Home > News > News Details
News

BEFORE THE MAHARASHTRA ELECTRICITY REGULATORY COMMISSION,

 Form II


BEFORE THE MAHARASHTRA ELECTRICITY REGULATORY COMMISSION, MUMBAI 
Case No.87 of 2015
 
IN THE MATTER OF
Petition under Section 62 (1) (a) and 86(1) (e) of the ‘Electricity Act 2003’ for determination of tariff for sale of electricity generated from 1.8 MW capacity Municipal Solid Waste (MSW) based power projectto becommissioned at Kolhapurto the Distribution Licensees in Maharashtra.
 
AND
 
IN THE MATTER OF THE APPLICANT
 
Kolhapur Green Energy Pvt. Ltd
 
6th Floor, MET Educational Complex, C- Wing
A.K. Vaidya Marg, Bandra Reclamation
Bandra (West), Mumbai – 400 050
Through its Director Shri Ashok N Mahindrakar
 
Versus 
 
1. Maharashtra State Electricity Distribution Company Ltd 
Plot No G-9, Prakashgad, Prof Anant Kanekar Marg
Bandra (E),Mumbai 400 051
 
2. Tata Power Company Limited ( Distribution)
Corporate Centre, ‘B’ 34,SantTukaramRoad, Carnac Bunder, 
Mumbai 400 009
 
3. Reliance Infrastructure Limited (Distribution)
Reliance Energy Centre,Santacruz (East), Mumbai 400 055
 
4. The B.E.S.& T undertaking
BEST Bhavan, BEST Marg.
Fort, Mumbai 400 001          
 
5. Kolhapur Municipal Corporation 
Main Building, ShivajiChowk
Kolhapur, Maharashtra – 416002
 ------------------------------- Respondent
 
 
 
 
Form III
 
BEFORE THE MAHARASHTRA ELECTRICITY REGULATORY COMMISSION, MUMBAI
 
Filing No. 2 (TWO)
                                                          Case No. 87 of 2015
IN THE MATTER OF:
Petition under Section 62 (1) (a) and 86(1) (e) of the ‘Electricity Act 2003’ for determination of tariff for sale of electricity generated  from 1.8 MW capacity Municipal Solid Waste (MSW) based power project to be commissioned at Kolhapur  to the Distribution Licensees in Maharashtra.   
 
AND 
Kolhapur Green Energy Pvt. Ltd
6th Floor, MET Educational Complex, C- Wing
A.K. Vaidya Marg, Bandra Reclamation
Bandra (West), Mumbai – 400 050
Through its Director Shri Ashok N Mahindrakar
 
Versus 
1. Maharashtra State Electricity Distribution Company Ltd 
Plot No G-9, Prakashgad, Prof Anant Kanekar Marg
Bandra (E),Mumbai 400 051
2. Tata Power Company Limited (Distribution)
Corporate Centre, ‘B’ 34, SantTukaram Road, Carnac Bunder, 
Mumbai 400 009
3. Reliance Infrastructure Limited (Distribution)
Reliance Energy Centre, Santacruz (East), Mumbai 400 055
4. The B.E.S.& T Undertaking
BEST Bhavan, BEST Marg.
FORT, Mumbai 400 001
5. Kolhapur Municipal Corporation 
Main Building, ShivajiChowk
Kolhapur, Maharashtra - 416002
 
------------------------------- Respondent
 
I Ashok N Mahindrakarson of ShriNarsingraoMahindrakaraged 65 years, having my office at6th Floor, MET Educational Complex, C- Wing, A.K. Vaidya Marg, Bandra Reclamation, Bandra (West), Mumbai do solemnly affirm and say as follows:
I am Authorized SignatoryofKolhapur Green Energy Pvt.Ltd, the applicant in the above matter and I am duly authorized by the said applicant to make this affidavit.
1. The statements made in the paragraphs A to E on page number 1 to40in the petition are true to my knowledge and belief and statement made in paragraphs (A) to (D) are based on information and I believe them to be true.
2. I say that there are no proceedings pending in any court of law/tribunal or arbitrator or any other authority, wherein the Petitioners are a party and where issues arising and / or reliefs sought are identical or similar to the issues arising in the matter pending before the Commission.
 
I solemnly affirm at Mumbai,on this ----------- day ofMarch 2016that the contents of the above affidavit are true to my knowledge, no part of it is false and nothing material has been concealed there from.
 
 
Identified before me. Ashok Mahindrakar
        (Authorized Signatory)
Mumbai
 
Sr. No. Particulars Page No.
A Summary 3
B Fact of the Case 5
(a) Brief Description of the Case 5
(b) Salient features of the Concession Agreement executed between the KMC and the Petitioner 6
(c ) Description of the proposed MSW project to be set up at Kolhapur, Maharashtra 8
(d) Waste Processing Technology selection 9
(e) Waste to Energy Process and Technology Description 14
(f) Computation of Power Potential and Plant Load Factor 26
C Justification for the Submission 27
(a) Statutory provisions under which the petition is being filed before the Commission 27
(b) Reason why the Commission has jurisdiction to try, entertain and dispose of the petition 28
(c ) Justification for the proposed technology, capital cost and Tariff 30
D Cost of generation and proposed tariff 32
(a) Cost Break Up for proposed 1.8 MW WTE Power Project at Kolhapur 32
(b) Summary of Quotations of Plant & Machinery 33
(c ) Basis for selecting Tariff parameters 33
(d) The performance/operating and financial components considered for computation of tariff for electricity generated from MSW power plant 34
E Prayer 40
List of Enclosures 40
Table of Content
 
 
 
 
 
List of Abbreviations
 
Abbreviation Meaning
CERC Central Electricity Regulatory Commission
SERC State Electricity Regulatory Commission
CEA Central Electricity Authority
APTEL Appellate Tribunal for Electricity
MERC Maharashtra Electricity Regulatory Commission
MEDA Maharashtra Energy Development Agency
MSEDCL Maharashtra State Electricity Distribution Company Limited
MSETCL Maharashtra State Electricity Transmission Company Limited
MSPGCL Maharashtra State Power Generation Company Limited
R Infra- D Reliance Infra- Distribution
Tata Power- D Tata Power- Distribution
MOEF Ministry of Environment and Forest
MNRE Ministry of New and Renewable Energy
kW Kilo Watt
kWh Kilo Watt Hour
kVA Kilo Volt Ampere
MU Million Unit
Rs / INR Indian Rupees
Cr Coroe
EA Electricity Act
KGEPL Kolhapur Green Energy Pvt. Ltd
O&M Operation & Maintenance
SHIIPL Sunil Hi Tech India Infra Pvt. Ltd
SPV Special Purpose Vehicle
TPD Tonne per Day
RSSPL Rochem Separation System Pvt. Ltd
MSW Municipal Solid Waste
WTE Waste to Energy
KMC Kolhapur Municipal Corporation
RfP Request for Proposal
CoD Commercial date of Operation
 
The Petitioner, M/s Kolhapur Green Energy Pvt. Ltd. (KGEPL) most respectfully submits as under:
 
