Indira Gandhi Institute of Development Research Bombay, India /N/fcX'DK'" ~ Environmentally sound energy efficient strategies: a case study of the power sector in India Prof. Jyoti Parikh Dr. J.P. Painuly Dr. Kankar Bhattacharya Working Paper No. 6 UNEP Collaborating Centre on Energy and Environment Risp National Laboratory, Denmark February 1997 of tw tmiMBfr b wtairreD ENVIRONMENTALLY SOUND ENERGY EFFICIENT STRATEGIES A CASE STUDY OF THE POWER SECTOR IN INDIA Working Paper No. 6 Printed by: Grafisk Service, Ris0 National Laboratory ISBN 87-550-2285-5 ISSN 1025-2258 Prof. Jyoti Parikh Dr. J.P. Painuly Dr. Kankar Bhattacharya Indira Gandhi Institute of Development Research Gen. Vaidya Marg, Goregaon (East) Bombay 400 065 India Tel: +91 22 840 0920/21 Fax: +91 22 840 2752/840 2026 UNEP Collaborating Centre on Energy and Environment Ris0 National Laboratory P.O. Box 49 DK-4000 Roskilde Denmark Tel: +45 46 32 22 88 Fax: +45 46 32 19 99 n DISCLAIMER Portions of this document may be illegible in electronic image products. Images are produced from the best available original document Foreword This report is the sixth in a series of working papers on energy and environment issues published by the UNEP Collaborating Centre on Energy and Environment at Ris0 National Laboratory, Denmark. The UNEP Collaborating Centre was established in 1990 with a primary mission of furthering the incorporation of environmental issues in energy planning and policy, particularly in developing countries. The work of the Centre is to a great extent catalytic, involving close collaboration with researchers, planners, government agencies, etc. in all parts of the world. The newsletter c2e2 news, published at regular intervals, presents short items on Centre activities and related topics. The UNEP Centre Working Papers provide a medium for extended discussion of relevant topics written by Centre staff or collaborating colleagues. The work presented in this report follows an earlier study carried out by the Indira Gandhi Institute for Development Research. That work was published as the fourth in the series of UNEP Centre Working Papers - Environmentally Sound Energy Development Strategies for Maharashtra, J. Parikh, J.P. Painuly and K. Bhattacharya (Indira Gandhi Institute of Development Research, Bombay, India), Working Paper No. 4, December 1995. The present report documents the extension of the study to the whole of India. Gordon A. Mackenzie Series Editor February 1997 IV Preface This study was taken up by the Indira Gandhi Institute of Development Research (IGIDR) on initiative from UNEP Collaborating Centre for Energy and Environment (UCCEE), Ris0 National Laboratory. IGIDR is involved in several policy studies related to energy and environment and took up this opportunity to explore "Environmentally Sound Energy Development Strategies for the State of Maharashtra" in the phase 1 of the study. The objective of the study was to identify potential for Environmentally Sound Energy Technologies (ESETs) and provide a strategy for implementation of a few ESETs in the State, which could also be replicated by other states. The study was extended to estimate potential at all India level during the second phase. This report combines the two phases of the project. It may be worthwhile to state that prior to this, IGIDR carried out a project on Limiting Carbon Dioxide Emissions through Economic Instruments: Applications to India and Canada, supported by Indo-Canada Link Project and carried out with North-South Institute and Conference Board of Canada, both located in Ottawa, Canada. This project report provides a policy framework for economic instruments in general and joint implementation in particular. The report pointed out that the power system is one of the most important sectors for international cooperation to reduce green-house gas (GHG) emissions. In the present work, the technologies relating to power system are discussed since power generation is predominantly coal-based, in India, thus leading to environmental degradation and hence greater feasibility of adapting them. The study covers the following: a. Measures for reduction of Auxiliary Consumption in Thermal Power Plants, an area that has not been studied systematically so far. The study indicates substantial potential for energy savings through up-gradation of auxiliaries. b. Reduction of Transmission and Distribution (T&D) Losses in Maharashtra State Electricity Board (MSEB) system. The study throws light on the possible savings at the transmission level and recommends a field study in the distribution side to identify loss reduction measures. c. Demand Side Management (DSM) Options for HT Industries in Maharashtra have been identified. This part of the study is based on an earlier