UNIVERSITY OF PETROLEUM & ENERGY

STUDIES, DEHRADUN

Report on Problems and prospects of Setting up a
Thermal power Plant

Prepared for
Dr. Neeraj Anand
(Faculty for Project Management and Contract Administration)

Prepared by
Subhadip Manna
i

Table of contents
1. Introduction ................................................................................................................................................. 1
2. Basics of Thermal Power Plant .................................................................................................................... 5
2.1 Classification of Thermal power plant ................................................................................................................ 6
2.2 Working of Thermal power plant ........................................................................................................................ 9
2.3 Advantages of Thermal Power .......................................................................................................................... 10
2.4 Disadvantages of Thermal Power ..................................................................................................................... 10
2.5 Efficiency: ......................................................................................................................................................... 11
2.6 Power Companies in India. ............................................................................................................................... 13
3. Prospects of Setting up a Thermal Power Plant ........................................................................................ 15
3.1 LOCATION ....................................................................................................................................................... 16
3.2 WASTE MANAGEMENT ................................................................................................................................... 17
3.3 Effluent and disposal ......................................................................................................................................... 18
3.4 Water Balance and Water Conservation in Thermal Power Stations ............................................................... 19
4. Clearance Required Setting up a Thermal Power Plant ................................................................................ 20
4.1 Some basic Problems for Thermal Power plant Planning. ................................................................................. 21
5. Environmental checklist for Thermal Power Plant ....................................................................................... 22
5.1Tools for assessment and analysis ..................................................................................................................... 22
5.2 Guidelines of central electricity authority [CEA], government of India, .......................................................... 23
for site selection of coal-based thermal power stations .......................................................................................... 23
5.3 Guidelines for site selection of coal-based thermal power stations set by the MoEF ....................................... 24
6. EIA study report. ............................................................................................................................................ 24
6.1 Project Cycle ..................................................................................................................................................... 24
6.2 Project Analysis ................................................................................................................................................ 25
7. CONCLUSION ............................................................................................................................................... 27
8. REFERENCE ................................................................................................................................................. 28


1

1. Introduction

Power generation is the harbinger of economic growth and industrial development of any
country. Although it is a life stream of country like India, it contributes to the GHG emissions as
the fossil fuels have major share in total power generation. The section covers the current power
situation in India, development of renewable energy sources, central and state policies, future
energy projections, current power delivery system etc.
The electricity sector in India had an installed capacity of 210.951 GW as of December 2012, the
world's fifth largest. Captive power plants generate an additional 31.5 GW. Non Renewable
Power Plants constitute 88.55% of the installed capacity and 11.45% of Renewable Capacity.
India generated 855 BU (855 000 MU i.e. 855 TWh) electricity during 2011-12 fiscal.
In terms of fuel, coal-fired plants account for 56% of India's installed electricity capacity,
compared to South Africa's 92%; China's 77%; and Australia's 76%. After coal, renewal
hydropower accounts for 19%, renewable energy for 12% and natural gas for about 9%.
In December 2011, over 300 million Indian citizens had no access to electricity. Over one third
of India's rural population lacked electricity, as did 6% of the urban population. Of those who did
have access to electricity in India, the supply was intermittent and unreliable. In 2010, blackouts
and power shedding interrupted irrigation and manufacturing across the country.
The per capita average annual domestic electricity consumption in India in 2009 was 96 kWh in
rural areas and 288 kWh in urban areas for those with access to electricity, in contrast to the
worldwide per capita annual average of 2600 kWh and 6200 kWh in the European Union. India's
total domestic, agricultural and industrial per capita energy consumption estimate varies
depending on the source. Two sources place it between 400 to 700 kWh in 20082009. As of
January 2012, one report found the per capita total consumption in India to be 778 kWh.
India currently suffers from a major shortage of electricity generation capacity, even though it is
the world's fourth largest energy consumer after United States, China and Russia. The
International Energy Agency estimates India needs an investment of at least $135 billion to
provide universal access of electricity to its population.
The International Energy Agency estimates India will add between 600 GW to 1200 GW of
additional new power generation capacity before 2050. This added new capacity is equivalent to
the 740 GW of total power generation capacity of European Union (EU-27) in 2005. The
technologies and fuel sources India adopts, as it adds this electricity generation capacity, may
make significant impact to global resource usage and environmental issues.
2

India's electricity sector is amongst the world's most active players in renewable energy
utilization, especially wind energy. As of December 2011, India had an installed capacity of
about 22.4 GW of renewal technologies-based electricity, exceeding the total installed electricity
capacity in Austria by all technologies.
India's network losses exceeded 32% in 2010 including non-technical losses, compared to world
average of less than 15%. Both technical and non-technical factors contribute to these losses, but
quantifying their proportions is difficult. But the Government pegs the national T&D losses at
around 24% for the year 2011 & has set a target of reducing it to 17.1% by 2017 & to 14.1% by
2022. Some experts estimate that technical losses are about 15% to 20%, A high proportion of
nontechnical losses are caused by illegal tapping of lines, but faulty electric meters that
underestimate actual consumption also contribute to reduced payment collection. A case study in
Kerala estimated that replacing faulty meters could reduce distribution losses from 34% to 29%.
Key implementation challenges for India's electricity sector include new project management
and execution, ensuring availability of fuel quantities and qualities, lack of initiative to develop
large coal and natural gas resources present in India, land acquisition, environmental clearances
at state and central government level, and training of skilled manpower to prevent talent
shortages for operating latest technology plants.
Despite the global slowdown, the Indian economy is expected to grow at 7.6 percent in the
current fiscal. In order to encourage a compassionate environment for economic development,
equal contribution from all major sectors is required. Power sector is unanimously been accepted
as one of the vital inputs for economic growth. The overall growth of the Indian economy is
dependent on the performance of power sector.
The present level of energy consumption in India is quite low at 778 units per person when
compared to the global average of 2300 units per person. According to the Electric Power
Survey, the energy requirement of India is expected to increase multifold from 9, 02,275 MUs in
2011-12 to 37, 10,083 MUs in 2031-32. In order to meet this increasing requirement, the
government is planning for massive capacity additions in conjunction with bringing efficient
changes in the power verticals of transmission, distribution and trading.
However, in the past few years, the pace and stage of development of power sector has been
slow in all the major segments. Due to several unattended issues wheeling the sector, capacity
addition target was revised from 78,700 MW to 62,374 MW. The final capacity addition further
stands much lower than the revised target at 54,000 MW.



