DRAFT

(To be published in Part II, Section 3, Sub-section (ii) of Gaztte of India)

MINISTRY OF POWER

New Delhi, the            , 1999

NOTIFICATION

S.O.------------------- In exercise of the powers conferred by sub-section (2) of section 43A of the Electricity (Supply) Act, 1948 (54 of 1948), herinafter referred to as the said Act, the Central Government hereby makes the following further amendments to the notification number S. O. 251(E),dated the 30th March, 1992 of the Government of India, the then Ministry of power and Non-Conventional Energy Sources laying down the factors in accordance with which the tariff for sale of electricity by the Generating Company to the Board and other persons shall be determined, namely:-

In the said notification:

The clause 1 shall be replaced by the following:-

1. THERMAL POWER GENERATING STATIONS

The two-part tariff for sale of electricity from Thermal Power Generating Stations shall comprise (a) the recovery of annual fixed charges consisting of interest on loan capital, depreciation, operation and maintenance expenses (excluding fuel), taxes on income reckoned as expenses, return on equity and interest on working capital at a normative level of generation, and (b) energy (variable) charges primarily covering the fuel cost recoverable for each unit (kiloWatt hour) of energy supplied and shall be based on the following norms :

1.1 OPERATION NORMS

The norms of Operation and Plant Load Factor as have been laid down by the Authority, for the time being, subject to modifications thereof, if any under sub-section (2) of section 43A of the said Act are as follows:

Notes :
(1) For abbreviations and definitions of various operating parameters refer Annexure A & B respectively.

(2) For Table of Contents refer to Annexure ‘D’.

(3) The norms laid down by the Authority are the ceiling norms only and this shall not preclude the Boards and Generating Companies from agreeing to accept improved norms.

(4) Operation Norms have been laid down for Steam Power Stations (with and without Flue Gas Desulphurisation, Circulating Fluidized Bed Boilers), Combined Cycle Combustion Turbine (CCCT) Generating Stations and Diesel Generating Stations.

(5) These specified norms shall apply for new and unused Steam Power Stations, CCCT Generating stations and Diesel Engine Generating Stations for the entire plant life.

(6) The norms for CCCT are based on the assumption that all blocks consisting of heavy duty industrial type (other than aero-derivative type) combustion turbines, Generator(s), associated Waste Heat Recovery Boiler(s) and associated Steam Turbine - Generator and Auxiliaries, are identical.

(7) The norms do not take into account special requirements such as de-salination plant, sewage water treatment system and Selective Catalytic Reactor (SCR), which are site specifics. Further the norms for CCCT do not take into account inlet air cooling/heating system, the duct fring or steam injection for augmented power generation & LNG re-gassification Plant. The norms for D.G. sets do not take into account the flue gas de-sulphurisation (FGD) system.

(8) Operation norms specified hereunder for CCCT generating station are primarily for combined cycle operation. Combustion turbine simple cycle operation is not envisaged except for the period between COD of the first combustion turbine and synchronisation of steam turbine generator of the Block ; and also on specific requirement of the Regional Electricity Board under grid emergency conditions.

1.1.1 INSTALLED CAPCITY

1.1.1.1 Steam Power Station

The Installed Capacity of a Generating Station shall be the Rated Capacity or the sum of Demonstrated Capacity of Units in a generating station whichever is less and shall be maintained throughout the plant Life, provided that (a) the sum of Demonstrated Capacity of Units shall not fall short by more than 10.0 percent of the Rated Capacity, and (b) where the sum of the Demonstrated Capacity of Units falls short by less than or equal to 10.0 percent of the Rated Capacity, each of the debt and equity components of the capital cost of the project shall be reduced pro-rata. In case the shortfall in the capacity exceeds 10 percent of the Rated Capacity, the project shall stand rejected. In case the sum of the Demonstrated Capacity of Units is more than the Rated capacity, the Rated capacity shall be taken as the Installed Capacity.

