India will give so-called supercritical power projects a higher priority in getting scarce coal supplies, putting smaller utilities at a disadvantage, as the government seeks to meet burgeoning demand in the world's fastest growing economy after China.
"We do not want small players," Union power secretary HS Brahma said. "We are only looking at large players who have plans to set-up large capacities as it will help in increasing the power generation capacity of the country."
The coal linkage policy for the proposed 12th Plan period (2012-17) will give supercritical projects, which generate 660MW and more, a 20 per cent weightage. The higher capacity helps generate increased plant efficiencies and economies of scale, besides being environment-friendly.
The preference is aimed at helping the country launch a supercritical power programme along the lines of similar efforts in the US, Japan, Germany, South Korea and Russia. The policy will also help the large power projects of companies such as Anil Ambani-owned Reliance Power Ltd, Tata Power Co Ltd, Adani Power Ltd, CLP Power India Pvt Ltd, Lanco Infratech Ltd, Indiabulls Power Ltd and Jindal Power Ltd.
The Central Electricity Authority (CEA), India’s apex power sector planning body, endorsed the ministry’s view.
“Of around 74,000 mega watt coal based capacity proposed during the 12th Plan, close to 60 per cent of projects plan to use supercritical technology,” said a senior official who didn’t want to be identified as he’s not authorised to speak to the media. “The balance (around 30,000MW), which plan to use subcritical technology, will get affected as there is a very limited possibility of them getting coal linkages.”
The preference for coal linkages will be assigned according to a points system, with a maximum of 100. Projects using supercritical technology will get 20 points. Of the remaining 80 points, as much as 50 will be based on the status of land acquisition, 20 for projects located at pit heads and the balance for generation plants using sea water instead of fresh water.
India doesn’t have sufficient coal reserves to meet the galloping demand for power. To generate 1 mega watt of power, around 5,000 tonnes of coal per annum is required.
The country has 256 billion tonnes of coal reserves, of which around 455 million tonnes per annum (mtpa) is mined. Domestic coal demand is expected to touch around 2 billion tonnes a year by 2031-32, about five times the current rate of extraction, with the maximum demand coming from the power sector.
“There is hardly any coal available,” Brahma said. “This weightage will help in establishing supercritical technology in the country.”
An energy sector expert called for market-oriented solutions.
“Coal produced as well as reserves in the blocks are being rationed and they result in such inconsistencies. This dichotomy is stark as India also boasts of a large resource base,” said Dipesh Dipu, principal consultant (mining) with audit and consulting firm PricewaterhouseCoopers.
“We in CLP look at the sub versus supercritical deba O2 emissions rather than a large versus small developer angle,” said Rajiv Mishra, managing director of CLP Power. “We will not build sub critical coal-fired power plants, and believe no one else should. We should move towards supercritical and, in due course, ultra-supercritical (USC) technology, to reduce the carbon intensity of generation.”
CLP’s Mishra said the effect on power producers not in the supercritical category would be minimal.
"We do not want small players," Union power secretary HS Brahma said. "We are only looking at large players who have plans to set-up large capacities as it will help in increasing the power generation capacity of the country."
The coal linkage policy for the proposed 12th Plan period (2012-17) will give supercritical projects, which generate 660MW and more, a 20 per cent weightage. The higher capacity helps generate increased plant efficiencies and economies of scale, besides being environment-friendly.
The preference is aimed at helping the country launch a supercritical power programme along the lines of similar efforts in the US, Japan, Germany, South Korea and Russia. The policy will also help the large power projects of companies such as Anil Ambani-owned Reliance Power Ltd, Tata Power Co Ltd, Adani Power Ltd, CLP Power India Pvt Ltd, Lanco Infratech Ltd, Indiabulls Power Ltd and Jindal Power Ltd.
The Central Electricity Authority (CEA), India’s apex power sector planning body, endorsed the ministry’s view.
“Of around 74,000 mega watt coal based capacity proposed during the 12th Plan, close to 60 per cent of projects plan to use supercritical technology,” said a senior official who didn’t want to be identified as he’s not authorised to speak to the media. “The balance (around 30,000MW), which plan to use subcritical technology, will get affected as there is a very limited possibility of them getting coal linkages.”
The preference for coal linkages will be assigned according to a points system, with a maximum of 100. Projects using supercritical technology will get 20 points. Of the remaining 80 points, as much as 50 will be based on the status of land acquisition, 20 for projects located at pit heads and the balance for generation plants using sea water instead of fresh water.
India doesn’t have sufficient coal reserves to meet the galloping demand for power. To generate 1 mega watt of power, around 5,000 tonnes of coal per annum is required.
The country has 256 billion tonnes of coal reserves, of which around 455 million tonnes per annum (mtpa) is mined. Domestic coal demand is expected to touch around 2 billion tonnes a year by 2031-32, about five times the current rate of extraction, with the maximum demand coming from the power sector.
“There is hardly any coal available,” Brahma said. “This weightage will help in establishing supercritical technology in the country.”
An energy sector expert called for market-oriented solutions.
“Coal produced as well as reserves in the blocks are being rationed and they result in such inconsistencies. This dichotomy is stark as India also boasts of a large resource base,” said Dipesh Dipu, principal consultant (mining) with audit and consulting firm PricewaterhouseCoopers.
“We in CLP look at the sub versus supercritical deba O2 emissions rather than a large versus small developer angle,” said Rajiv Mishra, managing director of CLP Power. “We will not build sub critical coal-fired power plants, and believe no one else should. We should move towards supercritical and, in due course, ultra-supercritical (USC) technology, to reduce the carbon intensity of generation.”
CLP’s Mishra said the effect on power producers not in the supercritical category would be minimal.
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