1 distributed generation key note address by mr. t l sankar roundtable conference on world energy...
TRANSCRIPT
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Distributed Generation
Key Note address by
Mr. T L Sankar
Roundtable Conference
on
World Energy Council & NTPC
August 16, 2005
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Distributed Generation – What it is and what it isn’t !
Distributed generation is NOT
•A Regression to Old Technology and Ideals•A salutation to an ideology•A temporary solution for a passing phase of shortages
Distributed generation IS
•The application of the latest available technology •To meet the needs of a specified area•To meet the needs of a specialised nature •To fulfill the needs with the resources available
With a cost effective, lasting solution
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Drivers for Distributed Generation
Locally available resource - Fuel
Load available- not connectable to grid
Quality of Power in sensitive processes
Co-generation Needs
Disposal of waste
The quantum of available fuel is so less that transporting it to the generation site may not be economically feasibile
Greenfield Industrial activities which are close to input resources, but far off from power distribution centre, necessitating generation close to resource
Process Industries, Software Technology parks, where the quality and availability are of utmost importance
Processes which mandate generation of power due to steam needs of the industry or where cogen is as a result of input for power produced..viz. sugar industry
Processes where disposal of Industrial or Municipal solid waste is mandated and power generation is a natural result of this requirement.
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Economics of DG
Capital cost Fuel cost Operation and maintenance costs Efficiency Operating mode (hours) / Energy profile support Power quality Siting / environmental and other costs
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Is there a single answer?
Cost-effectiveness is site-specific and has to be judged in light of each site's options and values for availability, reliability, risk tolerance etc.
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Why is DG better? Is it cheaper?
Economics is not the only driver for DG power quality and integrity are major drivers for DG - energy managers. Emerging Technology DGs offer lower maintenance costs than
conventional gen sets. Improvement in environmental performance. Operating hours - base load Vs. peak shaving / standby Shelter from high volatility in electricity prices Combining two energy needs Combining energy and non energy needs
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Overall DG costs will come down when :
Modular design - pre-built packages Lower T&D investment Built in stages as demand grows Situational advantage, using various technologies Gain from reduced T&D line losses
Market Potential for DG
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Market Potential for DG
Where is DG to be used?
On-site generation - at point-of-use
• Residential, commercial, industrial or institutional end-users
Part of the electric grid to enhance reliability and power quality
As an alternative to T&D facility investment
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Applications of DG to realize cost-effectiveness
Isolated from the grid Supported by the grid: continuous DG operation with grid
standby Support the grid: DG provides supplemental power for
quality, peak shaving, back-up, stand-by, etc. Combinations of above
Customer profile defines the optimal method of DG use
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Issues
Installed costs Economies of scale vs. Economies of production
Operations and maintenance (O&M) costs Levelized cost -- busbar -vs- delivered
Economic Issues
Lack of proven performance by newer technologies Lack of coordination with utility system operation Lack of comprehensive list of DG environmental and safety standards
Technical Issues
Simplified , Low Cost Interconnection Capability will see a spurt in Distributed Generation
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Legislative/ Policy Support
New Electricity Act has envisaged a definite role of the Distributed Generation.
Captive Power generation defined as power produced from a plant set up by any
person to generate electricity primarily for its own use or for a group of users. Section 4 of EA 2003 mandates a national policy permitting power generation
from standalone systems based on new or conventional energy sources Section 5 of EA 2003, suggest that a national policy should be formulated for
Rural electrification through rural user association and panchayats and franchisees Section 6of EA 2003 suggests that all efforts should be made to supply electricity
to ALL areas including villages and hamlets. Section 9 of EA 2003 permits a person to construct maintain and operate a captive
generation plant and dedicated transmission lines Section 9 (2) gives the right to any such person producing electricity from captive
generating plant to open access for purposes of carrying electricity from Captive generating plant to the destination of its use.
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DG is a necessity - TODAY
To ensure materialisation of the lofty objectives of Electricity Act 2003,
To fulfill the target of total electrification of all villages and hamlets by 2007,
To achieve the goal of electrifying all households by 2012
To bring modernity and increase productivity in rural areas
To enhance the quality of life in its true sense
To give a meaning to democratic way of life
DG IS A NECESSITY IN MANY AREAS.
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Case Study - KSK Energy Ventures Resource Driven DG Models
RVK is a 21 MW Natural Gas based Merchant Power Plant setup at Machilipatnam, Andhra Pradesh
21 MW - Natural Gas based power plant in Andhra Pradesh
Gas to the project comes from an isolated gas well of ONGC. Prior to utilization of gas by RVK, the well was capped, as GAIL didn’t find it a quantity fit to market the 1,00,000 SCM/day of gas
Project is resource driven and is running for over 4 years. Its an engine based plant so utilizes the modular approach to capacity building.
MMS is a 11 MW Natural Gas based Group Captive Power Plant setup at Naranamangalam, Tamil Nadu
11 MW- Natural Gas based power plant in Tamil Nadu
The Plant is group Captive that serves the requirement of HT Consumers, with Energy being heeled through TNEB Grid
Utilises a meager 55,000 SCM/day of gas allocation
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Case Study - KSK Energy Ventures Load driven DG Model
KPCL is a 21 MW, LSHS based Independent Power Plant (IPP) setup at Kasargod, Kerala
21 MW LSHS based power plant – IPP to Kerala SEB
The project is located in northern tip of Kerala, where there are no base load plants.
Excellent example of load driven Distributed generation to cater to the regional needs of power for industries
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Thanks !!