2. 4/23/20151 CO-GENERATION - AN INDIAN MODEL VINAY KUMAR MANAGING DIRECTOR

3. 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. 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

5. 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.

6. 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

7. 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

8. 4/23/20157 INDIAN ENERGY SCENARIO Total population -1.18 billion Rural population -0.7 billion Total number of villages -640,000 Number of un-electrified villages-125,000

9. 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 %

10. 4/23/20159 POWER GROWTH PERSPECTIVE * Electricity demand growing @ 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

11. 4/23/201510 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 2012. *The Government vision is to provide power to all citizens.

12. 4/23/201511 RENEWABLE ENERGY IN INDIA - POTENTIAL Wind Power - 48000 MW Small Hydro - 15000 MW Biomass Power - 16000 MW Bagasse Cogen - 5000 MW Solar Energy - 20 MW/Sq Km Waste to Energy - 2500 MW

13. 4/23/201512 BIOMASS TYPES OF BIOMASS WHICH CAN BE USED Agricultural Field Residues Agro Industrial Residues Bagasse Wood from plantation Waste wood from industrial operations

14. 4/23/201513 CONVERSION TECHNOLOGIES Biomass Technologies Currently Deployed Combustion Gasification Cogeneration Bagasse cogeneration in sugar mills Non-bagasse cogeneration in other industries

15. 4/23/201514 STATE WISE POTENTIAL OF CO-GENERATION IN SUGAR INDUSTRY Sl.NoName of StatePotential to export of power in MW 1.Uttar Pradesh & Uttarakhand1250 2.Haryana350 3.Punjab300 4.Andhra Pradesh300 5.Tamil Nadu450 6.Karnataka450 7.Maharashtra1250 8.Bihar300 9.Gujarat350 All India Total5000

16. 4/23/201515 State

17. 4/23/201516 STATE WISE STATUS OF CO-GENERATION StateNumber of unitsTotal Co-generation (MW) Uttar Pradesh571254.5 Punjab341.0 Andhra Pradesh13195.0 Tamil Nadu24550.0 Karnataka27610.0 Maharashtra21416.5 Bihar223.0 Total1473090.0

18. 4/23/201517

19. 4/23/201518 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.

20. 4/23/201519 *Preferential tariff in 14 states. *Ministry of Food provide concessional loan for Co-generation project @ 4% to the 40% of the project cost. *Ministry of New and Renewable Energy also grant capital subsidy @ 60 lacs per MW upto the maximum of 8 crores per project.

21. 4/23/201520 INDIAN MODEL OF CO-GENERATION.

22. 4/23/201521 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.

23. 4/23/201522 *Replacing of the existing inefficient turbines drives for fibrizer / shredder with H.T. motors after installation of Co-generation plant.

24. 4/23/201523 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. :1150.00 2)Replacement of mill drive turbine with AC VFD motors & transformers, cabling etc. :20.00 3)Replacement of fibrizer / shredder turbine drive with HT motors, starters & cabling etc. :10.00 4)Miscellaneous:5.00 Total:1185.00 Less : Scrap value of discarded equipments approx. :40.00 Net : Total expenditure:Rs.1145.00 USD-25.50 million

25. 4/23/201524 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 export @ Rs. 4.00 x 124 KWH Rs.496.0 5)Revenue earning in one season of cane crush through power export @ 4.00 x 124 x800000 Rs39.60 million i.e. USD-8.8 million

26. 4/23/201525 B-CASE STUDY NEW 5000 TCD SUGAE PLANT MAIN EQUIPMENTS AND THEIR COST:- S.NoDetails of EquipmentsCost in Million (Rs.) 1)Sugar Plant -5000 TCD:Rs. 330.00 2)Boiler-120 Tonne, 87 Kg/cm 2 g.:Rs. 120.00 3)T.G.Set-25 MW.:Rs. 130.00 4)Switch Yard & Electrical:Rs. 80.00 5)Miscellaneous:Rs. 40.00 Total:Rs. 700.00 USD-15.55 million

27. 4/23/201526 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 :MWH24000 8)Exportable power (6-7):MWH98800 9)Revenue earning @ Rs. 4000 / MWH (Rs. 4.00/ KWH) :MillionRs. 395.2 10)Earning in 3 season Rs. 395.2 x 3:MillionRs. 1185.6

28. 4/23/201527 EXECUTION OF TIME REQUIRED 1)Planning & Placement of order:2 Months 2)Execution & Erection:10 to 12 months Total:12 to 14 months

29. 4/23/201528 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 2006-072007-082008-09 1)Cane crush (Tonnes)7900004720001500001412000 2)Power generated (MWH) 1216607168823250294756 3)Net exported power (MWH) 876905239218450158532 4)Revenue earned @ 3.00 / KWH (Rs.) ---4756 lacs million 5) Return on investment -< 3 years

30. 4/23/201529 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.

31. 4/23/201530 OVERALL VIEW OF POWER PLANT

32. 4/23/201531 CONTROL ROOM

33. 4/23/201532 VIEW OF BOILER

34. 4/23/201533 VIEW OF ALTERNATOR

35. 4/23/201534 VIEW OF COOLING TOWER

36. 4/23/201535 VIEW OF SWITCH YARD 11kv/132 kv

37. 4/23/201536 THANKS NATIONAL FEDERATION OF COOPERATIVE SUGAR FACTORIES LIMITED ‘ANSAL PLAZA’ BLOCK-C, 2ND FLOOR AUGUST KRANTI MARG, NEW DELHI-110049 (INDIA) Tel. : 26263425, 26263436, 26263696 Fax : 011-26263658, e-mail : nfcsf@spectranet.com