Delivered Coal Price Calculation (DCPC) Model – an excel model

December 20th, 2017 No Comments   Posted in coal pricing formula

Delivered Coal Price Calculation (DCPC) Model – an excel model

A logical extension to the oil pump price calculation (OPPC) model is the delivered coal price calculation (DCPC) model developed again by Marcial Ocampo.

The need for such calculation model is to enable the user of the DCPC model to estimate the impact of the revised excise tax on coal (local and imported) which is levied currently at PHP 10.00 per metric ton (MT), and will be progressively increased to PHP 50, then 150 and finally 300 per MT under the new tax reform law (TRAIN) recently passed by both houses of Congress and Senate and signed into law by President DU30.

The excel model was developed by Marcial from his DOE and power industry experience and his excel modeling expertise in doing oil, coal, gas, geothermal, hydro, renewable energy pricing calculations and project finance modeling.

Once the model determines the delivered price of coal, this coal price is then used in the project finance model for a coal-fired power plant using various technologies such as traditional sub-critical pulverized coal (PC) and the cleaner coal technologies such as circulating fluidized bed (CFB), integrated gasification and combined cycle (IGCC). As boiler steam pressure has been raised to increase thermal efficiency, the use of super-critical and ultra-super-critical steam generation technologies have further raised the thermal efficiency of pulverized coal, CFB and IGCC technologies.

Since the excise tax is levied on a metric ton of coal (which includes the pure coal and attendant moisture (water) and ash), the use of local coal with lower heat content (BTU) and higher moisture and ash content as compared with imported coal with higher heat content and lower moisture and ash content will invariably raise the cost of generated electricity because of the effect of lower heat content and lower thermal efficiency when using low BTU coals.

The DCPC model is developed as follows:

Imported Coal Cost:

Description:                                          Indonesian / Baramulti Steam Coal

Tonnage:                                                  22,468.60 MT

Bill of Lading / Airway Bill No.:          113/BM/BJM-PHIL/VIII/2004

Estimated / Actual Date of Arrival:     9/20/2004

Port of Entry:                                      BCFTPP Port


FOB Value = FOB$ = 60.00 $/MT * 22,468.60 MT = 1,348,116.58 USD

Freight = FRT$ = 15.00 $/MT * 22,468.60 MT = 337,029.15 USD

Insurance = INS$ = 0.50% of FOB = 0.50% * 1,348,116.58 = 6,740.58 USD

Other Charges = OTH$ = 0.00 USD

Dutiable Value in US$ = FOB$ + FRT$ + INS$ + OTH$ = 1,691,886.31 USD

Dutiable Value in PHP = 1,691,886.31 USD * 50.00 PHP/USD = 84,594,315.53 PHP

Customs Duty = 84,594,315.53 PHP * 3.00% = 2,537,829.47 PHP


Dutiable Value (DV) = 84,594,315.53 PHP

Bank Charges (BC) =  0.0585% of Dutiable Value = 49,487.67 PHP

Customs Duty (CD) = 2,537,829.47 PHP

Brokerage Fee (BF) = 0.1408% of Dutiable Value = 124,127.20 PHP

Arrastre Charges (AC) = 66.00 PHP/MT * 22,468.60 MT = 1,482,928.24 PHP

Wharfage Fee (WF) =  40.00 PHP/MT * 22,468.60 MT =  898,744.39 PHP

Customs Docs Stamps (CDS) = 2,120.00 PHP

Import Processing Fee (IPF) = 8,000.00 PHP

Excise Tax (ET) = 10.00 PHP/MT * 22,468.60 MT = 224,686.10 PHP


=  89,922,238.59 PHP

VALUE ADDED TAX (VAT) = 12% of LC = 12% * 89,922,238.59 PHP

= 10,790,668.63 PHP

Tax Paid Landed Cost (TPLC) = 89,922,238.59 PHP+ 10,790,668.63 PHP

100,712,907.22 PHP

TPLC (PHP/MT) = 100,712,907.22 PHP / 22,468.60 MT = 4,482.38 PHP/MT

TPLC (USD/MT) = 4,482.38 PHP/MT / 50.00 PHP/MT = 89.65 USD/MT


Customs Duty (CD) = 2,537,829.47 PHP

Excise Tax (ET) = 224,686.10 PHP

Customs Docs Stamps (CDS) = 2,120.00 PHP

Import Processing Fee (IPF) = 8,000.00 PHP

TOTAL DUTIES & TAXES =  CD + ET + CDS + IPF = 2,772,635.56 PHP

Delivered Price of Coal = 4,482.38 PHP/MT = 89.65 USD/MT

The next step is to correct for variance with agreed heating value, moisture, ash and other important parameters that will affect the coal-fired power generating plant. These price adjustments are included in the coal supply contract to adjust the delivered price of coal and convert it into a PARITY PRICE of a reference coal of given heating value, moisture, ash and other important specs.

You may download the delivered coal price calculation (DPCC) model by clicking this link:

Coal Parity Pricing and Specifications


Since the excise tax is levied on the weight of the whole coal irrespective of its heating value or energy content and other specs such as moisture and ash, the revised excise tax which will reach a maximum rate of 300 PHP/MT will be highly punitive of lower rank coal such as lignite (low BTU, high moisture, high ash) and sub-bituminous coals with moderate BTU, moisture and ash compared to imported coal.

The resulting impact on the price of generated electricity from lower quality domestic coal will be significant compared to that of the better quality imported coal (higher BTU, low moisture, low ash).

