BCML II Enclosures

CDM-PDD for BCML Haidergarh Bagasse Cogeneration Project

BCML - II ENCLOSURES

Classified - Confidential Page 1 of 1

ENCLOSURE – I

CURRENT POWER SCENARIO & POLICIES




ENCLOSURE - I : CURRENT POWER SCENARIO & POLICIES

Power generation is the harbinger of economic growth and industrial development of any country.

Although it is a life stream of country like India, it contributes to the GHG emissions as the fossil

fuels have major share in total power generation. This section covers the current power situation in

India and Uttar Pradesh (UP), development of renewable energy sources, central and state policies,

future energy projections, current power delivery system etc.

1.0 National Power Scenario

Indian power sector is facing challenges and despite significant growth in generation over

the years, it has been suffering from shortages and supply constraints. Energy and peak

load shortages were 7.8 % and 13 % respectively in the year 2000-01. The per capita

electricity consumption in India is about 400 kWh/year, which is significantly lower than

the world average of around 2,100 kWh/year. As GDP growth accelerates to an ambitious 8

to 10 %, the shortage of power will become more severe (source: Reference No. 27)

The power situation in India is characterised by demand in excess of supply, high

Transmission and Distribution (T&D) losses, low Plant Load Factor (PLF), peak demand

and energy shortages, poor financial health of the State Electricity Boards (SEBs) and

severe resource crunch. The power sector reforms in the country and consequent

privatisation of generation, T & D have been sluggish, due to complexities involved. The

Ministry of Power has been making continuous efforts for promoting reduction of T&D

loss and re-structuring of SEBs. The electricity regulatory commissions, recently formed as

a part of the reforms, have been still learning to exercise adequate control on power tariffs.

With reference to above power and energy scenario, Ministry of Power (MoP) and

Ministry of Non-conventional Energy Sources (MNES), Government of India, has been

promoting viable renewable energy technologies including wind, small hydro and biomass

power, energy conservation, demand side management etc. MNES has been promoting

various sources of renewable energy since 1990.

Wide spread need of power generation has created the need for a cheap and readily

available commercial fuel for generating electricity at low cost. Coal was the first to be

selected in India as a commercial fuel in early thermal power stations and is still king of the

power market.

Central Electricity Authority (CEA) has initially projected a shortfall of 1,50,000 MW in

15 years and therefore, a capacity addition target of 10,000 MW every year, the actual

capacity addition has been far short of targets. The CEA has recently revised the capacity

addition target to 1,00,000 MW from earlier target. This implies an annual addition of

8,500 MW as against earlier fixed of 10,000 MW. Capacity addition in the last five years

including financial year 2000 was average 3,000 MW per year. Out of the total capacity

added during last five years, 49% was added by the states and balance by central plants,




excluding only 4% contributed by private sector. This indicates that, the states have been

the largest contributors to incremental capacity.

The sustained economic development in India has created a critical need for additional

power generation capacity. To augment the existing installed capacity of about 101,154

MW (year 2000-01), the Government of India has encouraged private sector participation

in the power generation.

To assess the all India capacity requirements by the end of eleventh plan to meet the

demand projected by 15th Electric Power Survey (EPS) report, Central Electricity Authority

(CEA) carried out planning studies using updated version of Integrated System Plan

(ISPLAN) model, which optimises generation capacity additions in an integrated manner

with power transmission and fuel transportation. The studies are based on updated data

base, keeping in view the development in power sector in recent past, likely achievement

during 9th Plan, the perspective plans prepared by Central Power Units (CPUs) and also

latest status of Independent Power Producers (IPP) and state sector projects.

The CEA report “Power on Demand By 2012” has indicated that the level of satisfaction

would be 85% only with the identified installed capacity of about 2,10,000 MW by the end

of eleventh Plan (2011-12), leaving a gap of about 22,600 MW in demand. Additional

projects to the tune of 30, 000 MW capacity need to be identified to meet the full peaking

requirements. On the other hand, if the demand in terms of peak as well as energy is

reduced by 15%, then the present level of identified projects including projects covered in

CPUs perspective plan is found to be adequate. Hence, energy conservation activities and

power generation from renewable sources have an important role in management of

demand and energy requirement.

Out of total existing generation capacity, nearly 72% is contributed by thermal power. With

a need for sustainable economic growth, the Government of India, through the Ministry of

Non-Conventional Energy Sources (MNES), is encouraging and catalysing the growth of

renewable energy based power including biomass, wind, hydro, solar photo-voltaic etc. It

is expected that a judicious mix of centralised fossil fuel power plants and decentralised

renewable energy based power plants will lead to an environmentally friendly

augmentation of the power sector in India. In addition to this central government and all

the State Governments are encouraging the Energy conservation activities in all the sectors

like industrial, domestic, commercial, agricultural etc. Implementation of electrical energy

conservation projects / programmes at various sectors will also help in reduction of peak

demand along with the financial gains through reduction of energy consumption.

2.0 Power From Renewable Energy Sources

Renewable energy technologies based on the inexhaustible resources of sunlight, wind,

water and biomass are considered to offer sustainable energy alternatives to a world beset




by serious environmental problems and volatile fossil fuel politics. An increasing share of

global energy needs is expected to be met by renewable in the years ahead. (Source :

Reference No. 28)

India is abundantly endowed with renewable energy resources viz. solar energy,

wind energy, biomass and small hydro, widely distributed across the country, and

can be utilised through commercially viable technologies to generate power.

Increasing use of these sources will also be instrumental in simultaneously

achieving environmental objectives like reduction of GHG emission. Details of

renewable energy potential and achievement as on December 31, 2001 is presented

in Table-2.1.

Table – 2.1 : Renewable Energy Potential & Achievement

Sr.No. Source / Technologies Approximate Potential Achievement

1. Wind Energy 45,000 MW 1,267 MW

2. Small Hydro (up to 25 MW) 15,000 MW 1,341 MW

3. Biomass / Bagasse

Co-generation

19,500 MW 273 MW

4. Solar PV 20 MW / km2

47 MW

5. Urban & Industrial Waste 1,700 MW 15.15 MW

6. Biogass Plants 120 Millions 3.182 Millions

Source: Background Paper of International Conference and Business Meet on ‘Non Fossil Fuel

Generation’ organized jointly by CII, NHPC & NPC of India Ltd

From above table, around 3000 MW (3 % of total installed capacity) capacity of

Renewable Energy (RE) projects have been installed in the country. India is planning to

add about 12,000 MW power generating capacity from renewable by the end of 11 th plan

(2011-2012). Almost half of it is expected to come from wind, 3,500 MW from biomass

and 2,000 MW from small hydro.

As per CEA’s Fourth National Power Plan, anticipated capacity additions from Non-

Conventional energy sources is presented in following Table-2.2

Table – 2.2 : Capacity additions from non-conventional energy sources

Sr.No. Source of Energy Programme capacity in MW

9th

plan 10th

plan 11th

plan

1. Wind Power 3,000 6,000 9,000

2. Small Hydro 1,000 2,000 3,000

3. Biomass Cogeneration 1,000 2,000 3,000

4. Solar Thermal Power 300 600 900




Sr.No. Source of Energy Programme capacity in MW

9th

plan 10th

plan 11th

plan

5. Solar Photovoltaic 200 400 600

6. Bio energy / Biomass Power 1,000 2,000 3,000

TOTAL 6,500 13,000 19,500

Source: CEA report on fourth national power plan

Although, India is implementing one of the world’s largest programmes on renewable

energy, the present output from “renewable”, in the national energy scene, is less than

two per cent of the installed capacity, it has not matured into a major alternative. The

major barriers and bottlenecks for development of renewable energy includes following:

High captive investment and low commercial viability

Lack of adequate capital at affordable cost

Limited access to financial resources and high cost of finance

Lack of awareness (e.g. bagasse is available with farmers with no exposure of power

sector economics)

Lack of large scale production facilities

If the projects get the financial benefit under flexibility mechanisms of Kyoto Protocol then

above barriers can be overcome to some extent.

