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Form II
BEFORE THE MAHARASHTRA ELECTRICITY REGULATORY COMMISSION, MUMBAI
Case No. 87 of 2015IN THE MATTER OF
Petition under Section 62 (1) (a) and 86(1) (e) of the ‘Electricity Act 2003’ for determination
of tariff for sale of electricity generated from 1.8 MW capacity Municipal Solid Waste
(MSW) based power project to be commissioned at Kolhapur to the Distribution Licensees
in Maharashtra.
AND
IN THE MATTER OF THE APPLICANT
Kolhapur Green Energy Pvt. Ltd
6th Floor, MET Educational Complex, C- WingA.K. Vaidya Marg, Bandra ReclamationBandra (West), Mumbai – 400 050Through its Director Shri Ashok N Mahindrakar
Versus
1. Maharashtra State Electricity Distribution Company LtdPlot No G-9, Prakashgad, Prof Anant Kanekar MargBandra (E), Mumbai 400 051
2. Tata Power Company Limited ( Distribution)Corporate Centre, ‘B’ 34, Sant Tukaram Road, Carnac Bunder,Mumbai 400 009
3. Reliance Infrastructure Limited (Distribution)Reliance Energy Centre, Santacruz (East), Mumbai 400 055
4. The B.E.S.& T undertakingBEST Bhavan, BEST Marg.Fort, Mumbai 400 001
5. Kolhapur Municipal CorporationMain Building, Shivaji ChowkKolhapur, Maharashtra – 416002------------------------------- Respondent
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Form III
BEFORE THE MAHARASHTRA ELECTRICITY REGULATORY COMMISSION, MUMBAI
Filing No. 2 (TWO)
Case No. 87 of 2015
IN THE MATTER OF:
Petition under Section 62 (1) (a) and 86(1) (e) of the ‘Electricity Act 2003’ for determination
of tariff for sale of electricity generated from 1.8 MW capacity Municipal Solid Waste
(MSW) based power project to be commissioned at Kolhapur to the Distribution Licensees
in Maharashtra.
AND
Kolhapur Green Energy Pvt. Ltd
6th Floor, MET Educational Complex, C- WingA.K. Vaidya Marg, Bandra ReclamationBandra (West), Mumbai – 400 050Through its Director Shri Ashok N Mahindrakar
Versus1. Maharashtra State Electricity Distribution Company Ltd
Plot No G-9, Prakashgad, Prof Anant Kanekar Marg
Bandra (E), Mumbai 400 051
2. Tata Power Company Limited (Distribution)
Corporate Centre, ‘B’ 34, Sant Tukaram Road, Carnac Bunder,
Mumbai 400 009
3. Reliance Infrastructure Limited (Distribution)
Reliance Energy Centre, Santacruz (East), Mumbai 400 055
4. The B.E.S.& T Undertaking
BEST Bhavan, BEST Marg.
FORT, Mumbai 400 001
5. Kolhapur Municipal Corporation
Main Building, Shivaji Chowk
Kolhapur, Maharashtra - 416002
------------------------------- Respondent
3
I Ashok N Mahindrakar son of Shri Narsingrao Mahindrakar aged 65 years, having my office
at 6th Floor, MET Educational Complex, C- Wing, A.K. Vaidya Marg, Bandra Reclamation,
Bandra (West), Mumbai do solemnly affirm and say as follows:
I am Authorized Signatory of Kolhapur Green Energy Pvt. Ltd, the applicant in the above
matter and I am duly authorized by the said applicant to make this affidavit.
1. The statements made in the paragraphs A to E on page number 1 to 40 in the petition
are true to my knowledge and belief and statement made in paragraphs (A) to (D) are
based on information and I believe them to be true.
2. I say that there are no proceedings pending in any court of law/tribunal or arbitrator or
any other authority, wherein the Petitioners are a party and where issues arising and /
or reliefs sought are identical or similar to the issues arising in the matter pending
before the Commission.
I solemnly affirm at Mumbai, on this ----------- day of March 2016 that the contents of the
above affidavit are true to my knowledge, no part of it is false and nothing material has been
concealed there from.
Identified before me. Ashok Mahindrakar
(Authorized Signatory)
Mumbai
1
Table of Content
Sr. No. Particulars Page No.A Summary 3B Fact of the Case 5
(a) Brief Description of the Case 5(b) Salient features of the Concession Agreement executed between
the KMC and the Petitioner6
(c ) Description of the proposed MSW project to be set up atKolhapur, Maharashtra
8
(d) Waste Processing Technology selection 9(e) Waste to Energy Process and Technology Description 14(f) Computation of Power Potential and Plant Load Factor 26
C Justification for the Submission 27(a) Statutory provisions under which the petition is being filed
before the Commission27
(b) Reason why the Commission has jurisdiction to try, entertainand dispose of the petition
28
(c ) Justification for the proposed technology, capital cost and Tariff 30D Cost of generation and proposed tariff 32
(a) Cost Break Up for proposed 1.8 MW WTE Power Project atKolhapur
32
(b) Summary of Quotations of Plant & Machinery 33(c ) Basis for selecting Tariff parameters 33(d) The performance/operating and financial components
considered for computation of tariff for electricity generatedfrom MSW power plant
34
E Prayer 40List of Enclosures 40
2
List of Abbreviations
Abbreviation MeaningCERC Central Electricity Regulatory CommissionSERC State Electricity Regulatory CommissionCEA Central Electricity AuthorityAPTEL Appellate Tribunal for ElectricityMERC Maharashtra Electricity Regulatory CommissionMEDA Maharashtra Energy Development AgencyMSEDCL Maharashtra State Electricity Distribution Company LimitedMSETCL Maharashtra State Electricity Transmission Company LimitedMSPGCL Maharashtra State Power Generation Company LimitedR Infra- D Reliance Infra- DistributionTata Power- D Tata Power- DistributionMOEF Ministry of Environment and ForestMNRE Ministry of New and Renewable EnergykW Kilo WattkWh Kilo Watt HourkVA Kilo Volt AmpereMU Million UnitRs / INR Indian RupeesCr CoroeEA Electricity ActKGEPL Kolhapur Green Energy Pvt. LtdO&M Operation & MaintenanceSHIIPL Sunil Hi Tech India Infra Pvt. LtdSPV Special Purpose VehicleTPD Tonne per DayRSSPL Rochem Separation System Pvt. LtdMSW Municipal Solid WasteWTE Waste to EnergyKMC Kolhapur Municipal CorporationRfP Request for ProposalCoD Commercial date of Operation
3
The Petitioner, M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL) most respectfully submits as
under:
A. Summary
1. Section 62(1) of the Electricity Act 2003 mandates the State Electricity
Regulatory Commission to determine the tariff for supply of electricity by a
generating company (including Renewable Energy) to the distribution licensee,
transmission of electricity, wheeling of electricity and retail sale of electricity in
accordance with the provision of the Act. The Act also specify that while
determining the tariff the Commission shall be guided by the terms and
conditions for tariff determination framed under Section 61(h) of the Electricity
Act.
2. Clause 8.1 of MERC (terms and conditions for determination of tariff from
renewable sources of energy) Regulations 2015 specifies ‘Project specific tariff’,
on case to case basis for MSW power projects. Clause 8.2 of above regulations
states that the financial norms as specified for other RE technology in this
Regulation, except for capital cost and O&M cost shall be ceiling norms while
determining the project specific tariff.
3. The petitioner, Kolhapur Green Energy Pvt. Ltd (KGEPL) (“Petitioner”) a Special
Purpose Vehicle (SPV) promoted by Sunil Hi Tech Engineers Ltd (SHEL) and its
subsidiary Sunil Hi Tech India Infra Pvt. Ltd (SHIIPL). KGEPL has its registered
office at 6th Floor, MET Educational Complex, C- Wing, A.K. Vaidya Marg, Bandra
Reclamation, Bandra (West), Mumbai – 400 050.
4. KGEPL is promoted by Sunil Hi Tech Engineers Ltd having more than 20 years
experience in Infrastructure projects.
5. Considering the growing need for waste management, the Kolhapur Municipal
Corporation (KMC) with an intension to develop project facility for treatment
and disposal of the waste had invited proposals from the private sector after
floating the request for proposal (RfP) in 2013. The KMC proposes to deliver
180TPD of Municipal Solid Waste at the project site to the developer.
6. Rochem Separation System Pvt. Ltd (RSSPL) has been selected as successful
bidder after conducting transparent bidding process. Kolhapur Municipal
Corporation (KMC) has issued the letter of award to M/s RSSIPL vide letter no
Health Dept. / W.S. No. 1/ 211/ 2013 dated 17/09/2013.
