subject: Significance Of Gross Calorific Value Based Pricing Mechanism And The Future Of Coal Based Power Gen [print this page] Very recently many coal companies has switched to gross calorific value bases pricing mechanism. Although, in many countries this pricing mechanism is prevalent, but still there was a strong opposition to it from many industries. The heads and think tanks of various coal based industries are assuming that switching to gross calorific value based pricing would seriously affect their interests. However, such assumptions are completely wrong. Even the Indian coal minister assured the industrial heads that switching to this newer pricing mechanism would help the coal companies divide the coal into various grades. In this manner, no one has to pay a higher sum for poor quality coal. These arrangements would significantly benefit the power industry, and they can significantly reduce their overall expenditure on coal.
What is the Future of Coal Based Power Industry
In current times, there is a tremendous pressure on developed, developing and emerging economies, to reduce their overall economies. To reduce their carbon emission, a significant number of these countries are spending a huge amount of money on the renewable energy based power generation techniques. However, even after spending a huge amount of money on this form of power generation, no significant results have surfaced. Not only power generating organizations, but a significant number of scientists, scholars, and research institutes are also working in this regard. Still, the results that have been delivered are not what was expected. Even after spending a huge sum to leave coal based power generation and switch over to renewable energy based power generation. It is due to being in such a situation, that the think tanks are advocating the use of more efficient and effective coal based power generating technique.
Why Coal Based Power Generation Technique is So Much Beneficial
Completely switching to renewable energy based power generation mechanism is not only quite expensive, but also the efficiency of those techniques have been tested in real time situations. Whereas, the high efficiency coal based power generation technique, is currently present and is being successfully used in many countries. This power generation technique is not only quite efficient, but they also release least amount of carbon, resulting in doing less damage to the environment. Apart from that, there is no shortage of coal in the whole world. There is an also minimum fluctuation in Indian coal prices, imported coal prices and Indonesian coal prices. Introduction of gross calorific value (GCV)-based pricing mechanism has also made purchasing high quality coal a much easier task.