3.0 Potential Of Sugar Cogeneration In India1

Cogen power plants at sugar mills in India are getting stabilised / commercialised with

pressure / temperature configurations up to 87 kg/ cm 2 and 5100C. Internationally, in

countries like Mauritius, Re Union Island and USA, bagasse co-generation plants with high

pressure of more than 80 kg/cm2 and modern technology are established and exporting

power to grid. Maximum pressure configuration employed internationally, is 105 kg/cm 2 in

a sugar mill at Okilanda, USA. (Source: Reference No.25)

The potential for power generation from bagasse-based cogeneration at sugar industries

with implementation of high-pressure configurations above 60 kg/cm 2 is around 4,000

MW. Based on separate studies conducted by MNES / IREDA and Tata Energy Research

Institute (TERI) break up of potential for cogeneration from sugar mills of major sugar

producing states, is given in the following table:

1 Sources: 1) CII Investor Guide Book on cogeneration

2) Background Paper of International Conference and Business Meet on ‘Non Fossil Fuel Generation’

organized jointly by CII, NHPC & NPC of India Ltd




Table – 3.3 : Cogeneration Potential from Sugar Mills

State Potential in MW

Maharashtra 1,250

Uttar Pradesh 1,350

Tamil Nadu 300

Karnataka 200

Andhra Pradesh 300

Bihar 150

Gujarat 150

Punjab 125

Haryana 100

Madhya Pradesh 50

Others 25

Total 4,000

Source: All India Bagasse Co-generation Study of IREDA, taken from CII

investor guidebook for bagasse based cogeneration

Considering above potential for cogeneration in India, the major stakeholders like, sugar

industry and policy makers started the developmental efforts in the early eighties.

In spite of having huge potential, the actual achievements till date are very poor due to

major barriers related to initial capital, low cost financing, state and central regulatory

policies and other barriers related to technology, social factors, specialised experience etc.

In the above perspective BCML has taken commendable step togo ahead with installation

of two bagasse based co-generation units with export of power to the state grid; one at

Haidergarh and another one at Balrampur.




4.0 UP’s Current Delivery System2

Indian power grid system is divided into five regions namely Northern, North Eastern,

Eastern, and Southern and Western Regions. The state of Uttar Pradesh is situated in the

Northern part of India and forms a major constituent of northern region. These regions

have independent load dispatch centres that manage the flow of power in their jurisdiction.

At present, the inter-regional flows of power are quite low. Hence, each region may be

considered as an island due to which the power generated in each region is distributed in

their jurisdiction only.

The Northern Region consists of Delhi, Himachal Pradesh, Punjab, Uttar Pradesh, Haryana,

Jammu & Kashmir, Rajasthan and newly formed Uttaranchal State. Each state will have

their own power generation plants (State Government owned) managed by respective State

Electricity Boards / Corporations. In Uttar Pradesh, power transmission and distribution is

managed by Uttar Pradesh Power Corporation Ltd.(UPPCL), Lucknow. State governments

thermal power generation plants are managed by the state authority Uttar Pradesh Rajya

Utpadan Nigam (UPRUN) and Hydro power plants by the state authority Uttar Pradesh Jal

Vidut Nigam (UPJVN).

In addition to the state govt. owned power generation plants, there are private owned power

generation plants exporting power to UPPCL and central government (Government of

India) owned power generation plants managed by Government of India Enterprises like

National Thermal Power Corporation Ltd., Nuclear Power Corporation Ltd., National

Hydro Electric Power Corporation Ltd. etc. Power generated by all generation units is

being fed to the grid (Northern Grid), which is accessible to all states forming part of the

northern grid. Power mix may be thermal, hydro, wind, nuclear. In India, nuclear power

generation is allowed only by central sector organisations.

Power generated by state owned generation units and private owned generation units would

be consumed totally by respective states. But the power generated by central sector

generation plants will be shared by all states forming part of the grid in fixed proportion.

2 Sources: 1) UPPCL Statistics at a Glance-March 2002 and other available UPPCL documents.

2) Website of Uttar Pradesh Power Corporation Limited (UPPCL)- http://www.uppcl.org




5.0 Uttar Pradesh Power Scenario

5.1 Present Fuel Mix in Electricity Generation and Power Deficit

As mentioned above UPPCL distribution network gets major portion of thermal and hydro

power from UPRVUN and UPJVN respectively along with the central sector generation

plants and a small portion from private sector power generation /cogeneration plants and

ultimately distributed to the consumer / end users.

Source wise present installed capacity and power generation in UP shows that the share of

UPPCL coal based power projects is 73 % of total UPPCL installed capacity and 77% of

total generation capacity in the state. Detailed break-up is as under.

Table - 5.1.1: Installed Capacity and Power Generation in UP

Sr. No. Energy Source Installed Capacity

in MW

Net Generation in

MkWh

A. UPPCL

1. Thermal (coal) 4,092 17,565

2. Hydro 1,494.35 5,232

3. Micro Hydel 26.43 29

4. Total (UPPCL) 5,612.78 22,826

B. U.P’s share in Central Schemes

(coal/gas/hydro/nuclear)

3,166.49 18,087.41

C. Import from other sources (incl.

Renewable)

– 156.80

Total 8,844.27 41,069.80

Source: UPPCL statistics at a glance-March 2002 and other available documents

Above table shows that present share of Uttar Pradesh in central power generating schemes

is quite substantial i.e 35% in installed capacity and 44% in generation. Import from other

sources includes power generation in UP by private sector projects, renewable energy

projects (bagasse / biomass based cogenerations) etc.

Last five year data analysis of power data of UP state shows that installed capacity is

dominated by thermal source with share of more than 75 %. Table 5.1.2 shows source-wise

installed capacity peak demand variation during last five years (UPPCL Statistics at a

Glance). In the last ten years total installed capacity increased to 8,383.93 MW (year 1999-

2000) from 7,038.75 MW (year 1990-91) with average increase of 135 MW or 1.91% per

year. Table 5.1.2 also shows that the rise in peak demand met by UPPCL is 1,517 MW

(average 3.4%) in the same period. Further analysis also shows that the actual peak demand

met will be around 70% of total installed capacity.




Table 5.1.2 : Source wise Installed Generation Capacity and Peak Demand met

Years Installed Generation Capacity (MW)

(Share in % )

Actual Peak

Demand met

% of

Total

MW

Thermal Hydro Central Total

1999-00 4,532 (75.11) 1,501.44 (24.89) 2,350.49 8,383.93 5,960 71.09

1998-99 4,564 (75.25) 1,501.44 (24.75) 2,350.19 8,234.63 5,708 69.31

1997-98 4,544 (75.12) 1,504.75 (24.88) 1,961.0 8,009.75 5,666 70.73

1996-97 4,544 (75.12) 1,504.75 (24.88) 2,278.0 8,326.75 5,391 64.73

1995-96 4,544 (75.12) 1,504.75 (24.88) 2,433.0 8,481.75 5,420 63.90

1994-95 4,544 (75.12) 1,504.75 (27.1) 2,562 8,610.75 5,296 61.50

1993-94 4,054 (72.9) 1,504.75 (27.1) 2,496 8,054.75 5,055 62.75

1992-93 3,554 (71.3) 1,504.75 (29.7) 2,270 7,328.75 4,955 67.61

1991-92 3,554 (71.3) 1,504.75 (29.7) 2,152 7,210.75 4,750 65.87

1990-91 3,554 (71.3) 1,432.75 (28.7) 1,632 7,038.75 4,443 63.12

Source: UPPCL statistics at a glance-March 2002 and other available documents

With respect to present power scenario, following Table-5.1.3 shows an actual power demand and

energy requirement, deficit in energy availability, deficit in peak load. On per day basis energy

shortage is about 13.56 % and peak load shortage is about 24.50 %. These actual figures gives fair

idea about the present situation of overall UP power sector. The data furnished in the Table 5.1.3 is

based on the published Information as per UPPCL document Statistics at a Glance: 2000-01.

Table – 5.1.3 : Energy and Peak Demand Requirements, Availability & Shortages

Particulars Figures, per day

Energy Requirement,

Million Units (MU)

140.79

Energy Availability, in MU 123.97

Energy Shortage in MU ( %) 16.82 (13.56 %)

Peak Demand Registered, MW 7,138

Peak Demand Met, MW 5,733

Peak Demand Shortage, MW (%) 1,404 (24.50 %)

Source: UPPCL Statistics at a Glance March 2002




Future Energy Requirement and Peak Demand Projections by CEA 16 th Power Survey is as under

(Table- 5.1.4).

Table 5.1.4 : Future Projections of Energy Requirement (as per CEA)

Sr.No Year Energy Requirement in

GWh(rise)

Peak Load

In MW (rise)

1 2001-02 50,087 8,018

2 2002-03 53,671 (7.15 %) 8,601 (7.27 %)

3 2003-04 57,531(7.19 %) 9,230 (7.31 %)

4 2004-05 61,681(7.21 %) 9,907 (7.33 %)

Source: CEA 16th

Power Survey

The expected rise in Energy requirement is about 7.18 % and demand of power is about 7.30 % per

annum and no other mega projects are expected to be coming up in the state, the demand-supply

gap is expected to be more widen.

5.2 Plans of Capacity Additions

Considering the present scenario of shortage of energy and power, capacity additions

planned for Uttar Pradesh by CEA and UPPCL in the three 5 year plans are presented in

Table – 5.2.1.

Table – 5.2.1 : CEA and UPPCL Plans

Sr.

No.

