SUNIL PARWANI
General Manager (Marketing)
Bharat Heavy Electricals Ltd.
New Delhi
17 TH India Power Summit on
‘Optimising Power Availability: Action Plan for
Next Decade’
India Energy Forum
November 14, 2014 at New Delhi

Power – The key driver for a Nation’s Economic Growth
Industry
Growth
Growth in Power
Generating
Capacity
GDP
Growth
• For the country to grow at accelerated rate, proportionate growth of Power Sector is necessitated
• With the govt.’s focus on
Manufacturing Sector as the driver of growth, Power Sector assumes high Importance
• Human Development Index
(HDI) found to be directly linked to per capita consumption
2

Magnified effect of increase in Energy Consumption on Human Development
USA
UK
Japan
Germany
China
India
Niger
 Human Development Index (HDI) found to be directly correlated to per capital electricity consumption
 For countries like India, lying at low level of development, even a small increase in electricity use is associated with large increase in HDI
Energy Consumption: Giga Joules per capita per year
Source: UNDP: Human Development Index, 2010
3

Fast Growth, but still substantial development needed in power sector
 10 th largest economy in the world by nominal GDP; 3 rd largest by GDP in PPP terms
 Second fastest growing economy
 Accounts for 4.1% of world’s energy consumption
 4 th largest energy consumer ; fast moving to reach 3 rd position by 2025

Energy demand in India will continue to grow rapidly over the next couple of decades due to:
 Rapid rate of growth
 High urbanization levels
 An aspiring and growing middle class and a generally modernizing society
4

Projections suggest a strong need to augment the capacity
 Power needs to be:
Projected Installed Capacity (GW)
Acc. To
World Energy
Outlook, 2013
Acc. To
Integrated Energy
Policy, 2006
As on
July
2014
 Environmentally sustainable , without compromising on economic and social development.
 Affordable
Projected Energy Demand (BU)
 Equitably accessible to all sections of society.
FY
2013-14
Acc. To
World Energy
Scenario,
2050
Acc. To
World
Energy
Outlook,
2013
5

Impressive growth seen in recent Years... But still a long way to go ...
Electricity Consumption per capita per year (kWh), 2011
Electricity Deficit (MU) 2013-14
42,428
4.2%
Peak Deficit (MW) 2013-14
6,103
4.5%
At about 1/3 rd
Levels of World
Average
Source: IEA Key World Energy Statistics 2013; * CEA 2014; LGBR
2014-15
Power shortage currently costs India a GDP loss of USD 68 Bn (~0.4 % of GDP)
6

Unfavourable environment for all stakeholders…
Delay in receipt of environmental and other clearances
Funds constraints
Factors impacting growth
Fuel availability
Land acquisition
7

Need to balance the ‘Energy Trilemma’
Diversity in
Sources of
Energy
Creating a Resilient
System
ENERGY
SECURITY
Reduced
Dependence on
Imports
Robust
Infrastructure
Redundancy
ENERGY
EQUITY
ENVIRONMENTAL
SUSTAINABILITY
8

Improving available power at lowest price
1.4 -
1.5
MW
Installed Capacity
1.0
MW
Available Power
9

SUPERIOR PERFORMANCE OF BHEL SETS IN INDIAN MARKET
BHEL manufactured sets clocked higher PLF than national avg.
 35 coal based sets register PLF over 90%
 79 coal based sets achieved PLF between
80-90%
 166 coal based sets clocked uninterrupted operation for more than 90 days – testimony to BHEL’s product excellence
 178 coal based sets achieved an operational availability (OA) of higher than 90%
 11 of 13 power station awarded ‘National
Awards for Meritorious Performance’ by MoP,
GoI, during 2012-13 are completely or partly equipped with BHEL make sets
10

Constantly innovating to cater future demands
New Boiler design capable of firing both extremes - from 100% domestic coal to 100% imported coal to effectively deal with uncertainties over availability of domestic and imported coals
To improve steam parameters, thereby improving efficiency and heat rates, resulting in reduced coal demands
Higher parameters provided for NTPC’s North Karanpura Project country’s first
Super-critical power project with Air Cooled Condenser , and is taking strides towards providing further improvements in parameters in the future
11

