Ultra mega power projects


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Ultra Mega Power Projects in India

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  • In addition Tamil Nadu has identified additional site at Marakanam. Further, more Karnataka has also suggested an additional site at Ghataprabha in Belgaum District. The Central Electricity Authority is examining the preliminary feasibility of these sites for development of UMPPs
  • Ultra mega power projects

    1. 1. Ultra Mega Power Porjects Concept and Future
    2. 2. Concept <ul><li>A few pre-indentified projects to be developed on BOO basis each with a capacity of about 4000 Megawatts. 9 Projects cleared uptill now. Contracts for Four awarded. </li></ul><ul><li>Sasan in MP (Pit Head) </li></ul><ul><li>Akaltara in Chattisgarh (Pit Head) </li></ul><ul><li>Sundergarh District in Orissa (Pithead) </li></ul><ul><li>Tilaiya in Jharkhand (Pithead) </li></ul><ul><li>Mundra in Gujarat (Coastal) </li></ul><ul><li>Girye in Maharashtra (Coastal) </li></ul><ul><li>Tadri in Karnataka (Coastal) </li></ul><ul><li>Krishnapatnam in Andhra Pradesh (Coastal) </li></ul><ul><li>Cheyyur in Tamil Nadu (Coastal) </li></ul>12/09/11
    3. 3. The Need <ul><li>GDP projected to grow at 8% per annum. Infrastructure to be the key driver of growth. </li></ul><ul><li>Large capacity addition planned over the next two plans (approx 100000 MWs). </li></ul><ul><li>Pace of Thermal Capacity addition to increase from 5000 MW/year to 10000 MW/Year. </li></ul><ul><li>Each UMPPs require an investment of 3.5-4 Billion US$, an investment with long gestation period. </li></ul><ul><li>Total investment of US$ 22 billion in the first 7 UMPPs with 6.6 Billion as equity investment. </li></ul>12/09/11
    4. 4. Reasons for Low Private Sector Participation <ul><li>Lack of regulatory framework. </li></ul><ul><li>Thrust on generation of power rather than reform. </li></ul><ul><li>Retail tariffs were no cost reflective. </li></ul><ul><li>Differential tariffs for various consumer categories. </li></ul><ul><li>High T&D losses and theft. </li></ul><ul><li>SEBs in dire financial conditions with mounting losses. </li></ul><ul><li>SEBs were the sole buyers in their respective states. </li></ul><ul><li>No third party sales even in case of default. </li></ul><ul><li>Lack of adequate payment security mechanism. </li></ul><ul><li>Problems with project design. </li></ul><ul><li>End result was increased risk, higher expectation of return and abandonment of many projects. </li></ul>12/09/11
    5. 5. Learning from the Bangladesh Experience <ul><li>Bangladesh Power Development Board </li></ul><ul><li>Incorporated a SPV </li></ul><ul><li>Acquired the land </li></ul><ul><li>Obtained all consents and approvals </li></ul><ul><li>Finalised project documents </li></ul><ul><li>Secured funding </li></ul><ul><li>Fuel linkage </li></ul><ul><li>As a result Bangladesh was procuring power at half the price that India was, with a model very similar to UMPPs </li></ul>12/09/11
    6. 6. Electricity Act 2003 <ul><li>Establishment of independent regulatory framework </li></ul><ul><li>Multiple buyer model </li></ul><ul><li>Non discriminatory open access </li></ul><ul><li>TransCo not allowed to engage in trading of electricity. </li></ul><ul><li>No surcharge payable for sale of power to Discoms </li></ul><ul><li>Introduction of competition in procurement of electricity. </li></ul><ul><li>This was combined with tariff rationalization and efforts to improve the financial condition of the SEBs </li></ul>12/09/11
    7. 7. UMPP: Process and Progress <ul><li>Five Shell Companies have been formed </li></ul><ul><li>Shell Companies to undertake </li></ul><ul><ul><ul><li>Preparation of Project Report </li></ul></ul></ul><ul><ul><ul><li>Land Acquisition </li></ul></ul></ul><ul><ul><ul><li>Coal Linkages/Coal blocks, allocation for pit head projects </li></ul></ul></ul><ul><ul><ul><li>Allocation of water </li></ul></ul></ul><ul><li>Projects started at 4 sites, 3 awarded to R-Power and one to Tata Power. </li></ul><ul><li>Power allocation/PPAs have been finalized. </li></ul><ul><li>Shell Companies, initially set up by PFC, are transferred to successful bidder for project execution. RfQ followed by RfP. </li></ul>12/09/11
    8. 8. SPVs <ul><li>The names of the SPVs are:- </li></ul><ul><li>(i) Sasan Power Limited for the project at Sasan, Madhya Pradesh. </li></ul><ul><li>(ii) Coastal Gujarat Power Limited for the project at Mundra (Gujarat). </li></ul><ul><li>(iii) Coastal Karnataka Power Limited for the project at Tadri, Karnataka. </li></ul><ul><li>(iv) Coastal Andhra Power Limited for the project at Krishnapatnam, </li></ul><ul><li>Andhra Pradesh. </li></ul><ul><li>(v) Coastal Tamil Nadu Power Limited for the project at Cheyyur in </li></ul><ul><li>Tamil Nadu. </li></ul><ul><li>(vi) Coastal Maharashtra Mega Power Limited for the project at Girye, </li></ul><ul><li>Maharashtra. </li></ul><ul><li>(vii) Orissa Integrated Power Limited for the project in Sundergarh </li></ul><ul><li>District in Orissa. </li></ul><ul><li>(viii) Jharkhand Integrated Power Limited for the project near Tilaiya dam, </li></ul><ul><li>in Jharkhand. </li></ul><ul><li>(ix) Akaltara Power Limited for the project at Akaltara in Chhattisgarh. </li></ul>12/09/11
