Role of Wärtsilä in Indian Energy Sector, Rakesh Sarin, Wärtsilä India


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Finnish-Indo Cleantech Business Seminar 12.6.2013, seminar material

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Role of Wärtsilä in Indian Energy Sector, Rakesh Sarin, Wärtsilä India

  2. 2. This is Wartsila …12 June 2013 CORPORATE PRESENTATION 20132 © WärtsiläNearly 19,000 professionals,114 nationalities in 70 countries,present in 160 locations
  3. 3. SERVICESPOWERPLANTSSHIPPOWEROur business areas12 June 2013 CORPORATE PRESENTATION 20133 © Wärtsilä
  4. 4. Power PlantsWe provide superior value to our customers with ourflexible, efficient and environmentally advancedenergy solutions, which enable a transition to a moresustainable and modern energy infrastructure.12 June 2013 CORPORATE PRESENTATION 20134 © Wärtsilä
  5. 5. Quality of electricity – a comparative√ Matured markets with peaking and system reserves regulations◊ Emerging markets embarking towards maturity√ Australia√ Nordic Countries√ UK√ North America◊ Brazil◊ Mexico◊ Columbia√ Chile√ Japan√ France, Germany5 © Wärtsilä 12 June 2013
  6. 6. FuelFlexibilityOperationalFlexibilityEnergyEfficiencySmartPowerGeneration...enables the transition toa modern and sustainable power system!A unique all-in-one combination of valuablefeatures that....Smart Power Generation optimises energy systemsSmart Power Generation is a new concept which enables an existing powersystem to operate at maximum efficiency by effectively absorbing current andfuture system load variations, providing significant savings.Reliable SustainableAffordableSmartPowerGeneration12 June 2013 CORPORATE PRESENTATION 20136 © Wärtsiläand, it can play a big role in India
  7. 7. 242,297 BnKcalUnrestricted demand(MW) of India - 2016-17 (17th EPS, CEA)(218,209 MW)Unrestricted demand(MW) of 4 states -2016-17 (17th EPS,CEA)(73,070 MW)÷Extrapolation factor(2.99)=Energy SavingsXSavings- 4 states(2016-17)=Savings-India(2016-17)CO2 EmissionSavingsLand SavingsWater Savings101 Mn Tonnes14,212 AcresEquivalent to :Rs. 9,682 Cr of CertifiedEmission Reduction (CER) or~ 18% of India’s current per annum CO2emission from power sectorEquivalent to Rs. 3,695 Cr ofIndustrial Land or equivalent to amid-sized townEquivalent to Rs. 624 Cr of Industrial WaterEquivalent to Rs. 4,551 Cr of PrimaryFuel413 Mn Cu mPer Annum(RecurringSavings)Rs. 14,857 CrCapex Savings Rs. 31,415 CrTransmissionCapex SavingsRs. 47,334 CrOne timeSavingsRs. 15,919 CrEconomic Value Add:Smart Power GenerationEconomic Value Add for India: Smart Power GenerationAP, Karnataka,Maharashtra &Punjab7
  8. 8. System cost reduction by adding flexible gas power plant to coal dominatedIndian power systemHybrid Plant in Actual Situation:Capacity – 80:20 – Coal : GasPrice of Gas – 10-15-20 USD/MMBTUBase LoadFull PLFFast FlexiblePeak LoadScenario A – 100% Domestic coal with 75% PLF (considering cycling)Scenario B – 100% Imported coal with 75% PLF (considering cycling)Scenario C – 80% Dom. and 20% Imp. coal with 75% PLF (considering cycling)Scenario D – 70% Dom. and 30% Imp. coal with 75% PLF (considering cycling)Scenario E – Hybrid Plan - 80% Dom. and 20% Gas @ 10, 15, 20 $/mmbtu with 75% PLFScenario E1* – Hybrid Plan - 80% Dom. and 20% Gas @ 10, 15, 20 $/mmbtu with 75% PLF2,435,393,153,482,002,503,003,504,004,505,005,50Scenario AScenario BScenario CScenario E Scenario DScenario E1Rs/kWh3,33 (@ 15 $)3,41 (@ 20 $)3,24 (@ 10 $)Need to shift the focus from LEAST VARIABLE COST to OPTIMISED TOTAL COST3,03 (@ 15 $)3,11 (@ 20 $)2,94 (@ 10 $)* As per new advisory issued by CEA for using 70:30 blend of Domestic and imported coal respectively for coal based power plantsTraditional approachOptimal approach8
  9. 9. Task Force on Peaking & Reserve Capacity for India• Estimation of peaking & reserve 12th Plan 13th Plancapacity requirementAddl. Peaking capacity 27,500 MW 28,500 MWAddl. Reserve capacity 17,500 MW 8,200MWTotal 45,000 MW 36,700 MWIncreasing penetration of Wind and Solar Plants may need higher reserves. Initiallythe peaking plants could serve this purpose.• While pumped storage hydro plants is good option, but it is location specific & havelong gestation period . Major peaking capacity need to be gas / liquid fuel based.• For immediate implementation, some of the existing Central Govt. gas basedstations, various states and nearby metro cities to the tune of 2000 MW may beutilized as Peaker. Considering time needed for policy implementation, tariff(TOD)formulation etc, the new plants can start in 13th plan period ..For future it isrecommended to allocate gas only to NEW peaking plants and not base – loadplants.• ONGC/Oil Cos can consider to take a larger role in the Value Chain of energysector9
  10. 10. How does this benefit ONGC / Oil Cos10 © WärtsiläA• For captive energy requirements forpetrochemicals, refineries as well as onshoreassets provides substantial energy savingpotentialB• Efficient way of converting energy into electricityfor Isolated/Stranded gas assetsC• Efficient use of flare gas
  11. 11. Value Proposition – A11 © WärtsiläConventionalsolutionWartsilasolutionEfficiency 70.40% 84.43%NPV of savingsin INR Millions –15 years@current LNGprice of17$/mmbtu- 10820Case Study for a Refinery complexin India having requirement of 70MW Power & 180 tph steam
  12. 12. Value Proposition - BIsolated/Stranded Gas AssetsWartsila SolutionEfficiency Results of a survey done by a 3rd partyin the isolated gas field of Ramnad nearRamnathpuram in India - Clearly indicates thatWartsila solution is the most efficient w.r.tconventional technology used at the other 3sites in the same Ramnad belt.Distributed power generation with Wartsila Technology is the most efficient way ofmonetizing isolated/stranded gas assets.
  13. 13. Value Proposition - CAs per data approx. 2 – 3% of gas produced is flared each year. This can be converted intoelectricity efficiently through Wartsila solutions.
  14. 14. THANK YOU!There is a need tochallenge conventionalwisdom!12 June 2013 Smart Power Generation14 © Wärtsilä