Indian+Thermal+Power+Scenario

7/30/2019 Indian+Thermal+Power+Scenario

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Electricity in the World and India

India has the fifth largest generation capacityin the world. The top four countries, viz., US,Japan, China and Russia together consumeabout 49 per cent of the total power

generated globally. The average per capita consumption of

electricity in India is estimated to be 704 kWh

during 2008-09, compared to the US (~15,000kWh) and China (~1,800 kWh).

The world average stands at 2,300 kWh.


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Indian Electric Power Survey

The Central Electrical Authoritys 17th ElectricPower Survey was released in May, 2007.

The Electric Power Survey Committeeconducts periodic surveys of electricitydemand and holds discussions with all the

stakeholders to bring out demand forecast foruse in planning exercises of all key sectors ofeconomy i.e. coal, rail, manufacturing,infrastructure, research, industries, etc.


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17th Electric Power Survey

Year Annual Peak Electrical Load

at Power Station Bus Bars

(MW)

2011-12 152746

2016-17 218209

2021-22 298253


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Power for All by 2012

The Ministry of Power has set a goal - Mission 2012:Power for All.

A comprehensive Blueprint for Power Sector

development has been prepared encompassing anintegrated strategy for the sector development withfollowing objectives:-

- Sufficient power to achieve GDP growth rate of 8%- Reliability of power- Quality power- Optimum power cost- Commercial viability of power industry

- Power for all


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Power for All by 2012(as on 28.02.11)

Power Sector at a Glance "ALL INDIA"

Sector MW % share

State Sector 82,452.58 47.96

Central Sector 52,712.63 30.66

Private Sector 36,791.19 21.38

Total 1,71,926.40 100.00


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RGGVY

The Rajiv Gandhi Grameen Vidyuthikaran

Yojana (RGGVY), aimed at rural electrification,

is an initiative to provide focus and funds to

rural distribution.

As of 31st March 2011, a total of 587 projects

were sanctioned, at a cost of Rs. 26,349

crores, electrifying 1,18,499 un/de-electrifiedvillages.


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Coal The World

Coal currently fuels 40% of the world

electricity and this proportion is set to remain

static over the next 30 years.

About 70% of the world's steel production is

based on coal.


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Indian Fuel Mix(as on 28.02.11)

Fuel MW % share

Total Thermal 111324.48 64.75

Coal 92418.38 53.76

Gas 17706.35 10.30

Oil 1199.75 0.70

Hydro (Renewable) 37367.40 21.73

Nuclear 4780.00 2.78

Renewable Energy 18454.52 10.73

TOTAL 171926.40 100.00


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Coal Reserves in India

(as on 01.04.2009 - in billion tonnes)

Type of coal Proved Indicated Inferred Total

All India : Total 105.72 123.57 37.92 267.21

Prime-coking 4.61 0.70 0.00 5.31

Medium-coking 12.45 12.06 1.88 26.39

Semi-coking 0.48 1.00 0.22 1.70

Non-coking 87.70 109.71 35.31 232.72High sulphur 0.48 0.09 0.51 1.08

Lignite 5.36 25.54 8.18 39.08


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Depth-wise Coal Reserves(as on 01.04.2008)


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Extractable Coal Reserves 1

The coal that can be extractedtaking intoaccount geological, technical, and economic

aspects - is only a small fraction of our total coal

inventories, without taking into account the no-

go areas.

The extremely high figure of 267.21 billion tonnes

has created a false and risky notion that India is

quite comfortably placed with over 100 years ofdomestic coal supply at its disposal.


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Criticism of Indian system of reporting

(Indian Standard Procedure 1957)

Based on categories defined by concentration

of exploratory boreholes.

Purely geological resource accounting system.

Does not consider mineability /extractability/

economic criteria.

Thus highly exaggerated resource inventory.


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Coal Reserve Data Criticism

Gross, cumulative and does not consider depletion/sterilization; includes coal

That was extracted during past 230 years of mining.

That was burnt / is burning in Jharia / Dhanbad andelsewhere.

That would be almost impossible to mine

In partially developed thick seams, in mine barriers,and in inundated mines.

Under reserve forests, tiger reserves, townships, rivers,major railways etc.

In seams between 600-1200 m depths and deeper.


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Sector-wise Coal Production

The provisional total production of coal in2008-09 was around 492.9 million tonneswhich was higher by 7.8% as compared to theprevious year.

Coal mining was confined mainly to the publicsector contributing 92.4% in both the yearsi.e. 2007-08 and 2008-09.

