SOUTHERN REGIONAL POWER COMMITTEE · 4.0 Copy of SRPC letter dated 26.12.2016 enclosing CEA letter...
Transcript of SOUTHERN REGIONAL POWER COMMITTEE · 4.0 Copy of SRPC letter dated 26.12.2016 enclosing CEA letter...
MoM of Phasing Plan for implementation of new Environmental Norms -12.01.2017 Page 1
SOUTHERN REGIONAL POWER COMMITTEE BENGALURU
Minutes of the Meeting on Phasing Plan for implementation of new
Environmental Norms
1.0 A Meeting on Phasing Plan for Implementation of new Environmental Norms
was held at SRPC, Bengaluru on 12.01.2017 with participation from CEA, KPCL,
TSGENCO, NTPC, NTECL, NLC, NTPL, IPPs, MPPs, SRLDC & SRPC. The list
of participants is given at Annexure-A.
2.0 Shri S R Bhat, Member Secretary, SRPC welcomed all the participants to the
meeting. He extended a special welcome to Shri B K Sharma, Chief
Engineer(TPE&CC), CEA. He stated that the following works had been assigned
to RPCs:
Phasing Plan for identified units for ESP upgradation
Phasing Plan for identified units for FGD installation
Confirmation from power utilities that all other units are also meeting the
revised norms and therefore, do not require any intervention
Within 1st week of February 2017, the Phasing Plan needs to be
communicated to CEA. Next high level meeting would be convened after
receiving the Phasing Plan from all the RPCs.
Plan for Installation of low NOx system in these coal based thermal units
during next over-hauling positively.
He also added that the incremental tariff for ESP upgradation and FGD
installation, indicated in minutes of 2nd meeting was computed presently at 62%
PLF and needs to be reworked at 50% PLF or lesser value as per average PLF
of the unit.
3.0 Shri B K Sharma, Chief Engineer (TPE&CC), CEA appraised the participants
about the interactions of MoP / CEA with MoEF. CEA had arranged meeting of
Power Utilities, Manufacturers and other stakeholders in this regard. Issues
concerning Power Sector stakeholders were taken up by MoP with MoEF in two
meetings held between them. For the existing units, though time extension and
NOx norm revision had been requested, no notification had been issued to this
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effect till date. Therefore as per statute, all the older units are to comply with the
revised norms by 07.12.2017. For new units, which are going to be
commissioned after 01.01.2017, more stringent norms have been notified, Time
extension to meet the revised norms had also been sought but there has been no
notification to this effect. To address various issues, a committee was
constituted headed by Chairperson, CEA by MoP in September 2016 to prepare
a phasing plan for implementation of new environment norms. Two meetings
were held on 21.10.2016 and 13.12.2016 and units were identified for ESP &
FGD upgradation and for NOx control. The Committee has been able to impress
upon MoP that by installing FGD (wherever space is available), the SPM level
could also be reduced apart from reducing SOx emissions. As such these units
will be considered for installation of FGD for controlling both SOx and SPM
emissions. Further units where adequate space for installing FGD is not
available and therefore these units can not comply with the new SOx emission
norms, it would not be prudent to incur additional expenditure for meeting
emission norms Partially for only SPM and NOx and as such phasing of ESP
upgrade and installation of de-NOx system for such units is deferred.
4.0 Copy of SRPC letter dated 26.12.2016 enclosing CEA letter dated 22.12.2016 is
enclosed at Annexure-B. Copy of MoEF&CC notification dated 07.12.2015 is at
Annexure-C. The following issues were deliberated during the meeting:
Most of the generators expressed concern on meeting NOx norms of 300
mg/Nm3 for the existing generators.
It was generally agreed that reduction of NOx emissions to the level of 600
mg/Nm3 and 450 mg/Nm3 for units commissioned before 31.12.2003 and after
31.12.2003 respectively could be feasible with best available technology.
It was informed that Eight units of NTPC had been identified under a Pilot
project for establishing efficacy of globally available SCR technology to
reduce NOx emissions with Indian coal. The results of this project would be
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known after two years and then MOEF&CC would be requested to reviews
the specified norms of 300 mg/Nm3 and 100 mg/Nm3.
MoP has been taking up the issue for time extension to meet the norms for
the existing units as well as for the units which are commissioned after
01.01.2017.
Low NOx system/ Low NOx burners are to be installed by thermal units
positively during next over hauling period. All generators confirmed that
modification would be taken up after August 2017 (keeping in view tendering
time etc) along with the coming next-overhaul.
