2 X 660 MW BANSWARA COAL BASED SUPERCRITICAL GREENFIELD THERMAL POWER PROJECT PROPOSED A T VILLAGE-PHEPHAR/ DISTRICT - BANSWARA (UNIT # 1 & 2)

Transcription

1 RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED.- 2 X 660 MW BANSWARA COAL BASED SUPERCRITICAL GREENFIELD THERMAL POWER PROJECT PROPOSED A T VILLAGE-PHEPHAR/ DISTRICT - BANSWARA (UNIT # 1 & 2). PRE-FEASIBILITY REPORT (Revised)

2 PRE-FEASIBILITY REPORT 1. Introduction 1.1 This document presents summary project details of 2 x 660 MW coal based supercritical technology based thermal power project proposed to be established at village -Phephar in District -Banswara under Stage- I (Unit - 1 & 2). 1.2 The summary project details consists of extent of land requirement, requirement of coal (primary fuel) and water, technology of supercritical units vis a vis sub critical units, Clean Development Mechanism (CDM) benefits, CSR benefits, brief technical features of the main plant (boilers/turbines and auxiliaries), power evacuation, environmental aspects, estimated project cost and cost of generation per unit and project schedule. 2 Location of the project The location of proposed Greenfield power project IS at village - Phephar on Banswara -Danpur Road of State Highway No-10 and 35 Kms from Banswara District of Rajasthan at (Latitude '55"N, Longitude '31"E & 395M above MSL), with barren /hard rocky /black cotton soil. The nearest airport is Dabok in Udaipur city which is approx.225kms from the site. 3. Land Requirement It is estimated that land required for the proposed 2 x 660 MW power station would be of the order of Acres( Ha) including area required for ash disposal area, in-plant marshalling yard, raw water reservoir and all systems / structures required for the power plant, but excluding the land required for colony (township), water & Railway corridors. 4. Water Requirement Water requirement for the proposed 2 x 660 MW is estimated to be of the order of 60 cusec per day. This requirement is arrived at after considering adoption of re circulating type of cooling water (by installing cooling towers) and adopting 'zero discharge' concept in the Project. At each project site, raw water reservoirs to store 30 days of water requirement would be constructed to take care of vagaries in water transportation from the rivers / dams. 5. Sources of Raw Water and Allocation The source of water for proposed Project would be Mahi Dam.

3 Water Resource Department, Government of Rajasthan has allocated 2000 Mcft per day from Mahi Dam which is about 25 km away from the site. 6. Coal Requirement Coal requirement for a 2 x 660 MW supercritical power station is estimated to be of the order of raw coal 6.50 MTPA and washed coal order of 5.04 MTPA. (Assumptions: Plant Gross heat rate: 2450 kcaljkwh; GCV of Coal: 4,500 kcaljkg; Annual Plant Load Factor: 0.80). 7. Source of Coal and Coal Transportation to Site Application for long term coal linkage submitted to Ministry of coal, Gol on Ministry of Coal has allocated a small coal block (Kante Extension) on in Chhattisgarh state entailing coal haulage distance of more than 1500 km to RVUN but formal allocation letter from MoC is still awaited. Presently, no rail link is available between Ratlam to Banswara. New Broad Gauge railway line from Ratlam to Dugarpur via Banswara has been announced by the Hon'ble Railway Minister, GOI in Rail Budget This Rail line is proposed to transport coal required for the project.the state Govt. has given its consent to Ministry of Railway for sharing 50% of the project cost Rs 2083 Crs along with the cost of land acquisition for construction of broad gauge rail link from Ratlam to Dungarpur via Banswara. The State Government's contribution is estimated to be.. approximately Rs.1200 Crores. The share amount of Rajasthan shall be borne by three supercritical power project each of 2x660MW capacity in Banswara region: i.e State Sector RVUN project at Phephar, Tariff based competitive bidding route project(case2 - IPP) of RVPN at Danpur and one private project. Satellite field survey for Railway Link Ratlam-Dungarpur via Banswara has been completed. Physical possession of land has been handed over to NWR pertains to Banswara and Dugarpur section of Rajasthan by GoR.Earth work has also been started and land for 37 km Rail route around Bigha land has been acquired and handed over to Railway for carrying out Earth Work of Railway line in section Banswara-Ratlam. The Rail link project is expected to be completed within 4 years. 3

