PSERC orders fuel audit of thermal plants in Punjab

09 October, 2012

A saving of Rs. 6000 to 8000 crore is likely to accrue to India if fuel audit of PSERC is implemented across the country. Fuel audit is a regular practice in western countries but in India PSERC is the first to conduct fuel audit as well order the audit of captive mine of PSPCL.

THE PUNJAB State Electricity Regulatory Commission (PSERC) has issued legal order to Punjab State Power Corporation Ltd. (PSPCL) to carry out fuel audit of its thermal plants and dedicated coal mines. In a major step, PSERC in its order of October 8 on suo-moto petition no. 42 has directed the PSPCL to implement the various recommendations made in the CPRI report for fuel savings and cost reduction.

Earlier in January this year PSERC had asked CPRI Bangalore to carry out study on the fuel consumptions of three thermal plants and suggest various means to improve the fuel consumption. The preliminary report was received in May and Commission, CPRI and PSPCL team headed by its CMD K D Chaudhry had detailed discussions on the report on July 20, 2012.

The final Fuel Audit report of CPRI was received by commission on August 14. The objections received from PSPCL on report and their reply by CPRI was discussed in the Commission’s meeting on September 26. The implementation of suggestions could bring generation cost by 10 paise per unit.

PSERC, in its order has asked PSPCL to take up matter with appropriate authorities i.e. Union Power Ministry & Coal India Limited regarding inclusion of surface moisture in computation of gross calorific value (GCV) of coal at the sending end and put efforts to make the payment for coal on ‘As Received’ basis at its thermal plants.

PSPCL should adopt a uniform method of coal testing & GCV measurement for receipted and bunkered coal by adding the effect of surface moisture and to bring down the drop in GCV between the receipted coal and bunkered coal within 150 kCal/kg.

To implement the fuel audit one time expenses of Rs. 8.58 crore are involved and the savings to accrue shall be RS.317 crore per annum.

In addition to above, PSPCL should conduct an independent third party validation of the washery energetics to map the yield and coal to get the audit of its captive mine at Pachhwara through a joint audit group of Fuel Research Institute Dhanbad and CAG.

M R Parihar, chief engineer Lehra Mohabatt thermal plant said that they are implementing the scheme for the last nine months and there have been considerable improvements in coal testing results. The coal testing procedure was followed by Bhatinda thermal plant and Ropar thermal plant as per directions of Director Generation. The streamlining of coal testing at three plants has led to monthly savings to PSPCL in range of 4 to 5 crore.

At Ropar thermal plant coal received now comprises of 20 % D grade, 70% E grade and the rest F grade. Before streamlining the plant reported receipt of 15 to 20 % C grade coal and 0 % F grade coal. The coal sampling at Ropar plant is being carried by non-technical persons for the last ten years and is in dire need of change.

PSERC has requested CERC to implement the fuel audit at NTPC thermal plants in the country. A saving of Rs. 6000 to 8000 crore is likely to accrue to India if fuel audit of PSERC is implemented across the country.