Further, using lower quality domestic coal also has a further disadvantage as it has lower thermal efficiency because of its lower heat content and higher moisture and ash, which magnifies further the impact.

The next step is to run the project finance models for each technology (PC, CFB, IGCC using sub-critical, super-critical and ultra-super-critical pressures) to determine the cost of electricity to achieve a given desired equity or project returns (IRR, NPV, PAYBACK).

By comparing the base scenario of existing price of coal with current excise tax rate of 10.00 PHP/MT with the proposed coal tax of 50, 150 and 300 PHP/MT, we can predict the electricity price increase impact for each of the coal-fired power generation technologies currently in use and proposed in the future, and arrive at the average grid price due to higher coal-generated electricity price, and thus the over-all electricity price impact of the excise tax adjustment on domestic and imported coal supplies.

You may run the demo models for subcritical PC, CFB, IGCC and higher pressures (supercritical, ultra-super-critical):

ADV Coal-Fired CFB Thermal Model3_50 MW – demo5b

ADV Coal-Fired CFB Thermal Model3_135 MW – demo5b

ADV Coal-Fired PC Subcritical Thermal Model3 – demo5b

ADV Coal-Fired PC Supercritical Thermal Model3 – demo5b

ADV Coal-Fired PC Ultrasupercritical Thermal Model3 – demo5b

Email me:


Coal-Fired Power Plant: How to Design and Calculate Plant Footprint, Fuel, Limestone, Hauling Trucks and Storage Areas for Coal and Ash

May 16th, 2014 No Comments   Posted in clean coal technologies

Coal-Fired Power Plant: How to Design and Calculate Plant Footprint, Fuel, Limestone, Hauling Trucks and Storage Areas for Coal and Ash

Yes, your favourite energy technology expert has prepared a simple but easy-to-use power plant model to augment your project finance model to calculate the following:

1) Coal quality and quantity of coal reserves (measured, indicative, inferred, total in-situ reserves)

2) Average specification of coal reserve (heating value, ash, volatile combustible matter, fixed carbon, sulfur, moisture)

3) Ultimate analysis of coal reserve (Carbon, Hydrogen, Nitrogen, Oxygen, Sulfur) More »

Get Your Energy Technology Articles the Easy Way – Shopping Cart

June 19th, 2012 No Comments   Posted in energy technology expert

Get Your Energy Technology Articles the Easy Way – Shopping Cart

You can now order on-line your energy technology articles the easy way – via the Shopping Cart.

Once you have decided to purchase, proceed to order via the shopping cart and pay thru PayPal thru your bank account or your credit card and download immediately the models. More »

Coal-Fired Power Power Plant Model (Pulverized, CFB, IGCC)

August 8th, 2011 5 Comments   Posted in cost of power generation

Coal-Fired Power Power Plant Model (Pulverized, CFB, IGCC)

Japan recently announced that it intends to wean away from Nuclear Power. So in the meantime, it has to rely on diesel gensets, oil thermal, coal thermal and combined cycle gas turbines firing oil and natural gas or LNG. This model will help you determine the economic feasibility and the first year tariff to meet equity returns as well as project returns including payback period of a coal-fired power plants (pulverized, CFB, IGCC) and compare with conventional (oil, gas, natural gas, hydro, geothermal) and renewable technologies (biomass, solar, wind, mini-hydro, ocean thermal energy conversion). More »

New Simplified Calculation Procedure for Levelized Cost of Energy (LCOE) and Feed-in Tariff

July 28th, 2010 3 Comments   Posted in cost of power generation

New Simplified Calculation Procedure for Levelized Cost of Energy (LCOE) and Feed-in Tariff

As part of the on-going technical preparations for the proposed mini-conference on the Mindanao Power Crisis this coming late August or early September 2010 and the main conference on “Energy & Climate Change”, the workshop coordinator, Mr. Marcial T. Ocampo, has prepared the simplified calculation procedure for calculating the levelized cost of energy (LCOE) and levelized selling price (tariff) for conventional and renewable energy resources.

The result of the simplified formulas using the US NREL formula for generation cost and the RP MTO formula for selling price were compared with the results from a full-blown project finance model and the variance between the two methods were minimal in most of the power generation technologies analyzed.

The input data came from the IEPR research summary of 2007 and from internationally published data on power generation technology by noted experts such as Paul Breeze and yours truly, Marcial Ocampo. More »

Pulverized Coal

The file (1.59 MB) will cover the following topics:


Coal is formed from plants by chemical and geological processes which occur over million of years.

First product of this process was peat (partially decomposed stems, twigs, bark), then transformed into lignite, bituminous, then anthracite.

Coal is the largest source of energy for power and other uses:

Primary Energy Electricity

World: 23%                        40%

US: 55%

Philippines: 13%                        38%

Topics – Traditional Coal Thermal

  • Coal Resource : Reserves, Extraction Rate, Life Time
  • Types of Coal and Reserves
  • Properties of Coal, Coal-Mixtures and Classification by Rank
  • Examples of Pulverized Coal Boilers & Plants
  • Basic Principle of Pulverized Coal Thermal Plant
  • Coal Mining, Preparation, Transport, Storage, Pulverization & Firing
  • Pollution Control Technologies in Coal Plants
  • Emissions from Coal-Fired Plants
  • Cost of Coal-Fired Plants and Treatment (Capital, O&M, Levelized)
  • Coal Plants in the Philippines
  • Applicability, Advantages, Disadvantages
  • Environmental Impact & Risks

Price: 64 USD