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Sunil Hi Tech Engineers Ltd (SHEL) and its subsidiary Sunil Hi Tech India Infra Pvt.
Ltd (SHIIPL) entered into share purchase agreement with Rochem on 20
February 2014 and subsequently, KGEPL, a SPV is formed for execution of 180
TPD capacity MSW to energy project at Kolhapur.
7. In line with regulatory provision stated under(1&2 above),the petitioner M/s
Kolhapur Green Energy Pvt. Ltd (KGEPL), a Special Purpose Vehicle (SPV) formed
for implementation of the said MSW project has filed this petition before Hon.
Commission. In the prayer the petitioner requested the Hon. Commission to
determine the tariff for sale of electricity from petitioner’s 1.8 MW MSW power
project to be commissioned at Kolhapur to the distribution licensees in
Maharashtra.
8. The petitioner has proposed to use the mass combustion technology for
processing of MSW. The technology provider AV & UE Pvt. Ltd is developing
similar 12 MW project in Hyderabad. Mass combustion based waste-to-energy is
a dominant waste processing and disposal technology adopted globally- leading
itself immense merit and credibility. There are several such waste to energy
plants operating globally. This technology provides the cleanest and most
efficient platform for managing waste disposal and for generating green energy.
The mass-combustion technology has following advantages over other available
waste-to-energy technologies :
i) requires less land area,
ii) Produces more power with less waste and
iii) Causes maximum volume reduction of the waste.
9. As per the terms and conditions under the concession agreement between the
KGEPL & KMC, the KMC has allotted a plot measuring 4 Hectare at Kasaba-Bavda
Village in Kolhapur, Maharashtra for setting up the MSW project. The petitioner
has provided an irrevocable, revolving and unconditional bank guarantee of Rs.
150.00Lacs to KMC dt. 29.01.2014 having expiry date of 01.06.2015 as
performance guarantee to KMC.
10. In view of the environmental and social benefits of the MSW power projects and
the fact that with disposal of the waste such plants simultaneously produce
renewable energy, it is requested that the Hon Commission shall encourage
setting up of MSW power projects in the State.
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11. The present petition is filed by the petitioner for award of feed-in- tariff for sale
of electricity generated from1.8 MW capacity power project to be
commissioned at Kolhapur to the distribution licensees in Maharashtra.
12. Hon. Commission is requested to admit the petition and award the appropriate
tariff in line with provisions stated under MERC (terms and conditions for
determination of tariff from renewable sources of energy) Regulations 2015.
B. Facts of the case
a) Brief description of the case
1. Kolhapur Municipal Corporation (KMC) as civic body is responsible for the
collection, transportation and disposal of municipal solid waste (MSW)
generated in the city of Kolhapur as per the procedure laid down under MSW
(Management and Handling) Rules 2000 framed by the Ministry of
Environment and Forest (MoEF).
2. The KMC with an intension to develop project facility for treatment and
disposal of the waste, invited proposals from the private sector after floating
the Request for Proposal (RFP) through Tender Notice No. 27 dated 04/06/2013
for Establishment of Processing Plant for Conversion of MSW to useful product
(Power) at Kasaba Bavda, Village in Kolhapur on Design, Build Finance, Operate
and Transfer (DBFOT) basis.
3. M/s Rochem Separation System (India) Pvt. Ltd., Mumbai (RSSIPL) was selected
for development of MSW Project facility at Kolhapur on Design Built Finance
Operate and Transfer (DBFOT) basis after following the transparent competitive
bidding process by KMC. Kolhapur Municipal Corporation (KMC) has issued the
letter of award to M/s RSSIPL vide letter no Health Dept. / W.S. No. 1/ 211/
2013 dated 17/09/2013 (Annexure I submitted with the original petition)on
the basis of bid documents submitted by RSSIPL on dated 20/06/2013.
4. Subsequently, Kolhapur Green Energy Pvt. Ltd (“Petitioner”) a Special Purpose
Vehicle (SPV) promoted by Sunil Hi Tech Engineers Ltd (SHEL) and its subsidiary
Sunil Hi Tech India Infra Pvt. Ltd (SHIIPL). KGEPL has its registered office at 602,
Trade Centre, Bandra Kurla Complex, Bandra East, Mumbai - 400051,
Maharashtra. SHIIPL has entered into a Share Holder’s Agreement with Rochem
Separations Systems (India) Pvt. Ltd (RSSIPL) (Annexure II submitted with the
original petition). By virtue of this Agreement SHIIPL have majority shares with
6
voting & economic rights, as per the agreement the shareholding ratio of SHIIPL
and RSSIPL comes to 88:12 respectively. KGEPL was formed to establish
Processing plant with a capacity of 180 TPD for conversion of MSW into useful
product (Power) & Bottom Ash as the byproduct.
5. A Concession Agreement in this regard was signed between petitioner and KMC
on 7th February 2014.
6. As per this agreement the Concessionaire is responsible to design, built,
finance, operate and transfer the waste management project at the end of
concession period. The concession period is 30 years from the date of
commencement of the plant. A copy of the concession agreement is enclosed
with the petition as (Annexure III submitted with the original petition).
7. As per the concession agreement, KMC agreed to deliver the assured waste
quantity of 180 TPD at project site for processing. KMC further agreed to pay
the tipping fee of Rs 308 per metric tonne of MSW, which will remain constant
till the end of concession period.
b) Salient features of the Concession Agreement executed between the KMC and the
Petitioner
1. The project is allotted on Design, Build Finance, Operate and Transfer basis for
construction and operation of MSW processing facility for 180 TPD MSW to the
petitioner for a period of 30 years from the appointed date (clause 2.1 a).
2. MSW treatment facility selected for the project would scientifically processes
the MSW, have maximum waste recycling and recovery potential, and shall
create public awareness. The concessionaire /petitioner shall ensure that no
more than 20% of the MSW received at processing facility should be sent to
Landfill (clause 2.3).
3. The concessionaire /petitioner should perform and fulfill all the obligations
including the design, engineering , finance, procure, construct, install,
commission, operate, and maintain each of the project facilities either itself or
through such person as may be selected by it. Concessionaire /Petitioner
should transfer the project facility at the end of concession period to KMC
(clause 3.1.2).
4. Concessionaire /Petitioner can process MSW as per provision of the agreement
, market and sell or dispose all the components/ products of MSW including
but not limited to electricity, methane, RDF, compost and retain and
7
appropriate any revenues generated from the sale of such products / end
products (clause 3.1.2. g and h of the agreement).
5. Concessionaire /Petitioner receive all financial benefits accruing in respect of or
on account of the Project in including CERs under CDM (clause 3.1.2.k).
6. Tipping fee payment will be made by KMC to concessionaire /petitioner as per
the measurement at the weighbridge at the processing facility (clause 5.6).
7. KMC shall collect the inert material generated out of the processing facilities
and arrange for the disposal (clause 6.1.2.d). KMC shall handover land as per
requirement upon signing of the land lease agreement (clause 6.1.2.g).
8. The performance security (Rs 150 lakhs) in the form of performance bank
guarantee has to be furnished by the concessionaire /petitioner (clause 9.1.1).
The security shall remain in force and effect for a period of 120 days from
commercial date of operation (CoD) (clause 9.3).
9. The concessionaire /petitioner shall pay a lease payment at the rate of Rs 1
(one) per square meter per annum for the land leased by KMC during the
concession period (clause 10.1).
10. KMC agrees and undertakes to pay tipping fee to the petitioner (clause 17.1.1).
The monthly tipping fee will be calculated as per monthly average quantity of
MSW supplied by KMC at the weighbridge. However, if average MSW quantities
receive is less than minimum MSW quantity specified, then the tipping fee will
be calculated as per minimum MSW quantity committed by KMC. The tipping
fee will remain constant at Rs 308 / Tonne throughout the concession period
(schedule 21).
11. The MSW processing facility should be designed to have a minimum processing
capacity of 180 tonnes of MSW per day.
Table 1: Daily minimum waste quantities
Sr. No. Financial Year Ending March 31stDaily minimum waste
quantity (TPD)
1 2015 140
2 2016 140
3 2017 140
4 2018 150
5 2019 150
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Sr. No. Financial Year Ending March 31stDaily minimum waste
quantity (TPD)
6 2020 150
7 2021 150
8 2022 150
9 2023 160
10 2024 160
11 2025 160
12 2026 160
13 2027 170
14 2028 170
15 2029 to End of Concession Period 180
12. The concessionaire /petitioner shall have the right to refuse acceptance of
MSW quantity in excess of the quantity as specified. Provided that the MSW
quantity considered would be the thirty days trailing average of received MSW
quantity. The right of the concessionaire /petitioner to refuse excess waste will
cease as soon as the 30 days trailing average of received MSW quantity is less
than or equal to the specified MSW quantity (clause 18.2.1).
