Project Report

On

“Power Generation &

Distribution Industries”
Submitted to
International Academy of Management,
Bangalore
Submitted By
Karan.S.Sahni
Under the Guidance of
Sir. B.Srinivasan

International Academy of Management

Bangalore
2008-2010
 CERTIFICATE
This is to certify that the Project entitled “Power
Generation Industries” submitted by “Mr. Karan
Sahni” is in partial fulfillment of the requirements for
the Award of the PGPM-0810 from International
Academy of Management & Entrepreneurship and is a
bonafide record of the work done by him/her/them at
International Academy of Management, Bangalore during
the academic year 2008-2010.

Place: Bangalore Project Guide

Date:

Sir. B.Srinivasan
 DECLARATION

To,
International Academy of Management,
Bangalore.

Respected Sir,
We the undersigned, hereby declare that the work
entitled “Power Generation Industries” developed and
submitted by me/us is my/our original work. The system
presented herein is developed by me/us independently and
has not been duplicated from any other source.

I/We understand that any such copying is liable to

be punished in any way the University deem fit.

Place: Bangalore
Date: Karan.S. Sahni
 ACKNOWLEDGEMENT

We wish to express my/our sincere thanks to the honorable

Dean.Sir.B.Srinivasan, International Academy of Management, Bangalore
for providing me/us varieties of opportunities, infrastructural facilities
and inspiration to gather professional knowledge and material without
which it would have been impossible to complete this hard task.

I/We take this opportunity to express our deep gratitude and

whole hearted thanks to my/our project guide Sir B.Srinivasan for
his/her guidance throughout this work. I/We am/are very much
thankful to him/her for his/her kindness, encouragement and the
valuable time, which he/she has devoted to me/us.

I/We wish to thanks all those, who have helped me/us

in my/our way or the others in bringing out this project
successful.

Karan.S. Sahni
Pow er Gen era ti on
&
Di st ri but ion

By-
Karan.s.sahni
PGPM-0810-07
EXPLORATION - History of discoveries and production
Major Strengths
• Customer base of over 3000 customers.
• Installed over 55,000 transformers of various capacities
• Dominant position in South based State Electricity Boards...
• First Indian manufacturer to export transformers in North America.
• Competitiveness: Capacity factors, operations, and Diverse workforce
• Implements GIS system to upgrade its operations(customer, asset,
environment, or competitor related data and geography now become the
integration framework for all its databases)
• Loyalty and trustworthiness
• Awarded ISO 9001: 2000 certifications for generation, transmission and
distribution of electricity.
• ISO - 14001 certification for environmental management
• Involvement of management at all levels with effective creation of
policies, vision, mission, values, goals and support, communicated and
implemented throughout the organisation.
Major Weaknesses
• Bering significant losses
• Limited operations only in metros
• Concentration of revenues on a single customer viz TNEB.
• Supply of transformers to State Electricity Board some of which
are in a weak financial position .
• Raw materials & Components used as well as transportation
system are a major limiting
• factor for smooth functioning.
• Group companies having negative networth. .
• High Inventory as compared to Industry norms.

Major Opportunities
• Setting up a world’s largest 3,300 MW gas-based power project at the
Dhirubhai Ambani Energy City at Dadri in Uttar Pradesh. The gas feedstock
for the project will be sourced from Reliance's Dhirubhai fields in KG - D6
basin off the Andhra Pradesh coast.]
• Various projects in generation, transmission, distribution and trading of
power.
•Lowest level of Per Capita power consumption in IndiaPlanning to set
up a dry transformer plant ranging between 100 KVA to
3000 KVA.To develop exports of Distribution & Power
transformers in Middle East countries.
• Over more than 700 wide varieties of transformer designs

Major Threats
• Outsourcing of key raw materials and Components
• Raw materials used are subject to heavy price volatility.
• Limited experience in designing and manufacturing 220 KV class
transformers and also has not entered into technical collaboration for
the same.
• Losses incurred by Promoter group companies during last three years.
Outsourcing of key raw materials and Components
• Raw materials used are subject to heavy price volatility.
• Limited experience in designing and manufacturing 220 KV class
transformers and also has not entered into technical collaboration for
the same.
• Losses incurred by Promoter group companies during last three years.
Outsourcing of key raw materials and Components
• Raw materials used are subject to heavy price volatility.
• Limited experience in designing and manufacturing 220 KV class
transformers and also has not entered into technical collaboration for
the same.
• Losses incurred by Promoter group companies during last three years.
• Lenders are not willing to carry out an appraisal of the Rs 11,000
crore project until
• extend loans of as much as Rs 9,900 crore.
• From the competitors and government controlled organizations
REGULATORY FRAMEWORK - Regulatory Authority

