(R&M) of Fossil Fuel

MODEL FEASIBILITY REPORT
(AN ISO: 9001:2008 CERTIFIED COMPANY)
LII-GETS12021-G-00100-002 R05 January 2016
Feasibility Report For R&M of Unit No.[..]Capacity [..]of [Name of the Power Plant] [Logo of Utility]
Document Number Rev No.
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [ii] 15.01.2016
History of Revision
Description
R00 21st Aug 2012 R.K.Soni (RKS) First edition Issued (Draft Report).
R01 22nd Aug 2012 RKS Minor Revision (Draft Report).
R02 04th Dec 2012 RKS Revised edition submitted based on the discussions held in CEA on7th Sep 2012
R03 16th July 2013 RKS Revised edition submitted based on the comments of the Task Force received on 14th May 2013 and the meeting held in CEA on 11th June 2013.
R04 25th Sep 2014 RKS Revised to incorporate left out comments
R05 15th Jan 2016 RKS Clause 6.4.12 revised to include ‘Possibility of Automatic Switching’
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [iii] 15.01.2016
BACKGROUND
What is R&M (Renovation & Modernization) of Thermal Power Plants? Coal based power stations contribute more than 70% share of total power generation in India. Thermal Power Stations are designed for an economical and stable life span of 25 years, after which, the level of performance starts deteriorating as a result of degradation of its equipments, components and materials. Deterioration in performance can also take place before the completion of useful life of 25 years, if the units are not properly operated and maintained. Deterioration in performance is reflected in frequent forced outages, reduced outputs, decreased efficiency and increased cost of generation. This results in costly repair and loss of revenue. Renovations & Modernization (R&M) and Life Extension (LE) programme of thermal power station is an activity of carrying out repairs, refurbishments and replacement of defective equipments & components so as to extend the life of the power plant by at least 20 years and to restore the performance parameters to equal or better than the original design parameters.
Need of R&M
In spite of new capacity additions, India continues to face shortages of varying degree in the supply of energy and peaking power. Implementation of fresh capacity additions for bridging the demand supply gap involves huge investments and long gestation periods primarily due to the process of land acquisition and getting the required fuel and water allocations, permits & clearances, particularly, the environmental clearance.
On the other hand, R&M activity of existing old power plants which requires less investment and can be completed in shorter duration has been recognized as a techno-economically viable option to supplement the fresh capacity addition for maximizing the energy generation. Also it helps in reducing the emissions by adopting upgraded modern technologies.
Objectives of R&M and R&M/LE Programme
As per the Guidelines issued by Central Electricity Authority (CEA) the following should be the objectives of R&M and R&M/LE Programmes.
Objectives of R&M Programme:
• To restore rated capacity and design parameters such as Heat Rate, Auxiliary Power Consumption and Secondary Oil Consumption etc.
• To make the operating units well equipped with modified/ augmented latest technology.
• To overcome technological obsolescence and non-availability of spares.
• To improve the performance parameters in terms of Plant Load Factor, Efficiency, Forced Outages, Availability and Reliability.
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [iv] 15.01.2016
• To reduce maintenance requirements and enhance the ease in maintenance.
• Compliance of stringent environmental norms, safety and other statutory requirements.
Objectives of R&M/LE Programme:
• Extension of useful economic life of generating units by another 20 years.
• To focus on full load operation of the unit beyond their original design life.
• To restore rated capacity and design parameters such as heat rate,
• Improvement in Auxiliary Power Consumption Secondary Oil Consumption etc
• Up-rating of Generating Unit.
• Improvement beyond design parameters.
Criteria for the Consideration of R&M and R&M/LE Programmes
As per the Guidelines issued by Central Electricity Authority (CEA) the following criteria is to be adopted for considering the R&M and R&M/LE Programmes.
• Estimated cost of unit for complete R&M/ LE works should be limited to 50% of cost of new unit.
• Cost of Main Plant (BTG) should be limited to 50% cost of new BTG unit.
• Plant Life should be extended by about 20 years.
• The Pay Back Period should be from 5 to 7 years.
Need of Preparation of Model R&M Documents
The countrywide R&M programme was first initiated in 1980 when Government of India approved the scheme of Central Loan Assistance (CLA) of Rs. 500 crores benefitting 34 power stations mostly of 50/60/100/110/120/140 MW capacities. R&M in a structured manner was initiated as a centrally sponsored programme during the 7th Five Year Plan. The momentum of carrying out R&M works was continued through 8th and 9th Plans but the same could not be sustained during the 10th Plan.