13. Force majeure related issues are given in clause 26. Clause 27 discusses the
compensation for the breach of agreement. Events of default and termination
for both the parties of agreement are clearly defined in clause 29 of the
Concession Agreement.
c) Description of the proposed MSW project to be set up at Kolhapur, Maharashtra
1. To address the issues of MSW in India, in exercise of the powers conferred by
section 3,6 and 25 of the Environment (Protection) Act,1986 (29 of 1986), the
Central Government, Ministry of Environment and Forest made rules to
regulate the management and handing of the MSW, namely MSW
(management and handling ) Rules 2000. Under Schedule II, Section 5
“Processing of Municipal Solid Waste” following is stated.
9
“Municipal Authorities shall adopt suitable technology or combination of such
technologies to make use of waste so as to minimize burden on landfill.
Following criteria should be adopted namely,
ii) Mixed waste containing recoverable resources shall follow the route of
recycling. Incineration with or without energy recovery including pelletisation
can also be used for processing waste in specific cases.
2. Accordingly, in line with the provisions of the MSW Rules 2000, the petitioner is
developing the project based on mass combustion technology for processing
and disposal of the waste with energy recovery.
3. As per the concession agreement executed between the KGEPL and KMC,
KGEPL is responsible for the development of waste processing facility as per the
terms and conditions specified under the concession agreement.
4. The KMC will supply total 180TPD of MSW to KGEPL to process at the MSW
process facility to be set up at Kolhapur. Detailed Techno-Economic Viability
Report (TEV report) of the project is enclosed along with the petition
(Annexure IV submitted with the original petition).
5. The proposed MSW project involves implementation of a mass combustion
technology for waste to energy conversion. The project activity will process
approximately 180 TPD of municipal solid waste and produce renewable
power.
d) Waste Processing Technology selection
1. The petitioner’s choice to select combustion / incineration technology for
the proposed WTE project is governed by careful study of the merits and
demerits of all Waste processing technological options as well as analysis of
the composition of waste from the Kolhapur city and local conditions. The
petitioner prior to signing the Concession Agreement with KMC, undertook,
inter-alia the following activities as part of due diligence to select the
appropriate technology to sustainably process and dispose waste, overcome
the technical, environmental and social challenges of MSW.
2. Keeping in perspective the waste characteristics in Kolhapur, advantages
and disadvantages of waste processing technologies, ground reality of waste
processing and disposal in the city, maturity of technology, the petitioner
10
has selected mass-combustion technology for the proposed MSW project at
Kolhapur.
3. Municipal Solid Waste has to be managed by technology and methods that
enable keeping our cities clean, prevent pollution & protect environment. As
per CPCB report of 2012-13 municipal areas generates approx 1, 33,760
Tons of Waste per day out of which 91,152 TPD is collected and 25,884 TPD
is treated with some technology. The MSW therefore dumped in low lying
urban areas consumes approx 2, 12,752 cubic meter space every day & 776
ha of precious land per year.
4. While selecting the technology options to treat all components of waste,
factors that have been considered include quantity & composition of MSW,
collection, segregation & transportation capabilities of the Kolhapur
Municipal Corporation, conversion technology, estimation of energy,
compost generation, capital & operational costs, financing options including
levy of tipping fees and user charges.
5. Learning from the past experience is essential to identify suitable technology
for processing of Municipal Solid Waste. There are several technologies
currently being advocated for processing of MSW. These technologies can
be classified into two broad categories namely :
Bio – Chemical conversion of biodegradable MSW.
Thermal processing of MSW.
6. Group one covers technologies such as composting & biomethanation,
whereas Group two includes technologies like gasification, pyrolysis,
incineration & mass burning, Refuse Derived Fuel can also be prepared from
combustible MSW.
7. In Indian context the following technologies are indentified for processing of
MSW –
Biomethanation for wet biodegradable wastes.
Conventional microbial windrow/mechanized/vermin composting for wet
biodegradable wastes.
Refuse derive Fuel from dry high calorific value combustible wastes.
Incineration of dry high calorific value combustible wastes.
11
Biomethanation Technology
8. Biomethanation is an anaerobic digestion of organic materials which is
converted into biogas. It is a biological treatment method that can be used
to recover both nutrients & energy contained in biodegradable municipal
solid waste. This technology can be conveniently employed for
biodegradation of segregated organic wet wastes such as waste from
kitchens, canteens, institutions, hotels & slaughter houses & vegetable
markets. This technology is most suitable for small towns and where proper
segregation of MSW is done to segregate biodegradable & degradable
factions.
9. The disadvantages of this technology is as follows –
Segregated waste is required for adoption of biomethanation technology
Land Requirement is more.
Very Low Volume Reduction of waste i.e. 30%-40%.
Degree of Pollution is high.
Degree of Water pollution is high.
Process Water requirement is high.
Recovery of Energy is low.
Pyrolysis Technology
10. Pyrolysis uses heat to break down combustible polymeric materials in the
absence of oxygen, producing a mixture of combustible gases, liquids & solid
residues. The products of pyrolysis process are – (i) a gas mixture; (ii) a liquid
(bio-oil/tar); (iii) a solid residue (carbon black). The proportion &
composition of various fractions depends on a variety of parameters.
11. Following are the shortcoming of Pyrolysis Technology -
Requires dry waste.
O&M cost is high.
Huge land requirement for storage of fuel.
High project cost as pre treatmentequipments of MSW is mandatory.
High O&M cost.
More fuel requirement in rainy season.
High inert content in Indian MSW.
Percentage of rejects to landfill is high.
12
Composting Technology
12. Composting is a process of decomposition of biodegradable fraction of MSW
under aerobic conditions. This technology is used to handle large quantities
of biodegradable wastes using windrow method. The waste is stacked in
heap for a couple of weeks or buried in a pit to decay for 3 to 6 Months to
mechanized processing. Vermi composting technology is based on use of
earthworms after initial pre processing of waste under a shed. Here the
earthworms eat the organic fraction of waste & excrete – the excrete is
collected as vermin cating, sieved & utilized as bio organic fertilizer. This
technology is most suitable for very small towns & villages.
13. The shortcomings of this technology are as follows –
Non operational in monsoon season.
Large space requirement.
Threat to public health in proximity.
Water pollution is more.
Requirement of Water treatment plant.
Degree of pollution is high.
Rejects to landfill is high thus decreasing the life of landfill.
Very low reduction of volume of wastes i.e. 15%- 30%.
Incineration Technology
14. Incineration is the oxidation of the combustible materials contained in the
MSW. Incineration is used a treatment for a very wide range of wastes. This
process can reduce the waste volume up to 90% and the capital cost of this
process is lower than other MSW treatment technologies. This will work out
best in a centralized system.
15. Incineration technology is complete combustion of waste with the recovery
of heat to produce steam that in turn produces power through steam
turbines. Complete combustion optimally involves a two stage
transformation of fuel, in this case solid waste into CO2 & water vapor. The
secondary phase of incineration takes place as the combustible materials
(e.g. paper, plastics, organic materials containing carbon, hydrogen &
oxygen) combine with oxygen to form carbon dioxide & water vapor.
13
16. In mass burn plants the grate system moves the solid waste through the
drying, burning & burnout zones while promoting combustion. This is done
by ensuring that adequate quantities of air enter from below via holes in the
grates. In this process the entire MSW will be converted into energy with
higher efficiency as compared the other technologies.
17. Appropriate Technology means any technology which is acceptable,
affordable & manageable. There are two angles to technology evaluation.
One what the customer or the consumer expects from a technology and the
other is how the manufacturer designs the technology to meet customer
expectations. As this technology is more financially viable than any other
technology, hence the petitioner has selected the same to be adopted for
Kolhapur project.
