NOCET-2011

Welcome to Black Diamond PC

Presentation

NOCET-2011

Strategies for reducing Energy Charge Rate (ECR) to top in merit order

Presented By S ParthasarathyB SrinivasL GangeyuduJ Prashanth

COORDINATOR : K.KOSALA RAM

Conclusion

Strategies to reduce ECR

Sensitivity Analysis

RSTPS Scenario

Fixed Cost and Variable Cost

Introduction : Tariff Components

Ramagundam

TARIFF COMPONENTS

Capacity Charges (Annual Fixed Cost)

Energy Charges ( Variable Cost )

Ramagundam

RETURN ON EQUITY

INTEREST ON LOAN CAPITAL

DEPRECIATION

INTEREST ON WORKING CAPITAL

O&M COST

CAPACITY CHARGE/ FIXED COST

Ramagundam

Variable Cost/ Energy Cost

Primary + Secondary Fuel cost

On ex-power plant basis

Paid by beneficiary for SG based on Normative parameters as ECR

Ramagundam

TO RANK IN MERIT ORDER

TO GET LOAD SCHEDULE

The merit order is a ranking of power stations, based on ascending order of their variable cost of generation.

Those with the lowest ECR rates are the first ones to be brought online to meet demand, and the plants with the highest ECR rates are the last to be brought on line

The rapid expansion of intermittent renewable energy sources, like Solar and Wind resulted in backing down base load station

LEADS TO…..

HIGH VARIABLE

COSTLEADS TO….

MAX THERMAL

BAKING/URS

HUGELOSSES/ MORE OPERATIONAL COMPLEXITIES

EFFECTS OF HIGH VARIABLE COST

Ramagundam

Ramagundam

FIXED COST for stage-I & 2

FIXED COST for stage-3

Source : EEMG RSTPS data

Ramagundam

V.C for stage-I & 2= {(2369-0.254*9425)*(2904.24/3592)+ (0.254*43437.77)}* 100/(100-7.0)

V.C for stage-3 = {(2357-0.254*9795)*(2904.24/3588)+ (0.254*43437.77)}* 100/(100-5.56)

Source : EEMG RSTPS data

Ramagundam

0.000

0.500

1.000

1.500

2.000

2.500

3.000

Apr'15 May'15 Jun'15 Jul'15 Aug'15 Sep'15 Oct'15 Nov'15 Dec'15 Jan'16 Feb'16 Mar'16 apr'16 May'16 Jun-16 Jul-16

Stage-1&2 Stage-3

ECR Trend of RSTPS

Source : EEMG RSTPS data

Ramagundam

0.0

200.0

400.0

600.0

800.0

1000.0

1200.0

1400.0

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

URS FY 2014-15 URS FY 2015-16

Source : EEMG RSTPS data

Month Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb MarURS FY 2014-15

in MU0.76 27.56 46.16 73.11 116.49 147.88 176.22 201.28 261.22 355.27 398.72 411.96

URS FY 2015-16 in MU

104.94 257.50 492.92 545.59 552.24 581.09 619.39 750.43 864.14 1071.10 1172.13 1199.46

191 % increase

URS Trend cumulative comparisionRamagundam

Major Reasons for increase in URS

Increase in Renewable Energy sources.

Rapid capacity addition

Competitive Market

Stringent CERC Regulations

Ramagundam

Southern Grid Installed capacity Comparision( 2012 Vs 2016)

Source : SRLDC

Installed capacity as on 31.07.2012

37 % increase in

installed capacity with in 4 years.

Ramagundam

RSTPS Beneficieries RSTPS St.I & II (U-1 to U-6) RSTPS St.III (U-7)

Installed Capacity @ 2100 500APTRANSCO 14.51 15.28KPTCL 22.68 23.80KSEB 11.67 12.20TNEB 25.24 26.53TELANGANA 17.03 17.93PONDY 4.00 4.26GOA 4.76 0.00HVDC 0.11 0.00TOTAL 100.00 100.00

RSTPS POWER ALLOCATION W.E.F 06.11.2015

Ramagundam

RSTPS MERIT ORDER AUG-2016

Ramagundam

RSTPS MERIT ORDER AUG-2016

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OUR TARGET IS TO TOP IN MERIT ORDER

In the present scenario, toremain in the competitivemarket, our aim shouldalways be to top in the meritorder, so that we get fullschedules.

