Ieema journal august 2016 by IEEMA

From the President’s Desk

Dear Friends, Electricity is a concurrent subject between the central and state government in India and this concurrency sometimes becomes a hurdle to implement some good ideas effectively and in time. Getting all agencies to work in a coordinated and timely manner is a challenge. I will quote two recent examples : i) To facilitate procurement, through a central procurement process, of major equipment and material under the DDUGJY and IPDS schemes GoI – ministry of power made efforts to standardise technical specifications. The idea was that a transparent bidding process can be followed and high quality reliable products can be procured at competitive prices. Two committees were formed under the chairmanship of Chairperson CEA and Director (Projects) Power Grid. a. “A” (to list out major equipment/material and finalise technical specification, aggregation of quality requirements of various states and vendor empanelment) & b. “B” (for preparation of bidding documents, carrying out bid processing through tendering under reverse bidding mode, evaluation of bids and finalisation of rate contracts) Various IEEMA divisions had actively supported this activity and participated in all discussions and contributed as expected. The members also participated in the tenders. LOI’s were also placed. However the states now have a different view point. Tender invited by the states which follow different qualification and testing method and terms resulted in a different out come. As a result the 2nd tranche of procurement has been cancelled. Should we not be looking at ownership cost and clarity of procurement processes being adopted… ii) The efforts, made by ministry of power and coal in a. improving the fuel supply, b. Ensuring better generation and c. Transparent sharing of information through “VidyutPravah” have ensured that the electricity demand supply gap has become a thing of the past. The prices on the power exchange have reduced. “UDAY” has also meant that the discoms interest burden will go down and their balance sheets will become a lot better. Let us remember the accumulated losses of discoms had crossed 400k Crore Rupees. Under UDAY, discoms get a chance to improve efficiencies and become self sustaining. The idea was to reduce AT&C losses, improve efficiencies and through that become self sustaining. However, in a few states the AT&C losses have not shown any reduction (in fact they may have increased) and with increased availability of power supply the losses may actually increase. My intention of highlighting this is all agencies (public or private, suppliers or buyers or policymakers) involved in the power sector need to work in a coordinated way towards the goal of making affordable power available to all Indians 24X7. All of us have the right and common goals. What we need is better appreciation of each others drivers and regular communication. IEEMA members have adequate capacities and have suffered for many years with underutilisation. Discoms have suffered with high losses. Central govt. has spent large sums of money in various reform schemes. We need a different approach to make these innovative schemes yield desired result. We have seen a lot of good initiatives driven by GoI succeed. The LED lighting, electrification of all villages, improved coal supply, increased renewable generation are examples of these. We live in an uncertain world, outcome of major events have impacted all economies around the world. Indian economy has reasonable fundamentals which will be further strengthened by a good monsoon and low oil prices. IEEMA’s engagement with central and state government policy makers will continue. Together we can.

Babu Babel 6

August 2016

Samvaad...

Dear members The Government of India is working sincerely to improve world ranking of the country in ease of doing business. There is a direct co-relation and the relative importance of ‘Ease of doing business is based on nurturing an encouraging business environment for start-ups and also for the success of ‘Make in India’ initiative. According to the World Bank’s Doing Business Report released in December last year, India was placed at 130 amongst 189 countries on ease of doing business. The country marked a significant increase over a two-year period. It is now ranked as the second best among a list of developing countries. IEEMA has been working closely with the Government and had provided its recommendation for ease of doing business, which were based on the issues and expectations of the domestic electrical industry. Some of the major recommendations of IEEMA in this regard were: To do away with the cumbersome procedure of collecting C form, by allowing a seller to update online on sales tax portal, the details of sales to a customer (before dispatch of goods) and be able to generate an online permit for going ahead with C form transaction, once the buyer accepts this online submission.

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To simplify separate registration system for CST / VAT in all the states and separate registration for entry tax, trade licenses in applicable states, a single window system for registration of all business houses be created. Respective states can amend the same window on a simple registration format.

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Constitution of an Authority in DGFT to co-ordinate actions between DGFT and ICE GATE for faster solution of matters.

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Only the prescribed documents need to be presented by an exporter for getting the deemed export benefits sanctioned; keeping a stipulated time limit for such sanctions.

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Set-off on CST paid be allowed on purchases of goods for manufacturing exportable products, in order to avoid this additional cost on purchases.

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Following of e-permit by all states (like Gujarat) by providing key number and then self-generation.

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Merging of Swachh Bharat Cess @ 0.5% & Krishi Kalyan cess @ 0.5% to make effective tax rate of 15 per cent of value of taxable service and make entire tax rate Cenvatable.

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To keep the validity of License of Electrical Contractor for at least 10 years and license issued by one state be made valid all over India, like a Driving License.

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Utilities be also penalised for delay in payment, like suppliers are penalised for delay in supplies.

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Electronic filing of reply to Show Cause Notices and appeals up to the stage of Commissioners / Commissioner (Appeals) be allowed to reduce paper work and file keeping.

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Bureau of Indian Standards needs to simplify cumbersome and delayed process for Grant of License and build in effective systems for fixing accountability for timely completion of such grant.

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We are working towards implementation of our recommendations. Although the government is hoping to see a drastic improvement in its ranking this year, some measures of ease of doing business are visible on the ground, while many more rigorous initiatives are needed across different layers of governance; the benefits of which can be envisaged in the years to come.

Sunil Misra August 2016

Contents

the leading electrical & electronics monthly

Volume 7 Issue No. 12 August 2016 CIN U99999MH970GAP014629 Official Organ of Indian Electrical & Electronics Manufacturers’ Association Member: Audit Bureau of Circulation & The Indian Newspaper Society

From the President’s Desk 7

Samvaad 18

Interview Intelligent Electricity would be an integral part of any sustainable technology solution: Mr Prakash Chandraker

Cover story Power distribution utilities report card Gujarat leads, Jharkhand last For the third year in row four Gujarat State Power Distribution Utilities emerged as top performers in the country. Punjab is in the same top ‘A+’ bracket as Gujarat, with the utilities of Maharashtra and Uttarakhand closely following with an ‘A’ rating.

Mr Prakash Chandraker, Chairman, Organising Committee, INTELECT 2017 speaks to IEEMA Journal on the concept of intelligent electricity and Redefining Electricity for Smart Living

Special report PLF of coal based thermal Power Stations declining continuously: (India sees lowest plant load factor in 15 years)

Coal based power is vital for meeting the country’s energy needs. It contributes more than 60 percent of total installed capacity and 80 percent of the total generation. A significant amount of coal resources, cheap generation costs and technology maturity have been driving growth of coal based power in India

August 2016

Contents

Guest article

Opinion

Indepth

“Penny Wise, Pound Foolish” – How to maximize value for money!

Competitive 350-MWSupercritical class steam power plants - a perfect fit for your investment

Flexible Operation of CoalFired Power Plants up to 1,000-MW-class

“Penny Wise, Pound Foolish” is a very old proverb used to generally describe a person or a situation wherein one is stingy about small expenditures and extravagant with large ones. The theme is used to illustrate the importance of looking beyond the capital cost and use life cycle costing as a framework for maximizing value for money!

Expert speak Road ahead for Generation Equipment Manufacturing Industry:

57 Integration of Renewables into Smartgrids for smarter electricity generation

The typical operating modes of thermal power plants are undergoing changes both as a result of the liberalization of the power generation markets, but also especially as a result of the increasing percentage of renewables in electric power generation. In some parts of the world these changes affect the conventional power plant operation mode significantly.

Tech Space Conceptual Clarifications in Electrical Power Engineering – Part 1

In focus Regulatory tools for Determination of Capital Cost of Thermal Power Projects

Tech Space Power Generation after air heater? India has achieved capability and capacity to Manufacture Electricity Generation equipment for Thermal, Hydro and Nuclear Power Plants. The main equipment suppliers viz. BHEL, Larsen & Tubro, Doosan, Alstom, Toshiba with Indigenous manufacturing are capable of supplying SG and TG for Supercritical Thermal power plants up to 1000 MW Unit rating. NPCIL has developed 700 MW Nuclear Power plant.

Capital cost of power stations is the driving factor on which all other elements of tariff are worked out. For the purpose of tariff, regulatory checks on admissible asset value/ cost are of prime importance. Cost as per books are not necessarily the input costs for regulatory purpose. They are relied upon regulatory process which is one of the tools for prudence. In view of the anticipated growth in demand and the existing challenges in the power sector, a balanced approach is required to be adopted for determination of capital cost in the larger interest of the sector.

Air heater is important but overlooked heat exchanger in power station, waste heat recovery and upkeeping can generate some power. This is case of one 60MW power boiler with ESP where power consumption reduction and generation scope exists like most of power boilers within 60-110MW capacity.

August 2016

Contents

100

International News

IEEMA Database

GE unveils MV7-Series Drive with UWave technology

Basic Prices & Indices Production Statistics

Adani Group eyes SunEdison’s solar assets in India

102

National News India’s smart street lighting market to touch $1.8 bn by 2022 Cabinet approves revised cost of Bhutan hydel power project

Corporate News L&T Construction Wins orders valued ` 3598 Crores NTPC to invest ` 30,000 crore, generate 3% more electricity in FY17

Power Scenario Global Scenario Indian Scenario

ERDA News 104

Seminars & Fairs 108

Product Showcase 109

Index to Advertisers 110

Appointments This new space in the IEEMA Journal will incorporate recent important appointments in the power and related sectors.

Editorial Board Advisory Committee Founder Chairman Mr R G Keswani

Chairman Mr Babu Babel

Members Mr Sunil Misra Mr Naveen Kumar Mr Mustafa Wajid Mr Vikram Gandotra

Sub Editor Ms Shalini Singh

Advertisements Incharge Ms Vidya Chikhale

Circulation Incharge Ms Chitra Tamhankar

Statistics & Data Incharge Mr Ninad Ranade

Regd Office - Mumbai 501, Kakad Chambers, 132, Dr A Besant Road, Worli, Mumbai 400 018. Phones: +91(0) 22 24930532 / 6528 Fax: +91(0) 22 2493 2705 Email: mumbai@ieema.org Corporate Office - New Delhi Rishyamook Building, First floor, 85 A, Panchkuian Road, New Delhi 110001. Phones: +91 (0) 11-23363013, 14, 16 Fax: +91 (0) 11-23363015 Email: delhi@ieema.org Branch Office - Bengaluru 204, Swiss Complex, 33, Race Course Road, Bengaluru 560 001. Phones: +91 (0) 80 2220 1316 / 1318 Fax: +91 (0) 80 220 1317 Email: bangalore@ieema.org Branch Office - Kolkata 503 A, Oswal Chambers, 2, Church Lane, Kolkata 700 001. Phones: +91 (0) 33 2213 1326 Fax: +91 (0) 33 2213 1326 Email: kolkata@ieema.org Website: www.ieema.in Articles: Technical data presented and views expressed by authors of articles are their own and IEEMA does not assume any responsibility for the same. IEEMA Journal owns copyright for original articles published in IEEMA Journal. Representatives: Guwahati (Assam) - Nilankha Chaliha Email: nilankha.chaliha@ieema.org Mobile: +91 9706389965 Raipur (Chhattisgarh) - Rakesh Ojha Email: rakesh.ojha@ieema.org Mobile:+91 9826855666 Lucknow (U.P. and Uttarakhand) Ajuj Kumar Chaturvedi Email: anuj.chaturvedi@ieema.org Mobile: +91 9839603195

Corrigendum In the Interview section of July 2016 issue of IEEMA Journal, the name of Dr Harald Griem, Head - Energy Management Division, Siemens Ltd was mistakenly spelt as Dr Herald Griem.

Chandigarh (Punjab & Haryana) Bharti Bisht Email: bharti.bisht@ieema.org Mobile: +91 9888208880 Jaipur (Rajasthan) Devesh Vyas Email: devesh.vyas@ieema.org Mobile: +91 8955093854 Bhubaneshwar (Odisha) Smruti Ranjan Samantaray Email: smrutiranjan.samantaray@ieema.org Mobile: +91 9437189920 Hyderabad (Andhra Pradesh) Jesse A Inaparthi Email: jesse.inaparthi@ieema.org Mobile: +91 9949235153 Srinagar (Jammu & Kashmir) Mohammad Irfan Parray Email: irfan.parray@ieema.org Mobile: +91 9858455509

IEEMA Members Helpline No. 022-66605754

Edited, Printed and published by Mr Sunil Kumar Misra on behalf of Indian Electrical and Electronics Manufacturers’ Association, and Printed at India Printing Works, India Printing House, 42, G. D. Ambekar Road, Wadala, Mumbai 400 031 and Published at 501, Kakad Chambers,132, Dr. Annie Besant Road, Worli, Mumbai 400 018.

August 2016

Interview

Intelligent Electricity (INTELECT) is a necessity for any sustainable energy value chain : Mr Prakash Chandraker Mr Prakash Chandrakar, Chairman, Organising Committee, INTELECT-2017 speaks to IEEMA Journal on the concept of intelligent electricity and Redefining Electricity for Smarter Living What is the relevance of Intelligent Electricity from Indian Perspective

Consumers in India have seen two major transformations, one in Banking & second one in Telecom sectors which are revolutionized with the use of IT & communication technologies. This added intelligence in operations, actually empowered users with quality services, cost optimization, ease and comfort to use the facilities. Banking became Smart Banking, Phone became Smart Phone and users became Smart Users. Now empowered citizens are expecting same Quality Services, comfort from other utility services including Electricity. Besides 24/7 quality power availability, today’s knowledgeable customers expect affordable power, choice of utility, freedom from long outages, variable tariff options & sustainable renewable Power. To meet these expectations and change in social behaviors, Indian Power Sector need to push for convergence and adopt goodness of electrical operation technology, IT and Communication technologies to transform the conventional electricity into “Intelligent Electricity” for the entire value chain of Power System from Generation to consumption.

What are the major challenges faced by the customer today and how Intelligent Electricity Solution can overcome this?

One of the major challenge faced by both consumer and Utility today is availability of “uninterrupted” power supply not only in rural areas but even in urban areas including in metro cities. Power interruptions are frequent phenomenon in distribution grid. More than 70% of time it is an unscheduled outages caused by transient faults / trippings due to various reasons like passive electrical network, Phenomenal load increase beyond network limits, overloaded devices, temporary jumpers, theft and human errors. It is not easy to completely avoid such outage situations. However “Intelligent Grid” is capable of addressing many of the issues stated above proactively through “Self Healing Technology”. New advanced electrical operation technology not only reduces the down time considerably but also re-energizes maximum consumers automatically without any human interventions. Smart Devices installed at feeders communicates to each other in locating faulty section followed by isolation of faulty section and reconfiguration of the targeted network. This not only improves the customer satisfaction through significant reduction in down time but also improves the key performance index of network reliability & availability for utility.

Can you please elaborate the INTELECT theme – Redefining Electricity for Smarter Living? Largely, the customer perception so far with the Electricity is only commodity which is beyond his demand & control. Consumer feels less empowered when question of availability of power and tariff choices are concerned. To commensurate with growing economy of the country, access to energy and competitive price is the key for the overall development of a nation. This is only possible when we provide Innovative products and solutions to the Utilities & Consumers to help them overcome the challenges and feel empowered & happy. Intelligent Electricity also redefines the way energy is consumed with the convergence of Operational Technology (OT) with Information Technology (IT) in tandem with communication Technology. This technological blending of IT, OT and Communication Technology, opens new horizon and world of possibilities not only for utility but also for consumers and non utility stake holders. The use of automation, communication, software & analytics are enabling better informed more efficient decision-making and as an outcome entire consumer value chain right from home to building to community to city will become more predictable, efficient, reliable, sustainable, secure and safe. Add to this the growth of the Internet of Things, i.e, more and more connected

August 2016

Interview

devices, will truly drive greater energy efficiency and optimization across all consumer segments.

Do you believe that Intelligent Technologies would fulfil the various missions of Government of India like Power for All, Green Energy, Loss Reduction, SAIDI Improvement? Off-course, I am fully confident that advanced electrical operation technologies would help to full fill all Government Missions and objectives like Power for All, Loss Reduction initiatives, Rural Electrification, Green Energy, Energy efficiency and Smart City Missions etc. However, I would like to emphasize on proper planning, sequencing with resource allocation, time & budget to successfully deploy the technologies to make Electricity intelligent & to achieve the intended returns from the power sector.

What are the most prominent New & Intelligent Technologies you foresee to upgrade & modernize Indian Power Sector. As I said, Convergence of IT, OT, Communication Technologies has opened up the new world of possibilities to effectively, efficiently and economically manage the electricity. For example, Meter data management system, Advanced Distribution Management (ADMS)

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and Geographical Information Systems (GIS) are being deployed in some of the cities under R-ADPRP/ IPDS scheme. This would help utility to manage the grid effectively and reduce losses. However this also establishes base platform to deploy advance Outage Management System (OMS) to reduce outage time and directly manage the customer relation by engaging and keeping him informed about outages and resolutions. This would enhance the customer satisfaction and minimize the losses on account of power unavailability.

Please share the focus of INTELECT-2017 and how it is different from other similar events? INTELECT-2017 is the first fully integrated intelligent electricity exhibition in India. This Exhibition cum Conference event is specially designed to demonstrate the New & Intelligent digital solutions from source to socket to manage the flow of electricity smartly. Its focus is towards the Convergence of electrical operation technology, Automation Devices in tandem with Information & Communication Technology. This exhibition is aimed to provide a platform & to showcase advance technologies that can be deployed in full value chain of electricity system to make electricity truly intelligent for smarter living. 

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August 2016

CoverStory

or the third year in row four Gujarat State Power Distribution Utilities emerged as top performers in the country. Punjab is in the same top ‘A+’ bracket as Gujarat, with the utilities of Maharashtra and Uttarakhand closely following with an ‘A’ rating.

According to the ‘Integrated rating for state power distribution utilities’ done by the ministry of power, 10 of these got a rating of ‘B+’ and 13 were rated ‘B’. Eight got ‘C+’ and two – Jharkhand State Electricity Board and Dakshinanchal Vidyut Vitran Nigam in UP — got the lowest, a ‘C’ rating. The methodology for this rating was developed by the ministry in 2012. It covers 40 state utilities and no private ones. The Central Electricity Authority, Central Electricity Regulatory Commission, Power Finance Corporation, Rural Electrification Corporation, distribution utilities and credit rating agencies CRISIL, ICRA and CARE are involved in the exercise.

electricity regulatory commissions in place across all states covered by ICRA and CARE, said the report.

Following is the report card of the utilities

Dakshin Haryana Bijli Vitran Nigam Limited

C+

Background Dakshin Haryana Bijli Vitran Nigam Limited (DHBVNL) is a power distribution company which is responsible for the distribution and retail supply of electricity in the south zone of Haryana comprising of Bhiwani, Faridabad, Gurgaon, Hissar, Jind, Narnaul and Sirsa circles. DHBVNL caters to around 29,26,294 customers including domestic, commercial, industrial, agricultural and others in FY 2015. As on March 31, 2015, the Government of Haryana (GoH) holds 69.61% of shares of DHBVNL while the balance 30.38% stake is held by Haryana Vidyut Prasaran Nigam Limited (HVPNL).

Key Strengths

The methodology is given final shape in consultation with the department of financial services (ministry of finance), Indian Banks’ Association and major public sector banks.

hh Timely payment of subsidy by the State Government

Financial performance has a weightage of 60 per cent. This covers subsidy, cost coverage ratio, aggregate technical and commercial (AT&C) losses, financial planning and the likes. Efficient regulatory practices hold the second best weightage of 15 per cent.

hh Implementation of key reform measures such as setting-up of consumer grievance forums, special courts for power theft and e-payment facilities for consumers, etc.

The report noted the absolute subsidy dependence for most states remained high, mostly due to the subsidised nature of rates, particularly for agricultural consumers. Among the major findings, AT&C losses for a few utilities have deteriorated due to increased rural supply. Regulatory clarity is gradually appearing, with state

hh Conducive regulatory environment with issue of tariff order and true-up order

hh Low O&M cost at 0.90% of total revenue including subsidy and high overall consumer metering >95% for FY 2014 as well as for FY 2015

Key Concerns hh Continued high AT&C losses at 28.31% in FY 2015 as compared with 27.07% during FY 2014 hh Low billing efficiency of 75.53% in FY 2015

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hh High power purchase cost at ` 4.49 per unit in FY 2015 hh Delay in filing of tariff petition for FY 2017 hh Non-submission of audited accounts for FY 2015 hh Low cost coverage ratio of 0.87x in FY 2015

Key Actionables hh Reduction in AT&C loss level by focusing more on circles which have high AT&C losses Billing efficiency to be improved through various administrative and technical measures hh Audit of accounts to be finalized in a time bound manner and timely filing of tariff petition hh Cost coverage to be improved through suitable tariff increase and curtailment of losses hh Effective implementation of UDAY (Ujwal Discom Assurance Yojana)

Uttar Haryana Bijli Vitran Nigam Limited

C+

Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL) is a power distribution company which is responsible for the distribution and retail supply of electricity in the North Zone of Haryana comprising of Ambala, Yamunanagar, Kurukshetra, Karnal, Sonepat, Rohtak, Panipat, Jhajjar and Kaithal circles. UHBVNL caters to around 26,35,725 customers including domestic, commercial, industrial, agricultural and others in FY 2015.

Key Strengths hh Timely payment of subsidy by the State Government hh Conducive regulatory environment with issue of tariff order and true-up order hh Implementation of key reform measures such as setting-up of consumer grievance forums, special courts for power theft and e-payment facilities for consumers, etc

increase and curtailment of losses hh Effective implementation of UDAY

Himachal Pradesh State Electricity Board Limited

B+

The erstwhile Himachal Pradesh State Electricity Board (HPSEB) was constituted in the year 1971. Erstwhile HPSEB carried out functions of generation, transmission and distribution for the state of Himachal Pradesh up to June 10, 2010. In June 2010, Government of Himachal Pradesh (GoHP), transferred the functions of distribution, trading and generation of electricity to Himachal Pradesh State Electricity Board Limited (HPSEBL) and the function of evacuation of power by transmission lines to Himachal Pradesh Power Transmission Company Limited (HPPTCL), vide the Himachal Pradesh Power Sector Reforms Transfer Scheme, 2010. A separate generation company for execution of new projects in state sector was already created by GoHP. HPSEBL is responsible for the development (planning, designing and construction), operation and maintenance of power distribution system in Himachal Pradesh with inherent trading functions. Ownership and O&M of generating stations of erstwhile HPSEB and new commissioned projects was also given to HPSEBL.

Key Strengths hh Relatively low level of AT&C losses of 14.94% in FY 2015 hh Healthy billing efficiency of 88.16% in FY 2015 hh Low power purchase cost at ` 3.06 per unit in FY 2015 hh Significant improvement in cost coverage to 0.94x in FY 2015 hh Conducive regulatory environment including adoption of MYT framework, timely filing of tariff petition and following stipulated norms etc.

Key Concerns

Key Concerns hh Continued high AT&C losses at 33.53% in FY 2015 as compared with 35.65% during FY 2014 hh Low billing efficiency of 69.42% in FY 2015 hh High power purchase cost at ` 4.57 per unit in FY 2015 hh Delay in filing of tariff petition for FY 2017 hh Non-submission of audited accounts for FY 2015 hh Low cost coverage ratio of 0.85x in FY 2015 and 0.83x in FY 2014

hh Significant delay in making the audited financials available, non-provisioning of complete employees related liabilities hh High operating cost primarily due to high employee expenses and relatively high O&M cost RPO compliance not achieved hh Delay in payment of subsidy and delay in issue of true-up order for FY 2014 hh Elongated payables period at 188 days in FY 2015

Key Actionables

hh Reduction in AT&C loss level by focusing more on circles which have high AT&C losses Billing efficiency to be improved through various administrative and technical measures

hh Continue to maintain low level of AT&C losses as well as the billing efficiency hh Timely preparation of audited improvement in quality of accounts

hh Audit of accounts to be finalized in a time bound manner

hh Rationalization of employee cost and other operating cost

hh Timely filing of tariff petition hh Cost coverage to be improved through suitable tariff

August 2016

accounts

and

hh Timely realization of entire subsidy receivable from State Government

CoverStory

Punjab State Power Corporation Limited

B+

Punjab State Electricity Board was unbundled into two successor entities on April 16, 2010 i.e. PSPCL and PSTCL; PSPCL entrusted with Generation, Trading and Distribution functions and PSTCL entrusted with Transmission and State Load Despatch functions. PSPCL was formed pursuant to the implementation of Punjab Power Sector Reforms Transfer Scheme (Transfer Scheme) by the Government of Punjab.

Key Strengths hh Low AT&C Loss levels hh Net profit reported in the last three years hh Comfortable capital structure post restructuring hh Fuel & Power Purchase Cost Adjustment (FPPCA) framework is operational, allowing the increase in such â&#x20AC;&#x153;uncontrollableâ&#x20AC;? cost items to be recovered from consumers on quarterly basis Low receivable and payable days hh Good quality of service/ public interface

Jodhpur Vidyut Vitran Nigam Limited

C+

odhpur Vidyut Vitran Nigam Limited (JdVVNL) is an unbundled state power distribution company of erstwhile Rajasthan State Electricity Board (RSEB). As per the Rajasthan Power Sector Reforms Act, 1999 of Government of Rajasthan (GoR), the erstwhile Rajasthan State Electricity Board (RSEB) was unbundled into a Generation Company, a Transmission Company and three Distribution Companies (Discoms) with effect from July 19, 2000. JdVVNL covers 10 districts viz. Jodhpur, Jaisalmer, Bikaner, Sirohi, Jalore, Barmer, Pali, Churu, Hanumangarh and Shriganganagar.

Key Strengths hh Timely receipt of tariff subsidies hh Implementation of key reform measures such as setting-up of consumer grievance forums, special courts for power theft and e-payment facilities for consumers, etc.

Key Concerns hh Continued high AT&C losses at 27.14% in FY 2015

Key Concerns

hh Low billing efficiency of 75.53% in FY 2015

hh Absolute subsidy dependence for the state as a whole remains high, given the subsidized nature of tariff particularly towards agriculture consumers

hh High power purchase cost at ` 4.31 per unit in FY 2015

hh Low cost efficiency on account of high employee costs

hh Low cost coverage ratio of 0.64x in FY 2015

hh Low regulatory clarity, as reflected by the fact that no true-up petition has been filed for the last two years Audited accounts for FY 2015 have not been made available

Key Actionables hh Continued maintenance of low AT&C loss levels hh To file tariff petitions in time in order for timely true-up of earlier years hh To ensure availability of audited accounts in a timely manner hh UDAY already signed. Timely implementation of the same by State Government remains critical

hh Huge interest costs hh Significant delay in submission of tariff petition, nonissuance of tariff order for FY 2016 and true up order for FY 2014

Key Actionables hh Reduction in AT&C loss level by focusing more on circles which have high AT&C losses Billing efficiency to be improved through various administrative and technical measures hh Timely submission of tariff petitions and issuance of tariff order by SERC hh Tariff increase and achievement of higher cost efficiency hh Effective implementation of UDAY

Ajmer Vidyut Vitran Nigam Limited

C+

Ajmer Vidyut Vitran Nigam Limited (AVVNL) is an unbundled state power distribution company of erstwhile Rajasthan State Electricity Board (RSEB). As per the Rajasthan Power Sector Reforms Act, 1999 of Government of Rajasthan (GoR), the erstwhile Rajasthan State Electricity Board (RSEB) was unbundled into a Generation Company, a Transmission Company and three Distribution Companies (Discoms) w.e.f. July 19, 2000. AVVNL covers 11 districts of Rajasthan namely Ajmer, Bhilwara, Nagaur, Sikar, Jhunjhunu, Udaipur, Banswara, Chittorgarh, Rajsamand, Doongarpur and Pratapgar.

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Key Strengths

hh Timely receipt of tariff subsidies

hh Implementation of key reform measures such as setting-up of consumer grievance forums, special courts for power theft and e-payment facilities for consumers, etc.