3











The government has scaled down its target of 75, 785 MW for the XII Plan from the previously
planned 100000 MW. Of which, about 63, 781 MW is to come from Thermal sources, 9,204
MW from hydro and 2800 MW from Nuclear sources. In the XII Plan about 42,131 MW
capacity additions is expected to come from the private sector alone.






















Major Reasons for Slippages
Lack of fuel security. Shortage of coal Supply and unallocated gas is
hard hitting the operation of power plants.
Delay in order placements for main plant in thermal projects.
Delay in order placements for civil works for thermal.
Delay in order placement by BHEL.
Delay in Land acquisition and environmental clearances.
Private players overriding the
sector; 56% of capacity
addition in 12th Plan to come
from private pool. The
remaining from 26% central
and18% from state.
Coal demand-supply gap
continues to diverge and the
gap between expected
demand and indigenous
availability is likely to reach
137.03 MT by this plan
which is to be met by
imports. The Gap is likely to
widen to 200 MT by the end
of FY17.
Gas demand supply gap is also set to
diverge in the coming years. The
present gas demand only from power
sector is 61 mmscmd which is likely to
translate into a demand of 207
mmscmd by the end of XII Plan. The
total overall domestic availability of
gas is only 209 mmscmd and about
150 mmscmd is expected to be
imported in the XII Plan.
The Twin
Fuel Issues
Coal shortage is likely to hit 46, 000
MW power projects.
Costly imported fuel is eroding the
profit margins of the producers.
SEBs is unwilling to accommodate
high-priced electricity.
Supply security from domestic sources
yet not ensured.
The government has asked the power
producers to abstain from setting up new
gas based plants as the irregularity in gas
supply is threatening the viability of
37,000 MW of existing and upcoming
projects.
The government has also advised the
developers not to plan domestic gas
based
projects till 2015-16.
4

Initiatives for Coal Initiatives for Gas

















In order to secure the supply of coal
in the country the government is
looking forward to the captive coal
blocks. Govt. has notified rules for
allocation of coal blocks through
competitive bidding. About 50 coal
blocks are to be allocated through
this route. There is still lack of
effective policy implementation in
these terms and there is an urgent
need to tie these, to yield
productive outcomes in terms of
coal production.
Many Indian firms are also trying to
acquire coal assets abroad to
comply with the rising coal needs
The government needs to make
amendments to its policies to attract
more players in Exploration and
Production activities.
The government is making arrangements
in sourcing gas from foreign countries like
Canada. Besides, India is also setting eyes
on Shale Gas from U.S.
Apart from sourcing gas from abroad, it is
necessary to enlarge the domestic base
for natural gas. For this, it is essential to
remove the road blocks hindering the
market dynamics of the Gas sector.
5

2. Basics of Thermal Power Plant

What is thermal power?
A thermal power station is a power plant in which the prime mover is steam driven. Water
is heated, turns into steam and spins a steam turbine which drives an electrical generator.
After it passes through the turbine, the steam is condensed in a condenser and recycled to
where it was heated; this is known as a Rankine cycle. The greatest variation in the design of
thermal power stations is due to the different fuel sources. Some prefer to use the term energy
center because such facilities convert forms of heat energy into electricity. Some thermal power
plants also deliver heat energy for industrial purposes, for district heating, or for desalination of
water as well as delivering electrical power.
Installed thermal power capacity
The installed capacity of Thermal Power in India, as of October 31, 2012, was 140206.18 MW
which is 66.99%of total installed capacity.
Current installed base of Coal Based Thermal Power is 120,103.38 MW which comes to
57.38% of total installed base.
Current installed base of Gas Based Thermal Power is 18,903.05 MW which is 9.03% of
total installed capacity.
Current installed base of Oil Based Thermal Power is 1,199.75 MW which is 0.57% of total
installed capacity.
The state of Maharashtra is the largest producer of thermal power in the country.