    9. 9. SPVs <ul><li>Appointment of Consultants to undertake preparation of Project Report, preparation of Rapid Environment Impact Assessment Report etc. </li></ul><ul><li>Appointment of Consultants for International Competitive Bidding (ICB), document preparation & evaluation. </li></ul><ul><li>To finalise RfQ/ RfP documents in consultation with States / bidders. </li></ul><ul><li>To carry out RfQ/ RfP process and award of project </li></ul><ul><li>Acquisition of land for the project </li></ul><ul><li>Obtaining Coal blocks for pit-head projects </li></ul><ul><li>Getting clearance regarding allocation of water by the State Govt. for pit-head locations </li></ul><ul><li>Approval for use of sea water from Maritime Board/ other Govt. Agencies for coastal locations </li></ul><ul><li>Obtain clearance from the State Pollution Control Board, initiate forest clearance etc. as are required for the project and for the coal mines, followed by environment and forest clearances from the Central Government. </li></ul><ul><li>Obtaining geological reports/ other related data from CMPDI for the coal blocks. </li></ul><ul><li>Tie up the off-take/ sale of power </li></ul>12/09/11
    10. 10. UMPP: Process and Progress <ul><li>Will use Super Critical Technology with a view to achieve higher levels of fuel efficiency, which results in saving of fuel and lower green-house gas emissions. </li></ul><ul><li>Flexibility in unit size subject to adoption of specified minimum Supercritical parameters. </li></ul>12/09/11
    11. 11. UMPP: Process and Progress <ul><li>Succesful Implementation is contingent upon </li></ul><ul><ul><ul><li>Availability of captive mines. </li></ul></ul></ul><ul><ul><ul><li>Fuel supply arrangements for imported coal projects. </li></ul></ul></ul><ul><ul><ul><li>Adequate payment security mechanisms. </li></ul></ul></ul><ul><ul><ul><li>Development of Transmission capabilities to evacuate and transmit power. </li></ul></ul></ul><ul><ul><ul><li>Regulatory non-interference in bidding based tariff. (Section 63 of EC 2003) </li></ul></ul></ul><ul><ul><ul><li>Extent of coordination between MoP with ministries/agencies concerning: </li></ul></ul></ul><ul><ul><ul><ul><li>Coal block allotment/coal linkage </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Environment and Forest Clearances </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Acquisition of land </li></ul></ul></ul></ul><ul><ul><ul><li>Financial support by FIs </li></ul></ul></ul><ul><ul><ul><li>PPA and Payment security mechanisms with State utilities </li></ul></ul></ul><ul><ul><ul><li>Monitoring the progress of shell companies with respect to pre-determined timelines. </li></ul></ul></ul>12/09/11
    12. 12. UMPP Mundra <ul><li>Lowest levellised tariff of Rs. 2.26 per kilo watt hour. </li></ul><ul><li>The Power Purchase Agreement (PPA) was signed on 22.4.2007 with </li></ul><ul><li>Tata Power Co. Ltd. As per this PPA, Tata Power has, for the five units of 800 MW each indicated by it, intimated the commissionin Unit No. Months from PPA signing : </li></ul><ul><li>Unit 1 by 22.8.2012 </li></ul><ul><li>Unit 2 by 22.2.2013 </li></ul><ul><li>Unit 3 by 22.8.2013 </li></ul><ul><li>Unit 4 by 22.2.2014 </li></ul><ul><li>Unit 5 by 22.8.2014 </li></ul>12/09/11
    13. 13. UMPP Sasan <ul><li>Reliance Power Limited, offered a levellised tariff of Rs.1.19616 per kilo watt hour. </li></ul><ul><li>Six units of 660 MW each proposed </li></ul><ul><li>Unit1 by 06.05.2013 </li></ul><ul><li>Unit 2 by 06.12.2013 </li></ul><ul><li>Unit 3 by 06.07.2014 </li></ul><ul><li>Unit 4 by 06.02.2015 </li></ul><ul><li>Unit 5 by 06.09.2015 </li></ul><ul><li>Unit 6 by 06.04.2016 </li></ul>12/09/11
    14. 14. UMPP Krishnapatnam <ul><li>RfP documents were issued to 13 qualified bidders. </li></ul><ul><li>Total land required for the project is about 2600 acres (for the main plant and ash dyke). </li></ul><ul><li>The land acquisition process has been initiated. </li></ul><ul><li>The Coastal Regulation Zone clearance is available. </li></ul><ul><li>The Krishnapatnam port is being developed by Government of AP through a private agency for handling coal. </li></ul><ul><li>Mega status to the project has been accorded. </li></ul><ul><li>Rehabilitation and resettlement package has been finalized. </li></ul><ul><li>State forest clearance has been obtained. </li></ul><ul><li>Power Purchase Agreement has been signed. </li></ul>12/09/11
    15. 15. UMPP Tilaiya 12/09/11