Please refer to the table below for comparison of different process
technologies
SlNo
AssociatedFactors
Composting Biomethanation Incineration Gasification SLF
1 Air Pollutiona Extent Low Low Medium Medium Highb Requirement
of AirPollutionControl
- - Yes Yes -
c Dixons/Furans - - PossibilityExists : butminimizeddue toremoval ofplasticsfrom wasteby ragpickers
- -
d Release ofGreen HouseGases
Uncontrolled Controlled &Utilized
Controlled& Utilized
Controlled& Utilized
MostlyUncontrolled
2 WaterPollution
a Exists Yes Yes Yes Yes Yesb Requirement
of WasteWaterTreatment
Yes Yes Yes Yes Yes
14
SlNo
AssociatedFactors
Composting Biomethanation Incineration Gasification SLF
C Quality oftreated water
May bedischargedinto waterbodies
May bedischarged intowater bodies
Used in theprocess
Used in theprocess
Dischargedinto waterbodies
d Degree ofpollution
High Medium Low Medium High
3 Solid Wastegenerationdue torejects/sludgeformation inthe process
High Low Low Low Low
4 Volumereduction ofwaste
15-30% 45-50% 80-90% 65-75% 70-80%
18. The petitioners choice for go with the mass combustion / incineration
technology for the Kolhapur MSW project is governed by quantity &
composition /quality of waste generated in the city , population as well as
cost of setting up of processing plants along with the expected quantities of
value added products & by products that can be obtained during process.
e) Waste to Energy Process and Technology Description
The technology supplier, AV & UE Pvt. Ltd., an IBR approved company is an
innovative technology driven Company involved in manufacturing MSW based
boilers, AFBC, CFBC, IGCC Gasifiers, Sulphuric Acid WHRS, Sponge Iron WHRS,
Package Boilers, Pressure Vessels, Heat Exchangers along with auxiliaries & support
equipments& BOP. AVUE is executing 12 MW waste to energy facility at Hyderabad,
Telangana and is scheduled to be commissioned in March 2015.The facility will be
consuming 1000 tons of MSW on daily basis and has a storage capacity of 5000 tons.
AV&UE’s boiler is developed on the existing reverse push reciprocation grate
technology which is capable of combusting the MSW thoroughly without
segregation even with 45% moisture content in the MSW. The MSW could be more
fully burned by Single Segment Reverse Push Stoker system so as to decrease the
heat reduction rate of ash slag. Currently, AV&UE provide services to major players
like Larsen & Tubro, GMR, Babcock Borsing Services, Gujarat State Fertiliser &
Chemicals Ltd., Mono Steel, Aditya Birla, SAIL, AML Steel Ltd. & many more.
REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY
15
The Single Segment Reverse Push Stoker System shall be capable of combusting
municipal waste containing moisture around 40%.
The reciprocating stoker system will consists of a refuse feeder, a reverse acting
stoker with adjustable device of refuse layer, a combustion control system and an
ash discharge system.
This technology is developed based on the existing reverse push reciprocation
grate, and its core is in view of the living MSW features of low heat value and high
moisture. The MSW could be more fully burned by Single Segment Reverse Push
Stoker system so as to decrease the heat reduction rate of ash slag. The primary air
used for supporting burning is preheated by secondary air heater to make the
temperature more than 240 ºC to 250 ºC, so as to make the MSW that enters into
furnace dried, fired and burned at a quick speed. The extra air factor of boiler is
designed to be over 1.6, to maintain sufficient oxygen in boiler and reduce the
production of TEQ. Our boiler, high-temperature secondary air sprays into at a high
speed to make sufficient disturbance of flue gas, prolong the residence in furnace,
so as to improve the combustion condition to ensure the flue gas temperature not
lower than 850 deg. C in furnace and residence over 2 seconds.
In view of the situation that the primary air which is used for supporting burning is
difficult to control, division air chambers is designed, that is in accordance with the
different regional features during MSW burning, the air chamber under the grate is
divided into several relatively independent air chambers, each chamber equipped
with air adjust door. Under certain air pressure, by adjusting the primary air amount
in one or several or all air chambers, the regional or the whole combustion condition
could be improved. The open range of air door and air amount is designed to be
linear ratio, and the combustion condition could be exactly controlled by auto
control system.
PROCESS LOGIC:
STEAM GENERATOR CAPACITY
Boiler Capacity TPH 8
Steam Pressure KG/cm2 40
Steam Temperature °C 400
16
Fuel Quantity TPD 180
CAPACITY OF THE PLANT
KGEPL is planned initially for 140 TPD for processing with an arrangement to
enhance the facility up to 180 TPD.
PIT MANAGEMENT
• 4 to 5 days of the plant capacity is dumped in the pit.
– The garbage is not kept in open as odor has to be managed
– The garbage leaves the moisture and the CV increases due to anaerobic
activity.
17
FUEL PROCESSING PLANT FOR THE PROJECT
The conversion process of Municipal Solid Waste (MSW) into processed fuel involves the
following processes. MSW is collected, transported to Plant site by the Municipality.
• Homogenization
• Trammeling
• Solar Drying
• Segregation
THE STORAGEPIT
SEGRIGATION
18
THE POWER GENERATION SCHEME
The steam cycle define the transformation of the chemical energy in the fuel to the
mechanical energy at the turbine shaft, through the various thermodynamic processes. The
Cycle is a sequence of thermodynamic processes that is capable of producing the net heat
flow or work when placed between the energy source and an energy sink. Any Cycle needs a
working fluid and steam is viewed as the most favoured working fluid mainly because of its
unique combination of high thermal capacity, high critical temperature, wide availability at
cheaper cost and non-toxic nature. Higher thermal capacity of the working fluid generally
results in smaller equipment for the given power output or heat transfer.
All the steam-based power plants operate under the Rankine Cycle. Simplistically the
Rankine Cycle is described as the combination of the various process like the isentropic
compression of water in the boiler feed water pumps, reversible heat addition to the
working fluid through the liquid, two phase and superheat states, isentropic expansion of
the working medium in the turbine and the constant pressure heat rejection to the
atmosphere through the condenser and the cooling water system. The cycle to be adopted
for this project will be a modified Rankine Cycle with the addition of the Regenerative feed
water heating. To improve the efficiency of the cycle the feed water from the condenser is
heated with the steam extracted from the turbine. Because of the size of the plant there are
limitations in the use of the number of stages for heating the feed water, and for this project
only one stage of heating is done in a deaerator.
High pressure and high temperature cycles arc crucial for increasing the operating efficiency
and the power output from the power Plants. The choice of the level of the pressure and
temperature for the cycle depends on the level of confidence in the plant operators, quality
of the feed water and the water treatment systems available and the cost of the high
pressure/temperature boiler and Turbogenerator systems and the financial benefits
realizable from the power plant by way of the sale of the exportable power.
Thermodynamically, energy recovery from the Rankine Cycle is more dependent on the
steam inlet temperature than the pressure and the higher the inlet steam temperature,
higher the cycle efficiency. However, the practically attainable limits of temperatures are
influenced by the metallurgy of the boiler tubing, piping and the turbine components and
the complexity of the Creep fatigue interaction for the materials at higher temperatures.
19
Temperatures up to 400°C require the use of ordinary carbon steel and beyond 400°C, low
grade alloy steels are employed. Above 500°C, the requirements become stringent and
expensive and above 550°C, the requirements are very stringent and prohibitively expensive.
It is extremely important that the selection of the temperature is done keeping in mind the
nature of the industry, nature of the fuel fired in the boiler, cost of fuel & environmental
considerations. Considerations such as cost, maintainability, provision of adequate safety
margins, the experience of the industry so far and the level of the operating personnel
available in the industry, force us to a selection of a safe operating temperature for the
plants of the subject size and nature. With the boilers fired with MSW / bio-mass fuels
whose nature, composition and-size are difficult to control, it is also important to keep in
mind that the super heater steam temperature response is a little erratic, even with a good
steam temperature control system. This is mainly because of the nature of the fuel and the
difficulty to ensure a correctly metered quantity of fuel flow to the boiler. The nature of fuel,
especially the Chlorine content in the fuel and the corrosive nature dictates the steam
temperatures for the project.
Considering the above, for AVUEPL, it is proposed to install the boiler with outlet steam
parameters of 40 ata and 400°C ± 5°C. The steam inlet to the turbine will be 39 ata and
390°C, with the difference in the pressure and the temperature accounting for the losses in
the steam piping from the boiler to the turbine.
RAM FEEDER
20
Figure: Process Flow Diagram
Plant Operation
The Power plant will export a nominal 1.45 MW power on a continuous basis. The power
requirements of the auxiliaries of the Power plant is0.35 MW, and the gross power
generation in the plant will be 1.8 MW to meet with both the exportable power as well as
BOILER & FLUEGAS TREATMENT
21
the in-house requirements. The plant will operate for a minimum of 292 days per year at the
designated capacity.
The feed water management program shall ensure the supply of good quality make up water
to the system. In the proposed power cycle most of the steam supplied to the turbine, about
98% will come back as the condensate from the air cooled condenser and through the feed
water heating systems.
The makeup required will be approximately 4% to 5% of the steam generated in the boiler,
which includes all the losses in the system and the blow down in the boiler. The complete
make up required for the plant operation will be treated water and a reverse osmosis water
treatment plant of adequate capacity will be provided. The make up for the cycle will be
added in the condensate tank of the air cooled condenser and the quantity of makeup will
be controlled by the deaerator level control system.