In thermal power stations, mechanical power is produced by a heat engine that transforms
thermal energy, often from combustion of a fuel, into rotational energy. Most thermal power
stations produce steam, and these are sometimes called steam power stations. Not all thermal
energy can be transformed into mechanical power, according to the second law of
thermodynamics. Therefore, there is always heat lost to the environment. If this loss is employed
as useful heat, for industrial processes or district heating, the power plant is referred to as a
cogeneration power plant or CHP (combined heat-and-power) plant. In countries where district
heating is common, there are dedicated heat plants called heat-only boiler stations. An important
class of power stations in the Middle East uses by-product heat for the desalination of water.
The efficiency of a steam turbine is limited by the maximum temperature of the steam produced
and is not directly a function of the fuel used. For the same steam conditions, coal, nuclear and
gas power plants all have the same theoretical efficiency. Overall, if a system is on constantly
(base load) it will be more efficient than one that is used intermittently (peak load).
6

Besides use of reject heat for process or district heating, one way to improve overall efficiency of
a power plant is to combine two different thermodynamic cycles. Most commonly, exhaust gases
from a gas turbine are used to generate steam for a boiler and steam turbine. The combination of
a "top" cycle and a "bottom" cycle produces higher overall efficiency than either cycle can attain
alone.
2.1 Classification of Thermal power plant

By fuel
Fossil-fuel power stations may also use a steam turbine generator or in the case of natural
gas-fired plants may use a combustion turbine. A coal-fired power station produces electricity by
burning coal to generate steam, and has the side-effect of producing large amounts of sulfur
dioxide which pollutes air and water and carbon dioxide, which contributes to global warming.
About 50% of electric generation in the USA is produced by coal-fired power plants
Nuclear power plants use a nuclear reactor's heat to operate a steam turbine generator.
About 20% of electric generation in the USA is produced by nuclear power plants.
Geothermal power plants use steam extracted from hot underground rocks.
Biomass-fuelled power plants may be fuelled by waste from sugar cane, municipal solid
waste, landfill methane, or other forms of biomass.
In integrated steel mills, blast furnace exhaust gas is a low-cost, although low-energy-
density, fuel.
Waste heat from industrial processes is occasionally concentrated enough to use for
power generation, usually in a steam boiler and turbine.
Solar thermal electric plants use sunlight to boil water and produce steam which turns the
generator.
By prime mover
Steam turbine plants use the dynamic pressure generated by expanding steam to turn the
blades of a turbine. Almost all large non-hydro plants use this system. About 90% of all electric
power produced in the world is by use of steam turbines.
Gas turbine plants use the dynamic pressure from flowing gases (air and combustion
products) to directly operate the turbine. Natural-gas fuelled (and oil fueled) combustion turbine
plants can start rapidly and so are used to supply "peak" energy during periods of high demand,
though at higher cost than base-loaded plants. These may be comparatively small units, and
7

sometimes completely unmanned, being remotely operated. This type was pioneered by the UK,
Princetown being the world's first, commissioned in 1959.
Combined cycle plants have both a gas turbine fired by natural gas, and a steam boiler
and steam turbine which use the hot exhaust gas from the gas turbine to produce electricity. This
greatly increases the overall efficiency of the plant, and many new base load power plants are
combined cycle plants fired by natural gas.
Internal combustion reciprocating engines are used to provide power for isolated
communities and are frequently used for small cogeneration plants. Hospitals, office buildings,
industrial plants, and other critical facilities also use them to provide backup power in case of a
power outage. These are usually fuelled by diesel oil, heavy oil, natural gas, and landfill gas.
Micro turbines, Stirling engine and internal combustion reciprocating engines are low-
cost solutions for using opportunity fuels, such as landfill gas, digester gas from water treatment
plants and waste gas from oil production.
By duty
Power plants that can be dispatched (scheduled) to provide energy to a system include:
Base load power plants run nearly continually to provide that component of system load
that doesn't vary during a day or week. Base load plants can be highly optimized for low fuel
cost, but may not start or stop quickly during changes in system load. Examples of base-load
plants would include large modern coal-fired and nuclear generating stations, or hydro plants
with a predictable supply of water.
Peaking power plants meet the daily peak load, which may only be for a one or two hours
each day. While their incremental operating cost is always higher than base load plants, they are
required to ensure security of the system during load peaks. Peaking plants include simple cycle
gas turbines and sometimes reciprocating internal combustion engines, which can be started up
rapidly when system peaks are predicted. Hydroelectric plants may also be designed for peaking
use.
Load following power plants can economically follow the variations in the daily and
weekly load, at lower cost than peaking plants and with more flexibility than base load plants.
Non-dispatch able plants include such sources as wind and solar energy; while their long-term
contribution to system energy supply is predictable, on a short-term (daily or hourly) base their
energy must be used as available since generation cannot be deferred. Contractual arrangements
(take or pay") with independent power producers or system interconnections to other networks
may be effectively non-dispatch able.
8

Thermal power plants can deploy a wide range of technologies. Some of the major
technologies include:
Steam cycle facilities (most commonly used for large utilities);
Gas turbines (commonly used for moderate sized peaking facilities);
Cogeneration and combined cycle facility (the combination of gas turbines or internal
combustion engines with heat recovery systems); and
Internal combustion engines (commonly used for small remote sites or stand-by power
generation).
India has an extensive review process, one that includes environment impact assessment, prior to
a thermal power plant being approved for construction and commissioning. The Ministry of
Environment and Forests has published a technical guidance manual to help project proposers
and to prevent environmental pollution in India from thermal power plants.

Schematic Diagram of Thermal power plant.