Ref . Document / Plan Thermal

MW

Hydro

MW

Total

MW

A As per CEA planning

1. Ninth 5 year Plan 4,580 42 4,622

2. Tenth 5 year plan 4,250 2,776 7,026

3. Eleventh 5 year plan 500 3,867 4,367

B. As per UPPCL planning

1. Ninth 5 year Plan NA NA NA

2. Tenth 5 year plan 2,050 727.6 2,777.6

3. Eleventh 5 year plan NA NA NA

Reference: Fourth national power plan - 1997-2012, CEA document & UPPCL letter to Chief

Secretary (Energy), dated August 28, 2001).

The above table shows as against the requirement of 7,026 MW of capacity additions only

2,777.6 MW is planned to be added by UPPCL (this excludes the additions by centre) This




huge gap between capacity addition plans of central Government and state Government

will lead to create a huge shortfall of demand and supply situation of the state. To reduce

this, UP government is encouraging the private participation in power generation sector,

however, yet the due success is to be achieved.

As per Fifteenth Electric Power Survey of India by CEA, the energy requirements and peak

load demand projections for UP are as under (Table – 5.2.2).

Table – 5.2.2 : Five Year Plans (FYPs) for UP

Sr.No Five Year Plan Energy requirement

(GWh)

Peak Load Demand(MW)

1. Ninth 5 year Plan 61,066 11,280

2. Tenth 5 year plan 86,452 (25,386) 15,841(4,561)

3. Eleventh 5 year plan 1,21,253 (34,801) 22,041(6,200)

Figures in bracket indicates capacity additions rise with respect to previous FYP

Above figures of Five Year Plans (FYPs) show that the additional power generation

required in tenth and eleventh plan is 25,386 GWh and 34801 GWh respectively. The rise

in generation predicted is around 45.57 % and 40.25% in tenth and eleventh plan

respectively as compared to the previous FYP. Also the rise predicted in peak demand is

around 40.43 % and 39.13 % in tenth and eleventh plan respectively as compared to the

previous FYP.

5.3 Private Sector Participation

Private sector participation is currently still very limited in India. When the Indian power

sector opened up in 1991, more then 250 Memorandum of Understanding (MoUs) were

submitted by Independent Power Producers (IPPs). However, only few IPPs have been set

up since then.

Total IPP capacity amounts to about 6,000 MW, compared to a total installed capacity in

India of 103,000 MW (Indian Infrastructure May 2002). Only few IPPs are listed for the

state of UP. In addition to the poor financial condition of the SEBs, IPPs faces additional

challenges:

Doubt about sanctity of contracts (PPA)

Uncertainty on tariff stability

Difficulty in obtaining funding from banks/financial institutions

Discouragement by the State Government of third party sales/captive use.




ENCLOSURE – II

BASELINE STUDY REPORT




ENCLOSURE - II : BASELINE STUDY REPORT

IDENTIFICATION OF THE MOST LIKELY BASELINE AND THE ASSOCIATED GHG

EMISSIONS

1.0 Selection of Baseline Methodology

The Indian economy is in transition from a planned economy to a market based economy.

For the coming years the market is still expected to operate imperfectly. The growth rate of

the infrastructure is inadequate and there is a substantial shortfall in planed projections.

Therefore a scenario analysis is the best to be adopted as the baseline methodology for this

project.

At present details of approved methodology for baseline calculations for CDM projects of

capacity more than 15 MW is not available on the UNFCCC website3. However, reference

has been taken from OECD and IEA information document regarding baseline

methodology (Reference # 31) and UNFCC document “Indicative simplified baseline and

monitoring methodologies for selected small scale (CDM projects less than 15 MW)

project activity categories” (Reference # 05).

As per the Kyoto Protocol (KP)4 baseline should be in accordance with the additionality

criteria of article 12, paragraph 5(c), which states that the project activity must reduce

emissions that are additional to any that, would occur in the absence of the certified project

activity.

With reference to above, a new baseline methodology has been developed as mentioned in

section ‘B’of the CDM-PDD report. Following two baseline approaches/scenarios have

been considered for methodology development.

1. Combined Margin scenario with use of actual available information / data of past

and years and base year.

2. Modified Combined Margin scenario with use of futuristic projections for credit

period.

3 Source: Indicative Simplified baseline and monitoring methodologies for selected small-scale CDM project activity

categories. 4 Source: Kyoto Protocol to the UNFCCC agreed by Conference of Parties (CP)




2.0 Application of methodology for estimation of GHG emissions

UPPCL grid receives power generated by state, central and private power plants based on

coal, gas, hydro, nuclear and small portion of renewable sources like bagasse / biomass,

solid waste, solar etc. The present project is a bagasse based electricity generation project

supplying power to UPPCL grid. For Scenario I, the reference case for the baseline is the

generation mix of the base year along with the recently built projects and for scenario II,

the baseline reference case is the generation mix of particular year, considering projected

future capacity additions to the UPPCL. Future capacity addition in the UPPCL grid is to

reduce the shortage of energy and peak demand. The following basis was used at arriving

at the reference baseline.

o Existing mix of power generation by UPPCL is considered for base year reference

o The future mix of generation is considered as future baseline, since UPPCL grid has a

power deficit. To meet the present deficit and to enable future growth, additional

capacity is required.

o The fuel and technology choice for additional capacity depends on a number of factors

like availability of finance, location of the project site, the availability of fuel, the

availability of infrastructure to support the project, the policy framework for

investment in power and renewable energy projects, the purchase of fuel, the sale of

power etc. Therefore, a number of market and non-market factors that control the

choice of fuel-technology combination.

2.1 Baseline Selection

The first step in determining the baseline is the selection of the reference region. As

described in Enlosure -I, the state electricity grid (UPPCL) is part of the northern grid with

similar resource base of recent projects. In line with the UP state government policy,

project promoter has signed a Power Purchase Agreement (PPA) with Uttar Pradesh state

grid (UPPCL) and proposes to export surplus power to UPPCL. In view of above,Uttar

Pradesh state grid (UPPCL) is considered as a reference for baseline calculations.

Scenario I - Baseline is based on the actual generation mix data of UPPCL.

Scenario II - The baseline is based on the likely new project portfolio during the crediting

period. For the estimation of the baseline, historical information on recently commissioned,

under implementation, proposed or announced projects is used. These projects are

considered to be indicative of the intentions of the players in the sector and provide a fair

estimate of the generation portfolio that will emerge in the period up to 2012. Since the




crediting period extends to the year 2013 the baseline emissions for the 2013 is statistically

calculated.

2.2 UP state grid : GHG Sources in the Current Situation

Figure 2.2.1 shows the flow chart of the current delivery system, producing the same

amount of electricity as the proposed project. The main GHG emissions in this system arise

from burning fossil fuels for electricity generation.

In addition to the emissions arising from fossil-fired power generation, additional CO 2

emissions occur during the transport of coal and oil from coalmines and oil wells (or ports).

In the northern region coalfields are far from the coal-fired power stations. The

transportation distance is much smaller for the bagasse used in the proposed project than

for the coal-fired power stations. This means transport emission will be lower in the CDM

project then they are currently. Because of a lack of data on average transport distance for

coal to power stations in Uttar Pradesh and the northern grid, we have not included fuel

transport emissions in the system boundary of both the current situation and the project.

This also provides a conservative estimate of the emission reductions.

Since the fuel requirement of the project will be fulfilled by saved bagasse of Haidergarh

and Babhnan sugar mills and biomass will only be used in case of fuel shortage. The DPR

indicates that no biomass will be required for 320 days of operation of the cogen.




Figure 3.2.1 : Flow Chart Of Current Delivery System OF Uttar Pradesh

UPRVN

THERMAL

PROJECTS

(coal / Gas

based)

CENTRAL SECTOR

GENERATION

(Thermal/Hydro/Nuclear/RE)

Private Sector

Generation

(Thermal/Hydro/

Renewables)

UPJVN

(Hydro

Project)

UPPCL GRID

NORTHERN REGION

GRID

UPPCL DISTRIBUTION

NETWORK

HYDROTHERMAL

NUCLEAR

HCM

(Cogen

Pro ect

OTHER REGIONAL

GRIDS

END USERS / CONSUMERS OF UTTAR PRADESH




2.3 Existing Generation Facilities

The consumer of an Indian state gets a mix of power from the different sources. The figures

of installed power capacity, share of the state in the central pool, and actual plant

availability decides the content of power. In India, the thermal power is mainly generated

by burning bituminous coal mined in central and eastern parts and lignite mined in Tamil

Nadu, Andhra Pradesh and Gujarat. Only a small fraction of the thermal power capacity is

based on naphtha and natural gas. Also, the maximum extent of hydropower is generated in

Himalayan region and the south western mountain ranges.

The real mix of power in a particular year is however based on actual units generated from

various sources of power. The installed capacity and generation statistics for the state of

Uttar Pradesh presented in Table – 2.3.1 below are compiled from UPPCL & NEDA

documents.