Profit can be maximized .

Ramagundam

SENSITIVITY ANALYSIS

BRAINSTORMING

LITERATURE REVIEW & CASE

STUDIES

Ramagundam

Source : EEMG RSTPS data

0

5

10

15

20

25

25 50 75 100 125 150 175 200 225 250

1.94.1

6.38.4

10.612.8

15.017.1

19.321.5

Variable cost saving(Paisa/Kwh) Vs improving Heat rate

Ramagundam

Source : EEMG RSTPS data

02468

10121416

30 60 90 120 150 180 210 240 270 300

1.73.3

5.06.6

8.29.8

11.312.9

14.315.8

Reduction of Variable Cost Vs Improving of GCV

Improving GCV (Kcal/Kg)

Varia

ble

cost

savi

ng(P

aisa

/Kw

h)

Ramagundam

Source : EEMG RSTPS data

0

5

10

15

20 40 60 80 100 120 140 160 180 200

1.42.8

4.25.6

7.08.5

9.911.3

12.714.1

Variable cost saving(Paisa/Kwh) Vs reduction in coal cost

Reducing coal cost (Rs/MT)

Varia

ble

cost

savi

ng(P

aisa

/Kw

h)

Ramagundam

Source : EEMG RSTPS data

0

1

1

2

2

3

0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00

0.20.4

0.60.9

1.11.3

1.51.7

1.92.2

Variable cost saving(Paisa/Kwh) Vs reduction in APC

Reducing APC (in %))

Varia

ble

cost

savi

ng(P

aisa

/Kw

h)

Ramagundam

0

0

0

1

1

0.05 0.10 0.15 0.20

0.20.3

0.5

0.7

Variable cost saving(Paisa/Kwh) Vs reducing SOC

Reducing SOC (ml/Kwh)

Varia

ble

cost

savi

ng(P

aisa

/Kw

h)

Source : EEMG RSTPS data

Ramagundam

1900

1950

2000

2050

2100

2150

2200

2250

2300

2350

2400

300 325 350 375 400 425 450 475 500

Kcal

/kw

h

Kcal

/kw

h

Load (MW)

Turbine Heat Rate

Cycle Heat Rate

Source : EEMG RSTPS data 500 MW units

Ramagundam

2000

2100

2200

2300

2400

2500

2600

208161

143

2433 25052597

Load Vs Heat Rate

Heat Rate

Source: EEMG- NTPC RSTPS Case Study 200 MW

Ramagundam

6.00

7.00

8.00

9.00

10.00

11.00

208161

143

8.499.53 10.26

APC

APC

Source: EEMG- NTPC RSTPS case study 200 MW

Ramagundam

Fuel cost and Fuel GCV is having more sensitivity compared to Heat Rate and APC

What are the New

technologies to reduce variable

cost of generation??

How to minimize Heat

rate??

How to reduce APC ??

How to reduce fuel cost ??

Ramagundam

Reducing variable

cost

Reducing Coal Cost

Ramagundam

Rationalizing Coal linkage

Reducing Transportation cost-using NTPC rakes, reducing MGR expenses

Reducing Demurrage Charges

Coal conveyor technology

Ramagundam

Mahanadi Coalfields Limited

(MCL) ( 5LMT) Singareni colleriesCompany Ltd.

Case Study Of RSTPS REDUCING FUEL COST

0.73 Rs/Unit

DUE TO COAL MINE SWAPPING FROM

VARIABLE COST OF GENERATION REDUCED

South Eastern Coal (SECL)

( 5LMT)Singareni Colleries

Company Ltd..