Based on the discussions held with Ministry of Power, various utilities, PFC and BHEL, CEA prepared a document on “National Perspective Plan for Renovation & Modernization and Life Extension and Up-rating (LE&U) of thermal power stations up to the year 2016-17”. This document which also includes revised guidelines for Renovation & Modernization / Life Extension works on coal/lignite based thermal power stations was released by Honourable Minister of Power on 14th December 2009. Plan-wise Achievements of R&M and R&M/LE Programmes starting from 7th Five Year Plan till 11th Five Year Plan is furnished below:
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [v] 15.01.2016
Plan–Wise Achievements
Capacity (MW)
Equivalent MW
85-86 to 89-90 & 90-91, 91-92
34 / 163 13570 10000 2000
2 8th Plan (R&M) (LEP)
92-93 to
97-98 to
18991 (17306)
2002-03 to 2006-07
(11 out of 106 )
11th Plan R&M Programme & Achievements (2007-12)
In the past, R&M measures were hampered due to lack of proper planning. Proper investigation to identify the R&M works to be carried out and preparation of technical bid documents based on the investigation was not done. This resulted in unsystematic and additional work during execution phase and uncertainty about costs resulting in excessive implementation time, long shutdown periods of plants and cost overruns. In the absence of standard commercial rules and policies, suppliers showed little interest in R&M work. Therefore a strong need was felt for providing standardized bidding procedures as well as model contracts, formats and specifications etc. to the utilities. Standardization will harmonize the requirements of all the stakeholders and will lead to their increased participation.
The Indo-German Energy Forum (IGEF)
The Indo-German Energy Forum (IGEF), inaugurated in 2006, provides a platform to discuss energy related issues of mutual interest. The first meeting of the ad-hoc sub-group on “energy
Programme (MW)
Achievement (MW)
Life Extension
18965
(72 units)
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [vi] 15.01.2016
efficiency in thermal power stations”, constituted as per decision of meeting of IGEF in December 2007, was held under the chairmanship of Joint Secretary (Thermal), Ministry of Power on 12th March, 2008 in which preparation of standard tendering document for the purpose of R&M activities was, inter-alia, identified as an area of the activities. The scope of the assignment was divided in two parts as under:-
Phase-I Activity:
Phase-I activity comprised an assessment of tendering procedures currently being followed by public utilities in India and a review of documents used for standard R&M projects and the documents which have already been developed for energy efficient R&M projects financed by particularly World Bank. This activity was carried out by M/s Evonik (India) under the grant provided by GTZ. M/s Evonik (India) submitted the report in September 2009.
Phase-II Activity
Phase-II activity comprised the preparation of the model documents / templates in consultation with Task Force, power utilities & financing agencies.
In the 3rd meeting of Indo-German Energy Forum (IGEF) convened in Berlin on 4th November 2009, KfW proposed to finance and carryout the work programme of phase-II Activity, on behalf of CEA & in consultation with the Task Force. In a meeting held in MOP on 17th December 2009, chaired by Joint Secretary (Thermal), MOP, the representative of KfW suggested that CEA may act as “Project Executing Agency” for the phase-II activity. Accordingly Ministry of Power, Govt. of India have entrusted the task of “Project Executing Agency” to CEA for implementing Phase-II activity. Under Indo-German Energy Forum (IGEF) assisted programme, M/s Lahmeyer International (India) was appointed on16th March 2012 to provide the consultancy services for ‘Development of tendering procedures and model contract document for R&M of Fossil Fuel Based Power Plants in India.’ The scope of consultancy services included the preparation of the following model documents:
I) Standard Bidding Procedure for engagement of Consultants and R&M Works Contractor.
II) Residual Life Assessment (RLA) / Condition Assessment (CA) Report.
III) Energy Audit (EA) Report.
IV) Feasibility Report.
V) Detailed Project Report.
VI) Request for Qualification (RFQ) & (RFP) Documents for R&M Consultants and R&M Contractors.
VII) Technical Specifications. Due Diligence done by LII of the R&M Documents of other Projects
Before the preparation of this model document, LII did a thorough review of the R&M Documents of the following Power Plants:
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [vii] 15.01.2016
Documents Provided by CEA
• Remaining Life Assessment I Condition Assessment Report- Nasik Unit-3 of MAHAGENCO.
• Energy Audit Report- Nasik Unit- 3 of MAHAGENCO. • Detailed Feasibility Report- Nasik Unit-3 of MAHAGENCO. • Draft Detailed Project Report -Kolaghat Unit-3 of WBPDCL. • Service Contract- R&M of Unit-1 Panipat TPS of HPGCL. • Tender document for Supply, Erection, Testing and Commissioning of Air Preheater for
Unit 5 & 6 Koradi TPS, MAHAGENCO. • Tender document for replacement of 6.6 KV station transformer incoming breaker & Tie-
breaker of Koradi TPS, MAHAGENCO. • Tender specification for Design, Engineering, Supply, Erection, Testing and
Commissioning of Rotary Air Preheter for Units 4 & 5, Nasik TPS of MAHAGENCO. Documents Provided by WBPDCL
• Energy Audit Report of Bandel Unit -5 (210 MW) of WBPDCL. • Detailed Project Report of Bandel Unit -5 (210 MW) of WBPDCL. • Project Design Report of Bandel Unit -5 (210 MW) of WBPDCL. • Technical Specifications. (Vol. II of RFP Document for R&M Contractor). • RLA for Boiler for Bandel Unit -5. • RFP for R&M Consultant for Bandel Unit -5. • Commercial Volume-I of RFP for Bandel Unit -5 for R&M Contractor.
