Indo-German Energy Efficiency Programme for R&M in Thermal Power Stations

Transcription

1 Indo-German Energy Efficiency Programme for R&M in Thermal Power Stations Andreas Berkhoff Project Manager, Energy Sector and Policy Division, Asia KfW Development Bank Gelsenkirchen, 7 November 2006

2 2 Agenda KfW Development Bank Who we are KfW Development Bank and the Indian Energy Sector The market for energy efficient R&M in India Indo-German Energy Efficiency R&M Programme

3 We are part of KfW Bankengruppe. 3

4 4 Key Figures for KfW Entwicklungsbank. Staff Ongoing projects Representative offices abroad Commitments (2005) of which KfW's own funds Disbursements (2005) of which to German companies Loans outstanding of which budget funds of which KfW funds 374 over 1,400 in over 100 countries 50 EUR 1.9 billion EUR 583 million EUR 1.3 billion (of which EUR 1.0 billion from budget funds) 35% EUR 19.1 billion EUR 16.3 billion EUR 2.8 billion

5 5 Relationship between BMZ and KfW BMZ intergovernmental agreement commitment of trust funds and KfW funds Partner Country Mandate provision of trust funds KfW financing agreement monitoring and evaluation of project Project-Executing Agency KfW's partners are public authorities or stateowned enterprises

6 6 Our approach to projects Socio-economic/ cultural impacts, environmental impacts, gender Goals Project Overall conditions (legal, institutional, macroeconomic) issues Risks Efficiency of the Feasibility of the project executing agency We combine banking and development-policy expertise We accompany our partners during all stages of the project (preparation, tendering, implementation, operation and ex-post review)

7 KfW Development Bank Energy Sector (Commitments incl. marketfunds) 7

8 8 Agenda KfW Development Bank Who we are KfW Development Bank and the Indian Energy Sector The market for energy efficient R&M in India Indo-German Energy Efficiency R&M Programme

9 9 Objective of Development Cooperation with India s Power Sector Why do we support the Power Sector in India? Crucial for maintaining current GDP growth rate and for reaching the Millennium Development Goals in India. Increasingly of global importance whether India s growth can be managed in an energy efficient and ecological sustainable manner. Strong interest on Indian side to facilitate the technology transfer from Germany to India. German Financial Cooperation has been India s partner in the Energy Sector for nearly 40 years: Supported energy sector with over EUR 1.26 billion budget funds Some of the partners which have been supported in the past: Neyveli Lignite Corporation: Neyveli mine and power station NTPC: Dadri, Singrauli, Farakka, Ramagundam State Electricity Boards: Korba (Chattisgarh), Uran (Maharashtra)

10 10 Current focus: Energy Efficiency & Renewable Energies Currently, German Financial Cooperation focuses on energy efficiency and renewable energies (ongoing projects: EUR 660 million) Projects in Energy Efficiency: Energy Efficiency in Power Distribution (REC) Sector Reform Programme 1 (APGenco)- supercritical th. powerstations Energy Efficiency in thermal power stations Projects in Renewable Energies: Rehabilitation and modernization of hydro power stations (PFC I / PFC II) Renewable energies (IREDA I) Biomass based power generation Indo-German Energy Forum Officially inaugurated in April 2006, platform to discuss topics of mutual interest Supplements ongoing and future development cooperation : Indian delegation visited Germany for study tour on energy efficiency

11 11 Agenda KfW Development Bank Who we are KfW Development Bank and the Indian Energy Sector The market for energy efficient R&M in India Indo-German Energy Efficiency R&M Programme

12 12 Rehabilitation and Modernization (R&M) of Thermal Power Stations in India Market Size: Around 20 % of coal fired power stations are envisaged for Rehabilitation and Modernization (R&M) until the year State owned utilities have on average: PLF less than 70 %, Station Heat Rates (SHR) of about 3,000 kcal/kwh and an Operating Availability of 78 % The main objective of the current R&M Programme is To sustain / maintain plant performance, mainly measured in terms of increased plant load factor (PLF) and availability To increase the life time of the power stations There is scope for additional energy efficiency measures, which go beyond restoring plants to their original operating capacity, and include replacing some equipment and systems with uprated replacements operating at higher outputs with low required fuel inputs.