1.1.1.2 Combined Cycle Combustion Turbine (CCCT) Generating Station

The Installed Capacity of a CCCT Generating Station for the first year of plant operation shall be the Rated Capacity or the sum of the Demonstrated Capacities of the Blocks, whichever is less. For subsequent years of plant operation, the Installed Capacity shall be determined by multiplying the first year Installed Capacity by Capacity Degradation Factor for the corresponding year as given hereunder.

YEAR OF OPERATION

CAPACITY DEGRADATION FACTOR

Natural Gas / Liquefied Natural Gas (LNG)

Naphtha Natural Gas Liquid (NGL)
1

1.0000

1.000
2 0.9925 0.990
3 0.9850 0.980
4 0.9775 0.970
5 0.9700 0.960
6 0.9950 0.995
7 0.9875 0.985
8 0.9800 0.975
9 0.9725 0.965
10 0.9650 0.955
11 0.9950 0.995
12 0.9875 0.985
13 0.9800 0.975
14 0.9725 0.965
15 0.9650 0.955

Explanation:

1. In case of dual fuel operation, the Installed Capacity shall be determined in proportion to heat input of the fuels used.

2. In case of dual fuel operation, the Capacity Degradation Factor in any year shall be determined based on the weighted average of the Capacity Degradation Factors for the corresponding year in proportion of the cumulative generation in the preceding years with respective fuels.

3. The sum of the Demonstrated Capacities of the Blocks shall not fall short by more than ten (10) percent of the Rated Capacity and where the sum of the Demonstrated Capacities of the Blocks falls short by less than or equal to ten (10) percent of the Rated Capacity, each of the debt and equity components of the capital cost of the project shall be reduced pro-rata. In case the shortfall in the capacity exceeds ten (10) percent of the Rated Capacity, the project shall stand rejected. In case the sum of the Demonstrated Capacities of the Blocks is more than the Rated Capacity, the Rated Capacity shall be taken as the Installed Capacity for the first year of the plant operation.

1.1.1.3 Diesel Engine Generating Station

The Installed Capacity of the D.G. Generating Station shall be maintained at the level same throughout the plant life.

The sum of the Demonstrated capacities of the Units shall not fall short by more than 10 percent of the Rated Capacity and where the sum of the Demonstrated Capacities of the units falls short by less than or equal to 10 percent of the Rated Capacity, each of the debt and equity components of the capital cost of the project shall be reduced pro-rata of shortfall in capacity. In case the shortfall in the capacity exceeds 10 percent of the Rated Capacity, the project shall stand rejected. In case the sum of the Demonstrated Capacities is more than the Rated Capacity, the Rated Capacity shall be taken as the Installed Capacity.

1.1.2 PLANT LOAD FACTOR

1.1.2.1 Steam Power Station

1.1.2.1.1 Daily Plant Load Factor (DPLF)

The Daily Plant Load Factor (DPLF) shall not be less than 50 percent for the purpose of economic despatch of a Generating Station.

Note: (1) When any Unit is not available for the whole day, the daily PLF shall be calculated based on the number of Units in operation during the relevant day.

Note: (2) The DPLF shall be taken as the loading of the Generating Station for the purpose of determining the Daily Net Heat Rate or Daily Gross Heat Rate and Auxiliary Energy Consumption during the relevant day.

1.1.2.1.2 Annual Plant Load Factor (APLF)

The Annual Plant Load Factor shall not be less than 75.0 percent. In case of backing down, as ordered by the Regional Electricity Board, the Available Capacity shall be reckoned as power generated and the Deemed Annual Plant Load Factor shall be the criterion for the purpose of determination of incentive, provided that the Available Capacity shall not exceed the Rated Capacity.

