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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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Wednesday, 03 September 14
CFR S.CHINA COAL SWAP FOR JAN 2015 DELIVERY CLOSED AT $ 68.30 PMT; DOWN 2.43% W-O-W
COALspot.com: API 8 CFR South China Coal swap for delivery in October 2014 decreased US$ 0.95 (-1.39%) day on day and US$ 1.40 (-2.03%) week on wee ...
Tuesday, 02 September 14
BERAU COAL HAS AWARDED A CONTRACT EXTENSION TO BUMA FOR 647 MLN BCM OVERBURDEN REMOVAL
COALspot.com: PT Delta Dunia Makmur Tbk (“DOID”) has announced that its primary operating subsidiary, PT Bukit Makmur Mandiri Utama (&l ...
Monday, 01 September 14
GLOBALCOAL WELCOMES TWO NEW MARKET MEMBERS
COALspot.com: globalCOAL® announced today that two Market Members have joined its trading community. Both new Market Members are from the India ...
Sunday, 31 August 14
COAL FREIGHT RATES INTO INDIA FROM INDONESIA FIRM
COALspot.com: The freight market continued to firm this week. BDI up 5.42 percent week ended 29 August and closed at 1147 points while the Ca ...
Saturday, 30 August 14
INDIAN GOVERNMENT SHOULD TAKE NOTICE: THERMAL COAL IMPORT PRICES EXTREMELY LOW - COMMODORE RESEARCH
COALspot.com: Both Indonesian and Australian thermal coal prices are at the lowest levels seen this decade, with Indonesia's monthly benchmark ...
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- Kohat Cement Company Ltd. - Pakistan
- Ministry of Transport, Egypt
- Bhatia International Limited - India
- Singapore Mercantile Exchange
- Uttam Galva Steels Limited - India
- Price Waterhouse Coopers - Russia
- Salva Resources Pvt Ltd - India
- McConnell Dowell - Australia
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Vizag Seaport Private Limited - India
- Deloitte Consulting - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- PetroVietnam Power Coal Import and Supply Company
- Toyota Tsusho Corporation, Japan
- New Zealand Coal & Carbon
- International Coal Ventures Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- The University of Queensland
- Tamil Nadu electricity Board
- Edison Trading Spa - Italy
- Cement Manufacturers Association - India
- Global Coal Blending Company Limited - Australia
- GVK Power & Infra Limited - India
- Semirara Mining Corp, Philippines
- Madhucon Powers Ltd - India
- Pipit Mutiara Jaya. PT, Indonesia
- Chamber of Mines of South Africa
- Sindya Power Generating Company Private Ltd
- Star Paper Mills Limited - India
- Jaiprakash Power Ventures ltd
- Merrill Lynch Commodities Europe
- Maharashtra Electricity Regulatory Commission - India
- Marubeni Corporation - India
- Therma Luzon, Inc, Philippines
- AsiaOL BioFuels Corp., Philippines
- Pendopo Energi Batubara - Indonesia
- European Bulk Services B.V. - Netherlands
- Coal and Oil Company - UAE
- Ind-Barath Power Infra Limited - India
- Petron Corporation, Philippines
- Lanco Infratech Ltd - India
- Chettinad Cement Corporation Ltd - India
- Parry Sugars Refinery, India
- Global Green Power PLC Corporation, Philippines
- Baramulti Group, Indonesia
- Mjunction Services Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Alfred C Toepfer International GmbH - Germany
- SN Aboitiz Power Inc, Philippines
- CIMB Investment Bank - Malaysia
- Directorate General of MIneral and Coal - Indonesia
- Globalindo Alam Lestari - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Savvy Resources Ltd - HongKong
- Coalindo Energy - Indonesia
- Asmin Koalindo Tuhup - Indonesia
- Australian Commodity Traders Exchange
- Australian Coal Association
- Minerals Council of Australia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Orica Australia Pty. Ltd.
