OPTIMAL COAL LINKAGES FOR THERMAL POWER PLANTS Aditya Maini (WMP7006) Ankur Bansal (WMP7013) Akshay Mathur (WMP7008) Arun Kumar (WMP7014) Aditya Shankar (WMP7007) Ashish Kumar (WMP7015) Amit Srivastava (WMP7011)

IIM Lucknow Noida Campus WMP(2011-14)

Power Generation Scenario in Indian Context

65%

22%

13%

Power Production Sources

Thermal HydroRenewable & Nuclear

Installed capacity Thousand MW Percentage

Thermal 109 65.3

Hydro 37 22.1

Renewable & Nuclear 21 12.6

Total 167 100

India has a total installed capacity of 167,000 MW as of Jan 2010.

109,000 MW is in Thermal Sector.

90,000 MW is coal fired.

About 54% of power generated in India is Coal powered.

Installed Coal-based Power plant capacity in India

Total Capacity is 90,000 MW

Assuming: 5000 tons of coal is required for 1 MW of installed capacity.

Maharashtra

Jharkhand

Gujarat

Uttar Pradesh

Andhra Pradesh

West Bengal

Tamil Nadu

Punjab

Rajasthan

Delhi - Haryana

Karnataka

Bihar

Orissa

TOTAL

0%20%

40%60%

80%100%

120%

26%

11%

10%

10%

8%

8%

7%

5%

5%

4%

4%

1%

1%

100%

Percentage of Installed capacity

Maharashtra

Jharkhand

Gujarat

Uttar Pradesh

Andhra Pradesh

West Bengal

Tamil Nadu

Punjab

Rajasthan

Delhi - Haryana

Karnataka

Bihar

Orissa

TOTAL

0 50000 100000

23400

9900

9000

9000

7200

7200

6300

4500

4500

3600

3600

900

900

90000

Power capacity installed MW

Maharashtra

Jharkhand

Gujarat

Uttar Pradesh

Andhra Pradesh

West Bengal

Tamil Nadu

Punjab

Rajasthan

Delhi - Haryana

Karnataka

Bihar

Orissa

TOTAL

0 100 200 300 400 500

117

49.5

45

45

36

36

31.5

22.5

22.5

18

18

4.5

4.5

450

Annual requirement of COAL in Million Tons

Coal Sources: Production & Import

Coal India SCCL Captive Imported0

50

100

150

200

250

300

350

400

450

400

5065

36

COAL is imported from Australia and New Zealand mainly through Paradeep port in Orissa and Ennore Port in Tamil Nadu.

Coal Production Million TonsCOAL INDIA 400 SECL 96MCL 80NCL 60WCL 52CCL 48ECL 36BCCL 28Other SourcesSCCL 50Imported Coal 36Captive mines (TISCO, IISCO etc.)

65

TOTAL 551

SECL MCL NCL WCL CCL ECL BCCL 0

20

40

60

80

100

120

96

80

60 52

4836

28

Annual Coal Production in MT

COAL INDIA - Annual Coal Production Summary

Total annual coal production handled by Coal India is 400 Million Tons

BCCL mines in Dhanbad, Jharkhand, produces only cooking coal for steel plants. The cooking coal mined by BCCL is not used in coal-fired thermal power plants.

BCCL is not used in coal-fired

thermal plant.

Coal Fields Locations

Eastern Coal Fields ECL WB and Jharkhand

Central Coal Fields CCL Jharkhand and Madhya pradesh

Bharat Coking Coal BCCL Jharkhand

Mahanadi Coal Fields MCL Eastern Orissa

Western Coal Fields WCLWestern Maharashtra and Madhya Pradesh

South Eastern Coal Fields SECL Chattisgargh and Madhya Pradesh

Northern Coal Fields NCL Madhya Pradesh and Uttar Pradesh

Singareni Collieries SCCL Andhra Pradesh

Geographic Distribution of Coal Fields in India

Defining and Modeling of the Problem

Government has a formed a Coal Linkage Committee for coal allocation to each Power plant – Ministry of Coal, Power, Steel, Shipping, Railways and all stake holders are involved - Meets twice every year - to decide on Coal linkage to all Major Coal Consumers of the Country.

Based on the kind of Coal Grade, Constraints and other special requirements, the Committee Aims to make a linkage which can help Railways /transporters to transport Coal at Minimum possible Cost.

This is a typical Transportation Problem where Linear programming helps the decision makers to formulate cost effective Coal Linkages.

DISTANCE MATRIX of Supply and Demand points along with demand and Supply

Average distance in Kms. has been taken from power plants in a state to the mines.

Its an unbalanced Transportation model problem. So dummy variable needs to be added.

Coal Mines: Supply Points

Power Plants: Demand Points

Transport Problem

The problem now is to transport from 9 coal supply points to 13 demand points at the Thermal Power House.

The Transportation Model

We assume that the transportation cost is proportional to the distance and number of units shipped on a given route.

The transportation model is a special class of LPP’s that deals with transporting a commodity from sources to destinations, the objective is to determine the transportation schedule that minimizes the total costs while satisfying supply and demand limits.

Thus the problem becomes the LPP

n

jijij

m

i

xdz11

Minimize

subject to0ijx

ijij dc As cost is linearly dep on distance

n

jijij

m

i

xdz11

)13,...,2,1(

)9,...,2,1(

1

1

jbx

iax

j

m

iij

i

n

jij

Sources are 9 including imported coal and destinations are 13 so m=9 and n= 13

Is the quantity of coal transported from ith supply point to jth demand point

c11 c12 c1n a1

c21 c22 c2n a2

cm1 cm2 cmn am

b1 b2 bn

Source

1

2

.

.

m

Destination 1 2 . . n Supply

Demand

Thus there are mn decision variables xij and m+n constraints. Since the sum of the first m constraints does not equals the sum of the last n constraints because the problem is not a balanced one.

Other Restrictions in the problem are

• Orissa power plants are supplied only with imported coal from Paradeep port in Orissa

•Tamil Nadu power plants are supplied only by imported coal from Ennore port in Tamil Nadu

•BCL Coal cannot be used for Power Plants

Other aspects of the issue

As the demand of Tamil Nadu Power plants is 31.5MT and of Orissa is 4.5MT, which can directly be supplied by Ennore Port and Paradeep port respectively.

Now the Problem reduces to a transportation problem of 7x11 matrix because of the extra restrictions.

Impact of Constraints

There are three standard methods. For Feasible Solution:North West Corner RuleVogel’s Approximation Method (VAM)Russel’s Approximation method (Least Cost Method)

For Optimal Solution:Modified Distribution MethodStepping Solution Method

Since the decision variables are large it was difficult to apply the above methods manually and Solver Package in Excel was used to solve the problem.

Solution of the Coal linkage problem using Solver

OBJECTIVE FUNCTIONFrom MCL Mine we are taking only 72 but its capacity is

80.

OPTIMAL SOLUTION OF THE COAL LINKAGE PROBLEM

Delhi-Haryana

Punjab Rajasthan Ut-tarPradesh

Gujrat Maharash-tra

Andhra Pradesh

Karnatka Bihar Jharkhand WesT Ben-gal

Orissa Tamilnadu

ECL 0 17 0 0 0 0 0 0 0 6 13 0 0

CCL 0 0 0 0 0 0 0 0 4.5 43.5 0 0 0

MCL 0 0 0 0 45 0 0 4 0 0 23 0 0

WCL 0 0 0 0 0 52 0 0 0 0 0 0 0

SECL 3 5.5 22.5 0 0 65 0 0 0 0 0 0 0

NCL 15 0 0 45 0 0 0 0 0 0 0 0 0

SCCL 0 0 0 0 0 0 36 14 0 0 0 0 0

Imported Coal

0 0 0 0 0 0 0 0 0 0 0 4.5 31.5

10

30

50

70

90

110

130

Dem

and

(Req

uire

d)

Other Major Constraint is Network Capacity

Path OCET or O A D T or O B E T

O

A

B

C

D

E

T

Discussions

MCL is left with annual 8Million Ton of spare capacity

The other bigger problem now will be the Network Optimization problem - not covered in QAM-1

Total of 2.5 Lac trips of trains are required annually for transporting coal to power plants which is about 685 trains per day exclusively

There is a network constraint of railways for carrying coal on the desired shortest routes and hence as per spare capacity some re-routing is done as per spare line capacity.

The Final Coal Linkage drawn also considers other micro details of network Optimization Constraints and also other constraints of production, environment clearances and many other demand and supply factors but the broad solution is a good starting model which can further be improved.

Thank You

Questions?

Aditya Maini (WMP7006)Aditya Shankar (WMP7007)Akshay Mathur (WMP7008) Amit Srivastava (WMP7011)Ankur Bansal (WMP7013)Arun Kumar (WMP7014)Ashish Kumar (WMP7015)