ventures Pvt Ltd - India
- Parry Sugars Refinery, India
- Georgia Ports Authority, United States
- Port Waratah Coal Services - Australia
- Formosa Plastics Group - Taiwan
- Aditya Birla Group - India
- Directorate Of Revenue Intelligence - India
- Sojitz Corporation - Japan
- IEA Clean Coal Centre - UK
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- New Zealand Coal & Carbon
- Energy Development Corp, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Salva Resources Pvt Ltd - India
- India Bulls Power Limited - India
- Romanian Commodities Exchange
- Minerals Council of Australia
- Makarim & Taira - Indonesia
- Coalindo Energy - Indonesia
- Global Green Power PLC Corporation, Philippines
- Kalimantan Lumbung Energi - Indonesia
- Mercator Lines Limited - India
- Kohat Cement Company Ltd. - Pakistan
- McConnell Dowell - Australia
- Ind-Barath Power Infra Limited - India
- Kideco Jaya Agung - Indonesia
- Bhushan Steel Limited - India
- Globalindo Alam Lestari - Indonesia
- Bukit Makmur.PT - Indonesia
- Maheswari Brothers Coal Limited - India
- MS Steel International - UAE
- Tata Chemicals Ltd - India
- GVK Power & Infra Limited - India
- Price Waterhouse Coopers - Russia
- Barasentosa Lestari - Indonesia
- Wood Mackenzie - Singapore
- Edison Trading Spa - Italy
- Tamil Nadu electricity Board
- Singapore Mercantile Exchange
- Savvy Resources Ltd - HongKong
- Australian Coal Association
- Bhatia International Limited - India
- Bhoruka Overseas - Indonesia
- Renaissance Capital - South Africa
- Electricity Generating Authority of Thailand
- SMC Global Power, Philippines
- Indian Oil Corporation Limited
- GAC Shipping (India) Pvt Ltd
- Uttam Galva Steels Limited - India
- Samtan Co., Ltd - South Korea
- Agrawal Coal Company - India
|
| |
| |
|
