1. 4 th MAY 2007 CHALLENGES OF POWER SECTOR IN KARNATAKA WHAT ARE THE OPTIONS BY L.V.NAGARAJAN, IAS MD KPCL

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

3. PLACE200220102025 WORLD411487586 USA98109125 INDIA141926 CHINA407396 QUADRILLION BTU PRIMARY ENERGY CONSUMPTION

4. PLACEENERGY KGOE ELECTRICITY KWH INDIA514408 CHINA8871069 WORLD16312326 USA792113053 PER CAPITA CONSUMPTION(2001) 1000 KG(1 MT) OF OIL EQUIVALENT =10000000 KCAL

5. ENERGY VS GDP CONTRIBUTION OF FACTORS OF PRODUCTION( % OF GDP) GDP GROWTHENERGYLABOURCAPITAL TOTAL FACTOR PRODUCTIVITY Brazil2.4772011-8 China9.61372654 India5.615221943 Indonesia5.119341235 Korea7.250111623 Mexico2.2306064 Turkey3.7711715-3 United States3.211241847

6. Power Development in Karnataka NATIONAL PICTURE Energy Elasticity 0.82 since1990-91 Electricity generation Elasticity1.06 Per Capita Electricity Consumption (Kwh/Yr.) -2003 INDIA606 CHINA1,379 USA13,243 WORLD2,436

7. Power Development in Karnataka Integrated Energy Policy Prescriptions   To sustain 8% GDP growth,eradicate poverty and meet human development goals increase GENERATION   Present Capacity-124000 mw   2031-32- 800000 mw Despite above Per-capita will be where we are

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

9. Power Development in Karnataka GROWTH of KPCL Capacity addition in state KPCL's CUM. capacity 1902-1947(45 years) before Independence59.20 1948-1970 (22 years) -prior to KPCL (746mw transferred to KPCL) 909.00 TOTAL968.20746.00 After formation of KPCL 1970-1995 : (25 years) with Budgetory Support: (incl.127mw from KEB) 25383157 1995-2004: (9 years) Commercial Borrowing1208.54365.5 2004-20051654530.5 2005-20061104640.5 VVNL MERGER TOTAL4021.5 354.32 4995

10. ALL INDIA - 1,27,673 MW As on 30.11. 2006 KARNATAKA - 8463.82 MW KPCL- 4640, * VVNL - 354 IPP - 1873 & CGS - 1596 RES = Renewable Energy Source Installed Capacity * VVNL – Being merged with KPCL

11. Installed Capacity Total capacity: About 4995 MW

12.  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. 6500 crores (2006-07).  Annual turnover of Rs. 3387 crores (2006-07).  Competent technocrats, administrators - a strong workforce of about 6737 Personnel About KPCL

13. 1. HYDEL Supa - 2 x 50= 100.00 Nagjhari - 3 x 135+3x150= 855.00 Kadra -3 x 50= 150.00 Kodasalli - 3 x 40= 120.00 Linganamakki - 2 x 27.5 = 55.00 Sharavathy-10 x 103.5= 1035.00 Gerusoppa - 4 x 60 = 240.00 Varahi - 2 x 115= 230.00 Mani Dam - 2 x 4.5= 9.00 Ghataprabha - 2 x 16 = 32.00 Mallapur - 2 x 4.5 = 9.00 Mini hydels (3 nos.)= 1.75 Bhadra (2 stations)= 39.20 Almatti - 1 x 15 + 5 x 55= 290.00 Total Hydel= 3165.95 2. RTPS - 7 x 210 = 1470.00 Grand Total = 4640.50 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

14. Other Projects Power StationCapacity in MW DG Plant, Yelahanka 127.92 Shivasamudram42.00 Shimsha17.20 MGHE, Jog falls139.20 Munirabad28.00 Total354.32

15. Raichur Thermal Power Station

16. Outstanding Achievements 2006-07 RTPS – Record generation of 36.188MU on 13.11.06 at PLF 102.57 % KPCL has generated a record generation of 82.12 MUs from all its stations on 24.10.2006 Shivanasamudram – Record generation of 31.90 MU in Oct- 06 surpassing earlier record generation of 31.20 MU during Dec- 2005 CEA Awards:CEA Awards: ADPH Unit No.3 & 6 selected as ‘Best Executed Hydro Power Station’ for 2004-05 and 2005-06’ respectively. Varahi Power House has been selected for ‘Best Hydro Performance Awards of the year 2005-06’.

17. Almatti Dam and Power House View of site on 15.3.02

18. LOAD FORECAST UNRESTRICTED ENERGY REQUIREMENT IN MILLION UNITS YearTrend MethodAnalysisEnd UserScenerio-1Scenerio-2Scenerio-3 2006-07399793657444870369453790538883 2007-08414663778145944 38960 4053642177 2008-09430863931047242 41386 4368646125 2009-10449704120348834 44288 4741050794 2010-11470894336050686 47549 5163756155 2011-12493974575652758 51175 5638362248 2012-13519114838055012551696167269151 2013-14546375128357510595806760076988 2014-15575725448360263644567422985883 2015-16607325799963281698418163595987 2016-176411361658665187557389719107270

19. LOAD FORECAST PEAK DEMAND IN MW WITH 65% LOAD FACTOR YearTrend MethodAnalysisEnd UserScenerio-1Scenerio-2Scenerio-3 2006-07702164237880648866576829 2007-08728266358069 6842 71197407 2008-09756769048297 7268 76728101 2009-10789872368576 7778 83268921 2010-11827076158902 8351 90699862 2011-12867580369266 8988 990210932 2012-1391178497966196891083112145 2013-149596900610100104641187213521 2014-1510111956810584113201303615083 2015-16106661018611114122661433716858 2016-17112601082911682132721575718839

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

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

22. 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

23. 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

24. 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

25. Fly Ash Transportation to Cement Industries

26. CO2 EMISSIONS(MILL MT) WORLDINDIAUSA OIL109003092569 COAL96637522158 GAS5375561275 TOTAL2593811176002

27. BTPS Plant Marlihalla Kampli Gangavathi Daroji Tank Jindal Hospet Bellary Sandur

29. Pipe laying completed

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

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

33. VISION 2025 - Projects with less constraints A Hydro Projects Capcity in Mw Energy in MUCost Rs. Crores 1 Gundia 40011361060 2 Cauvery SS 270 929 585 Total 67020651645 B Pumped Storage Schemes 1 Sharavathi Basin 60001935 C Thermal Projects 1 BTPS 100066004360 D. Gas Based Stations 1 Bidadi 2100156369450 2 Yelahanka 35026061925 3 Almatti 35026061720 Total 28002084813095 Grand Total 50702951321035

34. 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

35. 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

38. A. ON - GOING PROJECTS Capacity in MW Energy in MU Cost in Rs Crores Commsng. BTPS Unit - 150035042,100 May-2007 VARAHI-UNITS-3&4230Peaking291Nov-2008 RTPS Unit – 8 ( LOI )2501752925Apr-2009 BTPS Unit – 2 ( LOI )50035042,096Mar-2010 R & M OF NPH45Peaking452009 Grand Total 1,5258,7605,457 Ongoing Projects

39. Boiler structure Chimney: 275 m Ht ESP Cooling Tower : 143.5 m ht Station Building Zero date- 29.12.03 Bellary Thermal Power Plant Unit

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

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

42. 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