1.1.2.1.3 Deemed Annual Plant Load Factor (DAPLF)

The Deemed Annual Plant Load Factor shall be calculated as per the following formula :

Deemed Annual plant Load Factor = (Sum of Deemed Daily Plant Load Factors) / 365

where the Deemed Daily Plant Load Factor (DDPLF) shall be determined by the following formula :

DDPLF = (Sum of Available Capacity for each Settlement Period of a day)
            -------------------------------------------------------------
            (Installed Capacity x No. of Settlement Periods in the relevant day)

1.1.2.2 Plant Load Factor for CCCT Generating Station

1.1.2.2.1 Settlement Period Plant Load Factor (SPLF)

The Settlement Period Plant Load Factor (SPLF) for CCCT Generating Station shall not be less than fifty (50) percent for the purpose of economic despatch.

Notes :

1. When any Block is not available for the whole settlement period, the SPLF shall be calculated based on the number of Blocks in operation during the relevant Settlement Period. When any Unit in a Block is not available for the whole Settlement Period, the SPLF shall be calculated after taking into account corresponding reduction in output of the Block.

2. When any Unit(s) operate(s) in simple cycle mode, the associated Block shall not be considered for determining SPLF of the Generating Station and the operational norms corresponding to simple cycle operation shall apply to such unit(s).

3. The SPLF shall be taken as the loading of the Generating Station for the purpose of determining the Net Heat Rate or Gross Heat Rate for the relevant Settlement period.

1.1.2.2.2 Annual Plant Load Factor (APLF)

The Annual Plant Load Factor shall not be less than seventy five (75) percent.

1.1.2.2.3 Deemed Annual Plant Load Factor (DAPLF)

For CCCT Generating Stations, the extent of backing down, as ordered by Regional Electricity Board shall be reckoned as power generated and the Deemed Annual Plant Load Factor (DAPLF) shall be calculated as per the following formula :

                             Sum of Deemed Settlement Period Plant Load Factors
DAPLF = ----------------------------------------------------------
                                     Number of Settlement Periods in a year

Where, Deemed Settlement Period Plant Load Factor (DSPLF) shall be determined by the following formula :

                          Available Capacity for a Settlement Period
DSPLF = -------------------------------------------
                                         Installed Capacity

Note : For determination of DSPLF in case of dual fuel operation, the Available Capacity and Installed Capacity shall be the weighted average corresponding to the fuel mix for the Settlement Period.

1.1.2.3 Plant Load Factor for Diesel Engine Generating Station

1.1.2.3.1 Annual Plant Load Factor (APLF)

The Annual Plant Load Factor shall not be less than 75.0%.

1.1.2.3.2 Deemed Annual Plant Load Factor (DAPLF)

Deemed Annual Plant Load Factor shall be calculated as per the following formula :

                                                       Sum of Deemed Daily Plant Load Factor
Deemed Annual Plant Load Factor = ------------------------------------
                                                                              365

where the Deemed Daily Plant Load Factor (DDPLF) shall be determined by the following formula :

                     Sum of Available Capacity for each settlement period of the day
DDPLF =         ----------------------------------------------------------------
                     Installed Capacity x No. of settlement periods in a day

1.1.3 NET HEAT RATE OF A GENERATING STATION

The Net Heat Rate shall be determined as per formula given at Annexure ‘B’under the following clauses:

(a). B- 1.12 for Steam Power Station
(b). B- 2.5.2 for CCCT Station
(c). B- 3.6.2 for Diesal Generating Station

1.1.4 GROSS HEAT RATE OF A GENERATING STATION

1.1.4.1 Steam Turbine Generator Cycle

The Gross Heat Rate of the Steam Turbine-Generator cycle shall be the relevant value as per following table.

Table : Gross Heat Rate for different loadings of Generating Station

Steam Turbine
Nominal Steam Parameter

Gross Heat Rate in kCal/kWh at loading of

  100% 80% 60% 50%
i. 170 Kg / cm2 (abs)/535 C/535 C 2000   2040 2100 2135
ii. 150 kg/cm2 (abs)/535 C/535 C 2040   2080 2140 2175
iii. 130 kg/cm2(abs)/535 C/535 C 2080   2120 2180 2215

Note : (a) The above specified Gross Heat Rate figures are for Turbine-Generator cycle with electric motor driven boiler feed pumps, and where steam turbine driven boiler feed pumps are used, the Gross Heat Rate shall be increased by 40kCal/kWh.