In 2007-08, out of the total production of coal,7.5% was coking coal and the rest 92.5% wasnon-coking coal.


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Coal Power Sector

In India, about 77% of the total coaloutput is consumed in the power

sector.


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Coal Indian States 1

Chhattisgarh is the largest coal

producing state with a share of about

20.7%, followed closely by Orissa and

Jharkhand having contribution of

20.0% and 19.5%.


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Coal Indian States 2

Next in order of share in the total production

were, Madhya Pradesh (14.5%), Andhra

Pradesh (9.0%), Maharashtra (7.9%), WestBengal (4.6%) and Uttar Pradesh (2.4%).

The remaining 1.40% of coal productionaccrued from the states of Assam, Jammu &

Kashmir and Meghalaya.


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Coal Mining Profile 1

In 2008-09, share of production of raw

coal from opencast (OC) mines was 88%

against 12% from underground (UG)

mines.


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Opencast mines damage a large land surface

area, displace people from their ancestral

homesteads and cause agricultural losses.

But the method is cost effective, recovery is

high, comparatively better in safety aspects

and is considered to be a modern method.

Surface mining requires large areas of land to

be temporarily disturbed.


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As on 31.3.2009, there were 561 operating

mines for coal in the country, out of which 197

were opencast while 332 were underground

mines. The remaining 32 were mixedcollieries.

There were 537 public sector mines and 24

mines in private sector.


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Mining-Induced Displacement and

Resettlement 1

Mining-induced Displacement andResettlement (MIDR) poses major risks tosocietal sustainability.

MIDR leads to landlessness, joblessness,homelessness, risk of marginalization, changein population dynamics, higher cost of living,

more health risks, disruption of formaleducational activities and increasedaddictions.


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Resettlement 2

MIDR is accompanied by the resettlement

effect, defined as the loss of physical and non-

physical assets, including homes,communities, productive land, income-earning

assets and sources, subsistence, resources,

cultural sites, social structures, networks and

ties, cultural identity and mutual help

mechanisms.


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Resettlement 3

DisplacementKey Social Issue.

Displacement of people due to coal mining isinevitable and is of enormous magnitude

1,70,000 families or 8,50,000 displacees to be

rehabilitated by 2025.

Land requirement to double from current

1,47,000 ha to 2,92,500 hectares.


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Resettlement 4

Very limited data and socio-economic

information on PAPs.

Fernandes: about 5 million (DPs and PAPs) for all

mining (mostly coal) (disputed).

75% of displaced peoples lives worsened due to

displacement.

Detailed socio-economic data needs to bemonitored, collected, and authenticated on a

routine basis for all projects.


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Resettlement 5 Coal projects are being held up because of

social protests against mining.

Little/no information on abandoned mines;

reclamation and mine closure problems.

Rehabilitation and Resettlement (R&R)

should make sure that people are better off

than before. R&R should include creation ofsocial assets and benefit sharing.

Need for coal companies to be progressive

and pro-active in dealing with their past.


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Resettlement 6

PAPs need to be part of

the decision making

process.


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Coal Mine Profile 1

There were 559 coal mines (as on 31.03.2008)which reported production in 2007-08. Out ofthese, 174 mines were located in Jharkhand,West Bengal had 102 mines, Madhya Pradesh

(74), Chhattisgarh (57), Maharashtra (53),Andhra Pradesh (52) and Orissa (27).

The remaining 20 mines were located in thestates of Assam, Jammu & Kashmir and UttarPradesh.


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Coal Mine Profile 2

In 2007-08, there were 76 large mines eachproducing some 10 lakh tonnes of coal during theyear and these mines accounted for 74.3% of thetotal production.

About 25.2 % of the total coal production wasshared by 380 mines whose individual productionvaried between 50,000 to 10 lakh tonnes.

Only 0.5 % of the production was contributed by103 small mines each producing up to 50,000tonnes.


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State PSUs in Coal Mining

Bihar State Mineral Development

Corporation Ltd (BSMDC), Damodar

Valley Corporation (DVC) and Jammu &Kashmir Minerals Ltd. (JKML) are the

State Government undertakings

engaged in coal mining.


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Lignite Mining

Of the thirteen working mines, all of them

opencast, three are owned by Neyveli LigniteCorporation (NLC), five by Gujarat MineralDevelopment Corporation Ltd. (GMDCL) andthree by Rajasthan State Mines and MineralsLimited (RSMML) and one mine each is withGujarat Industries Power Co. Ltd (GIPCL) andGujarat Heavy Chemicals Ltd (GHCL).