4 8. In-plant coal handling System The in-plant coal handling system is expected to be of wagon tipplers type as in the case of the existing units of other Power station of RVUN. The merry go round (MGR) type of system with bottom open wagons may not be feasible for the long haulage distances involved. The in-plant coal storage yard would consist of at least 30 days coal storage capacity. 9. Supercritical Technology The supercritical technology is fairly new to India. Mj s NTPC have installed power plant units with supercritical technology. The basic difference in supercritical boilers and sub critical boilers is that there would be no steam drum in supercritical technology unlike sub critical boilers. The feed water is directly made as steam without having a boiler drum. The pressure rating in a supercritical boiler is relatively higher (about 270 bar) as compared to sub critical boilers (about 130 bar). The materials of construction for pressure parts in supercritical boilers would also be superior compared to sub critical boilers. Height of the boiler with supercritical technology is also higher at least by 10 m (since there is no boiler drum and the entire steam has to be produced within the pressure parts) compared to a sub critical boiler.. The main advantage of adopting supercritical technology is gain in the heat rate, thereby requiring lesser coal for firing. Typically, the heat rates for power stations (considered for tariff computations) with supercritical boilers is about 2,450 kcaljkwh compared to about 2,500 kcaljkwh for sub critical boilers (about 2%-3% gain in heat rate). However, supercritical units entail higher main plant equipment cost of about 10% (Project cost increase would be around 3%-4%).Therefore, it is a trade off between the operating cost and capital cost. The supercritical technology power stations are relatively more sensitive to control systems adopted particularly in regard to quality of boiler feed water etc. In India, BHEL has proposed to manufacture and supply supercritical boilers in collaboration with Mj s Alstom and the TG units with Mjs Siemens. 10 Clean Development Mechanism (CDM) Benefits of Power Project. Clean Development Mechanism (CDM) allows emission reduction projects that assets developing countries in achieving sustainable "lldyull/, ~ n ~ f /).,~ ~ - ~ oil 0: Jaipur ~ ~ 4 r' ::: R' Z ~ ajastha:1~' "'~ ~ ~ '.,'I1f'Q.~\ <\

5 development and the generated Certified Emission Reductions can be used by the industrialized countries or companies. In view of adoption of supercritical boilers having higher efficiency (2.4%) as compared to that of sub-critical boilers, coal consumption per unit of power generation would be lower leading to reduction in C02 emissions. Further, investment cost of super critical boilers being higher, the projects based on such technology are likely to meet the CDM additionally criterion CDM Executive Board has already approved a methodology based on new coal fired power generating units with Supercritical steam parameters (ACM 0013; Versionl/NM005) and Central Electricity Authority (CEA) has also published a baseline database for catalyzing such development. RVUN would, therefore, endeavor to develop these projects as CDM Projects and would make efforts for availing the benefits of commercialization of the Carbon Emission Reduction (CERs) based on these projects. Main plant Equipment The steam generators of the 660 MW units would be 100% coal fired and would be rated to generate about 2170 t/hr each, of superheated steam at about 250 kg/ cm2 pressure and 568 C temperature. Reheat steam temperature would also be 568 C. Steam generators would be equipped with facilities for fuel oil firing for start-up and for flame stabilization at low loads. Steam turbine would be three cylinder tandem-compound machines,.. driving a turbo-generator at 3000 rpm to produce 660 MW rated output at 0.85 power factor at the generator terminals. The steam generators would be designed as semi-outdoor equipment while the turbine generator set with all auxiliaries and feed cycle equipment would be located indoor The power plant is expected to use coal with maximum of 40 % ash content and relatively low sulphur content. For the selected configuration of 2 x 660 MW units, a common RCC stack would be installed for steam generators to meet the requirements of the environmental regulations. The stack height would be 275 m. The steam generators would be provided with low NOx burners and hence the emission of oxides of nitrogen from the steam generators would be minimal. Further, The steam generators would be provided with electrostatic precipitators to limit the particulate matter in the flue gas to 50 m Nm 3. "iidyut ljt,.~'?- :f)-l.~ ~ Cl( Jaipur ~ I: R Z 5 ~ ajas!huil ;:. '<1\,~ ~'& ~. Q 0.\l''\

6 12.0 Environmental benefits of supercritical power projects Adoption of supercritical technology and higher operating parameters will result in higher efficiency leading to lower C02 & SOx emission per unit of electricity generation. Emission of other pollutants like NOx & SPM would also reduce with adoption of latest technology of low NOx burners, staged combustion, efficient ESPs etc Higher efficiency, besides leading to corresponding saving in coal consumption would also lead to lower Ash generation. The land requirement for ash dump areas would also correspondingly reduce and there would be reduction in auxiliary consumption Corporate Social Responsibility (CSR) Benefits of the Power Project 13.1 Govt. of Rajasthan accorded administrative approval to corporate social Responsibility of RVUNL vide their letter no P.16 (4) Energy /2009 dated The CSR policy shall be applicable to the Project Affected Persons (PAPs) and for the Project Affected Areas (PAAs) in respect of the existing Power Projects/ Stations of RVUN / its subsidiary companies which are m operation and the Power Projects under execution and to be developed in future by RVUN or its subsidiaries The aims & objectives of this Policy are as under - I. Improving socio-economic status of Project Affected Persons (PAPs). Il. "Providing opportunities for sustainable improvement in the fields of income generation, health, education, water & electricity, sanitation, communication and such other fields. Ill. To adopt a holistic approach to community development of Project Affected Areas and ensuring that the people of such areas improve or at least regain their previous standards of living. IV. Carrying out community development activities m a transparent and participative manner. V. Ensuring participation and consultation with the local public representatives and setting up of institutional mechanisms for carrying out CSR activities in Project Affected Areas Corporate Social Responsibility Activities The list of the activities covered under CSR policy is purely suggestive in nature and any other activities 0may also be taken up ~ idyll' lit Q 3?'.~? I')~ ::-' ~ "-.; er: Jaipur ~ ~ 6 y- er' Z ~ lijasrh.u ~. ~ e, ~/) ~.. flq 'V,f\

