4 th MAY 2007 CHALLENGES OF POWER SECTOR IN KARNATAKA WHAT ARE THE OPTIONS BY L.V.NAGARAJAN, IAS MD KPCL

WHY ENERGY AND ELECTRICITY ? REMOVE DARKNESS INCREASE WORKING HOURS IMPROVE PRODUCTIVITY MUST FOR ERADICATING POVERTY AND HAVE ECONOMIC DEVELOPMENT

PLACE WORLD USA INDIA CHINA QUADRILLION BTU PRIMARY ENERGY CONSUMPTION

PLACEENERGY KGOE ELECTRICITY KWH INDIA CHINA WORLD USA PER CAPITA CONSUMPTION(2001) 1000 KG(1 MT) OF OIL EQUIVALENT = KCAL

ENERGY VS GDP CONTRIBUTION OF FACTORS OF PRODUCTION( % OF GDP) GDP GROWTHENERGYLABOURCAPITAL TOTAL FACTOR PRODUCTIVITY Brazil China India Indonesia Korea Mexico Turkey United States

Power Development in Karnataka NATIONAL PICTURE Energy Elasticity 0.82 since Electricity generation Elasticity1.06 Per Capita Electricity Consumption (Kwh/Yr.) INDIA606 CHINA1,379 USA13,243 WORLD2,436

Power Development in Karnataka Integrated Energy Policy Prescriptions   To sustain 8% GDP growth,eradicate poverty and meet human development goals increase GENERATION   Present Capacity mw   mw Despite above Per-capita will be where we are

WHAT IS NEEDED ! INVESTMENTS IN GENERATION INVESTMENTS IN TRANSMISSION & DISTRIBUTION ENABLING A COMPETETIVE ENVIRONMENT MANAGING THE ENVIRONMENT,INFRASTRUCTURE AND PEOPLE

Power Development in Karnataka GROWTH of KPCL Capacity addition in state KPCL's CUM. capacity (45 years) before Independence (22 years) -prior to KPCL (746mw transferred to KPCL) TOTAL After formation of KPCL : (25 years) with Budgetory Support: (incl.127mw from KEB) : (9 years) Commercial Borrowing VVNL MERGER TOTAL

ALL INDIA - 1,27,673 MW As on KARNATAKA MW KPCL- 4640, * VVNL IPP & CGS RES = Renewable Energy Source Installed Capacity * VVNL – Being merged with KPCL

Installed Capacity Total capacity: About 4995 MW

 Oldest state owned Power Generating Company - constituted in 1970  First state to unbundle generation from T&D  Growth in installed capacity from 746 MW (1970) to 4995 MW  Assets of about Rs crores ( ).  Annual turnover of Rs crores ( ).  Competent technocrats, administrators - a strong workforce of about 6737 Personnel About KPCL

1. HYDEL Supa - 2 x 50= Nagjhari - 3 x 135+3x150= Kadra -3 x 50= Kodasalli - 3 x 40= Linganamakki - 2 x 27.5 = Sharavathy-10 x 103.5= Gerusoppa - 4 x 60 = Varahi - 2 x 115= Mani Dam - 2 x 4.5= 9.00 Ghataprabha - 2 x 16 = Mallapur - 2 x 4.5 = 9.00 Mini hydels (3 nos.)= 1.75 Bhadra (2 stations)= Almatti - 1 x x 55= Total Hydel= RTPS - 7 x 210 = Grand Total = MW KPCL Projects Kali Hydro Electricity Project Sharavathi Hydro Electricity Project Varahi Hydro Electricity Project Mini Hydro Electricity Projects Krishna River Basin Project 3. Kappatagudda wind = 4.55

Other Projects Power StationCapacity in MW DG Plant, Yelahanka Shivasamudram42.00 Shimsha17.20 MGHE, Jog falls Munirabad28.00 Total354.32

Raichur Thermal Power Station

Outstanding Achievements RTPS – Record generation of MU on at PLF % KPCL has generated a record generation of MUs from all its stations on Shivanasamudram – Record generation of MU in Oct- 06 surpassing earlier record generation of MU during Dec CEA Awards:CEA Awards: ADPH Unit No.3 & 6 selected as ‘Best Executed Hydro Power Station’ for and ’ respectively. Varahi Power House has been selected for ‘Best Hydro Performance Awards of the year ’.