Sector-wise twelve mines are under public sectorand the remaining one is under private sector i.e.GHCL.


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Captive Coal Mining 1

IISCO steel plant of SAIL is the only

public sector steel unit operating

captive mines for coal. Bengal EmlaCoal Mines Ltd (BECL), Jindal Steel &

Power Ltd (JSPL), Hindalco and Tata

Steel are the companies, operatingcaptive mines in the private sector.


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Captive Coal Mining 2

At present, captive coal blocks are

only allotted to companies in power,

cement and steel sectors. Till 31.3.2009, a total of 201 coal

blocks with 47,340.2 million tonnes

geological reserves have been

allotted in various states.


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Captive Lignite Mining

Similarly, 30 captive lignite blockswith 2,223.53 million tonnes

geological reserves have been

allocated in Gujarat (12 blocks),

Rajasthan (17 blocks) and Tamil Nadu

(one block) for power (17 blocks andcommercial (13 blocks) till 31.3.2009.


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Captive Coal and Lignite Mining

In consultation with CIL and NLC, 47

new coal blocks with geological

reserves of about 17721.52 million

tonnes and 38 lignite blocks with

geological reserves of about 6240.34million tonnes have been identified.


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Location of Coal and Lignite Resources


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Characteristics of Indian Coal Deposits


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Beneficiation of Non-Coking Coal

Study by Planning Commission

concluded that carrying beneficiated

coal > 400 km is more attractive. 70% thermal coal moves > 400 km

but only 20% of coal is beneficiated

at present.


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Coking Coal Washeries

Presently 19 coal washeries (15 in publicsector and 4 in private sector) with 33.28million tonnes per annum capacity produced

7.18 million tonnes coking coal in 2008-09.

Production of washed coking coal during2008-09 was 4.26 million tonnes in PublicSector and 2.93 million tonnes in PrivateSector.


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Non-Coking Coal Washeries

31 coal washeries with 97.32 million tonnes

capacity produced 40.95 million tonnes non-

coking coal during the year.

In public sector, 7 non-coking coal washeries

were operational, whereas in private sector,

24 non-coking coal washeries were inoperation.


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Indian Port Sector Major Ports

Major ports are governed by Government ofIndia.

6 ports each on east coast and west coast.

Handle about 66% of total seaborne traffic. All ports are ISPS compliant.

Capacity as on 31-03-2010 : 616.73 milliontonnes.

Throughput during 2009-10 : 561.09 milliontonnes.


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Indian Port Sector Non-Major Ports

Governed by the state governments.

No of Ports : 200 Operational : 62.

35 Ports are ISPS compliant.

Handle about 34% of total seaborne traffic.

About 75% of Non-Major Port traffic handledby Gujarat State alone.


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Indian Port Sector Non-Major Ports

Cargo Mix :

POL 50%

Iron Ore 17%

Coal 14%

Fertilizer & FRM 2%

Cement & Clinker 5%

Container 5%

Others 6%


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Major ports trend in cargo mix

l h dli i j ffi


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Coal handling in major portstraffic

growth (in million tonnes)

Pl f d l f ddi i l


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Plans for development of additional

coal handling facilities 1

Deepening and widening of entrance channel tofacilitate larger size vessels at Paradip,Visakhapatnam, Chennai, Ennore, Tuticorin, NewMangalore.

PARADIP Mechanized Coking Coal / ThermalCoal Handling facilities.

VISAKHAPATNAM Mechanized cargo handling

facilities at GCB at Outer Harbour for ship sidehandling @ 25000 TPD as well as mechanizedloading into wagons at East yard dumps.


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Plans for development of additional

coal handling facilities 2

ENNORE - Development of a Coal Terminal to

handle coal for users other than TNEB.

TUTICORIN Construction of a Coal Berth for

NLC TNEB.

NEW MANGALORE Development of coal

handling facilities for captive users.


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Coal Handling Capacity Demand(in million tonnes)


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Coal Movement in India

Bulk of coal is transported by rail 47 %

Road transportation 27 %.

Pit-head consumer by dedicated merry-go-

round (MGR) rail link 19 %.

Coastal consumers in southern part of India by

rail and sea route 2 % (extra-polated).

Limited aerial ropeway and cross country belt

conveyors 5 %


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Constraints in Transportation 1

It is estimated that 47.33% amounting to 514million tonnes of beneficiated coal + superiorgrade coal is likely to be transported throughnational rail network / rail-cum-sea network forconsumers located beyond coal field areas.

