Cogeneration by sugar industry PSMA.pdf

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    Presently energy crisis is at its peak depicting demand supply gap of5000 MW approx, due to

    In efficient/ redundant plant technologies

    Higher cost of production due to dependence on ever increasing

    Heavy Line Losses.

    resulting in mass ve oa s e ng,

    shutdown of economic & industrial activities,

    affecting daily life.

    No major power plants are in pipe line to commensurate this shortageand several existing plants are in-efficient & needrehabilitation/replacement leading this shortage to more than 6000MW by 2011.

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    There is a stron need to ex loit alternative indi enous resources

    for power generation i.e. from renewable source of energy whichinclude

    ba asse

    coal

    wind

    solar

    bio-gas etc.

    Resulting in

    At cheaper cost

    Reduction in line losses due to proximity of grid to rural areas

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    produces both electricity (or mechanical power) andvaluable heat from a single fuel source. The potential to

    make electricit is utilized thereb reducin the cost of

    energy and pollution.

    . .

    bagasse, rice husk, wood waste coal etc.

    time around the globe like, Reunion, Mauritius, USA, India

    and Brazil etc

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    x

    configuration approach is adopted. Both units wouldhave dual fuel bagasse / coal burning capability.

    x Spreader Stocker boiler technology is used in this

    configuration. This technology of boiler is already inuse by bagasse and coal cogeneration projects in

    many parts of the world.

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    120

    80

    100

    40

    60

    20

    0

    2010 2007 2001 1994 1992 1990

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    Sugar mill supplies bagasse to power plant and in return

    rece ves ow pressure s eam an e ec r c y or s energy

    requirements.

    The excess electricity is transmitted to national grid.

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    83 sugar mills are operative in Pakistan with great

    -

    technologies of cogeneration

    Province wise data is given below:

    Province Cane Crushed(ton)

    Bagasse Produced(tons)

    Approx.

    CogenerationPotential

    (MW)

    Punjab 26,601,603 7,980,480 3,000

    Sindh 11,626,978 3,488,090 1,300

    NWFP 2,255,395 676,620 250

    Total 40,483,976 12,145,190 4,550

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    resources Cheap electricity as compared with oil based projects

    ue o s r u on o na ona gr w n s or s ancewill results in:

    a) Saving in transmission losses, infrastructure and

    b) Stabilizing of the grid voltage

    These can be installed on Fast Track Basis.

    Mutual benefits to power sector and sugar industrywhich will ultimately transferred to farmers community.

    Contribution towards economic prosperity for Pakistanspecially for underdeveloped areas.

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    PSMA has been striving hard to initiate powercogeneration with captive bagasse and coal bysetting up high pressure boilers and large sizegenerators with a view to supply surplus power tothe National Grid.

    PSMA has been pursuing the GoP for promotingelectric power co-generation utilizing captive

    imported/local coal as alternate fuel during offseason.

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    The National Policy for Power Cogeneration by sugar

    industry was approved by Economic Coordination Committee

    (ECC) of the Cabinet vide case no. ECC-169/13/2007 dated

    13 Nov, 2007.

    In pursuance of ECC decision, Private Power and

    infrastructure Board (PPIB) published the National Policy for

    Power Co-generation by sugar industry and guidelines for theinvestors in January, 2008.

    In ursuit of this olic PSMA filed a tariff etition to NEPRA

    along with feasibility of cogeneration plant of 60 MW capacityon 23 Jan, 2008 proposing a tariff of US Cents 11.115/KWH.

    Subsequently public hearings, meetings etc and all

    requirements of NEPRA have already been complied with.

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    ,

    determined a levelized tariff of US Cents 8.286/KWH againstPSMAs proposed tariff of US Cents 11.115 /KWH.

    Recently Cabinet has directed NEPRA for determination of

    Upfront Tariff for Cogeneration for Sugar Industry.

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    Com arison of Tariff for Su ar Industr and IPPs is iven below.

    Tariff Comparison/ Observations

    Tariff Components

    e erence arfor IPP's (Furnace Oil )

    n ca ve arFor Sugar Industry

    Rs / Kwh Cent / Kwh Rs / Kwh Cent / Kwh

    Total Capacity Charge 2.83 4.49 2.41 3.59

    Total Energy Charge 5.23 8.31 3.14 4.69

    Total Tariff 8.06 12.80 5.55 8.28

    However, on current oil prices, the power tariff for furnace oil based

    IPPs is about 19.5 cents / Kwh and 26.5 cents /Kwh for IPPs when

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    opera ng on ese ur ng non-comm men s mon s o na ura gas.

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    In the end, we would like to thank honorable ChiefMinister of Punjab for his precious time and Punjab

    opportunity for this presentation.

    Any questions / queries related to this presentation

    are encouraged.

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