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 !!