OPTIMISING GENERATIONSUNIL PARWANI

General Manager (Marketing)Bharat Heavy Electricals Ltd.

New Delhi

17TH India Power Summit on ‘Optimising Power Availability: Action Plan for

Next Decade’India Energy Forum

November 14, 2014 at New Delhi

• 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

POWER FOR NATION’S GROWTH

GDP Growth

Industry Growth

Growthin Power

Generating Capacity

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Power – The key driver for a Nation’s Economic Growth

India

Niger

China

Germany

JapanUSA

UK

Source: UNDP: Human Development Index, 2010

Energy Consumption: Giga Joules per capita per year

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

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POWER AND HUMAN DEVELOPMENTMagnified effect of increase in Energy Consumption on Human Development

10th largest economy in the world by nominal GDP; 3rd largest by GDP in PPP terms Second fastest growing economy

Accounts for 4.1% of world’s energy consumption

4th largest energy consumer ; fast moving to reach 3rd 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

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POWER POSITION IN INDIA

Fast Growth, but still substantial development needed in power sector

Power needs to be:

Environmentally sustainable, without compromising on economic and social development.

Affordable

Equitably accessible to all sections of society.

Acc. To Integrated Energy

Policy, 2006

Acc. To World Energy Outlook, 2013

Projected Installed Capacity (GW)

Projected Energy Demand (BU)

Acc. To World Energy

Scenario, 2050

Acc. To World Energy

Outlook, 2013

As on July

2014

FY2013-14

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POWER: PROJECTIONS AND OBJECTIVES

Projections suggest a strong need to augment the capacity

At about 1/3rd Levels of World Average

Electricity Consumption per capita per year (kWh), 2011

Source: IEA Key World Energy Statistics 2013; * CEA 2014; LGBR 2014-15

Electricity Deficit (MU) 2013-14

Peak Deficit (MW) 2013-14

42,4284.2%

6,1034.5%

Power shortage currently costs India a GDP loss of USD 68 Bn (~0.4 % of GDP)

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CAPACITY ADDITION ACHIEVEMENTSImpressive growth seen in recent Years... But still a long way to go ...

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ISSUES IN POWER SECTOR

Unfavourable environment for all stakeholders…

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Energy SecurityNeed to balance the ‘Energy Trilemma’

ENERGY SECURITY

ENVIRONMENTAL SUSTAINABILITY

ENERGY EQUITY

Creating a Resilient System

Reduced Dependence on

ImportsRedundancy

Diversity in Sources of

EnergyRobust

Infrastructure

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NEED FOR FOCUS ON AVAILABLE CAPACITY

Improving available power at lowest price

1.4 - 1.5

MW

Installed Capacity

1.0 MW

Available Power

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

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SUPERIOR PERFORMANCE OF BHEL SETS IN INDIAN MARKET

BHEL manufactured sets clocked higher PLF than national avg.

DEVELOPING NEW TECHNOLOGIES

Constantly innovating to cater future demands

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Advanced Ultra Super Critical Power Plant Project

Constantly innovating to cater future demands

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* Average performance of thermal sets during 2007-2011; Source: North American Electric Reliability Council (NERC); 2013

Performance of 400-599 MW Sets* Performance of 200-299 MW Sets*

84.73%

68.98%

10.41% 4.89%

86.80%85.78%

6.56%6.64%

Operating Availability

(OA)

Plant Load Factor (PLF)

Planned Maintenance

Forced Outages

due to Equip.

NERC member countries (North America, Canada, Europe part) BHEL Sets

85.73%

62.80%

9.74%4.51%

88.97%80.16%

6.15% 4.89%

Operating Availability

(OA)

Plant Load Factor (PLF)

Planned Maintenance

Forced Outages

due to Equip.

84.73%

68.98%

10.41% 4.89%

86.80%85.78%

6.56% 6.64%

Operating Availability

(OA)

Plant Load Factor (PLF)

Planned Maintenance

Forced Outages

due to Equip.

WORLD CLASS PERFORMANCE

Demonstrating superior performance than international benchmarks

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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

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PEAK LOAD V/S BASE LOAD

Need for diverse Fuel-Mix

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• 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’

Recent Developments and Other Initiatives

For Long-term Power Optimization

Energy Efficiency

• Gas Pricing Revision/Pooling of Gas prices• Plan to pool Imported and Domestic coal prices

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

Part Load operations

Significant logistics benefits are possible if domestic and imported coals are swapped between power plants.

Linkage rationalization

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

CONCLUSION

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THANK YOU

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BACK UP

Bird’s eye view of Bhopal Plant New Turbine Blade shop at Haridwar

MANUFACTURING PROWESS (20,000 MW p.a.)

