Fuel Cost Variance Analysis
Step 1 Estimating the GCV of Blended Coal
For the FY 09-10, Hon'ble Commission has approved the GCV and Coal Mix. The same has been used to identify the approved GCV
of blended coal. For computing actual GCV of coal blend, actual coal mix and acual GCV is considered.
For FY 10-11, in absence of any coal mix approved by the Hon'ble Commission, the actual coal mix and approved GCV of coal is
used to determine the approved GCV of blended coal. For computing actual GCV of coal blend, actual coal mix and acual GCV is
considered.
GCV of Blended Coal = GCV of Individual Coal X % usage of Individual Coal
This step results into GCV of Blended Coal as approved by Hon'ble Commission and Actual used at DTPS
Step 2 Estimating the Specific Consumption
Specific Oil Consumption approved is 2 ml/kWh for both years and actual is 0.1406ml/kWh and 0.1350ml/kWh for FY 09-10 and FY
10-11 respectively.
The next step followed is to determine the Specific Fuel Consumption for Coal basket, which can be determined by segregation of
Heat Contribution of Oil (kCal/kWh) from approved and actual SHR of DTPS
Specific Consumption of Coal = (Station Heat Rate - Heat Contribution of Oil) / GCV of Coal Basket as determined in Step 1
Step 3 Estimating the Quantum and Rate of Coal and Oil basket
In absence of any quantum approved by the Hon'ble Commission, RInfra-G estimated the quantum and rate of blended coal for
approved and actual details of DTPS.
Quantum for fuel basket of coal and oil is individually determined for the corresponding gross generation for both approved and
actual details.
Quantum of Blended Coal basket (Approved) = Specific coal Consumption as determined in Step 2 X Gross Generation
(approved)
Rate for the oil basket is considered as approved and actual as per accounts normalised with specific gravity (0.88) as the rates
approved by the Hon'ble Commission is in Rs/MT
Rate for the coal basket is determined using the approved fuel cost minus the fuel cost pertaining to oil (considering the approved
rate by Hon'ble Commission)
Rate of Blended Coal at Gross Generation (Approved) = Approved Fuel Cost - Fuel Cost of Oil at normative rate and
consumption for gross generation approved
Step 4 Fuel Variance Analysis
In this step fuel cost variance for coal and oil basket is calculated
Quantum Variance = (Quantum Approved - Quantum Actual) X Actual Rate of Fuel Basket
Rate Variance = (Rate Approved - Rate Actual) X Approved Quantum of Fuel Basket
Total Variance = Quantum Variance + Rate Variance
FY 2009-10 FY 2010-11
Actual Normative Actual Normative
Normative Normative
Particulars Units Parameters Parameters Parameters Parameters
Parameters and Parameters and
and Actual and Actual and Actual and Actual
Normative Price Normative Price
Price Price Price Price
Operational Parameters
Total Capacity MW 500 500 500 500 500 500
Availability % 97.18% 94.25% 94.25% 96.48% 95.89% 95.89%
PLF % 103.33% 103.33% 99.08% 102.23% 102.23% 95.89%
Gross Generation MU 4481.89 4481.89 4339.79 4423.66 4423.66 4200.00
Auxiliary Energy Consumption % 7.60% 8.50% 8.50% 7.38% 8.50% 8.50%
Auxiliary Energy Consumption Normal MU 340.68 384.70 368.88 326.44 380.62 357.00
Auxiliary Energy Consumption FGD MU 55.909 56 56 55.78 56 57
MU 396.589 440.61 424.79 382.22 436.40 414.00
Total Auxiliary Consumption
% 8.85% 9.83% 9.79% 8.64% 9.75% 9.86%
Net Generation MU 4085.30 4085.30 3915.00 4041.44 4041.44 3786.00
Heat Rate kcal/kWh 2288 2500 2500 2282 2500 2500
Fuel Parameters (for each primary and
secondary fuel)
Calorific Value
Washed Coal kcal/kg 3689.41 3689.41 3657 3467 3467.16 3356
F Grade Coal kcal/kg 3104.02 3104.02 3502 2860 2859.66 0
Imported Coal kcal/kg 4738.53 4738.53 5061 4544 4544.10 4852
HFO - Heavy Furnace Oil kcal/kg 0.00 0.00 0 0 0.00 0
LDO - Light Diesel Oil kcal/kg 10776.73 10776.73 10588.64 10742 10741.83 10833.00
Landed Fuel Price per unit
Washed Coal Rs/MT 2516.39 2491.97 2409.00 2664.29 2632.06 2579.00
F Grade Coal Rs/MT 2312.91 2292.63 2009.07 2339.77 2329.87 2009.07
Imported Coal Rs/MT 3832.02 3850.53 4507.00 3430.24 3448.47 4852.00
HFO - Heavy Furnace Oil Rs/Kl 0 0.00 0 0 0 0
LDO - Light Diesel Oil Rs/Kl 37435.18 37435.18 37686 42525.35 42525.35 37435
Percent Washed coal in primary fuel
% 71.55% 71.55% 71.55% 54.0% 53.95% 53.95%
blend
Percent Raw (F Grade) coal in primary
% 4.43% 4.43% 4.43% 18.9% 18.95% 18.95%
fuel blend
Percent Imported coal in primary fuel
% 24.02% 24.02% 24.02% 27.1% 27.10% 27.10%
blend
Percent HFO in secondary fuel basket % 0.00% 0.00% 0.0% 0.00%
Percent LDO in secondary fuel basket % 100.00% 100.00% 100.00% 100.0% 100.00% 100.00%
FY 2009-10 FY 2010-11
Actual Normative Actual Normative
Normative Normative
Particulars Units Parameters Parameters Parameters Parameters
Parameters and Parameters and
and Actual and Actual and Actual and Actual
Normative Price Normative Price
Price Price Price Price
Fuel Consumption and Heat
Contribution (for each fuel separately)
Specific Fuel Consumption
Washed Coal kg/kWh 0.42 0.45 0.45 0.34 0.37 0.43
F Grade Coal kg/kWh 0.03 0.03 0.03 0.12 0.13 #DIV/0!