A. Summary 
 
1. Section 62(1) of the Electricity Act 2003 mandates the State Electricity Regulatory Commission to determine the tariff for supply of electricity by a generating company (including Renewable Energy) to the distribution licensee, transmission of electricity, wheeling of electricity and retail sale of electricity in accordance with the provision of the Act. The Act also specify that while determining the tariff the Commission shall  be guidedby the terms and conditions for tariff determination framed under Section 61(h) of the Electricity Act.
2. Clause 8.1 of MERC (terms and conditions for determination of tariff from renewable sources of energy) Regulations2015specifies ‘Project specific tariff’, on case to case basis for MSW power projects. Clause 8.2 of above regulations states that the financial norms as specified for other RE technology in this Regulation, except for capital cost and O&M cost shall be ceiling norms while determining the project specific tariff. 
3. The petitioner, Kolhapur Green Energy Pvt. Ltd (KGEPL) (“Petitioner”) a Special Purpose Vehicle (SPV) promoted by Sunil Hi Tech Engineers Ltd (SHEL) and its subsidiary Sunil Hi Tech India Infra Pvt. Ltd (SHIIPL).  KGEPL has its registered office at 6th Floor, MET Educational Complex, C- Wing, A.K. VaidyaMarg, Bandra Reclamation, Bandra (West), Mumbai – 400 050.
4. KGEPL is promoted by Sunil Hi Tech Engineers Ltd having more than 20 years experience in Infrastructure projects. 
5. Considering the growing need for waste management, the KolhapurMunicipal Corporation (KMC) with an intension to develop project facility for treatment and disposal of the waste had invited proposals from the private sector after floating the request for proposal (RfP) in 2013. TheKMC proposes to deliver 180TPD ofMunicipal Solid Waste at the project site to the developer.
6. Rochem Separation System Pvt. Ltd (RSSPL) has been selected as successful bidder after conducting transparent bidding process. Kolhapur Municipal Corporation (KMC) has issued the letter of award to M/s RSSIPLvideletter no Health Dept. / W.S. No. 1/ 211/ 2013 dated 17/09/2013.
Sunil Hi Tech Engineers Ltd (SHEL) and its subsidiary Sunil Hi Tech India Infra Pvt. Ltd (SHIIPL) entered into share purchase agreement with Rochem on 20 February 2014 and subsequently,KGEPL, a SPV is formed for execution of 180 TPD capacity MSW to energy project at Kolhapur.  
7. In line with regulatory provisionstated under(1&2 above),the petitioner M/s Kolhapur Green Energy Pvt. Ltd (KGEPL), a Special Purpose Vehicle (SPV) formed for implementation of the said MSW project has filed this petition before Hon. Commission. In the prayer the petitioner requested the Hon. Commission to determinethe tariff for sale of electricity from petitioner’s 1.8 MW MSW power projectto be commissioned at Kolhapurto the distribution licensees in Maharashtra. 
8. The petitioner has proposed to use the mass combustion technologyfor processing of MSW. The technology provider AV & UE Pvt. Ltd is developing similar 12 MW projectin Hyderabad. Mass combustion based waste-to-energy is a dominant waste processing and disposal technology adopted globally- leading itself immense merit and credibility. There areseveral such waste to energy plants operating globally. This technology provides the cleanest and most efficient platform for managing waste disposal and for generating green energy. The mass-combustion technology has following advantages over  other available waste-to-energy technologies : 
i)  requires less land area, 
ii) Produces more power with less waste and 
iii)Causes maximum volume reduction of the waste.
9. As per the terms and conditions under the concession agreement between the KGEPL&KMC, the KMC has allotted a plot measuring 4 Hectare at Kasaba-Bavda Village in Kolhapur, Maharashtrafor setting up the MSW project. The petitioner has provided an irrevocable, revolving and unconditional bank guarantee of Rs. 150.00Lacs to KMC dt. 29.01.2014 having expiry date of 01.06.2015as performance guaranteetoKMC.
10. In view of the environmental and social benefits of the MSW power projects and the fact that with disposal of the waste such plants simultaneously produce renewable energy, it is requested that the Hon Commission shall encourage setting up of MSW power projects in the State. 
11. The present petition is filed by the petitioner for award of feed-in- tariff for sale of electricity generated from1.8 MW capacity power project to be commissioned at Kolhapurto the distribution licensees in Maharashtra. 
12. Hon. Commission is requested to admit the petition and award the appropriate tariff in line with provisions stated under MERC (terms and conditions for determination of tariff from renewable sources of energy) Regulations2015.
 
B. Facts of the case 
 
a) Brief description of thecase 
1. KolhapurMunicipal Corporation (KMC) as civic body is responsible for the collection, transportation and disposal of municipal solid waste (MSW) generated in the city of Kolhapur  as per the procedure laid down under MSW (Management and Handling) Rules 2000 framed by the Ministry  of Environment and Forest (MoEF). 
2. The KMC with an intension to develop project facility for treatment and disposal of the waste, invited proposals from the private sector after floating the Request for Proposal (RFP) throughTender Notice No. 27 dated 04/06/2013 for Establishment of Processing Plant for Conversion of MSW to useful product (Power) at KasabaBavda, Village in Kolhapur on Design, Build Finance, Operate and Transfer (DBFOT) basis. 
3. M/s Rochem Separation System (India) Pvt. Ltd.,Mumbai (RSSIPL) was selected for development of MSW Project facility at Kolhapuron Design Built Finance Operate and Transfer (DBFOT) basis after following the transparent competitive bidding process by KMC. Kolhapur Municipal Corporation (KMC) has issued the letter of award to M/s RSSIPLvide  letter no Health Dept. / W.S. No. 1/ 211/ 2013 dated 17/09/2013 (Annexure I submitted with the original petition)on the basis of bid documents submitted by RSSIPL on dated 20/06/2013.
4. Subsequently, Kolhapur Green Energy Pvt. Ltd (“Petitioner”) a Special Purpose Vehicle (SPV) promoted by SunilHi Tech Engineers Ltd (SHEL) and its subsidiary Sunil Hi Tech India Infra Pvt. Ltd (SHIIPL).  KGEPL has its registered office at 602, Trade Centre, BandraKurla Complex, Bandra East, Mumbai - 400051, Maharashtra. SHIIPL has entered into a Share Holder’s Agreement with RochemSeparations Systems (India)Pvt. Ltd(RSSIPL)(Annexure II submitted with the original petition).By virtue of this Agreement SHIIPL have majority shares with voting & economic rights, as per the agreement the shareholding ratio of SHIIPL and RSSIPL comes to 88:12 respectively.  KGEPL was formed to establish Processing plant with a capacity of 180 TPD for conversion of MSW into useful product (Power) & Bottom Ash as the byproduct. 
5. A Concession Agreement in this regard was signed betweenpetitionerand KMC on 7th February 2014. 
6. As per this agreement the Concessionaire is responsible to design, built, finance, operate and transfer the waste management project at the end of concession period. The concession periodis 30 years from the date of commencement of the plant. A copy of the concessionagreement is enclosed with the petition as (AnnexureIII submitted with the original petition).
7. As per the concession agreement,KMC agreed to deliver the assured waste quantity of 180 TPD at project site for processing. KMC further agreed to pay the tipping fee of Rs 308 per metric tonne of MSW, which will remain constant till the end of concession period. 
b) Salient features of the ConcessionAgreement executed between the KMCand the Petitioner 
1. The project is allotted on Design, Build Finance, Operate and Transferbasis for  construction and operation of MSW processing facility for 180 TPD MSW to the petitioner for a period of 30 years from the appointed date (clause 2.1 a).
2. MSW treatment facility selected for the project would scientificallyprocesses the MSW, have maximum waste recycling and recoverypotential,and shallcreate public awareness.The concessionaire /petitioner shall ensure that no more than 20% of the MSW received at processing facility should be sent to Landfill (clause 2.3). 
3. The concessionaire /petitioner should perform and fulfill all the obligations including the  design, engineering , finance, procure, construct, install, commission, operate, and maintain each of the project facilities either itself or through such person as may be selected by it. Concessionaire /Petitioner should transfer the project facility at the end of concession period to KMC (clause 3.1.2).
4. Concessionaire /Petitioner can process MSW as per provision of the agreement ,  market and sell or dispose all the components/ products of MSW including but not limited to electricity, methane, RDF, compost and retain and appropriate any revenues generated from the sale of such products / end products (clause 3.1.2. g and h of the agreement).
5. Concessionaire /Petitioner receive all financial benefits accruing in respect of or on account of the Project in including CERs under CDM (clause 3.1.2.k). 
6. Tipping fee payment will be made by KMC to concessionaire /petitioner as per the measurement at the weighbridge at the processing facility (clause 5.6). 
7. KMC shall collect the inert material generated out of the processing facilities and arrange for the disposal (clause 6.1.2.d). KMC shall handover land as per requirement upon signing of the land lease agreement (clause 6.1.2.g).
8. The performance security (Rs 150 lakhs) in the form of performance bank guarantee has to be furnished by the concessionaire /petitioner(clause 9.1.1). The security shall remain in force and effect for a period of 120 days from commercial date of operation (CoD) (clause 9.3). 
9. The concessionaire /petitioner shall pay a lease payment at the rate of Rs 1 (one) per square meter per annum for the land leased by KMC during the concession period (clause 10.1). 
10. KMC agrees and undertakes to pay tipping fee to the petitioner (clause 17.1.1). The monthly tipping fee will be calculated as per monthly average quantity of MSW supplied by KMC at the weighbridge. However, if average MSW quantities receiveis less than minimum MSW quantity specified, then the tipping fee will be calculated as per minimum MSW quantity committed by KMC. The tipping fee will remain constant at Rs 308 / Tonne throughout the concession period (schedule 21). 
11. The MSW processing facility should be designed to have a minimum processing capacity of 180 tonnes of MSW per day. 
 
