July 2016

PAT- Perform, Achieve & Trade

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PAT: A Paradigm Shift

• A voluntary reduction program to mandatory regime

• Separate accounting of Gross HR & APC to Net Heat Rate (NHR)

• Short term to long-term thinking with successive PAT cycles

• Focus of R&M: restoration to modernization with emphasis on efficiency

• Continuous improvement to maintain high efficiency year around in target year

• Equal emphasis on efficiency & loading factor

Reliability is the platform to sustain high efficiency

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• One of the initiatives under NMEEE (National Mission on EnhancedEnergy Efficiency) by GOI.

• A market based mechanism to make improvement in energyefficiency through certification of energy saving which can be traded

• In first cycle of PAT (2012-15) 6.63 million tones of oil equivalent(Mtoe) fuel saving was expected through 08 identified sectors

• 3.10 Mtoe fuel saving was the target of power sector alone.

• Targets is in terms of percentage improvement over base line Net Heat Rate (NHR)

• Second cycle of PAT from (2016-19)

• In PAT II fuel saving is expected through 11 identified sectors

The PAT Scheme : A brief

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List of DCs (Designated Consumers)

The PAT Cycle-1 : A brief

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Industry Sector No. of Identified DCs PAT-1 PAT-2

Aluminum 10 12Cement 85 111Chlor-Alkali 22 24Fertilizer 29 37Pulp & Paper 31 29Power 144 154Iron & Steel 67 71Textiles 90 99Pertolium 18Railways 22Electric distribution Company 44

478 621

7%

12%1%

7%

22%

2%1%

48%

AlmuniumCementChlor-AlkaliFertilizerIron & SteelPulp & PaperTextilesPower

National Energy savings Targets under PAT (%)- (12-15)

The PAT -1 : A brief

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• Net Heat Ratekcal consumed for each unit of ex bus generation.NHR (kcal/kWh) = Gross Heat Rate / (1-APC)

Gross heat rate =

APC = Auxiliary Power Consumption ( Actual)

• Million Ton of Oil Equivalent (Mtoe)– Reduction Targets shall be in terms of toe– 01 toe is the heat content of 01 Ton of Oil having Calorific Value of

10000 Kcal/kg– 01 toe is equivalent to 10 million kcal (~2500 kg of Coal)– 01 Million toe is equivalent to 1x10^6 toe

Thermal energy of the fuel consumed

Gross Electricity generated

Net Heat Rate & Mtoe

The PAT -1 : A brief

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• Each Station of NTPC is a ‘Designated Consumer (DC)’

• Every Station is given a target of Net Heat Rate to be achieved at the end of PAT cycle.

• Pat-1 Target is based upon the % variation of Baseline period Heat rate( In PAT-1 Average of actual station NHR for the period 07-10) from Design station NHR ( derived from design gross HR and actual APC in base line period).

• Pat-2 Target is based upon the % variation of 14-15 from Design station NHR ( derived from design gross HR and actual APC in base line period) for existing DC.

• Higher the variation, higher is the reduction target and vice versa.

• 1st PAT cycle target Evaluation Yr was (2014-15)

Targets for Power Stations

The PAT Scheme : A brief

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Deviation in Net Station Heat Rate from Design Net

Heat Rate

Reduction Target as % of deviation

Range of Reduction to be achieved

Upto 5% 10% Upto 0.5% ( 10% of NHR deviation

5%)

More than 5% and upto 10% 17% 0.85% to 1.7%

More than 10% and upto 20%

21% 2.1% to 4.2%

More than 20% 24% 4.8% and above

PAT Targets Calculation for Power Stations

The PAT : A brief

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• Stations achieving better NHR than target shall earn E-SCertificates(Energy Saving Certificates)

• Stations failing to meet given target shall have to purchase E-SCertificates

• Each E-SCertificate will be equivalent to 1 toe, the cost of which will be notified by BEE every year.

PAT Scheme

The PAT Scheme : A brief

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PAT -1 : Normalization Coal Unit

Coal Quality variation wrt coal quality of baseline (CEA formulae for calculation of boiler efficiency): normalization in both heat rate and APC Coal quality data for both baseline period and assessment year (annual

average data) Coal analysis required from external labs for 4 coal samples (if in house

lab not accredited by NABL) Energy consumption data required for boiler drives (ID, FD & PA) to avail

this normalization Loading Factor variation due to external reasons wrt baseline including coal

shortage – normalization of unit HR and APC Impact of load on GTCHR from correction curve given by OEM for load vs

GTCHR (HBD heat rate as given by OEM at different loads) considered APC vs station load curve generated by stations considered for

normalization of APC for LF variation Other external factors like unit start up - shut down for external reasons like

hudhud in Simhadri Environmental reasons / new legislations

• Fuel Mix• PLF Normalization• Gas Open Cycle Normalization• APC Normalization• Startup & S/D due to external reasons Normalisation• Gas Quality Normalization• Other Normalization ( Design deficiency)• Environmental reasons / new legislations

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PAT -1 Normalization gas Unit

• Net heat rate (NHR) action plan developed for each station segregated into2 categories:

• Actions without additional investment

• Actions with additional investment

• R&M activity having positive impact on APC & Heat rate improvementidentified out of approved schemes

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PAT Strategies

• Improvement in loading factor• Operational Optimization ( listing in separate slide)• Condenser loss reduction –

