PAT- Perform, Achieve & Trade

July 2016 1
 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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 The PAT Scheme : A brief

• One of the initiatives under NMEEE (National Mission on Enhanced

Energy Efficiency) by GOI.

• A market based mechanism to make improvement in energy

efficiency 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 3

 The PAT Cycle-1 : A brief

List of DCs (Designated Consumers)

Industry Sector No. of Identified DCs
PAT-1 PAT-2
Aluminum 10 12
Cement 85 111
Chlor-Alkali 22 24
Fertilizer 29 37
Pulp & Paper 31 29
Power 144 154
Iron & Steel 67 71
Textiles 90 99
Pertolium 18
Railways 22
Electric distribution Company 44

478 621

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 The PAT -1 : A brief

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

7%
Almunium
12%
1% Cement
Chlor-Alkali
48% 7% Fertilizer
Iron & Steel
Pulp & Paper
Textiles
22% Power

1% 2%
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 The PAT -1 : A brief

Net Heat Rate & Mtoe

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

Gross heat rate = Thermal energy of the fuel consumed

Gross Electricity generated

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

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 The PAT Scheme : A brief

Targets for Power Stations

• 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) 7

 The PAT : A brief

PAT Targets Calculation for Power Stations

Deviation in Net Station Reduction Target as Range of Reduction to be
Heat Rate from Design Net % of deviation achieved
Heat Rate

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 21% 2.1% to 4.2%

20%

More than 20% 24% 4.8% and above

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 The PAT Scheme : A brief

PAT Scheme

• 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.

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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
 PAT -1 Normalization gas Unit

• 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 Strategies

• Net heat rate (NHR) action plan developed for each station segregated into
2 categories:
• Actions without additional investment
• Actions with additional investment

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

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 PAT Strategies
Summary of actions without additional investments

• 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)

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 PAT Strategies
Summary of actions without additional investments (contd.)

• 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.

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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 house
Any 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
Summary of actions with additional Investments
• 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

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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 Activities- To Achieve Target
• Board approved Rs.190 Cr for PAT schemes of which Rs140 .83 Cr budget was
sanctioned. (Utilized 50 Cr)
• R&M activities during this period having positive impact on APC & Heat rate
improvement also contributed.
• At policy front matter taken up continuously with BEE for Normalization of various
factors which is not under the control of DC (Designated Consumer). Nos of senior
level / working level meetings with DG BEE / working team held & representation
given to with DG BEE.

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 PAT Target Achievement Activities
• 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 audit
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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

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 PAT -1 Trading of Ecerts
• 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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THANKS

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