4/23/20151 CO-GENERATION - AN INDIAN MODEL VINAY KUMAR MANAGING DIRECTOR

4/23/20152 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

4/23/20153 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

4/23/20154 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 oil Most of this energy consists of non-renewable sources and thereby in effect unsustainable.

4/23/20155 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

4/23/20156 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

4/23/20157 INDIAN ENERGY SCENARIO Total population billion Rural population -0.7 billion Total number of villages -640,000 Number of un-electrified villages-125,000

4/23/20158 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 %

4/23/20159 POWER GROWTH PERSPECTIVE * Electricity demand 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

4/23/ 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 *The Government vision is to provide power to all citizens.

4/23/ RENEWABLE ENERGY IN INDIA - POTENTIAL Wind Power MW Small Hydro MW Biomass Power MW Bagasse Cogen MW Solar Energy - 20 MW/Sq Km Waste to Energy MW

4/23/ BIOMASS TYPES OF BIOMASS WHICH CAN BE USED Agricultural Field Residues Agro Industrial Residues Bagasse Wood from plantation Waste wood from industrial operations

4/23/ CONVERSION TECHNOLOGIES Biomass Technologies Currently Deployed Combustion Gasification Cogeneration Bagasse cogeneration in sugar mills Non-bagasse cogeneration in other industries

4/23/ STATE WISE POTENTIAL OF CO-GENERATION IN SUGAR INDUSTRY Sl.NoName of StatePotential to export of power in MW 1.Uttar Pradesh & Uttarakhand Haryana350 3.Punjab300 4.Andhra Pradesh300 5.Tamil Nadu450 6.Karnataka450 7.Maharashtra Bihar300 9.Gujarat350 All India Total5000

4/23/ State

4/23/ STATE WISE STATUS OF CO-GENERATION StateNumber of unitsTotal Co-generation (MW) Uttar Pradesh Punjab341.0 Andhra Pradesh Tamil Nadu Karnataka Maharashtra Bihar223.0 Total

4/23/201517

4/23/ 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.

4/23/ *Preferential tariff in 14 states. *Ministry of Food provide concessional loan for Co-generation 4% to the 40% of the project cost. *Ministry of New and Renewable Energy also grant capital 60 lacs per MW upto the maximum of 8 crores per project.

4/23/ INDIAN MODEL OF CO-GENERATION.

4/23/ 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/cm 2 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.

4/23/ *Replacing of the existing inefficient turbines drives for fibrizer / shredder with H.T. motors after installation of Co-generation plant.

4/23/ INVESTMENT:- S.No.Details of EquipmentsCost 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. : )Replacement of mill drive turbine with AC VFD motors & transformers, cabling etc. : )Replacement of fibrizer / shredder turbine drive with HT motors, starters & cabling etc. : )Miscellaneous:5.00 Total: Less : Scrap value of discarded equipments approx. :40.00 Net : Total expenditure:Rs USD million

4/23/ RETURN ON INVESTMENT:- Thus, the return on investment is less than 3 years. S.No.DescriptionUnitsValue 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 KWH154 2)In house consumption per tonne of crush (30 KWH/ Tonne crush at peak capacity) KWH30 3)Exportable power per tonne of cane (154 – 30) KWH124 4)Revenue earning per tonne of cane crush through power Rs x 124 KWH Rs )Revenue earning in one season of cane crush through power 4.00 x 124 x Rs39.60 million i.e. USD-8.8 million

4/23/ B-CASE STUDY NEW 5000 TCD SUGAE PLANT MAIN EQUIPMENTS AND THEIR COST:- S.NoDetails of EquipmentsCost in Million (Rs.) 1)Sugar Plant TCD:Rs )Boiler-120 Tonne, 87 Kg/cm 2 g.:Rs )T.G.Set-25 MW.:Rs )Switch Yard & Electrical:Rs )Miscellaneous:Rs Total:Rs USD million

4/23/ RETURN ON INVESTMENT (Power Export):- S.No.DescriptionUnitsValue 1)Capacity:TCD5000 2)Working days:days160 3)Cane crush:lac Tons8 4)Bagasse generation 32% on cane:lac Tons2.56 5)Steam generation at a ratio of 2.4:lac Tons6.14 6)Power generation at a rate of 5 tons steam / MWH :MWH1,22,800 7)In house consumption 30 KWH per ton of crush :MWH )Exportable power (6-7):MWH )Revenue Rs / MWH (Rs. 4.00/ KWH) :MillionRs )Earning in 3 season Rs x 3:MillionRs

4/23/ EXECUTION OF TIME REQUIRED 1)Planning & Placement of order:2 Months 2)Execution & Erection:10 to 12 months Total:12 to 14 months

4/23/ PERFORMANCE DATA Performance 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.ParticularsYearsTotal )Cane crush (Tonnes) )Power generated (MWH) )Net exported power (MWH) )Revenue 3.00 / KWH (Rs.) lacs million 5) Return on investment -< 3 years

4/23/ 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.

4/23/ OVERALL VIEW OF POWER PLANT

4/23/ CONTROL ROOM

4/23/ VIEW OF BOILER

4/23/ VIEW OF ALTERNATOR

4/23/ VIEW OF COOLING TOWER

4/23/ VIEW OF SWITCH YARD 11kv/132 kv

4/23/ THANKS NATIONAL FEDERATION OF COOPERATIVE SUGAR FACTORIES LIMITED ‘ANSAL PLAZA’ BLOCK-C, 2ND FLOOR AUGUST KRANTI MARG, NEW DELHI (INDIA) Tel. : , , Fax : ,