Typical diagram of a coal-fired thermal power station
1. Cooling tower 10. Steam Control valve 19. Superheater
2. Cooling water pump 11. High pressure steam turbine 20. Forced draught (draft) fan
9

3. transmission line (3-phase) 12. Deaerator 21. Reheater
4. Step-up transformer (3-phase) 13. Feedwater heater 22. Combustion air intake
5. Electrical generator (3-phase) 14. Coal conveyor 23. Economiser
6. Low pressure steam turbine 15. Coal hopper 24. Air preheater
7. Condensate pump 16. Coal pulverizer 25. Precipitator
8. Surface condenser 17. Boiler steam drum 26. Induced draught (draft) fan
9. Intermediate pressure steam
turbine
18. Bottom ash hopper 27. Flue gas stack

2.2 Working of Thermal power plant
Feed water heater
A feed water heater is a power plant component used to pre-heat water delivered to
a steam generating boiler. Preheating the feed water reduces the irreversibility involved in steam
generation and therefore improves the thermodynamic efficiency of the system. This reduces
plant operating costs and also helps to avoid thermal shock to the boiler metal when the feed
water is introduced back into the steam cycle.
Boiler
A boiler is a closed vessel in which water or other fluid is heated. The heated or vaporized fluid
exits the boiler for use in various processes or heating applications.
Steam condensing
The condenser condenses the steam from the exhaust of the turbine into liquid to allow it to be
pumped. If the condenser can be made cooler, the pressure of the exhaust steam is reduced and
efficiency of the cycle increases.
Electrical Generator
In electricity generation, an electric generator is a device that converts mechanical
energy to electrical energy.


10

Steam Turbine
A steam turbine is a mechanical device that extracts thermal energy from pressurized steam,
and converts it into rotary motion.
2.3 Advantages of Thermal Power
1. The fuel used is quite cheap.
2. Less initial cost as compared to other generating plants.
3. It can be installed at any place irrespective of the existence of coal. The coal can be
transported to the site of the plant by rail or road.
4. It requires less space as compared to Hydro power plants.
5. Cost of generation is less than that of diesel power plants.
6. They can be located very conveniently near the load centers.
7. Does not require shielding like required in nuclear power plant
8. Unlike nuclear power plants whose power production method is difficult, for thermal
power plants it is easy.
9. Transmission costs are reduced as they can be set up near the industry.
10. The portion of steam generated can be used as process steam in different industries.
11. Steam engines and turbines can work under 25% of overload capacity.
12. Able to respond changing base loads without difficulty.
2.4 Disadvantages of Thermal Power
1. It pollutes the atmosphere due to production of large amount of smoke and fumes.
2. Large amounts of water are required.
3. Takes long time to be erected and put into action.
4. Maintenance and operating costs are high.
11

5. With increase in pressure and temperature, the cost of plant increases.
6. Troubles from smoke and heat from the plant, disposal of ash.

2.5 Efficiency:

The energy efficiency of a conventional thermal power station, considered as salable energy as a
percent of the heating value of the fuel consumed, is typically 33% to 48%. This efficiency is
limited as all heat engines are governed by the laws of thermodynamics. The rest of the energy
must leave the plant in the form of heat. This waste heat can go through a condenser and be
disposed of with cooling water or in cooling towers. If the waste heat is instead utilized for
district heating, it is called co-generation. Important classes of thermal power station are
associated with desalination facilities; these are typically found in desert countries with large
supplies of natural gas and in these plants, freshwater production and electricity are equally
important co-products.
The Carnot efficiency dictates that higher efficiencies can be attained by increasing the
temperature of the steam. Sub-critical fossil fuel power plants can achieve 3640%
efficiency. Super critical designs have efficiencies in the low to mid 40% range, with new "Ultra
critical" designs using pressures of 4400 psi (30.3 MPa) and multiple stage reheat reaching about
48% efficiency. Above the critical point for water of 705 F (374 C) and 3212 psi (22.06 MPa),
there is no phase transition from water to steam, but only a gradual decrease in density.
Current nuclear power plants must operate below the temperatures and pressures that coal-fired
plants do, since the pressurized vessel is very large and contains the entire bundle of nuclear fuel
rods. The size of the reactor limits the pressure that can be reached. This, in turn, limits their
thermodynamic efficiency to 3032%. Some advanced reactor designs being studied, such as
the Very high temperature reactor, advanced gas-cooled reactor and super critical water reactor,
would operate at temperatures and pressures similar to current coal plants, producing comparable
thermodynamic efficiency.
12



Heat rate
A form of expressing efficiency of an engine or turbine. The fuel heating value consumed per
unit of useful output (usually electrical output). Common unit is kJ/kWh. To convert to
efficiency divide by 3600 and invert.
Heat Rate (Generated) (kJ/kWh)
Quantity fuel (kg) * higher heating value of fuel consumed (kJ/kg) divided by:
Total energy generated (kWh)
Heat Rate (gen) is related to Efficiency (gen) by:
Heat Rate (gen) (kJ/kWh) = 3600 * 100 divided by:/ Efficiency (gen) (%)
Heat Rate (Sent Out) (kJ/kWh)
Quantity fuel (kg) * higher heating value of fuel consumed (kJ/kg) divided by:/ Total energy
generated (kWh) - Total auxiliary energy (kWh)
Heat Rate (s/o) is related to Efficiency (s/o) by
Heat Rate (s/o) (kJ/kWh) = 3600 * 100 ./ Efficiency (s/o) (%)

