RENEWCONNECT - All about renewables & power sector

1. What an FSA Coal Price Represents An FSA is a long-term contractual arrangement (typically with Coal India Limited or its subsidiaries) that defines: Quantity assurance (% of normative requirement) Price determination mechanism Grade specifications Price revision frequency Escalation and pass-through rules In consulting and financial modeling, the FSA coal price is treated as the baseline domestic fuel cost and is considered relatively lower-risk compared to spot or imported coal. 2. Price Structure Under an FSA (India) The effective landed coal price under an FSA is modeled as: Base Notified Price (₹/tonne) Grade/Quality Adjustments Statutory Levies (royalty, DMF, NMET, GST compensation cess, etc.) Evacuation and Transportation (rail / road / MGR) = Delivered Fuel Cost to Plant Key points: Coal India notified prices are revised periodically (not market-linked like imported coal). Government levies and freight form a material portion (often 40–55%) of delivered cost. Price vo...

Introduction Coal-based thermal power plants (TPPs) remain a cornerstone of electricity generation in India and many other countries. Despite the global push toward renewables, coal continues to account for over 50% of India’s installed capacity. However, one of the persistent challenges in coal-fired TPPs is  Auxiliary Power Consumption (APC) , the energy consumed by internal systems to keep the plant operational. Typically ranging from 7% to 10% of gross generation, high APC directly impacts the net power available for sale and, consequently, the tariff. Reducing APC is not only a technical necessity but also a strategic imperative to improve plant economics, reduce emissions, and remain competitive in the evolving energy market. Understanding Auxiliary Power Consumption Auxiliary power refers to the electricity consumed by various subsystems within the plant, including: Boiler Feed Pumps (BFP) Induced Draft (ID) Fans Forced Draft (FD) Fans Primary Air...