Table 1: Daily minimum waste quantities
Sr. No. Financial Year Ending March 31st Daily minimum waste quantity (TPD)
1 2015 140
2 2016 140
3 2017 140
4 2018 150
5 2019 150
6 2020 150
7 2021 150
8 2022 150
9 2023 160
10 2024 160
11 2025 160
12 2026 160
13 2027 170
14 2028 170
15 2029 to End of Concession Period 180
 
12. The concessionaire /petitioner shall have the right to refuse acceptance of MSW quantity in excess of the quantity as specified.  Provided that the MSW quantity considered would be the thirty days trailing average of received MSW quantity. The right of the concessionaire /petitioner to refuse excess waste will cease as soon as the 30 days trailing average of received MSW quantity is less than or equal to the specified MSW quantity (clause 18.2.1). 
13. Force majeure related issues are given in clause 26. Clause 27 discusses the compensation for the breach of agreement. Events of default and termination for both the parties of agreement are clearly defined in clause 29 of the Concession Agreement.
c) Description of the proposed MSW project to be set up atKolhapur, Maharashtra
 
1. To address the issues of MSW in India, in exercise of the powers conferred by section 3,6 and 25 of the Environment (Protection) Act,1986 (29 of 1986), the Central Government, Ministry of Environment and Forest made rules to regulate the management and handing of the MSW, namely MSW (management and handling ) Rules 2000.  Under Schedule II, Section 5 “Processing of Municipal Solid Waste” following is stated.   
“Municipal Authorities shall adopt suitable technology or combination of such technologies to make use of waste so as to minimize burden on landfill. Following criteria should be adopted namely, 
 
ii) Mixed waste containing recoverable resources shall follow the route of recycling. Incineration with or without energy recovery including pelletisation can also be used for processing waste in specific cases.
2. Accordingly, in line with the provisions of the MSW Rules 2000, the petitioner is developing the project based on mass combustion technology for processing and disposal of the waste with energy recovery. 
3. As per the concession agreement executed between the KGEPLandKMC, KGEPL is responsiblefor the development of wasteprocessing facilityas per the terms and conditions specified under the concession agreement.
4. The KMC will supply total180TPD of MSW to KGEPL to process at the MSW process facility to be set up at Kolhapur. Detailed Techno-Economic Viability Report (TEV report) of the project is enclosed along with the petition (Annexure IV submitted with the original petition).
5. The proposed MSW project involvesimplementation of amass combustiontechnology for waste to energy conversion.  The project activity will process approximately180 TPD of municipal solid waste and produce renewable power.
d) Waste Processing Technology selection 
1. The petitioner’s choice to select combustion / incineration technology for the proposed WTE project is governed by careful study of the merits and demerits of all Waste processing technological options as well as analysis of the composition of waste from the Kolhapur city and local conditions. The petitioner prior to signing the Concession Agreement with KMC, undertook, inter-alia the following activities as part of due diligence to select the appropriate technology to sustainably process and dispose waste, overcome the technical, environmental and social challenges of MSW. 
2. Keeping in perspective the waste characteristics in Kolhapur, advantages and disadvantages of waste processing technologies, ground reality of waste processing and disposal in the city, maturity of technology, the petitioner has selected mass-combustion technology for the proposed MSW project at Kolhapur.  
3. Municipal Solid Waste has to be managed by technology and methods that enable keeping our cities clean, prevent pollution & protect environment. As per CPCB report of 2012-13 municipal areas generates approx 1, 33,760 Tons of Waste per day out of which 91,152 TPD is collected and 25,884 TPD is treated with some technology. The MSW therefore dumped in low lying urban areas consumes approx 2, 12,752 cubic meter space every day & 776 ha of precious land per year.
4. While selecting the technology options to treat all components of waste, factors that have been considered include quantity & composition of MSW, collection, segregation & transportation capabilities of the Kolhapur Municipal Corporation, conversion technology, estimation of energy, compost generation, capital & operational costs, financing options including  levy of tipping fees and user charges. 
5. Learning from the past experience is essential to identify suitable technology for processing of Municipal Solid Waste. There are several technologies currently being advocated for processing of MSW. These technologies can be classified into two broad categories namely : 
Bio – Chemical conversion of biodegradable MSW.
Thermal processing of MSW.
6. Group one covers technologies such as composting &biomethanation, whereas Group two includes technologies like gasification, pyrolysis, incineration & mass burning, Refuse Derived Fuel can also be prepared from combustible MSW.
7. In Indian context the following technologies are indentified for processing of MSW –
Biomethanation for wet biodegradable wastes.
Conventional microbial windrow/mechanized/vermin composting for wet biodegradable wastes.
Refuse derive Fuel from dry high calorific value combustible wastes.
Incineration of dry high calorific value combustible wastes.
 
 
Biomethanation Technology
8. Biomethanation is an anaerobic digestion of organic materials which is converted into biogas. It is a biological treatment method that can be used to recover both nutrients & energy contained in biodegradable municipal solid waste. This technology can be conveniently employed for biodegradation of segregated organic wet wastes such as waste from kitchens, canteens, institutions, hotels & slaughter houses & vegetable markets. This technology is most suitable for small towns and where proper segregation of MSW is done to segregate biodegradable & degradable factions.
9. The disadvantages of this technology is as follows –
Segregated waste is required for adoption of biomethanation technology 
Land Requirement is more.
Very Low Volume Reduction of waste i.e. 30%-40%.
Degree of Pollution is high.
Degree of Water pollution is high.
Process Water requirement is high.
Recovery of Energy is low.
 
Pyrolysis Technology
10. Pyrolysis uses heat to break down combustible polymeric materials in the absence of oxygen, producing a mixture of combustible gases, liquids & solid residues. The products of pyrolysis process are – (i) a gas mixture; (ii) a liquid (bio-oil/tar); (iii) a solid residue (carbon black). The proportion & composition of various fractions depends on a variety of parameters. 
11. Following are the shortcoming of Pyrolysis Technology -  
Requires dry waste.
O&M cost is high.
Huge land requirement for storage of fuel.
High project cost as pre treatmentequipments of MSW is mandatory.
High O&M cost.
More fuel requirement in rainy season.
High inert content in Indian MSW.
Percentage of rejects to landfill is high.
 
Composting Technology
12. Composting is a process of decomposition of biodegradable fraction of MSW under aerobic conditions. This technology is used to handle large quantities of biodegradable wastes using windrow method. The waste is stacked in heap for a couple of weeks or buried in a pit to decay for 3 to 6 Months to mechanized processing. Vermi composting technology is based on use of earthworms after initial pre processing of waste under a shed. Here the earthworms eat the organic fraction of waste & excrete – the excrete is collected as vermin cating, sieved & utilized as bio organic fertilizer. This technology is most suitable for very small towns & villages.
13. The shortcomings of this technology are as follows –
Non operational in monsoon season.
Large space requirement.
Threat to public health in proximity.
Water pollution is more.
Requirement of Water treatment plant.
Degree of pollution is high.
Rejects to landfill is high thus decreasing the life of landfill.
Very low reduction of volume of wastes i.e. 15%- 30%. 
 