13


2.6 Power Companies in India.

The following 58 pages are in this category, out of 58 totals. This list may not reflect recent changes (learn
more).
A G N
Adani Power Gujarat Urja Vikas Nigam
Nuclear Power Corporation of
India
Andhra Pradesh Central Power
Distribution Company
H O
Andhra Pradesh Power
Generation Corporation
Haryana Power Generation
Corporation
Orissa Power Generation
Corporation
Astonfield I P
B Indraprastha Power Generation Paschim Gujarat Vij
Bombay Electric Supply &
Tramways Company Limited
J Punjab State Power Corporation
Brihanmumbai Electric Supply
and Transport
Jindal Steel and Power R
British Electric Traction
Company
JSW Energy
Rajasthan Rajya Vidyut Utpadan
Nigam
C K Reliance Infrastructure
CESC Limited
Karnataka Power Corporation
Limited
Rural Electrification Corporation
Limited
Chamundeshwari Electricity
Supply Corporation Limited
L S
Chhattisgarh State Power
Generation Company Limited
Lanco Infratech Sterlite Energy Limited
Clarke Energy
List of electricity organisations in
India
T
D M
Tamil Nadu Generation and
Distribution Corporation Limited
Dabhol Power Company Madhya Gujarat Vij
Tamil Nadu Transmission
Corporation Limited
Dakshin Gujarat Vij Company
Ltd.
Madhya Pradesh Power
Generation Company Limited
Tata Power
Dakshin Haryana Bijli Vitran
Nigam
Maharashtra State Electricity
Distribution Company Limited
TNEB
Damodar Valley Corporation
Maharashtra State Power
Generation Company Limited
Torrent Power
Delhi Transco Limited
Mangalore Electricity Supply
Company Limited
Transmission Corporation of
Andhra Pradesh
14

E MSPL Limited U
Essar Energy N Uttar Gujarat Vij
G Neyveli Lignite Corporation
Uttar Haryana Bijli Vitran
Nigam
User talk:Gkd1981 NHPC Limited
Uttar Pradesh Rajya Vidyut
Utpadan Nigam
Gujarat State Electricity
Corporation Limited
North Eastern Electric Power
Corporation Limited
W
Gujarat State Energy
Generation
NSPCL Welspun Energy
NTPC Limited
Bhavini

















15

3. Prospects of Setting up a Thermal Power Plant

The current and future projected cost of new electricity generation capacity is a critical input into
the development of energy projections and analyses. The cost of new generating plants plays an
important role in determining the mix of capacity additions that will serve growing loads in the
future. New plant costs also help to determine how new capacity competes against existing
capacity, and the response of the electricity generators to the imposition of environmental
controls on conventional pollutants or any limitations on greenhouse gas emissions.
Planning of Power Plant involves decision on two basic parameters:
1. Total power output to be installed (e.g. 1000 MW)
Installed capacity is determined from:
Estimated Demand: - Before setting up a power plant, we need to critically
analyze demand which gives us the idea to determine capacity which needs to be
installed. The installation capacity should match the demand and hence estimation
of demand is the critical fact while setting up a power plant.
Growth of Demand anticipated: - While determining demand, future prospects
needs to be considered so that the return on capital would be maximized and future
demand could be met easily.
Reserve Capacity required:- Considering the various type of demand in a market
how much reserve capacity is required to be installed is determined and hence this
will help in determining installation capacity.

2. Size of generating units (e.g. 4 units of 250 MW each)
Size of the generating units will depend on:
Variation of Load (Load Curve):- During the different hour of the day and in
various seasons the demand varies, so the load curves. Now the number of units
has to be determined to run the operations optimally and meeting the requirement
daily.
Minimum start-up and shut down periods of the units
Maintenance programme planned

16

Above are few factors which one will look before setting up power plant. After taking decision
to setup a plant following are the important aspect which plays an important role in setting up
power plant.
3.1 LOCATION

Selecting a proper site for a thermal power plant is vital for its long term efficiency and a lot
many factors come into play when deciding where to install the plant. Of course it may not be
possible to get everything which is desirable at a single place but still the location should contain
an optimum mix of the requirements for the settings to be feasible for long term economic
justification of the plant.
As the name implies the power plant is meant for generating power which obviously means that
it will consume huge quantities of fuel. The exact quantity would depend on the size of the plant
and its capacity but it is a general fact that ample quantities of fuel must be available either in the
vicinity or it should be reasonably economical to transport the fuel till the power plant. Since
most thermal power plants use coal (they can use other fuels as well) it must be ensured that
sufficient coal is available round the clock. Just to give a rough idea a power plant with 1000
MW capacity approximately would require more than ten thousand tons of coal per day hence
the necessity for continuous supply and storage capability of coal in the power station.
In general, both the construction and operation of a power plant requires the existence of some
conditions such as water resources and stable soil type. Still there are other criteria that although
not required for the power plant, yet should be considered because they will be affected by either
the construction or operation of the plants such as population and protected areas. The following
list corers most of the factors that should be studied and considered in selection of proper sites
for power plant construction:
Transportation network: Easy and enough access to transportation network is required in both
power plant construction and operation periods.
Gas pipe network: Vicinity to the gas pipes reduces the required expenses.
Power transmission network: To transfer the generated electricity to the consumers, the plant
should be connected to electrical transmission system
Therefore the nearness to the electric network can play a roll.
Geology and soil type: The power plant should be built in an area with soil and rock layers that
could stand the weight and vibrations of the power plant.
17

Earthquake and geological faults: Even weak and small earthquakes can damage many parts of
a power plant intensively. Therefore the site should be away enough from the faults and previous
earthquake areas.
Topography: It is proved that high elevation has a negative effect on production efficiency of
gas turbines. In addition, changing of a sloping area into a flat site for the construction of the
power plant needs extra budget. Therefore, the parameters of elevation and slope should be
considered.
Rivers and floodways: obviously, the power plant should have a reasonable distance from
permanent and seasonal rivers and floodways.
Water resources: For the construction and operating of power plant different volumes of water
are required. This could be supplied from either rivers or underground water resources.
Therefore having enough water supplies in defined vicinity can be a factor in the selection of the
site.
Environmental resources: Operation of a power plant has important impacts on environment.
Therefore, priority will be given to the locations that are far enough from national parks, wildlife,
protected areas, etc.
Population centers: For the same reasons as above, the site should have an enough distance
from population centers.