KfW Documents
• Model Contract Document issued by KfW. • Guidelines issued by KfW for the assignment of Consultants.
World Bank Documents
• Standard Bidding Document for Procurement of Plant, Design, Supply and Installation. • Standard Request for Proposal for the Selection of Consultants
**************
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [viii] 15.01.2016
GUIDELINES FOR USING THE MODEL FEASIBILITY REPORT
Central Electricity Authority (CEA), the Project Executing Agency / Employer has appointed Lahmeyer International India Pvt. Ltd. (LII), the Consultant to Develop Standard Procedures and Model Documents for the Renovation and Modernization (R&M) of Fossil Fuel based Power Plants in India. The above assignment is being financed by KfW Entwicklungsbank. Accordingly, this Model Feasibility Report has been prepared for the guidance of Project Authorities who may decide to carryout R&M of their old Coal based Power Plants so as to extend the life of their plants and make them energy efficient and reduce emissions.
The purpose of this model document is to standardize the format of the Feasibility Report for R&M works. Since majority of 200/210 MW units are potential candidates for consideration of Renovation as they have crossed 20 to 25 years of useful life, the enclosed format has been prepared keeping those 200 MW/210 MW units in view. Since in due course of time, many 500 MW units will also become due for R&M, the Utilities are advised to suitably modify this document for its application to 500 MW units.
**************
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [ix] 15.01.2016
MODEL FEASIBILITY REPORT
FOSSIL FUEL BASED POWER PLANTS IN INDIA
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [x] 15.01.2016
TABLE OF CONTENT
3.1 Boiler & Auxiliaries 5
3.2 Turbine & Auxiliaries 11
3.3 Electrical System 16
3.4 Control & Instrumentation 19
3.6 Civil Works 23
4.2 Stack Emissions, Ambient Air Quality and Process Effluents 25
4.3 Tripping and Maintenance Record 27
4.4 Maximum Achievable Load due to Performance Constraint of ESP 28
4.5 Record of Reportable Accidents 28
4.6 Operation & Maintenance Difficulties due to Plant Limitations 29
5 RESULTS OF RLA/CA AND EA STUDIES AND TECHNICAL SOLUTIONS 30
5.1 Approach Adopted 30
5.3 Formulation of R&M Options 38
5.4 R&M option identified for Implementation 41
6 PROPOSED MODIFICATIONS AND REFURBISHMENTS 42
6.1 Boiler and Auxiliaries 42
6.1.1 Boilers 42
6.1.2 Coal Mills 42
6.1.3 PA Fans 42
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xi] 15.01.2016
6.1.4 ID Fans 43
6.1.6 ESP 43
6.2.1 Steam Turbine 44
6.2.5 LP Heaters 45
6.2.8 HP Heaters 45
6.3 Balance of Plant 46
6.3.1 Coal Handling Plant 46
6.3.2 Ash Handling Plant 46
6.3.3 Water Intake System 46
6.3.4 Water Pre-Treatment Plant 47
6.3.5 DM Plant 47
6.3.7 Cooling Towers 47
6.3.9 Fuel Oil Handling System 48
6.3.10 Compressed Air System 48
6.3.11 Air Conditioning & Ventilation System 48
6.3.12 EOT Crane in TG Hall 48
6.3.13 Effluent Treatment Plant 48
6.4 Electrical System 49
6.4.1 Generator- Stator 49
6.4.2 Generator-Rotor 49
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xii] 15.01.2016
6.4.3 Generator Transformer 49
6.4.10 DC system 51
6.4.12 Illumination System 51
6.4.13 DG Sets 51
6.5 Control & Instrumentation 52
6.5.3 Boiler & Auxiliaries 56
6.5.4 Turbine & Auxiliaries 57
6.5.6 Control Valves 59
6.5.9 Continuous Emission Monitoring System 59
6.5.10 Pipes & tubes 59
6.6.2 TG-Building 60
6.6.3 Chimney 60
6.6.4 Coal Handling Plant 61
6.6.5 Ash Handling Plant 61
6.6.6 Water Treatment Plant 61
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xiii] 15.01.2016
6.6.7 Raw Water Reservoir 61
6.6.8 CW System 61
6.6.9 Ash Pond 61
6.6.10 Miscellaneous Works 62
7.1 Introduction 63
7.3 Impact on Tariff 63
7.4 Basis of Comparison 63
7.5 Assumptions for Financial Comparison 64
