Finnish-Indo Cleantech Business Seminar 12.6.2013, seminar material

1. ROLE OF WÄRTSILÄ IN INDIAN
ENERGY SECTOR
FINNISH - INDO CLEANTECH BUSINESS SEMINAR
RAKESH SARIN
MANAGING DIRECTOR
WARTSILA INDIA
HELSINKI
12 JUNE, 2013

2. This is Wartsila …
12 June 2013 CORPORATE PRESENTATION 20132 © Wärtsilä
Nearly 19,000 professionals,
114 nationalities in 70 countries,
present in 160 locations

3. SERVICES
POWER
PLANTS
SHIP
POWER
Our business areas
12 June 2013 CORPORATE PRESENTATION 20133 © Wärtsilä

4. Power Plants
We provide superior value to our customers with our
flexible, efficient and environmentally advanced
energy solutions, which enable a transition to a more
sustainable and modern energy infrastructure.
12 June 2013 CORPORATE PRESENTATION 20134 © Wärtsilä

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, Germany
5 © Wärtsilä 12 June 2013

6. Fuel
Flexibility
Operational
Flexibility
Energy
Efficiency
Smart
Power
Generation
...enables the transition to
a modern and sustainable power system!
A unique all-in-one combination of valuable
features that....
Smart Power Generation optimises energy systems
Smart Power Generation is a new concept which enables an existing power
system to operate at maximum efficiency by effectively absorbing current and
future system load variations, providing significant savings.
Reliable Sustainable
Affordable
Smart
Power
Generation
12 June 2013 CORPORATE PRESENTATION 20136 © Wärtsilä
and, it can play a big role in India

7. 242,297 Bn
KcalUnrestricted 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 Savings
X
Savings- 4 states
(2016-17)
=
Savings-
India
(2016-17)
CO2 Emission
Savings
Land Savings
Water Savings
101 Mn Tonnes
14,212 Acres
Equivalent to :Rs. 9,682 Cr of Certified
Emission Reduction (CER) or
~ 18% of India’s current per annum CO2
emission from power sector
Equivalent to Rs. 3,695 Cr of
Industrial Land or equivalent to a
mid-sized town
Equivalent to Rs. 624 Cr of Industrial Water
Equivalent to Rs. 4,551 Cr of Primary
Fuel
413 Mn Cu m
Per Annum
(Recurring
Savings)
Rs. 14,857 Cr
Capex Savings Rs. 31,415 Cr
Transmission
Capex Savings
Rs. 47,334 CrOne time
Savings
Rs. 15,919 Cr
Economic Value Add:Smart Power GenerationEconomic Value Add for India: Smart Power Generation
AP, Karnataka,
Maharashtra &
Punjab
7

8. System cost reduction by adding flexible gas power plant to coal dominated
Indian power system
Hybrid Plant in Actual Situation:
Capacity – 80:20 – Coal : Gas
Price of Gas – 10-15-20 USD/MMBTU
Base Load
Full PLF
Fast Flexible
Peak Load
Scenario 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% PLF
Scenario E1* – Hybrid Plan - 80% Dom. and 20% Gas @ 10, 15, 20 $/mmbtu with 75% PLF
2,43
5,39
3,15
3,48
2,00
2,50
3,00
3,50
4,00
4,50
5,00
5,50
Scenario AScenario BScenario CScenario E Scenario DScenario E1
Rs/kWh
3,33 (@ 15 $)
3,41 (@ 20 $)
3,24 (@ 10 $)
Need to shift the focus from LEAST VARIABLE COST to OPTIMISED TOTAL COST
3,03 (@ 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 plants
Traditional approach
Optimal approach
8

9. Task Force on Peaking & Reserve Capacity for India
• Estimation of peaking & reserve 12th Plan 13th Plan
capacity requirement
Addl. Peaking capacity 27,500 MW 28,500 MW
Addl. Reserve capacity 17,500 MW 8,200MW
Total 45,000 MW 36,700 MW
Increasing penetration of Wind and Solar Plants may need higher reserves. Initially
the peaking plants could serve this purpose.
• While pumped storage hydro plants is good option, but it is location specific & have
long gestation period . Major peaking capacity need to be gas / liquid fuel based.
• For immediate implementation, some of the existing Central Govt. gas based
stations, various states and nearby metro cities to the tune of 2000 MW may be
utilized as Peaker. Considering time needed for policy implementation, tariff(TOD)
formulation etc, the new plants can start in 13th plan period ..For future it is
recommended to allocate gas only to NEW peaking plants and not base – load
plants.
• ONGC/Oil Cos can consider to take a larger role in the Value Chain of energy
sector
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10. How does this benefit ONGC / Oil Cos
10 © Wärtsilä
A
• For captive energy requirements for
petrochemicals, refineries as well as onshore
assets provides substantial energy saving
potential
B
• Efficient way of converting energy into electricity
for Isolated/Stranded gas assets
C
• Efficient use of flare gas

11. Value Proposition – A
11 © Wärtsilä
Conventi
onal
solution
Wartsila
solution
Efficiency 70.40% 84.43%
NPV of savings
in INR Millions –
15 years@
current LNG
price of
17$/mmbtu
- 10820
Case Study for a Refinery complex
in India having requirement of 70
MW Power & 180 tph steam

12. Value Proposition - B
Isolated/Stranded Gas Assets
Wartsila Solution
Efficiency Results of a survey done by a 3rd party
in the isolated gas field of Ramnad near
Ramnathpuram in India - Clearly indicates that
Wartsila solution is the most efficient w.r.t
conventional technology used at the other 3
sites in the same Ramnad belt.
Distributed power generation with Wartsila Technology is the most efficient way of
monetizing isolated/stranded gas assets.

13. Value Proposition - C
As per data approx. 2 – 3% of gas produced is flared each year. This can be converted into
electricity efficiently through Wartsila solutions.

14. THANK YOU!
There is a need to
challenge conventional
wisdom!
12 June 2013 Smart Power Generation14 © Wärtsilä