&WPOJL *OEVTUSJFT "(

Rellnqhauser Sfrae -
Essen
Germany
$POUBDU
Sandra Khberqer
+ -
+ -
sandra.kuehberqer[evonk.com
Texf avalable fo download af
www.evonk.com
Nay be reproduced Iree oI charqe, provded
source s sfafed
With growth averaging 8 percent over the last few years, the
economy of India is booming. Experts estimate that an advanced
and reliable infrastructure could even boost growth by two
more percentage points. Because expansion of the infrastructure
has been unable to keep pace with the speed of development,
however, action is urgently needed to improve it. The Indian
government is planning to invest some 450 billion in its
domestic infrastructure by 2015an enormous sum. A major
portion of the scheduled investment will go to the energy sector.
India: Energy
for the Future
Product Story No. xx, September xx,2008
India suffers from a chronic electricity shortage: Existing power plants
are far from able to supply the demand. According to estimates,
demand for energy in India exceeds supply by as much as 15 percent
during peak load times. The situation has only worsened with the
rapid growth in population and booming economy. To meet this de-
mand, the Indian government is planning to expand the current power
plant capacity of about 140 gigawatts by more than 50 percent by the
year 2012. In real fgures: This means about 80 gigawatts of additional
capacity, which corresponds to the entire installed capacity of Great
Britain.
To implement this ambitious program, the government is relying on
the private sector: Investors, both Indian and foreign, have been
encouraged for several years. For private companies, the door is
wide open, and outstanding opportunities await suppliers of qualifed
engineering services like Evonik Energy Services GmbH. As experts
in power plant technology, the company bundles not only its entire
engineering and consulting know-how from sixty years of power
generation and plant construction, but also has broad-based experience
in power plant construction outside Germany. Thus far, the company
has realized successful power plant projects in about 60 countries
worldwide. This combination of knowledge and experience is paying
off: The company has just concluded a blanket agreement with the
National Thermal Power Corporation (NTPC), the largest energy
producer in India, to equip 14 new power plants with online optimi-
zation systems developed by Evonik. There is also an option to
supply as many as 40 additional systems.
About 80 gigawatts of power plant capacity
is scheduled to be added by 2012power
equal to the entire installed capacity of
Great Britain.
Source: Central Electricity Authority
Power Generation Capacities are increasing rapidly
Installed capacities and
scheduled capacities
(in gigawatts) 1992 1997 2002 2003 2004 2005 2006 2007 2012
250
200
150
100
50
0
Product Story No. xx, Page 2, September xx, 2008
An enormous contract, and a tremendous achievement on our part,
stresses Dr. Ralf Gilgen, CEO of Evonik Energy Services. Projects of
this size in the area of operational support systems wont come along
again anywhere in the world.
But the opportunities arent limited to construction of new power
plants. In India, a country poor in raw materials, energy effciency is
gaining increasing importance. In its endeavor to fnd new solutions,
the subcontinent is looking toward Germany, which is setting bench-
marks in effciency. In Duisburg-Walsum in North Rhine-Westphalia,
Evonik has built the most advanced power plant in Europe (Walsum 10)
with an effciency ratio of over 45 percenta reference project eagerly
visited by delegations from India.
Indias power plants, which are largely coal fred, offer massive poten-
tial for increasing effciency. This is shown by a study sponsored by
the German society for technical cooperation (GTZGesellschaft fr
Technische Zusammenarbeit GmbH), in which Evonik is examining 85
existing power plants for their effciency potential. The data for the
55 power plants already investigated shows that their actual effciency
ratio is signifcantly below the possible parameters. While the optimal
solution would be complete revamping of the power plants, this
approach would require shutting down the plants for between 12 and
15 monthsan impossible option for power plant operators and
energy supply companies in light of the already strained situation.
Customized modernization.
Product Story No. xx, Page 3, September xx, 2008
Here, Evonik engineers offer an alternative that takes account of the
special needs of India. Instead of complete revamping, the power
plant can be modernized in key areas to help promote effciency.
This customized modernization can also be done as part of normal
revision work. By this method, the power plant will be off the grid
for only about two to three months. The solution requires conscienti-
ous and thorough planning, which can take as long as two solid years.
Evonik has already proven that this model works, and can cite the
modernization of the Ropar power plant in northern India as just one
example. First, the company conducted extensive studies on behalf
of the Punjab State Electricity Board (PSEB) to evaluate the existing
situation. It then developed simulations, performance tests and eco-
nomic analyses to allow lasting modernization. Short-term measures
have already been implemented and have led to immediate improve-
ments. Complete modernization is in preparation, and should be
concluded by 2010.
Coal dominates power generation in India
Source: Central Electricity Authority
Gas
10.2%
Coal
53.1%
Nuclear enerqy
3.0%
Renewable
(excl. larqe-scale hydro-
elecfrc power planfs)
7.5%
Hydroelecfrc power
(larqe scale power planfs)
25.2%
Desel]Ol
0.%
Percenfaqe shares oI nsfalled capacfes (2007)

$PBMEPNJOBUFTQPXFSHFOFSBUJPOJO*OEJB
Product Story No. xx, Page 4,September xx, 2008
Engineering know-how is necessary for the success of modernization
measuresbut its not the only ingredient: Almost equal in importance
is the fact that we understand the local conditions precisely, and know
what moves our customer, stresses Heiko Schierenbeck, head of
development for activities outside Germany at Evonik Energy Services
GmbH. Its useless to sit at a drawing table drafting solutions in
Germany. We have to have a local presence and understand our envi-
ronment exactly in order to offer a really conclusive solution.
Not least, Evonik engineers have the subsidiary Evonik Energy Services
India in Noida near New Delhi to thank for insight into the local situa-
tion. The offce opened in the Indian metropolis nearly seven years
ago with only a handful of employees. Now, the workforce numbers
about 170 and continues to grow. With technological expertise, years
of experience, and an outstanding network, the engineers, in close
cooperation with their German colleagues in the power plant market
in India, have carved out a unique position. The prospects are bright,
therefore, in a market poised to continue its dynamic development
over the next few years, given the growing hunger for energy.
Product Story No. xx, Page 5, September xx, 2008