Key Concerns hh Deterioration in AT&C Losses to 27.94% in FY 2015 hh Low billing efficiency of 73.92% in FY 2015 hh High power purchase cost at â&#x201A;š 4.36 per unit in FY 2015

Key Concerns hh Deterioration in AT&C Losses to 31.98% in FY 2015 Low billing efficiency of 69.54% in FY 2015 hh High power purchase cost at `4.28 per unit in FY 2015

hh Huge interest costs

hh Low cost coverage ratio of 0.65x in FY 2015 and 0.56x in FY 2014

hh Low cost coverage ratio of 0.68x in FY 2015 and 0.60x in FY 2014

hh Significant delay in submission of tariff petition, nonissuance of tariff order for FY 2016 and trueup order for FY 2014

Key Actionables hh Reduction in AT&C loss level by focusing more on circles which have high AT&C losses Billing efficiency to be improved through various administrative and technical measures hh Timely submission of tariff petitions and issuance of tariff order by SERC hh Tariff increase and achievement of higher cost efficiency hh Effective implementation of UDAY

Jaipur Vidyut Vitran Nigam Limited

C+

Jaipur Vidyut Vitran Nigam Limited (JVVN) is an unbundled state power distribution company of erstwhile Rajasthan State Electricity Board (RSEB). As per the Rajasthan Power Sector Reforms Act, 1999 of Government of Rajasthan (GoR), the erstwhile Rajasthan State Electricity Board (RSEB) was unbundled into a Generation Company, a Transmission Company and three Distribution Companies (Discoms) with effect from July 19, 2000. JVVN covers the 12 districts of Rajasthan namely Jaipur, Dausa, Alwar, Bharatpur, Dholpur, Kota, Bundi, Baran, Jhalawar, Sawaimadhopur, Tonk and Karoli.

hh Significant delay in submission of tariff petition, non-issuance of tariff order for FY 2016 and true up order for FY 2014

Key Actionables hh Reduction in AT&C loss level by focusing more on circles which have high AT&C losses hh Billing efficiency to be improved through various administrative and technical measures hh Timely submission of tariff petitions and issuance of tariff order by SERC hh Tariff increase and achievement of higher cost efficiency hh Effective implementation of UDAY

Uttarakhand Power Corporation Limited

Uttarakhand Power Corporation Limited (UPCL), formerly Uttaranchal Power Corporation Limited was incorporated under the Companies Act, 1956 on February 12, 2001 consequent upon the formation of the State of Uttaranchal. UPCL was entrusted to cater to the Transmission & Distribution Sectors inherited after the de-merger from Uttar Pradesh Power Corporation Limited since April 01, 2001. On June 01, 2004, Power Transmission Corporation of Uttarakhand Limited was formed to maintain and operate Transmission lines and substations while UPCL catered to sub-transmission/ distribution lines in the State. UPCL is a company wholly owned by the State Government and operates as the sole distribution licensee engaged in the business of distribution and retail supply of power in the State.

Key Strengths hh Continuous improvement in AT&C losses to 17.4% in FY 2015 hh Healthy collection efficiency at 100% in FY 2014 and FY 2015 hh No reliance on subsidy support from State Government hh Low power purchase cost at ` 3.13 per unit in FY 2015

August 2016

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hh Adoption of MYT, timely filing of tariff petition and issuance of tariff order & true up order. hh High overall consumer metering at 99.52% in FY 2015 hh Implementation of key reform measures

Key Concerns hh Relatively high level of AT&C loss (~22% in FY 2015), although the same has shown improvement over the last couple of years

Key Concerns

hh Weak financial profile as reflected in sustained net losses

hh Decline in cost coverage ratio from 1.10x in FY 2014 to 0.89x in FY 2015

hh Negative net worth resulting in adverse capital structure

hh High receivable and payable levels as reflected by the collection period and creditors period of 185 days and 250 days respectively

hh Delay in submission of audited accounts of FY 2015

hh RPO compliance not achieved

Key Actionables

hh Low cost efficiency in terms of high O&M/admin costs (FY 2015: 4.8% of operating income) and high manpower costs (FY 2015: 8.0% of operating income)

Key Actionables hh Continuation of reduction in AT&C losses and sustenance of high collection efficiency hh Improvement in cost competitiveness through increase in power procurement under long-term PPAs Reduction in collection period and creditors period hh Improvement in cost coverage through rationalization of O&M and employee costs hh Effective implementation of UDAY

Paschimanchal Vidyut Vitran Nigam Limited

Erstwhile UPSEB was unbundled under the first reforms transfer scheme dated 14th Jan 2000, into three separate entities: Uttar Pradesh Power Corporation Limited (UPPCL) – vested with the function of Transmission and Distribution within the State; Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) – vested with the function of Thermal Generation within the State; and Uttar Pradesh Jal Vidyut Nigam Limited (UPJVNL) – vested with the function of Hydro Generation within the State. Through another Transfer Scheme dated 15th January, 2000, assets, liabilities and personnel of Kanpur Electricity Supply Authority (KESA) under UPSEB were transferred to Kanpur Electricity Supply Company (KESCO), a company registered under the Companies Act, 1956. Subsequently, four new distribution companies were created vide Uttar Pradesh Transfer of Distribution Undertaking Scheme 2003 namely Dakshinanchal Vidyut Vitran Nigam Limited, Madhyanchal Vidyut Vitran Nigam Limited, Purvanchal Vidyut Vitran Nigam Limited and Paschimanchal Vidyut Vitran Nigam Limited.

hh No true-up done for FY 2014 on account of delay in submission of audited accounts hh Reduction in AT&C losses through improvement in billing efficiency and collection efficiency Improving cost coverage through tariff rationalization hh To ensure availability of audited accounts in a timely manner hh Timely and adequate subsidy support from State Government hh Timely filing of Tariff Petition and true-up petition hh Fuel and Power Purchase Cost Adjustment to be implemented (either monthly or quarterly) hh UDAY already signed. Timely implementation of the same by State Government remains critical

Kanpur Electricity Supply Company Limited Key Strengths

C+

hh AT&C losses reduced to 27.3% in FY 2015 from 35.8% in FY 2014 hh Improvement in cost coverage ratio to 0.91 in FY 2015 as compared to 0.67 in FY 2014 hh High collection efficiency at 98.32% for FY 2015 hh Improvement in payable days to 83 in FY 2015 as compared to 141 days in FY 2014 hh Tariff order for FY 2016 in place

Key Concerns hh Significantly stretched receivable days hh Negative net worth resulting in adverse capital structure hh Delay in submission of audited accounts of FY 201415 hh RPO compliance not achieved hh No true-up done for FY 2014 on account of delay in submission of audited accounts

Key Strengths

Key Actionables

hh Tariff order for FY 2016 in place

hh Reduction in AT&C loss levels Improving cost coverage through tariff rationalization

hh Steady progress in improvement of public interface/ quality of service with measures such as special courts for anti-theft measures, dedicated IT cells, establishment of call centres and epayment facilities hh Satisfactory level of cost efficiency

August 2016

hh To ensure availability of audited accounts in a timely manner hh Timely and adequate subsidy support from State Government

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hh Timely filing of Tariff Petition and true-up petition hh Fuel and Power Purchase Cost Adjustment to be implemented (either monthly or quarterly) hh UDAY already signed. Timely implementation of the same by State Government remains critical

Dakshinanchal Vidyut Vitran Nigam Limited

C+

Key Actionables hh Reduction in AT&C losses through improvement in billing efficiency and collection efficiency Improving cost coverage through tariff rationalization hh To ensure availability of audited accounts in a timely manner hh Timely and adequate subsidy support from State Government

Key Strengths

hh Timely filing of Tariff Petition and true-up petition

Tariff order for FY 2016 in place

hh Fuel and Power Purchase Cost Adjustment to be implemented (either monthly or quarterly)

Key Concerns

hh UDAY already signed. Timely implementation of the same by State Government remains critical

hh High level of AT&C losses at 33.6% in FY 2015 which has deteriorated slightly as compared to last year hh Weak financial profile as reflected in sustained net losses, and weak cost coverage 0.70 in FY 2015 hh Significantly stretched receivable and payable days hh Negative net worth resulting in adverse capital structure

Purvanchal Vidyut Vitran Nigam Limited Key Strengths

hh Tariff order for FY 2016 in place

Key Concerns

hh Delay in submission of Audited accounts FY 2015

hh High level of AT&C losses at 40.8% in FY 2015 which has deteriorated as compared to last year

hh No true-up done for FY 2014 on account of delay in submission of audited accounts

hh Weak financial profile as reflected in sustained net losses, and weak cost coverage 0.69 in FY2015 hh Significantly stretched receivable and payable days

Key Actionables hh Reduction in AT&C losses through improvement in billing efficiency and collection efficiency Improving cost coverage through tariff rationalization

hh Negative net worth resulting in adverse capital structure hh Delay in submission of audited accounts of FY 2015

hh To ensure availability of audited Accounts in timely manner

hh No true-up done for FY 2013-14 on account of delay in submission of audited accounts

hh Timely and adequate subsidy support from State Government

Key Actionables

Madhyanchal Vidyut Vitran Nigam Limited Key Strengths

hh Tariff order for FY 2016 in place

Key Concerns hh High level of AT&C losses at 35.2% in FY 2015 which has deteriorated as compared to last year hh Weak financial profile as reflected in sustained net losses, and weak cost coverage 0.68 in FY 2015 hh Significantly stretched receivable and payable days hh Negative net worth resulting in adverse capital structure hh Delay in submission of audited accounts of FY 2015 hh No true-up done for FY 2014 on account of delay in submission of audited accounts

hh Reduction in AT&C losses through improvement in billing efficiency and collection efficiency Improving cost coverage through tariff rationalization hh To ensure availability of audited accounts in a timely manner hh Timely and adequate subsidy support from State Government hh Timely filing of Tariff Petition and true-up petition hh Fuel and Power Purchase Cost Adjustment to be implemented (either monthly or quarterly) hh UDAY already signed. Timely implementation of the same by State Government remains critical

Assam Power Distribution Company Limited

Assam Power Distribution Company Limited (APDCL) was formed in FY 2010 by merging three distriution entities, namely Lower, Central and Upper Assam Distribution Company, to carry out the function of distribution and retail sale of electricity in the entire state of Assam. Currently, APDCL is catering to over 26 lakh consumers in the State of Assam.

August 2016

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hh Timely receipt of subsidy from the State Government

Key Strengths hh Regulatory clarity in place, on the back of existing multi-year tariff (MYT) order for the control period FY 2014 to FY 2016, as well as tariff order for FY 2016 hh Fuel and Power Purchase Price Adjustment (FPPPA) framework allows quarterly pass on of higher fuel and power purchase costs hh Favourable consumption mix, on account of a low share of agricultural connections compared to the industrial and commercial segments, which has higher unit realizations, leading to low cross subsidization hh Moderate capital structure, supported by government grant received for capital projects

Key Concerns hh High AT&C loss levels at 24.47% during FY 2015, although the same have improved marginally. hh Despite improvement in distribution loss over the past couple of years, the loss levels continue to remain higher than as allowed by Assam Electricity Regulatory Commission (AERC), leading to disallowance of power purchase costs, which adversely affects allowed returns hh Weak financial profile, as reflected through consistent operating level losses over the past few years Low cost coverage of 0.80x in FY 2015 hh Tight liquidity profile, leading to substantial build up of receivables and payables position

Key Actionables hh Reduction in AT&C losses through improvement in billing efficiency and collection efficiency hh Improvement in cost coverage (which stood at 0.80x in FY 2015); utility has reported operating losses as tariffs have been inadequate to cover operating costs hh Gradual decline of subsidy dependence from State Government hh Timely realization of outstanding receivables

South Bihar Power Distribution Company Limited

B+

Under the new ‘Bihar State Electricity Reforms Transfer Scheme 2012’, the Bihar State Electricity Board (BSEB) has been unbundled into five companies w.e.f. November 1, 2012: Bihar State Power (Holding) Company Limited (BSPHCL), Bihar State Power Transmission Company Limited (BSPTCL), Bihar State Power Generation Company Limited (BSPGCL) and two distribution companies viz. South Bihar Power Distribution Company Limited (SBPDCL) and North Bihar Power Distribution Company Limited (NBPDCL). BSPHCL owns the shares of the newly-incorporated four other companies.

Key Strengths hh Regulatory clarity in place, with tariff order for FY 2016 in place and timely filing of tariff petition/orders hh Satisfactory progress in terms of reforms and restructuring of the sector, which includes unbundling on functional lines and corporatization

August 2016

hh Timely availability of audited accounts for FY 2015 hh Improvement of public interface/quality of service e.g. special courts for anti-theft measures, establishment of call centres and e-payment facilities hh Fuel & Power Purchase Cost Adjustment (FPPCA) framework operational, allowing increase in such “uncontrollable” cost to be recovered from consumers hh Moderate receivables and payables, with the same having shown a declining trend over the years

Key Concerns hh High level of AT&C losses at 46.5%, with marginal improvement over past few years hh While cost coverage has improved significantly over the last year, it still remains low at 0.88 for FY 2015 High and growing dependence on subsidy support hh Moderate level of cost efficiency

Key Actionables hh Reduction in AT&C losses hh Improving cost coverage by effecting frequent tariff hikes hh Reduction in the power procurement costs by entering into long term PPAs with IPPs and through strict compliance of FPPCA mechanism hh UDAY already signed. Timely implementation of the same by State Government remains critical

North Bihar Power Distribution Company Limited

Key Strengths hh Satisfactory progress in terms of reforms and restructuring of the sector, which includes unbundling on functional lines and corporatization hh Timely receipt of subsidy from the State Government hh Regulatory clarity in place, with tariff order for FY 2016 in place and timely filing of tariff petition/orders Timely availability of audited financial accounts for FY 2015 hh Implementation/steady progress in improvement of public interface/quality of service with measures such as special courts for anti-theft measures, dedicated IT cells, establishment of call centres and e-payment facilities hh Fuel & Power Purchase Cost Adjustment (FPPCA) framework operational, allowing increase in such “uncontrollable” cost to be recovered from consumers

Key Concerns hh While cost coverage has improved significantly over the last year, it still remains low at 0.88 for FY 2015 hh High level of AT&C losses at 36.7% although it has shown improvement over past few years. hh High amount of receivables and payables, although the same has shown a declining trend over the years High and growing dependence on subsidy support hh Moderate level of cost efficiency

CoverStory

Key Actionables hh Reducing AT&C losses by focusing on T&D loss reduction efforts in areas having higher loss levels Improving cost coverage by effecting frequent tariff hikes hh Reduction in the power procurement costs by entering into long term PPAs with IPPs and through strict compliance of FPPCA mechanism hh Reducing payable and receivable days hh UDAY already signed. Timely implementation of the same by State Government remains critical

Meghalaya Power Distribution Corporation Limited

Meghalaya Power Distribution Corporation Limited (MePDCL) has begun segregated commercial operations of power distribution as an independent entity from 1st April 2012 onwards. Previously, Meghalaya Energy Corporation Limited (MeECL) was the sole electricity utility in Meghalaya responsible for generation, transmission and distribution of electricity in the state. Although Meghalaya State Electricity Board (MSEB) was unbundled w.e.f. April 1, 2010 under â&#x20AC;&#x153;The Meghalaya Power Sector Reforms Transfer Scheme 2010â&#x20AC;?, the annual accounts of MeECL (Holding Company) for FY 2012 are for all the three functions namely generationtransmission-distribution.

Key Strengths hh Implementation of key reform measures, unbundling of erstwhile electricity board, setting-up of consumer grievance forums, special courts for power theft and e-payment facilities for consumers, etc. hh Tariff order issued for FY 2016

Key Concerns hh High AT&C losses at 36% in FY 2015 hh Absence of audited accounts for FY 2015 hh Low billing efficiency of 69% in FY 2015 hh High power purchase cost at ` 4.83 per unit in FY 2015 hh Tariff petition for FY 2017 not filed and true-up order for FY 2014 not issued hh Low cost coverage ratio of 0.74x in FY 2015 and 0.69x in FY 2014

Key Actionables hh Reduction in AT&C loss by focusing more on circles which have high AT&C losses hh Billing efficiency to be improved through various administrative and technical measures hh Audit of accounts to be finalized in a time bound manner

Tripura State Electricity Corporation Limited

Tripura State Electricity Corporation Limited (TSECL) is sole electricity utility in Tripura responsible for generation, transmission and distribution of electricity in the state.

Key Strengths hh Power purchased from outside is sourced under longterm arrangement hh Timely receipt of subsidy from the State Government hh Implementation/steady progress in key reform measures such as setting up of special courts for antitheft measures, metering of consumers along with computerized billing, setting up of customer service and dedicated IT cell head, etc.

Key Concerns hh Continued high AT&C losses at 32.84% in FY 2015 as compared with 35.29% during FY 2014 hh Delay in audit of accounts hh Unfavorable regulatory environment, such as tariff petition not filed for FY 2016 hh Low cost coverage ratio hh High amount of receivables and payables hh Unbundling process not yet completed

Key Actionables hh Reduction in AT&C loss by focusing more on circles which have high AT&C losses hh Timely audit of accounts and timely filing of tariff petition hh Achievement of high cost efficiency and increase in tariff to improve the cost coverage ratio hh Unbundling of TSECL

West Bengal State Electricity Distribution Company Limited

B+

The erstwhile West Bengal State Electricity Board (WBSEB) has been unbundled into West Bengal State Electricity Distribution Company Limited (WBSEDCL) and West Bengal State Electricity Transmission Company Limited (WBSETCL) in accordance with the transfer scheme notified by the Government of West Bengal dated January 25, 2007. WBSEDCL is a power distribution licensee for almost the entire state of West Bengal, except for certain areas which are catered by private distribution licensees, and accounts for about 80% of the power supply in the state.

Key Strengths

hh Timely filing of tariff petition

hh Monthly Variable Cost Adjustment (MVCA) framework for pass-on of increases in power purchase cost is operational

hh Cost coverage to be improved through suitable tariff increase and curtailment of losses

hh Long maturity profile of outstanding debt on

hh Limited dependence on State Government subsidy

August 2016

CoverStory

WBSEDCLâ&#x20AC;&#x2122;s book, a substantial portion of which is contributed by State Government loans hh Timely finalization of audited accounts, which helps in timely release of tariff orders

Key Concerns hh High AT&C losses of 22.30% in FY 2015 hh Low billing efficiency at 77.86% in FY 2015

hh Improvement in cost coverage in FY 2015 (0.91 times) over FY 2014 (0.84 times)

hh High employee cost at 22.1% of revenue in FY 2015

hh Favourable consumption mix, as reflected by a low share of agricultural connections as compared to the industrial and commercial segments, which have higher tariffs

hh Delay in payment of subsidy by the State Government

Key Concerns

hh Delay in finalization of audited accounts

hh Decline in collection efficiency in FY 2015 (94%) over FY 2014 (97%), coupled with high distribution loss levels led to increase in overall AT&C loss levels; distribution loss levels continue to remain higher, leading to disallowance of power purchase costs, which adversely affects allowed returns

Key Actionables

hh Significant increase in short term borrowing from FY 2011 onwards, exposes it to refinancing risks, leading to deterioration in capital structure. Also with allowed carrying cost on regulatory assets being less than interest cost on WC/short term debt, leading to under-recovery of WC interest cost Substantial build-up of regulatory assets pertaining to increase in power purchase and employee cost due to pay revision; however, WBERC has allowed carrying cost on regulatory assets

hh Billing efficiency to be improved through various administrative and technical measures

Key Actionables hh Improvement in AT&C loss levels through improvement in collection efficiency hh Timely release of tariff orders hh Improvement in cost coverage, leading to lower buildup of regulatory assets

Chhattisgarh State Power Distribution Company Limited

B+

Chhattisgarh State Power Distribution Company Limited (CSPDCL) was formed in 2009, consequent to the unbundling of Chhattisgarh State Electricity Board (CSEB). CSPDCL supplies power to the entire state of Chhattisgarh. Its consumer base stood at 42.95 lakh as at end FY 2015. As per the audited results provided for FY 2015, CSPDCL registered total revenue of ` 8,839 crore and net loss of ` 1,554 crore.

Key Strengths hh Healthy collection efficiency at 99.84% in FY 2015 hh Competitive power purchase cost at ` 3.55 per unit hh Tariff order issued as per the regulations for FY 2016 hh Implementation/steady progress in key reform measures and strengthening of regulatory environment, near 100% metering, presence of a dedicated IT cell, special courts etc. hh Mechanism in place for automatic pass through of fuel cost

August 2016

hh Delay in filing of tariff petition for FY 2017 hh Low cost coverage at 0.90x in FY 2015 hh Elongated payables period at 139 days in FY 2015

hh AT&C losses to be reduced through improvement in billing efficiency hh Timely preparation of audited accounts and timely payment of subsidy by the State Government

hh Rationalization of employee cost and ti mely filing of tariff petition hh Effective implementation of UDAY

Uttar Gujarat Vij Company Limited

A+

The Government of Gujarat unbundled and restructured the Gujarat Electricity Board with effect from 1st April, 2005. The Generation, Transmission and Distribution businesses of the erstwhile Gujarat Electricity Board were transferred to seven successor companies, namely Gujarat Urja Vikas Nigam Limited (GUVNL) - the holding company, Gujarat State Electricity Corporation Limited (GSECL) - generation company, Gujarat Energy Transmission Corporation Limited (GETCO) - transmission company and four power distribution companies namely, Dakshin Gujarat Vij Company Limited (DGVCL), Uttar Gujarat Vij Company Limited (UGVCL), Paschim Gujarat Vij Company Limited (PGVCL) and Madhya Gujarat Vij Company Limited (MGVCL).

Key Strengths hh Consistent track record of profitable operations aided by cost reflective tariffs, healthy cash collections and adequate subsidy support from State Government hh Comfortable cost coverage ratio and capital structure hh Healthy cash collections from the consumers, also aided by very low AT&C Loss Levels which remained at 8.53% for FY 2015 hh Fuel & Power Purchase Cost Adjustment (FPPCA) framework is operational, allowing increase in cost to be recovered from consumers quarterly hh Regulatory clarity in place, with timely filing of tariff petitions by discoms and issuance of tariff orders by GERC hh Timely submission September, 2015

audited

accounts

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hh Comfortable cost coverage ratio and capital structure

Key Concerns hh Subsidy dues receivable from GoG built-up from ` 727.7 crore on March 31, 2010 to ` 3,587 crore on March 31, 2015, due to lower budgetary allocation than actual subsidy claims. On annual basis, actual subsidy received always been 100% of budgetary allocation. However, allocation been lower than actual claim leading to increase in outstanding subsidies

Key Actionables hh Continued maintenance of low level of AT&C losses as well as high collection efficiency hh To improve subsidy collection levels and clear the pending subsidy claims from Government of Gujarat through higher budget provision going forward Leverage benefits available under UDAY

Dakshin Gujarat Vij Company Limited

A+

Key Strengths

hh Consistent track record of profitable operations aided by cost reflective tariffs, healthy cash collections and adequate subsidy support from State Government hh Comfortable cost coverage ratio and capital structure hh Healthy cash collections from the consumers, also aided by very low AT&C Loss Levels which remained at 8.91% for FY 2015 hh Fuel & Power Purchase Cost Adjustment (FPPCA) framework is operational, allowing increase in cost to be recovered from consumers quarterly hh Regulatory clarity in place, with timely filing of tariff petitions by discoms and issuance of tariff orders by GERC hh Timely submission September, 2015

audited

accounts

hh Healthy cash collections from the consumers, also aided by low AT&C Loss Levels which remained at 10.45% for FY 2015 hh Fuel & Power Purchase Cost Adjustment (FPPCA) framework is operational, allowing increase in cost to be recovered from consumers quarterly hh Regulatory clarity in place, with timely filing of tariff petitions by discoms and issuance of tariff orders by GERC hh Timely submission of audited accounts by September, 2015

Paschim Gujarat Vij Company Limited Key Strengths

hh Consistent track record of profitable operations aided by cost reflective tariffs, healthy cash collections and adequate subsidy support from State Government hh Comfortable capital structure

hh Healthy cash collections from the consumers hh Fuel & Power Purchase Cost Adjustment (FPPCA) framework is operational, allowing increase in cost to be recovered from consumers quarterly

Madhya Gujarat Vij Company Limited

A+

Key Strengths hh Consistent track record of profitable operations aided by cost reflective tariffs, healthy cash collections and adequate subsidy support from State Government

August 2016

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hh Regulatory clarity in place, with timely filing of tariff petitions by discoms and issuance of tariff orders by GERC hh Timely submission of audited accounts by September, 2015

Key Concerns hh High AT&C losses at 24.36% in FY 2015 hh Low billing efficiency at 78% in FY 2015 hh High employee cost at 12.72% of revenue in FY 2015

Key Concerns

hh Delay in filing of tariff petition for FY 2017 and issuance of true up order for FY 2014

hh High AT&C loss levels, which have increased from 23.9% in FY 2014 to 24.8% in FY 2015

hh Low cost coverage of 0.81x in FY 2015

hh Subsidy dues receivable from GoG built-up from ` 727.7 crore on March 31, 2010 to ` 3,587 crore on March 31, 2015, due to lower budgetary allocation than actual subsidy claims. On annual basis, actual subsidy received always been 100% of budgetary allocation. However, allocation been lower than actual claim leading to increase in outstanding subsidies

Key Actionables

hh Elongated collection period and low level of metering

Key Actionables hh AT&C losses to be brought down through improving the billing efficiency hh Rationalization of employee cost and timely filing of tariff petition hh Improvement in collection period and consumer metering

hh Reduction in AT&C losses through improvement in billing efficiency

hh Cost coverage to be improved through suitable tariff increase and curtailment of losses

hh To improve cost coverage by bringing down the actual costs in line with the levels allowed by GERC

Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited

hh To improve subsidy collection levels and clear the pending subsidy claims from Government of Gujarat through higher budget provision going forward hh Leverage benefits available under UDAY

Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited

Key Strengths hh Competitive power purchase cost of ` 4 per unit in FY 2015 hh Almost 100% sourcing of power through LT sources

Madhya Pradesh Poorv Kshetra Vidyut Vitaran Company Limited (MPPoKVVCL) is an unbundled state power distribution company of erstwhile Madhya Pradesh State Electricity Board (MPSEB). As per the Madhya Pradesh Vidyut Sudhar Adhiniyam 2000 of the Government of Madhya Pradesh (GoMP), the erstwhile MPSEB was unbundled into a generation company, a transmission company and three distribution companies (Discoms) with effect from November 1, 2002. MP Power Generating Company Limited (MPPGCL) was incorporated as the sole generation company, MP Power Transmission Company Limited (MPPTCL) was incorporated as the sole transmission company and three Discoms were incorporated in the form of MP Poorv Kshetra Vidyut Vitaran Company Limited (MPPoKVVCL), MP Madhya Kshetra Vidyut Vitaran Company Limited (MPMKVVCL) and MP Paschim Kshetra Vidyut Vitaran Company Limited (MPPKVVCL).

Key Strengths hh Competitive power purchase cost of ` 4 per unit in FY 2015 hh Timely receipt of subsidy from State Government hh Fuel cost adjustment framework is operational hh Lower reliance on external debt hh Almost 100% sourcing of power through LT sources

August 2016

hh Timely receipt of subsidy from the State Government hh Fuel cost adjustment framework is operational hh No untreated revenue gap as per the tariff order hh Lower reliance on external debt

Key Concerns hh Deterioration in AT&C losses at 23.82% in FY 2015 hh Low billing efficiency at 79% in FY 2015 hh Delay in filing of tariff petition for FY 2017 and issuance of true up order for FY 2014 hh Low cost coverage of 0.85x in FY 2015 hh Elongated collection period and low level of metering at 76% in FY 2015

Key Actionables hh AT&C losses to be brought down through improving the billing efficiency hh Timely filing of tariff petition hh Improvement in collection period and consumer metering hh Cost coverage to be improved through suitable tariff increase and curtailment of losses

Maharashtra State Electricity Distribution Company Limited

B+

The Government of Maharashtra unbundled and restructured the erstwhile Maharashtra State Electricity

CoverStory

Board (MSEB) with effect from 6th June, 2005. The Generation, Transmission and Distribution businesses of the erstwhile Maharashtra State Electricity Board were transferred to four successor companies, namely MSEB Holding Company Limited (MHCL), Maharashtra State Power Generation Company Linited (MSPGCL), Maharashtra State Electricity Transmission Company Limited (MSETCL) and Maharashtra State Electricity Distribution Company Limited (MSEDCL).

Key Strengths hh MSEDCL is the first utility in the country to successfully demonstrate the implementation of distribution franchisee scheme in 2007, which is also being implemented in other circles of the cities namely, Jalgaon, Aurangabad, & Nagpur since May 2011 Fuel Adjustment Cost (FAC) mechanism with a ceiling in place hh Compliance with RPO target level in place to a large extent hh Tariff determination for FY 2016 in place

Key Concerns hh Increased AT&C losses in FY 2015 hh Weak cost coverage indicators in FY 2015 due to 20% tariff subsidy for about 11 month period (till Nov 2014) by State Government for all the consumers hh Increased leveraging levels, due to further reduction in net worth in FY 2015 following a provision of â&#x201A;š 679 crore for RPO fund Significant dependence on subsidy support from State Government, which has also seen an increasing trend due to rise in cost of power supply & continuing subsidized nature of tariff towards agriculture category hh Cost of supply remains vulnerable due to dependence on short term sources of power, given the continuing power deficit situation in the state hh Sharp increase in debtor levels in FY 2015 due to rise in overdue receivables hh Delays in submission of audited accounts in FY 2015

Key Actionables hh Improvement in AT&C loss levels hh To recover the outstanding dues and ensure healthy collection efficiency hh To submit tariff petitions and true-up petitions in a timely manner hh To improve cost coverage by bringing down the actual costs in line with the levels allowed by MERC hh To ensure availability of audited accounts in a timely manner

Eastern Power Distribution Company Of Andhra Pradesh Limited

B+

On February 1, 1999, the Government of Andhra Pradesh (GoAP) initiated the first phase of reforms and restructuring in APâ&#x20AC;&#x2122;s power sector by unbundling erstwhile APSEB into APGENCO and APTRANSCO to cater the generation and transmission & distribution respectively. APTRANSCO was further reorganized into four distribution companies to cater to the needs of the different districts of erstwhile Andhra Pradesh (AP). Accordingly, The Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL) was formed on March 31, 2000 and is engaged in distribution and bulk supply of power in the Eastern region of Andhra Pradesh. APEPDCL covers the five circles viz. Srikakulam, Visakhapatnam, Vizianagaram, East and West Godavari districts & 20 Divisions of Coastal Andhra Pradesh and caters to consumer base of about 50 lakh.

