Lok Sabha Question No. 268 (UNSTARRED), answered on 2016-02-25
Subject: Use of Coal in Power Generation
Ministry: POWER
Asked by: KRISHNAN NARAYANASAMY RAMACHANDRAN

## GOVERNMENT OF INDIA MINISTRY OF POWER

## LOK SABHA UNSTARRED QUESTION NO.268 TO BE ANSWERED ON 25.02.2016

## USE OF COAL IN POWER GENERATION

268.   SHRI K.N. RAMACHANDRAN:

Will the Minister of POWER be pleased to state:

(a) whether the Government has any mechanism to assess the total quantity of coal used for purpose of power generation in the country, if so, the details thereof;

(b) the details of estimated cost of production of power per unit from this source;

- (c) whether it is a fact that thermal power is not cost effective, if so, the details thereof; and
- (d) the steps taken by the Government to reduce the cost of production of power from this source?

## A N S W E R

THE MINISTER OF STATE (INDEPENDENT CHARGE) FOR POWER, COAL AND NEW & RENEWABLE ENERGY

( SHRI  PIYUSH GOYAL )

(a) : The  Central  Electricity  Authority  (CEA)  has  issued  on  15th  January, 2015 the norms for annual coal consumption in thermal power plants at 85% Plant Load Factor (PLF) for different grades of coal. The details of the norms is given at Annex.

(b) : The cost of production of coal based power plants depends on various factors i.e. grade/ gross calorific value (GCV) of coal, moisture content, ash content, distance from mine to plant and unit size of the power plant etc. In addition, the cost of  power  production  for  the  coal  based  power  plants  designed  on  imported  coal depends on various factors such as country of origin of coal, GCV, moisture content, ash content, Ocean freight, distance of plant from the port etc. As per CERC Annual Report 2014-15, the tariff for coal based power plants of central generating stations under the regulated tariff regime varied from Rs. 1.58 per kWh to Rs. 5.53 per kWh.

(c) : Coal based thermal power plants are cost effective and get scheduled as per their merit order. During the year 2015-16 (upto January, 2016), coal based generation was around 77% of the total power generation in the country.

(d) : In  order  to  reduce  cost  of  power  generation  from  coal  based  power plants, the  Government has taken various measures viz. coal linkage rationalisation, coal swaps, correction in coal grade slippage by introducing independent third party sampling and allocating coal linkages at notified price etc.  In addition, replacing the old  inefficient  thermal  generating  units  by  super  critical  units  and  Renovation  & Modernisation  /  life  extension  of  old  inefficient  units  is  also  being  undertaken  to reduce cost of power generation.

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ANNEX

ANNEX  REFERRED  TO  IN  REPLY  TO  PART  (a)  OF  UNSTARRED  QUESTION  NO.  268  TO  BE ANSWERED IN THE LOK SABHA ON 25.02.2016. ***********

Norms for Coal consumption in TPPs issued on 15.01.2015

Annual coal consumption at 85% PLF (Tones per MW per Annum)

| Grade   | GCV Considered   | Sub Critical Technology                                      | Sub Critical Technology                                      | Sub Critical Technology                                      | Sub Critical Technology                                      | Super-critical units #                                       |
|---------|------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| Grade   | (kcal/kg)        | Less than 100MW                                              | 100MW to less than 200 MW*                                   | 200MW to less than 250 MW*                                   | 250 MW and above #                                           | Super-critical units #                                       |
|         |                  | Unit Heat Rate (kcal/kWh)                                    | Unit Heat Rate (kcal/kWh)                                    | Unit Heat Rate (kcal/kWh)                                    | Unit Heat Rate (kcal/kWh)                                    | Unit Heat Rate (kcal/kWh)                                    |
|         |                  | 2770                                                         | 2615                                                         | 2500                                                         | 2375                                                         | 2250                                                         |
|         |                  | Annual coal consumption at 85% PLF (Tonnes per MW per Annum) | Annual coal consumption at 85% PLF (Tonnes per MW per Annum) | Annual coal consumption at 85% PLF (Tonnes per MW per Annum) | Annual coal consumption at 85% PLF (Tonnes per MW per Annum) | Annual coal consumption at 85% PLF (Tonnes per MW per Annum) |
| G4      | 6100             | 3381                                                         | 3192                                                         | 3052                                                         | 2899                                                         | 2746                                                         |
| G5      | 5800             | 3556                                                         | 3357                                                         | 3209                                                         | 3049                                                         | 2889                                                         |
| G6      | 5500             | 3750                                                         | 3540                                                         | 3385                                                         | 3215                                                         | 3046                                                         |
| G7      | 5200             | 3966                                                         | 3744                                                         | 3580                                                         | 3401                                                         | 3222                                                         |
| G8      | 4900             | 4209                                                         | 3974                                                         | 3799                                                         | 3609                                                         | 3419                                                         |
| G9      | 4600             | 4484                                                         | 4233                                                         | 4047                                                         | 3844                                                         | 3642                                                         |
| G10     | 4300             | 4797                                                         | 4528                                                         | 4329                                                         | 4113                                                         | 3896                                                         |
| G11     | 4000             | 5156                                                         | 4868                                                         | 4654                                                         | 4421                                                         | 4188                                                         |
| G12     | 3700             | 5574                                                         | 5263                                                         | 5031                                                         | 4780                                                         | 4528                                                         |
| G13     | 3400             | 6066                                                         | 5727                                                         | 5475                                                         | 5201                                                         | 4928                                                         |
| G14     | 3100             | 6653                                                         | 6281                                                         | 6005                                                         | 5705                                                         | 5404                                                         |
| G15     | 2800             | 7366                                                         | 6954                                                         | 6648                                                         | 6316                                                         | 5983                                                         |

Note:          In    case  of  power  projects  where  approved  heat  rate  by  Regulator  is  higher  than above considered value, the Heat Rate approved by Regulator would be considered  for the purpose of working out  normative coal consumption requirement.

* In case of main steam pressure is 150 ata or above the Unit Heat Rate shall be reduced by 100 kcal/ kWh
- # In case of  units having Motor Driven  Boiler Feed Pump (MDBFP) of 500 MW and above size units including Super Critical  units, the unit heat rate shall be reduced by 50kcal/kWh.

Following formula  may be used for conversion of coal consumption to MTPA per 1000 MW: MTPA per 1000 MW = Tonnes per MW per Annum/1000. These norms will be applicable for Captive Power Plants (CPP) also.

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