Table – 2.3.1: Installed Capacity and Power Generation Statistics of UP

Sr. No. Energy Source Installed Capacity

in MW

Net Generation

in GWh

A. UPPCL

A.1 Thermal (coal based) 4,092.00 17,565.00

A.2 Hydro 1,494.35 5,232.00

A.3 Micro/small Hydro 26.43 29.00

A.4 Renewable sources/MSW etc 40.00 87.00

A.5. Import from other sources incl.

Industrial cogeneration etc.

25.00 69.80

A.6 UPPCL total 5677.78 22982.8

B. U.P’s share in Central Schemes

(coal/gas/hydro/nuclear)

B.1 Thermal (coal) 2510.00 15103.00

B.2 Thermal (gas based) 203.00 1082.00

B.3 Hydro 239.49 805.00

B.4 Nuclear 214 1097.00

B.5 U.P’s share in Central Schemes 3,166.49 18,087.00

Total 8,844.27 41,069.80

Source: Letter of UPPCL No. 1774-Ni/GP/DPU/2002-07 dated August 28, 2001 regarding

capacity addition plan for 10th FYP’s




2.4 Capacity addition forecasts

The main key factor effecting the baseline emissions in scenario II approach, is the change

in generation mix of the UP State. As per the data available, all new projects that are under

planning stage or that have got clearance from UPPCL for implementation are projected as

future capacity addition projects in the coming years up to 2007 (see Table 2.4.1 above and

UPPCL documents & website). This will clearly indicate the expected change in generation

mix up to 2007 and the trend for next years of credit.

Information / date gathered from various published documents concerned sources like

CEA, CMIE, UPPCL, NEDA, MoP, MNES, GoUP is used for predicting the capacity

additions during tenth & eleventh plan (2002-03 to 2011-12). Following Table-2.4.1 shows

the capacity additions planned at UPPCL from 2002 until 2007

Table 2.4.1 – Capacity Additions Projected by UPPCL by the year 2007

Sr.No. Project details Fuel used

Capacity

(MW)

Present Status / Remarks

A. Thermal power projects

1. Aanpara-c project Coal 2 X 500 Implemented by 2005

2. Panki expansion project Gas 1 X 210 Implemented by 2006

3. Parichha Expansion project Coal 2 X 210 Implemented by 2007

4. Hardua expansion project Gas 2 X 210 Implemented by 2007

Sub Total 2050

B. Hydel projects

1. Maneri Bhali – II 304.00 Targeted for 10th plan (2007)

2. Lakhwad Vyasi 420.00 Targeted for 10th plan (2007)

3. Shitala 3.60 Targeted for 10th plan (2007)

4. Sub Total 727.60

C. Total (Thermal + Hydal) 2,777.60

Source: 1) Information received / published documents of CEA, CMIE, UPPCL, NEDA, MoP,

MNES, GoUP etc.

2) Letter of UPPCL No. 1774-Ni/GP/DPU/2002-07 dated August 28, 2001 regarding

capacity addition plan for 10th FYP’s

The actual generation data of the entire UP for the year 2000 - 2001 is available in the form

of UPPCL statistics which includes own generation, purchase from central sector power

plants, purchase from private sector power plants/ cogeneration plants etc.




It has been observed that an average capacity addition is in the installed capacity of UP

including state and central projects is only about 18-19% during last ten years. (1990-91 to

1999 – 2000). This will be assumed for prediction of capacity addition in the central

schemes for tenth and eleventh plan.

As per sixteenth power survey of CEA, average capacity addition is in the state of UP

including State and central projects is predicted as 7.19%. The same has been considered

for predicting the capacity additions of thermal and hydropower projects of UPPCL during

the year 2007 to 2012.

The total installed capacity with addition of around 9,000 MW during the year 2002-03 to

2011-12 or around 900 MW average addition per year is arrived as 17,690 MW, which is

lower than the required by the end of eleventh five year plan value of 22,040 MW (year

2011-12). With this scenario expected shortage will be of 4,350 MW. Also, there is a good

potential for small hydro projects which can be set up on irrigation canals, tanks etc. that

will not alter the generation mix substantially.

The additional data collected from official documents/website of UP Government in which

list of new projects proposed / sanctioned and new expansion proposals which indicates the

future capacity additions. These projects are available for private sector promoters. The

same data is reproduced and presented in the Annexure A and summary of the same is

mentioned as under.

Table 2.4.2 Summary of New Projects Available in UP for private sectors

Sr.

No.

Project Details Capacity (MW) Remarks

1. Thermal projects 1,000 UPPCL project

2. Hydro projects 2,023 50 % is expected to be implemented by

10th

plan & balance by 11th plan

Source: Website of Uttar Pradesh Power Corporation Limited (UPPCL), - http://www.uppcl.org

In addition to the above scenario there are number of proposed renewable energy projects.

If these capacities are realised as planned, then will help a lot to reduce the shortage of

demand for power in the State. Present status of renewable energy projects along with the

future projections are as under (Table-2.4.3). Potential for renewable energy projects (REP)

excluding solar, in UP is more than 4,000 MW.




Table 2.4.3 Projections of Renewable Energy Projects (REP)

Sr.

No.

Renewable Energy Source Present installed

capacity

Expected

additions during

10th

plan

Expected

additions during

11th

plan

1. Micro / Mini Hydel

Micro / Mini Hydel 26.43 MW 117.00 MW 600.00 MW

Total 117.00 MW 600.00MW

2. Renewable/Cogen/MSW

and other sources

(i) Bagasse / Biomass based

cogeneration

40.00 MW 300.00 MW 400.00 MW

(ii) Municipal Waste 15.00 MW* 82.00 MW 100.00 MW

(iii) Biomass Gasifier / misc 2.27 MW

25.00 MW** 50.00 MW**

(iv) Wind N.A

(v) Solar Photovoltaic 0.40 MW

Total 407 550

Sources: Published documents of NEDA, website of government of UP etc

* Projects are under implementation

** minimum expected additions

Source of the above information regarding installed capacities is various published

documents of NEDA and MNES including the website of Govt. of UP. Since there is no

clear cut plan available regarding capacity additions during the tenth & eleventh plan,

estimations have been carried out based on the discussions with NEDA officials, the

available potential of each of the source, present central policy regarding 10 % share of

REP in the total power generation, revised energy policy of UP govt. towards development

of renewable energy sector, UPPCL policy for purchase of renewable energy power etc.

The total capacity addition in each plan is considered to be equally distributed during the

five years span.

Based on the capacity addition statement, it is expected that by the eleventh FYP, out of the

total installed capacity 62% will be the thermal plants. Balance 38% comprises of hydro,

nuclear and renewable energy (9.25%) including micro hydel projects. Considering all the

above it is concluded that the thermal generation mix will continuously increase slightly

towards 2012. For the detailed calculation please refer to the Annexure C.




2.5 Calculations of Baseline Emissions

2.5.1 On-site Emissions

UPPCL grid is considered for baseline analysis and calculation of anthropogenic emissions

by fossil fuels during power generation. As mentioned earlier the UPPCL generation mix,

coal and gas based power projects are responsible for GHG emissions. Two scenarios

considered for baseline calculations are :

(i) The Combined Margin scenario (average of the “approximate operating margin” and

the “build margin”).

(ii) Modified Combined Margin scenario

The distribution of capacity additions over the two plan periods is undertaken in the

following manner:

Based on the reported and collected information on the likely commissioning of

projects, the capacities for the projects are listed under the respective years. The

expected capacity additions have been listed as new capacities for the year.

The capacity additions till the year 2007 are based on information gathered from

various sources as mentioned above (also in the reference list). Wherever the

particular year of commissioning is not available, these capacities are assumed to

equally spread over the plan period.

Estimated capacity addition factor is applied for the predictions of conventional

power projects of centre and UPPCL during the year 2007 to 2013.

Capacity additions through renewable energy projects by the year 2007 is also based

on the information collected from concerned sources as mentioned above. Beyond

the year 2007 till 2012 it is based on the potential available for each type.

The generation from each fuel source was calculated, considering previous year

generation as a basis.

The most important parameter in estimating the emissions is the future thermal efficiency

of the power plants. As per the CEA report, it is assumed that all the coal and lignite based

plants coming up in tenth and eleventh five year plan will use pulverized coal sub-critical /

super critical pressure technology with the thermal efficiency of around 34 % and gas

based plants will use combined cycle gas turbine (CCGT) technology with thermal

efficiency of around 43 %. The percentage of carbon that is not burnt is very low and,

hence, complete combustion is assumed.




Scenario-wise, description of estimation of CO2 emissions is as under

I) Scenario 1: The average of the approximate operating margin and the build margin.

Similar to the scenario I, baseline calculations were carried out under this scenario.