Incineration Technology
14. Incineration is the oxidation of the combustible materials contained in the MSW. Incineration is used a treatment for a very wide range of wastes. This process can reduce the waste volume up to 90% and the capital cost of this process is lower than other MSW treatment technologies. This will work out best in a centralized system.
15. Incineration technology is complete combustion of waste with the recovery of heat to produce steam that in turn produces power through steam turbines. Complete combustion optimally involves a two stage transformation of fuel, in this case solid waste into CO2 & water vapor. The secondary phase of incineration takes place as the combustible materials (e.g. paper, plastics, organic materials containing carbon, hydrogen & oxygen) combine with oxygen to form carbon dioxide & water vapor.
16. In mass burn plants the grate system moves the solid waste through the drying, burning & burnout zones while promoting combustion. This is done by ensuring that adequate quantities of air enter from below via holes in the grates.In this process the entire MSW will be converted into energy with higher efficiency as compared the other technologies. 
17. Appropriate Technology means any technology which is acceptable, affordable & manageable. There are two angles to technology evaluation. One what the customer or the consumer expects from a technology and the other is how the manufacturer designs the technology to meet customer expectations.As this technology is more financially viable than any other technology, hence the petitioner has selected the same to be adopted for Kolhapur project.
 
Please refer to the table below for comparison of different process technologies
 
Sl No Associated Factors Composting Biomethanation Incineration Gasification SLF
1 Air Pollution
a Extent Low Low Medium Medium High
b Requirement of Air Pollution Control - - Yes Yes -
c Dixons/Furans - - Possibility Exists : but minimized due to removal of plastics from waste by rag pickers - -
d Release of Green House Gases Uncontrolled Controlled & Utilized Controlled & Utilized Controlled & Utilized Mostly Uncontrolled
2 Water Pollution
a Exists Yes Yes Yes Yes Yes
b Requirement of Waste Water Treatment Yes Yes Yes Yes Yes
C Quality of treated water May be discharged into water bodies May be discharged into water bodies Used in the process Used in the process Discharged into water bodies
d Degree of pollution High Medium Low Medium High
3 Solid Waste generation due to rejects/sludge formation in the process High Low Low Low Low
4 Volume reduction of waste 15-30% 45-50% 80-90% 65-75% 70-80%
 
18. The petitioners choice for  go with the mass combustion / incineration technology for the Kolhapur MSW project is governed  by  quantity & composition /quality of waste generated in the city , population as well as  cost of setting up of processing plants along with the expected quantities of value added products & by products that can be obtained during process.   
 
e) Waste to Energy Process and Technology Description 
The technology supplier, AV & UE Pvt. Ltd., an IBR approved company is an innovative technology driven Company involved in manufacturing  MSW based boilers, AFBC, CFBC, IGCC Gasifiers, Sulphuric Acid WHRS, Sponge Iron WHRS, Package Boilers, Pressure Vessels, Heat Exchangers along with auxiliaries & support equipments& BOP.AVUE is executing 12 MW waste to energy facility at Hyderabad, Telangana and is scheduled to be commissioned in March 2015.The facility will be consuming 1000 tons of MSW on daily basis and has a storage capacity of 5000 tons. AV&UE’s boiler is developed on the existing reverse push reciprocation grate technology which is capable of combusting the MSW thoroughly without segregation even with 45% moisture content in the MSW. The MSW could be more fully burned by Single Segment Reverse Push Stoker system so as to decrease the heat reduction rate of ash slag.Currently, AV&UE provide services to major players like Larsen &Tubro, GMR, Babcock Borsing Services, Gujarat State Fertiliser & Chemicals Ltd., Mono Steel, Aditya Birla, SAIL, AML Steel Ltd. & many more.
REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY
The Single Segment Reverse Push Stoker System shall be capable of combusting municipal waste containing moisture around 40%.
 The reciprocating stoker system will consists of a refuse feeder, a reverse acting stoker with adjustable device of refuse layer, a combustion control system and an ash discharge system.
 This technology is developed based on the existing reverse push reciprocation grate, and its core is in view of the living MSW features of low heat value and high moisture. The MSW could be more fully burned by Single Segment Reverse Push Stoker system so as to decrease the heat reduction rate of ash slag. The primary air used for supporting burning is preheated by secondary air heater to make the temperature more than 240 ºC to 250 ºC, so as to make the MSW that enters into furnace dried, fired and burned at a quick speed. The extra air factor of boiler is designed to be over 1.6, to maintain sufficient oxygen in boiler and reduce the production of TEQ. Our boiler, high-temperature secondary air sprays into at a high speed to make sufficient disturbance of flue gas, prolong the residence in furnace, so as to improve the combustion condition to ensure the flue gas temperature not lower than 850 deg. C in furnace and residence over 2 seconds.
In view of the situation that the primary air which is used for supporting burning is difficult to control, division air chambers is designed, that is in accordance with the different regional features during MSW burning, the air chamber under the grate is divided into several relatively independent air chambers, each chamber equipped with air adjust door. Under certain air pressure, by adjusting the primary air amount in one or several or all air chambers, the regional or the whole combustion condition could be improved. The open range of air door and air amount is designed to be linear ratio, and the combustion condition could be exactly controlled by auto control system.
 
PROCESS LOGIC:
STEAM GENERATOR CAPACITY
Boiler Capacity TPH 8
Steam Pressure KG/cm2 40
Steam Temperature °C 400
Fuel Quantity TPD 180
CAPACITY OF THE PLANT
 
KGEPL is planned initially for 140 TPD for processing with an arrangement to enhance the facility upto 180 TPD.
 
PIT MANAGEMENT
4 to 5 days of the plant capacity is dumped in the pit.
The garbage is not kept in open as odor has to be managed
The garbage leaves the moisture and the CV increases due to anaerobic activity.
 
FUEL PROCESSING PLANT FOR THE PROJECT
The conversion process of Municipal Solid Waste (MSW) into processed fuel involves the following processes. MSW is collected, transported to Plant site by the Municipality.
Homogenization
Trammeling
Solar Drying 
Segregation
 
 
 
 
 
 
 
THE POWER GENERATION SCHEME
The steam cycle define the transformation of the chemical energy in the fuel to the mechanical energy at the turbine shaft, through the various thermodynamic processes. The Cycle is a sequence of thermodynamic processes that is capable of producing the net heat flow or work when placed between the energy source and an energy sink. Any Cycle needs a working fluid and steam is viewed as the most favoured working fluid mainly because of its unique combination of high thermal capacity, high critical temperature, wide availability at cheaper cost and non-toxic nature. Higher thermal capacity of the working fluid generally results in smaller equipment for the given power output or heat transfer.
All the steam-based power plants operate under the Rankine Cycle. Simplistically the Rankine Cycle is described as the combination of the various process like the isentropic compression of water in the boiler feed water pumps, reversible heat addition to the working fluid through the liquid, two phase and superheat states, isentropic expansion of the working medium in the turbine and the constant pressure heat rejection to the atmosphere through the condenser and the cooling water system. The cycle to be adopted for this project will be a modified Rankine Cycle with the addition of the Regenerative feed water heating. To improve the efficiency of the cycle the feed water from the condenser is heated with the steam extracted from the turbine. Because of the size of the plant there are limitations in the use of the number of stages for heating the feed water, and for this project only one stage of heating is done in a deaerator.
 
High pressure and high temperature cycles arc crucial for increasing the operating efficiency and the power output from the power Plants. The choice of the level of the pressure and temperature for the cycle depends on the level of confidence in the plant operators, quality of the feed water and the water treatment systems available and the cost of the high pressure/temperature boiler and Turbogenerator systems and the financial benefits realizable from the power plant by way of the sale of the exportable power.
 
Thermodynamically, energy recovery from the Rankine Cycle is more dependent on the steam inlet temperature than the pressure and the higher the inlet steam temperature, higher the cycle efficiency. However, the practically attainable limits of temperatures are influenced by the metallurgy of the boiler tubing, piping and the turbine components and the complexity of the Creep fatigue interaction for the materials at higher temperatures.
 
