HOW TO MAXIMIZE PROFITS FROM SALE OF SURPLUS POWER By

HOW TO MAXIMIZE PROFITS
FROM SALE OF SURPLUS
POWER
By
Suresh Sardesai
Chief Engineer (Cogen-Elect.)
The Ugar Sugar Works Ltd., Ugar-Khurd
Background of Ugar Sugar
USWL is established in the year 1939 with 500 TPD sugar
plant, present complex is of ª 12,000 TPD Sugar Plant
ª 44 MW Cogeneration
ª 75 KLPD Distillery (Potable Alcohol)
ª 20 KLPD Ethanol Plant
ª Effluent Treatment (Evaporation & Drying)
ª Biogas Engines (Power Generation)
Background of USW
ª USWL has received Rajeev Gandhi Urja Award
for Best Cogeneration in Karnataka.
ª Setting up Sugar ship project.
ª Setting up 2 new 2500 TPD sugar plant.
ª Two sugar factories on lease basis.
ª Consultation for Cogeneration Power Project.
ª Other social activities.
Cogeneration at USW
Sugar cane crushing capacity
Co-generation plant capacity
Sugar cane crushing per hour
Bagasse production
Bagasse for steam generation
Process steam requirement
Working cycle pressure
Temperature
12000 TCD
44 MW
500 TPH
150 TPH
136 TPH
250 TPH
62 kg/cm2
485 ± 15 deg C
PROJECT IMPLEMENTATION
• PHASE - I
• Total power generation 18 MW
• Exportable power 10 MW
• PHASE - II
• Total Power Generation 28 MW
• Exportable power 18 MW
• PHASE - III
• Total power Generation 44 MW
• Exportable power 28 MW
Cogeneration at USW
Power generation:
SNM 1 - 16 MW (In-house)
SNM 2 - 14 MW (Export)
Siemens -14 MW (Export)
(Rated 22.8 MW)
(Rated 22.8 MW)
(Rated 18.0 MW)
Total Power Gen. 44 MW, In-house 16 MW & Export 28
MW
Effect Of Cogeneration On Power Quality
Feed back from consumers
Before Cogen.
After Cogen
Voltage
: 90 to 100 KV
105 to 110 KV
Voltage variation
: very much
very rare
Frequency variation
: very much
very rare
Power Availability
: 12hrs /day
18hrs /day
Failure of Cultivators Motors,
Transformers, Snapping of
conductors
: very much
very rare
Conclusion
¾ Bagasse the renewable energy source is available in
abundance in India; it’s the cheapest source of energy and
infrastructure for the project. The plants are green and Ecofriendly. Hence, future of Sugar Co-generation is prosperous.
It can prove a boon to today’s sick sugar industry. Moreover,
it indirectly helps the State Electricity grid by reducing the
transmission losses. Visionary government policies will be a
helping hand if they promote co-generation and made easy
funds available for the new projects. Co-generation has a
potential to make India self sufficient in Energy.
¾ It is felt that all sugar factories should go for cogeneration of
power for the benefit of the factory, farmers and the nation.
•
Evacuation of Power to STATE UTILITY
The terminology involved in the above system is below .
1)
As per PPA the maximum power to be exported was 28 MW and limit
for power import was 4 MW.
2)
Tariff for export per KWH : Rs. 3.5856
31ST March & March
onwards 3.652
3)
Tariff for import : Rs.4.12 up to March & 4.19 march onwards (i.e. 115
% of export tariff)
4)
The power flow was controlled as per fuel availability exhaust
pressure requirement of process and scheduled and unscheduled
INHOUSE / KPTCL breakdowns.
METERING
BILLING KWH
As per monthly ETV meter
reading at the point of
injection.
Billing KWH = Actual KWH
exported
•
•
POWER TRADING
Sale of power from IPP to consumer through Private
power trading organization i.e. Third party sale. The IPP
is eligible for third party under the circumstance that , as
per PPA if UTILTY becomes default. This third party
sale is facilitated by Electricity act 2003.Earlier to this
law, there was no specific reference to renewable
energy in acts.
The terminology involved in the above system is as below .
1)Open Access
2) Scheduling & Billing of Power
3) Penalties
OPEN ACCESS
DEFINATION : Open access means the provision for the use of
transmission lines or distribution system or associated system
with such lines or system by any licensee or consumer or a person
engaged in generation in accordance with the regulations specified
by the appropriate commission.
TYPES OF OPEN ACCESS:
1) Short Term : The open access duration less than 5 years is termed
as short term open access .In this type ,open access allotted is only
for the period of three months i. e. for every three months consumer
has to apply for the open access to pertaining utility .This frame
work is done as per CERC norms and it is termed as incidental open
access.
2) Long Term : The open access duration more than 5 years is termed
as Long Term open access and it is termed as committed capacity
for long duration.
SCHEDULING
Monthly schedule for supply of power should be informed to Power trader well
in advance in previous month through fax or email and same should be signed
by authorized person which will enable them to apply for open access
accordingly. In spite of monthly schedule Generator has to submit their day
ahead schedule to Power trader before 11:00 A.M. of the previous day.
This Day ahead schedule is treated as billing schedule .
REVISION IN SCHEDULE:
Sudden change in schedule can be intimated to consumer through trader
.Revision in schedule will be implemented after 1:30 minutes after the
intimation.