Key Strengths hh Very Low level of AT&C losses of 7.86% in FY 2015 hh Healthy billing efficiency at 95.21% in FY 2015 hh Timely receipt of tariff subsidy from the Government of Andhra Pradesh (GoAP) hh Tariff order issued as per the regulations for FY 2016 hh Implementation of key reform measures such antitheft measures, customer service, call center, etc.

Key Concerns hh High power purchase cost at ` 4.26 per unit in FY 2015 hh Delay in filing of tariff petition for FY 2017 and issuance of true up order for FY 2014 hh High employee cost at 14.3% of revenue in FY 2015 hh Deterioration in cost coverage to 0.87x in FY 2015

Key Actionables hh Continued maintenance of low level of AT&C losses as well as the billing efficiency hh Rationalization of power purchase cost by higher sourcing through long-term sources hh Timely filing of tariff petition and issuance of true-up order

August 2016

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Southern Power Distribution Company of Andhra Pradesh Limited

On February 1, 1999, the Government of Andhra Pradesh (GoAP) initiated the first phase of reforms and restructuring in APâ&#x20AC;&#x2122;s power sector by unbundling erstwhile APSEB into APGENCO and APTRANSCO to cater the generation and transmission & distribution respectively. APTRANSCO was further reorganized into four distribution companies to cater to the needs of the different districts of erstwhile Andhra Pradesh (AP). In this process, Andhra Pradesh Southern Electricity Distribution Company was formed in April 1, 2000, to serve Krishna, Guntur, Prakasam, Nellore, Chittoor and Kadapa districts. After the bifurcation of the erstwhile Andhra Pradesh into the two new states of Andhra Pradesh and Telangana on June 2, 2014, two more districts Anantapur and Kurnool were added to the APSPDCL.

Key Strengths hh Healthy billing efficiency at 90% in FY 2015 hh Timely receipt of tariff subsidy from the Government of Andhra Pradesh (GoAP) hh Tariff order issued as per the regulations for FY 2016 hh Implementation of key reform measures such as antitheft measures, customer service, call center, etc. hh Well managed receivable period of 56 days

was unbundled on functional lines into a transmission & distribution company called Karnataka Power Transmission Corporation Limited (KPTCL) and a generating company called Visvesvaraya Vidyuth Nigam Limited (VVNL) in April 2000. Thereafter, KPTCL was further unbundled into 5 independent companies effective from June 1, 2002, with one transmission company named KPTCL and four distribution companies namely Bangalore Electricity Supply Company Limited (BESCOM), Mangalore Electricity Supply Company Limited (MESCOM), Hubli Electricity Supply Company Limited (HESCOM) and Gulbarga Electricity Supply Company Limited (GESCOM). Later in November 2005, erstwhile MESCOM was split-up into two companies namely MESCOM and Chamundeshwari Electricity Supply Corporation Limited (CESCOM).

Key Strengths hh Best among Karnataka DISCOMs in distribution losses and metering aided by favorable consumer profile hh Improvement in cost coverage ratio in FY 2015 led by higher tariff realization & lower cost of supply hh Regulatory clarity in the State, with presence of multiyear tariff regime along with regular tariff filings and tariff orders issuance hh Timely availability of audited financial accounts for FY 2015 hh 100% RPO compliance achieved in FY 2015

Key Concerns hh Deterioration in AT&C losses during FY 2015 to 19.38% hh Decline in collection efficiency to 89.91% in FY 2015 hh High power purchase cost at ` 4.42 per unit in FY 2015 hh Delay in filing of tariff petition for FY 2017 and nonissuance of true up order for FY 2014 hh High employee cost at 14.4% of revenue in FY 2015 hh Deterioration in cost coverage to 0.78x in FY 2015

hh More than 90% of power purchased through long term power purchase agreements in FY 2015

Key Concerns hh Tariff petition for FY 2017 has been filed with a delay of 15 days hh High level of O&M and employee expenses as a proportion of revenues hh High level of receivable and payable days; MESCOM has been delaying on payments to state generation utility hh Karnataka Power Corporation Limited (KPCL)

Key Actionables hh AT&C losses to be reduced through suitable improvement in collection efficiency

Key Actionables

hh Rationalization of power purchase cost by higher sourcing through long-term sources

hh To improve cost coverage by bringing down the actual costs in line with the levels allowed by KERC

hh Timely filing of tariff petition and issuance of true-up order hh Cost coverage to be improved through suitable tariff increase and curtailment of costs

Mangalore Electricity Supply Company Limited

BGovernment of Karnataka initiated reform process in the state power sector during 1999-2000 with enactment of Karnataka Electricity Reforms Act (KERA) 1999. As part of these reforms, Karnataka Electricity Regulatory Commission (KERC) was set up in November 1999 and the erstwhile Karnataka Electricity Board (KEB)

August 2016

hh Continued maintenance of low AT&C loss levels.

hh To recover the outstanding dues and ensure healthy collection efficiency hh To ensure timely payments to power generating companies hh To submit tariff petitions in a timely manner

Bangalore Electricity Supply Company Limited

Key Strengths hh BESCOMâ&#x20AC;&#x2122;s AT&C loss level has remained satisfactory and shown a declining trend and is above average among all Karnataka DISCOMs

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hh Largest DISCOM in Karnataka accounting for 45-50% of total energy sales; Consumer profile is also favorable with good mix of HT and Commercial consumers

hh To recover the outstanding dues and ensure healthy collection efficiency

hh Improvement in cost coverage ratio during FY 2015 led by higher tariff realization per unit

hh To submit tariff petitions in a timely manner

hh Regulatory clarity in the State, with multi-year tariff regime in place and regular tariff filings and tariff orders issuance observed hh Timely availability of audited financial accounts for FY 2015 hh 100% RPO compliance in FY 2015

hh To ensure timely payments to power generating companies

Hubli Electricity Supply Company Limited

B+

Key Strengths hh Improvement in cost coverage ratio in FY 2015 led by higher tariff realization and lower cost of supply

hh Tariff petition for FY 2017 has been filed with a delay of 15 days

hh Regulatory clarity in the State, with multi-year tariff regime in place and regular tariff filings and tariff orders issuance observed 100% RPO Compliance achieved in FY 2015

hh Increase in cost of power procurement in FY 2015 visĂ -vis FY 2014

hh Timely availability of audited financial accounts for FY 2015

hh High level of pending receivables

Key Concerns

Key Actionables

hh High level of AT&C losses owing to high distribution loss levels and Moderate collection efficiency

Key Concerns

hh To continue to focus on loss reduction efforts in areas having higher loss levels hh To improve cost coverage by bringing down the actual costs in line with the levels allowed by KERC hh To recover the outstanding dues and ensure healthy collection efficiency

hh Weak financial profile marked by high accumulated losses and high receivable and payable days hh Tariff petition for FY 2017 has been filed with a delay of 15 days hh Delays in meeting debt servicing obligations

hh To submit tariff petitions in a timely manner

Key Actionables

Chamundeshwari Electricity Supply Corporation Limited

hh Reduction in AT&C losses through improvement in billing efficiency, collection efficiency and higher metering

Key Strengths hh Improvement in AT&C loss levels during FY 2015

hh To improve cost coverage by bringing down the actual costs in line with the levels allowed by KERC

hh Improvement in cost coverage in FY 2015 led by higher tariff realization and lower cost of supply

hh To recover the outstanding dues and ensure healthy collection efficiency

hh Regulatory clarity in the State, with presence of multi-year tariff regime along with regular tariff filings and tariff orders issuance 100% RPO Compliance achieved in FY 2015

hh To ensure timely payments to lenders

hh Timely availability of audited financial accounts for FY 2015

Key Concerns

hh To ensure timely payments to power generating companies hh To file tariff petition in a timely manner

Gulbarga Electricity Supply Company Limited

hh Financial profile constrained by weak capital structure owing to accumulated losses, high receivable and payable days

Key Strengths

hh High level of employee expenses as a proportion of revenues

hh Regulatory clarity in the State, with multi-year tariff regime in place and regular tariff filings and tariff orders issuance observed

hh Tariff petition for FY 2017 has been filed with a delay of 15 days

Key Actionables

hh Improvement in cost coverage ratio during FY 2015 led by higher tariff realization per unit

hh More than 90% of power procured through long term power purchase agreements in FY 2015

Key Concerns

hh Reduction in AT&C losses through improvement in billing efficiency, collection efficiency and higher metering.

hh High level of AT&C losses owing to high distribution loss levels and moderate collection efficiency

hh To improve cost coverage by bringing down the actual costs in line with the levels allowed by KERC

hh Weak financial profile marked by net losses, high receivable and payable days

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CoverStory

Key Concerns hh No unbundling on functional lines hh Audited accounts for FY 2014 and FY 2015 not available hh High power purchase cost at ` 4.51 per unit in FY 2015 hh High employee expenses and relatively high O&M cost hh Tariff petition for FY 2017 not filed, tariff order for FY 2016 and true-up order for FY 2014 not issued

Key Actionables hh Continued maintenance of low level of AT&C losses hh Finalization of audited accounts in a timely manner hh Non-compliance of the RPO target during FY 2015

hh Timely filing of tariff petition and true up petitions and issuance of relevant regulatory ordersâ&#x20AC;˘

hh Tariff petition for FY 2017 has been filed with a delay of 15 days

hh Controlling various operating expenses to improve cost efficiencyâ&#x20AC;˘

hh Delay in submission of audited accounts for FY 2015

Tamil Nadu Generation & Distribution Corporation Limited

Key Actionables hh Reduction in AT&C losses through improvement in billing efficiency and collection efficiency hh To improve cost coverage by bringing down the actual costs in line with the levels allowed by KERC hh To recover the outstanding dues and ensure healthy collection efficiency hh To ensure timely payments to power generating companies hh To submit tariff petitions in a timely manner hh To ensure availability of audited accounts in a timely manner and make provisions for employee related benefits as per standard accounting principles.

Kerala State Electricity Board Limited

B+

The Government of Kerala has incorporated a company, namely, KSEBL with three Strategic Business Units under the company to carry out the functions of transmission, generation and distribution of the power vide a notification in the Gazette (G.O. (P) No 46/2013 dated October 31, 2013). The Government of Kerala vide its notification in the Gazette (G.O. (P) No 3/2015/PD dated January 28, 2015) has notified the assets and liabilities of KSEBL as on November 1, 2013.

Key Strengths hh Satisfactory level of AT&C losses at 14.33% in FY 2015 hh Timely payment of subsidy by the State Government hh 100% consumer metering hh Efficient service by implementation of Anti-theft measures, establishment of special courts, epayment facilities, effective collection mechanism in place resulting in collection efficiency of around 99% in FY 2015 hh Adequate supply of power in rural areas

August 2016

C+

Vide order G.O.(Ms).No.100 dated October 19, 2010 of the Tamil Nadu Electricity (Reorganization and Reforms) Transfer Scheme 2010 issued by the Government of Tamil Nadu, the erstwhile Tamil Nadu Electricity Board was reorganized into TNEB Limited, Tamil Nadu Generation and Distribution Corporation Limited (TANGEDCO) and Tamil Nadu Transmission Corporation Limited (TANTRANSCO). As a distribution licensee, TANGEDCO carries out the retail supply of power to the end users as well as maintains the wire business for supply of such power.

Key Concerns hh High financial risk profile with increasing cash losses, poor capital structure with accumulated losses of over ` 65,000 crore as on March 31, 2015 hh No tariff petition filed by TANGEDCO for FY 2015, FY 2016 & FY 2017 hh Notwithstanding the tariff revision with effect from Dec 2014 (vide suo-motu order), the Discom reported FY 2015 with losses of ` 12,000 crore; No tariff order issued for FY 2016 hh Lack of further power sector reforms as reflected in unsatisfactory progress on consumer metering besides continuance of free/subsidized power schemes hh Dependence on tariff subsidy from GoTN has increased substantially; hence, the utility is increasingly exposed to the credit risk of GoTN for its functioning hh High average cost of supply due to the large quantum of power purchased from traders and from uncompetitive IPPs; commissioning of the new plants and the resultant increase in own generating capacity/ share of central generating stations would aid in reducing the supply costs hh Deterioration in AT&C losses from 21.7% in FY 2014 to 24.4% in FY 2015

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Key Actionables hh Long Term Turnaround plan to be formulated and implemented for achieving turnaround. hh GoTN to provide necessary support to reduce high interest burden and losses hh To submit tariff petitions and true-up petitions in a timely manner. hh Timely filing of FPPCA hh To improve cost coverage by bringing down the cost of generation hh Commissioning of own generating plants without further delays critical for improvement in cost efficiency hh High AT&C loss levels. Both billing efficiency (77.98%) and collection efficiency (97%) needs improvement 100% metering â&#x20AC;&#x201C; consumer, feeder and DTR metering

Southern Power Distribution Company Of Telangana Limited

Southern Power Distribution Company of Telangana Limited (TSSPDCL), erstwhile APCPDCL (Andhra Pradesh Central Power Distribution Company Limited) is operating in the state of Telangana covering five districts and catering to over 8 million consumers. Erstwhile APCPDCL was formed on March 31, 2000. Consequent on enactment of Andhra Pradesh (AP) Reorganisation Bill, 2014, the name of the Company has been changed to Southern Power Distribution Company of Telangana Limited with effect from June 02, 2014. Presently TSSPDCL operates as a distribution licensee in the southern part of Telangana covering five districts, i e, Hyderabad, Mahaboobnagar, Nalgonda, Medak and Rangareddy.

Key Strengths hh Significant improvement in AT&C losses in FY 2015 to 11.30% due to better collection efficiency hh Healthy billing efficiency of 88.70% in FY 2015

hh Timely filing of ARR by November 30 for the next financial year hh Rationalization of power purchase cost by higher sourcing through long-term sources hh Implementation of a mechanism for automatic pass through of power cost

Northern Power Distribution Company Of Telangana Limited

B+

The Northern Power Distribution Company of Telangana Limited (TSNPDCL), erstwhile APNPDCL (Andhra Pradesh Northern Power Distribution Company Limited) was incorporated under the Companies Act, 1956 as a Public Limited Company on March 30, 2000 to carry out electricity distribution business as part of the unbundling of erstwhile APSEB. The company caters the electricity supply to Warangal, Karminagar, Khammam, Nizamabad and Adilabad districts. Consequent on enactment of Andhra Pradesh (AP) Reorganisation Bill, 2014, the name of the Company has been changed to Northern Power Distribution Company of Telangana Limited with effect from June 02, 2014.The company reaches out to a consumer base of 155.22 lakh spread across hamlets, villages, towns and cities.

Key Strengths hh AT&C losses improved to 16.04% in FY 2015 from 22.37% in FY 2014 hh Healthy improvement in collection efficiency to 96.79% in FY 2015 hh Tariff order issued as per the regulations for FY 2016 hh Timely receipt of tariff subsidy hh Implementation of key reform measures

Key Concerns hh High power purchase cost at ` 4.67 per unit in FY 2015

hh Timely receipt of tariff subsidy

hh Sourcing of power through LT sources stood low at 76% in FY 2015

hh Moderate cost coverage of 0.96x in FY 2015

hh High employee cost at 12.72% of revenue in FY 2015

hh Implementation of key reform measures

hh Low consumer metering at 80% in FY 2015

Key Concerns hh High power purchase cost of ` 4.63 per unit in FY 2015 hh Sourcing of power through LT sources stood low at 83% in FY 2015 hh Delay in filing of ARR for FY 2017 hh Automatic pass through of fuel cost mechanism not implemented hh Delay in finalization of audited accounts

Key Actionables hh Continued maintenance of reduced level of AT&C losses and healthy collection efficiency

hh Tariff petition for FY 2017 not filed hh Significant dip in cost coverage to 0.76x in FY 2015 hh Delay in finalization of audited accounts

Key Actionables hh Continuation of reduction in AT&C losses and further improvement in collection efficiency Level of consumer metering to be increased hh Timely filing of tariff petition and finalization of audited accounts hh Higher proportion of long term PPAs for meeting power purchase requirements hh Cost coverage to be improved through suitable tariff increase and rationalization of costs. â&#x2013;Ş

hh Timely finalization of audited accounts

- Shalini Singh, IEEMA

August 2016

SpecialReport

oal based power is vital for meeting the country’s energy needs. It contributes more than 60 percent of total installed capacity and 80 percent of the total generation. A significant amount of coal resources, cheap generation costs and technology maturity have been driving growth of coal based power in India. In recent years, the private sector has played a major role in capacity addition in the segment. As on 30th June, 2016, coal based capacity reached to 186212 MW with the private and state sectors accounting to share of 38 percent and 34 percent respectively. The central sector contributed remaining 28 percent. Generation of electricity is a very complex process involving many sub-processes and has multiple critical parameters. Installation of 1 MW of coal based thermal power station requires around Rs 6 to 8 crore of investment depending upon technology and features adopted. Considering the massive investment for generation and the power shortage situation in the country, it is important to give a thought to returns obtained from power stations. Once the power station is commissioned, the biggest challenge is to operate the station at a high plant load factor (PLF), which is a measure of the output of a power plant compared to the

maximum output it could produce. Higher plant load factor usually means more output and a lower cost per unit, which means an electricity generator can sell more electricity at a higher spark spread. So, the power plant performance is very important for having higher PLF. Power plant performance at various steps help in improving the power generation capacity. Major concerns for a station’s performance are thermal efficiency factors, maintenance cost, plant load factors, forced outages and plant availability factor. A decline in thermal efficiency leads to a higher cost of electricity generation due to more fuel usage and will also result in much higher carbon footprints. Therefore, it is very important to stress on the performance of power plants. India sees lowest plant load factor in 15 years; thermal power capacities operating at 62 percent PLF. The government has claimed several records in the power sector including the highest annual capacity addition ever and the best generation growth in two decades with output touching the trillion unit mark. What it hasn’t pointed out is that 2014-15 and FY 2015-16 also recorded the lowest plant load factor in over 15 years. The average plant load factor (PLF) of coal and lignite based plants has been decline consistently since last 15 years, going from over 78 percent to less than 65 percent in FY 2014-15. While coal shortage

and backing down of generators by discoms are the primary reasons for the PLF decline. The PLF of private independent power producers (IPPs) are maximum decline, going from over 85% in FY 2010-11 to about 59% in FY 2014-15. Thermal plants have run at the lowest capacity in 15 years, plagued by a combination of acute fuel scarcity and the inability of cashstarved distribution companies to buy electricity from plants using costly imported fuel. Most coalbased power plants can’t recover even their operating costs. Ironically, new plants using the fuel-saving ‘supercritical’ technology are the worst hit as their efficiency decreases at low utilization. Power companies forced to cut down their generation due to fuel shortage and distribution utilities’ reluctance to buy imported fuel-based high cost electricity. While distribution companies are forcing power cuts on consumers despite availability of electricity. It is surprising to see plants are backing out of generation in most of the month for want of demand. This clearly shows the distribution utilities is suppressing demand to avoid buying the high cost power resulting in low PLF. One of the reason for low PLF of thermal power stations is due to increased share of clean energy in some of the states. In order to fulfill the renewable purchase obligation, the distribution companies are bound to purchase

August 2016

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certain percentage of its total energy from renewable sources. Most of the power equipment failures take place due to the lack of O&M best practices. Hence, it is also important to adopt the same and ensure that plant personal strictly adhere to standard operating procedures. Moreover, there should be a focus on undertaking initiatives aimed at achieving zero forced outages and creating a centralized pool of experts resulting improved PLF.

Plant load factor Plant Load Factory (PLF) is the ratio between the actual energy generated by the plant to the maximum possible energy that can be generated with the plant working at its rated power and for a duration of an entire year. The performance of a power plant can be expressed through some common performance factors such as plant availability factor, plant load factor and plant utilization factor.

Steps for improvement of plant load factor Improvement in Coal supply In most of the power stations, fuel shortage and backing down of generators due low off take by the discoms are the primary reasons for the PLF decline during past years. The PLF’s of private independent power producers have seen the maximum decline, going from over 85 percent in 2010-11 to about 59 percent in FY 2014-15. Owing to the increases in Coal India Limited output by 7 percent in 2014-15 and by 9 percent in FY 2015-16, coal supply to power plants has slightly improved. To ensure coal supply for power plant lacking capitive coal blocks, linkage or long term power purchase agreements, the Ministry of coal has stipulated that a separate quantity must be earmarked for power sector. In order to incentives the efficiency of coal based power generation, the government has approved the mechanism for automatic transfer of coal linkages of old plants (more than 25 years old) to new super critical plants. These automatic transfers are permissible only when a new plant has been set up in the state where the old plant is located and old plant has actually been scrapped. On 10th June, 2016, the Ministry of Power has recently allowed

flexibility in utilization of domestic coal for reducing the cost of power generation. At present the share of generation from coal based power plant is about 78 percent of the total country generation. These coal based power plants are supplying coal against the plant specific Fuel Supply Agreement. In order to overcome the shortage of coal in high efficiency plants, a mechanism has been made by the MoP for allowing flexibility in utilization of domestic coal amongst the power stations to reduced the cost of generation and improved the PLF of the efficient units. In this mechanism, all the long term coal linkages of thermal power stations of specific state to be assigned to respective state or state notified agency. Similarly, all the long term coal linkages of individual central generating stations shall be assigned to the company owing the central generating stations, instead to individual thermal power station to enable efficient coal utilization amongst end use power station. The annual contracted quantity (ACQ) of the each individual coal linkages to be aggregated as consolidated ACQ for each state or the company owning the central generating stations. This mechanism shall improve the overall PLF of the thermal generating stations. A majority of the power stations burn low-priced, inferior quality coal with the limited combustion efficiency of boilers, due to unavailability of good quality coal and increasing coal prices. Cheap fuel outweighs the increase in the fuel consumption due to limited combustion efficiency and it will lead to increasing boiler losses and forced breakdowns resulting lower efficiency. So as to optimise the boiler performance, losses must be optimised. Hence, this aspect is of great importance in the Indian power scenario, as inferior and low grade coal is used for thermal

generation. Coal mines allocation of some of the private producers cancelled against the judgment of Hon’ble Supreme Court of India. The Government is required to take initiatives to facilitate the coal mine to those power stations and ensure availability of coal.

Backing down of generators by the discoms The backing down of coal based thermal power plants by discom’s due to low demand in power surplus states is also one of the reason of lower plant load factor of these power stations. According to a load generation balance report recent issued by the Central Electricity Authority, the country is expected to become ‘power surplus’ in 201617. Data too show that the all-India ‘power deficit’ has been easing. From 8.7 per cent in 2012-13, the shortfall was down to 2.1 per cent in 2015-16. This is good milestone achieved by Indian power sector. The report shows that most of the states anticipated power surplus states in FY 2016-17 which result the state distribution companies backing down the thermal power stations due to low demand in the system results lower plant load factor. The numbers show the extent to which power supply falls short of the demand by those connected to the grid. With nearly six crore rural households not having an electricity connection, the aforesaid report under-estimate the country’s real demand of electricity. Many urban households, too, have no electricity connection. Also, the supply of electricity to farmers (which is subsidised or free) is limited to few hours every day. Therefore, these limited hours of supply that should also be taken into account while calculating the actual power requirement of agricultural

The details of Plant Load Factor achieved during last fifteen years Financial Year FY 2001-02 FY 2002-03 FY 2003-04 FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09

PLF (%) 70.00 % 72.20 % 72.70 % 74.80 % 73.60 % 76.80 % 78.60 % 77.20 %

Financial Year FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13 FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 (till June)

August 2016

PLF (%) 77.50 % 75.10 % 73.30 % 69.93 % 65.50 % 64.46 % 62.12 % 63.40 %

SpecialReport

customers to arrive at the overall deficit or surplus. The deficit is only capturing the unmet demand of the people connected to the grid. However, people who are yet to be connected and those with poor supply quality are not being taken into account. In an absolute sense, by which the availability of 24x7 power supply to all, the country still have a deficit. The true picture is captured by Indiaâ&#x20AC;&#x2122;s per capita electricity consumption: at 957 kWh in 201314, it was less than one-third the world average of 3,104 kWh in 2013. The narrowing deficit does point to improving supplies and, therefore, reduced load-shedding for those with electricity connections. It will improve the PLF of thermal power stations. On the other hand, industrial slowdown and the strained finances of Discoms have curtailed demand. But for States where access to electricity is poor, the declining deficit that the Centre is harping about does not mean much. For instance, Odisha, Mizoram and Tripura, which are expected to be power surplus in 2016-17. But as of May 2016, the percentage of unelectrified rural households varied 22 to 52 per cent, with Odisha at the top end. With these States being largely rural, poor electricity access for rural households implies poor access for households. Since the potential electricity demand of these people does not get registered on the system, the deficit number is artificially low. As many as 87 per cent of rural households in Bihar, 70 per cent in UP and 63 per cent in Jharkhand have no electricity connection. In view of the above, the government should accelerate the work of rural electrification and ensure 24x7 supply to all as mandated in electricity tariff policy, 2016. The government is also required to encourage industrialization and discoms are required to supply power with positive mindset it will reduce the backing down of generating units and improved the plant load factor of the power stations.

O&M best practices Adoption of Operation and Maintenance best practices ensure efficiency in coal based thermal power projects and improve plant load factor to meet the countryâ&#x20AC;&#x2122;s growing energy requirements. With

August 2016

time, the complexity of power plant operations has been increasing continuously. Plants face difficulties like rigorous demands from load dispatch centers, frequent outages, prolonged periods of low load operations, improper rates, and operations beyond design limits. These issues arises due to increasing penetration of highly intermittent renewable sources of energy results lower PLF of the thermal power projects. The plant operators must have a focused O&M strategy and should also target critical areas in order to maximize performance. Some of the best practices that should be adopted by coal based thermal power plants are as follows: a. Occurrence analysis need to be carried out in thermal power projects to achieve operational excellence and zero forced outages. The inferences from this analysis are divided into three categories like changes required in O&M practices, changes required in design and corrective action and preventive action pertaining to design and engineering, erection and commissioning, O&M condition assessment and competency building. b. Review meetings can take place regularly with the objectives to review the operational performance of the generating units, identify major constraints and O&M problems, conduct a review of forced outages, partial loading details, measures for O&M cost reduction and optimization, quality overall preparedness and status of renovation and modernization as well as compile the statutory requirements along with safety practices. The review meetings should also be focused on issues pertaining to loss in plant load factors, loss in availability and partial loading, fuel linkage issues, ash utilization, environmental management, auxiliary power and the parameters recording best performance. c. Advance Outage Management system involves outage planning, scheduling, ordering spares and services. Such practices can assist them in the preparation

of an outage readiness index, which is aimed at bringing about consistency in planning outages. The methods identifies and defines the scope of work needed prior to the commencement of an outage and quantifies the amount of preparedness required to implement it in the most cost effective manner. d. Various types of maintenance practices can be deployed for optimizing the operations at thermal power stations. These include reactive or breakdown maintenance, preventive maintenance, condition based maintenance, predictive maintenance etc. e. Each component and system of a power plant has a certain level of efficiency. Regular technical audits can help in operating each of these components/ equipments/systems at their maximum efficiency results higher PLF. f. Increases in unit size, and steam pressure and temperatures necessitate the focus on chemical control. There is a need to apply superior grades of metallurgy to minimise or eliminate corrosion, deposits, cracks and equipments failure. Steps in this direction will help utilities increase cycle efficiency, enhance reliability, reduce forced outages, increase plant load factor and enhance the focus on the life cycle cost.

Renovation and Modernisation of old units The Renovation and Modernisation (R&M) of coal based thermal power plants is of significant importance as it improves generation availability as well as safety and reliability. The all India plant load factor of coal based thermal power projects has decreased from peak of 78.60 percent in FY 2007-08 to 62.12 percent in FY 2015-16 due to various reasons. The R&M of thermal generating units plats a vital role in resolving some of these issues and equipping the operating units with the latest technology to improve their performance in terms of output, reliability and availability, reduce maintenance requirements and minimise maintenance inefficiencies.