The feed water temperature at the inlet of the feed water pumps of the boiler will be 105°C,
with the feed water heated in a thermal Deaerator. The temperature of the feed water at
the pump outlet will be around 106°C; the rise in temperature is attributable to the work
done in the pump.
The proposed turbine will be a single extraction cum condensing machine, the extraction
being uncontrolled. The extractions will be at the pressure of 6.535ata and this extraction
quantity is very small and meets only with the requirements of the deaerator and SCAPH.
The steam required for ejector & gland sealing will be at the pressure of about 10.0 ata,
which could be taken through a PRDS station in the plant.
The Power Generation cycle will be provided with the only one Feed water heating system in
the form of a deaerator serving the dual purpose of deaerating the feed water as well as
heating the feed water with the uncontrolled extraction steam at 6.535 ata from the
turbine. The deaerator’s capacity will be 140 TPH and the capacity of the deaerated water
storage tank shall be minimum 46 m3. The Deaerator system will be operating at 1.235 ata
pressure, with the deaerated feed water temperature at 105°C.
The power generation in the turbo generator will be at 11 kV level. The turbo generator will
be operating in parallel with the State Grid. Out of the gross generation of power at the
generator terminals the in-plant power requirements will be met by stepping down the
power in a step-down transformer and the balance of the generated power will be exported
to the Grid. The exportable power will be stepped up and will be connected to the nearby
sub-station of state grid. Adequate space and transformer capacities are available at the
substation, for receiving the exportable quantum of power from the Power plant.
22
The Power plant’s water requirement will be met by drawl from bore wells, within the plant
and also from the nearby river.
The Power plant’s in-house power requirements, including the power requirements of the
auxiliaries of the boiler, auxiliaries of the turbo-generator, the power requirements of the
balance of the plant equipment, the fuel processing plant and including-the losses, works
out to a total of 350 kW.
Description of the Power Generation Scheme
The Power generation scheme proposed envisages a single boiler with all its auxiliary
systems and an extraction cum condensing turbo-generator with all its auxiliary systems and
HV systems for the export of the power to the grid and the remaining balance of plant items
to complete the power plant.
The Scheme envisages 1 x20 TPH capacity steam generator with the outlet steam
parameters of 40 ata and 400°C ± 5°C, with the feed water inlet temperature of 105°C. The
Turbogenreator to be installed will have 1.8 MW capacity with single uncontrolled
extractions. The plant will be designed with all other balance of plant systems like the fuel
handling system, Ash handling system, raw water system, auxiliary cooling water system, air
cooled condenser system, reverse osmosis water treatment system, compressed air system
and HV systems, etc. for its successful operation.
The scheme is configured to optimize, the power generation, with one stage of feed water
heating. The extraction of steam and its usage in the Deaerator for the Feed water heating
improves the efficiency of the plant.
The entire steam generated in the boiler is fed to the single extraction condensing
turbogenerator. The uncontrolled extraction from the turbine at 6.535 ata gives steam
approximately at a temperature of 215°C. This steam is entirely used for heating up the feed
water in the thermal deaerator and for SCAPH. In -addition to this steam, the flash steam
recovered from the boiler blow down tank is also proposed to be used in the deaerator. The
flash steam from the continuous blow down tank, equivalent to 0.237 TPH will be led into
the deaerator for supplementing the steam supplied from the turbine extraction for
deaeration.
The balance of the steam supplied to the turbine, after the extraction, is exhausted at 0.1
ata to the condenser of the power turbine. The condensate from the condensate tank
of the condenser is then pumped to the feed water system by the condensate extraction
23
pumps. In addition to the above quantity, the condensate from the gland steam condenser
and the ejector condensers is added to the feed water system through the condensate tank.
The make up for the system is basically to take care of the -losses in the system. The major
losses in the system are the blow down from the boiler and the vent losses from the various
equipments like the deaerator, gland steam condenser and ejector condenser etc. and the
leakages in the system. The losses in the blow down are about 0.633 TPH and the vent losses
from the various equipments are estimated to be 0.167 TPH. A provision of about 3% is
made for meeting with the leakages in the design of the makeup water system.
The condensate returning to the boiler consists of mainly the condensate from the water
cooled condenser, the condensates from the Gland Steam Condenser and the condensate
from the ejector condensers. All these condensates are collected in the condensate tank and
then pumped to the deaerator for the purpose of deaeration and feed water heating by the
condensate extraction pumps. The makeup water to the system is added to the deaerator.
The makeup is a small quantity and also it is necessary that the make-up is supplied to the
deaerator at a higher pressure for the purpose of atomisation for the effective deaeration.
The makeup water supply to the system is controlled by the level control system of the
deaerator.
The Power Point Presentation describing the complete MSW to energy conversion process is
attached as Annexure VIII
Noise Pollution
The rotating equipment in the Power plant & fuel preparation plant will be designed to
operate with a total noise level of not exceeding 85 to 90 db(A) as per the requirement of
Occupational Safety and Health Administration (OSHA) Standards of US. The rotating
equipment is provided with silencers wherever required to meet the noise pollution. As per
OSHA, protection from noise is required when sound levels exceed those given in the
following.
PERMISSIBLE NOISE LEVELS
Exposure Duration / Hours Sound Level db(A)
8 90
6 92
4 . 95
3 97
2 100
1 102
24
The tolerance limits for the effluents
S. No CHARACTERISTICS CONCENTRATION IN MICROGRAMS PER CUBIC METER
SPM S02 CO NOX
1. Industrial and mixed use 500 120 5000 120
2. Residential & Rural 200 80 2000 80
3. Sensitive 100 30 1000 30
EMISSION STANDARDS FOR BOILERS (Pollution Control Board)
S.NO CAPACITY OF BOILER PARTICULATE EMISSION LIMITS
1. Less than 2 tons /hour 1600 mg/Nm3
2. 2 to 15 tons /hour 1200 mg/Nm3
3. More than 15 tons /hour 150mg/Ncum
This requirement is applicable for boilers using any type of solid fuel.
BENEFIT OF REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY
– Better combustion & longer life
– Grate bars made of – corrosion resistant, heat resistant caststeel alloy
Fuel Feeding System
RAMfeeder
25
– Feeding system shall be a hydraulic RAM which is a proven system.
– (N-1) Feeder operation for 100% MCR considered to take care of variation in
fuel physical properties
Fuel Spreading System
– Pneumatic spreading system for uniform distribution to the entire grate
Combustor
– Higher excess air to maintain optimum grate temperature of less than 950 °c
– Because of High excess air no ash fusion & clinker formation on the grate
– Secondary air at correct location to ensure better air penetration & turbulent
mixing and better post combustion
– Furnace 1st pass with special type refractory lining low gas velocity & long
residence time
– Refractory lining take care of furnace corrosion due to change in atmosphere
A comparative table showing the emission specified by the technology provider with the
emission standards specified by Central Pollution Control Board (CPCB) of India is given in
the table below.
Sl No Description Unit EuropeanDirective
2000/76/EC
IndianEmissionNorms
GuaranteedOutput
1. Dust mg/m3 STP 10 150 102. NOx mg/m3 STP 200 450 4503. NOx (option :SNCR) mg/m3 STP 2004. HCI mg/m3 STP 10 50 505. SO2 mg/m3 STP 50 506. HF mg/m3 STP 1 1
26
Sl No Description Unit EuropeanDirective
2000/76/EC
IndianEmissionNorms
GuaranteedOutput
7. TOC mg/m3 STP 10 108. Hg mg/m3 STP 0.05 0.029. Cd+TI mg/m3 STP 0.05 0.0510. Sb+As+Pb+Cr+Co+Cu+
Mn+Ni+Vmg/m3 STP 0.5 0.5
11. Dioxins & Furans (TEQ) Ng/m3 STP 0.1 0.1
f) Computation of Power Potential and Plant Load Factor
Input – Un-segregated Municipal Solid Waste – 180 tonnes per day
Energy recovery potential (kWh)
= {caloric value of waste (kcal / kg) average waste collected (tones / Day) X 1000} /
860
= (1100 * 160 * 1000) / 860 = 204651 kWh
Power generation potential (kW)
= Energy recovery potential (kWh) / 24= 204651 / 24 = 8527 kW
Gross generation potential (kW)
= Power generation potential (kW) X Conversional efficiency (22%)
= 8527 * 22% = 1875 KW = 1.8 MW
Plant Availability Factor No of days the plant shall put in operation= ------------------------------------------------------=
No of days in the year (365 days)= 292 /365 = 80.00%
Plant Load Factor = 1.8MW*8760*0.80 / Name Plate capacity (1.8MW)*8760= 0.8 =
80%
PROJECT IMPLEMENTATION SCHEDULE AND WILLINGNESS TO POWER PURCHASE BY
DISCOM
The Project implementation schedule and application made to DISCOM for procurement of
green energy from the proposed MSW plant is attached with the petition in the form of
Annexure IX and Annexure X respectively ( submitted with the original petition).
