Its All About Power Sector

"Domestic Content Requirement" was emphasized in Phase II of JNNSM so as to encourage domestic manufactuirng capabilities for solar energy. Solar Energy Corporation of India on 10th January 2014 has called upon for a meeting to assess preparedness of manufacturing to meet demand created for indigenous manufactured solar PV cells and modules for Projects under JNNSM Phase-II Batch-I, 750 MW scheme. The meeting was atteneded by major Solar PV Cells and module manufactures in the country, solar project developers and some lending institutions. As per the guidelines issued by MNRE dated 25th October 2013 for implementation of the above scheme, 375 MW capacity is reserved for “Domestic content required” (DCR) category which stipulates use of Solar PV cells and Modules manufactured in India. The discussions revolved around issues related to overall manufacturing capacity, capacity available on their assembly lines, delivery schedule to meet the timelines stipulated in the guidelines, bankability of the product, cost difference, etc.
Manufacturing Capacity: Approximately 550 MW of cell manufacturing capacity and approx. 1.1 GW of Solar PV modules manufacturing capacity is available which is much more than the requirement under “DCR” category. In fact, availability of solar cells and modules produced in India was reported to meet the balance requirements of the scheme also.
PV Modules Performance: It was emphasized that Indian manufacturers have been supplying indigenously manufactured PV modules to many other countries meeting global performance requirements. It was mentioned that the apprehensions, if any, regarding performance are without any basis. The performance of Indian modules is comparable to best available in the global market.
Guaranties and Warranties: Domestic PV module manufactures have indicated that they are extending one of best guaranties and warranties (e.g. Nominal Power Output) as available globally to the PV module purchasers.
Bankability: PV module manufactures have indicated that Solar PV Projects using their PV modules have got funded by most of the leading banks / financial institutions. Bankability Report of Solar PV modules can also be made available to the Solar PV module purchasers.
Cost difference: It was agreed by the manufacturers that there is a difference in the cost of PV modules which are manufactured indigenously and the ones which are imported due various reasons beyond their controls, such as, higher cost of financing, higher electricity tariff. It was mentioned that this difference could be of the order of Rs. 50-60 lakh per MW capacity of the project.
Delivery Period: It was emphatically indicated by the PV manufactures that are in absolute readiness to meet timelines of project commissioning as per requirements of the scheme.
Conclusion: It was felt that there is enough available capacity of indigenously manufactured PV Cells and Modules to meet DCR requirement under 750 MW VGF scheme under JNNSM Phase-II Batch-I.
All the above conclude the country's ability to fulfill the Mission's aim for DCR, but the actual results are expected only when te financial closures are made by the participitating companies for setting up solar power plants using DCR scheme. The participants are expected to undergo many challenges in terms of cost and availability before complete execution of the projects.

Subsequent to issue of RfS (Request for selection) document by Solar energy Corporation of India (SECI) dated 28th October 2013 for the subject scheme, Bids were opened on 20th January 2014 in presence of Officials from MNRE, NVVN and representatives of various bidders numbering about 120. Based on the preliminary examination of bids, following has been noted:

• Number of total bids received: 68
• Capacity: DCR: 700 MW
• Capacity Open: 1470 MW
• Total Capacity: 2170 MW

The details of the bidders and the capacity quoted by them in each category are appended below. SECI shall carry out the Techno-Commercial bid examination in regard to the bid conditions and may seek clarifications if required from the bidders in line with provisions in the RfS document. After completion of Techno-Commercial bid examination, the list of shortlisted Bidders shall be uploaded in website of SECI.
Source: Solar Energy Corporation of India

Do you agree that a digital photo frame can help in conserving energy as a demand side management program? Yes is what many of them say in the countries where this is the next solution to market energy sale. Countries in the European and American nations have chosen to bring a change in the energy consumption pattern of the residential customers using this technique.
Let’s see how this technique actually works out. With the smart meters already in place and technology blooming for implementation of these meters in distribution sector, a way to keep the attention of the customers on their consumption pattern looks more promising. A smart meter integrated with notifications on a Digital frame placed on wall or table inside the home that is visible frequently will tell you the current usage of electricity for the month. This sounds just like you receive a notification of amount deducted from your balance after you hang up a call from your mobile. Your personal pictures will mix with the notifications from the distribution utility and scroll down in the frame.
That’s not all. Apart from energy consumption it alerts you for energy consumption increase when you turn on your AC or washing machine. It also gives you information on the prevailing tariff for the season and delivers alerts on billing for the current and previous months. It additionally provides energy conservation quotes that most of them are not aware of in regard to usage of electricity in homes. Looks something like the one in the below pictures. By this way the utilities will have a better interaction with their end users which is the actual need of the hour. This will help the utilities to be no way an undermined commodity that lack’s customer service.
Can this really bring a change in the consumption patterns of electricity for residential customers? It was revealed in many research studies of human behavioral patterns that the people subjected to repeated exposure to changes in a message through vision tend to identify the cause for the change. And this will make the customer more aware of how their electricity is being used.
Now for a country like India where the already financially weak utilities exist, will this be a feasible option and are the investments possible? This is a question that is uncertain at this point of time but nevertheless it is not far from making it a reality. All we need is a determined support from the government to help such initiatives happen and put these schemes in place where R-APDRP, BEE and DSM Programs exist.
Your thoughts on the same as of how this can help in conserving energy and promote Demand side management programs are most invited as comments below.