1. GEOTHERMAL ENERGY FOR POWER GENERATION

Geothermal energy is heat energy from deep inside the earth. Heat is brought near
the surface by thermal conduction, by intrusion into earth’s crust of molten magma
originating from the mantle and by circulation of groundwater to great depth.
 Geothermal Energy resources are classified into several basic types. Hydrothermal
energy, geopressured energy and magma energy all result from concentration of
the earth’s heat in discrete regions of the subsurface by geological processes. Hot
dry rock energy occurs at depths of 8 to 6 kms everywhere beneath the surface as a
result of the worldwide increase of temperature with depth in the earth. It also
occurs at shallow depths in areas of thermal enhancement due to geological
processes. Earth energy is thermal energy at normal temperature of the shallow
ground, without enhancement due to geological processes. It is found everywhere
and can be tapped by geothermal heat pumps.
Today only naturally occurring hot water & steam from hydrothermal sources is
being utilised for power generation economically. Exploitation of other types of
energy still requires technological advancements for techno-economic viability.
Currently over 7000MWe of electricity is generated in 20 countries in addition to
11300MWth of installed worldwide geothermal capacity for direct heating.
2. COAL BED METHANE - TECHNOLOGY STATUS
Methane and coal are formed together during coalification, a process in
which plant biomass is converted by biological and geological forces into
coal. Methane is stored in coal seams and the surrounding strata and
released during coal mining. Deeper coal seams contain much larger
amounts of methane than shallow seams. Small amounts of methane are
also released during the processing, transport, and storage of coal. Although
the volume of methane contribution to the total GHG emissions is three
times smaller than that of carbon dioxide, at the same time, methane is a
particularly strong GHG, its greenhouse potential is 21 times higher than
that of CO2. Over the last two centuries, methane concentrations in the
atmosphere have more than doubled, largely due to human-related
activities, including rice production, waste disposal, cattle ranching, large
scale extraction and transportation of oil and natural gas, and mining.

