CO-GENERATION - AN INDIAN MODEL VINAY KUMAR MANAGING DIRECTOR 4/8/2015 1 OUTLINE OF PRESENTATION •Co-generation •Indian Energy Scenario •Renewable Energy Development •Power Generation from Renewal source of Fuel •Power generation from Bagasse in sugar industry 4/8/2015 2 CO-GENERATION Co-generation in simple terms is defined as a process of using single fuel to produce two forms of energy i.e. •Thermal energy - for process •Electrical energy- for utilities 4/8/2015 3 NEED FOR CO-GENERATION Power is the basic need for any activity. The growth of economy calls for commensurate growth in the infrastructure facilities. India is facing a very significant power deficit today to- the tune of 20,000 MW (18% of peak deficit). Besides the above, it is estimated that requirement of fossil fuel shall be as under :•450 million tonnes of coal •94 million tonnes of oil Most of this energy consists of non-renewable sources and thereby in effect unsustainable. 4/8/2015 4 BENEFITS OF CO-GENERATION For the End-users/Co-generators: • Additional income from selling surplus electricity • Additional income from selling CHG a) Certified Emission Reduction (CER) b) Increasing security for clean energy supply 4/8/2015 5 For the Power utility & National Economy • Saving primary energy consumption • Reducing transmission and distribution losses • Less burden on Government for power generation investment • Less environmental pollution 4/8/2015 6 INDIAN ENERGY SCENARIO • Total population - 1.18 billion • Rural population - 0.7 billion • Total number of villages - 640,000 • Number of un-electrified villages- 125,000 4/8/2015 7 INSTALLED POWER SCENARIO • TOTAL INSTALLED CAPACITY : 1,48,265 MW • GROSS GENERATION : 640 billion units • PER CAPITA CONSUMPTION : 620 kWh/ annum • ENERGY SHORTAGE : about 8% • PEAK SHORTAGE : about 18 % 4/8/2015 8 POWER GROWTH PERSPECTIVE * Electricity demand growing @ 8% annually * Capacity addition of about 92,000 MW required in the next 10 years * Challenge to meet the energy needs in a sustainable manner 4/8/2015 9 THE CHALLENGE & VISION * India is facing formidable challenges in meetings its energy needs and providing adequate energy of desired quality in a sustainable manner and at a reasonable costs. * To meet the above challenge, Government of India took the decision to develop 10% power from renewable source by 2012. * The Government vision is to provide power to all citizens. 4/8/2015 10 RENEWABLE ENERGY IN INDIA - POTENTIAL Wind Power - 48000 MW Small Hydro - 15000 MW Biomass Power - 16000 MW Bagasse Cogen - 5000 MW Solar Energy - 20 MW/Sq Km Waste to Energy - 2500 MW 4/8/2015 11 BIOMASS TYPES OF BIOMASS WHICH CAN BE USED • Agricultural Field Residues • Agro Industrial Residues • Bagasse • Wood from plantation • Waste wood from industrial operations 4/8/2015 12 CONVERSION TECHNOLOGIES Biomass Technologies Currently Deployed • Combustion • Gasification Cogeneration • Bagasse cogeneration in sugar mills • Non-bagasse cogeneration in other industries 4/8/2015 13 STATE WISE POTENTIAL OF CO-GENERATION IN SUGAR INDUSTRY Sl.No Name of State Potential to export of power in MW 1. Uttar Pradesh & Uttarakhand 1250 2. Haryana 350 3. Punjab 300 4. Andhra Pradesh 300 5. Tamil Nadu 450 6. Karnataka 450 7. Maharashtra 1250 8. Bihar 300 9. Gujarat 350 All India Total 5000 4/8/2015 14 0 4/8/2015 State 450 Karnataka 350 Gujarat 1250 5000 5000 All India 300 Bihar Maharashtra 450 300 Andhra Pradesh Tamil Nadu 300 Punjab 500 350 1000 Haryana 1500 1250 2000 Uttar Pradesh & Uttarakhand 5500 4500 4000 3500 3000 2500 Potential to export of power MW) 15 STATE WISE STATUS OF CO-GENERATION State Number of units Total Co-generation (MW) Uttar Pradesh 57 1254.5 Punjab 3 41.0 Andhra Pradesh 13 195.0 Tamil Nadu 24 550.0 Karnataka 27 610.0 Maharashtra 21 416.5 Bihar 2 23.0 Total 147 3090.0 4/8/2015 16 4/8/2015 Number of Units All India Bihar Maharashtra Karnataka 610.00 550.00 416.50 147 2 23.00 21 27 24 13 195.00 1000 Tamil Nadu 500 Andhra Pradesh 1254.50 1500 3 41.00 57 2000 Punjab Uttar Pradesh 3090 3500 3000 2500 0 Total Co-geneation 17 PROMOTIONAL INCENTIVES FOR BIOMASS PROJECTS * Accelerated depreciation 80% in first year (boiler and turbine) * Income Tax holiday under section 80 1A for 10 years. * Concessional import duty, excise duty exemptions on equipments & components required for initial setting up of the project. * Sales tax exemption in some states. * IREDA provide loan for biomass power / cogeneration projects. 