SpecialReport

The R&M of old thermal generating units is an economical option to supplement the capacity addition programme as it increase power availability and efficiency resulting increase plant load factor of the generating unit. It also helps extend the useful economic life of generating units by 15 to 25 years. R&M focus on full load operation of the units beyond its original design life, up grating of generating units and improvement beyond the design parameters. The availability of coal is the most important factor that derives the R&M of plants. Since it is an exhaustible resource, saving of coal through efficiency enhancement of plants is desirable. R&M results in reduced coal consumption and additional power generation. A typical R&M programme can increase the PLF by 5 to 8 percent and extend the plant life by 15 to 20 years. With increased emphases on the environment for clean technology, there is a shift from generation maximization to generation optimization, which necessitates efficiency enhancement through R&M. As per National Electricity Policy, thermal power projects that are performing below acceptable standards should undergo R&M as per well defined plans featuring a necessary cost benefit analysis. R&M and life extension works are carried out by the concern central and state power utilities, depanding on the requirements of power plants. The Government has also taken various steps on this regard such as monitoring of R&M and life extension works by the CEA, providing technical inputs through the CEA and NTPC to concerned power utilities, making funds available in the form of loan through PFC & REC and extending external cooperation for assistance in terms of technology and finance. Utilities need to prepare an R&M roadmap so as to reflect management commitment to the implementation of the project through a fair and transparent process. Regulators in each state need to design incentive and enforcement mechanism that encourage utilities to undertake R&M of their inefficient and old plants. In order to develop market, it is important to encourage competition by awarding R&M projects through fair, transparent and completive mechanism. Apart from this, public-

private partnership models for R&M should be promoted. The adaption of such measures in the R&M process will ensure higher efficiency levels and better PLF in thermal power projects. Regulators in each state need to design incentive and enforcement mechanism that encourage utilities to undertake R&M of their inefficient and old power plants.

Energy Efficiency best practices Thermal power stations are contributing the major part of country’s installed capacity. Consequently, thermal power plants are also a major contributor to green house gas emissions come from these power plants. Although the dependency fossil fuels to meet energy needs will continue for years to come, steps need to be taken to control emissions and ensure energy efficiency in the power generation segment result the better PLF of the power stations. One option is to improve the existing energy infrastructure by adopting practices that help increase the thermal efficiency of coal fired thermal power stations, in order to achieve desirable operational performance and reduce emissions. Higher plant load factor and plant availability also translate into optimum heat rate. Further, even best run units have potential for heat rate and energy efficiency improvement. Therefore, it is essential to implement operation and maintenance best practices for improving a plant’s energy efficiency and PLF. These best practices entail following well established operating procedures, reducing the operating period of the unit at low loads or beyond the design limit, cycling the unit as per the recommendations of the manufactures, and operating controllable parameters as per the original manufacturer guidelines. In old plants, greater efforts are needed to bring back units to their rated capacity. Also phasing out of inefficient units to keep pace with the latest technologies is the need of the hour. Generators are required to dedicated to evolving improvement and sustaining energy conservation through improving plant utilisation, benchmarking specific energy consumption with the best norms, monitoring energy consumption to identify areas for improvements,

improving utilization of auxiliaries for optimization of energy consumption, promoting energy awareness and encouraging employee participation for energy conservation. To achieve the energy efficiency targets, which are becoming increasingly more stringent greater vigilance and improvements in the overall culture need to be ensured in the thermal power stations. Practices such as the wide adoption of technologies deployed in the best performing plants, challenging the best performing plants to seek additional efficiency and PLF improvement and retiring poor performing plants where improvements are not technically or economically feasible need to be followed for ensuring better performance of the power plants. Efficient operation of the thermal unit is also very critical due to cost and reliability factors. The cost implication due to an increase in the heat rate, oil consumption, makeup water consumption, excess air, condensed back pressure, etc, indicate the urgent need to control these parameters within the designed ratings. All these checks and controls will lead to improved availability due to better steam conditions and heat transfer conditions. It has been observed that there were substantial deviations (up to 20-25 per cent) between the designed and operating parameters such as boiler efficiency, turbine heat rate, gross heat rate, coal consumption, etc.

Conclusion In view of the above, it is that the government has taken several initiatives to improve the plant load factor of thermal power stations. The government should also need to ensure good quality coal supplied to thermal power stations. The initiatives required to facilitate the coal mine to those power stations whose coal block allocation cancelled by Hon’ble Supreme Court of India and ensure availability of coal. Encourage industrialization and speed-up the work of rural electrification to increase demand in the system. ▪ Ashok Upadhyay

BE (Electrical), M Tech. (Ind. Engg.) M. Phil (Renewable Energy)Dy. Director (Generation) M.P. Electricity Regulatory Commission Bhopal (M.P.)

August 2016

GuestArticle

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Penny Wise, Pound Foolish” is a very old proverb used to generally describe a person or a situation wherein one is stingy about small expenditures and extravagant with large ones. The theme is used to illustrate the importance of looking beyond the capital cost and use life cycle costing as a framework for maximizing value for money! Most of the business decisions, especially those related to purchase decisions revolve around two main questions, “To buy or not to buy” and “which is the best buy”. These two questions can be further broken down to a series of questions related to what to buy?, when to buy?, from whom to buy?, what should be the target cost? etc. Essentially every buyer, be it a house wife buying her monthly domestic requirements or a purchase manager buying a custom built product look for “value for money” in their spends. The process of decision making and arriving at the right decision is both an art and a science and it could be a simple task requiring a few seconds of thought processes or could be a very complex processes requiring enormous amounts of data, deep analytical skills and application engineering knowledge, spanning few months to arrive at the right decision. The paper attempts to illustrate a few basic tools & techniques that can be used to make a better purchase decision in a more scientific manner.

Introduction The concept of “Value for Money” in its simplistic form can be converted into a more industrial language and aims at answering the fundamental questions

Where to invest the money: to compare, evaluate and choose amongst the competing customer / user requirements with a limited funds to spend. (Decision to choose the broad area for spend)

Where to source the product/service from? Having chosen the area to spend, to compare, evaluate and choose among competing products /technologies. (Decision to choose the supplier)

The basic tools se for these are

Benefit-Cost analysis

Pay back / ROI calculation

Life cycle costing.

While the first two tools are generally used for identifying the best investment area, can also be used for comparing competing products / services and the last tool is best used for comparing and evaluating competing products / suppliers.

Benefit-Cost Analysis This is a very simple technique used to compare amongst competing needs to identify the best investment. The technique can also be used for comparing competing products / technologies using marginal cost –marginal benefit method. The area / the product that offers the highest benefit to cost ratio (BCR) is the obvious choice. In any case it is expected that the ratio is more than 1 and higher the ratio better the investment. While using the tool it should be ensured that all benefits (tangible & tangible) and costs (direct & indirect, quantifiable & non-quantifiable) are captured to facilitate a correct decision.

August 2016

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One variation of the technique could use two separate ratios for tangible & intangible benefits and corresponding factors on cost. The tool can be used also to compare competing products using marginal/incremental cost to marginal benefit ratios.

Pay Back Calculation This is similar to ROI calculation and aims at computing the period over which the investment would pay for itself and then start making profits. Here again the benefit and costs are quantified in monetary terms and additional parameters such as cost of finance, interest, depreciation etc. are used to arrive at the payback period. This technique also requires that all benefits & cost be captured and quantified.

Life Cycle Costing (LCC) The fundamental of life cycle costing is to identify and quantify the various cost elements in purchasing and using a particular product or service and estimating the annualized life cycle cost. Here again the trick les in identifying and quantifying the various cost elements correctly and estimating the added dimension of estimated /probable useful life. It is preferable that life cycle costing is used in purchase of industrial goods, as the total cost of ownership could be much higher than the capital cost and thus decisions based on Total cost of ownership (TOC) of life cycle costing (LOC) more robust as compared to decisions made on just comparing capital cost. It is evident that based on the product, the purchase cost could be as low as 1% of the life cycle cost!. It is also evident from the case of motors, high efficiency motor, though more in purchase cost, has a lower life cycle cost!! It is also clear those products though more expensive considering capital (purchase) cost, offer a lower annualized life cycle cost if they have a longer life / higher reliability.

Elements of Cost As illustrated above all the techniques require that the cost elements are captured and quantified. The various elements of the cost are Pre-Purchase cost Purchase cost Installation cost Operating cost Maintenance cost Disposal cost Apart from these cost elements we also need to estimate the most probable life to compute the annualized life cycle cost. The various elements are illustrated in this section. hh hh hh hh hh hh

Pre-Purchase cost This involves the cost incurred from the time of decision to but to the actual purchase decision. This involves the cost associated with evaluating the need, understanding requirements, drafting specifications, tendering, evaluating vendors, releasing order etc. The cost is negligible for standard items and can be a very significant part for customized industrial products. In some cases this could involve consultant’s fees for specifying products and evaluating suppliers. Due credit should be given to suppliers who do a part of understanding the requirements, help select the appropriate product, do application engineering and offer a value added package.

Purchase cost Is the actual landed cost and is the most clearly visible part of the total cost. This included the basic price, taxes and duties, freight & insurance etc. It would be gross mistake if only this cost is considered for evaluating the competing vendors / products/

As a simple illustration, the table below illustrates the concept:

Laptop 1 (Lo Q)

Car

Life (Years)

Laptop 2 (Hi Q)

10 HP motor (90%)

10 HP hieff motor (94%), Life 1

10 HP hieff motor (94%), Life 2

5000

500

750000

40000

48000

18000

24000

25000

1000

5850000

5760

8640

2800000

2680851

3829787

200000

7500

Disposal cost

-200000

5000

Total cost

6605000

45760

56640

2832000

2718851

3868787

660500

11440

9440

202286

194204

193439

Pre-Purchase cost Purchase cost Installation cost Operating cost Maintenance cost

% purchase / total cost Annualized life cycle cost

August 2016

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technologies as this could represent only a small fraction of the total cost.

Installation cost Is the cost that is required to install the product as to enable it function properly. This cost includes cost of civil work, structural work, cabling, ducting, auxiliaries, labour for erection etc. Obviously that product that offers a complete solution is easy to handle, transport, store & install gets a higher score (or a lower installation cost in absolute terms). In some cases the physical space required for installation (compactness) can be a major cost factor where space is at a premium. Installation cost is generally lower for products that are compact (smaller volume or smaller foot print), easy to install, does not require special installation procedures etc.

Operating cost This is the second most important cost element after purchase cost. This includes the money that has to be spent over the entire life for the proper operation / functioning of the equipment. This typically includes consumption of resources such as energy/power, water, air, oil etc. This could also include the training cost, cost of skilled personnel for operation etc. This is an important consideration for power equipment such as motors, transformers, active harmonic filters, inverters etc. Typically for a motor this fraction of the cost represents about 90% to 97% of the total life cycle cost as against only 1% to 10% of the cost fraction assignable to the purchase cost.

Maintenance cost This is the third most important factor and this includes the cost of maintenance including consumption of material, labor, training cost for maintenance team etc. Obviously products that are maintenance free have a higher score and contribute to a lower absolute value in the life cycle costing. The cost also could include factors such as MTBF, MTTR, reliability & average life of the equipment. Cost and availability of spares is an important consideration in estimating the maintenance cost. Equipment’s with standard parts and modular designs have a lower maintenance sot in general.

Disposal cost This is the cost that needs to be incurred in disposing off the product at the end of useful life. This cost factor could have a positive or a negative sign. Where one needs to pay to get the products disposed off, the cost has a positive sign and if the product could be sold off (either as scrap or seconds) then the cost has a negative sign. The cost of disposal should consider the product life cycle, eco-friendliness, and environmental aspects in assigning a cost to this fraction. Products that contain materials that are banned / expected to be banned/that are not easily bio-degradable should be assigned a higher cost of disposal.

Total life cycle cost The life cycle cost is a summation of all cost elements and indicates the total cost that would have to be incurred in purchasing, using and disposing the product. This indicates the total cost of ownership.

Annualized life cycle cost While life cycle cost is a critical factor in arriving at purchase decisions, what is better is to use “annualized life cycle cost” as this includes the reliability / life aspect of the product apart from all cost elements. It is possible that two products could have the same life cycle cost, but one has a longer (useful) life (higher reliability) and thus this product would offer a lower annualized life cycle cost. It is possible to estimate the probable life of given equipment within a certain confidence interval under a given set of operating conditions using analytical techniques. This requires a thorough understanding of the failure modes and ageing mechanisms, knowledge of operating stress and system conditions, proficiency in stochastic and life estimation techniques etc. Also this is a rigorous technique fraught with dangers of wrong estimation and excludes sudden failures and abnormal conditions. In most cases his rigorous technique can be substitutes by a more simplistic and empirical technique without much loss of accuracy. The empirical technique is based on the correction factor applied to average life. The average life is based on historical data covering all products (of similar nature & function) from large number of suppliers spanning a sufficiently large time scale to preclude distortion due to random events. The correction factor is based on a set of quality estimates with a suitable weighting factor. The weighting factor depends upon the product under consideration and the set of quality estimates is also a variable depending upon the product under consideration. Some of the qualitative elements that can be used for the estimation of most probable life include aspects such as: Product certification: Product certification is one of the aspects that could be used to estimate life / reliability. While type testing is one of the parameters under certification, the consideration should go beyond mere type testing and include other product certifications. Product approval: If the product has been approved by a large number of customers then this can be taken as an indication of a longer probable life. Apart from number of approvals quality of approvals (from more discerning customers) can be given a higher weightage, especially if the approval process includes product / process audits, special testing and validation, establishment of clear / transparent quality systems etc. Process certification: While ISO 9001 is a basic necessity, other certifications such as ISO 14000, OHSAS 18000, IRIS, ISO / TS 16949 etc. indicate presence of robust quality management systems and are indicators of higher reliability / life. Field performance of the product: Is one of the most important parameters in estimating the probable life. Apart from the length of field experience parameters such as failure rates, MTBF, reliability etc. are to be considered in arriving at a factor based on field performance. Importance has also to be given for the population of the product in field and the length of experience (product years). Another important aspect is the field performance

August 2016

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under various operating conditions and survival rates under harsh environments. Quality Management Systems: Presence of a strong quality management system (control on technology, design, materials, manufacturing process, testing & validation) is an indicator of a better quality / higher reliability. Test facility & test procedures: Availability of in-house test facilities, internal test protocols, use of special and proprietary tests, accelerated life tests etc. are parameters indicative of a longer life. Manufacturing facility: The availability of a dedicated and modern manufacturing facility and sound manufacturing practices gets a higher score in estimating the probable life. Customer / user profile: The profile of the existing customers, their quality systems, product approval procedures, buying behavior etc. can be used as an indicator of product performance and extrapolated probable life. Years of experience of the supplier: Is an important parameter and the experience with not just the product under consideration but associated and relevant experience needs to be considered. Generally longer the experience more is the confidence of a longer life. In some cases mere length of existence of business may be misleading and needs to be supplemented with other aspects such as revival of business processes, renewal of product, process and manufacturing facility etc.

August 2016

Quality initiatives: Such as six sigma indicate a positive trend in product performance & quality important and increases the confidence level for a given life span or increases he probable life span. Reputation of supplier: Is to establish the past performance of the product as well as the manufacturer. Brand equity is one of the parameters that can be considered in this category. Basic technology: The soundness, appropriateness and sustainability of the fundamental technology are good indicators of the probable life. Apart from probable life this can also be used to estimate the useful life, wherein the actual life could be curtailed due to nontechnical reasons (such as ban on the use of a particular technology/ material, disposal constraints, maintainability and availability of spares in future)

Conclusion It is clearly established that any purchase decision, especially concerning industrial purchases can be made more scientific to obtain maximum benefit. A decision making framework based on life cycle cost / annualized life cycle cost / total cost of ownership is more robust and facilitates correct purchase decisions as against decisions based on simplistic consideration of just the capital / purchase cost. Apart from cost elements, use of qualitative and quantitative aspects related to reliability / life / field performance enhances the quality of decision and enables maximizing â&#x20AC;&#x153;value for moneyâ&#x20AC;? â&#x2013;Ş Dr. Venkatesh Raghavan

President, Power Quality Solutions, EPCOS India Pvt. Ltd.

ExpertSpeak

ndia has achieved capability and capacity to Manufacture Electricity Generation equipment for Thermal, Hydro and Nuclear Power Plants. The main equipment suppliers viz. BHEL, Larsen & Tubro, Doosan, Alstom, Toshiba with Indigenous manufacturing are capable of supplying SG and TG for Supercritical Thermal power plants up to 1000 MW Unit rating. NPCIL has developed 700 MW Nuclear Power plant. Steam Generators for such Nuclear plants are being supplied by BHEL and L&T, While Turbine and Generators are Contracted with BHEL and Alstom. The Balance of Plant Manufacturerâ&#x20AC;&#x2122;s have also created enough capacities to meet domestic demand. The overall capacity to manufacture and supply around 30000 MW equipmentâ&#x20AC;&#x2122;s for Generation of electricity has been established in India by BHEL and others.

Current Power Generation Scenario The Installed capacity of Generation of Electricity have touched 303118 MW including 42849 MW by renewable sources like Wind, Solar, biomass, small hydro etc as on 30.06.2016. The Govt. is going full steam ahead for increasing the renewable capacity to 175 GW up to 2022.

Suresh Chandra Mittal Served in BHEL for 38 years in Marketing and Finance, Superannuated as Executive Director Finance-Receivables Management. Represented IEEMA as Chairman Generation Group from 2011 to 2014.Presently Independent Consultant. Delivers talks on Power Sector and Management as guest faculty in Management Institutes.

During last 5 years the CAGR of Installed capacity vis a vis electricity generation and peak load has been as under: Installed Generation Peak Capacity in BU load in MW CAGR 10% 6.1% 6.3%

The generation from renewable sources was 65.78 BU during 201516. The renewables contribution to

total generation is 5.6% with 14.1 % share in total Installed capacity due to inherent nature of dependence of weather conditions. The coal based units are contributing 80.45% of total generation. The PLF of thermal generating units have reduced from 73.3% in 2011-12 to 62.29% in 2015-16 indicating that utilisation of existing capacity is declining year by year due to larger Capacity addition vis a vis rate of growth in demand of electricity . The daily report on generation of electricity available on website of CEA indicates that many plants are backing down due to low schedule. 9.94% of total electricity generated was transacted through short term comprising bilateral, day ahead collective transaction on power exchanges (IEX and PXIL) and DSM as per latest Monthly Report on Short term transaction of Electricity in India for the Month of May 2016 by CERC . The per capita consumption of electricity in India is little more than 1000 units considering Captive power generation also, while the world average is around 3000 units. The load generation balance report of CEA for the year 2016-17 have projected, Anticipated All India Energy requirement of 1214.642 BU and availability of 1227.895 BU meaning that there will be energy surplus of 1.1%. The peak demand

August 2016

ExpertSpeak

The growth in Installed capacity, Electricity Generation and Peak load on All India basis during last 5 years is as under: Installed Capacity in MW Generation in BU including Shortage of Peak load at the end of the year renewable sources Energy in BU in MW

Shortage in Peaking

2011-12

199877

922.451

8.5%

116191

10.6%

2012-13

223344

964.489

8.7%

123294

9.0%

2013-14

245259

1021.167

4.2%

129815

4.5%

2014-15

271722

1105.446

3.6%

141160

4.7%

2015-16

298059

1173.165

1.5%

148463

2.1%

have been projected as 165253 MW against availability of 169503 MW i.e. peak surplus of 2.6% considering 16654.5 MW of capacity addition during 2016 -17. All the above analysis clearly indicates that Power Sector Scenario which was projected during beginning of 12th plan has changed and Generation equipment industry which made huge investment considering large capacity addition during 13th plan and beyond is facing tough time to sustain itself. The projections made in 18th Electric power survey for electricity demand have not become realistic.

Further Road Map The Govt. is already working on following to enable development of healthy electricity sector which will generate more demand in the system: hh Providing 24x7 power to all by

the year 2017.

hh Integrated power development

scheme to facilitate state utilities to ensure quality and reliable power supply in urban areas hh Ujwal Discom Assurance Yojana (UDAY) India has been continuously working on Electricity Reforms and now we have established Regulated Electricity Market supported by legal framework of Electricity Act 2003 and its various amendments. Tariff policy have also been modified for promotion of renewable energy. The overall objective of all these Year 2020-21 2025-26 2030-31

Electricity Requirement in BU 1570 2100 2800

efforts and Investments are towards ensuring availability of electricity to consumers at reasonable and competitive rates as well as ensure financial viability of the sector and attract new investments. For attracting new investment in time it is essential that existing investment in the sector is generating revenue to fund risk capital for the future. A typical thermal power plant is designed for 25 to 30 years of operation and financial modelling for investment is accordingly made. It is pertinent to note here that while lot of time and energy of various Government and Financial Institutions is spent on planning of new Investments, we need to focus on utilisation of existing assets efficiently enabling creation of healthy Financial System of India rather depending of continuous infusion of Public Money by Govt. into Financial institutions to make them healthy. India being emerging economy, it is fairly estimated for planning purpose that its GDP will continue to grow from 7% to 8% supported by data from various domestic and International Institutions. Considering the present position of Installed Capacity in India, the future requirement of growth at CAGR of 6% in Electricity Generation and corresponding increase in Peaking load and Installed capacity on broader basis, while maintaining a healthy Electrical system, the future projections looks as under:

Expected Peaking load in MW 199000 265800 355800

Installed capacity in MW 399000 533778 714000

The energy mix for electricity generation would change progressively as capacity factor for renewables is around 30% at International Level. The integration of renewables with conventional systems is progressing and may take more time. Simultaneously work is going on for working out ramping up capacity when solar is down in the evening hours. Fossil fuels will continue to play major role till 2030 in Indian Electrical system. Considering various scenarios of Capacity addition by renewables till 2030 it is essential that country need to enhance its conventional energy generation installed capacity by 150000 MW to 200000 MW over and above existing capacity. Since power plants take 3 to 4 years for installation after ordering, the country needs to order 15000 MW to 20000 MW conventional power plants on yearly basis besides replacement of old inefficient plants for at least up to 2025 in order to keep up the 24X7 power for all. This will also enhance per capita consumption to about 1800 from present level of 1000 units at population growth of 1.2% annually. Electricity equipment Manufacturing Industry is Strategic in Nature for development of Country in long run, it is essential that National planning Authorities work on the perspective plan for next 20 years for keeping engaged the Industry in utilisation of Assets where investment has already been sunk and creation of new Assets for the overall development of the country in steady manner. (The views expressed are in personal capacity based on the experience of serving in the sector for 38 years and data sourced from various reports of MOP, CEA, NLDC etc.) â&#x2013;Ş

August 2016

Opinion

istorically, financial business cases alongside governmental regulations have provided the basis for developing product efficiency improvements. Payback for higher first-time investment to achieve improved steam parameters had to be harvested in the form of lower fuel consumption over a certain timeframe. Largescale units have better economic efficiency.Implementing improved technology with the potential of lowering operating expenditures (OPEX) yielded greater benefits in large-scale units. Following this logic, development efforts were aimed at the highest ultra-supercritical (USC) steam parameters for large, state-of-the-art power plants in the 660- to 1000-MW range. Smaller units in the 350 MWclass followed the trend of optimized capital expenditure (CAPEX), which resulted in many projects in this output class remaining at subcritical steam conditions, with temperatures not exceeding 566Â°C.

Power generation

The more stringent financing rules introduced by the OECD in November 2015 implied that steam power plants in the 300- to 500MW range need to be supercritical or ultra-supercritical units in order to receive attractive financing. A similar trend can be expected in India, where a huge aging fleet of inefficient coal-fired power plants with outputs below 250 MW stands to be replaced. Mature 250-MW plants with an assumed net efficiency level of 30% could be transformed into state-of-the-art units with net efficiencies of about 40%, while retaining unaltered their permits for water and coal supply. Such new plants would thereby deliver an output of 330 MW.

Increase net efficiency from 30% to 40% Power generation has typically consisted of units operated at steady-state condition with low load change rates. The currently ongoing

worldwide expansion of electricity production from renewable energy sources requires a wholly different operating regime for fossil fuel power plants, which are now called on to generate the residual load in the grid. The know-how gained from the highly flexible water-steam cycle of combined-cycle power plants has enabled engineers to adapt steam power plants to meet these challenging requirements. Siemens together with its licensees in China, India and Japan is the global technology leader for steam turbine-generator sets, with the largest installed fleet of any company worldwide. Bundling the flexibility and performance requirements, Siemens has developed a new package for the 350-MW class with the renowned reliability of Siemens steam turbine-generator sets, see figure 1. Current steam turbine-generator sets consisting of individual highpressure (HP) and intermediate-

August 2016

Opinion

pressure (IP) turbine modules capable of operating at USC parameters have delivered excellent, proven operating experience. These reference steam turbine designs in terms of high performance parameters and high operational flexibility were used to extend the available subcritical combined high- and intermediate-pressure (HI) steam turbine to supercritical parameters. The major challenge has always been to prevent the steam leakage across the horizontal joint to the maximum extent. Based on the extensive experience and validation of this HI turbine design and using state-of-the-art design analysis methodologies such as the finite element method (FEM) and computational fluid dynamics (CFD), the inner casing wall thickness has been increased locally to enable supercritical inlet pressure. As a result, the upgraded turbine module is now applicable at supercritical pressure in a power output range of 250 to 500 MW, delivering turbine inner efficiencies as high as those designs with separate HP and IP turbine modules. All of the proven, most effective flexibility features can be applied in the supercritical turbine, such as fast startup mode, early steam admission and the various measures for frequency support. With only one “hot” turbine casing, the turbine building can be much

Power generation

Figure 1: Siemens SST-PAC5000

more compact in design. The reduced number of bearings also reduces foundation costs. Like all Siemens utility-grade steam turbines, the new supercritical HI module is also adapted to the inspection intervals of 50,000 hours for minor inspections and 100,000 hours for major inspections. That means that the turbine casing does not need to be re-opened until after approximately 12 years of operation. Siemens is a world leader in electrical generator technology and manufacturing with long standing tradition and experience with a vast installed fleet. Based on the proven experience, a new innovative air cooled generator with water cooled stator has been introduced within the package. Delivering the quality, safety and value within

Siemens products results in a direct competitive advantage for our customers. Siemens’ modified SST-PAC5000 steam turbine-generator set for 350MW applications comprises features from various Siemens product lines. From large coal-fired steam power plants comes the proven technology for the best possible efficiency and some flexibility features, while steam turbine-generator sets for combinedcycle power plants provide further proven solutions for achieving the highest possible flexibility. For, after all, Siemens’ outstanding quality stands for highest reliability.

For plants in the 350-MW power output range, Siemens decided in favor of a two-casing steam turbine design consisting of a combined HP/IP steam turbine section and a low-pressure (LP) turbine section. Siemens’ proven generator technologies have enabled Siemens to build a reliable electrical generator in that output range without need for hydrogen cooling, thereby benefiting the customer in terms of safety and total cost of ownership. Furthermore, the planning and erection effort for this component solution is minimized compared to conventional three-casing steam turbines with a hydrogen-cooled generator. ▪ Thomas Achter

Siemens AG, Germany

August 2016

Opinion

Power generation

Power sector is one of the prime growth engines of the economy. Drawing relationship between energy consumption and economic growth has been the prime focus of economists and policy analysts since 1970’s (Gosh, 2002). Since the economic activities in India are gaining momentum, electricity demand is expected to grow at more than 7 to 8 percent annually over the next few decades as compared to only 1% in developed countries. Government of India has aggressive plans to enhance the Indian Power Sector so as to meet the continuously growing demand. It is committed to provide affordable, 24x7 power to all households by 2019, an overly ambitious goal considering the appalling state of power supplies all over India, except in a few cities such as Mumbai and New Delhi (Planning Commission, 2014). The demand for electricity is continuously growing as almost all sectors of the economy rely on electricity. Out of many solutions available, two major technologies will play important roles to meet the growing demand. One such solution is Renewable Energy sources, and another solution is Smart Grids. Smart Grid is defined as use of highly efficient power electronics in power generation, power transmission/ distribution and end-user application.

August 2016

It is a network that uses Information and Communication Technology (ICT) to gather information and act intelligently in automated fashion to improve the efficiency, reliability economics and sustainability of Generation, Transmission and Distribution of electricity. Figure 1 shows the difference between present and future vision of electricity system.

energy storage system. It has more energy storage capabilities and absorb excess wind and solar power when it is not required. Subsequently, it releases the stored energy when the wind and solar power generation dips. As an overall effect, energy storage will help to smooth out the variability in wind and solar resources, making them easier to use.

Benefits and Challenges of Integrating Renewable Energy Sources with Smart Grid:

Power generation from renewable sources will need to increase significantly to achieve the Sustainable Energy to achieve the objective of doubling the share of renewable energy (RE) in the global energy mix by 2030. Fortunately, there is growing evidence in many countries that high levels of renewable energy penetration in the grid are technically and economically feasible, particularly solar and wind technologies increasingly reach grid parity in economic terms.