1. To enable scaling up of size of projects thereby leading to economies of scale of projects under JNNSM
2. To facilitate speedier implementation of the solar power projects to be selected to meet the Phase-II target of JNNSM
3. To enhance confidence in the Project Developers
4. To promote manufacturing in the Solar PV sector in India
5. To create good business model and systems for various State Governments and DISCOMs to take forward and
6. To facilitate fulfillment of RPO requirement of the obligated entities.

The mechanism of operation of Viability Gap Funding is enumerated below:

1. The tariff to be paid to the developer is fixed at Rs.5.45 per kWh. This tariff will remain firm for 25 years project period. In case benefit of accelerated depreciation is availed for a project, the tariff will get reduced to Rs.4.75 per kWh.
2. The developer will be provided a viability gap fund based on his bid. The upper limit for VGF is 30% of the project cost or Rs.2.5 Cr/MW, whichever is lower. The developer will be required to indicate his preliminary estimate of project cost as per format in Annexure-A. The project cost will be as per developer’s own estimation & declaration at the time of bidding, which will be finally confirmed by his own declaration at the time of financial closure and will be considered for provision of VGF as per the above specified upper limit.
3. The developer has to put his own equity of at least Rs.1.5 Cr/MW.
4. The remaining amount can be raised as loan from any source by the developer.
5. The VGF when paid by the SECI may be used to return part of the loan or developer contribution (in excess of Rs.1.5 Cr./MW) or a combination thereof as the case may be, in case investments have already been made. SECI will issue a letter confirming sanction/ grant of VGF so that bidder is able to achieve financial closure for full amount if required at the time of signing of Power Purchase Agreement (PPA).
6. The VGF will be released in six tranches as follows:
1. 50% on successful commissioning of the full capacity of the project (COD);
2. Balance 50% progressively over next 5 years subject to the project meeting generation requirements (CUF within specified range as per Clause 2.13.1) as under:
1. End of 1st Year from COD – 10%
2. End of 2nd Year from COD – 10%
3. End of 3rd Year from COD – 10%
4. End of 4th Year from COD – 10%
5. End of 5th Year from COD – 10%
7. If the project fails to generate any power continuously for any 1 year within 25 years or its major assets (components) are sold or the project is dismantled during this tenure, SECI will have a right to refund of VGF on pro-rata basis and if not paid by the developer then a claim on assets equal to the value of VGF released, on pro-rata basis.
8. If the project is transferred or sold to a third party during its tenure (after initial lock-in period of 1 year as per provision under Clause 2.10, SECI will retain full rights to operationalize the PPA with the third party, which will be under full obligation to honour all the obligations and terms & conditions of the PPA.
9. Solar Power Developers (SPDs) and SECI shall enter into suitable VGF Securitization Agreement creating a charge over the Project assets in favour of SECI as specified under sub-clause (7) above along with signing of PPA.
10. In case of projects financed through loan, the charge created on the project assets shall be shared with the Lending Institutions.
11. In case the lending institution exercises its right to step in or take over the project, SECI will also have right to step in along with the lending institution to reclaim or handover the project to another party for operation.

Also Read:

• What is instore for Jawaharlal Nehru National Solar Mission (JNNSM) - Phase II 
• Can JNNSM-Phase I Achievements Fuel Phase-II? 

