coal-as fuel option
DESCRIPTION
Coal-As Fuel Option. R.L. Mattoo GM (Fuel Management), NTPC. Synopsis. Power sector scenario Fuel Options Coal as viable fuel Issues and way forward. Power Infrastructure In India. As on Dec .’05. PRESENT CAPACITY MIX FUELWISE. INDIAN POWER SECTOR. - PowerPoint PPT PresentationTRANSCRIPT
5.00%2.70%
9.90%
0.90%
55.60%
25.90%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
PRESENT CAPACITY MIX FUELWISE
9750071900
5450050700
78037 81492
115705
157107
Mar '01 Mar '03 Mar '07 Mar ''12
PeakRequirement(MW)
EnergyRequirement(MU)
INDIAN POWER SECTOR
Capacity to increase to 2,12,000 MW by the year 2012 to meet the peak demand of 1,57,107 MW
By the year 2012, India’s peak demand would be 157,107 MW with energy requirement of 97500 MU
11th Plan : Capacity Addition Plan
Tentative/- type wise
Type Total (MW)
Hydro 12,000
Thermal 46905
Indigenous Coal 28155
Imported Coal 10000
Lignite 1750
Gas/ LNG 7000
Nuclear 3160
Total 62065
Factors Affecting Choice of Fuels
• Fuel Options determinants:
– Availability– Affordability– Reliability– Environment friendliness
Major Options Available
• Coal– Domestic– Imported– Blended
• Lignite• Gas
– Domestic– LNG– Transnational piped gas
• Hydro • Nuclear
16.5 13.5 2.1
76 103.5 35.5
92.5 117 37.4
0%
10%20%
30%
40%50%
60%
70%
80%90%
100%
Proved Indicated Inferred
Total
Non Coking
Coking
COAL RESERVES IN INDIA (Billion Tes)
STATUS AS ON 1.1.05
At the present rate of extraction, coal and lignite resources in India are expected to last for about 140 years
91.69156.15 247.84
30.0322.21 52.24
0%
20%
40%
60%
80%
100%
CIL Others Total
Extractable Reserves
Total Reserves
EXTRACTABLE COAL RESERVES IN INDIA
FIG IN BILLION TONNES
LIGNITE
Reserves
Around 30,300 million tes
Location
About 88% of reserves located in state of Tamil Nadu
Balance (about 12%) located in Rajasthan, Gujarat, J&K & Kerala
Limitation – Suitable only for pit head generation
Coal Demand Scenario In India
473.18
629.63
828.16
1078.54
1267.01
0
200
400
600
800
1000
1200
1400
06-07 11-12 16-17 21-22 24-25
Coal Demand (Mill Tes) Coal Demand (Mill Tes)
365
537 554
756840
0
100
200
300
400
500
600
700
800
900
2006-0
7
2011-1
2
2016-1
7
2021-2
2
2024-2
5
Coal Supply Million Tes)
Likely Coal Supply Scenario
Supply only from CIL sources
332301
31
505484
21
690
603
87
0
100
200
300
400
500
600
700
800
Demand Availability Shortage
10th Plan
11th Plan
12 Th Plan
COAL SHORTAGE SCENARIO IN THE POWER SECTOR
Shortage to be addressed through import
Coal shortage envisaged due to:Coal shortage envisaged due to:
•Long term linkage accorded on normative PLF Long term linkage accorded on normative PLF of 68.5% and 80% for stations coming after of 68.5% and 80% for stations coming after 1996, whereas the national average is +70% 1996, whereas the national average is +70% PLF. (some of the stations like those of NTPC PLF. (some of the stations like those of NTPC operating at +90% PLF)operating at +90% PLF)
•Delay in development of linked minesDelay in development of linked mines
COAL AVAILABILITY vis-à-vis SHORTAGECOAL AVAILABILITY vis-à-vis SHORTAGE
RESULT - NEED TO AUGMENT COAL AVAILABILITY
INDIGENOUS FUEL RESOURCES: GAS
LOCATION BALANCE RECOVERABLE RESERVE (As of 1st April
2005)•ONSHORE 340 BCM•OFFSHORE 761 BCMGRAND TOTAL 1101 BCM
(MOP&NG Basic statistics)
GAS RESERVES ARE ADEQUATE ONLY FOR ABOUT 34 YEARS AT PRESENT LEVEL OF GAS CONSUMPTION.