4/8/2015 18 * Preferential tariff in 14 states. * Ministry of Food provide concessional loan for Co-generation project @ 4% to the 40% of the project cost. * Ministry of New and Renewable Energy also grant capital subsidy @ 60 lacs per MW upto the maximum of 8 crores per project. 4/8/2015 19 INDIAN MODEL OF CO-GENERATION. 4/8/2015 20 A-CASE STUDY - EXISTING 5000 TCD SUGAR PLANT EQUIPMENTS:• Replacing / scrapping of the existing low pressure power plant which includes boilers, turbines and accessories after installation of efficient co-generation plant with high pressure 87 kg/cm2 boiler, turbine, switch yard, transmission line and other accessories. • Replacing the existing inefficient turbine drive for Mill replace with energy efficient VFD – A.C. motors. 4/8/2015 21 * Replacing of the existing inefficient turbines drives for fibrizer / shredder with H.T. motors after installation of Co-generation plant. 4/8/2015 22 INVESTMENT:S.No. Details of Equipments Cost (Rs.) in 1) 25 MW power plant with 120 TPH boiler of 87 : 1150.00 kg/cm.2 with cooling tower, Water Treatment Plant, switch yard, 132 KV line etc. 2) Replacement of mill drive turbine with AC : 20.00 VFD motors & transformers, cabling etc. 3) Replacement of fibrizer / shredder turbine : 10.00 drive with HT motors, starters & cabling etc. 4) Miscellaneous : 5.00 Total : 1185.00 Million Less : Scrap value of discarded equipments : 40.00 approx. Net : Total expenditure : Rs.1145.00 USD-25.50 million 4/8/2015 23 RETURN ON INVESTMENT:S.No. Description Units Value 1) Generation of power / tonne of cane with a KWH 154 condensing, extraction cum back pressure turbine (1 Tonne) 1000 kgs of cane x 32% bagasse x 2.4 steam generation / 5 kg steam / KWH 2) In house consumption per tonne of crush KWH 30 (30 KWH/ Tonne crush at peak capacity) 3) Exportable power per tonne of cane (154 – KWH 124 30) 4) Revenue earning per tonne of cane crush Rs. through power export @ Rs. 4.00 x 124 KWH 5) Revenue earning in one season of cane Rs crush through power export @ 4.00 x 124 x800000 Thus, the return on investment is less than 3 years. 4/8/2015 496.0 39.60 million i.e. USD-8.8 million 24 B-CASE STUDY NEW 5000 TCD SUGAE PLANT MAIN EQUIPMENTS AND THEIR COST:S.No Details of Equipments Cost in Million (Rs.) 1) Sugar Plant -5000 TCD : Rs. 330.00 2) Boiler-120 Tonne, 87 Kg/cm2g. : Rs. 120.00 3) T.G.Set-25 MW. : Rs. 130.00 4) Switch Yard & Electrical : Rs. 80.00 5) Miscellaneous : Rs. 40.00 Total : Rs. 700.00 USD-15.55 million 4/8/2015 25 RETURN ON INVESTMENT (Power Export):S.No. Description Units Value 1) Capacity : TCD 5000 2) Working days : days 160 3) Cane crush : lac Tons 8 4) Bagasse generation 32% on cane : lac Tons 2.56 5) Steam generation at a ratio of 2.4 : lac Tons 6.14 6) Power generation at a rate of 5 tons : steam / MWH MWH 1,22,800 7) In house consumption 30 KWH per : ton of crush MWH 24000 8) Exportable power (6-7) MWH 98800 9) Revenue earning @ Rs. 4000 / MWH : (Rs. 4.00/ KWH) Million Rs. 395.2 10) Earning in 3 season Rs. 395.2 x 3 Million Rs. 1185.6 4/8/2015 : : 26 EXECUTION OF TIME REQUIRED 1) Planning & Placement of order : 2 Months 2) Execution & Erection : 10 to 12 months Total : 12 to 14 months 4/8/2015 27 PERFORMANCE DATA Performance of the Haidergarh Chini Mills (a unit of Balrampur Chini Mills Ltd.) a 5000 TCD plant for 3 years is given below for reference purpose only. Sl.No. Particulars Years Total 2006-07 2007-08 2008-09 790000 472000 150000 1412000 71688 23250 294756 1) Cane crush (Tonnes) 2) Power (MWH) 3) Net exported power 87690 (MWH) 52392 18450 158532 4) Revenue earned @ 3.00 / KWH (Rs.) - - 4756 lacs million 5) Return on investment -< 3 years 4/8/2015 generated 121660 28 CONCLUSION • This is the appropriate time to plan for adoption of such technologies which can bring extra revenue to sugar mills. • Return on investment is normally 3-5 years depending upon selection of technology and sizing of equipment. • Selection of proper, size and addition of appropriate technology play a major role for maintaining higher plant load factor and higher efficiencies of the plant. • NFCSF provided consultancy services for around 20 sugar co-generation project from inception to commissioning. 4/8/2015 29 OVERALL VIEW OF POWER PLANT 4/8/2015 30 CONTROL ROOM 4/8/2015 31 VIEW OF BOILER 4/8/2015 32 VIEW OF ALTERNATOR 4/8/2015 33 VIEW OF COOLING TOWER 4/8/2015 34 VIEW OF SWITCH YARD 11kv/132 kv 4/8/2015 35 THANKS NATIONAL FEDERATION OF COOPERATIVE SUGAR FACTORIES LIMITED ‘ANSAL PLAZA’ BLOCK-C, 2ND FLOOR AUGUST KRANTI MARG, NEW DELHI-110049 (INDIA) Tel. : 26263425, 26263436, 26263696 Fax : 011-26263658, e-mail : nfcsf@spectranet.com 4/8/2015 36