7 as per the need(s) of the Project Affected Persons/ Project Affected Areas to be assessed at the Project level. The list of CSR activities will be as under: i) Education: with emphasis on Primary education, Girl education and Adult education; ii) Drinking Water Supply: with emphasis on safe drinking water to villagers and other water related facilities; iii) Electrification of Villages / Electrification of Public Places; iv) Health care, such as Mobile clinics and Community health related services; v) Environment; vi) Social Empowerment; vii) Infrastructure development, such as construction of anicuts, roads, community halls, school buildings, health centers, sanitation facilities, etc.; viii) Sport(s) and cultural activities; ix) Generation of employment / Capacity building such as vocational training to local people; x) Grant/donation/financial assistance/ sponsorship to the reputed NGOs/ societies/local agencies involved in social development works; xi) Works related for preservation of 'heritage sites' in the Project Affected Area; xii) Empowerment of women for education, health & selfemployment; xiii) Providing relief to victims of Natural Calamities like Earth Quake, Cyclone, Drought & Flood situation etc; xiv) Distribution of efficient Chula(s) to the villagers; xv). Adoption of village(s) for overall development; xvi) Any other development works suggested by local Gram Panchyats / Panchayat Samities / District Administration / CSRI Committee; xvii) All works for creating community assets; 13.0 State Govt. Approval The state Govt. vide letter No. F.2(2) Energy /09 dated had accorded "Administrative & Financial" approval for setting up of coal based Greenfield Thermal Power project having 2x660MW capacity with the total project cost as Rs 7920 Crores Project Cost and Cost of Unit generation As indicated above, the Project cost of a power station using supercritical technology would be relatively higher from the point of view of adoption of superior technology, superior materials of ~~ 7

8 construction. Added to this, in India, the technology being adopted for the first time, there would be additional costs towards adopting and development of technology. The following assumptions have been taken while working out the enera rion cos t S. No. Particulars 1 Capacity of the Project 2x660 MW 2 Estimated project cost Rs Rs crs. per MW 3 Debt equity ratio 80:20 4 Term Loan Interest 1l.00 % 5 PLF&Aux. cnsumption 80% & 7.5% 6 Depreciation 5.28% 7 Delivered cost of coal Rs per MT 8 GCV of F Grade Coal 4500 kcl/kg duly washed The cost of generation of electricity and the saleable energy per unit during first year of operation works as- S. No. Particulars 1 Fixed cost Rs. l.56 per unit 2 Variable cost Rs l. 98 per unit 3 Total Cost Rs per unit 4 Levelised Cost Rs per unit 15.0 Sheet showing detailed calculations of cost of generation IS enclosed. Project Schedule Based. on expected deliveries of main plant and equipment, project implementation period would be 42 months from zero date to commercial operation date for the first unit and 45 months for the second unit. 8

9 '. RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED 2x660 MW Banswara Coal based Supercritical TPP at Village Phephar,Unit -1 &2 Table I Input Data Capacity 1320 MW ~ Aux. Cons. 7.5% Return on equity 0.0% PLF 80.00% Incentive 0.0% Gross Generation MUfyr. Income Tax rate 18.0% Net Generation MUfyr. Tax holiday 100% 5 yrs 100% for first 5 yrs & 70% for next five yrs Project Cost (Incl. IDC) 7920 Rs. Cr. Depreciation rate 5.28% Debt 80% 6336 Rs. Cr. Discount factor 11% Equity 20% 1584 Rs. Cr. Per MW Cost 6 O&M Charge 2.5% Term loan Escl. In O&M charge 1.00% Repayment period 15 Years Interest Rate 11.00% annual Heat Rate 2450 kcaljkwh GCV of Coal 4500 kcal/kg Working Capital Coal Cost (Incl.Trans.) 3 Rs./Kg Interest Rate 10.25% annual Secondary Fuel Requirement 2 ml/kwh Coal Requirements 2 month Specific density 0.9 gm/cc Secondary oil requirement 2 months Cost (Incl. Transportation) Rs./kL O&M charges 1 month Escl. In Fuel cost 2.00% annual Receivables 2 months Period upto COD 3.9 yrs spares 1% ~ Escalation on spares 4% <2-~ ~I

10 '. RAJASTHAN RAJYA VIDYUT UTPADAN NIGAM LIMITED 2x660MM Banswara Coal based Supercritical TPP at village- Phephar,UnH::-l&2 (Washed coal with GCV 4500 Kcal/Kg ) Table 11 Per Unit Tariff Total Depreciati Interest Provision Total Secondary Year Interest ROE Incentive O&M Coal Cost Variable Total Cost on on WC for IT Fixed Cost Oil Cost Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kWh Rs./kYVh Rs./kWh Rs./kWh ~ I I