Future Gas Demand projection(Source: Hydrocarbon Vision 2025)
100
150
200
250
300
350
400
Dem
an
d (
MM
SC
MD
)
Against the current demand of about 150 MMSCMD, supply is about 92 MMSCMD only. Gas/RLNG availability and prices of available Gas/RLNG/imported piped natural gas are two major constraints for gas based power generation
•Fixed cost of Generation for coal based & Gas Based Plants are comparable.•Thus,for Gas/R LNG to compete – it has to be on fuel cost component basis
Price Benchmark - Coal - the Competing Fuel contdcontd……
Fixed cost of Generation (Levelized)
0.875
0.89
Coal Proj. Gas Proj.
Figs in Rs/kwhFigs in Rs/kwh
Assumptions: Coal Proj Gas ProjCapital Cost 42 32(Rs Million /MW)Life (Years) 25 15
0
20
40
60
80
100
120
140
0 100 500 1000 1500Distance from mine (Kms)
Fuel
cost
(pai
se/ k
wh)
Washed
Raw
0.5
1.11.6
2.1
0.0
2.6
3.6
3.1
Gas ($/MMBTU)
Variable (Fuel) cost of Generation
OTHER INDIGENOUS FUEL RESOURCES:LIMITATIONS
Other resources like crude oil, coal bed methane, renewable energy sources etc. are meagre and not capable of catering to our energy requirements in the long run.
Gas and crude oil prices are volatile in the international market and coal import is a much cheaper option than import of oil and gas especially at coastal locations.
Conclusion - Coal is likely to remain our mainstay fuel for energy generation till 2031-32. However, current shortage is a cause of concern.
Coal Shortage – The Way Forward• Stepping up domestic coal production by allotting blocks
to central and state public sector units and for captive mines to notified end users
• Coal Import – needs creation of necessary infrastructure.
Will also put pressure on domestic coal industry to be efficient. NTPC has imported about 3 million tes of coal in 2005-06.
• Amendment in Coal Mines Act to facilitate (a) private participation in coal mining for purposes other than those specified and (b) offering of future coal blocks to potential entrepreneurs.
• Technology for economic exploitation of coal lying at greater depths
Issues of concern with the coal sector
• Pricing
– 70% of the domestic coal is dedicated to power generation.
– Fuel cost constitutes about 65% of the total cost of generation
– Since the dismantling of APM, coal prices have been taken for arbitrary escalation with no transparency
– The opening of the sector to private players will bring in competition and prices will be determined by market dynamics
– Till such time, a regulatory mechanism needs to be put in place to put a check on arbitrary price hike.
Issues of concern with the coal sector: Contd
• Infrastructural Limitations- Burdened transportation network - calls for following measures:
• Transportation capacity to be increased.• Rationalization of linkages to cut down on
transportation distance and better utilization of existing infrastructure
• Cut down on criss-cross rail movement • Coastal stations to be run on imported coal
Issues of concern with the coal sector: Contd
• Environmental Issues :
– More emphasis on use of washed coal
– Use of clean coal technology like IGCC
– Strict implementation of MOEF stipulations
– Proper restoration of degraded land due to open cast mining.
Conclusion & Way Forward
• Coal shall remain mainstay for power generation in India.
• Allocation of captive blocks to end users.
• Allowing private participation
• This will also create a competitive environment and which will enable market driven pricing structure.
• Till such time, regulator to be put in place to ensure fair pricing of coal, proper development of infrastructure & efficient utilisation of resources in the coal sector.
• Keeping in view the longer gestation period of coal mines, faster clearances of coal projects needs to be undertaken so as to be commensurate with the commissioning of power plants.
• Coal washing and use of clean coal technology to be promoted.
• Transportation network bottlenecks to be reduced by judicious rationalization of linkages.