Historically, integration of smallscale renewable energy sources into a traditional gridhas been challenging and has triggered various problems in the system. These include voltage fluctuations and harmonic distortions, which require synchronization of the sources with the grid. However Smart Grid, optimizes these problems, while integrating renewable energy sources in to the existing grid by preventing outages and allowing consumers to manage energy usage. Further, this technology enables various options to add energy to the grid at transmission and distribution levels through distributed generation and storage. In other words, the Smart Grid allows better utilization of renewable energy resources together with

However, continuous and expanded growth of the share of renewables in centralized and decentralized grids requires an effective new approach to grid management, making complete utilisation of “Smart Grids” and “Smart Grid Technologies”. Existing grid systems already incorporate elements of smart functionality, but this is mostly used to balance supply and demand. Smart grids incorporate ICT into every aspect of

Opinion

Power generation

Figure 1: Visions of electricity system: Present and future flows

electricity generation, delivery and consumption in order to minimize environmental impact, enhance markets, improve reliability and service, and reduce costs and improve efficiency. The projections made by the government suggest that by 2030, India would have a total built up power generation capacity of 850 GW by renewable energy sources. This ambitious target will aid India in offering to the global community a 35 % reduction in the Green House Gas (GHG) emission intensity of its economy, below 2005 levels by 2030 as part of its Intended Nationally Determined Contributions (INDCs) under the Paris Agreement. At present, India has committed to 2025 % reduction below 2005 levels by 2020. The governmentâ&#x20AC;&#x2122;s preliminary assessments suggest India is on way to achieve the lower end of the existing target comfortably and could attain more with some extra effort in the remaining years. These smart technologies can be implemented at every level, i.e. from generation technologies to consumer appliances. As a result, Smart Grids can play a crucial role in the transition of present energy to a sustainable energy in future in several ways such as by: hh

hh hh

facilitating smooth integration of high shares of variable renewables supporting decentralized production of power creating new business models through enhanced information flows consumer engagement and improved system control

providing flexibility on the demand side Smart grid technology is the key for an efficient use of distributed energy resources. The climate change is continuously becoming a central issue The ever increasing price of petroleum products and the rapid reduction in cost of renewable energy power systems have provided an opportunity for renewable energy systems to address increasing electricity demand . However, to commercialize renewable energy sources and popularize its widespread use, an efficient energy management strategy for the system needs to be addressed. Recently, the concept of Smart Grid has been successfully applied to the electric power systems. A review of work done in Renewable Smart Grid Systems in recent years indicates the promising potential for such research. This would be useful to decision makers, policy makers and practitioners of renewable energy systems hh

The benefits of Smart Grid Renewable Energy System are summarized as follows: Enabling utilization of cost effective renewable energy resources and accommodate its higher penetration while improving power quality and reliability. Integrating consumers as active players in the electricity system; savings of electricity achieved by reducing peaks in demand (flattening the load curve) and improving energy efficiency, as well as cutting GHG emissions.

of operations based on marginal production costs. Barriers to Smart Grid technology adoption are justifying the value preposition by the service provider and the customer, followed by regulatory constraints and technology standard that obstruct the Smart Grid technologies.

Conclusion The power system operators and planners face the challenge of integrating renewable energy sources into power system grids. Renewable energy system is an innovative option for electricity generation, especially the solar PV system as it is a clean energy resource. Recognizing the advantages of PV system, many such systems have been installed worldwide in recent years. To achieve the commercialization and widespread utilization, a number of issues need to be addressed related to the design and sizing of the system, suitable and effective model that includes technical and financial aspects of PV Smart Grid to supply electricity, and balance electricity price for integrating PV in a smart grid system. Earlier studies showed that balance electricity price for integrating PV in a Smart Grid system are limited. Therefore, there is a need to develop a PV Smart Grid system model that incorporates technical and financial aspects. This would be useful to evaluate the balance electricity price for integrating PV in a Smart Grid system. â&#x2013;Ş

Voltage regulation and load following enable reduction in cost

- Vivek Arora

IEEMA

August 2016

InFocus

apital cost of power stations is the driving factor on which all other elements of tariff are worked out. For the purpose of tariff, regulatory checks on admissible asset value/cost are of prime importance. Cost as per books are not necessarily the input costs for regulatory purpose. They are relied upon regulatory process which is one of the tools for prudence. In view of the anticipated growth in demand and the existing challenges in the power sector, a balanced approach is required to be adopted for determination of capital cost in the larger interest of the sector. Further, a focus is needed to improve the operational efficiency so that benefit on account of efficiency gains should be shared with the beneficiaries and the consumers at large. In a cost based regulations, capital cost of the project is perhaps the most important parameter. The capital cost on the completion of the project is the starting point for deciding the return on the investment made by the investors. The capital cost of the project used to be based on gross book value. The changes in the capital cost by the way of capitalization also being accounted for and tariff being adjusted retrospectively. There is no set process for determination/prudency of capital cost of the thermal power projects. State electricity regulatory Commissionâ&#x20AC;&#x2122;s are following their own approach and methodology for the determination/ prudency of capital cost and its consideration in tariff. Benchmark capital cost notified by the Central Electricity Regulatory Commission for only hard cost of units. Financing cost, interest during construction, taxes and duties, right of way charges, cost of R&R etc. are project specific and would be additional and are not factored in benchmark costs. There are number of site specific features and optional packages those are not considered under the benchmark capital cost of the thermal power project. More ever, there is no benchmark capital cost for the thermal power projects of lower capacity like

200/210/250 MW series. The CERC benchmark capital cost only provides the guidelines for procurement of plant and machinery. The benchmark capital cost needs periodical review as it varies over a period of time due to escalation in prices, technological improvement and market competition etc. Capital cost of the power project also play an important role for determination of financial cost components and cost of energy generated from it. The regulator, while determining the tariff, takes into account objectives of safeguarding consumer interest as well as ensuring recovery of cost of electricity in a reasonable manner. To achieve these objectives, the regulator undertakes various regulatory measures which are consistent with the principles set out under section 61 of Electricity Act, 2003 and Tariff Policy, 2006. The Terms and Conditions of Tariff specified by the CERC for determination of tariff also act as guiding principles for the SERCâ&#x20AC;&#x2122;s. The Tariff Policy provided that when allowing the total capital cost of the project, the Appropriate Commission would ensure that these are reasonable and to achieve this objective, requisite benchmarks on capital costs should be evolved by the Regulatory Commissions. The capital investment is require to be made by the generating company for various purposes like creation of new infrastructure to meet the load growth, meet statutory requirement, increase efficiency and replace old/ obsolete assets. Any such expenditure increases the capital base of the project thus affecting the tariff. It is therefore, necessary to ensure that such capital investment schemes being proposed are necessary and justified, and do not impose unnecessary burden on consumers by way of tariff. The tariff norms (operating and financial) are also required to be decided keeping in view the developments in the sector, current and perceived challenges in the Power sector and duly recognizing the need for sustainable market development. Though

August 2016

InFocus

it is important to maintain regulatory certainty in tariff approach, the tariff should reflect the changing market conditions. In view of the above, â&#x20AC;&#x2DC;there is need to develop a unified approach for determination/prudency of capital cost of power projects and ensure its reasonableness through transparence process. Further, an in-depth review of studies on capital costs of building new power plants is required while exploring the major factors that determine these costs with an eye to how those driving forces might change in the future.

Prudence of the capital cost The determination of Capital cost is a critical step in tariff. Power projects are capital intensive in nature and to promote growth in the sector, it is important that the tariff regulations should provide an environment where investors are provided good returns on their investment. It has been observed that the projected completion cost changed drastically owing to reasons such as deferment in commissioning of projects, non placement of orders and availability of fund from funding agencies etc. The capital expenditure of the project meets through the three financial components. The impact of these components on tariff / cost of electricity are as given below:

Prudence of capital cost of the projects would be includes hh

Scrutiny of the reasonableness of the capital expenditure,

Financing plan of the project and phasing of expenditure.

Interest during construction expenditure during construction,

Use of efficient technology,

Cost over-run and time over-run,

Identification of the agency responsible for delay,

Competitive bidding for procurement and such other matters

Reasons of the variation of capital cost from benchmark norms,.

Cost comparison with similar projects on overall cost basis.

August 2016

and

incidental

Efficiency during construction phase is key towards avoiding delays in project commissioning which directly impacts the capital cost. As a result of any delay the capital cost would increase cost on account of interest during construction (IDC), escalation in prices and increase in establishment charges. It is important to realise the importance of bringing in efficiency during construction phase.

Regulatory tools for prudency of capital cost: Delay in project execution The time schedule for executing the project varies substantially across the projects due to various reasons such as execution philosophy, site conditions, etc. However, under the cost plus regime, it is important to specify the appropriate mechanism towards treatment of increase in cost on account of delay in project in order to allow the prudent costs to be passed on to consumers. For any power project, it is important to decide starting point or zero date of the project so as to maintain uniformity for determination of time over run. The different approaches are followed for start date or zero date. In some of the cases, start date is the date of investment approval where as in some of the cases, letter of award is the project start date. Also there is an issue of the mismatch between the commercial operation of a generating station and the associated transmission systems as it has an impact on the COD as well as IDC of the generating station. No additional impact of time overrun or cost overrun should ideally be allowed on account of non-commissioning of the generating station or associated transmission system by scheduled COD. In case the power Project gets delayed due to any reason, the Capital Cost varies substantially due to various reasons such as increase in price variation, interest during construction, preoperative expense, overheads etc. and hence it becomes imperative to carry out the prudent check of the Capital Cost based on actual Capital expenditure.

ebt - Equity Mix Any investment deployed in the power project either in the form of equity or debt has a cost to be serviced through tariff. The Capital cost of the power project forms the return on investment during the life of the project. Funding pattern of the power project is the most important factor for the promoters as it has an impact on return on investment. Financing plan of the project also plays a predominant role in the determination of tariff. The investments made in the form of equity are risk capital carrying higher rate of return and have perpetual flow of return up to the end of the life of the plant. However, the loan capital does not enjoy the aforesaid perpetual and higher rate of return. As the equity in excess of normative considered as notional loan for the purpose of tariff. The soft cost of the project comprises Interest during Construction, financing charges and foreign exchange risk variation. The IDC and financing charges of the new power projects contribute about 12% to 14 % of the completed cost of the project and depends on the following:

InFocus

Phasing of the expenditure since beginning of the project.

Debt : equity ratio incurred during the project

Amount of equity invested over and above the normative equity.

Terms and conditions of the loan and weighted average rate of applicable interest.

Time taken for completion of the project.

Benchmark Capital Cost The CERCâ&#x20AC;&#x2122;s benchmark capital cost, for coal based thermal power projects may be used as a guiding parameter for allowing capital cost of power stations. The benchmark capital cost may be used as normative capital cost to induce efficiency in procurement of plant & machinery and timely development of project. But this benchmark capital cost needs periodical review as it varies over a period of time due to escalation in prices, technological improvement and market competition etc. Benchmark norms of capital cost represent the hard cost of the project and the cost of land, financing cost, interest during construction, taxes and duties, right of way charges, cost of R&R etc. are not includes in benchmark capital cost these are project specific and the same would be additional. In view of the above, it is observed that the Capital Cost based on benchmark norms, the projects do not have same features and site conditions, and the cost varies based on project specific or site specific features and hence, it may not be appropriate to consider the benchmark capital cost for determination of tariff. However, while determining the projected capital expenditure as on COD, these may be guiding for prudence check.

International Competitive Bidding Competitive Bidding is a transparent process for procurement of equipment, services and works in which bids are invited by the project developer by open advertisement covering the scope and specifications of the equipment, services and works required for the project and the terms and conditions of the proposed contract as well as the criteria by which bids shall be evaluated, and shall include domestic competitive bidding and international competitive bidding.

Vetting of Capital Cost Prior to regulatory regime the Central Electricity Authority was agency and technically expert body for vetting and approving the capital cost of thermal power stations through techno economic clearance (TEC). After enactment of Electricity Act, 2003, the vetting of capital cost of thermal power stations is not a function of CEA as per the provisions of the Electricity Act, 2003. Further, the Act has done away with the requirement of concurrence of CEA. In such circumstances, the capital cost should be vetted by independent expert body of technical experts while approving the capital cost and carries out the detailed scrutiny of capital cost.

Reasons for variance in capital cost of same capacity plants/units The main reasons of variances in capital cost of same capacity plants/units are as follows:

Civil Cost One of the factor of the capital cost is the cost of civil works which cannot be appropriately compare as it depends upon site specific details like: hh

Safe grade elevation considering the topography and the quantum of cutting & filling involved in leveling work.

The seismicity & wind forces specific to site.

Geotechnical data leading to selection of open or pile foundation, excavation in rock or soil.

Measures of ground improvement in poor ground conditions or measures to prevent liquefaction.

Provision of reservoir which depends on the source of make-up water & its storage capacity and availability of water in river.

Availability of borrowed soil for site filling / ash dyke/ reservoir construction.

Provision of liner in ash dyke/reservoir as per technical and statutory requirement.

In the area of project execution to ensure competitiveness of prices there is a need for introducing mandatory International Competitive Bidding for main plant packages/ major packages and competitive bidding for remaining packages to ensure competitiveness of prices. In case of a single bidder, it would be difficult to consider the discovered cost as efficient cost due to lack of competition. In case of ICB, the developer should take care to safeguards the foreign exchange variations in the import of equipments thereby avoiding unnecessary burden on the consumers.

August 2016

InFocus

Length of approach roads / railway siding works / makeup water pipe lines / ash disposal & recirculation pipe line civil works which will depend upon the relative location w.r.t. main plant and varies from project to project.

Corrosion protection measures, which depending upon the prevailing soil & ground water conditions and location in coastal areas.

Diversion existing roads & drains as necessary.

Green field and Brown field Projects The difference, as worked out, between the two costs is on account of: hh

Greenfield project requires totally newly established facilities such as office, canteen, workshop, guest house etc. which is not so in the case of brown field project.

Greenfield project also requires establishment of construction resources such as water, power, fuel, genset etc. while in the case of brown field project, the existing construction resources are utilized.

In brown field project, the existing turbine building is extended while in Greenfield project, a new turbine building has to be set.

In brown field project, the available engineering experience at existing location is utilized thereby reducing the cost while in Greenfield project, these needs to be established anew.

There has been difference in the Boiler Turbine Generator cost for the green field and brown field projects to the tune of 5% which is unreasonable as Boiler Turbine Generator scope remains the same for green field and brown field projects.

Options for dry fly ash disposal Cost of dry fly ash disposal largely depend on plant layout, varying coal quantity due to import/indigenous type of coal, lower slabs of calorific value, type of chimney-single flue/multi flue, storage requirement etc. Capital cost is also depends on either track hopper or wagon tippler scheme, whereas, depending upon the requirement. Further, in case of Ash Handling Plant cost, normally it has considered only up to 5 km of length, whereas in reality the overall length varies significantly depending on the layout.

Evacuation Voltage Change in evacuation voltage level from 400KV to 765KV results in significant increase in switchyard cost i.e. per bay cost. As per Central Electricity Authority, the power evacuation voltage level has been typically considered as 400KV for 2x500MW and 765KV for 2x660/800MW. However, Power evacuation voltage levels are finalized based on present capacity of plant, future capacity addition provisions, location of plant and beneficiaries of projects. Accordingly number of lines along with associated 765/400KV Inter Connecting Transformers shall have to be considered. The base switchyard type

August 2016

also taken for thermal project are being planned based on land availability and environmental conditions. Water storage: Off-late water availability has been a major concern for power projects. It required to create a storage capacity for one to three months, which again requires construction of Reservoir / Weir / Annicut / Barrage and these needs to be considered.

Initial Spares The Capital Cost for the project, in addition to plant and machinery cost, includes various other components such as cost of land, cost for site development, IDC and Financing Charges, establishment expenses, etc., and such cost depends on various other factors. It is noted that in case of two similar projects having same Plant and Machinery cost, the total Capital Cost may vary substantially because of other components of Capital Cost and if Initial Spares are allowed as percentage of Capital Cost, the amount allowed towards Initial Spares for two projects with identical plant and machinery cost may vary substantially for the same quantity and quality of spares.

Project Specific issue The project specific issue like Mega/non mega status needs to be factored in the analysis of price. Electro Static Precipitator package considered is a part of Steam Generator package or is excluded. Cost of transportation, insurance, statutory fees paid towards Indian Boiler Regulations, IR etc is included or otherwise.

Conclusion There is a continued need to analyzing existing methods of determination of capital cost even in the case in which special efforts are to develop efficient methods for prudency of capital cost. Therefore, an opportunity to improve upon existing methods always exists because of advancement and technological developments. There is need to establish a structured standardized process for prudency and determination of capital cost of the thermal power projects. Some independent experts/agencies should be nominated for verification and vetting of the capital cost same as in hydro power stations. As regards fixing the Capital Cost based on benchmark norms, it is of the view that the projects do not have same features and site conditions, and the cost varies based on project specific or site specific features and hence, it may not be appropriate to consider the benchmark capital cost for determination of tariff. The capacity building of regulatory staff is also necessary to do the regulatory work and complete the process of fixation of capital cost of the power stations efficiently within the stipulated time. As electricity regulators, it is felt that it is important that the quality and caliber of talent in the regulator should be on par. â&#x2013;Ş Ashok Upadhyay

BE (Electrical), M Tech. (Ind. Engg.) M. Phil (Renewable Energy) Dy. Director (Generation) M.P. Electricity Regulatory Commission Bhopal (M.P.)

InDepthâ&#x20AC;&#x2030;

he typical operating modes of thermal power plants are undergoing changes both as a result of the liberalization of the power generation markets, but also especially as a result of the increasing percentage of renewables in electric power generation. In some parts of the world these changes affect the conventional power plant operation mode significantly. Due to power fluctuations generated by renewable power producers, the former base load, intermediate load and peak load operating modes are being increasingly replaced and instead split into renewable power generation and residual load.

Power Generation

plant for new units and for mature power plants. Appropriate measures might be implemented in steam power plants of any size up to the 1000-MW-class.

the third main steam valve that may be used in reaction-type turbines to bypass the few first stages of the HP-blading. With the second method no throttling losses occur during normal operation.

The easiest measure of rapid load increase for frequency response, that can be always used, is adjustment of the turbine swallowing capacity by throttling the main steam control valves, with the disadvantage of throttling losses during normal operation. Another method is to open a last main steam valve in the case of impulse turbines or to use

Condensate throttling is a proven measure to enable fast increase of turbine power in case of high drops in grid frequency. In this case the main condensate control valve is throttled to a calculated position allowing a reduced condensate mass flow through the LP feedwater heaters. Allowing for a certain response time

Residual load generation by thermal power plants however means that these will have to stand in for fluctuating renewable power generation. The main challenges are the fast start-ups, fast load change rates as well as efficient low load operation and high demand for primary frequency response. Figure 1 illustrates the changed operation modes from current standard operation mode to a new highly flexible operation. There are various measures which can be taken to facilitate compliance with the aforementioned requirements in coal fired power

Figure 1: Standard and new flexible operation line

August 2016

InDepthâ&#x20AC;&#x2030;

Power Generation

Figure 2: Overview about measures to facilitate load increase

the extraction steam mass flows of the LP feedwater heaters and the deaerator/feedwater tank are then reduced. The surplus steam remains in the turbine and generates additional power. The strategic effect of this method is to utilize the stored energy of the preheated feedwater stored in a feedwater storage tank. One benefit is that heat rate is not increased during normal plant operation. Furthermore no additional life time consumption is caused by using condensate throttling. Additional investment is required for extra buffer volumes and fast-acting control valves. The response time might be improved by introducing fast-acting valves in the extraction lines. The duration of condensate throttling has to be aligned with the boiler response time. Another method to increase the swallowing capacity of the steam turbine is to open an already existing bypass from main steam to the cold reheat steam line. For steam power plants with cascading bypass systems an HP bypass station is usually provided within the boiler

scope. It comprises a valve and a spray attemperator and is usually only used for bypass operation. Nevertheless fast opening of this equipment unit during load operation results in a transient mass flow and thus power increase since energy stored in the boiler is unloaded. The temporary reduction in HP turbine output and the losses in the HP bypass station are more than compensated by the increase in output at the IP and LP turbine. Compared to â&#x20AC;&#x153;opening of the last valveâ&#x20AC;? this option results in higher throttling losses during activation but no additional equipment or piping are required.

Depending on the frequency of demand a partial or full HP feedwater heater bypass can be used to increase turbine generator output. Throttling valves can also be incorporated into the system to provide partially reduced steam flows to the HP feedwater heaters allowing compliance with frequency response requirements in a manner which does not adversely affect service life time. An overview about the described measures is shown in firue 2.

As an additional measure, or independent of other methods, HP and RH spray attemperators can be used for a sudden intermediate increase in steam turbine power output.

Last but not least optimization of the unit control, incorporating flexibility measures i.e. temperature control and combustion optimization definitely lead to significant improved operating behavior and efficiency. A proper process control system is fundamental to achieve a fast and stable dynamic process behavior during load ramps and frequency responses.

There are different types of HP feedwater heater operating modes which can be used for provision of additional turbine output.

The above described mechanical measures to enhance the unit load flexibility impact the Rankine watersteam process in very different

August 2016

InDepth

Power Generation

aspects and require good process coordination. The response time and effectiveness depends on different factors such as: the boiler inherent energy storage capacity, the storage strategy, load dependencies, the steam pressure and temperature permissible gradients / disturbances and the control concepts, influences from changes in fuel quality. The optimization of the planned or existing unit control concept, which is most often designed for simple base load operation, is a centerpiece for any load flexibility solution. The optimized model based unit control coordinates the set-points for the fuel, air, feed water and turbine valve control during transient load operations and is the basis for a highly flexible plant operation. It coordinates as well all required interactions for the additional, above listed measures (e.g. condensate throttling and deactivation of HP preheaters) and considers their effects on the process. Which measures offer the best value to the customers is dependent on three project-specific parameters – the required amount of power increase – the expected number of load changes during life time – the required load change rate. The best way to fulfil challenging frequency response requirements is to combine several measures for a fast load increase. The different measures are activated in a staggered manner, depending on the amount of frequency deviation. The outcome is superimposed. The higher the frequency drop, the more measures are used in parallel to achieve the required increase in turbine output. The final measures in the chain are only activated in the very rare case of an extraordinarily high drop in frequency. It therefore makes sense that the measures with no impact on life time consumption should be activated first, the measures with higher impact on life time consumption last. There are many technical solutions available for adapting coal-fired power plants to the upcoming volatile grid requirements. To obtain an optimum and economic solution based on the project specific requirements it is advantageous to initiate early and close cooperation with the boiler, balance of plant and steam turbine generator suppliers. In existing plants it is also possible to implement some of the described instruments for improving operational behavior in favor of flexibility. Based on the turnkey experience Siemens supports in finding the best combination of measures for specific needs. ▪ Thomas Achter

Siemens AG, Germany

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August 2016

Techspace

“Life is really simple, but we insist on making it complicated.” - Confucius

ield engineers encounter many problems during testing, commissioning, operation and maintenance. Most of the problems are solved either by trial and error or seeking advice from ‘experienced’ persons who might have encountered similar problems in the past. But a sounder approach will be to understand the basic concepts of ‘whys of things’ that will eliminate substantial uncertainty in resolving issues. In short, to recognize the elephant in the room is the first step. In this series of articles, basic conceptual confusions that confront power engineers in field are stated with their resolution. Minimum theoretical concepts required to explain field problems are included.

Concept of Reactive Power and Reactive power loss The concept of reactive power is brilliantly explained in Ref [1,2]. Any electric circuit is always a combination of resistance, inductance and capacitance. Refer Figure 1 and Table 1.

Table 1 v = Vm Cos wt; i = Im Cos(wt-q); pf = cos q Instantaneous Power = Vm Im Cos wt Cos(wt-q) = (1/2) Vm Im Cos q (1+Cos 2wt) + (1/2) Vm Im Sin q Sin 2wt Instantaneous Active Power

Instantaneous Reactive Power

(1/2) Vm Im Cos q (1+Cos 2wt)

(1/2) Vm Im Sin q Sin 2wt

Average Active Power

Average Rective Power

P = V I Cos q

Called simply Active Power

Usually Ignored

Amplitude Instantaneous Active Power

Amplitude Instantaneous Reactive Power

P = V I Cos q

Q = V I Sin q

Usually ignored as it is simply P

Called simply as Reactive Power

The instantaneous power waveform is illustrated with a numerical example in Fig 2. There are two components in instantaneous power. One is called the “Active power”. Averaging of instantaneous active power is called Active Power =V I cosθ. This is always positive (0,8 in Fig 2) and instantaneous real power oscillates around this value. It does the useful work.

Fig 1

August 2016

Techspace

Time (ms) Fig 2

Another component is called the “Reactive power”. Reactive power = V I sinθ is the maximum value of instantaneous reactive power (0.6 in Fig 2). Thus, though V and I are RMS values, VIsinq is not average value but instantaneous value at its maximum (minimum) peak. Average of instantaneous reactive power is zero as it oscillates around X axis. It is the energy stored in the circuit inductance and capacitance. Physically it implies what the system delivers in one quarter cycle, inductance/ capacitance delivers back to system in next quarter cycle. If this is the case, what is meant by reactive power loss? Refer Figure 3. Instantaneous reactive power waveforms at sending end and receiving end are shown. The decrease in amplitude while delivering reactive power is termed as reactive power loss.

Fig 5

From simulation, QS = 10.52KVAR and QR = 7.89KVAR. The reactive power loss = 10.52-7.89 = 2.63KVAR. Reactive power loss is also given by I2X1. I = 230 / (1.26+3.77) = 45.73A.rms QLOSS = 45.732 x 1.26 /1000 = 2.63KVAR This is same as obtained from simulation. The interesting point to note is that I is RMS while Q is amplitude of instantaneous quantity. This peculiarity is due to way Reactive Power is defined. The sending end voltage (VS) and receiving end voltage (VR) are shown in Fig 5. The reduction in voltage at receiving end is due to voltage drop in reactor. Sonu Karekar’s acknowledged.

help

PDCAD

simulation

Regulation and transformer impedance

Fig 3

The under lying concept is further illustrated with an example. Consider a single phase network with only reactive elements as shown in Fig 4. Let VS = 230V; X1 = 1.26Ω; X2 = 3.77Ω.

Regulation refers to change in terminal voltage when a network element like transformer carries load. At the outset, it should be emphasized that %Regulation is not %Impedance. 10% impedance does not imply that 10% change in voltage under full load conditions. This is true only when full load is drawn at ZPF. As an illustration, consider 20MVA transformer with 13% impedance. Refer Fig 6. Variation of sending end voltage for a specified (100%) receiving end voltage at rated MVA for different pf is shown in Fig 7. If load is drawn at 0.9 pf or better, even at full load, the regulation is less than 5%. Below 0.8 pf, regulation increases rapidly and reaches 13% (impedance value) at ZPF. It is important to note that magnitude of current drawn (I) is same and hence reactive loss (I2X) in transformer is same in all cases.

Fig 4

The results of simulation are given in Fig 5. There is a drop in amplitude of receiving end reactive power (QR) compared to sending end reactive power (QS). But the average values of QS and QR are still zero as they oscillate around X axis.

Fig 6

August 2016

Techspace

MV1-MV2: 41.12% Load at each MV bus = 45 MVA at 0.8 pf = 36 + j 27 The resulting voltages for above loading are given below: VH = 100%; VMV1 = VMV2 = 96.2% On no load, VH = 100%; VMV1 = VMV2 = 104.6% Regulation = [(104.6-96.2) / 104.6] x 100 = 8% Even though HV to MV impedances are about 22%, the regulation is only 8% since the load power factor is not low (0.8). Fig 7

The vector diagram for two extreme cases, UPF and ZPF, are shown in Fig 8. If current is at UPF, the voltage drop (IX) is in quadrature with VR and resultant VS is close to VR (regulation – 0.84%). If current is at ZPF, voltage drop adds algebraically with VR resulting in large VS (regulation – 13%).

In case of large EHV power transformers (600 MVA and above), impedances in the range of 15% to 25% are common. These large values are chosen to limit the fault level within available breaker capacity. But large impedance values per se do not cause voltage regulation problems as long as load is at good power factor. At EHV level, the load flow power factor is generally above 0.95. The raison d’etre of reactive compensation in distribution and transmission networks follows from the above discussions. Major network elements like transformer, overhead line, cable, etc are almost reactive (X/R >>1). By reactive compensation at different voltage levels, power factor of current flowing through network elements is made near to unity which leads to low regulation and near normal voltage profile. For deeper insight into reactive compensation details refer[3].

Effectively grounded system

Fig 8

Power supply to Mumbai is derived through multiple voltage transformations. The bulk power is stepped down at Transmission Stations. A typical Transmission Station (T/S) has a number of 220/33 kV, Star – Zig Zag transformers. The Star neutral is solidly grounded whilst Zig Zag neutral is grounded through NGR (Neutral Grounding Reactor). Each transformer feeds 5 to 6 Receiving Stations (Refer Fig 10).

