SUGAR COGEN PPT PPP NTPC DIM MNRE 25APR15
Transcript of SUGAR COGEN PPT PPP NTPC DIM MNRE 25APR15
PRESENTATION ON SUGAR COGEN
R.K.KAULChief Energy BusinessSaraya Industries LimitedNew [email protected] ,[email protected] (M) 9810345642,
PUBLIC PRIVATE PARTNERSHIP
SUGAR COGENERATION ON BOOT BASISISSUES , TECHNICAL & FINANCIAL ANALYSIS
``ONLINE ``
CONTENTS
ENERGY RESOURCES & SCENE IN INDIA
COGEN / TRI GEN BASIC DEFINITION / RANKINE CYCLE
PPP MODEL GIVE AND TAKE
BOOT MODEL –PUBLIC PRIVATE PARTNERSHIP
BASIS OF PROJECTS EVALUATIONS- THE MILLS
SUGAR BASE DATA – OPERATIONS-----REAL TIME ANALYSIS
TECHNOLOGY / HEAT MASS BALANCE / POWER BALANCE/STEAM BALANCE
REVENUES / COSTS / PBDIT / RETURNS/CASH FLOWS
SUMMARY / WAY FORWARD
ENERGY RESOURCES
BAGASSE
OTHER BIOMASS
RICE STRAW
WHEAT STRAW
MUSTARD HUSK
SUBABOOL
CANE TRASH
WOOD CHIPS
COCONUT SHELL
COAL INDIAN
COAL IMPORTED
IN SUGAR INDUSTRY
TOTAL RELIANCE ON SUGAR OPERATIONS
NOT POSSIBLE
NATIONAL ENERGY DATA
POWER GENERATION RESOURCES- MW
102,452.75
36,863.00
4,560.00
15521
THERMAL
HYDRO
NUCLEAR
RES
POWER GENERATION RESOURCES- MW
93114
36158
4120
12194
THERMAL
HYDRO
NUCLEAR
RES
NATIONAL ENERGY DATA CONT…..
STATUS ENERGY NEED STANDS AT 2.75-3.00 LAC MW- NEXT 2-4 YRS SUPPLY STANDS AT 1.5 LAC MW GROWTH RATE >7.0 to 8.0 % DEMAND SUPPLY GAP WILL CONTINUE / INCREASE PRESSURE ON SAVING ENVIRONMENT SIZE OF BUSINESS BIG BUSINESSES KEEN TO HAVE A CUT OF THE BIG PIE RENEWABLE POWER – THRUST WORLD OVER HAVES & HAVE NOTS - GOVT/COOP/ PVT SEC OVERALL ENVIRONMENT CONDUCIVE PVT . SECTOR READY TO INVEST
BOOT IS AN
OPTION
SUGAR COGEN
HAS POTENTIAL
SUGAR COGEN STATUS Total Sugar Mills 526 (OP) / 695(INST) Total TCD 2.5 Mn TCD Cogeneration potential – 8000 to 10000 MW Present Power Export - 3500 MW
BALANCE POTENTIAL – 3000 TO 4000 MW INVESTMENT OPPORTUNITY- 15000 CR RS
PP MODEL BASICS……. BOOT – BUILD OWN OPERATE TRANSFER ITS GIVE AND TAKE MODEL CPMPLETE TRANSPARENCY ADMINISTRATIVE / TECHNICAL HELP ACCURATE MEASUREMENTS TIMELY DOCUMENTATION
TRUST & FAITH
COGEN / TRIGEN DEFINED
Cogen is Simultaneous generation and use of electricity and heat
Tri Generation is simultaneous generation and use of electricity ,
heat , and cooling
Both far superior in efficiency as compared to independent generation
Should be used where all forms of energy are required
ITS LIKE CO-EDUCATION –SAME TEACHER ( ENERGY)
PPP - BOOT ISSUES
POLITICAL WILL ADMINISTRATIVE / BEUROCRATIC WILL LOCAL MILL BOARD WILL INVESTORS WILL PROJECT DEVELOPERS WILL PROJECT VIABILITY- FUEL / PRICING
PPP- BOOT MODEL:
Operates its own sugar plant as usual
Invites Project developer to setup cogen project
Give designated land-lease free of cost
Gives Free water Gives Free Bagasse All legal
documents/resolutions
Commits to set up cogen Does technical & legal
deligence Brings all capital at its own
cost and risk Gives power & steam free
for mill operations Provide capital for mill
modernisation/capacity enhancement
Gets all legal clearances
The Mill
The Project developer
PPP- BOOT MODEL:…cont..