Temperatures upto 400°C require the use of ordinary carbon steel and beyond 400°C, low grade alloy steels are employed. Above 500°C, the requirements become stringent and expensive and above 550°C, the requirements are very stringent and prohibitively expensive. It is extremely important that the selection of the temperature is done keeping in mind the nature of the industry, nature of the fuel fired in the boiler, cost of fuel & environmental considerations. Considerations such as cost, maintainability, provision of adequate safety margins, the experience of the industry so far and the level of the operating personnel available in the industry, force us to a selection of a safe operating temperature for the plants of the subject size and nature. With the boilers fired with MSW / bio-mass fuels whose nature, composition and-size are difficult to control, it is also important to keep in mind that the superheater steam temperature response is a little erratic, even with a good steam temperature control system. This is mainly because of the nature of the fuel and the difficulty to ensure a correctly metered quantity of fuel flow to the boiler. The nature of fuel, especially the Chlorine content in the fuel and the corrosive nature dictates the steam temperatures for the project.
 
Considering the above, for AVUEPL, it is proposed to install the boiler with outlet steam parameters of 40 ata and 400°C ± 5°C. The steam inlet to the turbine will be 39 ata and 390°C, with the difference in the pressure and the temperature accounting for the losses in the steam piping from the boiler to the turbine.
 
 
 
 
Figure: Process Flow Diagram
 
Plant Operation
The Power plant will export a nominal 1.45 MW power on a continuous basis. The power requirements of the auxiliaries of the Power plant is0.35 MW, and the gross power generation in the plant will be 1.8 MW to meet with both the exportable power as well as the in-house requirements. The plant will operate for a minimum of 292 days per year at the designated capacity.
The feed water management program shall ensure the supply of good quality make up water to the system. In the proposed power cycle most of the steam supplied to the turbine, about 98% will come back as the condensate from the air cooled condenser and through the feed water heating systems. 
The makeup required will be approximately 4% to 5% of the steam generated in the boiler, which includes all the losses in the system and the blow down in the boiler. The complete make up required for the plant operation will be treated water and a reverse osmosis water treatment plant of adequate capacity will be provided. The make up for the cycle will be added in the condensate tank of the air cooled condenser and the quantity of makeup will be controlled by the deaerator level control system.
The feed water temperature at the inlet of the feed water pumps of the boiler will be 105°C, with the feed water heated in a thermal Deaerator. The temperature of the feed water at the pump outlet will be around 106°C; the rise in temperature is attributable to the work done in the pump.
The proposed turbine will be a single extraction cum condensing machine, the extraction being uncontrolled. The extractions will be at the pressure of 6.535ata and this extraction quantity is very small and meets only with the requirements of the deaerator and SCAPH. The steam required for ejector & gland sealing will be at the pressure of about 10.0 ata, which could be taken through a PRDS station in the plant.
The Power Generation cycle will be provided with the only one Feed water heating system in the form of a deaerator serving the dual purpose of deaerating the feed water as well as heating the feed water with the uncontrolled extraction steam at 6.535ata from the turbine. The   deaerator’scapacity will be 140 TPH and the capacity of the deaerated water storage tank shall be minimum 46 m3. The Deaerator system will be operating at 1.235 ata pressure, with the deaerated feed water temperature at 105°C.
The power generation in the turbogenerator will be at 11 kV level. The turbogenerator will be operating in parallel with the State Grid. Out of the gross generation of power at the generator terminals the in-plant power requirements will be met by stepping down the power in a step-down transformer and the balance of the generated power will be exported to the Grid. The exportable power will be stepped up and will be connected to the nearby sub-station of state grid. Adequate space and transformer capacities are available at the substation, for receiving the exportable quantum of power from the Power plant.
The Power plant’s water requirement will be met by drawl from borewells, within the plant and also from the nearby river.
The Power plant’s in-house power requirements, including the power    requirements  of the auxiliaries of the boiler, auxiliaries of the turbo-generator, the power requirements of the balance of the plant equipment, the fuel processing plant and including-the losses, works out to a total of 350 kW. 
 
Description of the Power Generation Scheme
The Power generation scheme proposed envisages a single boiler with all its auxiliary systems and an extraction cum condensing turbo-generator with all its auxiliary systems and HV systems for the export of the power to the grid and the remaining balance of plant items to complete the power plant.
The Scheme envisages 1 x20 TPH capacity steam generator with the outlet steam parameters of 40 ata and 400°C ± 5°C, with the feed water inlet temperature of 105°C. The Turbogenreator to be installed will have 1.8 MW capacity with single uncontrolled extractions. The plant will be designed with all other balance of plant systems like the fuel handling system, Ash handling system, raw water system, auxiliary cooling water system, air cooled condenser system, reverse osmosis water treatment system, compressed air system and HV systems, etc. for its successful operation.
 
The scheme is configured to optimize, the power generation, with one stage of feed water heating. The extraction of steam and its usage in the Deaerator for the Feed water heating improves the efficiency of the plant.
The entire steam generated in the boiler is fed to the single extraction condensing turbogenerator. The uncontrolled extraction from the turbine at 6.535 ata gives steam approximately at a temperature of 215°C. This steam is entirely used for heating up the feed water in the thermal deaerator and for SCAPH. In -addition to this steam, the flash steam recovered from the boiler blow down tank is also proposed to be used in the deaerator. The flash steam from the continuous blow down tank, equivalent to 0.237 TPH will be led into the deaerator for supplementing the steam supplied from the turbine extraction for deaeration.
The balance of the steam supplied to the turbine, after the extraction, is exhausted at 0.1 ata to the condenser of the power turbine. The condensate   from   the   condensate   tank   of the   condenser is then pumped to the feed water system by the condensate extraction pumps. In addition to the above quantity, the condensate from the gland steam condenser and the ejector condensers is added to the feed water system through the condensate tank.
The make up for the system is basically to take care of the -losses in the system. The major losses in the system are the blow down from the boiler and the vent losses from the various equipments like the deaerator, gland steam condenser and ejector condenser etc. and the leakages in the system. The losses in the blow down are about 0.633 TPH and the vent losses from the various equipments are estimated to be 0.167 TPH. A provision of about 3% is made for meeting with the leakages in the design of the makeup water system.
The condensate returning to the boiler consists of mainly the condensate from the water cooled condenser, the condensates from the Gland Steam Condenser and the condensate from the ejector condensers. All these condensates are collected in the condensate tank and then pumped to the deaerator for the purpose of deaeration and feed water heating by the condensate extraction pumps. The makeup water to the system is added to the deaerator. The makeup is a small quantity and also it is necessary that the make-up is supplied to the deaerator at a higher pressure for the purpose of atomisation for the effective deaeration. The makeup water supply to the system is controlled by the level control system of the deaerator.
The Power Point Presentation describing the complete MSW to energy conversion process is attached as Annexure VIII 
Noise Pollution
The rotating equipment in the Power plant & fuel preparation plant will be designed to operate with a total noise level of not exceeding 85 to 90 db(A) as per the requirement of Occupational Safety and Health Administration (OSHA) Standards of US. The rotating equipment is provided with silencers wherever required to meet the noise pollution. As per OSHA, protection from noise is required when sound levels exceed those given in the following.
PERMISSIBLE NOISE LEVELS
Exposure Duration / Hours Sound Level db(A)
8 90
6 92
4 .                                          95
3 97
2 100
1 102
The tolerance limits for theeffluents
S.No CHARACTERISTICS CONCENTRATION IN MICROGRAMS PER CUBIC METER
SPM S02 CO NOX
1. Industrial and mixed use 500 120 5000 120
2. Residential & Rural 200 80 2000 80
3. Sensitive 100 30 1000 30
 
 
EMISSION STANDARDS FOR BOILERS (Pollution Control Board)
 
S.NO CAPACITY OF BOILER PARTICULATE EMISSION LIMITS
1. Less than 2 tons /hour 1600 mg/Nm3
2. 2 to 15 tons /hour 1200 mg/Nm3
3. More than 15 tons /hour 150mg/Ncum
This requirement is applicable for boilers using any type of solid fuel.
 