Consider another example shown in Fig 9. Transformer parameters are as below: 400 / 11.5 / 11.5 kV; 90 / 45 / 45 MVA

Fig 10

Fig 9

Impedance on 90 MVA base: HV- MV1: 21.76% HV-MV2: 21.61%

At the Receiving Station (R/S), step down transformer has the following rating: 33/11 kV, 20MVA, Delta – Zig Zag. Secondary neutral is solidly grounded. Each transformer feeds 5 to 6 Ring Mains. Each Ring Main serves 5 to 10 Sub-Stations. (Refer Fig 11). At each Sub-station, 11/0.44 kV Distribution Transformers (DT) step down power and feed LT distribution system. At Transmission Stations, secondary of transformer is ‘effectively grounded’. At Receiving Stations, secondary of transformer is ‘solidly grounded’. The meaning of

August 2016

Techspace

‘solidly grounded’ is that there is no intentional intervening impedance present between the transformer neutral and ground. It may be noted that ‘solidly grounded’ system is a subset of ‘effectively grounded system’. A ‘solidly grounded’ system is ‘effectively grounded’ but an ‘effectively grounded’ system need not be ‘solidly grounded’.

Cable size: 3C x 400mm2 Al ZP = ZN = 0.08 + j 0.117 Ω/KM ZO = 0.646 + j 0.644 Ω/KM From results of simulation: I1P = IR = 5.88 kA

The two relationships generally used for characterizing effectively grounded system are given below. Refer Cl 5.0[4].

The voltages at Bus1 for far end fault are given below:

a) KF ≥ 0.6.

VY = 22.13 kV (116%)

KF = (Single Phase to ground fault current)

VB = 19.91 kV (105%)

(3 Phase Fault current)

EFF = 1.16 < 1.4

= I1P / I3P

This is frequently used by field engineers as it is easy to understand and implement. For solidly grounded system, KF ≥ 1.0. For ungrounded system, KF ≅ 0 b) EFF (Earth Fault Factor) ≤ 1.4

EFF = Maximum Line to ground voltage on healthy phase during fault ¤

Rated Line to ground voltage

For solidly grounded system, EFF ≤ 1.0.

For ungrounded system, EFF ≅ 1.732

VR = 9.39 kV (49%)

This brings out an important fact that even though ground fault current is only 40% of three phase fault current at Bus1 (5.88 / 14.6 = 0.4), the voltage rise at the Bus1 is still within limits (<1.4 pu). Hence all other feeders connected to Bus1 do not experience over voltage.

Case 3 Refer Fig 11 (R/S). Transformer rating is 20 MVA, 33/11 kV, Delta – Zig Zag, ZP = ZN = 12.5%; Z0 = 3%.

Case 1 Refer Fig 10 (T/S). Rating of transformer is 125 MVA, 220/33 kV, Star – Zig Zag, ZP = ZN = 15%; Z0 = 2.5%. Three phase fault current at 33 kV Bus1 = I3P = (125/0.15) / (√3X33) = 14.6 kA Rated phase voltage = 33 / Ö3 = 19.05 kV The secondary neutral is earthed through NGR to limit the ground fault current to a desired value. Assume XR = 1Ω. Ground fault is simulated on Phase R very near to Bus1 (F1 in Fig 10). From results of simulation, I1P = IR = 10.18 kA KF = 10.18 / 14.6 = 0.7 Since KF > 0.6, the system for this fault is effectively grounded. This can be reconfirmed from voltage rise on healthy phases during fault. VR = 0 VY = VB = 22 kV (116%) EFF = 1.16 < 1.4

Fig 11

Three phase fault current at Bus1 = I3P = (20/0.125) / (√3X11) = 8.4 kA Rated phase voltage = 11 / √3 = 6.35 kV Secondary neutral is solidly grounded.

Case 3.1 Ground fault is simulated on Phase R very near to Bus1. From results of simulation, I1P = IR = 11.25 kA KF = 11.25 / 8.4 = 1.3 The reasons for KF much greater than 1 are: (i) primary is delta connected (ii) secondary is solidly grounded and (iii) zero sequence impedance is much smaller (3%) as secondary is Zig Zag connected. The phase voltages at Receiving Station bus are:

Case 2 The same example is repeated with ground fault (R Phase) on cable at 3.6 KM away from Bus1 (F2 in Fig 10). The cable parameters used for simulation are[5]:

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VR = 0 VY = VB = 5.6 kV (88%) EFF = 0.88 < 1.4

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The system is effectively grounded for fault very near to Receiving Station bus. None of the connected feeders will experience over voltage.

Case 3.2 In Fig 11, a sample ring main is considered for simulation. It has 7 substations and distance between substations is 500 meters. The cable parameters used for simulation are [5]: Cable size: 3C x 300mm2 Al ZP = ZN = 0.123 + j 0.102 Ω/KM ZO = 1.173 + j 0.427 Ω/KM For a ground fault on R phase at remote Bus8, I1P = IR = 2.184 kA The ground fault current is only 26% of three phase fault current at Bus1 (2.184 / 8.4 = 0.26), The phase voltages at faulted Bus 8, intermediate Bus 5 and Receiving Station Bus 1 are shown in Table 2. Table 2 Bus 8 Voltage kV EFF VR 0 VY 8.134 1.28 VB 9.951 1.57

Bus 5 Voltage kV 2.513 6.961 8.409

Bus 1 EFF Voltage kV 0.40 5.865 1.10 5.933 1.32 6.380

EFF 0.92 0.93 1.00

At the remote Bus 8, EFF > 1.4, hence locally it is ‘non-effectively grounded’.

At intermediate Bus 5, EFF is marginally less than 1.4, just managing to be categorized as ‘effectively grounded’.

At the Receiving Station Bus 1, EFF is £ 1 and it is ‘effectively grounded’.

From results of above case studies, the following observations are made: a) Irrespective of fault location, EFF at Receiving Station is £ 1.0. This has important implication that at Receiving Station, voltages of un-faulted phases do not rise above normal phase voltage. Hence voltage of other feeders (Ring Mains) connected to the bus will not experience over voltage. b) As the fault location is moved away from Receiving Station, EFF at remote location is higher. It can cross the threshold limit of 1.4. At the remote locations it is no longer effectively grounded system. But in substations closer to Receiving Station even on the faulted feeder, EFF < 1.4. Thus over voltage is limited to local area near to faulted point. The standards recognize this fact. Even in case of solidly grounded system, some parts of system may not be effectively grounded for particular fault location. The aim of solid grounding is to limit over voltages to local areas and over voltages are not felt globally over entire system for fault in any one location.

In this context, the relevant extract (Cl 3.3) from the IEEE Guide [6] is reproduced below: “The overvoltage on un-faulted phases is also of concern because it is applied to the equipment of customers served from distribution transformers connected from phase to neutral on four-wire systems. Thus, even if arrester application is not a limiting factor, the EFF must not be allowed to increase to a level that can impose intolerable over voltages on customer equipment. As a rule of thumb, EFF at the substation should not exceed 1.25, which is obtained approximately when X0/X1 = 2. Preferably EFF should not exceed 1.1, which requires an X0/X1 of 1.3 or less. At locations remote from the substation, the EFF will exceed these values because of the effects of line impedance. However, the lower values at the substation are desirable to mitigate the effect of the line impedance and to localize the over voltages near the fault location rather than requiring the whole system to withstand them. It is realized however, that higher X0/X1 ratios have been used satisfactorily”. It is possible to choose NGR value so that KF = 0.4 to 0.5, with EFF nearly equal to 1.4 for faults very near to source transformer, anticipating lower ground fault current. But in this case, no margin is available in EFF. For any fault even slightly away from transformer, voltage at local substation will rise resulting in EFF > 1.4. This is the reason why the standards recommend that for effectively grounded system, NGR is sized such that KF ≥ 0.6. For academically oriented, a more precise definition for effectively grounded system is that (X0 / X1) ≤ 3 and (R0 / X1) ≤ 1. The definitions given above for KF and EFF will suffice for use by practicing engineers.

Summarising Size NGR based on KF ≥ 0.6 for a ground fault on terminal of transformer Grounding effectiveness at remote locations is based on evaluating EFF at these locations Irrespective of type of grounding, use 100% arrestor for voltages 33kV and below. More than 70% faults are single phase to earth faults. It is important to positively identify and isolate these faults. Current based earth fault protections are more sensitive and selective than voltage based system. In solidly grounded system high magnitude of earth fault current is always ensured for faults anywhere in the system. It is easy to design sensitive earth fault detection system. However the damage at fault point could be severe. Also equipment which experiences the let through current, undergoes higher dynamic stress. If we restrict the earth fault current below a certain level by introducing an impedance in the neutral, the healthy phase voltages rise to L-L values thereby stressing the insulation of all equipment connected to the system. This is also detrimental to the health of the equipment particularly in a network with aging equipment. Effectively earthed system is balance between the two. We get sufficiently large current ensuring positive relay

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operation; at the same time the healthy phase voltages do not rise to dangerous levels. The results presented here are outcome of simulation studies done by Sonu Karekar, Amol Salunke and Ashutosh Pailwan.

Mirror Image concepts For want of a better term, the title for this section has been chosen as above. It also covers concepts which are ‘close and inverted’. It could also be termed as description of ‘twins’.

5.1 Capacitor and Reactor 5.1.1 Voltage across capacitor can’t change instantly.

5.1.4 Capacitor is connected in parallel with inductor (Fig 15) to limit steepness of incoming surge voltage.

Fig 15

Stator windings of large alternator and motor are basically large inductance coils. Any very steep front voltage wave entering the stator coils will damage the first few turns of the windings. To flatten out the steep wave front, capacitor is placed ahead of alternator or motor (Fig 16). For this reason, it is termed as ‘surge capacitor’.

I = C dV/dt. But the current can reach very high values immediately after switching. Refer Fig 12. It could be very large multiples (> 100) of rated current. But it dies down very rapidly as time constant (CR) is in µsec. The inrush appears as a pulse of very large magnitude.

Fig 16

Thus reactor and capacitor are natural twins in power system components.

5.2 CBCT and Open Delta PT 5.2.1 CBCT

Fig 12

5.1.2 Current through inductor (reactor) can’t change instantly. E = L dI/dt. The voltage across reactor can reach supply voltage immediately after switching. Refer Fig 13. The time constant is in msec.

Fig 13

5.1.3 Inductor is connected in series with capacitor (Fig 14) to limit peak inrush current during switching on capacitor banks.

In solidly grounded system, the earth fault current magnitude is high and comparable to three phase fault current. In this Fig 17 case, residually connected CT connection (also termed Holmgreen connection) is used for connection to earth fault relaying element. Secondary reflected phase currents are physically summated. Refer Fig 17. IN = IRS + IYS + IBS. In low resistance grounded system, where the earth fault current magnitude is limited to, say 200A to 400A, Core Balance Current Transformer (CBCT) is used for connection to earth fault relaying element improving sensitivity of fault detection. CBCT has a torriodal core on which secondary is wound. It encircles a cable with all three conductors (R,Y,B). Output from secondary is proportional to net flux produced by sum of three phase Fig 18 currents. Refer Fig 18. Under healthy conditions, vector sum of the three phase currents is zero. IR + IY + IB = 0

Fig 14

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The resulting flux in the core is zero and current output from CBCT is nil. Since CBCT output is zero under healthy conditions, its turns ratio is not chosen based on

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maximum line current magnitude but on desired value of minimum primary ground fault current to be detected. Typically it is 50/1. During line to ground fault, IR + IY + IB = IN = 3I0. To detect small earth fault currents (say 20A), in low resistance grounded system, CBCT is employed. Numerical relays give an option to connect CBCT output to relay as direct input rather than summating three phase currents through software. Generally CBCT output is wired to a DMT element (50N/2). 5.2.2 Open Delta PT In ungrounded or very high resistance grounded system, ground fault current is too low (less than 10 to 15A) for current based protection to pick up. Ground fault detection is achieved using open delta PT connection. Refer Fig 19.

It is interesting to point out that open delta voltage is obtained by physically connecting three PT outputs in series (Fig 19). In case of residually connected CT connection, the relay current is obtained by physically connecting three CT outputs in parallel (Fig 17). The thing common in CBCT (Fig 18) and Open delta PT (Fig 19) functioning is that both work on the principle of “Resultant” magnitude. Thus, CBCT and open delta PT are twins for ground fault detection.

5.3 Phase voltage and Zero Sequence voltage during ground fault 5.3.1 Phase Voltage Phase voltage is high at source and almost zero at the fault point. Under voltage relay located near the fault location responds. 5.3.2 Zero Sequence voltage Source (generator) does not intentionally produce any zero sequence voltage and hence zero sequence voltage at source is nearly zero. At the point of ground fault, phase voltage at faulted point collapses but zero sequence voltage is high [7]. Refer Fig 20. Under voltage relay connected to phase PT and over voltage relay connected to open delta PT respond. Thus in both cases, voltage relays close to fault only respond.

Fig 19

Under healthy conditions, vector sum of the three phase voltages is zero. VR + VY + VB = 0 During line to ground fault, VR + VY + VB = VD = 3V0 = 3VP PT connected in open delta measures zero sequence voltage. For example, consider a 600 MW unit with rated voltage of 20kV. Phase voltage, VP = 20/√3 = 11.55 kV. The unit is very high resistance grounded. In case of ground fault on 20 kV side, voltage sensed by open delta PT on primary side: VΔ = VR + VY + VB = 3 x 11.55 = 34.65 kV If the single phase PT ratio is (20/√3) kV / (110/3) kV, TR = Turns Ratio = (20,000/Ö3) / (110/3) = 315 Open delta voltage on secondary side = VΔ / TR = 110V The relay connected across open delta PT can sense the over voltage and initiate alarm / tripping.

Fig 20

Also to be noted is that the phase voltage at faulted point is nearly zero irrespective of type of grounding of source. However zero sequence voltage at faulted point varies widely depending on type of grounding. It is high in ungrounded system and low in solidly grounded system. For illustration, zero sequence voltage V0 is evaluated at the faulted point F2, Fig 10 considered in Cl 4.0, Case 2. Values for three types of source grounding obtained from simulation are given below: Ungrounded source, V0 = 19 kV Effectively grounded source (XR = 1Ω), V0 = 12.3 kV Solidly grounded source = V0 = 10.5 kV It is myth to assume that neutral shift does not occur in solidly grounded system, only its magnitude is less. Sonu Karekar helped in simulating the above case.

5.4 Line to ground fault reflection in transformer 5.4.1 Delta – Star transformer Line to ground fault on star side of transformer gets reflected as Line to Line fault on delta side of transformer. Refer Fig 21.

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Fig 23

Fig 21

The current distribution follows two cardinal principles: (i) KCL (Kirchhoff’s Current Law) (ii) AT (Ampere Turn) balance of windings on same limb of transformer 5.4.2 Star – Delta transformer with NGT Line to ground fault on delta side of transformer grounded through Neutral Grounding Transformer (NGT) gets reflected as Line to Line fault on star side of transformer. Refer Fig 22.

if both the primary and secondary neutrals are solidly grounded. It is mitigated to a large extent if LV Star neutral is grounded through resistance to limit the ground fault current to less than a few hundred amperes, as in Station Transformer in power plant applications. The reflected fault current on HV side in this case is negligible. The next choice is to Star-Delta vector group which offers zero sequence isolation between secondary and primary. However, if we want to have a sensitive and selective earth fault protection system on the LV side, then we need to use a NGT (Neutral Grounding Transformer) to create a grounded neutral and provide a return path for the earth fault current. Zig Zag on LV side of transformer combines the benefit of both the system. The neutral of the Zig Zag winding can be grounded like a Star system, thereby enabling provision of sensitive and selective earth fault protection. Also zero sequence isolation is ‘naturally’ obtained as earth fault on Zig Zag side gets reflected as line to line fault on the HV side.

5.5 Disposition of conductor and other metal parts – Single core cable, IPBD and ACSR conductor 5.5.1 Single Core Cable Fig 22

5.4.3 Star – Zig Zag transformer Conceptually it is same as (5.4.2) in which zero sequence isolation between primary and secondary is obtained. Secondary neutral is available for grounding. Here also, Line to ground fault on Zig Zag side of transformer is reflected as Line to Line fault on star side of transformer[8]. Refer Fig 23. 5.4.4 Remarks on vector group selection In an EHV transformer with HV side voltage of 132 KV and above, it is preferred to have the HV side as Star to have a commercially cheaper transformer, as graded insulation can be used. One of the basic principles of ground fault relay coordination is to achieve zero sequence isolation between LV and HV side of transformer. In this context, the least preferred is Star-Star vector group, especially

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In single core cable, the conductor in the middle is either copper or Aluminum and the armour surrounding conductor and XLPE/PVC insulation is non-magnetic, usually Aluminum. Armour is provided for following reasons: It provides mechanical protection for insulation against external intrusion. It provides metallic return path for earth fault current. This results in lower touch and step potentials. 5.5.1.1 Aluminum vs Steel armour in Single Core Cable In the case of three core cable, under normal operating condition, IR+IY+IB = 0. Hence, the net flux coming out of cable is zero. In this case steel armour can be used. In the case of single core cable, the net flux coming out is proportional to current in conductor and it is not zero. Hence only non magnetic metal like Aluminum is used as metallic shield in single core cable. FEM analysis is done to evaluate the eddy current loss with Steel and

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Aluminum armour. 11kV, 1000 mm2, Al conductor, single core cable with maximum current carrying capacity of 1000 A is considered for simulation. Refer Fig 24 for major cross sectional details. Results are summarized in Table 3.

Fig 25

Fig 24

Relative Permeability

Skin depth (mm) @ 50Hz

0.35

13.2

1.43

1000

2.69

151

Armour Material

Resistivity r

Aluminum Steel

-7

10 W-Met

Eddy current loss – Watt/ meter

Table 3

Thickness of armour is 2.5mm. If it is steel it is almost equal to skin depth. If it is Aluminum, it is much less than skin depth. Eddy current loss in Steel is nearly 4.6 times that of Aluminum. Also hysteresis loss is absent in case of Aluminum as it is non-magnetic whereas in steel it is appreciable. Thus the heat generated due to eddy current and hysteresis loss in steel armour is significantly higher compared to Aluminum armour of same thickness which will result in derating of cable. Hence Aluminum is preferred as armour for single core cables. FEM analysis was done by Sairam under guidance of Prof S V Kulkarni. Talande furnished cable parameters and participated in analysis.

This prevents circulating current flow in armour. However, in this method, the free end of the armour (insulated) would develop induced voltage VI. Indian Electricity Rules permit 65 volts as the limit of such induced voltage. Voltage induced in armour is determined by armour diameter, spacing between cables (trefoil or flat formation) and phase currents. For LV and MV cables, induced voltage in armour is approximately given by VI @ 55mV / Amp / KM. For example, for a current of 750A and cable length of 0.5KM, induced voltage in armour = 0.055 x 750 x 0.5 = 23V. Unlike solid bonding, single point bonding creates discontinuity in armour circuit and inhibits flow of fault current returning back to source via a metal. In these cases, it is mandatory to provide additional grounding conductor between two distribution boards connected by single core cables. Refer Section 5.4.3 of IEEE Std 575[9]. In case of an earth fault in any outgoing feeder of the receiving end distribution board, the separate ground conductor facilitates return of the earth fault current through the metal to the upstream source, as shown in Fig 26.

5.5.1.2 Solid bonded system If both ends are bonded, circulating current almost equal to conductor current will flow in armour. This current is independent of cable length. The additional power loss due to circulating current in armour will increase the temperature further. Derating of cable has to be done to limit the temperature to allowable limits as per type of insulation used (XLPE = 90°C, PVC = 70°C). For this reason, solid bonding is rarely used in single core cable. 5.5.1.3 Single point bonded system Only one end of armour (usually sending end) is earthed and the other end is insulated. This is called single point bonding. Refer Fig 25.

Fig 26

5.5.2 Isolated Phase Bus Duct Isolated phase duct consists of tubular conductor of either Aluminum or copper. Insulation medium is air. The protective enclosure is a tubular conductor of either Aluminum or Steel. Typical sectional view of 24kV, 12kA IPBD is shown in Fig 27.

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flux to escape outside enclosure. Nearby steel structures do not experience hot spots due to induced currents. hh

Mechanical stresses on conductor, enclosure and support insulators under normal and short circuit conditions are considerably reduced.

Fig 27

Sandeep Lodh’s query was the trigger that prompted the author to study similarities between single core cable and IPBD. The author acknowledges D Guha’s contribution towards not only clarifying finer points on comparison between single core cable and IPBD but also offering critiques on different topics covered in this article.

The major dimensional details are as follows:

5.5.3 ACSR conductor

Outer diameter of conductor: 500 mm

It is an inverted version of the two cases discussed above. The outer core is made of Aluminum strands and is the conductor. Aluminum has good conductivity, low weight and lower cost compared to copper. The inner core is made of strands of steel. Refer Fig 28. It is akin to a messenger wire over which conductor is wrapped. Steel core is provided to increase the tensile strength of cable. Tensile strength to weight ratio of ACSR is almost twice that of only Aluminum conductor. Hence with ACSR, span length can be much higher without increasing sag.

Thickness of conductor: 12 mm Outer diameter of enclosure: 1000 mm Thickness of enclosure: 8 mm C/S area of conductor = (π/4) (5002 – 4762) = 18,398 sq.mm C/S area of enclosure / Sheath = (p/4) (10002 – 9842) = 24,932 sq.mm Bonded housing arrangement is used in majority of applications. The enclosure for each phase is continuously bonded physically and electrically throughout its run. The enclosures for the three phases are shorted at the extreme ends. The situation is akin to solid bonded system in case of single core cable. The magnitude of current flowing in enclosure is almost same as that of main conductor (75 to 90%) but in opposite direction. For the above example, cross section of enclosure is even greater than that of main conductor resulting in reduced resistance and lower enclosure losses. The magnetic field due to current in enclosure opposes the field due to current in main conductor at every instant and the resultant flux is very small. The force on conductor or enclosure is proportional to current flowing through it and the flux density of field in which it is embedded. Since the resultant flux is very small, forces on conductor and enclosure are less. Especially during short circuit condition, mechanical stresses on conductor, enclosure and support insulators are minimal. Since the resultant flux is small, IPBD can be supported and routed besides steel structures without fear of excessive heating due to hysteresis and induced eddy currents within steel members. As a measure of ‘abundant caution’, earthing conductors (e.g.65x10mm GI strip) are run in parallel with IPBD enclosures and bonded at the ends and at intermediate points. Compared to the enclosure resistance, earthing conductor resistance is too high. Most of the current is carried by enclosure and very little by parallel earthing conductor. Summarising, the main functions of enclosure for IPBD are as follows: hh

It provides mechanical protection for conductor against external intrusion.

It acts as a magnetic shield allowing only very little

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Fig 28

Since relative permeability mR of steel is very high (1000) compared to Aluminum (1), the reactance of steel wire is much higher. It offers high impedance to flow of AC current. Most of the current is carried by Aluminum wire and very little by steel. Hence higher resistance of steel does not add to significant increase in power losses as the current itself in steel wire is low. Thus we have two examples where sheath or enclosure surrounds the conductor (single core cable and IPBD) and another example where conductor surrounds the steel wire (ACSR).

5.6 Transposition – EHV Overhead line and EHV Cable 5.6.1 EHV Overhead line In case of EHV lines of very long length (more than 300 KM), the conductors are transposed to minimize voltage unbalance. Let (1), (2) and (3) be three points in space with respect to centre line of tower (Fig 29). R phase

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conductor occupies position (1) in first section, position (2) in second section and position (3) in last section. Y phase and B phase conductors are similarly transposed. Two figures of merit are used to judge effectiveness of transposition.

Fig 30

Fig 29

I1, I2, I0: Positive, negative and Zero sequence currents Zero sequence unbalance factor = M0 = I0 / I1 Negative sequence unbalance factor = M2 = I2 / I1 Ideally if positive sequence voltage is applied to line, only positive sequence current should flow, i.e., M0 = M2 = 0. However due to unsymmetrical conductor geometry in space with respect to tower, in un-transposed line, M0 is about 1% and M2 is 3 to 20%. Refer Section 4.8[10]. In this case, for application of positive sequence voltage, 1% zero sequence current and 3 to 20% negative sequence current can flow which is not desirable. In case of perfectly transposed lines, M0 = M2 = 0. 5.6.2 EHV Cable In case of EHV cables, the usual practice is to ‘transpose’ the sheath of individual EHV cables. The correct terminology used for cables is ‘cross bonding’. Single core EHV cable has a central conductor of Copper with XLPE insulation over the conductor. Over the insulation, metallic sheath either of Aluminum or Lead is provided. When the conductors carry current, voltage induced due to mutual induction on metallic sheath could be excessive. If the sheaths are bonded at both the ends (solid bonding), the circulating current in sheath is high (almost equal to conductor current) resulting in continuous dissipation of heat. In this case, cable has to be derated to a lower value so that temperature rise in conductor is within limits applicable for XLPE insulation. By cross bonding the sheath, voltage induced and the resulting circulating current in sheath is reduced to a minimum. Refer Fig 30. For 220 kV, 1200mm2 Cu cable, laid in trefoil, sheath (corrugated Aluminum) cross bonded, carrying a current of 840A, maximum sheath voltage is 25V and sheath current is negligible. Amol Salunkhe did the simulation using PSCAD to obtain these figures.

Thus, the conductor is transposed in EHV over head lines while the sheath is transposed in case of EHV cables.

Conclusion In this article, we have paraded a few cases in power engineering that practicing engineers find it difficult to comprehend. The underlying concepts behind the cases are explained. Also from the vast pool of information available, there is a pattern to be unearthed and dots to be connected. These are presented under the section ‘mirror image concept’. We will elaborate on other difficult to comprehend cases in future articles. REFERENCES [1] ‘Reactive Power: A Strange Concept?’ - R Fetea and A Petroianu, University Of Cape Town, South Africa. [2] ‘A monograph on reactive power’, M Ramamoorty, ERDA, India, April 2005 [3] ‘Reactive Compensation Fundamentals for Distribution Networks’ - K Rajamani and Bodhlal Prasad, IEEMA Journal, Aug 2009, pp 112- 115. [4] ‘Grounding of Electrical System – Part II’, K Rajamani, IEEMA Journal, June 2006, pp 51 to 58. [5] ‘Cable sequence impedance measurement at site’, K Rajamani and Bina Mitra, IEEMA Journal, August 2013, pp 84 to 86. [6] ‘IEEE C62.92.4-1991 – IEEE Guide for the Application of Neutral Grounding in Electrical Utility Systems, Part IV— Distribution’ [7] ‘Symmetrical components for Power Systems Engineering’, J Lewis Blackburn, Marcel Dekker, 1993 [8] ‘Zig Zag Transformer - Fault Current Distribution, Short Circuit testing and Single Phase loading’, K Rajamani and Bina Mitra, IEEMA Journal, July 2013, pp 84 to 91. [9] ‘IEEE Std 575 - IEEE Guide for the Application of Sheath-Bonding Methods for Single-Conductor Cables and the Calculation of Induced Voltages and Currents in Cable Sheaths’ [10] ‘Analysis of faulted power systems’, P M Anderson, IEEE Press, 1995 ▪

K Rajamani

Reliance infrastructure Ltd

August 2016

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erhaps air heater is one of the most important but overlooked heat exchanger in power station ,waste heat recovery and upkeeping can generate some power .This is a case of one 60MW power boiler with ESP where the power consumption reduction as well as generation scope exists like most of power boilers of India within 60-110MW capacity.

The regenerative air heater or air preheater (APH) on a large utility boiler often accounts for about 10% of the unit’s thermal efficiency. Its performance is so critical that just a 5.50 C change in gas exit temperature can change the boiler efficiency by a quarter of a percent, The major advantage of using an APH is that it is the least expensive heat-recovery device available that is capable of operating in the harsh environment of a fossil-fueled boiler’s flue gas exhaust. A major drawback of the regenerative APH is the undesired leakages that are inherent to its design. Air leakage has the largest single effect on APH performance. Ignoring the health of APH long enough and one soon will experience some combination of corrosion, fouling, ammonium bisulfate plugging, increased auxiliary power consumption, and higher-pressure differentials that can limit combustion air fan operation. APH leakage and upstream air in-leakage degrade air pollution control equipment performance by increasing the velocity of suspended fly ash and reducing electrostatic precipitator residence time. A regenerative air heater captures the heat in boiler exhaust gases by passing them over a heat-absorbing metallic element.

Effect of Water Corrosion of APH Any metal when react with water form metal aqua complex ,this type of reaction is acid base reaction and general equation is

M(H2O)ab+ +H2O

→ M(H2O)a-1(OH)(b-1)+ +H3O+…..…. (1) ←

In pure water iron exists as aqua complex – in Fe(H2O)6+++ in water, iron oxide breaks as hydroxyl ion and iron ion as Fe(OH)3

→ ←

Fe3++3OH .................................. (2)

Fe3+ H2 +2H2o

→ ←

Fe(OH)2+ + H3O+ .......................(3)

Fe(OH)2+ +2H2O

→ ←

Fe(OH)2+ +H3O+1.........................(4)

2Fe3+ +4H2O

→ ←

Fe2(OH)24+ +2H3O…............……(5)

The iron water reaction is slow process and Fe3+ is extremely insoluble in pure water Others are soluble and these salts when form allow air in leakage to the APH system because of structural weaknesses.due to hydroxide formation ESP–Electrostatic preceptor is another equipment prone to air in-leakage as a result of water corrosion,in especially flue gas temperature goes further down &since system works. At less than atmospheric pressure, moist cold air entry takes place.