Allows Connectivity to system Agree on mill modernisation-
work as well as costs Terms if steam/power norms not
followed Pass Board resolutions as per
need Agree on concessation period,
revenue sharing/royalty on cane crush
Complete project development including design, order, erection and commissioning
Procures balance of fuel Share revenue as per
agreement Operate plants to optimum
capacity Hands over the plant to mill
at ZERO COST after concessation period
The Mill
The Project developer
BOOT ISSUES CONT…… GUARANTEE FOR BAGASSE AVAILABILITY-MINIMUM QUANTITY MINIMUM DAYS OF SEASON OPERATION EXCESS POWER / STEAM DRAWN BY SUGAR PLANT REVENUE SHARING v/S CANE CRUSH ROYALTY PRICE FOR EXTRA STEAM / POWER- PSEB /EXCHANGE RATES FUNDING FROM SDF – GOVT. HELP/ POLICY CHANGE SENSITISING BANKING FOR THESE PROJECTS-DEDICATED FUNDS MORTGAGING OF ALLOTED MILL LAND BOOT PERIOD – 15/20/25/40 YEARS MORATORUIM FOR RETURNS TO SUGAR 2-3 YEARS ENHANCED RATE OF POWER TO GRID – some development -CERC TIME FOR IMPLEMENTATION INTEGRATION OF SUGAR / COGEN/ CAPACITY ENHANVEMENT – PAYMENT GUARANTEE BY GRID
BASIS OF EVALUATION
MILL PERFORMANCE OVER LAST 6-8 YEARS ACTUAL CANE CRUSH AND BAGASSE AVAILABILITY NO OF DAYS OF OPERATION IN A YEAR - SEASON & OFF SEASON PRESENT / FUTURE STEAM & POWER CONSUMPTION COGEN & MODERNISATION COST COST OF MONEY, RETURNS TO SUGAR PLANT SELLING POWER COST & CDM / REC BENEFITS TECHNOLOGY / PLANT PARAMETERS / INTEGRATION POWER OFFTAKE / CONNECTIVITY/DISTANCE TO GRID SUB STATION STANDARDISATION OF PLANT CONFIGURATION MILL MODERNISATION POTENTIAL PROJECT DEVELOPERS INVESTMENT PHILOSOPY INVESTORS RISKS INVOLVED
YEARLY CANE CRUSHED
3.34
3.733.41
3.16
1.944
1.22 1.234
2.1822.4
1.802.00
2.80
5.1
4.4 4.3 4.4
3.27
2.482.83
3.417 3.52
2.80
3.50 3.50
2.562.732
3.118
2.7
1.66 1.641.858
2.6 2.72.50
2.80 2.80
0
1
2
3
4
5
6
99-00 00-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
MORINDA
NAWASHAHR
GURDASPUR
AJNALA
BATALA
PROJECTED
AREA UNDER CULTIVATION - HECTARES
1088511679
13446
11584
8280
46895122
6860
8152
6000
75008000
13718 1359614084
13373
10615
5960
7022
8089
9549
1200013000 13000
8364
9825
10902.4 10948
8084.4
5912.4
75208172
1023111000
1200011500
0
2000
4000
6000
8000
10000
12000
14000
16000
99-00 00-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
MORINDA
NAWASHAHR
GURDASPUR
AJNALA
BATALA
PROJECTED
ANNUAL BAGASSE GENERATION
8684096980
8866082160
50544
31720 32515.9
57124.7665016
5040056000
78400
153000
131010 128400 131070
99179.1
68026.4
82098.3
101245.71 102291.2
81200
101500 101500
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
99-00 00-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
MORINDA
NAWASHAHR
GURDASPUR
AJNALA
BATALA
PROJECTED
DAYS OPERATION
130
150
132 127
79
5268
88
107
80
120 120
192
165 166 169
128
98110
145154
122
155 155
128137
161146
91 91100
138152
120
150 150
0
50
100
150
200
250
99-00 00-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
MORINDA
NAWASHAHR
GURDASPUR
AJNALA
BATALA
PROJECTED
ANALYSIS…..
