- 1. Prepared by Sunil Kumar Corrtech Energy Ltd., Ahmedabad
(India) [email_address]
2. Contents
- Potential of Bagasse based power generation
- Bagasse based power plant policies
3. Continue
4. Project Description
- The proposed project is to set up bagasse based Grid connected
Advanced Cogeneration Power Plant at existing sugar mill
- Private or cooperative sugar plants has accepted the importance
of cogeneration power plant for exporting surplus power
- Gujarat as one of the leading sugar producers has great
potential for cogen plant
- The plant will generate required steam for the plant and
electricity for the plant and for exporting to the grid
5. Market & Growth Drivers
- Global Warming & depleting petroleum resources is forcing
to generate from renewable source of energy
- Energy deficit in the peak hours is to the tune of 13%
- 3% Purchase Obligation of State Utility i.e. at least 3% of
total power purchased by distribution company must come from
Renewable Energy
- Government policies and subsidies to promote Renewable
Energy
- CDM benefits makes the investment even more attractive
6. Potential of Bagasse based Co-Gen Power Plants in Gujarat
- Gujarat has 17 sugar mills in operation with crushing
capability of more than 10 million MT per year
- Bagasse production is 30% of total crushing of sugarcane which
creates a potential of 250-300 MW power generation
- So far only two sugar plants of all have gone for execution of
cogeneration power plant, rest are waiting for capable
partners
7. Bagasse based power plant policies
- Supply of biomass, in principal agreement
- Subsidy to the tune of Rs. 14 crores for 21 MW Plant
- Flat Tariff of Rs. 3.00 for 20 years
- Transmission / Wheeling charge of 5%
- Tax exemption for first 10 years
- Revenue from Carbon Trading to the tune of Rs. 7.5 crores per
annum for 21 years
- Interest subsidy to the tune of 3% from IREDA
8. Technology/ Processes 9. Suggested project
- Bagasse generated (28%): 1120 Tons / Day
- Self consumption of bagasse in the process & for power
generation of 6 MW: 1000 Tons/ Day
- Days of operation: 190 (from Oct. to March)
- Amount of bagasse required to generate 1 kwh = 2.2 kg
- Power generation possible from bagasse (during the season):
27.4 MW
10. Salient Features of the Project
- Proposed Power plant Capacity: 21 MW
- Total energy generation in a year:156.37 MU
- Net energy available for export: 94.61 MU
- Price of Bagasse: Rs. 250 per ton (special rate)
- Price of Biomass: Rs. 1200 per ton,
- Mills additional benefit from selling bagasse to us at special
rate is Rs. 2.87 cr. a year
- Mills will give us land and water at free of cost and bagasse
at special rate
- Mill we get its Power and Steam requirement for free
- The cogeneration power plant will be handed over toSugar Mill
after 20 years of it operation at free of cost
11. Project Snapshot
- Project cost: Rs. 88 Crore @ Rs. 4 crore / MW
- Long Term Loan (70 % of the project) at 13%: Rs. 58.8 cr.
- Subsidy: Rs. 14.2 crores (directly credited to lender)
- Equity Required: Rs. 26.56 cr.
- Project Completion Time: 18 months
- Debt Service Coverage Ratio: Avg. 2.05, Min. 1.72
12. Financials(without CDM benefit) Particulars Year 1 Year 2
Year 3 Year 4 Year 5 Energy available for sale94.61 MU 94.61 MU
94.61 MU 94.61 MU 94.61 MU Revenue @ Rs. 3 per unit 2838.2 lacs
2838.2 lacs 2838.2 lacs 2838.2 lacs 2838.2 lacs Fuel, O&M,
Insurance, Interest, Depr. 2309.7 lacs 2224.7 lacs 2229.5 lacs
2205.7 lacs 2184.9 lacs PAT 528.5 lacs 613.5 lacs 608.7 lacs 632.5
lacs 653.3 lacs 13. Financials(with CDM benefit) Particulars Year 1
Year 2 Year 3 Year 4 Year 5 Energy available for sale94.61 MU 94.61
MU 94.61 MU 94.61 MU 94.61 MU Revenue @ Rs. 3 per unit 3595.9 lacs
3595.9 lacs 3595.9 lacs 3595.9 lacs 3595.9 lacs Fuel, O&M,
Insurance, Interest, Depr. 2309.7 lacs 2224.7 lacs 2229.5 lacs
2205.7 lacs 2184.9 lacs PAT 1286.2 lacs 1371.2 lacs 1366.4 lacs
1390.2 lacs 1411.0 lacs 14. Financial Ratios
- Without considering CDM benefit:
- Return on Capital Employed: 12.4%
- Average Return on Equity: 24.2 % (10 years average)
- Payback Period: Less than 4 years
- Return on Capital Employed: 23.3 %
- Average Return on Equity: 52.8 % (10 years average)
- Payback Period: Less than 2 years
15. Parties Involved
- Ministry of New & Renewable Energy
- Gujarat Energy Development Agency (GEDA)
- Gujarat Electricity Regulatory Commission
- Sugar Factory Co-operative society
- Lenders: IREDA, PFC, Banks
- Thermax, Triveni, BHEL, SS Engineers, etc.
16. Risk & Risk Mitigation
- Funding: Presently liquidity crunch is there
- Fuel Supply & Prices fluctuation
- CDM Process takes long time
17. Players in the market
- Kalpataru Power Transmission Ltd.
- Amrit Envi. Tech Pvt. Ltd.
- Transend Green Power Ltd.
- Star Biomass Power Pvt. Ltd.
18. Success Stories
- As of December, 2004 cumulate to432.53 MWfrom56projects.
Additional capacity of about322.97 MWfrom36projects in various
stages of construction.
- Devenagere Sugar Co. Ltd., Karnatka
- SCM Sugar Ltd., Hyderabad
- Shree Doodhganga Krishna Sahakari Sakkare Karkhane Niyamit,
Karnatka
19. Thanks
- Shed No. 7, Survey No. 407, SP-3
- New Ahmedabad Industrial Estate
- Sarkhej Bavla Highway, Changodar
- Ahmedabad 382213, Gujarat (India)