Estimation of Leakage To estimate leakage in air heater as well as ESP circuit –flue gas analyzer and thermo couple will be required .Gas analyzer measures O2,CO2 and CO in pap .along with ambient temperature where flue gas temperature is measured by thermocouple.Normally to get reliable result across APH ,three points are selected. Similarly across ESP ,three points are selected. Air preheater leakage =(O2% of the flue gas leaving APHO2% of the flue gas leaving economizer)x100/21-O2% in the flue gas leaving APH

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ESP leakage =(O2% of the flue gas leaving ESP- O2% of the flue gas leaving APH)x100/21-O2% in the flue gas leaving ESP

Case Example Table-1 Design Data of APH Vertical Tubular 4 2 280-3100c 140-1450c 400c 240-2850c

Case study of a 60mw power station air preheater Table-2 Air Preheater Inlet Condition Parameter Oxygen Carbon –di-oxide Co -ppm Tfg c Tamb0c

Average Value 3.63 % 15% 36.33 317.33 36.33

Table-3 Air Preheater Outlet Parameter

Average Value

Oxygen Carbon –di-oxide Co-ppm Tfg c Tamb0c

8.26 % 11.36% 29.3 127 38.6

Since ESP is under vacuum ,leakage also affects it’s performance I,e velocity of ash particle FALSE AIR INFILTRATION DUE TO LEAKAGE False air infiltration directly affects heat transfer at APH, reduces draft in boiler above all provide extra load on ID fan motor. ID fan has a definite capacity to extract flue gas from boiler system –the false air prevents boiler to take-up extra load and this acts as bottleneck. Toward higher plf. Table-4 false air infiltration calculation

2 3

Unit

Data

kg/kg coal

5.79

3.63

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9 10 11 12 13 14 15

16 17

Specific coal consumption Considering 10% allowable air leakage excess air at ESP Outlet mass of air/ kg coal Air to be removed from system/hr

kg/kg coal

7.0

% kg/kg coal

36.34 7.33

8.26

64.83

kg/kg coal

9.543

9.4

81.03

kg/kg coal

10.48

kgair /kg 3.48 coal kg/kwh 0.624 %

30.9

kg/kg

7.579

kg/hr

110518.89

Estimation of extra electrical load on id fan due false air entry

% air in leakage =(8.26-3.63/21-8.26)=36.34%

Description

Actual mass of air supplied APH leakage Actual mass of dry flue gas Average Oxygen % at APH outlet Excess air supplied at APH outlet Actual mass of air supplied at APH outlet Average oxygen at ESP outlet Excess air supplied at ESP outlet Actual mass of air supplied at esp outlet Air infiltration

(10.48-7.57) x37.479x1000

It may be observed that air leakage diluted air temperature.

Theoretical air required avg oxygen at boiler outlet excess air supplied

5 6 7

MAKE Type No of air passes No of gas passes Flue gas temperature after economizer Flue gas temperature after APH Ambient air temperature Air temperature after APH

Sl. No 1

20.9

False air entry affects ID fan performance, one is higher energy consumption,In this situation for one 60MW boiler – false air entry to one ID fan was calculated as 55.25MT/hr

The air KW drawl by fan is given by following relationship Air kw(ID fan)={ [flow in TPHx1000/3600]} kg secx [differential head in mmwc/1000)mx 1000kg/m3/0.744kg/ cubic meter x9.81m/sec2/1000. Flow in kg/sec=55.255x1000/3600 or,15.348 kg/sec Differential head in mwc =pr at IDfan outlet-pr at ID fan inlet in mmwc, Pr at ID outlet =+52mmwc,pr at ID inlet =-153mmwc, Differential head =0.205 mwc Flue gas density =1000/0.744=1344.08 kg/cubic meter, Air KW loss =15.348x0.205x1344x9.81/1000=41.48kw Annual loss of energy due to air ingress=41.48x24hrx330 days/yr or, 0.328MU

Techspace

Application of low grade waste heat In coal fired boilers flue gas temperature after ESP is around 115 to 1200c ,this low grade heat has some potential to generate power if plant people take initiative. This low grade heat can produce –cold water using vapor absorption Chiller. The scheme can be briefly outlined STACK

ID FAN

135 c 110c Heat exchanger

fan

95c

Vap absorption chiller

75c

12c 10c

Esp control room

Schematic diagram of waste heat recovery Figure -1 :sketch of waste heat recovery scheme from ID fan suction

Thermodynamic analysis 55250 kg/hr

Flue gas temperature

1350c

Thermal load -INLET

1392300 kcal/hr

Flue gas temperature at 1100c outlet Thermal load at outlet

1060800 kcal/hr

Heat transferred

331500kcal/hr

Enthalpy of steam at 2.5 649.8kcal/kg bar and 1270c 510kg/hr

For a double effect vapour 2575 kcal absorption chiller the heat requirement/T® T® available

510x649/2575 or,128

Since esp control room requires only 20T® cooling load ,84% of the flue gas can be bypassed Waste heat recovery –air conditioning system recovers 40kw of thermal heat from flue gas to produce 20ton of cooling effect. From the bulk flue gas flow of 430.249ton/hr after one ID fan around 25ton/hr of flue gas is drawn in a slip stream using a fan. The flue gas is passed over a heat exchanger generating steam at 2.5 bar. The steam serves as an input to the VAM driving Li-Br cycle to produce chilled water ABSORPTION REFRIGERATION – The absorption chiller is a machine which produce chilled water by using heat such as steam, gas, oil etc. Chilled water is produced by the principle that liquid which evaporates at low temperature, absorbs heat from surroundings when it evaporates. Pure water is used as refrigerant and lithium bromide as absorbent. The refrigerant –water is

Leakage assessment from control room In most of the power station there is no on line oxygen analyzer – which is connected to control room, in APH in two places oxygen analyzer is required –at entry point and at exit point. By a software % leakage can be identified at any point of time. Interpretation of result is important for overhauling and at least-6 oxygen analyzers are required for each APH.

Conclusion

Flue gas generated

Steam generated

evaporates at around 40c under high vacuum condition of 754mm Hg in the evaporator, when the refrigerant evaporates it takes the latent heat from surrounding I,e incoming chilled water. In order to keep evaporating ,the refrigerant vapor must be discharged from the evaporator and refrigerant water must be supplied .The refrigerant vapor is absorbed into lithium bromide solution which is convenient to absorb refrigerant vapor in the absorber. The heat generated in the absorption process is led out of system by cooling water continuously .This type of absorption refrigeration have a COP in the range of 0.650.70 and provide chilled water at 6.70c,with cooling water temperature of 300c.

Air is essential for combustion ,excess air is essential for good combustion while false air spoils the draught and consume more energy that can be avoided. List of figures Figure -1 Sketch of waste heat recovery scheme from ID fan suction List of tables Table-1 Design data of APH Table-2 Air preheater inlet condition Table-3 Air preheater outlet Table-4 False air infiltration calculation List of references 1 Field study report 2 Air conditioning using low grade waste heat of flue gas at NTPC ramagundam by NETRA pp 9 (NTPC,Energy scan IV, quarter 2014-15) 3 Importance of water removal in compressor operationshivaji Biswas, Vol-54, NO-4, Dec2012) 4 Vanloon G.W & Duffy SJ–Environmental Chemistry–a global perspective, 3rd, Edition, Oxford University Press, Oxford, pp 298-299(2011) 5 Storm technologies incorporated 6 power –business technology for global generation industry. 7 Power plant Engineering by Black and Veatch ,pp305306,(CBS publishers and distributors pvt Ltd) 8 Energy efficiency in electrical utilities-BEE publication Dr Shivaji Biswas

Ex –Director, National Productivity Council, DSCUBE Energy And Enviro Consultants ,Kolkata.

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InternationalNews

INTERNATIONALNEWS Power-surplus India to electrify Bangladesh trade After turning power-surplus, India is working with Bangladesh on a plan to double the capacity of existing transmission interconnects and set up a third link for increasing cross-border electricity trade in a bid to widen the regional market as new generation capacities come up on both sides. Sources said the two sides are working to double the capacity of the Baharmapur-Bheramara line to 1,000 mw and also examine the possibility of raising the TripuraComilla line’s capacity to 200 mw. Also on the table is a proposal to lay a third line from Assam’s Bongaigaon to a suitable interconnect point in Bihar through Bangladesh. Though the proposal is at a nascent stage, sources said a HVDC (high-voltage, direct current) line with a capacity of around 2,000 mw is being looked at. The new line is expected to wheel power from hydel projects proposed to be built in the northeast, some of which can also be shared with Bangladesh. This line would allow an easy tap-in or tap-off facility for both countries to feed -or plug into -each other’s markets. According to the Asian Development Bank, interconnected networks increase the operational efficiency and reliability of existing national grids and encourage the development of new renewable power resources. Besides Bangladesh, India also exports power to Nepal and imports from Bhutan. A wider regional market with easy export and import options will help balance the output swing from the 175 mw of solar power capacity being pursued by India.

GE unveils MV7-Series Drive with UWave technology GE’s Power Conversion business has unveiled the new powerful MV7-Series, ultimate waveform, multilevel, high-power drive, the MV7-Series Drive with UWave technology.GE adopted a 5-level topology in its original MV7 technology so that the drive delivers increased voltage and power output. As an extension of the existing MV7 drive platform, the new UWave drive can operate at up to 13.8 kilovolts with a power capacity of up to 40 megawatts in a single

August 2016

thread, thus an ideal choice for high-power and highvoltage applications across different industries, including oil and gas, marine, renewables and power generation. The MV7 UWave drive produces cleaner power with fewer harmonics. When feeding into motors, it reduces motor stress and can help increase its life expectancy. Higher power quality also results in cleaner electrical signals making the drive more compatible with the grid, which allows smoother grid integration and a more resilient grid network. The smoothed voltage waveform and the smaller filters result in reduce footprint and lower construction costs. “A reduced footprint can in turn reduce construction costs and release space for critical operations—more room for an engine or an extra cabinet onboard a vessel, for example,” said Vincent Schellings, product line leader, power electronics, GE’s Power Conversion business. “Higher power output and yet a smaller footprint makes the MV7 UWave drive more efficient.”

ABB wins orders worth over $300 mn for UHVDC power link in China ABB has won orders worth over $300 million to supply transformers and other key equipment to enable the world’s first 1,100 kilovolt (kV) ultra-high-voltage direct current (UHVDC) transmission link. The Changji-Guquan link will transmit 12,000 megawatts of electricity over 3,000 kilometers at 1.1 million volts, setting new world records on voltage level, transmission capacity and distance, ABB said in a statement. The power will be transmitted from the Xinjiang region in the Northwest, to Anhui province in eastern China. The breakthrough transmission capacity, compared with the 800 kV UHVDC links currently in operation, will also play a key role in integrating remote renewables on a large scale, transmitting power over greater distances and facilitating a more interconnected grid. The contract covers ABB’s advanced converter transformers and components like bushings and tap changers. ABB will also supply the HVDC converter valves, DC circuit breakers, wall bushings and capacitors as well as provide system design support.

InternationalNews

“China has major load centers in its eastern region, while a significant amount of its energy resources are in the west and northwest. The expansive geography and increased demand over the last decade have prompted the build-up of UHV capacity to transmit larger amounts of power over greater distances with minimum losses,” said Claudio Facchin, president of ABB’s Power Grids division.

to begin full construction in 2018 and reach commercial operation in 2020. “We are excited about the opportunity to expand our previous activities in Maine by taking over development of the state’s largest wind power project,” said Mike Garland, President and CEO of Pattern Development.

“Ultrahigh voltage technologies are a key focus area of our Next Level strategy, and our technology advancements in this area are making it possible to increase power transmission capacity and distance to an unprecedented level with minimal transmission losses,” Facchin added.

Garland added, “Maine is an extraordinary place and we have been working for years to find a great project that can be developed in a manner that is respectful of the local community and the environment. The King Pine project would establish a strong new source of revenue for the local community and the state, create new jobs and provide clean energy.”

GE appoints Azeez Mohammed as President & CEO of Power Conversion business

SolarMax bags Caltrans LED contract beating GE and Philips

GE announced Azeez Mohammed has been appointed President & CEO of GE Energy Connections’ Power Conversion business, effective July 11, 2016. Azeez will be based at Power Conversion’s headquarters in Paris.

Solarmax LED lightingSolarMax LED, through its wholly owned subsidiary ActOne Communications, has signed a $4 million-plus contract with California Department of Transportation (Caltrans) to replace more than 29,000 aging street lights with energy-efficient LED luminaires.

Azeez comes to Power Conversion from his most recent role as President and CEO of GE’s Power Services business for Middle East and Africa. He was instrumental in leading GE’s digital transformation, helping to position the organization as the world’s foremost digital-industrial company by launching innovative customer solutions in the power and LNG sectors, GE said. Azeez has strong technological background and has held a series of roles in engineering, finance and business management in GE Power and GE Corporate worldwide. His other business management engagements include leadership positions in Latin America and the Saudi & Gulf regions. Responsible for continuing to build the Power Conversion business, which drives the electric transformation of the world’s energy infrastructure across multiple industries, Azeez will notably strengthen the capacity of Power Conversion’s service network especially in emerging markets.

SolarMax was selected from among the nine pre-qualified bidders which included bigger names like GE Lighting and Philips. Initial work will focus on public roadways and arterials across Sacramento County. ActOne, which specialized in signage and outdoor lighting systems for government and commercial markets in North and Latin America, was acquired by SolarMax Technology in 2013. “The caliber of companies competing for this opportunity speaks volumes about its significance to advancing energy conservation,” said SolarMax Technology executive vice-president Ching Liu. “Caltrans specs represent the gold standard in terms of lighting for public roadways.” “We are both grateful and humble to have been chosen to partner with the agency in their ongoing efforts to create a more energy efficient California,” Liu added.

GE’s Power Conversion business focuses on efficient advanced motor, drive and control technologies allowing customers to evolve their industrial processes for a cleaner, more productive future.

Pattern Energy Group to develop 600 MW wind project in Maine Pattern Energy Group announced it has acquired from SunEdison the development rights to the proposed 600 MW King Pine Wind power project. King Pine Wind is currently under development in northeastern Maine, located in Aroostook and Penobscot Counties. The project will utilize 174 turbines and will interconnect to the ISO New England at Emera Maine’s proposed 345 kV Hammond substation. King Pine Wind is expected

August 2016

NationalNews

NATIONALNEWS India’s smart street lighting market to touch $1.8 bn by 2022 The “smart” street lighting market in India is expected to grow at an annual rate of 42.2 per cent to reach USD 1,868.9 million by 2022 as adoption of LED and solar powered systems rises in the country, a report said. According to Infoholic Research, India’s fast-developing public infrastructure -- demand for roads and highways, smart cities and smart homes -- is driving adoption of smart street-lighting. “In India, smart street-lighting is at the nascent stage and is expected to grow rapidly over the next two years. New installation projects for smart street-lighting have been launched starting 2015 and many more projects for replacing street-lights are expected in the coming years in urban and rural areas of India,” the report said. As a result, a major share of revenues is expected to be realised from urban zones, which are expected to aggregate USD 1,304.8 million in smart street streetlighting spending by CY2022. Network components is expected to be about USD 674.6 million, while connectivity technologies and lighting lamps are estimated to touch USD 412.6 million and USD 127.3 million, respectively.

Cabinet approves revised cost of Bhutan hydel power project The Cabinet cleared the Revised Cost Estimate (RCE) of Rs 7,290.62 crore for the ongoing Hydroelectric Project (HEP) in Bhutan. “The total cost escalation for the project, at this stage, is Rs 3,512.82 crore,” said an official statement issued here after the Cabinet meeting chaired by Prime Minister Narendra Modi. “This is a sign of further strengthening of relations between India and Bhutan,” Law and IT Minister Ravi Shankar Prasad told reporters after the meeting. India had announced support for Bhutan’s infrastructure building, Prasad said, adding it will also get power from the hydel project. The project will provide surplus power to India and thus augment power availability in the country and would enable project works to proceed smoothly without interruption. The bilateral agreement to execute the Punatsangchhu-II HEP was signed between India and Bhutan in April, 2010 at the approved cost of Rs 3,777.8

crore with funding by New Delhi as 30 per cent grant and 70 per cent loan at 10 per cent interest to be paid back in 30 equated semi-annual instalments.

Piyush Goyal asks PFC, REC to focus more on funding renewable energy projects The government has asked state-run Power Finance Corp (PFC) and Rural Electrification Corp (REC) to expand focus on funding renewable energy projects. “I have asked REC and PFC for a presentation on special focus products on renewables,” the minister for power, coal, renewable energy and mines, Piyush Goyal, said. The government is contemplating a $1 billion (Rs 6700 crore) fund to finance renewable energy projects, he added. “I am waiting for the interest rates to come down further which would be the benchmark for the equity fund that we are preparing for the sector,” Goyal said. The two companies have recently reduced their interest rates to renewable energy projects. REC lends to such projects at rates between 10.5 per cent and 11.5 per cent, depending on factors like project viability and promoter’s strength. Rates on loans to conventional and hydropower projects are higher at 11.75 per cent to 13.40 per cent. The move is aimed at giving a boost to the renewable sector as well as utilising the cash that the two financiers will receive in lieu of loans given to state-run power distribution companies post implementation of the Ujwal Discom Assurance Yojana (UDAY).

CESC to sign new 150 mw PPA for Maharashtra plant CESC is close to signing a new 150 megawatt power purchase agreement for its 2 x 300 megawatt Chandrapura Thermal Power Plant in Maharashtra. The thermal power plant has already entered into 100 megawatt purchase agreements with Tangedco and another 170 megawatt agreement with Greater Noida. Once, the Chandrapura plant starts to supply power under the new PPA, this thermal station will turn profitable as its income would rise from the present level of Rs 400 crore to Rs 600 crore. CESC is also looking at acquiring stressed power assets and Goenka believes acquisition opportunities in the power sector will get cheaper over the next 12 months.

August 2016

NationalNews

“A dedicated team is working toward identifying stress assets and we have well articulated principles laid down for it. We would consider assets which are completely viable,” Goenka said. Speaking about CESC’s retail arm Spencer’s, Goenka said it was expected to achieve Rs 2200 crore turnover in the current fiscal.

PFC, REC will drop interest rates to double lending in three years State-run power financiers Power Finance Corp (PFC) and Rural Electrification Corp (REC) will slash rates to single digits when lending to renewable energy projects following the government’s order setting tough targets for the two companies to double their exposure in the next three years. In order to achieve the targets, PFC will have to sanction Rs 1.5 lakh crore loans and REC Rs 1 lakh crore by 2019. Both the companies are likely to make formal announcements very soon. In a three-hour long review meeting with Piyush Goyal, minister for power, coal, renewable energy and mines, the two companies on last Thursday were asked to grow their businesses by 100 per cent by 2019, with specific focus on renewable energy projects. The meeting with industry and the two PSUs had lot of surprise elements with REC and PFC unaware of the presence of industry while the private firms were not informed about Goyal’s presence. In early July, Goyal had asked PFC and REC for presentations on special focus on renewable energy. After industry complaints, the minister prodded the companies to take up smaller renewable projects and asked the two firms to reduce cycle time for loan evaluation to disbursal to 60-90 days for renewable energy projects that take about a year to get commissioned. The companies take about 170 days for the same which has been constantly reducing. The time has significantly dropped from 292 days in 2015-16. The ministry has also asked the two companies to form external committee consisting of sectoral experts for an independent evaluation of lending to renewable energy projects. REC sanctioned Rs 2,966 crore in 2015-16 to renewable energy projects, up four times from Rs 548 crore in 2014-15.

Solar power must to decarbonize power sector Last year, Bengaluru saw a surge in citizens trying to switch over to solar power. And, many are not just using the environment-friendly mode of power but also giving the excess back to the grid and making money.Though the state government’s solar policy hasn’t made much difference to the electricity supply companies (Escoms) financially, scientists feel the trend will change in the coming days. “Citizens have realized the cost of installing solar power generating system is not a hindrance to move forward. Let anybody (domestic/commercial or industrial consumerd) opt for solar power, why would the government worry? One has to see the long-term gain and environment

impact if solar power is tapped at higher levels and dependency on fossil fuel is reduced. The world is talking about climate change mitigation and that’s what the government should be concerned about,”Ashok Shukla, IISc professor, said. He was speaking at the two-day workshop on Smart villages and minigrid energy generation, storage and transmission technology in India for the next decade, organized by the Indian Institute of Science, Bengaluru, and the University of Cambridge, UK.

Solar power tree developed for generation of electricity The Ministry of Science and Technology has come up with a ‘Solar Power Tree’, an innovative way to generate electricity using solar power in a limited space. Developed by the Central Mechanical Engineering Research Institute (CMERI), Durgapur, a laboratory of the Council for Scientific and Industrial Research (CSIR), the Solar Power Tree model is actually designed like a tree with branches made of steel to hold the photovoltaic panel. The technology developed under the leadership of S N Maity, Chief Scientist at CMERI. “It takes less land of only 4 sq ft for a 5 kW solar power tree as compared to 400 sq ft of land required in case of the conventional solar photovoltaic layout. “It holds the panels at a higher height - thus gets more sun (by 1 hour) in a day in comparison to that of conventional layout on ground. This could also be rotated so that the photovoltaic panel get more sunlight. Thus, it is possible to harness 10-15 per cent more power” Harsh Vardhan said. It has a water sprinkler at the top for self-cleaning of panels.

India, Mexico to cooperate on solar energy, water and more India’s Department of Science and Technology (DST) and Mexico’s National Council of Science and Technology (CONACyT) have approved 14 joint projects in four focus areas of cooperation – water, seismology, solar energy and biotechnology. This was decided at a meeting between the two sides in Mexico City on July 18-19 for the 6th meeting of the Indo-Mexican Committee on Science and Technology. Evaluating ongoing actions of cooperation as well as new mechanisms to strengthen the bilateral relation, representatives from both the countries discussed the importance that network creation has signified for the growth of Mexico-India collaboration, a statement said. As part of the meeting, officials from DST and CONACyT approved the 14 joint projects. The delegations also discussed proposals to enhance the scientific and technological linkages between Indian and Mexican experts. “The full potential of science and technology cooperation between the two countries is yet to be realised,” DST’s head of international bilateral cooperation Arabinda Mitra said.

August 2016

CorporateNews

CORPORATENEWS L&T Construction wins orders valued `3598 Crores The construction arm of L&T has won orders worth `3598 crores across various business segments. The Business along with its partner, PES Engineers Private Limited, has won a major order worth `1849 crores from the Irrigation and Command Area Development Department (I&CAD), Government of Telangana. The project is for the construction of a barrage with radial gates, hoisting arrangements including formation of guide bunds on either side of the barrage across river Godavari at Medigadda, Mahadevapur in the district of Karimnagar, Telangana. Named after the historic Sri Kaleshwaram Muktheshwara Swamy Devasthanam in Kaleshwaram, this is a part of the prestigious Kaleshwaram Lift Irrigation Project. The project involves construction of a 1632m long concrete barrage with 85 vents including all mechanical works related to the barrage radial gates with rope drum hoist arrangements and construction of 2592m guide bunds on either side of the barrage. The project is scheduled to be completed in 24 months. “It is noteworthy that the Government of Telangana has initiated work on the Medigadda Barrage Project in a very systematic and remarkable manner. Christened a “Dream Project” of Telangana state, L&T is indeed proud to be part of this improvement plan to create irrigated agricultural production systems which are vital for our country’s development,” said Mr. S.N. Subrahmanyan, Deputy Managing Director and President, L&T. “This order reaffirms our expertise in building complex irrigation systems to empower the agrarian belts of the country,” he added.

NTPC to invest Rs 30,000 crore, generate 3% more electricity in FY17 State-run power producerNTPC has set a capital expenditure target of Rs 30,000 crore for the current fiscal year and said it will generate 3% more electricity over the last year. The company has signed a memorandum of understanding (MoU) with the government, as per which it will strive to generate 248 billion units during 2016-17 to be rated under the ‘excellent’ category, a statement said. Parameters related to operational efficiency, project monitoring and financial performance are also part of theMoU.

NTPC produced 241.975 billion units of electricity in 2015-16.The company has an installed capacity of 47,178 MW through 18 coal-based, seven gas-based, one hydro and nine renewable energy projects in addition to nine projects in joint venture with various entities.

Jaiprakash Power sells plant to JSW Energy in $400 mn deal Sajjan Jindal-promoted JSW Energy will acquire Jaiprakash Power Ventures’ 500 MW thermal plant at Bina in Madhya Pradesh at base enterprise value of Rs 2,700 crore. “The company has agreed to acquire the 500 MW (2X250 MW) thermal power plant located at Bina, district Sagar in Madhya Pradesh from Jaiprakash Power Ventures Ltd,” JSW Energy said in BSE filing. After JSW Energy announced purchase of Jindal Steel & Power’s Chhattisgarh thermal power plant for around Rs 6,500 crore in May, this is the second purchase of a power plant by the company. JSW Energy envisages an electricity generation capacity of 10,000 MW by 2020. JSW Energy also said that it has agreed to consider acquisition of 100 per cent equity in Minerals & Energy Swaziland (Pty) Ltd. It has prospecting rights over a coal bearing area admeasuring 8000 hectares in Swaziland. JSW proposed to acquire 100 per cent share capital of Minerals & Energy Swaziland (Pty) Ltd for a lump sum consideration of not more than USD 1.5 million. In a separate filing, Jaiprakash Power Ventures said that its board has accepted the recommendations of the committee of directors as well as the audit committee to hive off and transfer of 500 MW Bina thermal power plant as a going concern basis to its subsidiary Bina Power Supply Ltd (BPSL) through the scheme of arrangement approved by the board subject to all requisite regulatory and other approvals.

Jakson Group eyes Rs 3k crore revenue from solar business by FY18 Enthused by the government initiatives in the renewable energy sector, power solutions company Jakson Group is looking at Rs 3,000-crore revenues from its solar business alone by 2017-18, a senior company official said. “The central and state governments are taking various

August 2016

CorporateNews

initiatives to increase solar power capacities. We being a complete end-to-end solutions provider, we see this as an opportunity for growth. We are eyeing Rs 3,000 crore by FY18,” company’s vice chairman and managing director Sundeep Gupta said. The company, which is engaged into complete turnkey solutions for solar products, components and solar power plants EPC services starting from 1 kV to more than 100 MW, is looking to build EPC portfolio of more than 450 MW to be executed by the end of 2017 and have a IPP portfolio of more than 100 MM by 2017, he said. “The revenues of Rs 3,000 crore will be majorly contributed from EPC and components business. The IPP business will be contributing around 5-7 per cent of the revenue mix,” Gupta said. He further noted the company does not want to limit itself to be an EPC player or products manufacturer, but also wants to expand its portfolio as an independent power producer (IPP). “Also, we have recently ventured into rooftops segment with the developer model and we plan to aggressively ramp up this portfolio as well on build, own, operate and transfer (BOOT) model,” Gupta said.

EESL to take energy-efficiency fan scheme to five more states The distribution scheme of energy-efficient ceiling fans at lower rates is set be rolled out in five more states -- Delhi, Haryana, Maharashtra, Rajasthan and Madhya Pradesh -- in the next 2-3 months. State-run Energy Efficiency Services Ltd (EESL) is distributing these 50 watt energy-efficient ceiling fans in districts of West Godavari and Vijayawada of Andhra Pradesh and Varanasi and Kanpur of Uttar Pradesh. “We have planned to launch the scheme to distribute these energy-efficient fans in 5 states -- Delhi, Haryana, Maharashtra, Rajasthan and Madhya Pradesh -- in the next 2-3 months,” EESL Managing Director Saurabh Kumar told. “EESL has floated a tender for procuring 10 lakh energyefficient fans. We are expecting delivery of these fans from August onwards.” These fans are being provided at Rs 1,150 per unit on upfront payment and Rs 1,200 in equated monthly instalment. The EMI is adjusted against electricity bills of consumers.

commissioned at Bhavnagar Energy Company (BECL) 2x250 MW thermal power project, located at Padva village in Bhavnagar district, Gujarat, the company said in a statement. The project is equipped with CFBC technology that enables use of low quality lignite as fuel. The second unit of this project is also at an advanced stage of completion. This is the third 250 MW unit based on CFBC technology, commissioned by BHEL, with two others commissioned earlier in Tamil Nadu. CFBC boilers are highly fuel flexible and can burn a wide variety of fuels, including lignite, efficiently. These boilers are also highly environment friendly with very low pollutant emissions. Lignite reserves in the country have been estimated at around 40.9 billion tonnes. Presently, only a small percentage of the total reserves of lignite have been exploited. CFBC boilers provide an excellent opportunity for gainfully using these huge lignite reserves.