BENEFIT OF REVERSE PUSH RECIPROCATING GRATE TECHNOLOGY
Better combustion & longer life
Grate bars made of – corrosion resistant, heat resistant cast 
steel alloy
Fuel Feeding System
Feeding system shall be a hydraulic RAM which is a proven system.
(N-1) Feeder operation for 100% MCR considered to take care of variation in fuel physical properties 
Fuel Spreading System
Pneumatic spreading system for uniform distribution to the entire grate
 
Combustor 
Higher excess air to maintain optimum grate temperature of less than 950 °c
Because of High excess air no ash fusion & clinker formation on the grate
Secondary air at correct location to ensure better air penetration & turbulent mixing and better post combustion
Furnace 1st pass with special type refractory lining low gas velocity & long residence time
Refractory lining take care of furnace corrosion due to change in atmosphere
 
A comparative table showing the emission specified by the technology provider with the emission standardsspecified by Central Pollution Control Board (CPCB) of India is given in the table below. 
Sl No Description Unit European Directive 2000/76/EC Indian Emission Norms Guaranteed Output
1.       Dust mg/m3 STP 10 150 10
2.       NOx mg/m3 STP 200 450 450
3.       NOx (option :SNCR) mg/m3 STP 200
4.       HCI mg/m3 STP 10 50 50
5.       SO2 mg/m3 STP 50 50
6.       HF mg/m3 STP 1 1
7.       TOC mg/m3 STP 10 10
8.       Hg mg/m3 STP 0.05 0.02
9.       Cd+TI mg/m3 STP 0.05 0.05
10.   Sb+As+Pb+Cr+Co+Cu+Mn+Ni+V mg/m3 STP 0.5 0.5
11.   Dioxins & Furans (TEQ) Ng/m3 STP 0.1 0.1
 
f) Computation of Power Potential and Plant Load Factor 
 
Input – Un-segregated Municipal Solid Waste – 180tonnesper day 
Energy recovery potential (kWh) 
= {caloric value of waste (kcal/kg) average waste collected (tones/Day) X 1000} / 860
= (1100 * 160 * 1000) / 860 = 204651kWh
Power generation potential (kW)
= Energy recovery potential (kWh) /24= 204651/24= 8527 kW
Gross generation potential (kW)
= Power generation potential (kW) X Conversional efficiency (22%)
= 8527 * 22% = 1875 KW = 1.8 MW 
Plant Availability Factor                          No of days the plant shall put in operation 
     =   ------------------------------------------------------=  
No of days in the year (365 days) 
    = 292 /365 = 80.00%
Plant Load Factor = 1.8MW*8760*0.80 / Name Plate capacity (1.8MW)*8760= 0.8 = 80%
PROJECT IMPLEMENTATION SCHEDULE AND WILLINGNESS TO POWER PURCHASE BY DISCOM 
The Project implementation schedule and application  made to DISCOM for procurement of green energy from the proposed MSW plant is attached with the petition in the form of Annexure IX and Annexure X respectively( submitted with the original petition).
 
 
C. Justification for the Submission
 
In the subsequent Paras, the petitioner respectfully submits before the Hon Commission the following facts:
a. Statutory provisions under which the petition is being filed before the Commission.
b. Reason why the Commission has jurisdiction to try, entertain and dispose of the petition 
c. Justification for the proposed technology, capital cost and Tariff 
a) Statutory provisions under which the petition is being filed before the Commission.
1. Section 62(1)of Electricity Act 2003: Section 62(1)of the ElectricityAct mandates the Commission to determine the tariff for supply of electricity by a generating company (including renewable sources of energy) to a distribution licensee, transmission of electricity, wheeling of electricity and retail sale of electricity in accordance with the provision of the Act. The Commission is duly bound to determine all tariff ( including renewable sources of energy ) as  specified in section 62 (1) of the Act  and while  doing so the Hon. Commission is guided by  the terms and conditions for tariff determination framed under Section 61(h) of the Electricity Act . Section 61 (h) of EA 2003 specifies that while drafting the terms and conditions for tariff determination the Commission should seethe need for promotion of co-generation and generation of electricity from renewable sources of energy.
2. Clause 8.1 of MERC (terms and conditions for determination of RE tariff) Regulations 2015 specifies that the Commission shall determine ‘Project specific tariff’, on case-to-case basis for municipal solid waste based projects. Clause 8.2 of above regulation states that “Determination of project specific tariff for generation of electricity from such RE sources shall be in accordance with such terms and conditions as may be stipulated under relevant Orders of the Commission. Provided that the financial norms specified inChapter2, except with regard to Capital Cost and O&M expenses, shall be the ceiling norms while determining suchproject-specific tariff.”
3. Clause 9.2of MERC (terms and conditions for determination of RE tariff) Regulations 2015specifies that  “A petition for determination of project-specific tariff shall be accompanied by such fee as may be specified in the applicable Regulations of the Commission,  and shall be accompanied by a) Information in Forms 1.1, 1.2, 2.1 and 2.2 as the case may be, appended as Annexure-A of these Regulations; b) a detailed project report outlining technical and operational details, site specific aspects, premises for capital cost and financing plan, etc. c) A Statement of all applicable terms and conditions and expected expenditure for the period for which tariff is to be determined. d) A statement containing details of any grant, subsidy or incentive received, due or assumed to be due from the Central Government, and/or State Government, which shall also include the computation of tariff without consideration of such grant, subsidy or incentive.. e) Details of financial gain through REC or any other mechanism. f) Any other information that the Commission may require the Petitioner to submit.The petitioner has annexed the requisite information as specified under (a), (b), (c) and (d) above with the petition. 
 
4. The National Electricity Policy(NEP) notified by the Government of India also envisages importance of MSW projects. Clause 5.10.5 of NEP states that “Setting up of municipal solid waste energy projects in urban areas and recovery of energy from industrial effluents will also be encouraged with a view to reducing environmental pollution apart from generating additional energy.”
5. Point 7 in Chapter VII of Integrated Energy Policy issued by Government of Indiastates that “for grid connected renewables, Regulatory Commissions (RC’s) should provide feed-in laws to permit renewables to supply electricity to the grid”.
b) Reasons why the Commission has jurisdiction to try, entertain and dispose of the petition
1. As far as the urban and industrial waste is concerned, the environmental problem that is caused in metro cities, both from the collection and disposal points of view, hardly needs emphasizing. Such urban wastes are not only the source of bad odor but also cause methane generation, a serious cause of global warming and consequent environmental degradation.Kolhapur city is no exception to this.
2. Scarcity of landfill site for MSW dumping is another cause of worry. All the available landfill sites in big cities havenearly reached their full capacity. Dumping of untreated waste at these landfill sites is environmental hazard both on account of methane that is generated, which escape into environment causing ‘Green house effect’ and leachate causing contamination of ground water resource. 
3. In order to provide a sustainable solution to the everincreasingproblem of disposal of waste, especially in the larger cities in Maharashtra, setting MSW to energy projects is the only effective solutiontherefore such projects should be promoted and the promoters should be given incentives to develop such projects.
4. As stated earlier, the mass-burn combustion  technology proposed by the petitioner has several distinct advantages as  i) lowest life cycle cost, ii) needs less land area , iii) produces more power with less waste iv)  causes maximum volume reduction. 
5. It is true that as per the MSW (management and handling) Rules 2000, the disposal of waste is the primary responsibility of the urbanlocal bodies. These rules require all local self governments to establish scientific solid waste processing facilities on or before 31st December 2003. However despite these rules there has not been any material improvement in MSW management practices across India. The compliance rate of Indian Municipal Corporations with the MSW Rule 2000 is very low essentially due to the limited financial and technical resources with the municipalities.  The Hon Appellate Tribunal of Electricity (ATE) in its recent judgment in appeal No. 197 of 2010 & IA nos. 276 & 277 of 2010 dated 16 September 2011 in the matter of Solapur Bioenergy Systems Pvt.Ltd., ruled that “the Municipal Corporations would fulfill its obligation under the MSW 2000 Rules once it has done the simple segregation for environment point of view, processing and disposal of the municipal waste. The Municipal Corporation is not required to undertake specified segregation for making MSW ready as a fuel. There is no obligation of the Municipal Corporation in absolute term that all waste should be completely processed and utilized to the full extent”. The ATE further ruled that the Commissionshould consider the pre-treatment cost associated with the segregating /screening of the waste under the capital cost while specifying generation tariff for MSW power projects. 
6. The Commission may also consider the environmental and social importance for promoting such waste to energy projects and the fact that it generates power and simultaneously disposes of the MSW in a scientific manner. Hon. Commission may consider the future fuel cost escalations and environmental externalities associated with conventional power projects while justifying the higher tariff for the electricity generated from MSW power plants.
 