27
C. Justification for the Submission
In the subsequent Paras, the petitioner respectfully submits before the Hon Commission the
following facts:
a. Statutory provisions under which the petition is being filed before the
Commission.
b. Reason why the Commission has jurisdiction to try, entertain and dispose of the
petition
c. Justification for the proposed technology, capital cost and Tariff
a) Statutory provisions under which the petition is being filed before the
Commission.
1. Section 62(1) of Electricity Act 2003: Section 62(1) of the Electricity Act
mandates the Commission to determine the tariff for supply of electricity by a
generating company (including renewable sources of energy) to a distribution
licensee, transmission of electricity, wheeling of electricity and retail sale of
electricity in accordance with the provision of the Act. The Commission is duly
bound to determine all tariff ( including renewable sources of energy ) as
specified in section 62 (1) of the Act and while doing so the Hon. Commission is
guided by the terms and conditions for tariff determination framed under
Section 61(h) of the Electricity Act . Section 61 (h) of EA 2003 specifies that while
drafting the terms and conditions for tariff determination the Commission
should see the need for promotion of co-generation and generation of electricity
from renewable sources of energy.
2. Clause 8.1 of MERC (terms and conditions for determination of RE tariff)
Regulations 2015 specifies that the Commission shall determine ‘Project specific
tariff’, on case-to-case basis for municipal solid waste based projects. Clause 8.2
of above regulation states that “Determination of project specific tariff for
generation of electricity from such RE sources shall be in accordance with such
terms and conditions as may be stipulated under relevant Orders of the
Commission. Provided that the financial norms specified in Chapter 2, except with
regard to Capital Cost and O&M expenses, shall be the ceiling norms while
determining such project-specific tariff.”
3. Clause 9.2of MERC (terms and conditions for determination of RE tariff)
Regulations 2015 specifies that “A petition for determination of project-specific
tariff shall be accompanied by such fee as may be specified in the applicable
28
Regulationsof the Commission, and shall be accompanied by a) Information in
Forms 1.1, 1.2, 2.1 and 2.2 as the case may be, appended as Annexure-A of these
Regulations; b) a detailed project report outlining technical and operational
details, site specific aspects, premises for capital cost and financing plan, etc. c) A
Statement of all applicable terms and conditions and expected expenditure for
the period for which tariff is to be determined. d) A statement containing details
of any grant, subsidy or incentive received, due or assumed to be due from the
Central Government, and/or State Government, which shall also include the
computation of tariff without consideration of such grant, subsidy or incentive..
e) Details of financial gain through REC or any other mechanism. f) Any other
information that the Commission may require the Petitioner to submit. The
petitioner has annexed the requisite information as specified under (a), (b), (c)
and (d) above with the petition.
4. The National Electricity Policy (NEP) notified by the Government of India also
envisages importance of MSW projects. Clause 5.10.5 of NEP states that “Setting
up of municipal solid waste energy projects in urban areas and recovery of
energy from industrial effluents will also be encouraged with a view to reducing
environmental pollution apart from generating additional energy.”
5. Point 7 in Chapter VII of Integrated Energy Policy issued by Government of India
states that “for grid connected renewables, Regulatory Commissions (RC’s)
should provide feed-in laws to permit renewables to supply electricity to the
grid”.
b) Reasons why the Commission has jurisdiction to try, entertain and dispose of the
petition
1. As far as the urban and industrial waste is concerned, the environmental
problem that is caused in metro cities, both from the collection and disposal
points of view, hardly needs emphasizing. Such urban wastes are not only the
source of bad odor but also cause methane generation, a serious cause of global
warming and consequent environmental degradation. Kolhapur city is no
exception to this.
2. Scarcity of landfill site for MSW dumping is another cause of worry. All the
available landfill sites in big cities have nearly reached their full capacity.
Dumping of untreated waste at these landfill sites is environmental hazard both
on account of methane that is generated, which escape into environment
29
causing ‘Green house effect’ and leachate causing contamination of ground
water resource.
3. In order to provide a sustainable solution to the ever increasing problem of
disposal of waste, especially in the larger cities in Maharashtra, setting MSW to
energy projects is the only effective solution therefore such projects should be
promoted and the promoters should be given incentives to develop such
projects.
4. As stated earlier, the mass-burn combustion technology proposed by the
petitioner has several distinct advantages as i) lowest life cycle cost, ii) needs
less land area , iii) produces more power with less waste iv) causes maximum
volume reduction.
5. It is true that as per the MSW (management and handling) Rules 2000, the
disposal of waste is the primary responsibility of the urban local bodies. These
rules require all local self governments to establish scientific solid waste
processing facilities on or before 31st December 2003. However despite these
rules there has not been any material improvement in MSW management
practices across India. The compliance rate of Indian Municipal Corporations
with the MSW Rule 2000 is very low essentially due to the limited financial and
technical resources with the municipalities. The Hon Appellate Tribunal of
Electricity (ATE) in its recent judgment in appeal No. 197 of 2010 & IA nos. 276 &
277 of 2010 dated 16 September 2011 in the matter of Solapur Bioenergy
Systems Pvt. Ltd., ruled that “the Municipal Corporations would fulfill its
obligation under the MSW 2000 Rules once it has done the simple segregation
for environment point of view, processing and disposal of the municipal waste.
The Municipal Corporation is not required to undertake specified segregation for
making MSW ready as a fuel. There is no obligation of the Municipal Corporation
in absolute term that all waste should be completely processed and utilized to
the full extent”. The ATE further ruled that the Commission should consider the
pre-treatment cost associated with the segregating /screening of the waste
under the capital cost while specifying generation tariff for MSW power
projects.
6. The Commission may also consider the environmental and social importance for
promoting such waste to energy projects and the fact that it generates power
and simultaneously disposes of the MSW in a scientific manner. Hon.
30
Commission may consider the future fuel cost escalations and environmental
externalities associated with conventional power projects while justifying the
higher tariff for the electricity generated from MSW power plants.
c) Justification for the proposed technology, capital cost and Tariff
1. Observations from the National Master Plan (NMP) for development of WTE
projects in India (Assessment of Municipal Solid Waste to Energy Technology)
Technical Memorandum on Waste to Energy Technology, National Master Plan for
Development of Waste to Energy in India under Assessment of Municipal Solid WTE
technologies has made an evaluation of the applicability of the technologies of
biomethanation, gasification/pyrolysis, incineration and land filling as Waste to Energy
options in the global context. The evaluation results are given below.
Table 2: Evaluation of Global Waste to Energy Technology Option
SN Evaluation criteria Rating Biological processes Thermal processesB L C I G
A System Configuration1 Simplicity & Operability 0-12 8 12 12 4 42 Process flexibility 0-12 8 10 8 4 43 Scale up 0-6 6 4 4 6 6
Sub Total 0-30 22 26 24 14 14B System Auxiliaries4 Pre-treatment 0-20 12 8 10 8 85 Post-treatment 0-10 6 6 6 6 6
Sub Total 0-30 18 14 16 14 14C Environmental Aspects6 Environmental Impacts 0-30 25 15 15 5 15
Sub total 0-30 25 15 15 5 15D Resource Recovery7 Energy and By products 0-30 20 12 4 20 24
Sub total 0-30 20 12 4 20 24E Commercial Aspects8 Capital cost 0-12 6 4 4 4 49 O& M 0-12 10 6 4 4 610 Track record 0-6 6 6 3 6 3
Sub total 0-30 22 16 11 14 13Total 150 107 83 70 67 80
Source: National Master Plan for development of WTE in India (technical memorandum on WTE
technology)
Note: B – Biomethanation, L – Landfill with gas recovery, C – Composting, I – Incineration, G-
Gasification processes
31
In the analysis presented in the above table, the incineration / combustion technology
scores an overall rating of 67 out of 150 with technical, commercial and environmental
factors.
