CGD Opportunity & Small Power Plants

Indraprastha Gas Limited

By : Ajai Tyagi GM Electrical Natural Gas for Clean, Green and Cost-effective Power Generation
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Indraprastha Gas Limited is a leading CGD organisation in India

Indraprastha Gas Limited is a joint venture of Gail (India Ltd), BPCL and Govt. of NCT of Delhi IGLs current business is divided into 2 segments: CNG - for transport sector in Delhi & NCR PNG - for domestic / commercial / industrial customers of Delhi & NCR

IGL has started supply of CNG and PNG to sub-urban towns of Delhi, viz Noida, Greater Noida and Ghaziabad
More than 2,50,000 customers Wide spectrum of customers across domestic, commercial and industrial Steel pipelines More than 400 kms MDPE pipelines More Than 4000 kms Sales of ~ 3 mmscmd

IGLs Vision:

To be the leading clean energy solutions provider, committed to stakeholder value enhancement, through operational excellence and customer satisfaction

Natural Gas for Clean, Green and Cost-effective Power Generation

IGLs portfolio at a glance

Operations Mix PNG operations

CNG

PNG

3
mmscmd

Installed Base

Approx. 60 Mw

Industry Hotels Portfolio Malls

Diversified client base for CPP comprising FMCG, Auto, PV, Packaging etc.

Expected to add another 25 Mw by EoY Plan

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Power Gen mix Installed capacity pan India scenario

Current installed capacity 170 GW all India Coal is dominant amongst power generation mix Gas based power accounts for 10% Northern region has 22%(3885 Mw) share out of total gas based power generation in India 12% energy shortage in Northern region & 15% shortage in Peak Demand Usage of Gas for power Beginning of 10th plan 11397 Mw

As on Dec10 17456 Mw
Potential Diff. 6059 Mw

-11.6%

-13.7%

-6.4%

-15.4%

-17.7% -9.4%

-7.7% -14.5% -17.9%

-11.1%

Source: CEA

Natural Gas for Clean, Green and Cost-effective Power Generation

Captive Power Plants in India Key observations & projected repercussions 1 to 10 Mw largest installed category Steam based & liquid fuel leading the CPP generation mix Gas based CPP accounts for 15% CPP - prime business mover for a CGD With expansion in CGD network, share of gas based power will supersede

CPP installed base

CPP generation mix

Source: CEA

Natural Gas for Clean, Green and Cost-effective Power Generation

Role of a CGD Organisation

Commercial PNG
Boilers Furnaces

Hotels, Restaurants

Domestic

Residential supply

Power generates highest volumes Gas based power creates avenues for Co- Gen, Trigen, Quadgen or Zero Waste ; mechanism for saving energy

Industrial Fuel

Power

Decentralised Power

A CGD company can offer gas for power generation upto a limited quantity as per the prevailing norms Various end users from diversified fields can have the captive power plant Small power plants can be another area of business potential
Hospitals Industries

Malls

Hotels

PNG End Users for Power

Small power plants Housing Societies

Natural Gas for Clean, Green and Cost-effective Power Generation

Comparison of available prime energy source with gas based captive power
Option I

Grid + DG SET +
Back - up

Fuels for industrial usage

Captive Power

HFO

HSD/ LDO /FO

Pet Coke/ Husk

Single line catering all energy requirements

Unreliable primary source Unscheduled Roasting Unaccountable Batch Loss Transformers, DGs & UPS need more space

Operational

Reliable as primary source Planned maintenance Interruption free power Covers minimal space

T&D, commercial losses Coal 1.09 tons Co2 / Mwh Diesel 0.63 tonsCo2 / Mwh Oil 0.73 tons Co2 / Mwh Extra investment for back up power vis. UPS High cost of energy

Logistics

Same output at everywhere

Socio - Ecological

0.47 Tons Co2 / Mwh

Economy

No extra investment for power back up equipments Faster ROI & growth
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Comparison of available prime energy source with gas based captive power
Option II

DG SET

Fuels for industrial usage

Captive Power

HFO

HSD/ LDO /FO

Pet Coke/ Husk

Single line catering all energy requirements

Space Constraint High Maintenance Ash Disposal Manpower deployment Adulteration & Pilferage Transportation issues

Operational

No fuel storage Low Maintenance cost No additional manpower

Logistics

No Adulteration 24*7 supply

Coal 1.09 tons Co2 / Mwh Diesel 0.63 tonsCo2 / Mwh Oil 0.73 tons Co2 / Mwh

Socio-Ecological

0.47 Tons Co2 / Mwh

No waste heat recovery High cost of energy

Economy

Heat for industrial usage Faster ROI & growth

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Natural Gas for Clean, Green and Cost-effective Power Generation

Distributed power an efficient way of energy utilisation

Co2 Recovery

Centralised power

Distributed power

Distributed power is beneficial for industry for critical load applications, and preventing breakdowns

Waste heat recovery further increases the efficiency of the plant & reduces the overall energy cost
Distributed power reduces burden on the Grid as well Zero Waste can be achieved by doing Quad generation

Natural Gas for Clean, Green and Cost-effective Power Generation

Future potential & Challenges Real Estate

Delhi NCR the second most favorable market for developers. Noida, Gr. Noida a major cluster for CHP projects Avg. connected load >750 kw; 60% of the total projects is IT/ITES

Future Potential

Industries
Industries face huge amount of power cuts Power shortage is a limitation for industry expansion Ghaziabad & Gr. Noida a major industrial hub in NCR

Observations from industry Cannot expand business due to unavailability of power from EB

IPP
Small power plants can be a good potential for CGDs 10 Ha proposed for power plant in Noida SEZ as per master plan

Roasting not as per schedule

Huge losses everyday due to Fluctuation"

Challenges

Price of alternate fuels Availability & price of Grid power High Capital Cost of equipments ; demanding new business models from stakeholders

Deregulation of HSD, will boost the business

Natural Gas for Clean, Green and Cost-effective Power Generation

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Thank You

Natural Gas for Clean, Green and Cost-effective Power Generation

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