1.   A planned capacity of 66,000 MW additional coal based capacity proposed to be added in the XIII Plan. Coal for 20,000 MW capacity will be met from the additional production of 100 million tonnes from captive blocks, coal linkages already exist for 20,000 MW and coal for the balance 26,000 MW would need to be met from both the incremental production from CIL as well as imports.
2. Out of the envisaged incremental coal production of 180 million tonnes from CIL in the XIII Plan, 80% or 144 million tonnes is earmarked for power sector which would support about 32,000 MW additional capacity at the rate of 4.5 million tonnes per 1000 MW capacity. The existing linkages for the 20,000 MW capacity, include this additional availability and thus coal for about 14,000 MW capacities (46,000 MW - 32,000 MW) would need to be tied up.
3.   As per the recent allocation of fourteen coal blocks to Government Companies/ Corporation for power generation, four large blocks namely Balumuda, Banai, Chandrabila and Kuda Nali Luburi have been allocated to NTPC for meeting the requirement of a capacity of 9,780 MW and exploration is ongoing in three of these blocks i.e. Balumuda, Banai and Chandrabila and the geological reports are expected to be available by January, 2016, June, 2015 and April, 2014 respectively for these three blocks. The exploration in Kuda Nali Luburi Block is yet to be commenced. Thus, NTPC should aim at expediting the exploration in these blocks such that these blocks can be brought into production latest by middle of XIII Plan and this would help in realising some 5000 MW to 8000 MW capacity. 
4. Ministry of Coal is considering offering of four explored blocks for tariff based power plants through bidding and these four blocks can support an additional generation capacity of about 10,000 MW. With concerted efforts, these four blocks could be brought into production by the beginning of the XIII Plan as they are the explored blocks. In addition, there are couple of State utilities which have been allocated coal blocks in the recent past (Ten blocks) and there is scope for them to advance the production schedules such that some additional capacity is feasible to be added in the XIII Plan. This would also add up in meeting the gap of 26,000 MW as mentioned above.
5. Ten blocks allocated to state government companies are unexplored. Coal production from these blocks could support 20,000 MW capacity. Considering the process of exploration and obtaining forest & environment clearance and land acquisition, none of the above mines are expected to commence production in XIII Plan period. Efforts must be made to get necessary clearances for at least few of the blocks to have additional coal production to support 5000 MW capacity from these blocks. Ministry of Power and Ministry of Coal agreed to the suggestion

Development of these coal blocks, advantages of enhanced efficiency by switching over to super-critical technology in case of all the future generation units and to build the same into the envisaged coal requirement, mechanism to incentivize state governments for soliciting their cooperation in expediting coal block development are few important notes that all the concerned ministries should take into account to keep the conventional fuel coal into a more stable position

Central Electricity Authority has done two studies on Design and Performance of Chinese Equipments. The two studies made were, the first one included Design Features of Boilers and Auxiliaries being sourced from Chinese Manufacturers in year 2008. The second one was to Analyze the performance of Chinese equipment vis-a-vis Indian equipment in year 2013
Details of Study on Design Features of Boilers and Auxiliaries from Chinese sources.

• The Study Covered 5 stations with 300/330 MW and 2 stations with 600 MW . units (All Sub-critical)
  • 300/330 MW Units - Yamunanagar- HPGCL, Durgapur- DPL, Sagardighi- WBPDCL, Lanco-Amarkantak, Mundra-Adani Power.
  • 600 MW Units- Lanco Anapara C, Hissar HPGCL.
• Only 3 Commissioned Stations - Yamunanagar, Durgapur & Sagardighi.
• Main Findings in this study.
  • The technical particulars relating to major design features of boiler and their auxiliaries found to be in line with good engineering practices- any generic design issues could be best known after these units operate for an initial period of about one to two years.
  • Initial 1-2 years of operation of any plant are critical and will bring out inherent generic deficiencies, if any.
  • Operational feed back then available indicated milling Constraints in some units
  • Secondary fuel oil consumption has been found to be high in all the three operational projects.
  • Layout constraints Found in some of the plants which may result in difficulties in attending to the equipment during maintenance.
  • Data Gaps- No information from Chinese manufacturers on design features, operational performance, Standards followed during manufacturing & testing procedures. Lack of Sufficient data with plant owners.
  • Some of the utilities did not have complete information about important technical particulars -During interaction with the project authorities of the three operating stations, it has emerged that there has been substantial lack of participation by the utilities in the areas of technical specifications, detailed engineering, quality inspection at works, erection supervision, training of O&M personnel, etc.
  • Important equipment drawings/ technical data/ documents were not available with the projects. Design data was also not available with some IPPs sourcing the equipment from Chinese manufacturers.
• Recommendations - Need for due diligence
  • Due diligence required by the utilities during stage of specification finalization and detailed engineering, inspections/testing etc. to minimize O&M problems
  • Detailed comprehensive quality plans for ensuring quality at works and at site identifying customer hold points and test procedures and Standards needs to be defined and implemented for each major equipment/system. Some of the utilities were found lacking in this regard

Details of study to Analyse the performance of Chinese equipment vis-a-vis India Equipment.

