slide 1 cerc discussion paper recommendations on operating norms for thermal / gas / hydel stations...

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CERC DISCUSSION PAPER

RECOMMENDATIONS ON OPERATING NORMS FOR THERMAL / GAS / HYDEL

STATIONS AND TRANSMISSION SYSTEM.

APERC

AUXILIARY POWER CONSUMPTION

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DescriptionSuggested by

CERCRecommendation

With cooling towers 200 MW 9.5 % * 8.5 %

Without cooling towers 200 MW 9.0 % 8.0 %

With cooling towers 500 MW (Steam driven pumps)

8.0 % 7.5 %

With cooling towers 500 MW (Electrical driven pumps)

9.5 % 9.0 %

Without cooling towers 500 MW(Steam driven pumps)

7.5 % 7.0 %

Without cooling towers 500 MW (Electrical driven pumps)

9.0 % 8.5 %

for units less than 200 MW CEA / CERC to evolve norms

Auxiliary Power Consumption (Coal Plants)

* Actually obtained in respect of two projects (i) M/s BPL Power Project (ii) M/s APGENCO - RTPP II.Colony consumption and construction power shall not be included Slide 3Slide 3

Suggested by CERC

Recommendation

Stabilization period:a) Open Cycleb) Combined Cycle

1.53.5

1.53.5

Subsequent period:a) Open Cycleb) Combined Cycle

1.03.0

1.03.0

Auxiliary Power Consumption (Gas Plants)

Colony consumption and construction power shall not be included

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Suggested by CERC

Recommendation

(a) with rotating exciters mounted on shaft.

0.2 % of energy generated

(b) With static excitaton system

0.5 % of energy generated

(a) with rotating exliters mounted on the shaft. 0.4 %(b) with static exciters. 0.7 %(iii) Transformation losses. 0.5 %

Details:

(i) Surface Hydro Stations.

(ii) Under ground hydro stations

This can be accepted as it is. However Colony consumption and construction power shall not to be included.

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STATION HEAT RATE

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Suggested by CERC

Recommendation

Stabilization period

---

Subsequent period

2500 (*)2350 #

Super critical units

(*)2050

Stabilization period

2900

Subsequent period

2000 (*) 1850

Whether the heat rate be related to Manufacturer's guarneeted rate.

(a) Manufacturer's guarneeted rate with 5 % degradation or figures indicated at (*) which ever is less(b) For despatch Instructions for 60% of the installed capacity

** Station Heat Rate (kcal / kWh) (Coal Plants)

Station Heat Rate (kcal / kWh) (Gas Plants)

** In respect of units of 500 MW and above where the BFP is electrically operated the heat rate of 40 kcal / kWh shall be reduced from SHR. # Actually obtained in respect of RTPP. Slide 7Slide 7

SPECIFIC OIL CONSUMPTION

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Suggested by CERC

Recommendation

Stabilization period 5.0 (existing)

Subsequent period 3.5 (existing) * 2.0

Associated Despatch instructions

50% (existing) 60%

Whether the norm can be

reduced from 3.5 to 2 ml / kWh

Yes

Specific Oil Consumption (Coal Plants) in ml / kWh

*As approved in case of RTPP.

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INCENTIVES

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Suggested by CERC Recommendation

Incentives Coal / Gas: As at present :-(A) Level80 % availability for fixed cost recovery and incentives to start from 77 % PLF taking backing down into accountIncentives at avoided cost and not as a percentage of equityIncentives, therefore to be as a percentage of fixed cost per kWh and the avoided cost to be shared between utility and beneficiary

(A) Level :Coal Plants: above 80% PLF (*)

Gas / Naptha Plants: above 85% PLF (**).

(*) Actually obtained in respect of M/s BPL Power Project in AP.

(**) Actually obtained in respect of 5 gas based projects (i) M/s BSES Andhra Power Limited (ii) M/s Vemagiri Power Generation Ltd (iii) M/s Konaseema EPS Oakwell Ltd (iv) M/s Gautami Power Project Ltd (v) M/s GVK Industries Ltd. Slide 11Slide 11


(B) Rate:Revenue neutrality to the existing NTPC stations incentive beyond 77% is fixed at 50% of the fixed cost per kWh with a cap rate of 21.5 paise per kWh. The above reduced by 50 % above 90% PLF to avoid flogging of machines.

(B) Rate:(i) The present incentives allowed by APERC are not uniform (ii) The incentive range from a maximum of 105 paise to 14 paise in AP.(iii) The lowest incentive obtained for gas is 14 paise at 90% PLF and 21.5 paise for Thermal stations.

Proposal: Whether to delink Incentive totally from fixed cost and Incentive for generation above target PLF at a flat rate (ps/kWh) can be adopted.

Incentives can be at a fixed flat rate (ps/kWh) to ensure uniformity. A maximum of 21 ps/kwh and 14 ps / kWh can be prescribed and for coal and gas plants respectively.

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Incentive Hydel:Suggested formula (by NHPC): Incentive = Actual peak time generation * Incentive in Rs / kWh

As at present, in AP Genco & AP Transco PPA the fixed cost based Incentive as per CERC order dated 08-12-2000 is adopted. The new proposal of CERC can be accepted.(CI A – CI N)

100

WhereCI A = Average of daily capacity indexes over one year (CERC notification dated 26-03-2001.CI N = Normative capacity Index = 85%.

Daily Capacity Index = Declared capacity in MW

Maximum available capacity in MWx 100

Declared capacity : capacity available from the plant over peaking hrs in a day shall not be less than 3 hrs in any day. Slide 13Slide 13

Advantages:

i) Incentive not related to capital cost.

ii) Incentive relates to peak time generation as well as capacity index.

iii) There will be higher incentive for storage / pondage type of Hydro stations compared to run of the river schemes.

iv) Incentive does not decrease for older plants.

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Incentives - Transmissiona) Existing1% of the equity for every 0.5% raise in availability above 98% (However in the range of 99.51% to 99.75% incentive is 1% of equity)Alternative Proposalsa) Target availability shall be reduced to 95% (PGCL)b) For Transmission loss above a level disincentive shall apply. c) No incentive

Existing pattern can be continued.

Not acceptable. It shall be enhanced to 98.5 %.

Not required

Not accepted

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Regional TariffProposalAggregating the fixed charges of more than one power station in a region followed by a common variable charge

RecommendedStation wise tariff is always preferable except prices obtained through competitive bidding.

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O & M EXPENDITURE

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O & M Expenditure(Generation)

2.5% with annual escalaton based on economic parameter WPI & CPI

A Cap of 2.5% with annual escalaton based on economic parameter WPI & CPI

O & M Expenditure(Transmission)

1.50% 1.25%

At an availability98% 98.50%

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slide 1 cerc discussion paper recommendations on operating norms for thermal / gas / hydel stations...

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