290 likes | 427 Views
SOLAR. INFRASTRUCTURE. POWER. RESOURCES. EPC. Contents. – Significance of Coal as Primary Energy Source – Demand Supply Scenario of Coal – Policy Snapshots – Way Forward. Coal the main stay of energy. As on March 2010.
E N D
SOLAR INFRASTRUCTURE POWER RESOURCES EPC
Contents – Significance of Coal as Primary Energy Source – Demand Supply Scenario of Coal – Policy Snapshots – Way Forward
Coal the main stay of energy • As on March 2010
Proved Reserve of Oil-Gas-Coal Position of INDIA as against WORLD Source : BP Energy statistics 2010 * Conservative estimate
Coal-remains as the main stay of energy in India • India having just 0.4% of world’s known oil and 0.6% of natural gas resources but coal reserves is about 7%. • At the present production rate oil and gas is to last for about 22 and 28 years respectively . • India currently mines about 540 mn tones of coal per year and looks forward an ambitious target of reaching 1 bn tone mark by 2020 if the demand has to be met. • The Government of India estimates India has total coal reserves of close to 100 bn tonnes, with total resources exceeding 250 bn
Coal-remains as the main stay of energy in India (Cont..) • However, conservative estimates for - recoverable coal reserves for India are about 60 bn tones • At the present rate of production – proven coal reserve to sustain over 100 years in India • India is the 3rd largest coal producing country after China and USA. • Coal will continue to play a pivotal role in Indian Energy Scenario for the foreseeable future.
CLASSIFICATION OF COAL RESERVES Note: All Quantities in Million Tonnes Above details are as on 1st April 2010
FUEL WISE BREAKUP OF POWER GENERATION CAPACITY (as on 30-Nov-2011)
Contents – Significance of Coal & Primary Energy availability – Demand Supply Scenario of Coal – Policy Snapshots – Way Forward
TARGET CAPACITY ADDITONS: 11TH – 13TH PLANS All values in MW Additional Coal Requirement ~ 335 MT
DOMESTIC COAL SCENARIO No increase in production over previous year! Expansion fear for Project developers.
INDIAN COAL: Production Vs Dispatch Almost no increase in production in coalfields nearest to UP
FSAs & LoAs status30th Apr 2011 • FSA • Total No. of FSAs – 1599 for a Total Qty of 391 mT • 17mT more FSAs to be signed for Power Utilities. Total would become 418mT. • LOA • Total No. LoAs issued for 725 consumers for a total Qty of 551 mTpa • Of this, 598 Units having coal requirement of 484 mT submitted CG. • 569 Units submitted completion of milestones for a quantity of 440 mTpa
Demand-Supply Gap • There is steadily growing gap between overall coal consumption as against the domestic production. • While the production grew at 6.7% the consumption grew over 7.4% annually. • It is evident that availability from domestic production is out paced by growing coal demand. • Bridging such demand–supply gap will remain a major challenge for the coal sector. • Import of coal, focus on indigenous coal production through technological innovation will be the focus areas for the future
Demand-Supply Gap * Revised production target
CHALLENGING ISSUES • Negative Coal Balance position to further widen with future capacity addition • Further recommendations by SLC (LT) withheld due to widening Gap in Demand Supply - 1500 applications seeking linkage of about 3000 Million MT of Coal pending at MoC. • Supply for New consumers under FSA limited to 50% of indigenous coal - No level playing field for new consumers. • Future consumers have no other avenue other than E-auction to procure coal which is limited to around 10% of production.
Variable Cost with Different Fuel Mix # based on current prices * As per Model FSA, trigger level is at 50%
COAL IMPORTS INTO INDIA : HISTORY Total of Indo, SA& Aus
COAL IMPORTS INTO INDIA (Port-wise) Though port capacities has increased phenomenally but Railway capacity has not increased to the required level To Power sector: 29mT
Contents – Significance of Coal & Primary Energy availability – Demand Supply Scenario of Coal sector – Policy Snapshots – Way Forward
Policy Snapshots New Coal Distribution Policy • As per New Coal Distribution Policy (NCDP), 100% of Normative Coal requirement of Power Utilities to be met by CIL (subsequently % was reduced to 90% for landlocked plants in SLC meeting dated 11th Nov ’08) even through Imports • Though NCDP doesn’t distinguish between old Vs new consumers; However, LoAs for new consumers being issued by CIL with the concept of Incremental Coal Availability
Policy Snapshots Linkage Coal Distribution • As per prevailing practice, CIL indicates Total Coal Availability for Power Sector for a given year to CEA • Out of this total indicated coal quantity 306 MT of coal is kept aside for power projects commissioned as on 31st March ’09 • Coal Quantity for new Power Projects commissioned after Mar ‘09 - Only additional coal beyond 306 MT being distributed amongst new units by CEA • For FY 11-12, CIL has given 347 MT coal for Power Sector; after keeping aside 306 MT, the effective coal quantity available to Projects Commissioned after Mar ‘09 ~ 41 MT
Policy Snapshots Linkage Coal Distribution – Contd. (Incremental) Linkage Coal Distribution by CEA for FY 11-12: With this meager coal quantity available for distribution, TPPs have been allocated coal as low as 15% of the Linkage Quantity
Way forward • Coal will continue to remain as the dominant energy source for India for the foreseeable future. • Domestic coal production requires to be augmented by • technological up gradation • speedy project clearance • Effective R&R policy • Coal Block allottees to gear up for taking an important role in meeting the demand • If the entire coal committed by CIL to Power Sector is to be distributed in equitable manner amongst all power sector consumers – coal realization would be same (70-80% of ACQ) for all Power Utilities (old and new) and will create level playing field for all players in the sector • Growth in Logistics remains a constraint for coal transportation – Railways need to gear up for improving rolling stock availability. • Port capacity requires augmentation with matching evacuation system • Demand side management for efficient coal use is also to be focused.