Approximate operating margin and build margin is to be calculated as per the OECD

and IEA reference document (reference # 5) and UNFCCC methodology specified for

small scale activities.

For estimation of operating margin, weighted average of all resources, excluding

hydro, geothermal, wind, low-cost biomass and solar generation is considered.

For estimation of the build margin (or ‘recently built’) the weighted average emissions

(in kgCO2/kWh) as most recent 20% of plants built or the 5 most recent plants of

recent capacity additions, which ever is greater.

In this case also, actual performance data including CO 2 emission figures of coal based

thermal power plants operating in UP state are considered. Details of coal based

projects is as per Table # 2.5 (a) below

Share of gas-based projects is very small (2.81%) as compared to coal based, hence

standard value of CO2 emission by combustion of gas is considered for baseline

calculations (and not actual values). For Natural Gas based power plants IPCC

standard emission factor of 56.10 kg CO 2/GJ and 45% efficiency is considered.

For calculation of build margin, UPPCL data regarding recently build 5 power plants is

used which accounts for more than 20 % of total installed capacity of UPPCL. As per

the Table # 2.5(b)below, build margin factor for base year (2001) comes out to be

1.0750 kg of CO2/kWh.

As per the table, average build margin CO 2 emission factor is considered as 1.075 kg

CO2/kWh. An improvement of 10% is assumed for build margin, till 2010 considering

the central government guideline regarding increase of renewable energy share in the

present generation mix to 10% by the year 2010.The same trend has been extended till

end of credit period i.e. 2013. Looking at the progress made in the renewable energy

power sector (as mention in Enclosure-I) this is a conservative assumption.

Step by step calculation of CO2 emissions due to burning of coal and gas for power

generation and emission reductions by project activity is as under.




Step 1 : Net emission factor for

coal

= Actual emission factor for coal x % of

generation by coal out of total generation

excl.Hydro and RE projects.

Step 2 : Net emission factor for

gas

= Step 1 is to be repeated for gas

Step 3 : Operating margin

factor

= Net emission factor for coal + Net emission

factor for gas

Step 4 : Built margin factor = (Avg. actual emission factor for thermal

projects x recently build thermal projects +

emission factor for hydro x recently build hydro

projects) / (total of recently build thermal &

hydro projects)

Step 5 : Average of operating

and build margin factor

= (Operating margin factor + Built margin factor)

/ 2

Step 6 : Units exported to

UPPCL

= Export in season + Export in off-season

Step 7 : CO2 emission

reduction

= Units exported to UPPCL grid x average of

operating and build margin factor.

II) Scenario 2: Modified Combined Margin Method

Since the selected state grid is power deficit, there is a continuous addition of capacity in

all sectors of grid mix. To take care of this, a modified combined margin method (MCMM)

has been developed which has takes into account the present generation mix as well as the

capacity additions for the credit period ( Ex Post & Ex Ante calculations). In the combined

margin methodology, the effect of proposed / future capacity additions are not considered

for estimation of carbon intensity of the grid for future years (credit period). Operating

margin is calculated as in combined margin method for each year of the credit period with

capacity addition consideration.

Step 1 : Modified Combined

Margin Factor

= Selected lowest conservative value Combined

Margin over of Credit Period.

Step 2 : Units exported to

UPPCL

= (Export in season) + (Export in off-season )

Step 3 : CO2 emission

reduction

= Units exported to UPPCL grid x Modified

Combined Margin Factor




Table 2.5(a): Power Plant performance and CO2 emissions

Sr. Power plant Installed Generation Plant Coal Coal CO2 Calculated

No. location capacity Capacity Efficiency required Grade emission CO2 emission

(MW) (MW) (%) (kg/kWh) (kg/kg) (kg/kWh)

1 Anpara 1630 1630 31 0.70 E,F 1.329 0.93030

2 Harduaganj 385 135 22 1.02 E,F 1.329 1.35558

3 Dadri 848 653 34 0.65 E,F 1.329 0.86385

4 Obra 1442 1014 25 0.88 E,F 1.329 1.16952

5 Panki 274 165 24 0.90 E,F 1.329 1.19610

6 Paricha 220 80 25 0.88 E,F 1.329 1.16952

7 Rihand 1000 960 33 0.66 E,F 1.217 0.80322

8 Singrauli 2000 1545 36 0.61 E,F 1.620 0.98820

9 Tanda 330 195 23 0.96 E,F 1.329 1.27584

10 Unchahar 840 826 30 0.74 E,F 1.329 0.98346

Total /

wt.Avg.

8969 7203 31.04 0.72 E, F 1.38 0.986

Source: A paper on Anthropogenic Emissions from Energy Activities in India: Generation and Source

Characterization by Moti L.Mittal and C.Sharma

For calculation of build margin, following UPPCL data regarding recently build 5

power plants is used as under. Also this capacity is more than 20 % of total installed

capacity

Table 2.5(b) :Build margin calculation

Sr.No. Power plant

name / location

Type Capacity

(MW)

Year of

commissioning

CO2

emission

(kg/kWh)

1. Anpara A Thermal- coal based 420

(2 x 10)

1987 0.93030

2. Anpara A-Phase

II

Thermal- coal based 1x210 1988 0.93030

3. Anpara B Thermal- coal based 1x500 1994 0.93030

4. Tanda Thermal- coal based 930

(3x310)

1987 1.27584

5. Khara Hydro 1x22 1992 0.00

TOTAL 2082 Wt. Avg. 1.0750

Source: 1) UPPCL Report, Statistics at a Glance – March 2002

2) A paper on Anthropogenic Emissions from Energy Activities in India: Generation and

Source Characterization by Moti L.Mittal and C.Sharma




Following table indicate the net baseline emission factors and certified emissions

reductions (CERs) of each year, for Scenario 1 as given above.

Table 2.5 (c) Certified Emission Reductions with scenario 15

Operati

ng

Years

Net Baseline

Emission

Factor

(kgof CO2 /

kWh)

Baseline

Emissions

(tones of

CO2)

Project

Emissions

(tones of

CO2)

Leakage

emissions

(transportation)

Certified

Emission

Reductions

(CERs)

(tones of CO2 )

2004 1.021 96,926 0 1,950 94,976

2005 1.021 102,984 0 1,950 101,034

2006 1.021 109,042 0 1,950 107,092

2007 1.021 109,042 0 1,950 107,092

2008 1.021 109,042 0 1,950 107,092

2009 1.021 109,042 0 1,950 107,092

2010 1.021 109,042 0 1,950 107,092

2011 1.021 109,042 0 1,950 107,092

2012 1.021 109,042 0 1,950 107,092

2013 1.021 109,042 0 1,950 107,092

Total 1,072,245 0 19,500 1,052,745

Following table indicate the net baseline emission factors and certified emissions reductions

(CERs) of each year, for Scenario 2 as given above.

Table 2.5 (d) : Certified Emission Reductions with Scenario 26

Sr.

No.

Operatin

g

Years

Net Baseline

Emission Factor

(kg of CO2 / kWh)

Baseline

Emissions

(tones of

CO2)

Project

Emissions

(tones of

CO2)

Leakage

emissions

(transportation)

Certified

Emission

Reductions,

CERs

(tones of CO2 )

1. 2004 0.91 86,399 0 1,950 84449

2. 2005 0.91 91,799 0 1,950 89849

3. 2006 0.91 97,199 0 1,950 95249

4. 2007 0.91 97,199 0 1,950 95249

5. 2008 0.91 97,199 0 1,950 95249

5 As per Annexure C(Combined margin)

6 As per Annexure C-2 (Modified)




Sr.

No.

Operatin

g

Years

Net Baseline

Emission Factor

(kg of CO2 / kWh)

Baseline

Emissions

(tones of

CO2)

Project

Emissions

(tones of

CO2)

Leakage

emissions

(transportation)

Certified

Emission

Reductions,

CERs

(tones of CO2 )

6. 2009 0.91 97,199 0 1,950 95249

7. 2010 0.91 97,199 0 1,950 95249

8. 2011 0.91 97,199 0 1,950 95249

9. 2012 0.91 97,199 0 1,950 95249

10. 2013 0.91 97,199 0 1,950 95249

Total CERs 955,789 0 19,500 936,289

Therefore an conventional energy equivalent of 1050.32 Million kWh for a period of 10

years in UP would be saved by the exporting power from the proposed 20 MW non-

conventional renewable sources bagasse based cogeneration power plant which in turn will

reduce 1,052,745 tons of CO2 emissions considering baseline calculations as per scenario

1, 936,289 tons of CO2 emissions considering baseline calculations as per scenario 2.

As being a realistic and conservative approach, which also takes into account the

recent trend of power projects build for estimation of CO2 emissions reductions,

scenario 2 has been considered for further calculations.