3.2 WASTE MANAGEMENT
Energy requirements for the developing countries in particular are met from coal-based thermal
power plants. The disposal of the increasing amounts of solid waste from coal-fired thermal
power plants is becoming a serious concern to the environmentalists. Coal ash, 80% of which is
very fine in nature and is thus known as fly ash is collected by electrostatic precipitators in
stacks. In India, nearly 90 mt of fly ash is generated per annum at present and is largely
responsible for environmental pollution. In developed countries like Germany, 80% of the fly
ash generated is being utilized, whereas in India only 3% is being consumed. This article
attempts to highlight the management of fly ash to make use of this solid waste, in order to save
our environment.
COAL-based thermal power plants have been a major source of power generation in India,
where 75% of the total power obtained is from coal-based thermal power plants. The coal reserve
of India is about 200 billion tonnes (BT) and its annual production reaches 250 million tonnes
18

(mt) approximately. About 70% of this is used in the power sector. In India, unlike in most of the
developed countries, ash content in the coal used for power generation is 3040%. High ash coal
means more wear and tear of the plant and machinery, low thermal efficiency of the boiler,
slogging, choking and scaling of the furnace and most serious of them all, generation of a large
amount of fly ash. India ranks fourth in the world in the production of coal ash as by-product
waste after USSR, USA and China, in that order. Fly ash is defined in Cement and Concrete
Terminology (ACI Committee 116) as the finely divided residue resulting from the combustion
of ground or powdered coal, which is transported from the fire box through the boiler by flue
gases. Fly ash is fine glass powder, the particles of which are generally spherical in shape and
range in size from 0.5 to 100 gm. Fly ash is classified into two types according to the type of coal
used. Anthracite and bituminous coal produces fly ash classified as class F. Class C fly ash is
produced by burning lignite or sub-bituminous coal. Class C fly ash has self-cementing
properties.
3.3 Effluent and disposal
Disposal and management of fly ash is a major problem in coal-fired thermal power plants. Fly
ash emissions from a variety of coal combustion units show a wide range of composition. All
elements below atomic number 92 are present in coal ash. A 500 MW thermal power plant
releases 200 mt SO2, 70 t NO2 and 500 t fly ash approximately every day. Particulate matter
(PM) considered as a source of air pollution constitutes fly ash. The fine particles of fly ash reach
the pulmonary region of the lungs and remain there for long periods of time; they behave like
cumulative poisons. The submicron particles enter deeper into the lungs and are deposited on the
alveolar walls where the metals could be transferred to the blood plasma across the cell
membrane. The residual particles being silica (4073%) cause silicosis. All the heavy metals (Ni,
Cd, Sb, As, Cr, Pb, etc.) generally found in fly ash are toxic in nature.
Fly ash can be disposed-off in a dry or wet state. Studies show that wet disposal of this waste
does not protect the environment from migration of metal into the soil. Heavy metals cannot be
degraded biologically into harmless products like other organic waste. Studies also show that
coal ash satisfies the criteria for landfill disposal, according to the Environmental Agency of
Japan
2
. According to the hazardous waste management and handling rule of 1989, fly ash is
considered as non-hazardous. With the present practice of fly-ash disposal in ash ponds (gener-
ally in the form of slurry), the total land required for ash disposal would be about 82,200 ha by
the year 2020 at an estimated 0.6 ha per MW. Fly ash can be treated as a by-product rather than
waste.
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3.4 Water Balance and Water Conservation in Thermal Power Stations
In thermal power stations consumption of auxiliary power, specific coal consumption, specific
oil consumption and heat rate are generally monitored. Many at the power plants may not know
the specific water consumption, except in percentage terms DM water makeup. In the recent
past, the water cost has gone up by more than 70 times in many states. A typical super thermal
power station of 2100 MW pays around Rs. 10 crore towards water bill for the raw water alone,
excluding what is paid to the pollution control boards. There is lot of prudence in monitoring the
specific water consumption in terms of liter/kWh. The specific water consumption of coal based
power plants varies between 3.5 8 liters/kWh. BY systematic water audit, one can reduce water
consumption to the tune of 30-40 percent. Water conservation also leads to reduction of auxiliary
power consumption, since there is close nexus between water and energy.











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4. Clearance Required Setting up a Thermal Power Plant



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4.1 Some basic Problems for Thermal Power plant Planning.

1. Fuel quality & availability
a. Coal quality & availability constraints
2. Coal beneficiation
3. Power generation technology
4. Clean coal based technologies
5. Land accusation Problem
6. Logistic route Rail/ Road, pipelines, port etc (for fuel, water, ash etc)
7. Power evacuation route (Electricity Grid)
8. Water source.
9. Price of Fuel
a. Volatility of coal price.
10. Environmental clearance.
11. Benchmark
a. Resultant cost can at best be applied only as a prudence check rather than be used
to determine the tariff. Model should not replace the price discovery model based
on ICB tendering process
b. Emphasis now is being laid on tariff based competitive bidding; as such this
benchmark study may serve limited purpose.
c. Technological transfer price impact: Impact of advisory issued by CEA in
February 2010 regarding incorporation of the condition of setting up of phased
indigenous manufacturing facilities in the bids while sourcing supercritical units
would require accounting for increase in cost on such issues.
d. Sample Size for 600, 660 & 800 MW /Limited data availability for 600/660/800
MW/Extrapolation done to derive costs.

