ESTIMATION AND COMPARISION OF COST OF COAL POWER GENERATION WITH EXTERNAL COSTS AND COST OF SOLAR POWER GENERATION WITH GRID INTEGRATION COSTS

1. Estimation & Comparison of
Cost of Coal Power with External costs &
Cost of Solar power with Grid Integration costs
Presented By:- Ankur Tyagi
MBA (14th Batch)

2. Objective
Photovoltaic Power
Generation System
Coal Power
Generation System Problem Solution
Cost/KWh is high Cost/KWh is low
Very low Negative
Externalities
Large Negative
Externalities
External Cost are
not or Partially Paid
Find out
True Cost
Variability &
Uncertainty in Power
Generation
Constant &
Continous Power
Generation
Require Grid
Upgradation
Find out Grid
Upgradation
Cost
So objective is to find out the cost of coal power generation after adding cost of
negative externalities due to coal power plants
&
Cost of solar power generation after adding cost of grid integration due to solar
power plants

3. External Costs
• Are the factors whose costs paid by third party
who is not involved in the transaction
between producer and consumer.
• These costs are not reflected in the market
price of goods and services.

4. External costs in Coal Power Plant
• Coal is the cheapest source of electricity generation after
Hydro but Full costs are not reflected in its market price,
and thus while we may seemingly purchase and burn coal
cheaply, in reality we are paying a much higher cost in the
long run, if we look at the big picture.
• External costs have negative impacts on Country Economics
& human and environmental health which are not reflected
in the price of coal.
• Those who benefit from the seemingly cheap electricity
don't pay for these externalities directly, but the whole
society eventually has to pay in the form of medical bills,
environmental cleanups, etc. (Social Cost)

5. External Costs and Market Price

6. LIFE CYCLE OF COAL
Methodology
• In this study the overall
approach adopted is the life
cycle analysis for estimating the
environmental and social
impacts of production of
electricity from conventional
coal based power generation
systems. External costs
estimated in this chapter have
mostly been based on collection
and analysis of secondary data
collected from varied literature.
• Given the constraints to find out
appropriate data, estimates for
costs of grid integration of solar
power are primarily collected
from existing literature – both
domestic and international. The
estimates are based on current
trend and analysis of grid
integration cost by high
renewable generation countries
of Europe and other part of
world.
Grid integration cost
in high renewable
generation countries
Secondary Literature:
National & International

7. • Quantified
• Monetized
• External costs which can be quantified and monetized

8. Installed Capacity & Electricity
Generation by Coal (2014-15)
62%
9%
0%
15%
1%
2% 8%
1% 2%
Installed Capacity
Coal Gas Diesel Hydro Small Hydro
Nuclear Wind Solar Biomass
74%
4%
0%
12%
1%
3%
5%
0%
1%
0%
Electricity generation
Coal Gas Diesel Hydro Small Hydro
Nuclear Wind Solar Biomass Import

9. GHG Emission by India
38%
8%
7%
7%
6%
18%
3%
14%
GHG Emission by Sector 2007
India (%)
Electricity Transport Residential Cement
Iron & Steel Agriculture Waste Others
25,28
14,4
10,16
6,96
5,36
3,11
Top 5 GHG Emitters (%)
China United States Europian Union
India Russia Others

10. Coal Consumption & GHG (Electricity
Generation)
64,68
35,32
Coal Consumption India (2014-15) %
Electricity
Others
38%
8%
7%7%
6%
18%
3%
14%
GHG Emission by Sector 2007 (%)
Electricity
Transport
Residential
Cement
Iron & Steel
Agriculture
Waste
Others

11. External Costs Factors

12. External Costs Factors considered in this Study

13. EXTERNAL COSTS OF COAL
MINING

14. Deforestation
• GHG emission
• Loss of wildlife and biodiversity
• Loss of Living

15. Loss of Wildlife And Biodiversity

16. Loss of Living
• Lost there daily living
• Displacement of Local Community
• Problem of Resettlement and Rehabilitation