Constantly innovating to cater future demands
BHEL, NTPC and IGCAR working together in a national consortium for indigenous development and commissioning of 800 MW Advanced Ultra Super Critical (AUSC) Power Plant in India
Targeted operational parameters :
• 710 0 Celsius, 310 Bar, Plant efficiency 46% leading to Reduction in Coal consumption and CO
2 by 12% as compared to Super Critical plants emission
Project planned in two phase :
• R&D phase for Two and Half years and Manufacturing and Commissioning in next four and half years
Challenges involved are Development of New Alloy Materials, Manufacturing Technologies :
• Casting/ forging/ machining and welding, Assembly, Testing procedures and site commissioning
R&D Project cost estimated at Rs. 1554 Crs:
• GOI funding of Rs. 1100 Crs and balance 454 Crs by BHEL and IGCAR (BHEL : 220 Crs and IGCAR : 234
Crs)
Union Budget 2014 Speech:
• Hon’ble Minister of Finance has indicated allocation of Rs. 100 Crs for 2014-’15 for this R&D project
12

Demonstrating superior performance than international benchmarks
Performance of 400-599 MW Sets*
84.73%
84.73%
86.80%
86.80%
85.78%
68.98%
68.98%
85.78%
Performance of 200-299 MW Sets*
Operating
Availability
(OA)
Operating
Availability
Plant Load
Factor (PLF)
(OA)
10.41%
Factor (PLF)
Planned
Maintenance
6.64%
Forced
Outages due to Equip.
85.73% 88.97%
62.80%
80.16%
10.41%
6.56%
4.89% 6.64%
Planned
Maintenance
Forced
9.74%
6.15% due to Equip.
4.89%
Operating
Availability
(OA)
Plant Load
Factor (PLF)
Planned
Maintenance
Forced
Outages due to Equip.
NERC member countries (North America, Canada, Europe part) BHEL Sets
* Average performance of thermal sets during 2007-2011; Source: North American Electric Reliability Council (NERC); 2013
13

PEAK LOAD V/S BASE LOAD
Need for diverse Fuel-Mix
 Coal Based Plants can cater to Base Load
 High Peak Demand Deficit
 Need for Peaking Plants with faster start up
 Gas-based plants preferred for this
 Added Advantage: Cleaner fuel than coal
14

Recent Developments and Other Initiatives
For Long-term Power Optimization
• Gas Pricing Revision/Pooling of Gas prices
• Plan to pool Imported and Domestic coal prices
Linkage rationalization
Significant logistics benefits are possible if domestic and imported coals are swapped between power plants.
Part Load operations
Power Plants in the Country are optimised to operate on full load and Part load operations should be avoided.
Running number of plants on part load, operating some of the by turn on full load and sharing the load would be a better option
Energy Efficiency
• Another source of energy which is affordable but under-exploited
• No adverse environmental impact
• Shift from ‘austerity’ focused ‘energy conservation’ to technology driven ‘energy efficiency’ to ‘energy productivity’
15

CONCLUSION
 The Best energy strategy:
 Adopt a holistic and national power strategy
 Optimally develop domestic resources
 Deploy better technologies
 Adopt tariffs that accurately reflect fuel costs
 Reduce subsidies
 Minimize exposure to commodity prices by diversifying generation mix, and
 Implement the right policies that will ensure that the path to progress remains brightly lit
16

17

(20,000 MW p.a.)
Keeping abreast with latest technological advancements
Bird’s eye view of Bhopal Plant New Turbine Blade shop at Haridwar
Gas Turbine Rotor at Hyderabad Hydro Turbine at Bhopal
19

(20,000 MW p.a.)
Keeping abreast with latest technological advancements
Pipe Bender at Trichy Generator shop at Haridwar
8000 tonnes hydraulic press at Trichy Steam turbine rotor at Hyd
20

Manufacturer
BHEL
L&T-MHI
Alstom-Bharat Forge
Toshiba-JSW
Thermax-Babcock Wilcox
Doosan
Ansaldo-Gammon
BGR-Hitachi
TOTAL (MW)
SG Capacity
(MW)
20,000
4,000
0
0
2,000
2,000
0
0
28,000
TG Capacity
(MW)
20,000
4,000
3,000
3,000
0
0
0
0
30,000
21