2. Recommendation under National Master Plan for development of waste to
energy projects
MNRE in the document titled “Technical Memorandum on Waste to Energy Technologies”
has assessed all the available potential technologies for Municipal Solid Waste to Energy
projects on the basis of certain criteria such as system configuration, system auxiliaries,
environmental aspects, resource recovery and commercial aspects. The study underlines the
advantages of the incineration / combustion technology as given below:
Advantages of Mass-Combustion Systems
Mass- combustion systems have larger capacities and higher thermal efficiencies
Mass-combustion systems, as compared to modular systems, generate a higher-
quality steam, allowing for higher revenues per tonne of waste
These facilities can accept refuse that has undergone little pre-processing other than
the removal of oversized items
Mass- combustion avoids many of the refuse handling problems caused by the
extreme heterogeneity and variability of MSW
The net energy conversion can be equal to or better than that for RDF systems, since
minimal energy is used for front-end processing and no burnable material is
removed
Since most of the burning occurs on the grate, less particulate matter is entrained in
the gas stream and air pollution control costs are thus reduced
The units are compact and therefore land requirements are less than for RDF
3. Justification for capital cost, tariff and long term benefits of proposed WTE
technologies.
i. The NMP for development of WTE under technical memorandum on investment and
funding strategies has compared the available technological options in terms of
capital cost; O&M cost, project life etc. The final results as given in the referred
technical memorandum are reproduced below:
32
(Source: Financial analysis of MSW WTE facility under technical memorandum on investment
and funding strategies, page no – Chapter 3-8)
The above cost bench marks are based on year 2002 -03 data. As per above analysis
, for a typical 150 TPD capacity MSW power plant based on RDF based incineration
technology, the capital cost is Rs 14 Cr and O& M cost is around 13.57% of capital
cost. Recently Gujarat Electricity Regulatory Commission approved Rs 14 crore / MW
as capital cost for combustion based Waste-To-Energy (WTE) power project of
Abellon Clean Ahmadabad Limited to process and dispose the Municipal Solid Waste
in case no 1334 of 2013 dated 23 December 2014.
ii. The Petitioner would like to mention that the proposed tariff of Rs 7.44/kWh is a
levellised tariff computed over the useful life of the plant (20 years) and will remain
constant for 20 years after commissioning of the plant.
On the other hand the cost of fossil fuel is going to increase in future as the reserves
of coal and natural gases are depleting at an alarming rate. Similarly, a substantial
part of the fossil fuel is imported from the politically sensitive countries. This will
certainly increase the average power procurement cost of the DISCOMs in the state
in near future.
D. Cost of generation and proposed tariff
a) Cost Break Up for proposed 1.8 MW WTE Power Project at Kolhapur
Sr. No. Project Cost Amount (Rs lakh)1. Civil Work for Plant & Machinery 613.422. Plant & Machinery 1666.683. Total of Plant & machinery (EPC cost)(1 +2) 2280.104. Financing cost @ 1.50% of the EPC Cost 34.205 Preliminary and pre-operative expenses @ 4% of EPC Cost 91.206 Interest during construction 77.187. Total Project Cost (3+4+5+6) 2482.68
FinancingOption
Units Capacity (1000 TPD) Capacity (500 TPD) Capacity (150 TPD)
Technology Biomethanation
Gasification
RDF –INC
Biomethanation
Gasification
RDF INC Biomethanation
Gasification
RDFINC
Project Life Years 15 15 15 15 15 15 15 15 15
Capital Cost Rs.Lakhs
10000 21904 6483 6000 13000 3890 1800 4600 1400
O&M % of CC 8.5 7.43 13.54 8.33 6.5 13.55 9.44 6.5 13.57
33
b) Summary of Quotations of Plant & Machinery
A table showing break up of cost for Indigenous plant and machinery and imported plant
and machinery - including Basic cost , Excise duty / custom duty , VAT, Insurance,
transportation , erection etc.
c) Basis for selecting Tariff parameters
1. The petitioner has studied the tariff related provisions outlined in MERC (terms and
conditions for determination RE tariff) Regulations 2015, National Tariff Policy, and the
RE tariff Regulation notified by CERC as well as the ruling of ATE in case of Appeal No.
197 of 2010 & I.A. nos. 276 & 277 of 2010 dated 16 September 2011.
2. As specified in clause no 8.2 of MERC (terms and conditions for determination RE tariff)
Regulations 2015, the petitioner has adopted Project specific tariff computation
methodology for the proposed MSW to energy project at Kolhapur. Accordingly, a
single-part levellised tariff worked out over the life of the project (20 yrs) based on cost-
plus approach for procurement of electricity from the proposed MSW power plant at
Kolhapur.
3. As specified in the MERC (terms and conditions for determination RE tariff) Regulations
2015, the financial parameter for other RE technologies except the capital cost, and
O&M are considered as ceiling norms for determination of project specific tariff for the
proposed MSW power project at Kolhapur. Particularly, the financial parameters as
Plant & Machinery(Rs. In Lacs)
Grab Indigenous 81.59
Crane Indigenous 69.93
Boiler Indigenous 472.40
Turbine Condenser cooling tower Indigenous 460.00
Grate with hydraulics (Imported) Imported 279.72
Flue gas treatment Indigenous 233.10
Transportation --------- 69.93
Total cost inclusive of ST 1,666.68
34
given in the MERC Draft RE Tariff Order for FY 2016-17 (Case No 45 of 2016:
Determination of Generic Tariff for Renewable Energy for the second year of the Review
Period from 1 April 2016 to 31 March 2017) dated 4 March 2016 has been considered
for the computation of the project specific tariff.
4. The capital cost and other operating parameters like O&M cost, capacity utilization
factor, Auxiliary consumption are considered as the Detailed Project Report prepared
for the proposed project.
d) The performance/operating and financial components considered for computation of
tariff for electricity generated from MSW power plant:
1. Capacity utilization factor: Considering the availability of MSW from KMC, variation in the
quality of MSW across the seasons, the Capacity utilization factor considered as 65%
during stabilization period (first year) and 80% for remaining period, which seems
reasonable for tariff computation.
2. Capital cost: Capital cost of the project is considered as given in para D (a) above.
3. Debt : Equity ratio: In case of the Debt : Equity ratio the MERC (terms and conditions for
determination RE tariff) Regulations 2015, specifies the same as 70:30. In case of the
change in equity contribution than that of 30% the regulation has following provisions:
If the equity contribution is less than the normative equity of 30% the actual equity
participation will be considered and if the equity contribution is more than that of 30%
then 30% will be considered while determination of tariff and the additional equity over
and above 30% will be considered as debt.
The petitioner has proposed to incur the Debt : Equity ratio as 65:35. However, the
petitioner proposes the Debt : Equity ratio as 70:30 in line with provisions of the MERC
(terms and conditions for determination RE tariff) Regulations 2015 for determination of
tariff for the said project
4. Term of the loan: The loan repayment period of 12 years is considered in line with the
clause 15.1 of the MERC (terms and conditions for determination RE tariff) Regulations
2015.
5. Interest on debt: In the MERC (terms and conditions for determination RE tariff)
Regulations 2015, Hon. Commission had considered interest on long term debt as 300
basis points above the SBI base rate prevailing in the previous year. Accordingly as given in
35
the draft RE tariff order for FY 2016-17, the base rate (9.56%) plus 300 basis point has
been considered as interest rate for tariff determination purpose. Therefore, the
petitioner has considered interest on debt as 12.56% per annum.
6. Working capital and interest on working capital: The petitioner has computed the
working capital in accordance with the MERC (terms and conditions for determination RE
tariff) Regulations 2015 comprising of (a) operation and maintenance cost for one month,
(b) receivables equivalent to 2 months of net energy charges for the sale of electricity
calculated on the normative CUF and (c) Maintenance spares @15% of operation and
maintenance expenses. The MERC RE Regulations 2015 allows interest on working capital
as SBI base rate plus 350 basis points. Accordingly the petitioner has consider interest on
working capital as 13.06 % per annum
7. Return on equity: MERC (terms and conditions for determination RE tariff) Regulations
2015 allows return on equity as base rate of 16% to be grossed up as per applicable tax
rate. The Regulations also provide that rate of Return on Equity shall be computed by
grossing up the base rate with the tax rate equivalent to Minimum Alternate Tax (MAT)
for the first 10 years from COD, and the normal tax rate for the remaining years of Project
life. Accordingly, as per prevailing tax rate, the base rate of 16% has been grossed up with
MAT (@21.34%) for first 10 years and with income tax (@ 34.61%) for remaining 10 years
of plant operation for the project specific tariff computation purpose.
8. Life of plant and machinery:, The petitioner has considered 20 years as the useful life of
the plant and machinery. Same was considered under RE Tariff Regulations 2010 as well
as for biomass and non fossil fuel based cogeneration projects under new RE tariff
regulation 2015.
9. Depreciation of plant and machinery: In line with MERC RE tariff Regulations 2015, the
depreciation is computed at the rate of 5.83% per annum for the first 12 years of Tariff
period and the remaining depreciation amount (up to 90% of capital cost) is spread over
the remaining useful life of the project (8 years).
10. Operation and maintenance expenditure: The clause 8.2 of MERC (terms and conditions
for determination of tariff from renewable sources of energy) Regulations 2015 allows to
consider the actual O&M cost while determining the project specific tariff for the waste to
36
energy project. The actual O&M cost for the proposed project is estimated at 6.6% of the
project cost (Rs 165 lakhs in first year).