Essar Power finally turns around with Rs 39 crore net in FY16 After entering the business two decades ago, Essar Power has finally turned around with a small profit of Rs 39 crore in 2015-16.The Management is bullish about remaining healthy in current year as well and expects to close the year with over Rs 550 crore net income. “This is the first time since we entered the sector in 1997 that we have turned around. Against a net loss of Rs 684 crore in 2014-15, we closed 2015-16 with a net profit of Rs 39 crore. “And from the improvement in the margins in the first quarter of the current fiscal year, I am hopeful of a net profit of over Rs 550 crore if coal prices and other variables remain more or less stable,” Essar Power Executive Vice-chairman Sushil Maroo told a group of visiting journalists here. He said lower coal prices and other efficiency measures and an average PLF (plant load factor) of over 80 per cent, pushed up the Ebitda by a whopping 168 per cent to Rs 533 crore in 2015-16, from Rs 199 crore the previous year, while margins rose nearly threefold to 28 per cent from 11 per cent during the reporting period.

BHEL commissions 250 MW power plant in Gujarat

Coupled with this, net sales rose to Rs 1,905 crore from Rs 1,867 crore, he said. Maroo said that while the Ebitda margins jumped to 21 per cent in the June quarter from 22 per cent a year ago, income from operations grew 80 per cent to Rs 160 crore in the first quarter of this fiscal year from Rs 89 crore in the same period previous fiscal year.

State-run BHEL has commissioned another 250 MW unit based on eco-friendly Circulating Fluidized Bed Combustion (CFBC) technology, using low quality coal (lignite) as the primary fuel. The unit has been

“Another reason for the turnaround has been the reverse e-auction of coal, which helped us lower our input cost due to larger supplier base arising from increased competition,” Maroo said.

The Bureau of Energy Efficiency-rated five-star (the highest level of efficiency) 50 watt ceiling fans are available at not less than Rs 1,500 per unit in the market.

August 2016

PowerStatistics

World Electricity Generation 2015 World Electricity Generation* 2015 share of Total

Terawatt-hours

2000

2005

2010

2015

North America

4782.6

5109.9

5196.6

5242.9

-0.1%

21.8%

S. & Cent. America

804.5

945.2

1143.0

1302.4

2.1%

5.4%

Europe & Eurasia

4696.3

5141.0

5357.8

5303.4

0.6%

22.0%

Middle East

463.4

627.0

869.2

1089.3

3.5%

4.5%

Africa

438.9

562.0

667.0

759.6

2.4%

3.2%

Asia PaciďŹ c

4218.5

5973.1

8260.2

10400.0

0.9%

43.2%

Total World

15404.1

18358.1

21493.8

24097.7

0.9%

100.0%

Source - BP Statistical review 2016

Change 2015 over 2014

August 2016

PowerStatistics

Installed capacity of Power Stations May16 Capacity addition targets and achievements in the 12th plan Targets

(MW)

Type/sector

Central

State

Private

Total

Thermal

14878

13922

43540

72340

Hydro

6004

1608

3285

10897

Nuclear

5300

Total

26182

15530

46825

88537

Achievements up to May 2016, up to during 12th plan (MW) Type/sector

Central

State

Private

Total

Thermal

12638

18829

50222

81689

Hydro

2504

712

595

3811

Nuclear

1000

Total

16142

19541

50817

86500

Achievement

61.65%

125.83%

108.53%

97.70%

All India installed capacity (in MW) as on 31.05.2016 Ownership/ sector

Thermal

Nuclear

Hydro

RES * (MNRE)

GRAND TOTAL

Coal

Gas

Diesel

Total

Central

51390.0

7555.0

0.0

58945.0

5780.0

11571.0

0.0

76296.0

state

64131.0

7211.0

364.0

71706.0

0.0

28092.0

1964.0

101762.0

Private

70722.0

9743.0

555.0

81020.0

0.0

3120.0

40886.0

125026.0

186243.0 24509.0

919.0

211671.0

5780.0

42783.0

42850.0

303084.0

Sub Total

Source â&#x20AC;&#x201C; CEA

August 2016

IEEMADatabase

Rs/MT

BASIC PRICES AND INDEX NUMBERS Unit

as on 01.05.16

IRON, STEEL & STEEL PRODUCTS

OTHER RAW MATERIALS

BLOOMS(SBL) 150mmX150mm

`/MT

26629

BILLETS(SBI) 100MM

`/MT

26438

CRNGO Electrical Steel Sheets M-45, C-6 (Ex-Rsp)

`/MT

54000

CRGO ELECTRICAL STEEL SHEETS a) For Transformers of rating up to 10MVA and voltage up to 33 KV

`/MT

b) For Transformers of rating above 10MVA or voltage above 33 KV

`/MT

as on 01.05.16

Unit

Epoxy Resin CT - 5900

`/Kg

380

Phenolic Moulding Powder

`/Kg

PVC Compound - Grade CW - 22

`/MT

126750

PVC Compound Grade HR - 11

`/MT

127750

`/KLitre

51889

Transformer Oil Base Stock (TOBS)

24325

OTHER IEEMA INDEX NUMBERS

310500

NON-FERROUS METALS

IN-BUSDUCTS (Base June 2000=100) for the month March 2016

211.68

IN - BTR - CHRG (Base June 2000=100)

273.52

Electrolytic High Grade Zinc

`/MT

149100

IN - WT (Base June 2000=100

214.92

Lead (99.97%)

`/MT

142500

IN-INSLR (Base: Jan 2003 = 100)

221.40

Copper Wire Bars

`/MT

344200

Copper Wire Rods

`/MT

355131

Aluminium Ingots - EC Grade (IS 4026-1987)

`/MT

131952

Aluminuium Properzi Rods EC Grade (IS5484 1978)

`/MT

138294

Aluminium Busbar (IS 5082 1998)

`/MT

Wholesale price index number for ‘Ferrous Metals (Base 2004-05 = 100) for the month March 2016 Wholesale price index number for’ Fuel & Power (Base 2004-05 = 100) for the month March 2016

139.30

172.40

All India Average Consumer Price Index Number for Industrial Workers (Base 2001=100) March 2016

199300

268.00

# Estimated, NA: Not available

PVC Compound - Grade HR - 11 (Rs./MT)

135000

(Rs./MT)

130000

125000

June 2014 - May 2016

120000

05-16

04-16

03-16

02-16

01-16

12-15

11-15

10-15

`09-15

`08-15

`07-15

`06-15

`05-15

`04-15

`03-15

`02-15

`01-15

`12-14

`11-14

`10-14

`09-14

`08-14

`07-14

`06-14

The basic prices and indices are calculated on the basis of raw material prices, exclusive of excise/C.V. duty wherever manufactures are eligible to obtain MODVAT benefit. These basic prices and indices are for operation of IEEMA’s Price Variation Clauses for various products. Basic Price Variation Clauses, explanation of nomenclature can be obtained from IEEMA office. Every care has been taken to ensure correctness of reported prices and indices. However, no responsibility is assured for correctness. Authenticated prices and indices are separately circulated by IEEMA every month. We recommend using authenticated prices and indices only for claiming price variation.

100

August 2016

IEEMADatabase

1200

LT MOTORS

1100 1000

900 800 700 April 10 - Apr 16

600 4

7 10 1

Name of Product

7 10 1

Accounting Unit

7 10 1

Production For the Month From May 15 to Highest Annual April 2016

April 16

Production

Electric Motors* AC Motors - LT

000' KW

721

9766

11580

AC Motors - HT

000' KW

202

3597

5091

DC Motors

000' KW

394

618

000' KVA

804

11166

11261

Contactors

000' Nos.

728

8675

8527

Motor Starters

000' Nos.

144

1645

1909

Nos.

88615

657543

947878

000' Poles

14376

140000

136979

Circuit Breakers - LT

Nos.

201818

1998540

1932964

Circuit Breakers - HT

Nos.

5696

73349

72156

Custom-Build Products

Rs. Lakhs

24828

216499

265267

HRC Fuses & Overload Relays

000' Nos.

1057

14312

16875

36479

509848

507486

000' KVAR

3843

49352

53417

Distribution Transformers

000' KVA

3442

47244

46761

Power Transformers

000' KVA

7947

174546

178782

Current Transformers

000' Nos.

696

705

Voltage Transformers

Nos.

6042

96142

114488

000' Nos.

2123

29545

29317

000' MT

106

999

1250

AC Generators Switchgears*

Switch Fuse & Fuse Switch Units Miniature Circuit Breakers

Power Cables* Power Capacitors - LT & HT* Transformers

Instrument Transformers

Energy Meters* Transmission Line Towers* * Weighted Production

August 2016

101

ERDANews

Fault Current Limiter Online Fault Sensor Rings

LED Lamp

Technologies Available for Commercialization:

ERDA’s R&D and Expert Services Division: A Capability Profile In order to meet the challenges of sustainability and growth in Power Sector and to meet the expectations of Manufacturing Industries and Power Utilities, ERDA has re-organized itself under three verticals namely “Testing and Evaluation”, “R&D and Expert Services” and “Field Services”. ERDA has indigenously developed various cutting edge technologies which are either patented or have been applied for patents. These technologies, which will immensely benefit the local Indian industries, are available for commercialization. ERDA has a large number of technologies ready for commercialization, out of which technologies, which are suitable for SMEs in the country, are highlighted below:

Technologies Commercialized/Available for Commercialization Commercialized Technologies

Martensitic Low Alloy Steel Hammer Rings

Nanocrystalline Barium Titanate Powder for Electrical Applications

Nano Silver Tin Oxide Contact Material

Water Soluble Insulating Coating

ZHFR Nano Material for Cables

Improved Online Fault Sensor for Transformers

Fault Current Limiter

IE4 Induction Motors

Low Alloy Steel Hammer Rings

Fire Retardant Coating Hammer Rings

ZHFR Nano Material

Fire Retardant Coating

Hammer Rings

ZHFR Nano Material

Major Thrust Areas for R&D and Expert Services Division: uu

The R&D and Expert Services Division at ERDA is broadly classified under five strategic technology missions as given below:

Advanced Materials

Renewables

Diagnostics

Power Systems and Smart Grids

New Product Technologies

On Line Fault Sensor for Oil Filled Transformers

Fault Current Limiter for LT Switchgear & Appliances

Up gradation of Short Circuit Level of LT Air Circuit Breaker

DC MCB for 5 kA, 130 V DC

Active Power Filter

LEDs based Standalone Rechargeable Lamp

Vinyl Ester Resin from Epoxy Novolac

Major Infrastructure:

Electro less Nickel Coating for Metals/Non-metals

24 State of Art Product Evaluation Laboratories

RTV Silicone Coating

Fire Retardant Coating Compound

Engineering Analysis Center Equipped with Advanced Simulation & Design Packages

Heat Shrinkable Material

New Polymeric Material for Wiring Accessories

Sophisticated Facilities for Characterization (FT-IR, UV-Vis, SEM, EDS, XRD, Optical Microscopy, UT, Phased Array, TOFD, MPI, Eddy Current, PMI, DPT,

102

Highly qualified manpower with global exposure and expertise in various disciplines enables quality research within reasonable time and cost.

August 2016

ERDANews

Insitu Metallography, Ferrography, Thermography, Boroscopy, Fibroscopy, Videoscopy,Â etc) uu

Mechanical Tests Facilities (Tensile, Impact, Hardness, Vibration, etc.)

Thermal Analysis Instrumentation / Equipment (TGA, DSC, DTA, Long Term Aging, Fire Resistance, Pollution, etc)

Complete Electrical Evaluation Facilities (High Voltage, Resistivity, Arc/ Track Erosion Resistance, Dielectric Dissipation Factor, Electrical Strength, etc)

Pilot Scale Material Processing Facilities (Plasticorder, Extruder etc.)

the right choice! Publication Date

1st working day of the month of the issue

Cover Pages

210 GSM Art Paper *

Inside Pages

70 GSM LWC Paper *

Magazine Size

A - 4, 297 mm x 210 mm

ADVERTISEMENT TARIFF W.E.F. 1ST APRIL 2016 HEIGHT X WIDTH Cover Positions Universal Testing Machine X-Ray Diffractometer Scanning Electron Microscope

Contract Research ERDA undertaken Contract Research for Manufacturing Industries and Utilities in areas of:

RATE PER INSERTION (Rs.) Rates for 4 colours and non bleed

Front (GateFold)

260 mm x 390 mm

1,37,500

Front (GateFold) - Half

260 mm x 180 mm

88,000

Inside Front

260 mm x 180 mm

93,500

Inside Back

260 mm x 180 mm

88,000

Back

260 mm x 180 mm

93,500

260 mm x 390 mm

1,21,000

Development & Evaluation of new materials

BackFold

Design and Evaluation of new products using advanced CAE & Analysis tools

Special Positions

Optimization of Electrical Products using numerical simulation tools

Page 3 (5)

260 mm x 180 mm

71,500

Advanced Diagnostics management

Page 4 (6)

260 mm x 180 mm

60,500

Page 5 (7)

260 mm x 180 mm

66,000

Page 9 (11)

260 mm x 180 mm

55,000

Page 15 (17) & onwards each

260 mm x 180 mm

52,800

solutions

for

asset

Forthcoming Training Programs Sr. No. Programme title 1 Quality Assurance of Wiring Accessories â&#x20AC;&#x201C; Switches, Plugs and Sockets 2

Date 4-5 August 2016

Safety & Performance Evaluation of Transformers as per IS:1180 and IS:2026

30-31 August 2016

Calibration of High Voltage Parameters

8 Sept. 2016

Residual Life Assessment, Mechanical Vibration Diagnostics & Failure Investigations

22-23 September 2016

Safety & Performance Evaluation of Cables & Accessories

6-7 October 2016

High Voltage Evaluation Techniques

20-21 October 2016

Dr G S Grewal Dy. Director & Head Mechanical & Insulating Materials Division Phone: 0265-3048027, Mobile: 9978940951 E-mail: gurpreet.grewal@erda.org, Website: www.erda.org

August 2016

Rates for 4 colours and non bleed

Ordinary Positions Full Page

260 mm x 180 mm

44,000

Half Page

130 mm x 180 mm

24,750

Double Spread

260 mm x 360 mm

88,000

Insert

305 mm x 215 mm

88,000 Rates for 4 colours and non bleed

Appointments: Full Page

210 mm x 165 mm

27,500

Half Page

100 mm x 165 mm

13,200

Extra Charges: Full Bleed

: 20 % Extra

Specific position

: 20 % Extra (other than page numbers mentioned above)

Special Colour

: Rs 5,000/- for every special colour

103

Seminars&Fairs

as one of the three world class events of biomass energy along with EUBCE and Expo Biomasa.Since its establishment, APBE has attracted Kingwood, Huantai Biological Energy and Hengmei Better as its gold sponsor, silver sponsor and special sponsor respectively and over 500 renowned brands globally, providing services to nearly 100 thousands of professional visitors at home and abroad. With its rapid development and globalization strategy, the strong impact of APBE in biomass energy industry will be more and more obvious. Visit Power Week Website

7th World Renewable Energy Technology Congress Power Week Conference, Singapore Dates: 7 - 11 November, 2016 Venue: PARKROYAL on Beach Road Hotel, Singapore

Designed for the global electric power & energy industry, POWER WEEK provides 5 days of networking opportunities, consisting of 2-day conference as the focal event, 3 workshops, 2 supplementary masterclasses, multiple case studies, expert views, and valuable insights on market outlook. Meet your industry peers from electricity regulators, national power companies, renewable & IPPs, investors and suppliers - all at one platform. It would serve as an opportunity to engage with top industry players from around the globe. With the vast range of participants at this exclusive event, learn about the success strategies and pitfalls of well-known power projects, through our intense case studies.

Asia-Pacific Biomass Energy Exhibition, China Dates: 26-28 September, 2016 Venue: China - September 2016

Asia-Pacific Biomass Energy Technology & Equipment Exhibition (APBE), formerly the China Guangzhou Int’l Biomass Energy Exhibition (CNIBEE), is generally known

104

Date: 21 - 23 August, 2016 Venue: Expo & Convention Centre, Manekshaw Centre (Near IGI Airport), Delhi

The Energy And Environment Foundation with the support of Ministry of New and Renewable Energy, Government of India would be organizing the 7th World Renewable Energy Technology Congress & Expo-2016 to be held from 21st to 23rd August 2016 at Expo & Convention Centre, Manekshaw Centre (Near IGI Airport) Delhi, India. The theme of the conference is Renewable Energy: What Works. India has tremendous potential for renewable energy. With the visionary and dynamic leadership of Mr. Narendra Modi, Hon’ble Prime Minister, the Government of India and different State Governments are actively promoting the development of Renewables through Green Energy Commitment.

POWER-GEN INDIA & CENTRAL ASIA The event is renowned for providing the complete energy package with representation from leading regional and international power industry companies from across the entire power generation sector. As the region’s leading clean energy event, POWER-GEN India & Central Asia is renowned for being the premier event for meeting major players in the Indian and international power sector and learning about the latest technologies.

August 2016

ProductShowcase

HMI. The high accuracy is achieved by synchronized operations of Servo Controlled close loop Motion and processing pumps. The profile motion performs in +/0.5mm tolerance. “GluBOT” assures seam less precise gasket of any geometric profile. Drop Free Nozzle with recycling dynamic mixing valve guarantees quality mixing and dispensing with auto clean and flushing cycle. It offers user friendly software for selection of PROFILE & GASKET SIZE and other operational controls and parameters

Syska LED launches its energy saving T5 (22W) LED Tubelights

Ultra fast & manually resettable relays for power sector The new RR series relays has been developed with a very fast response time of <3 ms which makes them very appropriate for control & signalling applications where response time is a major concern.The RR relay is mainly used in power distribution and generation plants to protect the equipment by facilitating the rapid opening of circuit breakers. The RR forms part of the “protection chain” downstream within a system, where its coil reacts to a fault (TRIP) signal and through its very fast contact operation, rapidly trips the circuit breaker. In these situations the quicker the response to the fault signal, the less is the damage to the system. Available with contact rating of 8A, 250V AC output with two different contact configurations available as 4 CO (4PDT) & 3 NO (SPST-NO) + 1 CO (SPDT). Wide Coil supply voltage range - 24 - 48 - 110...125 - 220 – 250 V DC. LED indication for relay status. Two possible mounting versions- Modular, direct 35 mm rail (EN 60715) mount & Plug-in, for use with socket type 90.21High electrical life of 1 lakh cycles at rated load.

FOAM IN PLACE GASKET MACHINE “GluBOT” SPECIALITY URETHANES, offers “GluBOT” Foam in Place Gasket (FIPG) machine suitable to produce in place PU gasket for Enclosure Panel Doors, Drum lids, Industrial Lamp Reflector covers & Lamp sheds. It is 2 axis Motion Router with meter +mix + dispense processing unit of multicomponent Polyurethane materials to produce In Place Gasket. It is indigenously designed and developed for ease of operations and consistent quality performance. GluBOT is available in 3 table sizes to suit the market requirements. “GluBOT” works with fully auto logic process controlled user friendly

108

Syska India’s leading player in the LED Lighting known for its smart innovation, announces another extension to its growing range of LED portfolio, which goes synonym with its brand campaign ‘Asli Savings’, it announces 22W T5 Tube lights with the longer life span of 50,000 hours replacing the conventional florescent lamp T5 and T8.With 22W priced at Rs. 1350, the T5 series begins Rs. 600 onwards. A few simple steps with T5 can make a huge difference! Commenting on the launch of the T5 Lights, Mr. Rajesh Uttamchandani, Director SSK Group, says, “We are seeing that the customers are much more aware today about energy consumption and also are very keen in doing their bit, energy saving being the prime focus. Savings don’t only translate into actual savings on monthly electricity bills but also in a long run translates into huge return of initial investments made towards LED”.

FLIR GF306 GF306 is an optical gas imaging camera that visualizes and pinpoints SF6 and other gas emissions without the need to shut down operations. This portable, non-contact system allows you to quickly scan wide areas for leaks, so you can begin repairs sooner. It reduces revenue loss by detecting gas leaks efficiently, at a safe distance away from high-voltage areas. GF306 also accurately measures temperatures up to 500°C as well as detects gas. Integrate this camera into your facility’s predictive maintenance program for benefits beyond leak detection.

MULTIFUNCTION POWER & ENERGY MONITOR TRMS “MECO” Multifunction Power & Energy Monitor, Model: “MFM-96AF” Microcontroller based with MODBUS RTU Protocol is indigenously designed, tooled and manufactured by the R & D Department of MECO and Competitively Priced. “MFM-96AF” TRMS is 23 Parameters on 46 pages, 4 Rows of 4 Super Bright Red LED Displays, 3 Phase 3 Wire / 3 Phase 4 Wire System (User Selectable) Programmable CTR, PTR, Instrument Address, Password & MD Period are main features.

August 2016

APPOINTMENTS Mr SS UP Roy Paniappointed gets additional charge as Director Mr Directort (Technical-LWR), (Commercial), NTPC NPCIL

The Appointments Committee of the Cabinet (ACC) Distinguished Scientist S Singha Roy has been appointed has approved the proposal of the Ministry of Power as Director (Technical-LWR) of the Nuclear Power for extension of the additional charge of the post of Corporation of India Limited. He will be holding the post Director (Commercial), NTPC Ltd. assigned to Mr UP till the date of his superannuation, or until further orders. Pani, Director (HR), NTPC Ltd. for a further period of three w.e.f. 02.06.2016, till & theM), appointment Mr SKmonths Jha appointed Directoror(P MIDHANIof a regular incumbent to the post, or until further orders, The Appointments Committee of the Cabinet (ACC) has whichever is the earliest. approved the proposal of the Department of Defence Production for appointment of Mr Scharge K Jha toasthe post of Mr Avijit Ghosh gets additional Director Director (Production & Marketing) in Mishra Dhatu Nigam (Marketing), Heavy Engineering Ltd Limited (MIDHANI), Hyderabad for a Corporation period of five years. The Appointments Committee of the Cabinet (ACC) has UC approved the proposal of the Department of Heavy Mr Muktibodh appointed Director (Technical), Industry for entrusting additional charge of the post of NPCIL Director (Marketing), Heavy Engineering Corporation Distinguished UC Muktibodh hasa period been Limited (HEC) toScientist Mr Avijit Ghosh, CMD, HEC for appointed as Director (Technical) of the Nuclear Power of six months w.e.f 16.05.2016, or till the appointment of Corporation of India Limited. a regular incumbent to the post, or until further orders, whichever is the earliest.

Mr Chinmoy Gangopadhyay selected as Director (Project), PFC appointed Chairman and Managing Mr Utpal Bora Chinmoy Gangopadhyay Director, Oil India Ltd has been selected for the post

of Director (Project) in the Power Finance Corporation The Appointments Committee of the Cabinet (ACC) has Limited (PFC) by the Public Enterprises Selection Board approved the appointment of Mr Utpal Bora, ED, ONGC (PESB). to the post of Chairman and Managing Director, Oil India Limited for a period not exceeding five years with effect Arno Harris joins Azure Power’s Board of from the date of his assumption of charge of the post.

Directors Mr D Rajkumar appointed CMD, Azure Power, India’s leading solarBharat powerPetroleum company, announced appointment of Arno Harris, Former Corporationthe Limited

Founder, CEO and Chairman of Recurrent Energy, one The Appointments Committee of the Cabinet (ACC) has of North America’s leading utility-scale solar project approved the of the director. Ministry of Petroleum & developers, as proposal an independent Natural Gas for appointment of Mr D. Rajkumar, Managing Director, Bharat Petro Resources Limited (BPRL) as Govt. announces several Additional SecretaryChairman & Managing Director (CMD), Bharat Petroleum level appointments Corporation Limited (BPCL). The Appointments Committee of the Cabinet (ACC) has several Joint Additional Secretary-level Mr GKapproved Singh appointed Secretary, Ministry appointments, including that of Ms. Shalini Prasad as of Corporate Affairs Additional Secretary, Ministry of Power. Mr Gyaneshwar Kumar Singh, IP&TA&FS(1992), has Ms. an asIndian Service (IAS) been Prasad, appointed Joint Administrative Secretary in the Ministry of officer of the 1985 batch (Uttar Pradesh cadre), presently Corporate Affairs vice Manoj Kumar, IAS (HP:88). in her cadre, will succeed Mr. Badri Narain Sharma, IAS (RJ:1985) on appointed his appointment AdditionalMinistry Secretary, Mr S Kumar Joint as Secretary, Department of Revenue, Ministry of Finance.

of Commerce and Industry

An official press release said that Ms. Madhulika P Mr Sunil Kumar, IAS (UP:87), has been appointed as Sukul, IDAS (1982), presently in her cadre, has been Joint Secretary in the Department of Commerce under appointed as Additional Secretary, Department of the Ministry of Commerce and Industry.

18 110

Ms Vandana Kumar appointed Joint Secretary, Consumer Affairs, Ministry of Consumer Affairs, Food DIPPPublic Distribution vice Mr. G. Gurucharan, IAS and (KN:1982) onKumar, his appointment as Secretary Ms Vandana IDAS (1992), has been (Performance appointed as Management), Cabinet Secretariat. Joint Secretary in the Department of Industrial Policy &

Mr. Rajani under Ranjan IAS (MN:1983), Additional Promotion theRashmi, Ministry of Commerce & Industry. Secretary, Department of Commerce, Ministry of Mr OP Meena Commerce andappointed Industry Chief has Secretary, been appointed as Additional RajasthanSecretary, Ministry of Environment, Forest and Climate Change vice Mr. Hem Kumar Pande, IAS Mr OP Meena, IAS (RJ:79), has been appointed as Chief (WB:1982) on his appointment as Secretary, Department Secretary of Rajasthan. The 1979 batch IAS officer Meena of Official Language, Ministry of Home Affairs. will succeed CS Rajan who superannuated on 30.06.16. Mr. Girish Chandra Murmu, IAS (GJ:1985), Additional Secretary, Expenditure, Ministry of 1998-batchDepartment IAS officersofempanelled as JS Finance has been appointed as Additional Secretary, As many as nineteen IAS officers belonging to 1998 Department of Financial Services, Ministry of Finance batch of various cadres have been empanelled for vice Ms. Snehlata Shrivastava, IAS (MP:1982) on Joint Secretary level posts in Government of India. The her appointment as Secretary, Department of Justice, officers are: G and Dev Justice. Tripathi of Assam; Sandeep Kumar Ministry of Law Sultania of AP; S Murali krishna of Gujarat; Devesh Ms. Amita (KN:1985), Joint Kumar of HP;Prasad, BrijendraIAS Singh of Haryana; RahulSecretary, Sharma, Ministry of Water Resources, River Development and Himani Pande, Kamal Kishore Soan of Jharkhand; Rtivik Ganga Rejuvenation has been appointed as Additional Rananam pandey and Naveen Raj Singh of Karnataka; Secretary, Ministry of Environment, Forest and Climate R R Jadhav, Ranjeet Singh Deol of Maharashtra; Akash Change vice Mr. Susheel Kumar, IAS (UP:1982) on Tripathi and Mukesh Chand Gupta of MP cadre; Suresh his appointment as Secretary (Border Management), Kumar Vashist Orissa; Subir Kumar of Rajasthan; Ministry of HomeofAffairs. C Vijayaraj kumar of Tamil nadu; Anil Kumar Sagar of UP Mr. Jha, IAS (MN:1984), and Nikhilesh Neelam Meena of West Bengal.Additional Secretary, Ministry of Water Resources, River Development and Ganga has been appointed as Additional Mr SN Rejuvenation Sahai appointed Goa Chief Secretary Secretary and Financial Adviser, Department of Food and Mr SN Distribution, Sahai, IAS (AGMUT:86), has been appointed as Public Ministry of Consumer Affairs, Food the Chief Secretary of Goa with immediate effect. He and Public Distribution vice Mr. Prabhas Kumar Jha, IAS was earlieron posted as Principal as Secretary in the Finance (UP:1982) his appointment Secretary, Ministry of Department, Delhi Government. Parliamentary Affairs. Mr. U P Singh, IASappointed (OR:1985), Additional Secretary, Mr Sanjeev Gupta Addl Secretary, DIPP Ministry of Petroleum and Natural Gas as Additional Mr Sanjeev Gupta,oflAS (HP:85), presently in his Cadre, Secretary, Ministry Water Resources, River Development has Ganga been Rejuvenation appointed asvice Additional Secretary and Mr. Nikhilesh Jha. in the Department of Industrial Policy and Promotion under the Ministry of Commerce and Industry vice Shatrughna Singh, lAS (UK:83)on his repatriation to his Cadre.

VACANCIES

Bureau of Energy Efficiency Mr IJ Singh appointed Additional Secretary, Post: Secretary Ministry of New & Renewable Energy Bureau Energy (BEE)has is abeen statutory body Mr Inderof Jit Singh,Efficiency lAS (KL:85), appointed under the Ministry of Powerinhas applications as Additional Secretary theinvited Ministry of New from and the officers ofEnergy Centralby or shifting State Governments holding a post Renewable a vacant post of Director not the of rank of Deputy Secretary to the frombelow Ministry Power to Ministry of New andGovernment Renewable of India in the parent cadre for the post of of Secretary in Energy and upgrading that post to the level Additional Bureau of Energy Efficiency on deputation basis Secretary for a period of two years.

June2016 2016 August

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AprilAugust 2014 2016