Keeping abreast with latest technological advancements

Gas Turbine Rotor at Hyderabad Hydro Turbine at Bhopal

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Steam turbine rotor at Hyd8000 tonnes hydraulic press at Trichy

Pipe Bender at Trichy

MANUFACTURING PROWESS (20,000 MW p.a.)

Keeping abreast with latest technological advancements

Generator shop at Haridwar

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MAJOR DOMESIC MANUFACTURING CAPACITIES

Manufacturer SG Capacity TG Capacity  (MW) (MW)

BHEL 20,000 20,000

L&T-MHI 4,000 4,000

Alstom-Bharat Forge 0 3,000

Toshiba-JSW 0 3,000

Thermax-Babcock Wilcox 2,000 0

Doosan 2,000 0

Ansaldo-Gammon 0 0

BGR-Hitachi 0 0

TOTAL (MW) 28,000 30,000

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PARAMETERS OF THERMAL POWER PLANT

HPT inlet temp

oC

IPT inlet temp

oC

Pressureata

Efficiency%

Sub-critical 565 565 170 38.6

Super-critical 565 593 247 41

Ultra Super-critical 600 600 280 42

Advance Ultra Super-critical

710 720 310 46

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INFERIOR PERFORMANCE OF CHINESE SETS - IMPACT ON HEAT RATE

Sl. No.

DESCRIPTION FORMULA UNIT BHEL SETS CHINESE SETS DIFFERENCE

A TOTAL CAPACITY (Chinese sets commissioned in XI Plan) 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) 1,59,31,81,20,000 1,59,31,81,20,000

C NO OF UNITS GENERATED IN ONE YEAR AT 85% PLANT LOAD FACTOR (PLF)

B x 0.85 KWHr (UNITS) 1,35,42,04,02,000 1,35,42,04,02,000

D COST OF COAL CONSIDERED RS / TONNE 2,000 2,000

E GROSS CALORIFIC VALUE (GCV) OF COAL CONSIDERED (*) KCAL / KG 3,300 3,300

F OPERATING HEAT RATE (OHR) - as per CEA Report KCAL / KWhr 2,520 2,719 199

G SPECIFIC COAL CONSUMPTION F / E KG / KWhr 0.76 0.82 0.06

H TOTAL COAL CONSUMPTION IN ONE YEAR FOR GENERATION CORRESPONDING TO 85% PLF

G x C / 1000 TONNES 10,34,11,943 11,15,78,204 81,66,261

I TOTAL COST OF COAL FOR UNITS GENERATED ANNUALY H x D / 10000000 RS CRORE 20,682.39 22,315.64 1,633.25

ANNUAL ADDITIONAL RECURRING COAL COST WITH CHINESE SETS = RS. 1,633.25 cr.= Rs 40,831 crs.

(*) BASED ON GROSS CALORIFIC VALUE (GCV) OF BEST COAL SPECIFIED IN RECENT NTPC TENDER (NORTH KARANPURA)

18,187

ADDITIONAL RECURRING COAL COST WITH CHINESE SETS DURING LIFE TIME (25 yrs)

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INFERIOR PERFORMANCE OF CHINESE SETS - IMPACT OF SECONDARY FUEL CONSUMPTION

Sl. No.

DESCRIPTION FORMULA UNIT BHEL SETS CHINESE SETS DIFFERENCE

A TOTAL CAPACITY 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) 1,59,31,81,20,000 1,59,31,81,20,000

C NO OF UNITS GENERATED IN ONE YEAR AT 85% PLANT LOAD FACTOR (PLF)

B x 0.85 KWHr (UNITS) 1,35,42,04,02,000 1,35,42,04,02,000

D COST OF SECONDARY FUEL OIL (HEAVY FUEL OIL - HFO) (*)

Rs / Litre 52.50 52.50

E SECONDARY FUEL OIL CONSUMPTION PER UNIT ml / KWhr 3.06 6.13 3.07

F TOTAL SECONDARY FUEL OIL CONSUMPTION IN ONE YEAR FOR GENERATION CORRESPONDING TO 85% PLF

E x C / 1000 LITRES 41,43,86,430 83,01,27,064 41,57,40,634

G TOTAL COST OF SECONDARY FUEL OIL FOR UNITS GENERATED ANNUALY

F x D / 10000000 RS CRORE 2,175.53 4,358.17 2,182.64

ANNUAL ADDITIONAL RECURRING COAL COST WITH CHINESE SETS = RS. 2,183 cr.= Rs 54,566 crs.

(*) BASED ON HFO RATE SPECIFIED IN OPGCL TENDER FOR IB VALLEY

18,187

ADDITIONAL RECURRING COAL COST WITH CHINESE SETS DURING LIFE TIME (25 yrs.)

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High capacity Addition of 55 GW during XI Plan almost equal to combined achievement of previous 3 plan period

Targ

et

CAPACITY ADDITION ACHIEVEMENTS

Achievement in 5 Year Plans

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