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Presently energy crisis is at its peak depicting demand supply gap of 5000 MW approx, pp , due to

In efficient/ redundant plant technologies Higher cost of production due to dependence on ever increasing expensive imported Furnace oil Heavy Line Losses.

resulting in massive i load l d shedding, h ddi shutdown of economic & industrial activities, affecting daily life. No major power plants are in pipe line to commensurate this shortage and several existing plants are in-efficient & need rehabilitation/replacement leading this shortage to more than 6000 MW by 2011.

There is a strong need to exploit alternative indigenous resources for power generation i.e. from renewable source of energy which include

bagasse g coal wind solar bio-gas etc.

Resulting in
Increase in electricity production At cheaper cost Reduction in line losses due to proximity of grid to rural areas

Cogeneration is a high efficiency energy system that produces both electricity (or mechanical power) and valuable heat from a single fuel source. The potential to make electricity is utilized thereby reducing the cost of energy and pollution. High pressure system with mixed fuels firing is used i.e. ie bagasse, rice husk, wood waste coal etc. System is common in cane sugar industry for a very long time around the globe like, Reunion, Mauritius, USA, India and Brazil etc

x To ensure more reliability and flexibility a two unit configuration approach is adopted. Both units would have dual fuel bagasse / coal burning capability. x Spreader Stocker boiler technology is used in this configuration. This technology of boiler is already in use by bagasse and coal cogeneration projects in many parts of the world.

Boiler Operating Pressure (Bar)

120

100

80

60

40

20

0 2010 2007 2001 1994 1992 1990

Sugar mill supplies bagasse to power plant and in return receives i l low pressure steam t and d electricity l t i it for f its it energy requirements. The excess electricity is transmitted to national grid.

83 sugar mills are operative in Pakistan with great potential of co-generation co generation with use of advanced technologies of cogeneration Province wise data is g given below:
Province Cane Crushed (ton) ( ) Bagasse Produced (tons) ( ) Approx. Cogeneration Potential (MW)

Punjab Sindh NWFP Total

26,601,603 11,626,978 2,255,395 40,483,976

7,980,480 3,488,090 676,620 12,145,190

3,000 1,300 250 4,550

Consistent fuel supply is ensured using indigenous resources Cheap electricity as compared with oil based projects Due to distribution to national grid within short distance will results in: a) Saving in transmission losses, infrastructure and maintenance costs b) Stabilizing of the grid voltage These can be installed on Fast Track Basis. Mutual benefits to power sector and sugar industry which will ultimately transferred to farmers community. Contribution towards economic p prosperity p y for Pakistan specially for underdeveloped areas.
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PSMA has been striving hard to initiate power cogeneration with captive bagasse and coal by setting up high pressure boilers and large size generators with a view to supply surplus power to the National Grid. PSMA has been pursuing the GoP for promoting electric power co-generation utilizing captive bagasse during cane crushing season and imported/local coal as alternate fuel during off season.

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The National Policy for Power Cogeneration by sugar industry was approved by Economic Coordination Committee (ECC) of the Cabinet vide case no. ECC-169/13/2007 dated 13 Nov, 2007. In pursuance of ECC decision, Private Power and infrastructure Board (PPIB) published the National Policy for Power Co-generation by sugar industry and guidelines for the investors in January, 2008. In p pursuit of this p policy, y, PSMA filed a tariff p petition to NEPRA along with feasibility of cogeneration plant of 60 MW capacity on 23 Jan, 2008 proposing a tariff of US Cents 11.115/KWH. Subsequently public hearings, meetings etc and all requirements of NEPRA have already been complied with.
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NEPRA announced its decision on 12 June, June 2008 and determined a levelized tariff of US Cents 8.286/KWH against PSMAs proposed tariff of US Cents 11.115 /KWH. Recently Cabinet has directed NEPRA for determination of Upfront Tariff for Cogeneration for Sugar Industry.

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Comparison p of Tariff for Sugar g Industry y and IPPs is g given below.

Tariff Comparison/ Observations Reference Tariff for IPP's (Furnace Oil ) Rs / Kwh Total Capacity Charge Total Energy Charge Total Tariff 2.83 5.23 8.06 Cent / Kwh 4.49 8.31 12.80 Indicative Tariff For Sugar Industry Rs / Kwh 2.41 3.14 5.55 Cent / Kwh 3.59 4.69 8.28

Tariff Components

However, on current oil prices, the power tariff for furnace oil based IPPs is about 19.5 cents / Kwh and 26.5 cents /Kwh for IPPs when operating ti on diesel di l during d i non-commitments it t months th of f natural t l gas.
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Approved Tariff by NEPRA is not viable for sugar industry to invest in Cogeneration. The Project j cost assessed by y NEPRA for indicative tariff is much lower in comparison to tariff of any other IPPs. This is a barrier to initiate Cogeneration Power Plants by the Sugar Industry. NEPRA may pleased be directed to announce an upfront tariff of US Cents 11.115 /KWH for sugar industry to make the cogeneration g policy p y a success !!!.

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In the end, we would like to thank honorable Chief Minister of Punjab for his precious time and Punjab Board of Investment and Trade for providing us an opportunity for this presentation. Any questions / queries related to this presentation are encouraged.

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