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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.
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Sunday, 02 November 14
CAPE INDEX WAS UP 46.65% WEEK ON WEEK
COALspot.com: The BDI and Cape index continued the strong upward trend this week. The BDI was up 19.80 pct and Cape index was up by 46.65 per ...
Friday, 31 October 14
BUKIT ASAM'S NET PROFIT ROSE 27.42% FOR THE PERIOD JANUARY - SEPTEMBER 2014
COALspot.com: Publicly listed coal miner Bukit Asam reported solid profits in the first nine months of 2014 year.
Coal miner Bukit Asam manage ...
Friday, 31 October 14
U.S PRODUCED AROUND 19.3 MMST OF COAL IN A WEEK
COALspot.com – United States the world's one of largest coal producers, produced approximately 19.3 million short tons (mmst) of coal in ...
Thursday, 30 October 14
COAL & GRAINS SUPPORT PANAMAX AND IRON ORE SUPPORTS CAPES
Handy
The Atlantic market has been flat this week. Rates are up about US$ 200 from last week on the TA´s, but the volumes are about the sam ...
Thursday, 30 October 14
DOES A LOU ARBITRATION AGREEMENT FOR THE UNDERLYING CARGO CLAIM COMPLETELY REPLACE THE BILL OF LADING ARBITRATION CLAUSE? - INCE &CO
KNOWLEDGE TO ELEVATE
In the context of cargo claims brought under four bills of lading, the Commercial Court has recently considered whether a ...
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- SN Aboitiz Power Inc, Philippines
- Bangladesh Power Developement Board
- LBH Netherlands Bv - Netherlands
- Eastern Energy - Thailand
- PNOC Exploration Corporation - Philippines
- Bhushan Steel Limited - India
- Ceylon Electricity Board - Sri Lanka
- Miang Besar Coal Terminal - Indonesia
- Energy Link Ltd, New Zealand
- Savvy Resources Ltd - HongKong
- Iligan Light & Power Inc, Philippines
- Alfred C Toepfer International GmbH - Germany
- Borneo Indobara - Indonesia
- The State Trading Corporation of India Ltd
- Banpu Public Company Limited - Thailand
- Bank of Tokyo Mitsubishi UFJ Ltd
- Kapuas Tunggal Persada - Indonesia
- Mintek Dendrill Indonesia
- Attock Cement Pakistan Limited
- Mercator Lines Limited - India
- European Bulk Services B.V. - Netherlands
- CIMB Investment Bank - Malaysia
- Bukit Asam (Persero) Tbk - Indonesia
- Economic Council, Georgia
- Samtan Co., Ltd - South Korea
- Cigading International Bulk Terminal - Indonesia
- Latin American Coal - Colombia
- Siam City Cement - Thailand
- The Treasury - Australian Government
- Leighton Contractors Pty Ltd - Australia
- International Coal Ventures Pvt Ltd - India
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- Sakthi Sugars Limited - India
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- Orica Mining Services - Indonesia
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- Karbindo Abesyapradhi - Indoneisa
- Orica Australia Pty. Ltd.
- TNB Fuel Sdn Bhd - Malaysia
- Global Business Power Corporation, Philippines
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- Chettinad Cement Corporation Ltd - India
- Petrochimia International Co. Ltd.- Taiwan
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Videocon Industries ltd - India
- Directorate Of Revenue Intelligence - India
- Electricity Generating Authority of Thailand
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- Global Green Power PLC Corporation, Philippines
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- Australian Coal Association
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- Rashtriya Ispat Nigam Limited - India
- IEA Clean Coal Centre - UK
- Marubeni Corporation - India
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- Sojitz Corporation - Japan
- Krishnapatnam Port Company Ltd. - India
- Thiess Contractors Indonesia
- Grasim Industreis Ltd - India
- Manunggal Multi Energi - Indonesia
- Sical Logistics Limited - India
- South Luzon Thermal Energy Corporation
- Rio Tinto Coal - Australia
- TeaM Sual Corporation - Philippines
- Dalmia Cement Bharat India
- Directorate General of MIneral and Coal - Indonesia
- Singapore Mercantile Exchange
- Thai Mozambique Logistica
- Straits Asia Resources Limited - Singapore
- Petron Corporation, Philippines
- Tata Chemicals Ltd - India
- Central Java Power - Indonesia
- Offshore Bulk Terminal Pte Ltd, Singapore
- Intertek Mineral Services - Indonesia
- Indian Oil Corporation Limited
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Commonwealth Bank - Australia
- Timah Investasi Mineral - Indoneisa
- SMG Consultants - Indonesia
- Uttam Galva Steels Limited - India
- Xindia Steels Limited - India