Imported Coal kg/kWh 0.23 0.15 0.15 1.05 0.18 0.22
Secondary Oil Consumption ml/kWh 0.14 2.00 2.00 0.13 2.00 2.00
HFO - Heavy Furnace Oil ml/kWh 0.00 0.00 0.00 0.00 0.00 0.00
LDO - Light Diesel Oil ml/kWh 0.1406 2.00 2.00 0.135 2.00 2.00
Total Fuel Consumption
Washed Coal MT 1872600.01 2031932.18 2137691.61 1493436 1646306.85 1800350.31
F Grade Coal MT 115910.02 125772.35 176455.55 524465 578149.80 0.00
Imported Coal MT 628720.68 682216.05 514977.49 750279 827079.19 636539.31
HFO - Heavy Furnace Oil kL 0.00 254
LDO - Light Diesel Oil kL 630.35 8963.78 8679.58 597 8847.32 8400.00
FY 2009-10 FY 2010-11
Actual Normative Actual Normative
Normative Normative
Particulars Units Parameters Parameters Parameters Parameters
Parameters and Parameters and
and Actual and Actual and Actual and Actual
Normative Price Normative Price
Price Price Price Price
Heat Rate Contribution (each fuel
separately)
Washed Coal kcal/ kWh 1541.49 1672.65 1628.27 1155.31 1273.57 1437.33
F Grade Coal kcal/ kWh 80.28 87.11 96.51 334.63 368.89 0.00
Imported Coal kcal/ kWh 664.72 721.28 756.57 760.69 838.56 1043.98
HFO - Heavy Furnace Oil kcal/ kWh 0.00 0.00 0.00 0.00 0.00 0.00
LDO - Light Diesel Oil kcal/ kWh 1.33 18.97 18.64 1.28 18.98 18.70
Total Heat Content kcal/ kWh 2288 2500.00 2500.00 2252 2500.00 2500.00
Total Fuel Cost
Washed Coal Rs Crore 471.22 506.35 514.97 397.89 433.32 464.31
F Grade Coal Rs Crore 26.81 28.83 35.45 122.71 134.70 0.00
Imported Coal Rs Crore 240.93 262.69 232.10 257.36 285.22 308.85
HFO - Heavy Furnace Oil Rs Crore 0.00 0.00 0.00 0.00 0.00 0.00
LDO - Light Diesel Oil Rs Crore 2.36 33.56 32.71 2.54 37.62 31.45
Total Fuel Cost Rs Crore 741.31 831.43 815.23 780.51 890.86 804.60
Cost of Generation per unit (at
Rs/kWh
Generation Terminal) 1.654 1.855 1.879 1.764 2.014 1.916
Energy Charge per unit (ex-bus) Rs/kWh 1.815 2.035 2.08 1.931 2.204 2.125
Approved Actual
FY 09-10
Quantum Rate Quantum Rate
Coal (MT) 2887433.90 2723.70 2768433.63 2669.2
LDO - Light Diesel Oil (KL) 8678 33163.7 630.35 37435.2
Specific Fuel Consumption (kg/kWh) Approved Actual
Coal 0.67 0.58
LDO - Light Diesel Oil 2.00 0.1406
GCV (assuming constant blend
Approved Actual
kCal/kWh)
Coal 3728.8 3915.5
LDO - Light Diesel Oil 10588.64 10776.73
Coal Mix Approved Actual
Washed Coal 67.16% 71.55%
F Grade Coal 24.97% 4.43%
Imported Coal 7.87% 24.02%
LDO - Light Diesel Oil 100% 100.00%
Fuel Variance Quantum Rate Total
Coal -31.76 -15.73 -47.50
Oil -30.13 3.71 -26.42
Total -73.92
Approved Actual
FY 10-11
Quantum Rate Quantum Rate
Coal (MT) 3334187.42 2330.25 2768179.89 2810.4
LDO - Light Diesel Oil (KL) 8400 32942.8 597.03 42525.3
Specific Fuel Consumption (kg/kWh) Approved Actual
Coal 0.79 0.626
LDO - Light Diesel Oil 2.00 0.135
GCV (assuming constant blend
Approved Actual
kCal/kWh)
Coal 3125.6 3644.0
LDO - Light Diesel Oil 10833.00 10741.83
Coal Mix Approved Actual
Washed Coal 53.95% 53.95%
F Grade Coal 18.95% 18.95%
Imported Coal 27.10% 27.10%
LDO - Light Diesel Oil 100.00% 100.00%
Fuel Variance Quantum Rate Total
Coal -159.07 160.09 1.02
Oil -33.18 8.05 -25.13
Total -24.11