2.5.2 Off-site emissions

In the power generation process at thermal power plant, major activities responsible for -

site emission are construction of infrastructure for the movement of fuel and transport of

the fuel.

In context of this project, leakage activity identified, which contributes for GHG emissions

outside the project boundary is transportation of saved bagasse from Babhnan Sugar Mill to

proposed cogen power project at Haidergarh. Calculation of leakage has been carried-out

as under:

• Bagasse to be procured from Bhabnan plant - 81120 MT

• Distance between Bhabnan & Haidergarh - 160 km

• Bagasse load per truck - 5 MT

• Number of trips - 16224

• Consumption of Diesel per trip - 40 litres (@4km/litre)

• Total Diesel consumption per annum - 648960 litre




• CO2 emission factor for Diesel - 74.10 tonne CO2 / TJ

• Per annum co2 emission - 1950 tons (approx) per year

The same type of CO2 emission (leakage) occurs during transportation of coal from coal

mines to respective power plants and distance between the coal mine and power plant is

quite higher as compared to the transportation distance between Babhnan and Haidergarh

and hence the higher CO2 emission. To be on conservative side, this leakage due to coal

transportation has not been added while calculating the baseline of UP grid and hence a

small leakage due transportation of bagasse has been neglected from the calculations.

Total baseline emissions

Total baseline emissions will be addition of on-site emissions and off-site emissions. Since

off-site emissions are not considered for baseline emission calculations, as mentioned

above, the total baseline emission will be same as on-site emissions.




Annexure – A

List of Conventional Power Project Available in the State of Uttar Pradesh to be

Implemented in the Near Future7

Sr.No. Name of Project & Location Capacity

(MW)

Remarks

A. Thermal

1. Anpara ‘C’,

District sonbhadra

2 x 500 The project is open for private

sector participation

Sub Total 1000

B. Hydro – Big Projects These projects are open for

private sector participation

1. Bowla Nand Prayag,

Dist. Chamoli

3 x 144

2. Pala Manari,

Dist. Uttar Kashi

4 x104

3. Tapovan Vishnugad,

Dist. Chamoli

3 x 120

4. Lohari Nagpala,

Dist. Uttar Kashi

4 x 130

5. Tuni Plasu,

Dist. Dehradun

3 x 14

Sub Total 1770

C. Hydro – Small Projects These projects are also open for


These projects are also open for


1. Supin, Uttarkashi 11.20

2. Tons, Uttarkashi 14.40

3. Yamuna-1, Uttarkashi 3.60

4. Barnigad, Uttarkashi 6.50

5. Kakorigad, Uttarkashi 3.60

6. Kaldigad, Uttarkashi 7.00

7. Asiganga-I, Uttarkashi 4.50

8. Asiganga – II, Uttarkashi 3.00

9. Asiganga – III, Uttarkashi 3.00

10. Hanumanganga, Uttarkashi 3.50

11. Jalandharigarh, Uttarkashi 4.00

12. Pilanggad II, Uttarkashi 4.00

7 Source: Official website of Government of Uttar Pradesh, India – http://www.upindia.org





(MW)

Remarks

13. Balganga – I, Tehri 5.40

14. Balganga –II,Tehri 7.00

15. Bhilganga – II, Tehri 10.50

16. Bhilganga – III, Tehri 8.40

17. Ksheer-Ganga, Chamoli 4.00

18. Urgam – II, Chamoli 3.80

19. Guarikund, Chamoli 13.20

20. Patha-Buying, Chamoli 9.70

21. Kaliganga – I, Chamoli 4.60

22. Kaliganga – II, Chamoli 6.00

23. Nandakini – I, Chamoli 4.80

24. Nandakini – II, Chamoli 6.20

25. Nandakini – III, Chamoli 4.25

26. Birahi-Ganga - I, Chamoli 5.40

27. Birahi-Ganga – II, Chamoli 4.50

28. Naxman-Ganga, Chamoli 4.40

29. Alaknanda –I, Chamoli 15.00

30. Alaknanda – II, Chamoli 10.00

31. Madhya Mahashwarganga, Chamoli 5.60

32. Mandakini-I, Chamoli 7.50

33. Mandakini-II,Chamoli 8.00

34. Mandakini-III,Chamoli 8.00

35. Pabar, Dehradun 5.20

36. Relagad, Pithoragarh 3.55

37. Painagad, Pithoragarh 4.00

38. Jimbagad, Pithoragarh 6.00

39. Tankul, Pithoragarh 7.80

Sub total C 251.10

TOTAL 3021.10




Annexure – B8

List of Renewable Energy Projects Available in the State of Uttar Pradesh to be implemented

in the Near Future - Under NEDA’s Programme


(MW)

Remarks

A. Small Hydro

A1. New Small & Micro hydel projects to

be implemented

117 (estimated) 44 projects are under detailed

survey. UPPCL already signed

MoU’s with 23 projects of total

capacity 68.50 MW

A2. Partial list of the projects is as

under

1. Harsila, Almora 1.00 These projects are open for


2. Mansuna, Chamoli 2.00

3. Palalganga, Chamoli 1.40

4. Gaurikund, Chamoli 2.00

5. Gharitganga, Chamoli 1.25

6. Baram, Pithoragarh 1.00

7. Bhadeli, Pithoragarh 1.00

8. Jimigarh, Pithoragarh 1.35

9. Chalthi, Pithoragarh 1.50

10. Seragad, Pithoragarh 1.50

11. Aglar, Tehri 1.35

12. Lastergad, Tehri 1.20

13. Jalkur, Tehri 2.00

14. Jakhol, Uttarkashi 2.00

15. Sawrigad, Uttarkashi 1.50

16. Siyan, Uttarkashi 3.00

17. Supin, Uttarkashi 3.00

SUB TOTAL A2 28.05

8 Source: Official website of Government of Uttar Pradesh, India – http://www.upindia.org





(MW)

Remarks

A3. Additional estimated Potential 600 Expected to be implemented by

10th & 11th FYP

Sub Total A 717

B. Municipal Solid Waste

1. Agra 8.00 These projects are open for


(Expected to be implemented in

2-3 years)

2. Aligarh 5.00

3. Allahbad 7.00

4. Bareilly 7.00

5. Ghaziabad 5.00

6. Gorakhpur 5.00

7. Kanpur 20.00

8. Lucknow 20.00

9. Meerut 7.00

10. Muradabad 5.00

11 Varanashi 8.00

Sub Total B 97.00

C. Bagasse Cogeneration

C1. Actual implementation 40 Implemented by 7 sugar mills.

C2. Additional Projected potential 700 It is expected that around 300

MW will be implemented by 10th

FYP.

Sub Total C 740

Total 1554




ENCLOSURE – III

EIA SUMMARY REPORT




ENCLOSURE – III : EIA SUMMARY REPORT

ENVIRONMENTAL IMPACT ASSESSMENT

The environmental impacts can be categorized as either primary or secondary. Primary impacts are

those that are attributed directly by the project, secondary impacts are those which are indirectly

induced and typically include the associated investment and changed patterns of social and

economic activities by the proposed action.

The proposed project would create an impact on the environment in two distinct phases:

During the construction phase and

During the operation phase which would have long term effects.

The proposed cogeneration plant will be set up adjacent to the proposed sugar-manufacturing unit

at Haidergarh. The land is presently barren with not much vegetation. No cutting of trees is

involved and there is no deforestation required. During the study of environmental impact

assessment, a few additional mitigating measures have been identified to further minimize the net

impact. These issues have been covered with each of the impacts below.

IMPACTS DURING CONSTRUCTION

The impacts envisaged during the construction of the proposed plant are:

Impact on Land use and Hydrology

Due to the terai region, the water level is very high. The pumping of ground water will

help in lowering the water level in the factory area. The Sugarcane requires large

quantities of water for irrigation. 59% of area is irrigated by tube-wells and increase

sugarcane crop will help in bringing down the water table.

Impact on Terrestrial Ecology

The proposed land is barren and there is no requirement to clear the land. There is no negative

effect of the proposed project on the terrestrial ecology of the area. The project site will also be

extensively landscaped with the development of green belt consisting of variety species which

would enrich the ecology of the area.

Impact on Aquatic Ecology

There is no tank, lake, river or surface water body very close to the project site. Hence no impact

is envisaged in the construction phase on the aquatic ecology of the area.




Demography and Socio-Economics

Land has been purchased from local villages for which proper price has been paid. Some efforts

are necessary to resettle their families.

The establishment of the factory will prove highly beneficial to the rural population neighboring

the site. There will be a marginal increase in the employment of some persons living in the

nearby villages both at the time of construction as well as during operation.

Traffic and Traffic Hazards for Access Roads

During construction phase, the building material, equipment and machinery and labour will be

transported to the site and this will increase the volume of traffic on access roads. However this

effect will not be very significant in view of the fact that the construction activities will be

spread over a period of 10 months.

