MoM of Phasing Plan for implementation of new Environmental Norms -12.01.2017 Page 1

SOUTHERN REGIONAL POWER COMMITTEE BENGALURU

Minutes of the Meeting on Phasing Plan for implementation of new

Environmental Norms

1.0 A Meeting on Phasing Plan for Implementation of new Environmental Norms

was held at SRPC, Bengaluru on 12.01.2017 with participation from CEA, KPCL,

TSGENCO, NTPC, NTECL, NLC, NTPL, IPPs, MPPs, SRLDC & SRPC. The list

of participants is given at Annexure-A.

2.0 Shri S R Bhat, Member Secretary, SRPC welcomed all the participants to the

meeting. He extended a special welcome to Shri B K Sharma, Chief

Engineer(TPE&CC), CEA. He stated that the following works had been assigned

to RPCs:

Phasing Plan for identified units for ESP upgradation

Phasing Plan for identified units for FGD installation

Confirmation from power utilities that all other units are also meeting the

revised norms and therefore, do not require any intervention

Within 1st week of February 2017, the Phasing Plan needs to be

communicated to CEA. Next high level meeting would be convened after

receiving the Phasing Plan from all the RPCs.

Plan for Installation of low NOx system in these coal based thermal units

during next over-hauling positively.

He also added that the incremental tariff for ESP upgradation and FGD

installation, indicated in minutes of 2nd meeting was computed presently at 62%

PLF and needs to be reworked at 50% PLF or lesser value as per average PLF

of the unit.

3.0 Shri B K Sharma, Chief Engineer (TPE&CC), CEA appraised the participants

about the interactions of MoP / CEA with MoEF. CEA had arranged meeting of

Power Utilities, Manufacturers and other stakeholders in this regard. Issues

concerning Power Sector stakeholders were taken up by MoP with MoEF in two

meetings held between them. For the existing units, though time extension and

NOx norm revision had been requested, no notification had been issued to this

MoM of Phasing Plan for implementation of new Environmental Norms -12.01.2017 Page 2

effect till date. Therefore as per statute, all the older units are to comply with the

revised norms by 07.12.2017. For new units, which are going to be

commissioned after 01.01.2017, more stringent norms have been notified, Time

extension to meet the revised norms had also been sought but there has been no

notification to this effect. To address various issues, a committee was

constituted headed by Chairperson, CEA by MoP in September 2016 to prepare

a phasing plan for implementation of new environment norms. Two meetings

were held on 21.10.2016 and 13.12.2016 and units were identified for ESP &

FGD upgradation and for NOx control. The Committee has been able to impress

upon MoP that by installing FGD (wherever space is available), the SPM level

could also be reduced apart from reducing SOx emissions. As such these units

will be considered for installation of FGD for controlling both SOx and SPM

emissions. Further units where adequate space for installing FGD is not

available and therefore these units can not comply with the new SOx emission

norms, it would not be prudent to incur additional expenditure for meeting

emission norms Partially for only SPM and NOx and as such phasing of ESP

upgrade and installation of de-NOx system for such units is deferred.

4.0 Copy of SRPC letter dated 26.12.2016 enclosing CEA letter dated 22.12.2016 is

enclosed at Annexure-B. Copy of MoEF&CC notification dated 07.12.2015 is at

Annexure-C. The following issues were deliberated during the meeting:

Most of the generators expressed concern on meeting NOx norms of 300

mg/Nm3 for the existing generators.

It was generally agreed that reduction of NOx emissions to the level of 600

mg/Nm3 and 450 mg/Nm3 for units commissioned before 31.12.2003 and after

31.12.2003 respectively could be feasible with best available technology.

It was informed that Eight units of NTPC had been identified under a Pilot

project for establishing efficacy of globally available SCR technology to

reduce NOx emissions with Indian coal. The results of this project would be

MoM of Phasing Plan for implementation of new Environmental Norms -12.01.2017 Page 3

known after two years and then MOEF&CC would be requested to reviews

the specified norms of 300 mg/Nm3 and 100 mg/Nm3.

MoP has been taking up the issue for time extension to meet the norms for

the existing units as well as for the units which are commissioned after

01.01.2017.

Low NOx system/ Low NOx burners are to be installed by thermal units

positively during next over hauling period. All generators confirmed that

modification would be taken up after August 2017 (keeping in view tendering

time etc) along with the coming next-overhaul.

On a query from generators about the sample and measurement of SOx and

NOx, CEA clarified that the flue gas sample is to be taken from stack and

results of SOx and NOx emissions are to be normalized at 6% O2 level (as an

international practice). If required, CEA would issue clarification in this

regard. CEA/MoP had been requesting MoEF to come out with a standard

testing procedure/guideline to remove such ambiguity.