(b) The daily PLF shall be taken as the loading of the steam Turbine-Generator for the purpose of determination of Gross Heat Rate, for the relevant day.

(c) The Gross Heat Rate for any loading between any two above specified adjacent loadings shall be interpolated on pro-rata basis.

1.1.4.1.1 Steam Generator Efficiency

The Steam Generator Efficiency with coal or lignite or petroleum coke or vacuum residue fuels shall be determined by the following formula :

                                                        [ 50 A + 630 (M + 9 H)]
Steam Generator Efficiency = 92.5 -  --------------------------------
                                                                  GCV

Where, the Steam Generator Efficiency is based on GCV in percent.

'A' is the percentage ash content in the fuel,

'M' is the percentage moisture in the fuel and

'H' is the percentage hydrogen in the fuel.

Notes :

(i) The values of "GCV', 'A', 'M', and 'H' correspond to as fired basis.

(ii) The 'GCV' value 'as received' basis shall be reduced by 100kCal/kg and the value of 'M' increased by one percent to take into account heat lost between coal ‘as received’ and ‘as fired’ basis.

(iii) The values of 'GCV', 'A', 'M', and 'H' are the weighted average of all the consignments received during the month.

(iv) The Steam Generator Efficiency based on GCV with 'Corex' gas from steel industry shall not be less than 87.5 percent.

(v) Where a combination of fuels is used, the Steam Generator Efficiency shall be the weighted average figures based on the percentage of the fuels used.

1.1.4.2 Gross Heat Rate for a CCCT Generating Station

1.1.4.2.1 Combined Cycle Opertion

The Gross Heat Rate of the CCCT Block or Generating Station using Natural Gas/ Liquefied Natural Gas (LNG) as fuel at standard reference conditions as per the latest versions of ISO - 2314 and ISO 3977 shall be the relevant value as per the following table :

Table : Gross Heat Rate for different loadings of CCCT Generating Station

Categorisation based on ISO base rating of a CombustionTurbine (in simple cycle mode with Natural Gas/LNG as fuel) in the CCCT Block Gross Heat Rate of CCCT Generating Station in kCal/kWh at loading of
  100% 80% 60% 50%
i. 50 MW and less 1800 1850 1980 2080
ii. More than 50 MW and less than 200 MW 1680 1730 1850 1950
iii. 200 MW and above 1580  1630 1740 1840

Notes:

1. In case of CCCT Generating Stations using Naphtha/ Natural Gas Liquid (NGL) as fuel, the above specified Gross Heat Rate figures shall be multiplied by a factor of 1.02.

2. In case of CCCT Generating Stations using conventional combustor (other than dry low NOx) and steam / water injection for NOx control, Gross Heat Rate shall be increased as under :

Fuel Natural Gas/LNG Naphtha /NGL
NOx Emission Level 50 ppm 100 ppm
Max. heat rate Degradation,
In kCal/kWh, with
   
i) Water injection 100 50
ii) Steam injection  75 35

In case NOx emission levels stipulated in Environmental Clearance are different from the above values, the heat rate degradation applicable shall be determined in proportion of the ratio of above stated NOx levels to the NOx levels stipulated in Environmental Clearance.

If dry low NOx combustors are used in conjunction with water/steam injection, corresponding adjustment in heat rate shall be based on manufacturer's guarantees.

3) For the purpose of determination of Gross Heat Rate for the relevant Settlement Period, the SPLF shall be taken as the loading of the CCCT Generating Station.

4) Gross Heat Rate for any loading between any two above specified adjacent loadings shall be interpolated on pro-rata basis.

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