The transportation of huge volume of thecountries production of about 1061 million

tonnes by the end of 2024-25 will be a gigantictask as bulk of the coal has to be transported topower utility and other industries.


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Constraints in Transportation 2

In order to enable the vast movement of coal,the Central Electricity Authority has identified

through a study by NRSA, 90 potential sites in

four states. Of these, 31 are in six districts of Gujarat, 23 in

two districts of Maharashtra, 27 in eight

districts of Tamil Nadu and 9 in three districtsof Andhra Pradesh for development of coastal

power projects.


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Constraints Railways 1

The inter state railway network in coal

rich States is not adequately linked to the

proposed sites / clusters.

Railway network along with the wagon

supply at port are not properlycoordinated for fast movement of cargo.


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Constraints Railways 2

Various on-going projects to expand railnetwork and other decongestion measureshave been thrown forward from one plan toother due to various reasons like shortage of

funds, delays in land acquisition,environmental clearance etc.

Gestation period of projects of new line is veryhigh therefore, interim measures needed todecongest the traffic in these areas.


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Constraints Roads 1

Condition of major state highways and districtroads are worrisome.

Fund requirements for this segment have

been neglected for long leading to variousdeficiencies.

Relative rate of road length and vehiculartraffic indicate a serious imbalanced and haveled to congestion of roads and movement offreight traffic is extremely slow .


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Constraints Roads 2

Higher percentage of single lane and poorquality of roads in coastal states has furthercompounded the problem of congestion atthe roads.

The system of check posts is a majorhindrance in seamless flow of goods for onestate to another.

Due to above, delays and lower utilization forthe rolling stock for which the user industrieshave to pay heavily.


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Coal Vision 2025 by CMPDIL/CIL

CMPDILs Coal Vision 2025 indicates that theoverall annual growth in coal demand till 2025 is

expected to be 5.62% with 8% GDP growth

scenario, and 5.04% with 7% GDP growth.

This means that the demand for coal would

increase to 1147 MT (7% GDP growth) and 1267

MT (8% GDP growth) in 2025.

The total domestic coal production is projected to

increase to 1086 MT in 2025, of which the open

cast production will be 902 MT (83%).

Coal Vision 2025 by


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Coal Vision 2025 by

CMPDIL/CIL/MoC

Coal Vision 2025 has estimated that 1,70,000families or 8,50,000 displaced persons would have tobe rehabilitated by 2025 when the requirement forland would double from current 1,47,000 hectares to2,92,500 hectares.

The requirement of forest land for mining would alsoincrease more than three-fold from the current 22,000 hectares (15% of the current total landrequirement) to 73,000 hectares (25% of theprojected total land requirement) since much of thecoal resources to be exploited in future are located inforests.

Coal Demand Projection @ 8% GDP


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Coal Demand Projection @ 8% GDP

growth


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Two Coal Demand Projections


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XIth Plan Coal Demand Projections


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XIth Plan Coal Supply Projections


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Coal Import Projections

The XIth Plan Working Group on

Coal and Lignite coal import

projection for 2011-12 is 51.10 MT.

Imports of coal during 2010-11 wereabout 65.7 MT.

Coal Demand Supply Gap 2011-12


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Coal Demand Supply Gap 2011-12

at 142 MT


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Foreign Trade Exports 1

In 2008-09, exports of coal increased about

2% to 1.66 million tonnes from 1.63 million

tonnes in the previous year.

Similarly, exports of coke also increased to

1.35 million tonnes in 2008-09 from 0.1million tonnes in 2007-08.


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Foreign Trade Exports 2

Coal was mainly exported to Bangladesh

(78%), Nepal (14%) and Bhutan (7%) and coke

to Bahrain (39%), France (31%), Brazil (14%)

and Bhutan (7%). Exports of lignite were nominal in 2008-09.

Exports of coal gas increased to 21,000 tonnes

in 2008-09 from 7,354 tonnes in the previousyear.


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Foreign Trade Imports 1

Imports of coal increased by 19% to 59 million

tonnes in 2008-09 from 49.8 million tonnes in

2007-08.

Imports of coke decreased to 1.88 million

tonnes in 2008-09 from 4.25 million tonnesin the previous year.


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World steam and coking coal

demand and trade (1982-2005)


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A Warning Bell

High quality coal (6000 kcal/kg)

import needs could range upto 770

MT by 203132. However, currentlyonly about 700800 MT of coal is

being internationally traded!


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Decade Ahead for Coal Industry

Huge coal demand.

Massive investments.

Significant technological upgradation.

Large scale mining operations.

Increased productivity from underground mines.

Increase in captive coal mining.