Generators expressed that considering the new stringent emission norms, the

units meeting these norms need to be exempted from prevailing minimum

chimney height requirement of 275/220 mtrs. Extra cost to meet the norms

would only make power tariff dearer which would get passed to end

consumers. The chimney height norms need to be redefined keeping in view

revised environmental norms and industry practices internationally. Issues of

using the cooling tower for flue gas dispersal, chimney lining, gas to gas

heater etc were also discussed. CEA clarified that the MOP has already

taken up this issue with MOEF&CC and anticipating necessary chimney

height exemption.

Generators expressed concern that units coming up from January 2017 need

time line extension for retrofitting pollution control equipments for compliance

of new environment norms. These units had been planned and implemented

keeping in view earlier environment norms. CEA clarified that MOEF &CC

MoM of Phasing Plan for implementation of new Environmental Norms -12.01.2017 Page 4

has been requested to give reasonable time extension for new plants coming

up after 1.1.2017 onwards. However, no amendment is issued so far.

Generators stated that some new units which were planned to be

commissioned during 2016 had slipped to 2017 and could be given

exemption. CEA stated that relaxation of norms for such units would not be

feasible and revised norms as applicable would have to be met by the units

getting commissioned from January 2017.

Generators stated that with the wet FGD, the water consumption was likely to

go up by 0.2-0.3 m3/MWh and the revised norms of specific water

consumption of 2.5 m3/MWh could not be met. CEA stated that CEA/MoP

were aware of this issue and requested MOEF to revise specific water

consumption limit to 3.0 m3/MWh for new units. It was also noted that Coastal

plants using sea water would be exempted from this norm.

Generators stated that some older units had already recovered their capital

cost, while the newer units would be required to meet the norms which had an

additional impact of 30-50 paise/unit. Thus a level playing field needs to be

ensured by the government for all stake holders. Some sort of cess etc could

be thought off which could compensate some part of the additional expenses.

The units having PPA could approach the respective commission for tariff

capitalization but for merchant plants without PPA, the power would become

commercially non-competitive. If more than 120,000 MW of FGD was to be

installed, it could cost more than Rs.50-60 thousand crores and most of the

works would be taken up by firms outside the country (as most likely only

10% capacity is available with Indian companies). Meeting of the stake

holders needs to be called by MoP to address these concerns.

CEA stated that many of the units are on the verge of retirement or would be

phased out, as the investment for FGD, installation in such units is not

economically viable. Investment decision has to be taken considering the

balance useful life of the unit (preferably investment in units having age of

MoM of Phasing Plan for implementation of new Environmental Norms -12.01.2017 Page 5

more than 16-17 years may not be economically justified). FGD installation

for about 15-20,000 MW capacity/year could be feasible. It was informed by

CEA that despite regular follow up with MOP, no firm commitment of financial

assistance from NCEF or PSDF or any other fund has been made.

Some of the generators expressed that though their units were old (more than

16 years) but were performing well and hence they need not be phased out.

It was clarified that there was no compulsion on phasing out but the new

norms were to be complied based on the vintage of the unit.

On queries of availability of Lime stone for FGD operation, CEA informed that

information regarding state-wise availability of lime stone is sought from

Ministry of Mines and same will be shared with Generators on receipt.

Regarding disposal of Gypsum produced by FGD operation, CEA informed

that MOEF had been requested to issue Guidelines for utilization of Gypsum

and notify the mandatory use of gypsum produced by power sector by cement

industries.

Some of the generators stated that the generators complying with the

environment norms need to be given preference in Merit Order Dispatch

(MOD).

SEL vide letter dated 07.01.2017 (Annexure-D) had informed that their units

were meeting the norms. MEPL vide their mail dated 12.01.2017 had

informed their units were meeting the revised norms (Annexure-E).

It was noted that NLC TS-II Exp units (2x250 MW) were meeting the SOx

norms but were not meeting the SPM norms. These units had not figured in

FGD installation list. They need to take up ESP up-gradation Phasing Plan.

5.0 After deliberation, the Phasing Plan for FGD installation was firmed up. Since

APGENCO, TANGEDCO, HNPCL had not participated, it was suggested to

collect the information of Phasing Plan and submit to CEA by 1st week of

February 2017. CE, CEA requested all the generators to take up the activities

MoM of Phasing Plan for implementation of new Environmental Norms -12.01.2017 Page 6

earnestly. Norms relaxation (except for NOx was unlikely) however, relaxation

on time was being sought.

6.0 MS, SRPC thanked all the participants for their active participation. He stated

that the firmed up Phasing Plan would be communicated for comments and

subsequently the same would be communicated to CEA.

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