04/18/23 1

CO-GENERATION - AN INDIAN MODEL

VINAY KUMARMANAGING DIRECTOR

04/18/23 2

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

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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

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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 oilMost of this energy consists of non-renewable sources and thereby in effect unsustainable.

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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

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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

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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

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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 %

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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

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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.

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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

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BIOMASS

TYPES OF BIOMASS WHICH CAN BE USED

• Agricultural Field Residues

• Agro Industrial Residues

• Bagasse

• Wood from plantation

• Waste wood from industrial operations

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CONVERSION TECHNOLOGIES

Biomass Technologies Currently Deployed

• Combustion• Gasification

Cogeneration

• Bagasse cogeneration in sugar mills• Non-bagasse cogeneration in other industries

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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

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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

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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 / co-generation projects.

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* 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.

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INDIAN MODEL OF CO-GENERATION.

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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.

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* Replacing of the existing inefficient turbines drives for fibrizer / shredder with H.T. motors after installation of Co-generation plant.

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INVESTMENT:-

S.No. Details of Equipments Cost in Million (Rs.)

1) 25 MW power plant with 120 TPH boiler of 87 kg/cm.2 with cooling tower, Water Treatment Plant, switch yard, 132 KV line etc.

: 1150.00

2) Replacement of mill drive turbine with AC VFD motors & transformers, cabling etc.

: 20.00

3) Replacement of fibrizer / shredder turbine drive with HT motors, starters & cabling etc.

: 10.00

4) Miscellaneous : 5.00

Total : 1185.00

Less : Scrap value of discarded equipments approx.

: 40.00

Net : Total expenditure : Rs.1145.00

USD-25.50 million

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RETURN ON INVESTMENT:-

Thus, the return on investment is less than 3 years.

S.No. Description Units Value

1) Generation of power / tonne of cane with a condensing, extraction cum back pressure turbine(1 Tonne) 1000 kgs of cane x 32% bagasse x 2.4 steam generation / 5 kg steam / KWH

KWH 154

2) In house consumption per tonne of crush (30 KWH/ Tonne crush at peak capacity)

KWH 30

3) Exportable power per tonne of cane (154 – 30)

KWH 124

4) Revenue earning per tonne of cane crush through power export @ Rs. 4.00 x 124 KWH

Rs. 496.0

5) Revenue earning in one season of cane crush through power export @ 4.00 x 124 x800000

Rs 39.60 millioni.e. USD-8.8

million

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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

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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

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EXECUTION OF TIME REQUIRED

1) Planning & Placement of order : 2 Months

2) Execution & Erection : 10 to 12 months

Total : 12 to 14 months

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PERFORMANCE DATAPerformance 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

1) Cane crush (Tonnes) 790000 472000 150000 1412000

2) Power generated (MWH)

121660 71688 23250 294756

3) Net exported power (MWH)

87690 52392 18450 158532

4) Revenue earned @ 3.00 / KWH (Rs.)

- - - 4756 lacs million

5) Return on investment -< 3 years

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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.

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OVERALL VIEW OF POWER PLANT

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CONTROL ROOM

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VIEW OF BOILER

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VIEW OF ALTERNATOR

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VIEW OF COOLING TOWER

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VIEW OF SWITCH YARD 11kv/132 kv

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THANKS

NATIONAL FEDERATION OF COOPERATIVE SUGAR FACTORIES LIMITED‘ANSAL PLAZA’ BLOCK-C, 2ND FLOOR

AUGUST KRANTI MARG, NEW DELHI-110049 (INDIA)

Tel. : 26263425, 26263436, 26263696Fax : 011-26263658, e-mail : nfcsf@spectranet.com