Stiff challenge ahead of coal-based power plants

KOLKATA: Cut down on coal consumption or pay penalty. With the rollout date of PAT scheme round the corner, coal-fired power generation plants - like Bandel V and Kolaghat units - in the state are facing a real threat since their performance in recent years has been far below the desired level.
Efficiency of these plants will be put to test from March 2014 once they're subjected to the "Perform, Achieve and Trade", or PAT, scheme undertaken by the Bureau of Energy Efficiency (BEE).In case they under perform, these plants will have to shell out a penalty calculated on the basis of what remains to be achieved to meet the target. The index will then be multiplied by the present cost of energy (Rs 10,154 per tonne of oil).
The laggards have been under scanner since 2006 when the state level committee proposed to shut down some of them.
PAT is a market-based mechanism in which sectors are assigned efficiency targets.
While units which fail to meet targets will be penalized, those who over-achieve will get incentives in the form of energy-saving certificates. These certificates are tradeable and can be bought by other industries unable to achieve their targets. Power plants and other industries can trade these certificates like carbon.
The target fixed for energy-guzzling power plants seems quite stiff for some, particularly for Bandel and Kolaghat. Power plant managers have to reduce coal consumption by 2-4% to bring down heat rate and a poor plant load factor (PLF). For example, Bandel power plant has a poor PLF of 40-44% while the Kolaghat plants taken together have a 70% PLF.
The BEE, however, wants these plants to cut down coal consumption by 50%, thus scaling down the consumption from 6.68 million tonne to 3.21 million tonne. Bandel consumes 6,000 tonne of coal at present. The figure stands at 20,000 tonne for Kolaghat power plants.
The West Bengal State Electricity Distribution Corporation Ltd (WBSEDCL) has been asked to keep tabs on the energy conservation target as a state agency of the BEE. The WBSEDCL will calculate the energy efficiency based on coal consumption by boilers and the coal and oil used to light up the boilers.
The state-level committee for preparation of power sector's perspective plans resolved in 2006 that electricity should be generated at the highest attainable level of efficiency with minimum level of pollution. The committee also resolved that polluting power plants may be phased out after 30 years of installation if they fail to meet the environment standards. "The committee held that fuel and technology choices for new power stations should be based on cost-benefit analysis taking into account both environmental and health costs," a state power official said.