c) Justification for the proposed technology, capital cost and Tariff 
 
1. Observations from the National Master Plan (NMP) for development of WTE projects in India (Assessment of Municipal Solid Waste to Energy Technology) 
Technical Memorandum on Waste to Energy Technology, National Master Plan for Development of Waste to Energy in India under Assessment of Municipal Solid WTE technologies has made an evaluation of the applicability of the technologies of biomethanation, gasification/pyrolysis, incineration and landfilling as Waste to Energy options in the global context. The evaluation results are given below. 
 
Table 2: Evaluation of Global Waste to Energy Technology Option
SN Evaluation criteria Rating Biological processes Thermal processes 
B L C I
A System Configuration 
1 Simplicity & Operability 0-12 8 12 12 4 4
2 Process flexibility 0-12 8 10 8 4 4
3 Scale up 0-6 6 4 4 6 6
Sub Total 0-30 22 26 24 14 14
B System Auxiliaries 
4 Pre-treatment 0-20 12 8 10 8 8
5 Post-treatment 0-10 6 6 6 6 6
Sub Total 0-30 18 14 16 14 14
C Environmental Aspects 
6 Environmental Impacts 0-30 25 15 15 5 15
Sub total 0-30 25 15 15 5 15
D Resource Recovery 
7 Energy and By products 0-30 20 12 4 20 24
Sub total 0-30 20 12 4 20 24
E Commercial Aspects 
8 Capital cost 0-12 6 4 4 4 4
9 O& M 0-12 10 6 4 4 6
10 Track record 0-6 6 6 3 6 3
Sub total 0-30 22 16 11 14 13
Total 150 107 83 70 67 80
Source: National Master Plan for development of WTE in India (technical memorandum on WTE technology)
Note:  B – Biomethanation, L – Landfill with gas recovery, C – Composting, I – Incineration, G- Gasification processes 
In the analysis presented in the above table, the incineration / combustion technology scores an overall rating of 67 out of 150 with technical, commercial and environmental factors. 
 
2. Recommendation under  National Master Plan for development of waste to energy projects 
MNRE in the document titled “Technical Memorandum on Waste to Energy Technologies” has assessed all the available potential technologies for Municipal Solid Waste to Energy projects on the basis of certain criteria such as system configuration, system auxiliaries, environmental aspects, resource recovery and commercial aspects. The study underlines the advantages of the incineration / combustion technology as given below:
 
Advantages of Mass-Combustion Systems
? Mass- combustion systems have larger capacities and higher thermal efficiencies
? Mass-combustion systems, as compared to modular systems, generate a higher-quality steam,allowing for higher revenues per tonne of waste
? These facilities can accept refuse that has undergone little pre-processing other than the removal of oversized items
? Mass- combustion avoids many of the refuse handling problems caused by the extremeheterogeneity and variability of MSW
? The net energy conversion can be equal to or better than that for RDF systems, since minimalenergy is used for front-end processing and no burnable material is removed
? Since most of the burning occurs on the grate, less particulate matter is entrained in the gasstream and air pollution control costs are thus reduced
? The units are compact and therefore land requirements are less than for RDF
 
 
3. Justification for capital cost, tariff and long term benefits of proposed WTE technologies.
i. The NMP for development of WTE under technical memorandum on investment and funding strategies has compared the available technological options in terms of capital cost; O&M cost, project life etc. The final results as given in the referred technical memorandum are reproduced below:   
Financing Option Units Capacity (1000 TPD) Capacity (500 TPD) Capacity (150 TPD)
Technology Biomethanation Gasification RDF –INC Biomethanation Gasification RDF INC Biomethanation Gasification RDF INC
Project Life Years 15 15 15 15 15 15 15 15 15
Capital Cost Rs. Lakhs 10000 21904 6483 6000 13000 3890 1800 4600 1400
O&M % of CC 8.5 7.43 13.54 8.33 6.5 13.55 9.44 6.5 13.57
(Source: Financial analysis of MSW WTE facility under technical memorandum on investment and funding strategies, page no – Chapter 3-8) 
 
The above cost bench marks are based on year 2002 -03 data. As per above analysis , for a typical 150 TPD capacity MSW power plant based on RDF based incineration technology, the capital cost isRs 14 Cr and O& M cost is around 13.57% of capital cost. Recently Gujarat Electricity Regulatory Commission approved Rs 14 crore / MW as capital cost for combustion based Waste-To-Energy (WTE) power project of Abellon Clean Ahmadabad Limitedto process and dispose the Municipal Solid Waste in case no 1334 of 2013 dated 23 December 2014.
ii. The Petitioner would like to mention that the proposed tariff of Rs7.44/kWh is alevellised tariff computed over the useful life of the plant (20 years) and will remain constant for 20 years after commissioning of the plant. 
 
On the other hand the cost of fossil fuel is going to increase in future as the reserves of coal and natural gases are depleting at an alarming rate. Similarly, a substantial part of the fossil fuel is imported from the politically sensitive countries. This will certainly increase the average power procurement cost of the DISCOMs in the state in near future.  
 
D. Cost of generation and proposed tariff 
 
a) Cost Break Up for proposed 1.8 MW WTE Power Project at Kolhapur
Sr.No. Project Cost Amount (Rs lakh)
1. Civil Work for Plant & Machinery 613.42
2. Plant & Machinery 1666.68
3. Total of Plant & machinery (EPC cost)(1 +2) 2280.10
4. Financing cost @ 1.50% of the EPC Cost 34.20
5 Preliminary and pre-operative expenses @ 4% of EPC Cost 91.20
6 Interest during construction 77.18
7. Total Project Cost (3+4+5+6) 2482.68
 