17. Loss of Living
• Coal Theft
• Anti Social Activities

18. Water Pollution
• Acid Mine Drainage
• Decline and contamination of surface and underground
water

19. Water Pollution

20. Land degradation
• 85% open cast mining technique is used
• 20% reclamation of abandoned mines
• Abandoned mines are source of water/air pollution and mine fires

21. Coal Mines fires
• Emit NOx, SOx, CO and other harmful gases
• Some mine fires are 100 year long in India

22. Occupational Hazards
• Respiratory Disease (Ex: Black Lung Disease)
• Mine Accidents

23. Air Pollution
• Particulate matter emission by coal mining and overburden

24. Coal Washeries
• Coal Washeries waste (Sludge) either dump into ground or water
streams cause air, soil and water pollution.
• The Sludge contains heavy metals like mercury, arsenic that enter
into water and air.

25. Coal Transportation
• Network Congestion
• Accidents and Derailments
• Emissions by diesel engines and loss of coal during transportation
• Average distance travel by coal to reach TPP in India is 500 KM

26. EXTERNAL COSTS OF
COAL COMBUSTION IN
COAL FIRED POWER PLANT

27. CO2 Emission
• Global Warming- Climate Change
• Rise in Earth Average temperature
• Rise in sea level – Melting of Glaciers

28. Climate Change- Global Warming
• Drought
• Floods
• Storms
• Forest fires
• Diseases

29. Gaseous Emissions
• Air Pollution (Emission of PM, SOx, NOx, CO etc
• Acid rain
• Health Impacts
• Loss of Agriculture

30. Water Consumption
Table 3: Water Consumption in TPP in India
Water Usage in Coal Power Plant
Cubic meter
per MW
Cooling Tower make-up water 1.50
Ash Handling 2.00
Drinking Water 0.32
Coal Handling 0.07
Demineralised Water 0.13
Fire Fighting 0.37
Others 0.66
Total
5.05
29,73
39,64
6,34
1,29
2,58
7,33
13,08
Cooling Tower
make-up water
Ash Handling
Drinking Water
Coal Handling
Demineralised
Water
Fire Fighting
Others

31. Ash Production
Coal Consumption for Electricity Production (MT) 564
Percentage of ash generation by coal combustion in power plant 34%
Ash generation by coal in power plant (MT) 191.76
Ash Utilisation in India 60%
Remaining Ash (MT) 76.704

32. Costs of Coal Power Generation

33. Cost Analysis
45%
55%
Cost of Coal Power
Generation
LCOE
External
0,02
16,11
0,03
2,73
0,13
0,62
70,48
2,06
7,82
Cost of Coal Power Generation
Cost of GHG Emission due to
Deforestation
Cost of Water Contamination
Cost of Land Degradation
Cost of Methane Emission by
mines
Cost of Fatalities, Morbidity &
Injuries in Coal Miners
Cost by Coal Transportation
Cost by Gaseous emission
Cost of water consumption
Cost of Mortality and
Morbidity
Main cause of External Costs is Gaseous Emissions & Water Consumption/contamination that impacts :
• Public Health
• Climate
• Agriculture Production

34. What is Grid Integration
• Connecting power generating unit to grid
• Supplying electricity to load through grid
• Maintaining and ensuring grid stability,
security and reliability.

35. Issues & Challenges in PV Grid Integration
• Variability and Uncertainty
• Grid Stability and protection
• Network related Problems and Congestion
• Location dependence and geographical sparse
• Inappropriate Govt. policies and market
mechanism.

