Note on energy efficiency improvement in Thermal Power Plants

Towards efficiency improvement and consequent reduction of carbon footprint,

Bureau of Energy Efficiency under the Ministry of Power is implementing a scheme
called Perform, Achieve and Trade (PAT). Under PAT scheme, thermal power plants
are included as Designated Consumer (DC). The categorization of these plants is
based on fuel i.e. Coal/Lignite, Oil/Diesel and Gas consumed in plant with a capacity
ranging from 15 MW to 4620 MW and Net Operating Heat Rate (NOHR) ranging
from 1590 kCal/kWh to 5134 kCal/kWh.

The PAT scheme is designed to reduce the specific energy consumption (SEC) i.e.
energy used per unit of production over a period of three years from their current
levels of energy efficiency. In case of thermal power station, the SEC is known as
Net Heat Rate in kcal/kWh.

Under PAT scheme, 225 number of thermal power stations with a capacity of about
181 GW which is almost 90% of total capacity of generating units has been covered
till date. The summary of number of stations with their capacity and state wise list of
stations may be seen at Annex - I and Annex – II respectively.

The methodology adopted in thermal power plant for target setting for heat rate
improvement is based on arithmetic average of Gross Design Heat Rate (kcal/kWh),
Gross Operating Heat Rate (kcal/kWh) and Auxiliary Power consumption (%) of
baseline years. The targets are specified in terms of specific percentage of their
present deviation of Net Operating Heat Rate from the Net Design Heat Rate. The
stations are classified into various bands according to their present deviations of
operating heat rate from design heat rate and stations from higher deviation are
given higher targets.

The indicative classification and targets for various bands for the generating stations
are as under:

Category Variation in Net Heat Rate from Reduction Target for

Design Net Heat Rate % deviation in the Net
 Heat Rate
I 0–2% 0%
II More than 2% to up to 5% 10 %
III More than 5% and up to 10 % 17 %
IV More than 10 % and up to 20 % 21%
V More than 20 % 24 %

The PAT Cycle II that was notified in 2016 with 154 number of thermal power
stations, has been completed in March, 2019 and monitoring and verification of
designated consumers (DCs) by empanelled agencies have been carried out. The
evaluation of their performance is going on. The energy saving target of 3.13 million
tonne of oil equivalent (equivalent to about 12.7 million tonne of CO2) is expected to
be achieved by all station covered under this cycle.

Further, towards improving efficiency in thermal power plants, BEE has initiated an
Energy Mapping exercise in some of the most inefficient Power Plants across India
to examine the efficiency gaps in such Thermal Power Plants. From such mapping
exercise, it is expected that the emission reduction of about 4.21 million tonnes of
CO2 would be realised.
Further towards improving efficiency in thermal power plants, BEE has initiated an
Energy Mapping Exercise in some of the most inefficient Power Plants across India
to examine the efficiency gaps in such Thermal Power Plants. In Phase-I, 10 TPPs
were shortlisted for this pilot project of energy mapping through diagnostic tool. The
emission reduction of about 0.844 million tonnes of CO2 has been realised during
phase-I. Short-, Medium- and long-term energy measures have also been suggested
to TPPs to reduce the heat rate deviation below 5%.

Continuing the objective of heat rate i.e., to get potential improvement in heat rate of
selected TPPs, 38 (23 State+7 Central+8 Private) Thermal Power Plants with heat
rate deviation of above 10% have been identified for Phase-II of energy mapping
exercise. From proposed Phase-II mapping exercise, it is expected that the emission
reduction of about 21.17 million tonnes of CO2 would be realised.

Further, in order to ensure efficient utilization of scarce coal resources and curb
pollution, in accordance with the recommendation of report of the High-Level
Empowered Committee (HLEC) to Address the issues of Stressed Thermal power
Projects, Ministry of Power has proposed norms for retirement of old and inefficient
plants in next 2 - 3 years.
The Bureau of Energy Efficiency (BEE) in association with CEA, has proposed
following efficiency-based criteria for retirement of old and inefficient thermal power
generating units.
 It is proposed that thermal power units having completed 25 years of operation
from the COD and having average operating gross heat rate of more than 2600
Kcal/kWh since last two years may be considered for retirement unless such
units reduce their operating heat rate to 2600 Kcal/kWh or below by R&M and LE
activities. The R&M and LE activities must be completed within the timeframe
mentioned in CEA’s guideline namely,” Methodology of implementation of norms
or guidelines for retirement of old and inefficient thermal power units”.
 The operating heat rate of the unit shall be based on coal GCV measured on ‘as
receipt basis’ at the plant end.
 The above guidelines shall not be applicable for captive power plants.