b) Summary of Quotations of Plant & Machinery 
A table showing break up of cost for Indigenous plant and machinery and imported plant and machinery  -  including Basic cost , Excise duty / custom duty , VAT, Insurance, transportation , erection etc.
Plant & Machinery (Rs. In Lacs)
 Grab Indigenous               81.59 
 Crane Indigenous               69.93 
 Boiler Indigenous             472.40 
 Turbine Condenser cooling tower Indigenous             460.00 
 Grate with hydraulics (Imported) Imported             279.72 
 Flue gas treatment Indigenous             233.10 
 Transportation   ---------               69.93 
 Total cost inclusive of ST         1,666.68 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
c) Basis for selecting Tariff parameters 
1. The petitioner has studied the tariff related provisions outlined inMERC (terms and conditions for determination REtariff) Regulations 2015, National Tariff Policy, and theRE tariff Regulation notified by CERC as well as the ruling of ATE in case of Appeal No. 197 of 2010 & I.A. nos. 276 & 277 of 2010 dated 16 September 2011.
2. As specified in clause no8.2 of MERC (terms and conditions for determination REtariff) Regulations 2015, the petitioner has adopted Project specific tariff computation methodology for the proposed MSW to energy project at Kolhapur. Accordingly, a single-part levellised tariff worked out over the life of the project (20 yrs) based on cost-plus approach for procurement of electricity from the proposed MSW power plant at Kolhapur.
3. As specified in the MERC (terms and conditions for determination REtariff) Regulations 2015, the financial parameter for other RE technologies except the capital cost,and O&M are consideredas ceiling norms for determination of project specific tariff for the proposed MSW power project at Kolhapur. Particularly, the financial parameters as given in the MERC Draft RE Tariff Order for FY 2016-17 (Case No 45 of 2016: Determination of Generic Tariff for Renewable Energy for the second year of the Review Period from 1 April 2016 to 31 March 2017) dated 4 March 2016 has been considered for the computation of the project specific tariff.
4. The capital cost and other operating parameters like O&M cost, capacity utilization factor, Auxiliary consumption are considered as the Detailed Project Report prepared for the proposed project. 
d) The performance/operating and financial componentsconsidered for computation of tariff for electricity generated from MSW power plant:
1. Capacity utilization factor: Considering the availability of MSW fromKMC, variation in the quality of MSW across the seasons, the Capacity utilization factorconsidered as 65% during stabilization period (first year) and 80% for remaining period, which seemsreasonable for tariff computation. 
2. Capital cost:Capital cost of the project is considered as given in para D (a) above. 
3. Debt:Equity ratio:In case of the Debt:Equity ratio the MERC (terms and conditions for determination RE tariff) Regulations 2015, specifies the same as 70:30. In case of the change in equity contribution than that of 30% the regulation has following provisions: 
If the equity contribution is less than the normative equity of 30% the actual equity participation will be considered and if the equity contribution is more than that of 30% then 30% will be considered while determination of tariff and the additional equity over and above 30% will be considered as debt. 
The petitioner has proposed to incur the Debt:Equity ratio as 65:35. However, the petitioner proposes the Debt:Equity ratio as 70:30 in line with provisions of the MERC (terms and conditions for determination RE tariff) Regulations 2015 for determination of tariff for the said project
4. Term of the loan: The loan repayment period of 12 years is considered in line with the clause 15.1 of the MERC (terms and conditions for determination RE tariff) Regulations2015. 
5. Interest on debt:In the MERC (terms and conditions for determination RE tariff) Regulations 2015, Hon. Commission had considered interest on long term debt as 300 basis points above the SBI base rate prevailing in the previous year. Accordingly as given in the draft RE tariff order for FY 2016-17, the base rate (9.56%) plus 300 basis point has been considered as interest rate for tariff determination purpose. Therefore, the petitioner has considered interest on debt as 12.56% per annum. 
6. Working capital and interest on working capital: The petitioner has computed the working capital in accordance with the MERC (terms and conditions for determination RE tariff) Regulations2015comprising of (a) operation and maintenance cost for one month, (b) receivables equivalent to 2 months of net energy charges for the sale of electricity calculated on the normative CUF and (c) Maintenance spares @15% of operation and maintenance expenses. The MERC RE Regulations 2015 allows interest on working capital as SBI base rate plus 350 basis points. Accordingly the petitioner has consider interest on working capital as 13.06% per annum
7. Return on equity:  MERC (terms and conditions for determination RE tariff)Regulations2015 allows return on equity as base rate of 16% to be grossed up as per applicable tax rate.  The Regulations also provide that rate of Return on Equity shall be computed by grossing up the base rate with the tax rate equivalent to Minimum Alternate Tax (MAT) for the first 10 years from COD, and the normal tax rate for the remaining years of Project life. Accordingly, as per prevailing tax rate, the base rate of 16% has been grossed up with MAT (@21.34%) for first 10 years and with income tax (@ 34.61%) for remaining 10 years of plant operation for the project specific tariff computation purpose.  
8. Life of plant and machinery:, The petitioner has considered 20 years as the useful life of the plant and machinery.  Same was considered under RE Tariff Regulations 2010 as well as for biomass and non fossil fuel based cogeneration projects under new RE tariff regulation 2015.
9. Depreciation of plant and machinery:  In line with MERC RE tariff Regulations 2015, the depreciation is computed at the rate of 5.83% per annum for the first 12years of Tariff period and the remaining depreciation amount (up to 90% of capital cost) is spread over the remaining useful life of the project (8 years).
10. Operation and maintenance expenditure: The clause 8.2 of MERC (terms and conditions for determination of tariff from renewable sources of energy) Regulations 2015allows to consider the actual O&M cost while determining the project specific tariff for the waste to energy project. The actual O&M cost for the proposed project is estimated at 6.6% of the project cost (Rs 165 lakhs in first year).
Due to the pre-treatment (screening, shredding & segregation of waste) requirement the O&M cost is slightly higher than the other RE power projects. The petition has considered the actual O&M expenses of 6.6% of capital cost with an annual escalation of 5.72% per annum for determination of tariff.Further, the petitioner has considered Rs 100 lakhs as periodic maintenance cost (included in the O&M cost) in every three years.  Considering the nature of operation the petitioner humbly requests to consider the proposed O&M costs.
11. Auxiliary consumption: The petition has considered the overall plant auxiliary consumption of 20% of gross generation for the tariff computation purpose. The petitioner has furnished 16% as a main plant equipment auxiliary consumption and 4% as plant lighting, building services & transformer/other equipment losses. The details of auxiliary consumption areas follows. 
 
Auxiliary consumption details: 
 
Sr. No. Equipment Power 
Consumption
 (KW) Working hours in a year Annual Consumption (kWh)
1 ID Fan          50.0        7,008              3,50,400 
2 FD Fan          30.0        7,008              2,10,240 
3 Boiler Feed Pump          86.0        7,008              6,02,688 
4 Cooling Water System          65.0        6,360              4,13,400 
5 Crane          30.0        4,225              1,26,750 
6 Trommel          35.0        5,618              1,96,630 
7 Fuel Feeding          30.0        4,220              1,26,600 
8 Plant Lighting          35.0        4,225              1,47,875 
9 Building services like air-conditioning, fire prevention          25.0        8,760              2,19,000 
10 Transformer & other equipment loss          15.0        8,760              1,31,400 
  Total 401            25,24,983 
12. Income from sale of product: Bottom ash (30 TPD) which will be generated in the process will be sold in the open market @ Rs 150 / Tonne.  Yearly income has been calculated as, yearly Income = TPD of by product (30 TPD) X rate of by product X capacity utilization factor considered for the project (65% for first year and 80% for remaining period). 
13. Income from tipping fee: As per the concessional agreement, tipping fee for 180 TPD @ Rs 308 /Tonne, without any escalation, has been also considered as income in the account of project developer.  Yearly tipping fee income has been calculated as, yearly Income from tipping fee = TPD of MSW receive (180 TPD) X tipping fee rate X capacity utilization factor considered for the project (65% for first year and 80% for remaining period). 
14. TechnicalParameter considered for determination of tariff for 1.8 MW of MSWto power project located at Kolhapur
 
No Technical Parameters Value Unit
1 Capacity of the Power Project 1.8 MW
2 Capacity Utilization Factor (first year) 65.00% %
3 Capacity Utilization Factor (remaining period) 80.00% %
4 Annual Gross Generation (first year) 102 Lakh kWh
5 Annual Gross Generation(remaining period) 126 Lakh kWh
6 Auxiliary consumption 20% %
7 Annual Net Generation (first year) 82 Lakh kWh
8 Annual Net Generation (remaining period) 101 Lakh kWh
9 Life of Plant and Machinery / Project Life 20 Years
 
Financial Parameterconsidered for determination of tariff for Kolhapur MSW power project
 
No Financial Parameters Value Unit
1. Cost of MSW Power Project 2482.68 Rs Lakh
2. Non - Depreciable Amount 10.00% % of Capital Cost
3. Depreciable Amount (Cap Cost Less non-depreciable Cost) 2234 Rs Lakh
4. Debt Fraction 70% %
5. Debt 1737.88 Rs Lakh
6. Equity 744.80 Rs Lakh
7. Interest Rate on Term Loan 12.56% %
8. Repayment Period 12 Years
9. Moratorium Period 0 Years
10. Depreciation (Straight Line Method) - for first 12years 5.83% %
11. