We are a nation with a very short "attention span"! Only a few months back, the ECC had issued a directive to ensure that our precious gas was used in an efficient process (Combined Cycle Power Plants and Cogeneration).
Whether gas was required for power plants or for industrial process, it should have been normal to expect that only efficiency and economics would be the deciding factor.
The latest decisions on the fuel policy (news item, May 2) seem to be changing all that once again. It is reported that the "Government has decided not to provide gas to the cement sector in the future and to divert additional gas supplies from power stations after 2011".
Why are we changing once again to the good old days of the "golden goose" furnace oil import? Obviously a lot of people stand to make a lot of money with furnace oil import as was evident after the 1994, energy policy.
Natural gas is the fuel of choice everywhere in the world and we want to avoid this fuel and select the worst possible option - both economically and with the most serious pollution hazard! Also, since the fuel is very corrosive, the cost of major equipment is very high, with further loss through low efficiency. Why should we select a fuel, which is costly, and also increases the equipment cost considerably?
It is common knowledge that large combined cycle power plants, operating on clean fuel (natural gas, naphtha (kerosene), LPG) cost only $400-500 per kW capacity. The same power plant suitable for furnace oil or even LDO would cost nearly double and with lesser efficiency! And we still want to advocate power plants based on furnace oil since this fuel has a big margin to "negotiate" whereas gas fuel prices are fixed on country basis.
Energy conservation and high thermal efficiencies are the only options available to meet the energy crisis and we have to avoid wastage and high capital costs if we want to survive in this "energy-starved" competitive world!
We cannot afford to pay the international high prices of fuel and continue to adapt inefficient processes in expensive equipment. Are we going to realise this and take corrective action or face the economic collapse witnessed in many countries in South America?
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