0.50 Rs/Unit

0.72 Rs/Unit 0.50

Rs/Unit

22.5Paisa/ Unit

Ramagundam

Case Study Of RSTPS REDUCING FUEL COST

50 paise/Unit

60 paise/Unit

OPTIMISING FREIGHT RAKE BY TRIPARTITE AGREEMENT

VARIABLE COST OF GENERATION REDUCED

Reduced Freight Charge

NTPC

Railway

SCCL

Ramagundam

Ramagundam

REDUCING FUEL COSTGETTING COAL FROM SOURCES WITH LOW LANDED COST

Ramagundam

Sl No Source ROUTE Station GradeGCV

(Mid Value)(Kcal/Kg)

Coal-Notified Price

( Rs/MT)

Coal Value( Rs/MT)

Railway freight /

MGR price(Rs/MT)

Total Landed price

(RS/MT)

Landed Price (Rs) /1000

Kcal

1 SCCL - FSA OC 3-GDK MGR-RLY RDM G13 3,550 800.00 1,732.05 49.38 1,781.43 0.50

2 SCCL - FSA OC 3-GDK MGR RDM G13 3,550 800.00 1,732.05 53.10 1,785.15 0.50

3 SCCL – MOU OC 3-GDK MGR-RLY RDM G13 3,550 960.00 1,943.04 49.38 1,992.42 0.56

4 SCCL – MOU OC 3 MGR RDM G13 3,550 960.00 1,943.04 53.10 1,996.14 0.56

5 SCCL - FSA OC 3 MGR RDM G11 4,150 1,300.00 2,391.39 53.10 2,444.49 0.59

6 SCCL- FSA OC 3-GDK MGR-RLY RDM G10 4,450 1,610.00 2,800.18 49.38 2,849.56 0.64

7 SCCL- FSA OC 1 MGR RDM G10 4,450 1,610.00 2,800.18 53.10 2,853.28 0.64

8 SCCL- FSA Mandamarri RLY RDM G11 4,150 1,300.00 2,430.34 248.26 2,678.60 0.65

9 SCCL- FSA Kothagudem RLY RDM G13 3,550 800.00 1,883.86 450.00 2,333.86 0.66

10 SCCL - MoU OC 3 MGR RDM G11 4,150 1,560.00 2,734.25 53.10 2,787.35 0.67

11SCCL- FSA Mancherial (SRP) RLY RDM G9 4,750 1,730.00 3,073.46 248.26 3,321.72 0.70

12 SCCL- MoU Kothagudem RLY RDM G13 3,550 960.00 2,094.86 450.00 2,544.86 0.72

13 SCCL- MoU Mandamarri RLY RDM G11 4,150 1,560.00 2,773.21 248.26 3,021.47 0.73

14 SCCL- MoU OC 3-GDK MGR-RLY RDM G10 4,450 1,932.00 3,224.80 49.38 3,274.18 0.74

15 SCCL- MoU OC 1 MGR RDM G10 4,450 1,932.00 3,224.80 53.10 3,277.90 0.74

16 SCCL- FSA Manuguru RLY RDM G9 4,750 1,730.00 2,997.38 519.00 3,516.38 0.74

17SCCL- MoU Mancherial (SRP) RLY RDM G9 4,750 2,076.00 3,529.73 248.26 3,777.99 0.80

18 Imported coal RLY RDM G6 5,700 3,077.37 3,588.18 1,051.16 4,639.34 0.81

19 SCCL- MoU Manuguru RLY RDM G9 4,750 2,076.00 3,453.66 519.00 3,972.66 0.84

20 SCCL- FSA Manuguru RLY RDM G7 5,350 2,600.00 4,144.63 519.00 4,663.63 0.87

21 SCCL- MoU Manuguru RLY RDM G7 5,350 3,120.00 4,830.35 519.00 5,349.35 1.00

22 SCCL- FSA OC 2 MGR RDM G10 4,450 1,610.00 4,519.16 53.10 4,572.26 1.03

Landed price comaprison SCCL coal vis-a-vis CIL/Imported coal