- Star Paper Mills Limited - India
- Romanian Commodities Exchange
- Mjunction Services Limited - India
- Binh Thuan Hamico - Vietnam
- Independent Power Producers Association of India
- Sarangani Energy Corporation, Philippines
- Riau Bara Harum - Indonesia
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- Aditya Birla Group - India
- Africa Commodities Group - South Africa
- Georgia Ports Authority, United States
- PTC India Limited - India
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- Electricity Authority, New Zealand
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- Posco Energy - South Korea
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- Kepco SPC Power Corporation, Philippines
- Edison Trading Spa - Italy
- Planning Commission, India
- Malabar Cements Ltd - India
- Meralco Power Generation, Philippines
- The University of Queensland
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Minerals Council of Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Lanco Infratech Ltd - India
- Parry Sugars Refinery, India
- Jorong Barutama Greston.PT - Indonesia
- Kideco Jaya Agung - Indonesia
- CNBM International Corporation - China
- Port Waratah Coal Services - Australia
- IHS Mccloskey Coal Group - USA
- Toyota Tsusho Corporation, Japan
- Chamber of Mines of South Africa
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Central Electricity Authority - India
- Power Finance Corporation Ltd., India
- Indika Energy - Indonesia
- Indonesian Coal Mining Association
- Metalloyd Limited - United Kingdom
- Merrill Lynch Commodities Europe
- SMC Global Power, Philippines
- ICICI Bank Limited - India
- Price Waterhouse Coopers - Russia
- Bukit Baiduri Energy - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Semirara Mining Corp, Philippines
- Barasentosa Lestari - Indonesia
- Trasteel International SA, Italy
- Bukit Makmur.PT - Indonesia
- Goldman Sachs - Singapore
- GN Power Mariveles Coal Plant, Philippines
- Maharashtra Electricity Regulatory Commission - India
- Sinarmas Energy and Mining - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Indian Energy Exchange, India
- Madhucon Powers Ltd - India
- Karaikal Port Pvt Ltd - India
- Gujarat Mineral Development Corp Ltd - India
- Baramulti Group, Indonesia
- Billiton Holdings Pty Ltd - Australia
- New Zealand Coal & Carbon
- Ministry of Mines - Canada
- Indo Tambangraya Megah - Indonesia
- Vedanta Resources Plc - India
- London Commodity Brokers - England
- Anglo American - United Kingdom
- Global Coal Blending Company Limited - Australia
- Heidelberg Cement - Germany
- Formosa Plastics Group - Taiwan
- Bulk Trading Sa - Switzerland
- Neyveli Lignite Corporation Ltd, - India
- PetroVietnam Power Coal Import and Supply Company
- Semirara Mining and Power Corporation, Philippines
- GMR Energy Limited - India
- ASAPP Information Group - India
- Interocean Group of Companies - India
- MS Steel International - UAE
- Kobexindo Tractors - Indoneisa
- Carbofer General Trading SA - India
- PowerSource Philippines DevCo
- Australian Commodity Traders Exchange
- Sree Jayajothi Cements Limited - India
- Jindal Steel & Power Ltd - India
- Medco Energi Mining Internasional
- Meenaskhi Energy Private Limited - India
- Siam City Cement PLC, Thailand
- Kartika Selabumi Mining - Indonesia
- AsiaOL BioFuels Corp., Philippines
- Coastal Gujarat Power Limited - India
- Wilmar Investment Holdings
- Ministry of Finance - Indonesia
- Wood Mackenzie - Singapore
- Asmin Koalindo Tuhup - Indonesia
- Eastern Coal Council - USA
- White Energy Company Limited
- Kaltim Prima Coal - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Coalindo Energy - Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Agrawal Coal Company - India
- India Bulls Power Limited - India
- Therma Luzon, Inc, Philippines
- McConnell Dowell - Australia
- Parliament of New Zealand
- Bayan Resources Tbk. - Indonesia
- Deloitte Consulting - India
- Pendopo Energi Batubara - Indonesia
- OPG Power Generation Pvt Ltd - India
- GVK Power & Infra Limited - India
- Holcim Trading Pte Ltd - Singapore
- Cement Manufacturers Association - India
- Kumho Petrochemical, South Korea
- Ministry of Transport, Egypt
- Tamil Nadu electricity Board
- Bhatia International Limited - India
- Renaissance Capital - South Africa
- VISA Power Limited - India
- Makarim & Taira - Indonesia
- Aboitiz Power Corporation - Philippines
- Mercuria Energy - Indonesia
- Bhoruka Overseas - Indonesia
- GAC Shipping (India) Pvt Ltd
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