Due to the pre-treatment (screening, shredding & segregation of waste) requirement the
O&M cost is slightly higher than the other RE power projects. The petition has considered
the actual O&M expenses of 6.6% of capital cost with an annual escalation of 5.72% per
annum for determination of tariff. Further, the petitioner has considered Rs 100 lakhs as
periodic maintenance cost (included in the O&M cost) in every three years. Considering
the nature of operation the petitioner humbly requests to consider the proposed O&M
costs.
11. Auxiliary consumption: The petition has considered the overall plant auxiliary
consumption of 20% of gross generation for the tariff computation purpose. The
petitioner has furnished 16% as a main plant equipment auxiliary consumption and 4% as
plant lighting, building services & transformer/other equipment losses. The details of
auxiliary consumption are as follows.
Auxiliary consumption details:
Sr.No.
Equipment PowerConsumption
(KW)
Workinghours in a
year
AnnualConsumption
(kWh)1 ID Fan 50.0 7,008 3,50,4002 FD Fan 30.0 7,008 2,10,2403 Boiler Feed Pump 86.0 7,008 6,02,6884 Cooling Water System 65.0 6,360 4,13,4005 Crane 30.0 4,225 1,26,7506 Trommel 35.0 5,618 1,96,6307 Fuel Feeding 30.0 4,220 1,26,6008 Plant Lighting 35.0 4,225 1,47,8759 Building services like air-
conditioning, fireprevention
25.0 8,760 2,19,000
10 Transformer & otherequipment loss
15.0 8,760 1,31,400
Total 401 25,24,983
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12. Income from sale of product: Bottom ash (30 TPD) which will be generated in the process
will be sold in the open market @ Rs 150 / Tonne. Yearly income has been calculated as,
yearly Income = TPD of by product (30 TPD) X rate of by product X capacity utilization
factor considered for the project (65% for first year and 80% for remaining period).
13. Income from tipping fee: As per the concessional agreement, tipping fee for 180 TPD @ Rs
308 /Tonne, without any escalation, has been also considered as income in the account of
project developer. Yearly tipping fee income has been calculated as, yearly Income from
tipping fee = TPD of MSW receive (180 TPD) X tipping fee rate X capacity utilization factor
considered for the project (65% for first year and 80% for remaining period).
14. Technical Parameter considered for determination of tariff for 1.8 MW of MSW to
power project located at Kolhapur
No Technical Parameters Value Unit1 Capacity of the Power Project 1.8 MW2 Capacity Utilization Factor (first year) 65.00% %3 Capacity Utilization Factor (remaining period) 80.00% %4 Annual Gross Generation (first year) 102 Lakh kWh5 Annual Gross Generation(remaining period) 126 Lakh kWh6 Auxiliary consumption 20% %7 Annual Net Generation (first year) 82 Lakh kWh8 Annual Net Generation (remaining period) 101 Lakh kWh9 Life of Plant and Machinery / Project Life 20 Years
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Financial Parameterconsidered for determination of tariff for Kolhapur MSW power project
No Financial Parameters Value Unit1. Cost of MSW Power Project 2482.62 Rs Lakh2. Non - Depreciable Amount 10.00% % of Capital Cost3. Depreciable Amount (Cap Cost Less non-depreciable Cost) 2234 Rs Lakh4. Debt Fraction 70% %5. Debt 1737.83 Rs Lakh6. Equity 744.79 Rs Lakh7. Interest Rate on Term Loan 12.56% %8. Repayment Period 12 Years9. Moratorium Period 0 Years10. Depreciation (Straight Line Method) - for first 12 years 5.83% %11. Discount Rate 10.55% %12. O&M cost 6.65% % of Capital Cost13. O&M Cost Escalation per annum 5.72% %14. Return on Equity (1-10 years) 20.34% %15. Return on Equity (11-20 years) 24.47% %16. Interest on working capital 13.06% %17. Subsidy from MNRE 0 Rs Lakh18. Amount of waste to be delivered per day 180 Tonne19. Tipping Fees to be received by developer from Corporation 308 Rs./Tonne20. Annual Tipping fee collection in First year 131.53 Rs. In Lakh21. Annual Tipping fee collection second year onwards 161.88 Rs. In Lakh22. Tipping Fees Escalation over 20 years 0% %23. Revenue from sale of by-products (ash) first year 10.68 Rs. In Lakh24. Revenue from sale of by-products second year 13.14 Rs. In Lakh
39
Levellised tariff (20 yrs) 9.18 Rs/kWhLevellised tariff (20 yrs) with internalization of tipping fee
and other income7.44 Rs/kWh
Year 11 12 13 14 15 16 17 18 19 20Net Energy sold
(lakh kWh) 100.9 100.9 100.9 100.9 100.9 100.9 100.9 100.9 100.9 100.9
Costs (Rs lakh)
9999 666.18 704.29 844.58 892.89 943.96 1097.95 1160.76 1227.15 1297.34 1471.55
Depreciation(SLM) 144.74 144.74 62.19 62.19 62.19 62.19 62.19 62.19 62.19 62.19
Interest onterm loan 2.27 0.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest onworking capital 39.01 41.01 46.65 49.23 51.95 60.18 63.53 67.08 70.83 80.13
Return onEquity 182.24 182.24 182.24 182.24 182.24 182.24 182.24 182.24 182.24 182.24
Total Cost 1034.44 1073.03 1135.65 1186.54 1240.34 1402.56 1468.72 1538.66 1612.60 1796.11Less: Incomefrom tipping
fee161.88 161.88 161.88 161.88 161.88 161.88 161.88 161.88 161.88 161.88
Less: Additionalincome from
sale ofbyproducts
13.14 13.14 13.14 13.14 13.14 13.14 13.14 13.14 13.14 13.14
Net cost 859.42 898.01 960.63 1011.52 1065.32 1227.53 1293.69 1363.63 1437.57 1621.08Gross Tariff(Rs/kWh) 10.25 10.63 11.25 11.76 12.29 13.90 14.55 15.25 15.98 17.80
Net Tariff (Rs /kWh) 8.52 8.90 9.52 10.02 10.56 12.16 12.82 13.51 14.25 16.06
Year 1 2 3 4 5 6 7 8 9 10Net Energy sold
(lakh kWh) 82.0 100.9 100.9 100.9 100.9 100.9 100.9 100.9 100.9 100.9
Costs (Rs lakh)
O&M 165.09 174.54 184.52 295.08 311.95 329.80 448.66 474.33 501.46 630.14Depreciation
(SLM) 144.74 144.74 144.74 144.74 144.74 144.74 144.74 144.74 144.74 144.74
Interest onterm loan 209.18 190.99 172.80 154.61 136.42 118.23 100.04 81.85 63.66 45.47
Interest onworking capital 16.90 16.27 16.40 21.89 22.39 22.94 28.88 29.85 30.89 37.36
Return onEquity 151.49 151.49 151.49 151.49 151.49 151.49 151.49 151.49 151.49 151.49
Total Cost 687.40 678.02 669.95 767.81 767.00 767.20 873.82 882.26 892.24 1009.21Less: Income
from tipping fee 131.53 161.88 161.88 161.88 161.88 161.88 161.88 161.88 161.88 161.88
Less: Additionalincome from
sale ofbyproducts
10.68 13.14 13.14 13.14 13.14 13.14 13.14 13.14 13.14 13.14
Net cost 545.19 503.00 494.92 592.79 591.97 592.17 698.79 707.23 717.22 834.18Gross Tariff(Rs/kWh) 8.38 6.72 6.64 7.61 7.60 7.60 8.66 8.74 8.84 10.00
Net Tariff (Rs /kWh) 6.65 4.98 4.90 5.87 5.87 5.87 6.92 7.01 7.11 8.27
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E. Prayer
1. Accept this petition for determination of tariff for supply of electricity from proposed MSW
power project at Kolhapur to Distribution licensees in Maharashtra. It is further requested
that the Hon. Commission may specify the levellised tariff for proposed MSW power plant
for 20 year tariff period which is useful life of the plant. The Hon. Commission may direct the
distribution licensee to execute the PPA with the petitioner for the specified tariff period.
2. Approve the final levellised tariff of Rs. 7.44/kWh for sale of electricity generated from
proposed MSW power project to distribution licensees in Maharashtra.
3. To grant an opportunity in person before Hon Commission during the hearing on the above
matter.
4. Condone any inadvertent omission/errors/short comings and permit the petitioner to
add/change/modify/alter this filing and make future submissions as may be required at a
future date.
Enclosures:
1. Covering letter of submission of original petition
2. Index of original petition
3. Enclosures of original petition