• A study to Analyse the performance of Chinese equipment vis-a-vis Indian equipment was taken up by CEA in 2011 - through a Committee of CEA and NTPC.
  • The Objective of the study was to analyse the performance of Chinese equipment vis-avis Indian equipment (BHEL) including coal consumption patterns, heat rate and efficiency achieved.
  • Areas Covered
    • Operating Load Factor (OLF), Outages/Downtime
    • Design Parameters- Turbine cycle Heat rate & Boiler Efficiency Flow Margins
    • Operating Efficiency - Heat Rate and Specific Fuel Oil Consumption
    • Problems in Erection & Commissioning
• Units Considered in Study 2  
  • The Study covered Chinese Subcritical units of 300 and 600 MW and BHEL Sub-critical units of 250 and 500 MW units commissioned in 11th Plan (2007-08 to 2010-11)
  • Chinese capacity covered - 8200 MW
    • 22 Units across 11 stations
  • BHEL capacity Covered -12480 MW
    • 36 Units across 22 Stations

• Study-2: Details of Manufacturers
  • Manufacturers Wise Break up of Capacity

• Thus Most Chinese Supplies from Dongfang and Shanghai (SEC).
• Main Finding - Steam Parameters & Heat Rate
  • Steam parameters and Design Turbine cycle heat rate

The regenerative system configuration of Chinese machines is different from BHEL machines and Chinese 300 MW units have higher steam Pressure also. Thus on like to like comparison basis the BHEL machines indicate higher cylinder efficiency implying that their design/construction in terms of blading provided, sealing etc. renders higher efficiency
Expected THR of BHEL machine with similar configuration - 1890 (250 MW) and 1932/1920 (500 MW)

• Main Findings - Flow Margins
  

Both, the Chinese 300 & 600 MW and BHEL 250 & 500 MW units have adequate flow margins - VWO and BMCR margins. However the Chinese 330 MW machines have a composite TMCR to BMCR margin of 5.34 % which is very low and not compliant to the CEA Technical Standards and may not meet IEGC provisions.

• Main Findings -Outages and Load Factors
  

CEA Monitoring Data
PLF - 2011-12 (units in Study) - Chinese (D) -66.19, (I) 75.46, BHEL- 76.68
PLF - 2012-13 (units in Study) - Chinese (D) -52.27, (I) 81.57, BHEL- 78.13

• Main Findings - Operating Heat Rate
  

Chinese imported coal based units show much lower heat rate than indigenous coal based units - the difference is far higher than envisaged due to the boiler efficiency difference.
Variations in Operating Heat Rate of BHEL units are seen. Six stations show operating deviation (below 5%, four stations show deviation of around 10-11 %. Rest of the stations show very high deviations of 15-25 % and even higher.
Chinese indigenous coal based units generally show high operating deviations.

• Main Finding - Specific Secondary Fuel Oil Consumption (SFC)
  

SFC for Chinese imported coal based stations is considerably lower than indigenous coal based stations. Indigenous - 2.5 to 5 ml/kWh. Best Yearly values Indigenous- 0.90, Imported- 0.53.
Large number of BHEL supplied stations show very low SFC of below one ml/kWh. The lowest overall (2007-11) SFC is 0.27 ml/kWh followed by 0.47, 0.52, 0.54 and 0.81 ml/kWh.
The yearly SFC for individual BHEL stations are even lower. The best yearly SFC is 0.16 ml/kWh followed by several instances of yearly SFCs in the range of 0.20 to 0.50 ml/kWh.

• Station Visits
  • Visits to Stations

• BHEL stations - Generally satisfied
• Chinese Stations - Mixed Bag. Widely different feedback from two stations visited.

• Main Finding - Turbine Control Systems

The level of automation in Chinese turbines is much less than the BHEL turbines The Chinese turbines do not have many analysis/diagnostic functions and equipment safety features such as Turbine Stress Evaluator (TSE) and Auto Turbine Run-up Systems (ATRS) in their control system. Thus, lot of manual interventions are envisaged during start up as well as during normal operation of Chinese machine contrary to philosophy of fully automated system with minimum manual intervention in BHEL machines.
Thus the control systems of Chinese turbines are not in line with the prevailing modern turbine design/technology. Manual intervention during critical operations gives rise to subjectivity with the possibility of mal-operation and accidents.