12. Civil Works
13. Indices used for calculation of Escalation do not match with indices used by largest
manufacturer (BHEL) and utility (NTPC).
14. Scaling down factors in case of Greenfield vs. Brownfield projects/Additional units 10 at
one location.
15. It is not clear whether the project specific Mega/non mega status have been factored in the
analysis of price. Electro Static Precipitator package considered is a part of Steam
Generator package or is excluded. Cost of transportation, insurance, statutory fees paid
towards Indian Boiler Regulations, IR etc is included or otherwise. 12 Benchmark data for
Turbine Generator and Boiler are based on Turbine Inlet parameter as 247 bar, 537/565
deg centigrade. However if any developer goes in for higher parameter e.g. 565/593 deg
centigrade suitable factor to be applied over benchmark cost.
22

16. 7 Providing options for dry fly ash disposal (100%), high Concentration Slurry System
100%). Suitable weightage for distance beyond 5 km, lower slabs of Calorific value, price
ceiling impact may be considered, Categorization of seismic zone, Type of chimney-
single flue/multi flue, consideration of auxiliary boiler etc.
17. Change in evacuation voltage level from 400KV to 765KV results in significant increase
in switchyard cost i.e. per bay cost almost trebles.


5. Environmental checklist for Thermal Power Plant

Before setting up a thermal power plant most critical job is EIA study. Environmental Impact
Assessment (EIA) is a process of identifying, predicting, evaluating and mitigating the
biophysical, social, and other relevant effects of development proposals prior to major decisions
being taken and commitments made.

The basic tenets of this EIA Notification could be summarized into following:
Pollution potential as the basis for prior environmental clearance instead of investment
criteria; and
Decentralization of clearing powers to the State/Union Territory (UT) level Authorities
for certain developmental activities to make the prior environmental clearance process
quicker, transparent and effective mechanism of clearance.

5.1Tools for assessment and analysis

Risk assessment
Life cycle assessment
Total cost assessment
Environmental audit/statement
Environmental benchmarking
Environmental indicators

Tools for action

Environmental policy
Market-based economic instruments
o Pollution charge
o Tradable permits
o Market barrier reductions
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o Government subsidy reduction

Innovative funding mechanism
EMS and ISO certification
Total environmental quality movement
Eco-labelling
Cleaner production
4-R concept
Eco-efficiency
Industrial eco-system or metabolism
Voluntary agreements


5.2 Guidelines of central electricity authority [CEA], government of India,
for site selection of coal-based thermal power stations
The choice of location is based on the following:
Nearness to coal source;
Accessibility by road and rail;
Availability of land, water and coal for the final installation capacity;
Coal transportation logistics;
Power evacuation facilities;
Availability of construction material, power and water;
Preliminary environmental feasibility including rehabilitation and resettlement requirements, if
any;

Land requirement for large capacity power plant is about 0.2 km2 per 100 MW for the main
power house only excluding land for water reservoir (required if any).
The land for housing is taken as 0.4 km2 per project.
Land requirement for ash pond is about 0.2 km2 per 100 MW considering 50% of ash
utilization. Land for ash pond is considered near the main plant area (say 5 to 10 km
away). In case of non-availability of low lying ash pond area at one place, the possibility
of having two areas in close proximity is considered.
Water requirement is about 40 cusecs per 1000 MW.
First priority is given to the sites those are free from forest, habitation and
irrigated/agricultural land. Second priority is given to those sites that are barren, i.e.,
wasteland, intermixed with any other land type, which amounts to 20% of the total land
identified for the purpose.
Location of thermal power station is avoided in the coal-bearing area.
Coal transportation is preferred by dedicated marry-go-round (MGR) rail system. The
availability of corridor for the MGR need to be addressed while selecting the sites.

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5.3 Guidelines for site selection of coal-based thermal power stations set by
the MoEF
Locations of thermal power stations are avoided within 25 km of the outer periphery of
the following:
Metropolitan cities;
National park and wildlife sanctuaries;
Ecologically sensitive areas like tropical forest, biosphere reserve, important lake and coastal
areas rich in coral formation;
The sites should be chosen in such a way that chimneys of the power plants does not fall
within the approach funnel of the runway of the nearest airport;
Those sites should be chosen which are at least 500 m away from the flood plain of river
system;
Location of the sites are avoided in the vicinity (say 10 km) of places of archaeological,
historical, cultural/religious/tourist importance and defense installations;
Forest or prime agriculture lands are avoided for setting up of thermal power houses or
ash disposal

6. EIA study report.

6.1 Project Cycle

The generic project cycle including that of Thermal Power Plant has six main stages:
1. Project concept
2. Pre-feasibility
3. Feasibility
4. Design and engineering
5. Implementation
6. Monitoring and evaluation

It is important to consider the environmental factors on an equal basis with technical and
economic factors throughout the project planning, assessment and implementation phases.
Environmental consideration should be introduced at the earliest in the project cycle and must be
an integral part of the project pre-feasibility and feasibility stage. If the environmental
considerations are given due respect in site selection process by the project proponent, the
subsequent stages of the environmental clearance process would get simplified and would also
facilitate easy compliance to the mitigation measures throughout the project life cycle.

A projects feasibility study should include a detailed assessment of significant impacts and the
EIA include a detailed prediction and quantification of impacts and delineation of Environmental
Management Plan (EMP). Findings of the EIA study should preferably be incorporated in the
project design stage so that the project is studied, the site alternatives are required and necessary
changes, if required, are incorporated in the project design stage. This practice will also help the
25

management in assessing the negative impacts and in designing cost-effective remedial
measures. In general, EIA enhances the project quality and improves the project planning
process.