The impacts during the construction phase are regarded as temporary or short term and hence do

not have an everlasting affect on the soil, air, noise or water quality of the area.

During Construction Phase

The impact from the construction phase is not envisaged to be serious. However the following

factors should be kept in mind to make certain that the impacts are minimal.

Site Preparation

No major leveling operations are required. However during dry weather conditions, it is necessary

to control the dust generated by excavation and transportation activities. At the site such activity

will be carried out after water sprinkling.

Sanitation

The construction site should be provided with sufficient and suitable toilet facilities for workers

meeting the proper standards of hygiene. These facilities should preferably be connected to a septic

tank and maintained to ensure minimum environmental impact.

Noise

The impact of noise on the nearest inhabitants during the construction activity will be negligible.

However it is advisable that on site workers using high noise equipment use noise protection

devices like ear muffs. Noise prone activities have to be restricted to the extent possible during




night particularly during the period 10 p.m. to 6 a.m. in order to have minimum environmental

impact.

Construction Equipment and Waste

It should be ensured that both gasoline and diesel powered vehicles are properly maintained to

minimize smoke in the exhaust emissions. The vehicle maintenance area should be located in such

a manner to prevent contamination of surface and ground water sources by accidental spillage of

oil. Unauthorized dumping of waste oil should be prohibited.

Deforestation

Although the site is not endowed with trees and vegetation, in order to avoid felling of trees in the

vicinity, the construction site workers should be assisted in procuring fuel for cooking purposes in

order to avoid felling of any trees in the neighborhood.

Storage of Hazardous Materials

The following hazardous materials are anticipated to be stored at site during construction:

Petrol and Diesel

Gas for welding purpose

Painting materials

These materials should be stored in drums as per international safety norms.

Land Environment

As soon as construction is over the surplus earth has to be utilized to fill up low lying areas, the

rubbish is to be cleared and all unbuilt surfaces reinstated. There are no trees at the present site

hence no felling of trees is involved. Appropriate vegetation will be planned after construction

activity.

During construction the impacts are generally manifested by loss of minor vegetative cover,

migration of minor avian population restricted to site. After green belt development these will be

mitigated and the avian population will increase after green belt development since there are no

tress presently.

Development of green belt is to be taken up along with civil works.




IMPACTS DURING OPERATION

The operational phase will involve power production using bagasse. The following activities in

relation to the operational phase will have varying impact on the environment and are considered

for impact prediction.

Impact on Air Quality

The EIA study establishes that the existing status of the ambient air quality of the area is well

within the national ambient air quality standard.

The pollutants envisaged from the proposed co-generation power plant are Suspended Particulate

Matter (SPM), Oxides of Nitrogen (NOx), Carbon mono-oxide (CO) and CO 2.

As such the bagasse has very low ash content (1.5%). The SPM as ash is controlled by high

efficiency Electro-Static Precipitator (ESP). High efficiency (> 99%) ESP will ensure SPM

levels less than 150 mg/Nm3 in the stack. There will not be any Sulpher di-oxide (SO 2) emission

considering bagasse do not contain sulpher. Moisture content of 50% in bagasse will keep the

burner temperatures low so that NOX formation will not take place. Similarly the for high

efficiency combustion is envisaged so that CO formation do not take place and the CO 2 gets

absorbed by the sugar canes harvested each year.

To reduce the ground level concentrations of the pollutants still further, 72 m high R.C.C. stack

height is proposed. This will further help is fast dispersion of pollutants into the atmosphere,

thus, reducing their impact in the vicinity of the project area.

The predictions for air quality during operation phase were carried out for suspended particulate

matter, concentrated for using Air Quality model “Industrial Source Complex Version 99155

(ISCST3)” developed by the US Environmental protection agency in 1995 for atmospheric

dispersion of stack emissions from point source (Details provided in the EIA Report). The

maximum predicted ground level concentrations for SPM were 3.14 ug/m 3 and these were

observed in the North-North-West at a distance of 2.2 km. This shows that HCM will be taking

adequate measures such that air quality impacts of running the power plant operation phase are

reduced to a minimum.

There may be some adverse impact on air quality from truck/tractor exhaust and dust due to

transport of bagasse from Babhnan to the site considering per truck load 2 to 5 tones of loose

bagasse or 8 tones of bale bagasse will be transported. That is additional trips per day based on

the bale or loose type bagasse transport respectively.

About 81,120 tones of bagasse will be transported to plant site from Bhabnan per annum. It is

recommended that HCM should transport bagasse as compressed bales to reduce number of

transport trips. For this HCM has to install ‘baling machine’ at Bhabnan and ‘de-baling machine’

at their Haidergarh sugar unit. Considering the advantage of transporting 5 to 8 tones of bagasse

as bales over 2 to 5 tones per truck without baling the system will have economic benefits along

with environmental benefits. Also, it will be ensured that the bagasse transporting trucks do not

return empty.




The air pollution from the plant in the form of particulate matter emitted mainly from the boiler

are found to be well within the prescribed norms and hence no mitigation measures are

envisaged. In case of non-availability of bagasse, is envisaged to be used as fuel. Considering

bio-mass has more ash content (17%) against 1.5% of bagasse the ESP needs to be fine tuned so

that stack emissions remains within limits.

Impact on Soil

Most of the impacts on soil due to the project are negligible and restricted to the construction

phase and will get stabilized during the operational phase. Fly ash collected from the ESP

hoppers and air heater hoppers and the ash collected from the furnace bottom hoppers can be

used as landfills and also can used as fertilizers in the sugar cane fields. The ash content in the

bagasse is less than 2%. The total fly ash collected may be mixed with press mud from the sugar

plant and sold to farmers as manure because of its high nutrient value.

The boiler soot after cleaning should be stored in a closed drum and to be disposed properly.

Similarly the oily waste, cloth etc. should be stored in a drum and disposed properly.

Impact On Water Resources

The proposed cogeneration unit’s water requirement would be met by the ground water

resources. This is considering abundant ground water with continuous recharge is available.




Impact on Noise

For assessing the impact of noise during operation phase, considerations have been given to two

aspects, those relating to the noise sources and the other relating to potential receivers.

The sound pressure level generated by noise sources decreases with increasing distance from the

source due to wave divergence. An additional decrease in sound pressure level with distance

from the source is expected due to atmospheric effect in its interaction with objects in the

transmission path. Hence, the maximum exposure of noise is when a person is at line of sight

from the noise generating source.

In the cogeneration unit continuous and very high noise levels are generated near primary air

fans, forced drafted fans, boilers, generators, compressors and pumps.

Plant equipments are designed to keep noise levels less than 90 dB(A). This is considering

damage risk criteria as enforced by OSHA (Occupational Safety and Health Administration) to

reduce hearing loss, stipulates that noise level upto 90 dB(A) are acceptable for 8 hour working

shift per day.

For computing the noise levels at various distances with respect to the plant site in general and

the turbo-generator bay in particular, noise propagation analysis was undertaken. The noise

computed at a far distance of about 1000m is of the order of 35dB(A) during the operation of the

plant. The ambient noise level recorded in the nearby villages ranges between 40-55 dB(A).

(Details provided in the EIA Report) Due to masking effect, the ambient noise levels in the

nearby villages will not increase during the operation phase.

The noise levels in the work areas like generator room and boiler room may be slightly on the

higher side (>85dB(A) continuously) but at these places, continuous attendance of workers are

not required and workers will be on duty only in shifts as required. Provision of protective

personnel equipment in addition will reduce the impact of noise level. Hence these noise levels

may not be of much concern from occupational health point of view. However under the general

health check-up scheme as per factory act, a trained doctor will check up the workers for any

Noise Induced Hearing Loss (NIHL).

The greenbelt, which is being provided by HCM will act as noise attenuator.




Impact on Water Quality

The EIA study establishes that the existing status of the water quality of the area are well within

the environmental norms. The effluent generated from the proposed sugar plant and the project

activity – the cogeneration power plant will be treated in the effluent treatment plant to ensure

there is no environmental deterioration.

The liquid effluents from the power plant would include effluent generated from DM water

treatment plant, boiler blow down, cooling tower blow-down, floor washings, sanitation etc.

Effluent from DM Plant: Hydrochloric acid and sodium hydroxide will be used as

regenerants in the DM water plant for boilers and effluent would be drained into epoxy

lined underground neutralizing pits. Generally, these effluents are self neutralizing,

however provisions will be made such that the effluents are completely neutralized by

addition of acid/alkali. The effluent would then be pumped into the effluent treatment

ponds, which are a part of the effluent disposal system.

