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Independent power producers will build a substantial fraction of expected new coal-fired power generation in developing countries over the coming decades. To reduce perceived risk and obtain financing for their projects, they are currently building and plan to continue to build subcritical coal-fired plants with generating efficiency below 40%. Up-to-date engineering assessment leads to the conclusion that supercritical generating technology, capable of efficiencies of up to 45%, can produce electricity at a lower total cost than conventional plants. If such plants were built in Asia over the coming decades, the savings in carbon dioxide emissions over their lifetime would be measured in billions of tons. IPPs perceive supercritical technology as riskier and higher cost than conventional technology. The truth needs to be confirmed by discussions with additional experienced power engineering companies. Better communication among the interested parties could help to overcome the IPP perception issue. Governments working together with industry might be able to identify creative financing arrangements which can encourage the use of more efficient pulverised clean coal technologies, while awaiting the commercialisation of advanced clean-coal technologies like gasification combined cycle and pressurised fluidised bed combustion.

Industry perspectives on increasing the efficiency of coal-fired power generation