36. Proposed Measures
• Strong grid interconnections.
• Flexible generation, Ancillary Services, Reserves etc. for
supply-balancing.
• Demand side management, demand response and storage
for load balancing.
• Forecasting of renewable generation and forecasting of
demand
• Establishment of Renewable Energy Management Centers
(REMC) equipped with advanced forecasting tools along
with reliable communication infrastructure

37. • Deployment of synchro-phasor technology i.e. PMUs/WAMS on pooling
stations and interconnection with centralized control centre through Fiber
Optic Communication for real time information, monitoring and control
• Capacity building at respective LDC/PCC/Conventional/Non-Conventional
Generator regarding RE handling
• Institutional Arrangements with defined roles & responsibilities of various
agencies/generation developer
• Technical Standard Requirements (Grid code, Connectivity standards, Real-
time monitoring etc.)
• Policy advocacy for development of power-balance market and pricing
mechanisms
Proposed Measures

38. I dia’s esti ated i stalled apa ity y 2022
Solar and Wind estimated installed capacity share by 2022
2002; 106
2016; 311
2022; 494
2000 2005 2010 2015 2020 2025
Estimated Installed Capacity at CAGR of 8%
2,56
8,90
88,54
20
12
68
Solar Wind Others
Solar & Wind Installed Capacity share based on
above estimates ( %)
2016 2022
• Not include Energy Efficiency Target of India.
• Wind and solar in 2022 will be 32% of total installed capacity.
• Solar in 2022 will generate 15% of total electricity generation.

39. Cost of Solar Power Generation

40. Conclusion & Recommendation
• It can be seen from estimated costs that coal power is lower than solar power
while many external cost factors are not considered due to unavailability of data
and limitations in quantization-monetization of some external factors.
• This study shows that with its external costs coal power is still comparable to solar
power and over time with technology and power market advancement and further
decrease in costs will eventually overtake coal as our main source of electricity.
• The results of the analysis provide strong evidence of the need to invest in
alternative (renewable) energy sources and energy efficiency, and for government
to support those investment initiatives.
Cost of Coal Power Generation Cost of Solar Power Generation
RS. 6.78 per KWh RS. 7.92 per KWh

41. Past and future trends in Coal and
solar power prices
• Source:- CIL Annual Reports, Indonesia Coal Prices References-HBA, KPMG i I dia’s a al sis, O to er 5.

42. References
• Epstein, R. Paul; Jonathan, J.B.; Full cost accounting for the life cycle of coal; Annals of the New York academy of sciences;
Ecological economics Reviews, 2011.
• Lingling Wang , Tsunemi Watanabe , and Zhiwei Xu; Monetization of External Costs Using Lifecycle Analysis—A Comparative
Case Study of Coal-Fired and Biomass Power Plants in Northeast China; Energies 2015, 8, 1440-1467.
• Project Report No. 2012IA06; Equitable sharing of benefits arising from coal mining and power generation among resource
rich states; The Energy and Resources Institute New Delhi; TERI, 2013.
• Report; Human cost of Coal; How coal-fired power plants threaten the health of Indonesians; Greenpeace, August 2015.
• Report Coal Kills-Health I pa ts of Air Pollutio fro I dia’s Coal Po er E pa sio ritte a d edited staff of
Conservation Action Trust (India) and Urban Emissions (India)
• Report Coal Kills A Assess e t of Death a d Disease aused I dia’s Dirtiest E erg “our e ritte a d edited staff
of Conservation Action Trust (India), Urban Emissions (India) and Greenpeace.
• A Report Tra s issio Pla for E isaged Re e a le Capa it Po er Grid Corporatio of I dia Ltd.; Jul ,
• Report Gree E erg Corridors for E a uatio of Gigawatts of RE Po er O.P. Nangai; Senior Consultant in Solar Energy,
Director at New Era Solar Solutions Pvt. Ltd, New Delhi; Akshya Urja; October 2015
• Annual report 2014-15; Central electricity authority, New Delhi; 2015
• Energy Statistics 2016; Ministry of statistics and programme implementation, New Delhi; 2016
• Report I dia’s ele tri it se tor tra sfor atio ; I stitute for e erg e o o i s & fi a ial a al sis; August 5.
• Report of the expert group on 175 GW renewable energy by 2022, NITI Aayog, New Delhi; August 2015.
• Report Re e a le e erg i tegratio i po er grid IRENA.; Jul , 5

43. Nothing Personal, Business is Business and
Burning Coal is a good Business
Q
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44. THANK YOU