6.2 Project Analysis

1) Executive summary of the project.
2) Justification for selecting the proposed unit size.
3) Land requirement for the project including its break up for various purposes, its availability
and optimization. Norms prescribed by CEA should be kept in view.
4) Details of proposed layout clearly demarcating various units within the plant.
5) Complete process flow diagram describing each of the unit processes and operations, along
with material and energy inputs & outputs (material and energy balance).
6) Details on requirement of raw materials, its source and storage at the plant.
7) Fuel analysis report (sulphur, ash content and mercury) including details of auxiliary fuel, if
any. Details like quantity, quality, storage etc.,
8) Quantity of fuel required its source and transportation, a confirmed fuel linkage/ copy of the
MoU.
9) Source of water and its availability. Proof regarding availability of requisite quantity of water
from the competent authority.
10) Details on water balance including quantity of effluent generated, recycled & reused. Efforts
to minimize effluent discharge and to maintain quality of receiving water body.
11) Details of effluent treatment plant, inlet and treated water quality with specific efficiency of
each treatment unit in reduction in respect of all concerned/regulated environmental parameters.
12) Location of intake and outfall points (with coordinates) based on modeling studies.
Details of modeling and the results obtained. It may be kept in view that the intake and outfall
points are away from the mangroves.
13) Examine the feasibility of zero discharge. In case of any proposed discharge, its quantity,
quality and point of discharge, users downstream, etc.
14) Explore the possibility of cooling towers installation. Details regarding the same.
15) Details regarding fly ash utilization as per new notification
16) Detailed plan of ash utilization / management.
17) Details of evacuation of ash.
18) Details regarding ash pond impermeability and whether it would be lined, if so details of the
lining etc.
19) Details of desalination plant and disposal of sludge.
20) Details of proposed source-specific pollution control schemes and equipment to meet the
national standards.
21) Details of the proposed methods of water conservation and recharging.
22) Management plan for solid/hazardous waste generation, storage, utilization and disposal.
23) Details regarding infrastructure facilities such as sanitation, fuel storage, restroom, etc. to the
workers during construction and operation phase.
26

24) In case of expansion of existing industries, remediation measures adopted to restore the
environmental quality if the groundwater, soil, crop, air, etc., are affected and a detailed
compliance to the prior environmental clearance/consent conditions.
25) Any litigation pending against the project and /or any direction /order passed by any Court of
Law related to the environmental pollution and impacts in the last two years, if so, details
thereof.
Description of the Environment
Anticipated Environmental Impacts and Mitigation Measures
Analysis of alternative resources and technologies
Environmental Monitoring Program
Additional Studies
Environmental Management Plan

























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7. CONCLUSION

Power projects are necessary not only for the economic development but for the growth of
infrastructure in any country. Starting a project from grass root level to the full-fledged
production stage requires lots of time and resources which require proper planning and optimal
utilization of resources. Besides all this tedious work, getting clearances to start the project and
fulfil the required resources are important concern for project owners. These requirement are
land, water, material, men, machinery, etc. and clearances which require lot of work to be
completed before execution of project.

After EA 2003, power sector has faced reforms and restructuring. Many new policies of
government are introduced due to which escalation in power production has been seen in recent
past. Policies give an opportunity for private player to enter and arrange their requirement by
themselves which helps in accelerating the projects. Other arrangements like SPV, in case of
UMPP, are nice option to get clearances and bidders get assured for certain requirement.

Special purpose vehicles (SPV), or shell companies, have been set up as wholly owned
subsidiaries of the Power Finance Corporation for each UMPP that will be built. SPV obtains
various clearances, water linkage, coal mine allocation (for domestic coal based projects) etc for
the project. The SPV also initiates action for land acquisition in the name of the SPV, selects the
developer through a tariff based competitive bidding process and finally transfers the SPV to the
identified developer along with the various clearances, tie ups, etc. The developer is then
responsible to build, own, and operate ("BOO" in economic parlance) these UMPP plants.

Hence, such arrangement as mentioned above are recommended creating confidence for bidders
and getting clearance from PFC owned company. This ensures financial arrangements to start
power plant and completion of project. It needs plenty of steps to travel the journey from here
and everyone is expecting the pace.


Certainly, India has to walk a mile before it takes a hold.








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8. REFERENCE
1. Indian infrastructure research, (August 2012). Energy reports. PowerLine magazine 11. Volume 16, N0.2.
2. Power trading, (August 2012). Discom financials. PowerLine magazine 11. Volume 16, N0.2.
3. Indian Electricity scenario. About the sector, retrieved on November 18, 2012,
fromhttp://www.powermin.nic.in/JSP_SERVLETS/internal.jsp
4. Training and Research. National training policy for power sector, retrieved on November 22, 2012,
fromhttp://www.powermin.nic.in/JSP_SERVLETS/internal.jsp
5. British Electricity International (1991). Modern Power Station Practice: incorporating modern power system
practice (3rd Edition (12 volume set) ed.). Pergamon. ISBN 0-08-040510-X.
6. Indian power sector review http://indianpowersector.com/home/power-station/thermal-power-plant/
7. Central Electricity Authority reports on December 2012 from
http://www.cea.nic.in/reports/proj_mon/broad_status.pdf
8. Central electricity Regulatory commission.(June 2012). Benchmark Capital Cost (Hard cost) for Thermal Power
Stations with Coal as Fuel. http://www.cercind.gov.in/2012/regulation/Benchmark_Capital_Cost_for_TPS.pdf
9. Planning Commission of India Reports Five year plans reports. http://planningcommission.nic.in/index.php
10. Ministry of Power Reports.. http://powermin.nic.in/