Billing :
Billing will be done by the trader on the basis of day ahead schedule and
revision in schedule intimated by generator .Same will be displayed on SRLDC
website .If generator under inject w.r.t. the scheduled power generator is bond
to pay what is known as U.I. i.e. unscheduled interchange charges i and
unutilized open access charges if generator fails to maintain minimum 80 % of
the declared power in PPA .Thus the actual bill receivable by generator is as
below
ACTUAL BILL= SCH BILL x RATE OFFERED BY TRADER – (UI CHARGES + OPEN
ACCESS CHARGES)
TYPICAL EXAMPLE ILLUSTRATINGTHE OPEN ACCESS CHARGES FOR THE MONTH
Contracted energy in (KWH)
1,86,00,000
80 % contracted energy in KWH
1,48,80,000
Actual energy supplied in (KWH)
1,23,83,000
Short fall of energy in (KWH)
24,97,000
Short fall in energy supplied
w.r.t.80 % in percentage. (KWH)
OA CHARGES
= 24,97,000 x 0.1342437
13.4247
Rs. 3,34,688
UI ACCOUNTING AS PER ABT METER
1. Energy is transferred through scheduling as per IEGC on monthly basis
2. Scheduling is in MW for 15 minutes blocks on day ahead basis
3. Difference in actual injection and schedule is accounted as Unscheduled
Interchange charges . Unscheduled Inter change charges are as below.
4. Accounting of UI in state is linked to implementation of Intra state ABT and UI
mechanism.
FREQUENCY ( Hz)
Rs. Per KWH
50.50
0
50.00
2.00
49.60
4.60
49.20
8.20
49.10
9.10
49.00 & Below
10.00
UI CHARGES
11
10
10
10
10
9.1
9
8.2
UI RATE in RS / KWH
8
7.3
7
6.4
6
5.5
5
4.6
4
3.7
3
2.8
2.4
2
2
1.6
1.2
1
0.8
0.4
0
48.8
49
49.2
49.4
49.6
49.8
FREQUENCY
50
50.2
50.4
0
50.6
50.8
ENERGY RECORDED IN ABT METER
TIME
AVG FREQ
0.15
0.30
0.45
1.00
1.15
1.30
1.45
2.0
2.15
49.46
49.36
49.36
49.40
49.44
49.48
49.46
49.32
49.28
SCHEDULED
IN KWH
2500
2500
2500
2500
2500
2500
2500
2500
2500
ACTUAL IN KWH DIFRENCE
2300
2200
2400
2600
2800
2350
2400
2500
2200
- 200
-300
-100
+ 100
+ 300
+ 350
-100
0
- 300
IMPORT CHARGES
As per KERC regulation clause –II and section VIII if Generator who is in Open access
imports the power from state distribution Licensee. The tariff for the same will be
charged as per temporary tariff regulations i.e.
.
Demand charges + Fixed energy charges per KWH + 5% Tax
PERIOD
IMPORTED
IN KWH
MD IN
KVA
IMPORT BILL
Rs. / KWH
31 DAYS
31 DAYS
9,56,000
1,10,000
2681
4840
65,85,810
18,64,044
6.88
16.94
NOTE:
Rs. / unit in above first case is much less than in second case although
period is same. It is due to less units imported and High MD in second
case.
SUMMARY FOR IMPORT CHARGES FROM NOVEMBER 2006 TO AUGUST 2007
TOTAL KWH IMPORTED
TOTAL IMPORT BILL PAID AS PER OA
REGULATION
TOTAL IMPORT BILL AS PER HESCOM PPA
23,14,000
Rs. 2,06,13,600
EXCESS BILL PAID DUE TO OPEN ACCESS
Rs. 1,09,34,207
RATE / KWH AS PER HESCOM PPA
Rs. 4.18
RATE / KWH IN OPEN ACESS
Rs. 8.90
Rs. 96,79,393
NOTE :
BECAUSE OF HEAVY IMPORT CHARGES WE ARE PREFERING DG
SUPPLY THAN IMPORTING POWER FROM GRID.
CONCLUSION FOR IMPORT in Open Access
As far as IMPORT is concerned we have to give priority as given
below considering the economy criteria
If regular T.G. supply is not available for few days i.e. planned
stoppage ,all captive load should run on Diesel Generators. In
the event of Long duration i.e. at least for 1 month we should run
our captive load on Utility supply be controlling MD by proper
LOAD management.
SUMMARY FOR EXPORT RATE FROM NOVEMBER 2006 TO
JANUARY 2008
TOTAL SCHEDULED KWH
BILL RECEIVED (Before deducting penalties)
12,21,13,000
57,56,47,910
ACTUAL UNITS INJECTED IN KWH
12,16,92,000
ACTUAL BILL (After deducting all penalties)
51,13,74,767
ACTUAL RATE / KWH
4.20
COMPARATIVE
TPTCL
HESCOM
TOTAL EXPORT
12,16,92,000
12,16,92,000
ACTUAL BILL
51,13,74,767
42,89,02,560
NET RATE / KWH
4.20
3.52
NOTE :
After paying all heavy penalties , We have received 8,24,72,207
more bill as compared to Hescom in open access mode of trading.
STEPS TO IMPROVE PROFITABILITY
IN POWER TRADING
¾ Sale of power in open access to consumer through power trader
@ competitive rates rather than sale it to state utility @ flat
rate.
¾ Due care to be taken while informing the day ahead schedule
to minimize UI & Open access penalties.
¾ We should take advantage of rescheduling system available in
case of planned / forced stoppage.
¾ Genuine efforts to be taken to operate our plant round the clock
to meet the scheduled power export.
Thank You !!