- Sree Jayajothi Cements Limited - India
- Renaissance Capital - South Africa
- Leighton Contractors Pty Ltd - Australia
- Kaltim Prima Coal - Indonesia
- Intertek Mineral Services - Indonesia
- Videocon Industries ltd - India
- SMC Global Power, Philippines
- Mercator Lines Limited - India
- Metalloyd Limited - United Kingdom
- White Energy Company Limited
- Eastern Energy - Thailand
- Power Finance Corporation Ltd., India
- Neyveli Lignite Corporation Ltd, - India
- Samtan Co., Ltd - South Korea
- Kumho Petrochemical, South Korea
- Indian Oil Corporation Limited
- Miang Besar Coal Terminal - Indonesia
- Indika Energy - Indonesia
- Carbofer General Trading SA - India
- Heidelberg Cement - Germany
- Bharathi Cement Corporation - India
- PTC India Limited - India
- GMR Energy Limited - India
- Kepco SPC Power Corporation, Philippines
- Wilmar Investment Holdings
- Medco Energi Mining Internasional
- Bukit Makmur.PT - Indonesia
- Bhushan Steel Limited - India
- Kobexindo Tractors - Indoneisa
- Kideco Jaya Agung - Indonesia
- Orica Mining Services - Indonesia
- Sical Logistics Limited - India
- Indo Tambangraya Megah - Indonesia
- Mercuria Energy - Indonesia
- Aboitiz Power Corporation - Philippines
- Central Electricity Authority - India
- Iligan Light & Power Inc, Philippines
- South Luzon Thermal Energy Corporation
- SMG Consultants - Indonesia
- Mintek Dendrill Indonesia
- Indian Energy Exchange, India
- ASAPP Information Group - India
- Manunggal Multi Energi - Indonesia
- Sakthi Sugars Limited - India
- Aditya Birla Group - India
- Economic Council, Georgia
- Binh Thuan Hamico - Vietnam
- Agrawal Coal Company - India
- Bayan Resources Tbk. - Indonesia
- Romanian Commodities Exchange
- TeaM Sual Corporation - Philippines
- Anglo American - United Kingdom
- Malabar Cements Ltd - India
- Siam City Cement PLC, Thailand
- Eastern Coal Council - USA
- Bahari Cakrawala Sebuku - Indonesia
- Cigading International Bulk Terminal - Indonesia
- Port Waratah Coal Services - Australia
- Rio Tinto Coal - Australia
- Africa Commodities Group - South Africa
- Energy Development Corp, Philippines
- Altura Mining Limited, Indonesia
- PNOC Exploration Corporation - Philippines
- VISA Power Limited - India
- Commonwealth Bank - Australia
- Standard Chartered Bank - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- Attock Cement Pakistan Limited
- Larsen & Toubro Limited - India
- PowerSource Philippines DevCo
- Formosa Plastics Group - Taiwan
- LBH Netherlands Bv - Netherlands
- Borneo Indobara - Indonesia
- London Commodity Brokers - England
- Essar Steel Hazira Ltd - India
- ICICI Bank Limited - India
- Gujarat Sidhee Cement - India
- Vedanta Resources Plc - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Oldendorff Carriers - Singapore
- Kartika Selabumi Mining - Indonesia
- TNB Fuel Sdn Bhd - Malaysia
- San Jose City I Power Corp, Philippines
- Goldman Sachs - Singapore
- Thai Mozambique Logistica
- The State Trading Corporation of India Ltd
- Gujarat Mineral Development Corp Ltd - India
- Electricity Authority, New Zealand
- Timah Investasi Mineral - Indoneisa
- Ambuja Cements Ltd - India
- Georgia Ports Authority, United States
- Simpson Spence & Young - Indonesia
- Antam Resourcindo - Indonesia
- Straits Asia Resources Limited - Singapore
- Ministry of Mines - Canada
- Xindia Steels Limited - India
- Trasteel International SA, Italy
- Maheswari Brothers Coal Limited - India
- Makarim & Taira - Indonesia
- Karaikal Port Pvt Ltd - India
- Tata Chemicals Ltd - India
- Siam City Cement - Thailand
- Sinarmas Energy and Mining - Indonesia
- Meenaskhi Energy Private Limited - India
- Interocean Group of Companies - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Directorate Of Revenue Intelligence - India
- Bulk Trading Sa - Switzerland
- Dalmia Cement Bharat India
- GAC Shipping (India) Pvt Ltd
- Independent Power Producers Association of India
- Holcim Trading Pte Ltd - Singapore
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Indogreen Group - Indonesia
- Bangladesh Power Developement Board
- Barasentosa Lestari - Indonesia
- Semirara Mining and Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Coastal Gujarat Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Global Business Power Corporation, Philippines
- Latin American Coal - Colombia
- Planning Commission, India
- IEA Clean Coal Centre - UK
- Meralco Power Generation, Philippines
- The Treasury - Australian Government
- Bukit Asam (Persero) Tbk - Indonesia
- Gujarat Electricity Regulatory Commission - India
- Indonesian Coal Mining Association
- Bhoruka Overseas - Indonesia
- Wood Mackenzie - Singapore
- Bukit Baiduri Energy - Indonesia
- Parliament of New Zealand
- Posco Energy - South Korea
- Banpu Public Company Limited - Thailand
- Riau Bara Harum - Indonesia
- Central Java Power - Indonesia
- Electricity Generating Authority of Thailand
- Jindal Steel & Power Ltd - India
- Ceylon Electricity Board - Sri Lanka
- MS Steel International - UAE
- IHS Mccloskey Coal Group - USA
- Kapuas Tunggal Persada - Indonesia
- Sarangani Energy Corporation, Philippines
- CNBM International Corporation - China
- Grasim Industreis Ltd - India
- Thiess Contractors Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Energy Link Ltd, New Zealand
- Ministry of Finance - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Petrochimia International Co. Ltd.- Taiwan
- Sojitz Corporation - Japan
- Karbindo Abesyapradhi - Indoneisa
- India Bulls Power Limited - India
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