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Calorific value, or heating value, determines the economics of power plant operation. It indicates the amount of heat that is released when the coal is burned.
The heating value determines how much fuel is required in a power plant.
Higher the calorific value lesser the amount of the coal required per unit of electricity. Though higher calorific value also means the higher cost, it is made up by the lower cost of logistics, storage and ash disposal.
Importantly, boilers too are designed for operating within a range for which power generators blend coal. A 3,500 cal/kg costs about $45 a tonne, while 6,100 kcal/kg would be about $120.
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