55
2
4
3
54
5
3
3
3
012345
TOTAL CULTIVATABLE AREACONSISTENANCY OF CANE
CRUSH
BAGASSE GENERATION
CANE YIELD
AGE OF PLANT
PLANT AVAILABILITYINFRASTRUCTURE
CAPACITY COMFORT
TECHNICAL BACKUP ATSITE
SPACE AVAILABILITY
FARMER CONTROL
Series1
GURDASPUR SCORE
02468
101
2
3
4
5
6
78
9
10
11
12
13
14
GURDASPUR SCORE
MORINDA SCORE7.5
6.57
7.5
7
7.57
8
67
6
10
0
2
4
6
8
101
2
3
4
5
6
7
8
9
10
11
12
13
14
MORINDA SCORE
7.088.32 8.45
7.38 7.196.50
8.50
MORINDA NAWANSHAHRGURDASPUR AJNALA BATALA
S1
MILLS COMPARITIVE RATING
Series1
NAWANSHAHR SCORE
0
2
4
6
8
101
2
3
4
5
6
7
8
9
10
11
12
13
14
NAWANSHAHR SCORE
AJNALA SCORE
76
7
7
8.5
7.5
8.588
9
50
2
4
6
8
101
2
3
4
5
6
7
8
9
10
11
12
13
14
AJNALA SCORE
BATALA SCORE
02468
101
2
3
4
5
6
78
9
10
11
12
13
BATALA SCORE
DECISION MAKING PROCESS
Prefeasibility / DPR/Financial Closure
Pre Feasibility AnalysisPre Feasibility Analysis•Establish Mill capacities/operating parametersEstablish Mill capacities/operating parameters•Establish Fuel availability-season & Off seasonEstablish Fuel availability-season & Off season•Establishing Capacity viabilityEstablishing Capacity viability•Technology choicesTechnology choices•Basic Flow ChartBasic Flow Chart•Fuel flexibility and mixFuel flexibility and mix•Water quality and availabilityWater quality and availability•Ash handling and DisposalAsh handling and Disposal•Environmental concernsEnvironmental concerns•Capital cost estimatesCapital cost estimates•Cash Flow requirementsCash Flow requirements•Financial analysis-Loan Financial analysis-Loan repayments,IRR,DSCR,Taxes,Balance sheet,P&l statements repayments,IRR,DSCR,Taxes,Balance sheet,P&l statements etcetc•Sensitivity analysiscSensitivity analysisc
Detailed Project ReportDetailed Project ReportPower Purchase AgreementPower Purchase AgreementInformation MemorandumInformation MemorandumDebt Syndication/Financial Closure/Cash FlowsDebt Syndication/Financial Closure/Cash Flows
REAL TIME INTEGRATED ANALYSIS
Sugar Operations data Heat & Mass Balance Diagram Power & Steam Balance- Exports Capital Cost Estimation Revenue Generation & Sharing
mechanism Expenses Depriciation calculation, Taxation,Loan
repayments IRR & DSCR Calculations Balance Sheet,Cash Flows Break Even point Sensitivity Analysis Project Summary ……………
ON LINE ANALYSIS SUGAR OPERATION PARAMETERS COGEN CAPACITIES / PARAMETERS HEAT & MASS BALANCE PROJECT COSTS FINANCIAL ANALYSIS
………..FOLLOWS
BASIC SUGAR PLANT DATA
BASIC RANKINE CYCLE
There are four processes in the Rankine cycle, each changing the state of the working fluid. These states are identified by number in the diagram to the right. Process 1-2: The working fluid is pumped from low to high pressure, as the fluid is a liquid at this stage the pump requires little input energy. Process 2-3: The high pressure liquid enters a boiler where it is heated at constant pressure by an external heat source to become a dry saturated vapor. Process 3-4: The dry saturated vapor expands through a turbine, generating power. This decreases the temperature and pressure of the vapor, and some condensation may occur. Process 4-1: The wet vapor then enters a condenser where it is cooled at a constant pressure and temperature to become a saturated liquid. The pressure and temperature of the condenser is fixed by the temperature of the cooling coils as the fluid is undergoing a phase-change.
COGEN HEAT MASS BALANCE- OFF SEASON
BALANCE OF POWER
Balance Of Bagasse
Balance Of Steam
PROJECTED CAPITAL COST
KEY PROJECT PARAMETERS….cont
PROJECT REVENUES / CASH FLOWS
PROJECT RETURNS
IDC
ADVANTAGES TO SUGAR PLANT
1. The Cooperative Mill gets complete power plant at ZERO cost
2. Mill gets modernized in terms of power & Steam consumption
3. Plant gets reliable power steam –Improved quality and better efficiency
4. Improvement in crushing capacity –improved revenues5. Additional revenue by way of sharing/Royalty on cane
crush6. Improved Pollution Control with ESP7. Employment to Local people 8. Better returns to cooperative members9. Other biomasses used- revenue to farmers10.Environment protection – as crop residue may not be
burnt
SUMMARY WAY FORWARD
NEED FOR MORE CLEAN POWER IN THE COUNTRY RENEWABLE ENERGY FOCUS POLITICAL/ADMINISTRATIVE /LOCAL ``WILL`` REQD BOOT A WIN WIN PROPOSITION IF IMPLEMENTED
PROPERLY ..TRANSPARENCY …UNDERSTANDING BOOT PROCESS TO BE STANDARDISED FEASIBILITY ANALYSIS UTMOST IMPORTANT
ALL ISSUES PRE DOCUMENTED & AGREED GO FOR IT WITHOUT LOOSING TIME
GO FOR IT WITHOUT LOOSING TIME
THANK YOU