1. OPTIMISING GENERATION SUNIL PARWANI General Manager (Marketing) Bharat Heavy Electricals Ltd. New Delhi 17 TH India Power Summit on ‘Optimising Power Availability: Action Plan for Next Decade’ India Energy Forum November 14, 2014 at New Delhi

2. 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 Growth in Power Generating Capacity 2 Power – The key driver for a Nation’s Economic Growth

3. India Niger China Germany Japan USA UK Source: UNDP: Human Development Index, 2010 Energy Consumption: Giga Joules per capita per year HDI  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 3 POWER AND HUMAN DEVELOPMENT Magnified effect of increase in Energy Consumption on Human Development

4.  10 th largest economy in the world by nominal GDP; 3 rd largest by GDP in PPP terms  Second fastest growing economy  Accounts for 4.1% of world’s energy consumption  4 th largest energy consumer ; fast moving to reach 3 rd 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 4 POWER POSITION IN INDIA Fast Growth, but still substantial development needed in power sector

5.  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 FY 2013-14 5 POWER: PROJECTIONS AND OBJECTIVES Projections suggest a strong need to augment the capacity

6. At about 1/3 rd 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 42,428 4.2% 6,103 4.5% Power shortage currently costs India a GDP loss of USD 68 Bn (~0.4 % of GDP) 6 CAPACITY ADDITION ACHIEVEMENTS Impressive growth seen in recent Years... But still a long way to go...

7. Factors impacting growth Delay in receipt of environmental and other clearances Fuel availability Land acquisition Funds constraints 7 ISSUES IN POWER SECTOR Unfavourable environment for all stakeholders…

8. 8 Energy Security Need to balance the ‘Energy Trilemma’ ENERGY SECURITY ENVIRONMENTAL SUSTAINABILITY ENERGY EQUITY Creating a Resilient System Reduced Dependence on Imports Redundancy Diversity in Sources of Energy Robust Infrastructure

9. 9 NEED FOR FOCUS ON AVAILABLE CAPACITY Improving available power at lowest price 1.4 - 1.5 MW Installed Capacity 1.0 MW Available Power

10.  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 10 SUPERIOR PERFORMANCE OF BHEL SETS IN INDIAN MARKET BHEL manufactured sets clocked higher PLF than national avg.

11. Development of Ultra Supercritical (USC) power plants To improve steam parameters, thereby improving efficiency and heat rates, resulting in reduced coal demands Higher parameters provided for NTPC’s North Karanpura Project - country’s first Super-critical power project with Air Cooled Condenser, and is taking strides towards providing further improvements in parameters in the future Development of Fuel Flexible Supercritical Boilers New Boiler design capable of firing both extremes - from 100% domestic coal to 100% imported coal to effectively deal with uncertainties over availability of domestic and imported coals DEVELOPING NEW TECHNOLOGIES Constantly innovating to cater future demands 11

12. 710 0 Celsius, 310 Bar, Plant efficiency 46% leading to Reduction in Coal consumption and CO2 emission by 12% as compared to Super Critical plants Targeted operational parameters : R&D phase for Two and Half years and Manufacturing and Commissioning in next four and half years Project planned in two phase : Casting/ forging/ machining and welding, Assembly, Testing procedures and site commissioning Challenges involved are Development of New Alloy Materials, Manufacturing Technologies : GOI funding of Rs. 1100 Crs and balance 454 Crs by BHEL and IGCAR (BHEL : 220 Crs and IGCAR : 234 Crs) R&D Project cost estimated at Rs. 1554 Crs: Hon’ble Minister of Finance has indicated allocation of Rs. 100 Crs for 2014-’15 for this R&D project Union Budget 2014 Speech: Advanced Ultra Super Critical Power Plant Project Constantly innovating to cater future demands BHEL, NTPC and IGCAR working together in a national consortium for indigenous development and commissioning of 800 MW Advanced Ultra Super Critical (AUSC) Power Plant in India 12

13. * 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* WORLD CLASS PERFORMANCE Demonstrating superior performance than international benchmarks 13

14.  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 14 PEAK LOAD V/S BASE LOAD Need for diverse Fuel-Mix

15. 15 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

16.  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 16

17. THANK YOU 17

18. BACK UP

19. 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 MANUFACTURING PROWESS (20,000 MW p.a.) Keeping abreast with latest technological advancements Gas Turbine Rotor at HyderabadHydro Turbine at Bhopal 19

20. Steam turbine rotor at Hyd 8000 tonnes hydraulic press at Trichy Pipe Bender at Trichy MANUFACTURING PROWESS (20,000 MW p.a.) Keeping abreast with latest technological advancements MANUFACTURING PROWESS (20,000 MW p.a.) Keeping abreast with latest technological advancements Generator shop at Haridwar 20

21. MAJOR DOMESIC MANUFACTURING CAPACITIES ManufacturerSG CapacityTG Capacity (MW) BHEL20,000 L&T-MHI4,000 Alstom-Bharat Forge03,000 Toshiba-JSW03,000 Thermax-Babcock Wilcox2,0000 Doosan2,0000 Ansaldo-Gammon00 BGR-Hitachi00 TOTAL (MW)28,00030,000 21

22. PARAMETERS OF THERMAL POWER PLANT HPT inlet temp o C IPT inlet temp o C Pressure ata Efficiency % Sub-critical565 17038.6 Super-critical56559324741 Ultra Super-critical600 28042 Advance Ultra Super- critical 71072031046 22

23. INFERIOR PERFORMANCE OF CHINESE SETS - IMPACT ON HEAT RATE INFERIOR PERFORMANCE OF CHINESE SETS - IMPACT ON HEAT RATE 23

24. INFERIOR PERFORMANCE OF CHINESE SETS - IMPACT OF SECONDARY FUEL CONSUMPTION INFERIOR PERFORMANCE OF CHINESE SETS - IMPACT OF SECONDARY FUEL CONSUMPTION 24

25. High capacity Addition of 55 GW during XI Plan almost equal to combined achievement of previous 3 plan period Target CAPACITY ADDITION ACHIEVEMENTS Achievement in 5 Year Plans 25