Effluent from RO Plant: The wastewater generated from Reverse Osmosis (RO), which by

design will have less than 2100 mg/l Total Dissolved Solids (TDS) will be sent to sugar

factory ETP

Effluent from Boiler:The salient characteristics of the blow down water from the point of

view of pollution would mainly be the pH and temperature since the suspended solids are

negligible. The pH would be in the range of 9.8 to 10.3 and the temperature would be

around 100 oC. The quantity of the blow down water is as low as 1.2 tones/hr it is proposed

to put the blow down into the trench and leave it into the sugar plant effluent ponds.

Therefore there are no major impacts envisaged due to effluent generation from the project

activity.




Impact on Ecology

The inventory on terrestrial ecology has been compiled through data collection from marshes,

irrigation canals, agricultural land and groves (Details provided in the EIA Report). Air

emissions from the plant are very low as mentioned above. SPM will contain primarily ash with

high nutrient value and will be beneficial to the plants. Other pollutants like NO X and CO are not

envisaged in much quantity to adversely affect the plants or animals.

There are no liquid discharges from the plant that will interfere with the local aquatic ecological

system. High TDS water (<2100 mg/l) will get diluted and will not deplete the dissolved oxygen

levels if reaches to water body, even though it will be discharged on the land.

Ecology and Green belt Development

Implementation of afforestation program is of paramount importance for any industrial

development. In addition to augmenting green cover, it also checks soil erosion, marks the

climate more conductive, restores water balance and makes ecosystem more complex and

functionally more stable. The proponents are proposing for an extensive program for the

development of green belt around the plant. The green belt is being proposed for the following

objectives:

Mitigation of fugitive dust emissions including any odor problems

Noise pollution control

Controlling soil erosion

Balancing eco-environment

Aesthetics

The tree species selected for green belt would include the native species like Mohua, Dhak,

Neem, Mango, Barad etc. The treated sewage effluent from the plant would be used for watering

the green belt.




ENCLOSURE – IV

ABBREVIATIONS




ABBREVIATIONS

BCML Balrampur Chini Mills Limited

HCM Haidergarh Chini Mills, a unit of Balrampur Chini Mills Limited

CCGT Combined Cycle Gas Turbine

CC Climate Change

CDM Clean Development Mechanism

CEA Central Electricity Authority

CER Certified Emission Reductions

CMIE Centre for Monitoring Indian Economy

CO2 Carbon di-oxide

CPU Central Power Units

CP Credit Period

DCS Distributed Control System

DPR Detailed Project Report

DM De-Mineralised

EGEAS Electric Generation Expansion Analysis System

EPS Electric Power Survey

ESP Electro Static Precipitator

EIA Environmental Impact Assessment

FYP Five Year Plan

GHG Greenhouse Gas

GOI Government of India

GoUP Government of Uttar Pradesh

GWh Gega Watt hour

HP High Pressure

HV High Voltage

ICICI Industrial credit & Investment Corporation of India

IPCC Intra-governmental Panel for Climate Change

IPP Independent Power Producers

IREDA Indian Renewable Energy Development Agency

ISPLAN Integrated System Plan

KP Kyoto Protocol

km Kilo

KV Kilo Voltage

KW Kilo Watt

KWh Kilo Watt hour

LP Low Pressure

1 Lakh 1,00,000

MkWh Million Kilo Watt hour

MU Million units




ABBREVIATIONS (Contd.)

MoP Ministry of Power

MNES Ministry of Non-conventional Energy Sources

MoU Memorandum of Understanding

MSW Municipal Solid Waste

MT Metric Ton

MW Mega Watt

NCE Non Conventional Energy

NEDA Non conventional Energy Development Agency

NTPC National Thermal Power Corporation

NOC No Objection Certificate

p.a Per annum

PLF Plant Load Factor

PPA Power Purchase Agreement

PIN Project Idea Note

REP Renewable Energy Projects

SEB State Electricity Board

STG Steam Turbine Generator

TCD Tones of Crushing per Day

TJ Trillion Joules

TPH Tones Per Hour

TERI Tata Energy Research Institute

UNFCCC United Nations Framework Convention on Climate Change

UP Uttar Pradesh

UPPCL Uttar Pradesh Power Corporation Limited

UPPCB Uttar Pradesh Pollution Control Board

UPERC Uttar Pradesh Electricity Regulatory Commission

UPRVUN Uttar Pradesh Rajya Vidut Utpadan Nigam

UPJVN Uttar Pradesh Jal Vidut Nigam




ENCLOSURE – V

REFERENCE LIST




REFERENCE LIST

Sr.No Particulars of the references

Kyoto Protocol / UNFCCC Related

1. Kyoto Protocol to the United Nations Framework Convention on Climate Change

2. Website of United Nations Framework Convention on Climate Change (UNFCCC),

http://unfccc.int

3. UNFCCC Decision 17/CP.7 : Modalities and procedures for a clean development mechanism

as defined in article 12 of the Kyoto Protocol.

4. UNFCCC document, Clean Development Mechanism-Project Design Document (CDM-PDD)

version 01(in effect as of: August 29, 2002)

5. UNFCCC document : Annex B to attachment 3 Indicative simplified baseline and monitoring

methodologies for selected small scale CDM project activity categories ver 01, January 21,

2003.

Project Related

6. Detailed Project report on 20 MW Non-Conventional renewable Sources bagasse/biomass

Cogeneration Power Plant at HCM, Haidergarh, prepared by M/s Avant-Garde Engineers and

Consultants (P) ltd., Chennai, India.

7. Executive summary of revised capacity of 20 MW by M/s Avant-Garde Engineers and

Consultants (P) ltd., Chennai, India.

8. Various project related information / documents / data received from Haidergarh Chini Mills,

Haidergarh during the site visits.

Baseline Related

9. Center for Monitoring Indian Economy (CMIE) published document of April 2002 on Energy

which includes the detailed data of Energy sector of India.

10. Website of Center for Monitoring Indian Economy (CMIE) Pvt. Ltd., Mumbai, India –

www.cmie.com

11. Website of Central Electricity Authority (CEA), Ministry of Power, Govt. of India -

www.cea.nic.in

12. CEA published document “Fifteenth Electric Power Survey of India”

13. CEA published Report on “Perspective plan for generating capacity addition, Integrated

Operation of regional grids (Free run studies using EGEAS model)”

14. CEA published Report on “Power on Demand by 2012, Perspective plan studies”

15. CEA Report on, Fourth National Power plan 1997 – 2012.

16. Website of Uttar Pradesh Power Corporation Limited (UPPCL), Energy Ministry, Govt. of UP

– http://www.uppcl.org

17. UPPCL Report, Statistics at a Glance : 2000-2001, a detailed document on power sector

overview of UP.

18. Website of Ministry of Power (MoP), Govt. of Indiawww.powermin.nic.in

http://unfccc.int/

http://unfccc.int/

http://www.uppcl.org/

http://www.uppcl.org/




Sr.No Particulars of the references

19. Website of Ministry Non-Conventional Energy Sources (MNES), Govt. of India –

www.mnes.nic.in

20. Paper by Moti L. Mittal and C. Sharma (Ohio Super Computer Center), ‘Anthropogenic

Emissions from Energy Activities in India: Generation and Source Characterisation’.

21. Website of Indian Renewable Energy Development Agency (IREDA),www.ireda.nic.in

22. Detailed Information document of Non-conventional Energy Development Agency

(NEDA), Govt. of Uttar Pradesh Lucknow. (2001-2002).

23. NEDA’s progress report of the year 2001-02 regarding Non-conventional Energy

Development programs in Uttar Pradesh.

24. Official website of Government of Uttar Pradesh,http://www.upindia.org

25. CII Investor Guidebook on bagasse Co-generation .

26. Paper by H. M. Nandanpawar ; ‘ Overview of Cogeneration Power Projects at Sugar Mills in

India’ at International Conference on ‘Non- Conventional Energy Resources, (Pune, 2001).

27. Background Paper of International Conference and Business Meet on ‘Non Fossil Fuel

Generation’ organized jointly by CII, NHPC and NPC of India Ltd. (New Delhi, 2001).

28. Paper by Dr. V. Bakthavatsalam, (MD, IREDA) ‘Renewable Energy Financing: Indian

Experience’ at International conference and Business Meet on Non-Fossil Fuel Generation.

(New Delhi, 2001).

29. Paper by Mr. Rangan Banerjee, (Energy Systems Engineering, IIT Bombay), ‘Review of

Electricity Generation from Renewables’. (2001).

30. www.infraline.com

31. Paper by Sivan Kartha and Michael Lazarus with Martina Bosi, IEA Practical baseline

recommendations for greenhouse Gas mitigation projects in the electric power sector, an OECD

and IEA Information paper.

32. Official website of Uttar Pradesh Government, India. www.upindia.org

33. India Electrical Distribution Reform Review and Assessment. A report prepared by CORE

international, Washington for USAID, India, September 2002.

http://www.upindia.org/

http://www.upindia.org/

Documents

BCML II Enclosures