3. FUEL CELL TECHNOLOGY SCAN

Fuel cells are the most efficient and extremely clean systems for generation
from fossil fuels. Fuel cell is an electrochemical device that converts
chemical energy of a fuel directly into electrical energy. It has two
electrodes where electrochemical reactions occur in a reservoir of
electrolyte that allow ions to flow between the two electrodes producing
DC electricity. Fuel cells were initially used for power generation in
spacecrafts.
4. COAL GASIFICATION & IGCC
Coal gasification is a process that converts coal from a solid to a gaseous
fuel through partial oxidation. Once the fuel is in the gaseous state,
undesirable substances, such as sulfur compounds and coal ash, may be
 removed from the gas by established techniques. The net result is a clean,
transportable gaseous energy source.
In contrast to combustion process which works with excess air, gasification
process works on partial combustion of coal with the oxygen supply
controlled (generally 20 to 70% of the amount of O2 theoretically required
for complete combustion) such that both heat and a new gaseous fuel are
produced as the coal is consumed.
C + 1/2 O2 gasification CO
C + H2O gasification CO + H2
5. WIND POWER GENERATION TECHNOLOGY
Wind energy itself is not new - water and wind mills powered the world’s
first industries over 2000 years ago. Now, with new technology and new
materials, modern wind turbines are being used to generate the clean
electricity for all types of needs. Wind power generation is a proven
technology and its use is increasing. Already over 20,000 turbines are
producing electricity world-wide. Most are operating in ‘wind-farms’,
groups of wind turbines generating electricity on a significant scale. Single
wind turbines are also being used for generating electricity, charging
batteries and for driving pumps and producing heat. The generation costs
are comparable with or lesser than conventional sources of power
generation, which is the main thrust behind the increasing popularity of
wind power. Power is available from the kinetic energy of the mass of air
moving in wind. The amount of energy that wind carries increases by a
factor of two as its speed increases and is proportional to the mass of air
that passes through the plane of the area swept by the rotors. As power is
the product of energy (work) within a given time frame, the power of wind
increases by a factor of three as the speed of wind increases. Because of the
low density of air (Pair=1.25 kg / m3), the power density of wind is much
lower than that of water power (Pwater=1000 kg / m3), for instance. The
power that can be harvested from wind is calculated in terms of the swept
area -- for a horizontal axis wind turbine (HAWT), the area through which
the rotor blades pass.
6. Solar Energy
Solar energy provides an inexhaustible source of energy. The size of worlds solar
energy resources are enormous, and the amount that can be readily accessed with
existing technology significantly exceeds the world’s primary energy
consumption Solar energy, among various renewable energy sources,
provides an inexhaustible source of energy. The size of world’s solar energy
resources is truly enormous, and the amount that can be readily accessed
with existing technology greatly exceeds the world’s primary energy
consumption it has been predicted that the power plants based on solar
thermal technologies in 2020 are expected to produce from 60,000 to
90,000 MW electricity per year. Solar power plants, particularly, installed in
 regions of high insolation is a promising option for environmentally compatible
technology for electricity generation. At present, approximately 80% of the solar
generated electricity is provided by power plants based on solar thermal
technologies.
7. CIRCULATING FLUIDISED BED COMBUSTION
For fuels with high moisture content and low heating value such as biomass,
municipal wastes, paper & pulp industry wastes, sludge etc. and small capacities,
bubbling fluidised bed technology is recommended. The circulating fluidised bed
technology is considered suitable for waste fuels with a high percentage of non-
combustibles(heating value 5-35MJ/kg).
The Circulating Fluidised Bed Combustion technology is environmentally benign.
The process employs a Circulating fluidised bed combustor that operates at a
temperature of around 800-9000C. The fuel(crushed coal) along with the
sorbent(limestone) is fed to the lower furnace where it is kept suspended and
burnt in an upward flow of combustion air. The sorbent is fed to facilitate capture
of sulfur from the coal in the bed itself resulting in consequent low sulfur
emission. The combustion air is fed in two stages - Primary air direct through the
combustor and Secondary air, way up the combustor above the fuel feed point.
Due to high gas velocities the fuel ash and unburnt fuel are carried out of the
combustor with the flue gases. This is then collected by a recycling cyclone
separator and returned to lower furnace.
The heat transfer surfaces are usually embedded in the fluidised bed and steam
generated is passed through the conventional steam cycle operating on Rankine
Cycle. Alternatively, without the Fluid Bed Heat Exchanger, the heat transfer
surface may be distributed over the combustor and the convective pass.

8. PRESSURIZED FLUIDISED BED COMBUSTION

The Pressurized Fluidised Bed Combustion Systems employ a combination of Rankine
Cycle and Brayton Cycle with the objective of achieving high cycle efficiency and also
lower emissions. The technology is environmentally benign. The process employs a
pressurized fluidised boiler which operates at a temperature of around 860 0C, pressure of
around 16-18 bars and generates the flue gases at pressure. The fuel is fed along with the
sorbent and is maintained in fluidised condition in the pressurized combustion chamber.
The sorbent is fed to facilitate capture of sulfur from the coal in the bed itself resulting in
consequent low sulfur emission.
The pressurized flue gases are cleaned off all the suspended particulate by means of high
efficiency cyclones and are expanded into a gas turbine. This expansion of flue gases in
the gas turbine generates power. In addition, the excess air requirements of the boiler are
met by the gas turbine compressor. Since the gas turbine also supplies the excess air
requirements of the boiler, it sets the limitation on gas turbine output. The excess air
requirements are maintained at around 20% and thus the PFBC plant size is determined
by the gas turbine sizes available. This also produces a power split between power
generated by steam cycle and that generated by gas turbine which is of the order of 80:20.
 On the steam cycle side, the fluidised boiler, the heat transfer surfaces are embedded in
the fluidised bed and steam generated is passed through the conventional steam cycle
operating on Rankine Cycle. Thus a combination of Rankine Cycle & Brayton Cycle
results in higher cycle efficiencies which are projected to be higher than conventional
steam plants by 4-5%.

References
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 www.iocl.com
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