On a query from generators about the sample and measurement of SOx and
NOx, CEA clarified that the flue gas sample is to be taken from stack and
results of SOx and NOx emissions are to be normalized at 6% O2 level (as an
international practice). If required, CEA would issue clarification in this
regard. CEA/MoP had been requesting MoEF to come out with a standard
testing procedure/guideline to remove such ambiguity.
Generators expressed that considering the new stringent emission norms, the
units meeting these norms need to be exempted from prevailing minimum
chimney height requirement of 275/220 mtrs. Extra cost to meet the norms
would only make power tariff dearer which would get passed to end
consumers. The chimney height norms need to be redefined keeping in view
revised environmental norms and industry practices internationally. Issues of
using the cooling tower for flue gas dispersal, chimney lining, gas to gas
heater etc were also discussed. CEA clarified that the MOP has already
taken up this issue with MOEF&CC and anticipating necessary chimney
height exemption.
Generators expressed concern that units coming up from January 2017 need
time line extension for retrofitting pollution control equipments for compliance
of new environment norms. These units had been planned and implemented
keeping in view earlier environment norms. CEA clarified that MOEF &CC
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has been requested to give reasonable time extension for new plants coming
up after 1.1.2017 onwards. However, no amendment is issued so far.
Generators stated that some new units which were planned to be
commissioned during 2016 had slipped to 2017 and could be given
exemption. CEA stated that relaxation of norms for such units would not be
feasible and revised norms as applicable would have to be met by the units
getting commissioned from January 2017.
Generators stated that with the wet FGD, the water consumption was likely to
go up by 0.2-0.3 m3/MWh and the revised norms of specific water
consumption of 2.5 m3/MWh could not be met. CEA stated that CEA/MoP
were aware of this issue and requested MOEF to revise specific water
consumption limit to 3.0 m3/MWh for new units. It was also noted that Coastal
plants using sea water would be exempted from this norm.
Generators stated that some older units had already recovered their capital
cost, while the newer units would be required to meet the norms which had an
additional impact of 30-50 paise/unit. Thus a level playing field needs to be
ensured by the government for all stake holders. Some sort of cess etc could
be thought off which could compensate some part of the additional expenses.
The units having PPA could approach the respective commission for tariff
capitalization but for merchant plants without PPA, the power would become
commercially non-competitive. If more than 120,000 MW of FGD was to be
installed, it could cost more than Rs.50-60 thousand crores and most of the
works would be taken up by firms outside the country (as most likely only
10% capacity is available with Indian companies). Meeting of the stake
holders needs to be called by MoP to address these concerns.
CEA stated that many of the units are on the verge of retirement or would be
phased out, as the investment for FGD, installation in such units is not
economically viable. Investment decision has to be taken considering the
balance useful life of the unit (preferably investment in units having age of
MoM of Phasing Plan for implementation of new Environmental Norms -12.01.2017 Page 5
more than 16-17 years may not be economically justified). FGD installation
for about 15-20,000 MW capacity/year could be feasible. It was informed by
CEA that despite regular follow up with MOP, no firm commitment of financial
assistance from NCEF or PSDF or any other fund has been made.
Some of the generators expressed that though their units were old (more than
16 years) but were performing well and hence they need not be phased out.
It was clarified that there was no compulsion on phasing out but the new
norms were to be complied based on the vintage of the unit.
On queries of availability of Lime stone for FGD operation, CEA informed that
information regarding state-wise availability of lime stone is sought from
Ministry of Mines and same will be shared with Generators on receipt.
Regarding disposal of Gypsum produced by FGD operation, CEA informed
that MOEF had been requested to issue Guidelines for utilization of Gypsum
and notify the mandatory use of gypsum produced by power sector by cement
industries.
Some of the generators stated that the generators complying with the
environment norms need to be given preference in Merit Order Dispatch
(MOD).
SEL vide letter dated 07.01.2017 (Annexure-D) had informed that their units
were meeting the norms. MEPL vide their mail dated 12.01.2017 had
informed their units were meeting the revised norms (Annexure-E).
It was noted that NLC TS-II Exp units (2x250 MW) were meeting the SOx
norms but were not meeting the SPM norms. These units had not figured in
FGD installation list. They need to take up ESP up-gradation Phasing Plan.
5.0 After deliberation, the Phasing Plan for FGD installation was firmed up. Since
APGENCO, TANGEDCO, HNPCL had not participated, it was suggested to
collect the information of Phasing Plan and submit to CEA by 1st week of
February 2017. CE, CEA requested all the generators to take up the activities
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earnestly. Norms relaxation (except for NOx was unlikely) however, relaxation
on time was being sought.
6.0 MS, SRPC thanked all the participants for their active participation. He stated
that the firmed up Phasing Plan would be communicated for comments and
subsequently the same would be communicated to CEA.
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