13 13 Market Barriers for energy efficient R&M Market barriers for carrying out R&M with a special focus on energy efficiency in state owned power stations: 1) High energy shortage in certain states: supply and price risk during outage time 2) Financial distress of state power utilities: short term orientation, insufficient funds for a proper O&M concept 3) Low coal prices / low tariffs for generation: limit financial attractiveness of R&M 4) Environmental problems: need to be addressed on parallel

14 14 Agenda KfW Development Bank Who we are KfW Development Bank and the Indian Energy Sector The market for energy efficient R&M in India Indo-German Energy Efficiency R&M Programme

15 15 Objective of the Indo-German Energy Efficiency Programme Objective: To demonstrate the positive impact of energy efficiency measures as part of R&M in coal fired power stations. Indicators to measure impact: Improving Heat Rate Increasing Output Reduced specific coal consumption Reducing CO2 Emissions Reducing future O & M Costs Increasing Availability Extending Life Time Focus on: State owned utilities, 210 MW Blocks, LMZ turbines Scope: Turbine Boiler Auxiliaries

16 16 Project Concept / Status of Preparation 1) Model Calculation Study Estimated technical and financial impact of a typical R&M package Transfer of international experience on the specific Indian context Discussion of the results with all involved stakeholders Implementation by Indo-German consulting consortium until January ) Dissemination of Results and Rapid Assessment Dissemination of Model Calculation s results to increase awareness Shortlisting of interested and qualified candidates 3) Baseline Assessments Analysis of status quo identify / quantify main efficiency improvements Financed under German Technical Cooperation free of cost for utilities

17 17 Project Concept / Status of Preparation 4) Feasibility Studies Challenge will be to suggest how R&M tasks can be coordinated 5) Pilot Projects For the first phase: loan amount of EUR 90 million at concessionary rates, forwarded to the utilities as per Indian regulations A second phase might be taken into consideration

18 18 Additional services offered by German Financial Cooperation Additional financing can be made available to support this project: Study & Expert Fund: grant for preparatory activities like feasibility studies Funds for training and exposure visits Accompanying measures: grant for technical assistance during implementation Cooperation with German Technical co-operation (GTZ) and bi- and multilateral financial institutions.

19 19 Indo-German Energy Efficiency Programme for R&M in Thermal Power Stations How to contact us: Thank you! In Germany: KfW Development Bank Palmengartenstraße Frankfurt am Main Germany Phone: +49 (0) Fax: +49 (0) In India: KfW Development Bank Jor Bagh Delhi India Phone: +91 (0) Fax: +91 (0) mailto:

20 20 BACKUP SLIDES BACKUP

21 21 Financial Instruments. Financing made-to-measure for every partner country. Financial Cooperation (FC) Budget Funds (2005: EUR 1,233 million) KfW Funds (2005: EUR 583million) EUR 1,077 million EUR 157 million EUR 336 million EUR 247 million Grants: 2005: EUR 770 million Concessional Loans: 2005: EUR 307 million Concessional Finance FC Development Loans: 2005: EUR 493 million (Mixed finance, composite finance, reduced-interest loans) FC Promotional Loans

22 22 KfW Development Bank: Our tasks. We advise the German government in development-policy issues; in particular, we support its country and main-focus sector strategies. We participate in the selection, preparation and appraisal of projects (the decision on financing any project lies with the German government). We accompany projects on our own responsibility and supervise the use of the funds provided.

23 23 KfW Development Bank: 35% of commitments go to Asia. Distribution of overall commitments in 2005 by region (in EUR million) 15% 9% 17% 24% 35% Europe Asia/Oceania Sub-Saharan Africa North Africa/Middle East Latin America

24 KfW Development Bank ODA-Financing Energy Portfolio (Commitments incl. marketfunds) 24 million , ,4 416, , ,