Increased coal imports.

Shortage of skilled manpower.

Anticipated Investments


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Anticipated Investments(in rupees crores)

95,000

23,000

24,4801,312

2,100145,892

0

40,000

80,000

120,000

160,000

O/C Mining U/G Mining Beneficiation Exploration Environment Total

InRs.

Crs


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Future of World Coal Trade

Dominance of steam coal in international coal tradeexpected to continue.

International coal trade expected to grow at an

average annual rate of only 1.2 %. Share of coal trade as a percentage of global coal consumption falls to

14 percent in 2030.

Largest increase in demand from China.

Price volatility is likely continue.

Increasing Resource Nationalism in exportingcountries would deter trade.


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What Next?

Deplete domestic resources, Buy mines /

equity in other countries.

Long term purchases.

Spot purchases.


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Coal Demand Projections

The current demand projections

were made in 2004-05.

Fresh figures of coal demandprojections, planned production and

expected shortfalls that will be met

by imports are not forthcoming from

Coal India Limited.


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Immediate Action Needed

Must stop Indiscriminate capacity addition on coal; especially based

on sub-critical technology

Retrofitting of old /smaller/ inefficient units

Must shift to more efficient technologies Super critical

Ultra super critical

IGCC

Restrict total coal based generation capacity to1,50,000 MW ???

The Future


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The Future

Coal use will be self-limiting due to

Increasing concerns of Climate Change

Difficulty in Land Aquisition

Forest Land

R & R (Rehabilitation and Resettlement)

Cheap Coal: The Worlds Most


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Cheap Coal: The World s Most

Expensive Bargain?

Coals market price reflects various

cost elements including mining,

production, transportation andretailing costs, government levied

taxes and fees, and profit, and the

relationship between supply and

demand.



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Expensive Bargain?

But this pricing system ignores some of thebiggest costs of coal use: the local and globalenvironmental and social impacts accrued by theexploitation, transformation, transportation and

utilization of coal.

Because the current market price of coal does notreflect the value of ecological and social

resources implicit to the exploitation and use ofcoal, they are, in economic terms, external to themarket price.



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Expensive Bargain?

Tragically, such external costs often

wind up being paid by those

communities subject to coal-

generated pollution, in the form of

degraded natural resources andhealth problems.



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Expensive Bargain?

Opencast mining requires the exploitation oflarge tracts of land, and brings with it its ownslew of environmental impacts, such as loss of

vegetation and tree cover, erosion, dustpollution, depleted forest cover andbiodiversity, and pollution of surface waterbodies.

Such impacts have led to protests in manyparts of India.

Ch C l Th W ld B i !


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Cheap Coal: The Worlds Bargain !

Coal is the most abundant conventional fossilfuel on the planet and accounts for two thirdsof the global fossil fuel resource base.

Factor in its relatively low costs, balancedgeographical and political distribution,substantial energy density and the worldsinsatiable appetite for electricity and it is an

ostensibly perfect fuel for a ready-mademarket.

Credits


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Power Sector in India, KPMG, 2010.

Power at a Glance, Central Electricity Authority, February 2011.

17th Electric Power Survey, Central Electricity Authority, May 2007.

http://rggvy.gov.in/rggvy/rggvyportal/plgsheet_frame3.jsp

India Energy Handbook 2011, PSI Inc., August 2010

Indian Mineral Year Book 2008-09, Indian Bureau of Mines, Nagpur.

Partha S. Bhattacharrya, Chairman, Coal India Limited, June 2007.

Coal Mining in India, Coal India Limited, November 2008.

A V P N Sarma, Former Secretary, Ministry of Shipping, 2010; G. Srinivasan, Under Secretary,Ministry of Coal, June 2007.

Tuhin Mukherjee, Essel Mining (an Aditya Birla Group company), February 2011; Coal Vision2025, CMPDIL.

S. K. Chand and R. K. Batra, The Energy and Resources Institute (TERI), November 2009; CoalVision 2025, CMPDIL; The Future Of Coal, B. Kavalov, S.D. Peteves, DG JRC, Institute forEnergy, February 2007 and IEO 2009.

S. Chaudhuri, CMD, CMPDIL, 2006.

Dr. Gurdeep Singh, Professor & Head, Dept. of Environmental Science & Engg., Indian Schoolof Mines University, Dhanbad Mining Engineers Journal, June 2008; Coal Vision 2025,CMPDIL,2007.

K.K. Sharma, Executive Director(CM and CW), NTPC, August 2010.

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Indian+Thermal+Power+Scenario

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