7.6 Comparison of Input for Different Options 65
7.7 Selection of R&M Option 67
7.8 Impact of Adverse Scenarios 67
8 CARBON CREDIT AND ENERGY EFFICIENCY CREDIT 71
9 PROJECT FINANCE AND MARKET SCENARIO 72
9.1 About the Utility 72
9.2 Financial Performance 72
9.4 Market Scenario 74
10.1 Project Team 75
10.2 Project Schedule 75
10.3 Project Management 75
10.4 Project Monitoring 75
10.7 Quality Management 76
10.9 Liquidated Damages 77
10.10 Health, Safety and Environment (HSE) 77
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xiv] 15.01.2016
10.11 Supply of Spares and Special Tools and Tackles 78
10.12 Training 78
11 RISKS 80
11.2 Regulatory Risk 80
11.4 Risk of Non-Availability of Spares. 81
11.5 Risk of Getting Shutdown for Implementation 81
11.6 Financing Risk 81
11.7 Implementation Risk 81
12 CONFORMITY TO STATUTORY ENVIRONMENTAL NORMS 82
12.1 Environmental Monitoring Cell 82
12.2 Stack Emissions 82
12.4 Liquid Effluents 82
12.7 Corporate Social Responsibility 83
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xv] 15.01.2016
LIST OF ANNEXURE
ANNEXURE DESCRIPTION PAGE
6.2 STEAM TURBINE AND AUXILIARIES 94
6.3 BALANCE OF PLANT 97
6.4 ELECTRICAL SYSTEM 101
6.6 CIVIL WORKS 113
7.1 SUMMARY OF CAPITAL COST FOR VARIOUS R&M OPTIONS 117
7.2 TARIFF CALCULATION FOR VARIOUS R&M OPTIONS 118
7.3 CASH FLOW AND RETURN ANALYSIS FOR VARIOUS R&M OPTIONS 122
10.1 PROJECT MILESTONE SCHEDULE 127
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xvi] 15.01.2016
ABBREVIATIONS TO BE USED
{The utilities are advised to use the following standard abbreviations while preparing Feasibility Report for their power plant.}
AAQ Ambient Air Quality
ACB Air Circuit Breaker
ACG Automatic Control Gear
AHP Ash Handling Plant
AHU Air Handling Unit
ASME American Society of Mechanical Engineers
ATRS Automatic Turbine Run up System
ATT Automatic Turbine Testing
AVR Automatic Voltage Regulator
BAS Boiler Auxiliary Steam
BOP Balance of Plant
CBD Continuous Blow Down
CCTV Closed Circuit Television
CDM Clean Development Mechanism
CEA Central Electricity Authority
CER Certified Emission Reduction
CHP Coal Handling Plant
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xvii] 15.01.2016
CRH Cold Re-Heat
COC Cycle of Concentration
COG Cost of Generation
DDCMIS Digital Distributed Control Monitoring Information System
DG Diesel Generator
ESP Electro Static Precipitator
ESV Emergency Stop Valve
ETP Effluent Treatment Plant
FO Fuel Oil
GC Gland Condenser
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xviii] 15.01.2016
GCV Gross Calorific Value
HCA Host Country Approval
HMI Human Machine Interface
IBD Intermittent Blow Down
ICB International Competitive Bidding
IFI International Financing Institution
IGV Inlet Guide Vane
IV Interceptive Valve
LPT Low Pressure Turbine
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xix] 15.01.2016
LRSB Long Retractable Soot Blower
LT Low Tension
LVS Large Video Screen
MS Main Steam
OPC Object linked embedded Process Control
OWS Operator Working Station
PLC Programmable Logic Controller
R&M Renovation & Modernization
RfP Request for Proposal
RfQ Request for Qualification
SH Super Heater
SWAS Steam and Water Analysis System
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xx] 15.01.2016
TDH Total Dynamic Head
TPS Thermal Power Station
TR Tons of Refrigeration
TAC Tariff Advisory Committee
WACC Weighted Average Cost of Capital
LII-GETS12021-G-00100-002 05 FEASIBILITY REPORT FOR R&M WORKS [xxi] 15.01.2016
MEASUREMENT UNITS
{The utilities are advised to use the following abbreviations for the measurement units while preparing Feasibility Report for their power plant.}
°C : Degree Celsius
cm2 : Square Centimeter
ppm : Parts per million
rpm : Revolutions per minute
Feasibility Report For R&M of Unit No.[..]Capacity [..]of [Name of the Power Plant] [Logo of…