22
Sub-critical
Super-critical
Ultra Super-critical
Advance Ultra Supercritical
HPT inlet temp o C
565
565
600
710
IPT inlet temp o C
565
593
600
720
Pressure ata
170
247
280
310
Efficiency
%
38.6
41
42
46
22

Sl.
No.
DESCRIPTION
A TOTAL CAPACITY (Chinese sets commissioned in XI Plan)
FORMULA UNIT
MW
B NO OF UNITS GENERATED IN ONE YEAR AT 100% PLANT LOAD
FACTOR (PLF)
A x 1000 x 24 hrs x 365 days x 1.00
KWHr (UNITS)
C NO OF UNITS GENERATED IN ONE YEAR AT 85% PLANT LOAD
FACTOR (PLF)
B x 0.85
KWHr (UNITS)
D COST OF COAL CONSIDERED
E GROSS CALORIFIC VALUE (GCV) OF COAL CONSIDERED (*)
F OPERATING HEAT RATE (OHR) - as per CEA Report
G SPECIFIC COAL CONSUMPTION F / E
H TOTAL COAL CONSUMPTION IN ONE YEAR FOR GENERATION
CORRESPONDING TO 85% PLF
I TOTAL COST OF COAL FOR UNITS GENERATED ANNUALY
G x C / 1000
H x D / 10000000
RS / TONNE
KCAL / KG
KCAL / KWhr
KG / KWhr
TONNES
RS CRORE
BHEL SETS
18,187
1,59,31,81,20,000 1,59,31,81,20,000
1,35,42,04,02,000 1,35,42,04,02,000
2,000
3,300
2,520
0.76
10,34,11,943
20,682.39
CHINESE SETS DIFFERENCE
2,000
3,300
2,719
0.82
11,15,78,204
22,315.64
199
0.06
81,66,261
1,633.25
ANNUAL ADDITIONAL RECURRING COAL COST WITH CHINESE SETS = RS. 1,633.25 cr.
ADDITIONAL RECURRING COAL COST WITH CHINESE SETS DURING LIFE
TIME (25 yrs)
= Rs
(*) BASED ON GROSS CALORIFIC VALUE (GCV) OF BEST COAL SPECIFIED IN RECENT NTPC TENDER (NORTH KARANPURA)
40,831 crs.
23

Sl.
No.
A
B
C
DESCRIPTION
TOTAL CAPACITY
NO. OF UNITS GENERATED IN ONE YEAR AT 100%
PLANT LOAD FACTOR (PLF)
NO OF UNITS GENERATED IN ONE YEAR AT 85%
PLANT LOAD FACTOR (PLF)
FORMULA UNIT
MW
A x 1000 x 24 hrs x 365 days x 1.00
KWHr (UNITS)
B x 0.85
KWHr (UNITS)
BHEL SETS CHINESE SETS DIFFERENCE
18,187
1,59,31,81,20,000 1,59,31,81,20,000
1,35,42,04,02,000 1,35,42,04,02,000
D COST OF SECONDARY FUEL OIL (HEAVY FUEL OIL -
HFO) (*)
E SECONDARY FUEL OIL CONSUMPTION PER UNIT
F TOTAL SECONDARY FUEL OIL CONSUMPTION IN ONE
YEAR FOR GENERATION CORRESPONDING TO 85%
PLF
E x C / 1000
G TOTAL COST OF SECONDARY FUEL OIL FOR UNITS
GENERATED ANNUALY
F x D / 10000000
Rs / Litre ml / KWhr
LITRES
RS CRORE
52.50
3.06
41,43,86,430
2,175.53
ANNUAL ADDITIONAL RECURRING COAL COST WITH CHINESE SETS = RS. 2,183 cr.
ADDITIONAL RECURRING COAL COST WITH CHINESE SETS DURING
LIFE TIME (25 yrs.)
(*) BASED ON HFO RATE SPECIFIED IN OPGCL TENDER FOR IB VALLEY
= Rs
52.50
6.13
83,01,27,064
3.07
41,57,40,634
4,358.17
54,566
2,182.64
crs.
24

Achievement in 5 Year Plans
High capacity Addition of 55 GW during XI Plan almost equal to combined achievement of previous 3 plan period
25