Future Challenges in Coal Based Power Plants

2799 Words Aug 11th, 2012 12 Pages
India’s power market is the fifth largest in the world. Coal fuels about 55 % of India’s power generation, and if current positions are accurate, the proportion will grow substantially in the next 20 years. To this point, India has met its burgeoning demand for electricity primarily with the development of conventional thermal power generation with coal representing the lion’s share of generating fuel. The power sector is high on India’s priority as it offers tremendous potential for investing companies based on the sheer size of the market and the returns available on investment capital. But of late Coal based Power Projects are facing various challenges or threats in order to get accomplished and commissioned in due time.

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Problem faced by the power developers are – (i) A.C.Q – in L.O.A-85% P.L.F Against requirement for Fixed Cost Recovery (ii) G.C.V of coal for calculation of A.C.Q 80% against-85% (iii) Term of Model F.S.A only 5 years against long term P.P.A term of 20-25 years.

(2) Land acquisition has become the most difficult problem for policy makers in India. Names like Singur, Nandigram, Kalinganagar, Jaitapur and Bhatta Parsaul, Noida have entered in our vocabulary as distressing images of social conflict. The post-liberalisation economic boom continues to create a voracious appetite for space to meet the demands of industrialisation, infrastructure building, urban expansion and resource extraction. Finding a way to balance the needs of economic growth, equitable distribution and human rights and rescuing these complex and sometimes conflicting objectives from the political opportunists, is perhaps the greatest challenge facing our democracy.

(3) Power plants are the largest water consumer among all.So allocation of water is an important factor for the power plants. The raw cooling water required depends on the ultimate station capacity planned. For a 2000 MW plant approx water requirement is 96 cusecs and it is a huge amount.
The preferred location for a power station from the cooling water view point is near a river or sea coast. But nearly two-thirds of India’s power plants are located in water-scarce or water-stressed areas. And nearly 80 % of
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