comprehensive study on DSM carried out by IGIDR for MSEB. d. Barriers in Implementation, Institutional and Financial Mechanisms required for successful implementation of suggested measures have been brought out. Actions required to be taken by various agencies have also been identified. It is well known that losses in auxiliary operation and T&D system are significant and need to be reduced. It is also accepted that potential for savings through DSM is considerable. The present work takes up case studies to suggest how and how much can be reduced and v provides detailed information which can be useful for future investments in this area. It thus provides concrete opportunities for further action. The study was conducted in two phases. In the first phase two power stations of MSEB (Nasik and Parli) were studied for exploring possible measures for reduction in auxiliary consumption and evaluate the potential. The transmission and distribution losses in MSEB system, DSM options for HT industries in Maharashtra and barriers in implementation were also covered in this phase. Interim results of the study were presented to MSEB in Feb. ’94 in order to get feedback. The report of the phase 1 was submitted in October 1994. The scope of the study was enlarged in the second phase to include case study of two more power stations outside the MSEB system. Korba Super Thermal Power Station of National Thermal Power Corporation (NTPC, a federal government utility), and Panipat Thermal Power Station of Haryana Electricity Board (a state government utility of the Haryana State) were selected to study diversity in auxiliary consumption across utilities. The second phase also included estimation of all India potential for energy and emissions savings for 200/210 MW power plants based on the above the above four case studies. It is hoped that, following this study, a plan for implementation will be prepared by the concerned agencies. We thank UCCEE, specially Dr. Pramod Deo and Dr. John Christensen, for providing financial support for the study. The study was taken up by us on initiative from Dr. Deo, who also provided valuable help during the study. Dr. Deo also gave useful comments on the draft of the study. We would also like to thank MSEB officials, specially Mr. M.V. Dekhne, Member (Technical), Mr. R.C. Gupta (Tech.Director) and Mr. G.G. Dalai (Dy.Chief Engineer) for their cooperation during the study. Mr. Dalai not only provided the requested information but also helped in arranging our site visits. Mr. R.G. Patil (Chief Engineer), Mr. Ghanekar (Dy.C.E), Mr. Ondkar (SE) and their colleagues provided us the valuable support in conducting field study at Nasik TPS. Mr. S.M. Phadke (Dy.C.E.) and his colleagues helped us at Parli TPS. Mr. Kukde (C.E., Koradi TPS) gave valuable comments during the interim presentation at MSEB, Bombay office. We take this opportunity to thank Mr. S.M.C. Pillai, Director (Operations), NTPC, New Delhi, for making the plant visit to Korba STPS successful. We appreciate the help and cooperation extended by Mr. B.M. Bhattacharya, DGM (OS) and Mr. K. Ratna Rao, Manager (OS) of NTPC Western Region Headquarters, Nagpur. We thank Mr. J.N. Sinha, General Manager, Mr. S.R. Yadav, DGM (O&M), Mr. R.S. Sharma, DGM (O&M) and their colleagues at Korba STPS who were extremely helpful in providing relevant information, fruitful discussions and advice on our study, in spite of their busy schedule. We thank Mr. J.L. Arora, Engineer-in-Chief, Panipat Thermal Power Station, for making the visit to Panipat TPS successful. We also appreciate the help and cooperation extended by Mr. A.R. Gupta, Superintendent Engineer and his colleagues at Panipat TPS. Mr. M.V. Dekhne and Mr. J.C. Shah and Mr. Redlinger reviewed the report and gave useful comments. Mr. Dekhne specifically pointed out possibility of PF improvement in auxiliaries and proper sizing (2.9.1 and 2.9.2 was added after that). We sincerely thank him for this. We vi appreciate the comments and discussions provided by Dr. Bhaskar Natarajan, Director, Energy Management Center, New Delhi on this study. We also thank Mr. P. Shah for his help in the Phase 1 of the study. Jyoti Parikh J.P. Painuly Kankar Bhattacharya Vll Vlll Contents Foreword ............................................................................................................................ iii Preface ................................................................................................................................... v Executive summary ....................................................................................................... xi-xx Part I: Background 1 Introduction ..............................................................................................................