OPTIMIZING GENERATION

Remarks of R.P. SinghCMD, SJVN Limited

17th INDIA POWER FORUM

14th November, 2014

Power Scenario in India & Neighboring Countries

All India Installed Capacity (As on 30th September, 2014)

Sector Installed Capacity (MW) % Share

Thermal 1,76,778 69.6

Hydro 40799 16.05

Nuclear 4,780 1.85

RES 31692 12.5

Total 254049

Source:- CEA Report

Power Scenario in India & Neighboring Countries

Estimated Demand & Generation Projection in India by 2050

Year Peak Demand Requirement (GW)

Installed Capacity Requirement (GW)

2016-17 200 271

2021-22 283 372

2026-27 401 528

2031-32 542 712

2036-37 644 882

2046-47 844 1258

2050 896 1388

Source:- Dessert Power India 20250 Report

Power Scenario in India & Neighboring Countries(- Contd-)

Status of Hydro Power Development in India (As on 30th September,2014 )

Status Capacity (MW)

Hydro Potential Available 148701

Under Operation 40799*

Under Construction 13207

Potential yet to explore 96100

% of Potential harnessed ( Operation + construction)

34 %

• Including Small/Mini Hydro PlantsSource:- CEA Report

Power Scenario in India & Neighboring Countries(- Contd-)

% Share of sectors in All India Hydro Power Installed Capacity (As on 30.09.2014)

Sector Installed Capacity (MW) % Share

Central 10623 26.03

State 27482 67.36

Private 2694 6.61

Total 40799

Source:- CEA Report

Power Scenario in India & Neighboring Countries(- Contd-)Status of Hydro Power Development in India - Opportunities

StatusCapacity (MW) > 25 MW

Arunachal Pradesh

Uttarakhand

Himachal Pradesh

Sikkim Karnataka Maharashtra

Hydro Potential

50064 17998 18540 4248 6459 3314

Under Operation

405 3426 8439 669 3585 2487

Under Construction

2854 1640 3085 2622 0 0

Yet to explore

46805 12932 7016 957 2874 827

% of potential explored

6.5 28 62 55 55 75

Source:- CEA Report

Kerala

3378

1881

100

1396

59

Power Scenario in India & Neighboring Countries(- Contd-)

Hydro Power Opportunities in Neighboring Countries:-

Status Capacity (MW)

Bhutan Nepal

Hydro Potential 30000(Technically feasible 23760 )

80000

Under Operation 1488 718

Under Construction 10064 4323

Yet to Explore 12208 74959

% of Potential explored 48 6

Challenges for Hydro Power Sector Land Acquision

Environmental Issues

Market Challenges:- Bidding process for hydro projects, difficulty in financing due to long gestation period

Technical Challenges: Natural Disasters of flood and landslides along with unexpected cavities, underground water springs (hot/cold) and a relatively fragile rock as Himalayas are young fold mountains.

Lack of Infrastructure:- Lack of communication facilities, Sub stations & Power Evacuation Network.

Clearance of DPR and approval of Investment decision

Long gestation period

Challenges for Hydro Power Sector-Contd-

Major slippage reasons for Hydro Projects

Delay in Preparation of DPR & MOU Signing

Delay in MOEF Clearances

Delay in Investment decision/Funds tie up constraints

Delay in Award of Works

Geological Surprises

Natural Calamity

R &R Issues

Court cases

Measures to Optimize the Hydro Power Generation

Optimization in Operation of Hydro Power Plants Hydro Plants need to operate at Overload Capacity available within design limit during high

flow season and/or during peak hrs.

Use of advance technologies e.g. Robotic based HVOF Coatings on underwater parts , Periodic Reservoir Flushing and specific arrangements at Dam to counter high silt in the river.

Use of latest Control schemes/up gradation of control system of old plants to achieve fast response characteristics e.g. FGMO/RGMO Mode of operation, SPS Schemes for improving grid security etc.

Result:-

Extra MU Extra MW Less Maintenance time Reduced cost of Maintenance Increased Plant Availability

2011-12 2012-13 2013-14 2014-15(up to 11th Nov)

5000

5500

6000

6500

7000

7500

8000

7610

6778

7192

5841

Gross Energy Generation (MU)

• The design energy generation capacity is 6,612 MU in a 90% dependable year

Measures to Optimize the Hydro Power Generation-Contd-

Nathpa Jhakri Hydro Power Station (1500 MW)

2011-12 2012-13 2013-14 2014-15(up to 11th

Nov)

60.00%

70.00%

80.00%

90.00%

100.00%

110.00%104.26% 105.15% 105.75%

108.29%

PAF ( NAPAF 90%)

Highest in the country

Measures to Optimize the Hydro Power Development

Regulatory Framework for Hydro Power Sector:-

• Revival of Mega Power Policy to allow the benefit of Excise Duty/Custom Duty on Equipments as well as Construction material (Steel, Cement etc) for the Hydro plants of Unit size more than 50-100 MW

• Possibility of Single Window clearance for all approvals required to set up a Hydro Power Plant.

• A Central Agency/ Govt. of India may be given the responsibility for preparation of DPR and obtaining all other statuary clearances before the allotment of project to developer for execution.

• Statuary clearance from the Environment, Forest and Wildlife point of view may be accorded on a speedy basis.

• Speedy approval of investment decision after the project has been allotted to the developer.

Improving Infrastructure of the Region Prior to Execution of Project:Roads, Rail Connectivity, Upgrading of the existing sub-stations, Basic Infrastructure for PAPs

Measures to Optimize the Hydro Power Development (Contd.)

Planning for Integrated River basin development approach:-

Project allocation procedure in line with integrated river basin development , Cascade /Tandem Projects should be allotted to same developer.

Development of Benefit sharing mechanism with PAPs for benefit of all stakeholders:- Provisions for the PAPs to establish an ownership in the project by offering suitable equity

participation at par as on the date of COD. Power evacuation Infrastructure:- Dedicated Transmission network may be created for Evacuation of Power from the North East

Region. Building Pooling substations in locations having concentration of hydro resources to reduce

project cost. Introduction of Hydro Power Purchase obligation in line with renewable sector.

Differential Tariff Structure consisting of Peak & Off-Peak Tariff

Introduction of incentive scheme for Operational Hydro Power Plants -- Black start up capability -- reactive power regulation -- measures to ensure grid security like SPS & FGMO/RGMO mode .

THANK YOU