• Restoration of COLTS, regular & effective operation of COLTS• Installation of additional screens at the intake channel for removal

of debris; • Regular and opportunity cleaning of condenser

• Air ingress reduction in FG ducts & AH tube replacement• Turbine-Replacement of turbine internals (seals, etc.) is COH as

required based on efficiency degradations / gap analysis.• Turbine- replacement of LP casing ( since already approved and under

execution at Gandhar)

Summary of actions without additional investments

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PAT Strategies

• Cooling Tower (O&M): revamping wherever necessary• Installation of Wind Ventilators Fans in TG Roof• FW temp at inlet to Economizer: HPH to be kept in service • MS pressure restoration• Conversion of FRS from DP control to scoop control• Replacement of BFP recirculation valves • Modification of mills by hi-chrome liners to enhance capacity • FG duct internals modification using CFD modeling with the help of

NETRA and CenPEEP• Improvement of coal quality• Installation and use of Online Energy monitoring system for finding

potential gap areas for better monitoring & reduction of APC.

Summary of actions without additional investments (contd.)

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PAT Strategies

• Optimization of operations:All Stations to continue efforts for the following:• Optimization of number of mills operation• Cooling tower performance optimization• Ash water ratio optimization• Improvement of CHP utilization factor• Non-cycle makeup water reduction• Plant compressor operation optimization• Maximization of TDBFP running• Optimization of operation of HFO pump houseAny other action based on local requirement and unit design

• APC reduction : 0.1% is equivalent to about 3 kcal/kwh in NHR.• VFD applications identified• Additionally, pump coatings, debris removal, and use high efficiency

motors, etc. 15

PAT Strategies

• Installation of VFD in selected HT & LT drives • Polymer coating in CW pumps • CT: Additional CT cells and VFD in CT for gas station• Additional measures for arresting dust ingress in CT• Turbine-Procurement of new turbine rotor ( at one of the Stations)• Installation/Revival of Condenser on line tube cleaning system (COTCS) • Mill Capacity enhancement • Boiler Reheater material upgrade to avoid overheating and reduce RH

spray • Replacement of existing motors with energy efficient motors • Replacement of all FG ducts and hot PA ducts expansion joints, APH

modified seals, heat transfer elements profile & material • Condition based BFP cartridge replacement with Energy efficient cartridge• Installation of debris removal system

Summary of actions with additional Investments

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PAT Strategies

Summary of actions with additional Investments (contd.)

• Up gradation of one set of Ash Slurry pumps at one of the Stations• Replacement of SAPH CE baskets with DU baskets. • Replacement of existing lighting lamps with T5 lamps• Replacement of boiler insulation & refractory • Replacement & modification of flue gas ducts & guide vanes

based on CFD modeling • Replacement of HP heaters • Replacement of existing BFP re-circulating valves • CT fills replacement in applicable cases

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PAT Strategies

• Board approved Rs.190 Cr for PAT schemes of which Rs140 .83 Cr budget wassanctioned. (Utilized 50 Cr)

• R&M activities during this period having positive impact on APC & Heat rateimprovement also contributed.

• At policy front matter taken up continuously with BEE for Normalization of variousfactors which is not under the control of DC (Designated Consumer). Nos of seniorlevel / working level meetings with DG BEE / working team held & representationgiven to with DG BEE.

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PAT Activities- To Achieve Target

• Based on NTPC followup, BEE has to change form-1 with correct methodology of correction factor application even after the M&V audit is completed in some stations.

• Major Normalization benefits accrued from:• Partial Loading ( HR & APC) of units, • New unit addition, • Coal Quality change

• Number of Workshops on PAT conducted in PMI, awareness program through various other WS and forums

• Targets and Actual PAT Gap was discussed in ROPRs and other forums for management support.

• Sensitizing station for keeping operational / Coal/ grid data for PAT normalization.

• Hand Holding of stations in filling the Form-1 and validation before the M&V audit19

PAT Target Achievement Activities

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Normalization Issues

• Sampling from Coal Auto samplers

• As fired samples will be used for GHR Calculation

• Monthly one sample from samplers are to sent for external testing.

• Gap of GCV of internal testing & External testing should not be more than 71.7 kcal/kg

• It will be done as per CERC notification 17th May’2016

• The objective of these regulations is to define a framework for dealing in Energy Savings Certificate through Power Exchanges

• The following entities shall be eligible for dealing in ESCerts on Power Exchanges

• Eligible entities issued ESCerts in electronic form in a cycle period for achieving specific energy consumption less than the energy consumption norms and standards notified & have held such certificates in Registry accounts.

• Eligible entities whose specific energy consumption are more than the prescribed energy consumption norms and standards specified for a cycle period and subsequent cycles and who wish to comply with the prescribed energy consumption norms and standards using ESCerts in lieu of implementing energy conservation and energy efficiency improvement measures.

• Any other eligible entity, as permitted in the EC Act and on subsequent intimation by the Bureau to the Commission, shall be allowed to enlist for participating in dealing of ESCerts on Power Exchanges by the Commission, from time to time. 21

PAT -1 Trading of Ecerts

• Power Exchanges shall permit only the Eligible entities to place either buy or sell bids subject to confirmation of availability of ESCerts by the Registry during the transaction.

• The frequency of transaction of ESCerts, through Power Exchanges, shall be on monthly basis or in such periodicity for all registered and eligible entities as per the procedure approved by the Commission.

• The denomination of one ESCert as mentioned in the Energy Conservation Rules shall be equal to energy consumed in terms of one metric Ton of Oil Equivalent (mtoe).

• The market price of ESCerts shall be as discovered through the process of bidding at the respective Power Exchange.

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PAT -1 Trading of Ecerts

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THANKS

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