coal india: ‘New coal transport mechanism might elevate energy price as much as 10%’

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The general electrical energy price is prone to rise by as much as 10% when a fifth of an influence plant’s coal requirement is transported via the ‘rail-ship-rail’ system, a senior authorities official informed ET.

The energy ministry had on Monday requested Gujarat, Rajasthan, Maharashtra, Punjab in addition to NTPC to move 10-15% of their coal requirement via a mix of land and sea route, additionally referred to as rail-ship-rail mode.

The brand new coal transport mechanism was labored out due to logistical constraints of direct rail motion and an anticipated improve in coal requirement within the coming peak demand season of April-Could. The ability price will nonetheless be cheaper than that produced utilizing imported coal.

High-price-to-pay

“As an example at this time energy is being bought at ₹4 per unit then will probably be ₹4.4 per unit (after rail-ship-rail). But when we generate energy via imported coal, then will probably be ₹5 per unit,” the official mentioned. “So, the affect on energy technology from imported coal shall be a lot increased than the extra price due to this longer route of transportation,” he mentioned.

The brand new mode of transport will take coal from Coal India‘s mines to Paradip Port, from the place the gas will transfer to the west coast for varied energy vegetation, travelling an extended distance than the standard direct rail route.

“Because of the current surge in demand and consumption of electrical energy, the share of coal-based technology has elevated. Though the provide of coal from all sources has elevated, it isn’t commensurate with the necessities of thermal energy vegetation,” the ability ministry had mentioned on Monday.Final 12 months, a coal provide disaster emerged in April due to a sudden rise in energy demand, stretching the Railways and coal manufacturing. The coal ministry additionally plans to have 118 million metric tonnes of home coal by the tip of the continued monetary 12 months to keep away from a gas disaster through the peak energy demand season in April-Could. Different measures like an elevated fuel provide to energy vegetation, mixing of imported coal, and staggered energy plant upkeep have additionally been deliberate by the ability, coal, and renewable power ministries to satisfy the upcoming peak demand.

The seemingly provide of home coal through the first half of FY24 can be round 392 million metric tonnes, leaving round 24 million metric tonnes shortfall throughout the identical interval, the ability ministry mentioned on Monday.



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