Almatti Dam and Power House View of site on

LOAD FORECAST UNRESTRICTED ENERGY REQUIREMENT IN MILLION UNITS YearTrend MethodAnalysisEnd UserScenerio-1Scenerio-2Scenerio

LOAD FORECAST PEAK DEMAND IN MW WITH 65% LOAD FACTOR YearTrend MethodAnalysisEnd UserScenerio-1Scenerio-2Scenerio

Power Development in Karnataka INSTALLED CAPACITY TODAY(MW) KPCL4995 IPP & NCE1873 CENTRAL SHARE1596 TOTAL8463

Power Development in Karnataka PROBLEMS AND ISSUES   Environmental Issues - Rehabilitation   Interstate Issues - Sharing Water   Finders as Keepers - Coal   Finding Water   Finding Gas

Projects Pending due to Interstate Issues 1. 1.Mahadayi Hydro Electric Project:320 MW 2. 2.Mekedatu Hydro Electric Project: 360 MW 3. 3.Shivasamudram Seasonal Scheme: 270 MW 4. 4.Hogenakal Scheme:200 MW 1. 1.Bedthi Hydro Electric Project:400 MW 2. 2.Gangavali Hydro Electric Project: 400 MW 3. 3.Tattihalla Augmentation Scheme: 270 MW 4. 4.Kalinadi Hydro Electric Project-Stg-III:200 MW 5. 5.Aganashini Hydro Electric Project:600 MW 6. 6.Barapole Hydro Electric Project:600 MW Projects Pending due to Environmental Problems

INDEX SOURCE DISTANCE IN Km. SCCL 550 WCL 660 MCL : ALL RAIL ROUTE 1550 RAIL SEA RAIL 1850 SCCL BPA - BELLAMPALLI MMZ - MANDAMARI MCI - MANCHERIYAL RDM -RAMAGUNDAM SYI - YELLANDU WCL PRPI -PANDARPOVNI SASTI - SASTI SIDING MCL TALCHER COAL SOURCES MAP MCL WCL SCCL

Coal requirement for RTPS Total quantity of coal required for seven units operation at 90% PLF is 77 lakh MT per annum. Total cost of coal required is Rs.1900 Crores Per annum. Coal for RTPS is sourced from three different points. Committed quantity as per FSA in M MT a)SCCL3.40 b)WCL2.50 c)MCL1.80 Total:7.70

Fly Ash Transportation to Cement Industries

CO2 EMISSIONS(MILL MT) WORLDINDIAUSA OIL COAL GAS TOTAL

BTPS Plant Marlihalla Kampli Gangavathi Daroji Tank Jindal Hospet Bellary Sandur

Pipe laying completed

Power Development in Karnataka What then ?   More KPCL projects   Private projects   Central projects, Nuclear option,Green power   Merchant Power   Intermediaries,trading

Power Development in Karnataka TECHNOLOGY ISSUES   Supercritical Cycles,IGCC   Increased Cost   Capacity issues-   Shortage of Vendors,Welders,barbenders   Boilers for varieties of Coal

VISION Projects with less constraints A Hydro Projects Capcity in Mw Energy in MUCost Rs. Crores 1 Gundia Cauvery SS Total B Pumped Storage Schemes 1 Sharavathi Basin C Thermal Projects 1 BTPS D. Gas Based Stations 1 Bidadi Yelahanka Almatti Total Grand Total

Power Development in Karnataka Projects for XI Plan & Early XII Plan ProjectCapacity (MW) Period KPCL THERMAL Bellary Thermal Power Station Stage-I500June-07 Raichur Thermal Power Station -VIII250Dec-09 Bellary Thermal Power Station Stage-II500Dec-10 Kudgi1000Mar-12 Raichur Thermal Power Station Stg-II500Jun-12 Kowshika1000Mar-13 Bidadi Gas based project ?1400Mar-13

Power Development in Karnataka Projects for XI Plan & Early XII Plan ProjectCapacity (MW) Period KPCL HYDEL VARAHI UNITS 3&4230Nov-08 GUNDIA HYDRO PROJECT400Dec-13 IPP 500Dec-10 NAGARJUNA1015Dec-11 CENTRAL PROJECTS (XI PLAN) 2000Jun-12

A. ON - GOING PROJECTS Capacity in MW Energy in MU Cost in Rs Crores Commsng. BTPS Unit ,100 May-2007 VARAHI-UNITS-3&4230Peaking291Nov-2008 RTPS Unit – 8 ( LOI ) Apr-2009 BTPS Unit – 2 ( LOI ) ,096Mar-2010 R & M OF NPH45Peaking Grand Total 1,5258,7605,457 Ongoing Projects

Boiler structure Chimney: 275 m Ht ESP Cooling Tower : m ht Station Building Zero date Bellary Thermal Power Plant Unit

Stator (265 MT) Moving over the New Railway line & Bridge constructed by KPCL near the Plant

Power Development in Karnataka Should Adding Capacity alone be the Solution?   T & D Loss Reduction   Demand Side Management   Energy Efficiency – Bulbs, Motors

PRIORITIES FOR THE GOVERNMENT LIQUIDATE ARREARS OF RS 2500 CR ENSURE CURRENT PROMPT PAYMENT FROM ESCOMS GET COAL BLOCKS ALLOTTED RESERVE 25 TMC OF WATER FOR THERMAL PROJECTS GET GAS ALOTTED FOR BIDADI PROJECT HANDLE INTRA STATE AND ENVIRONMENTAL ISSUES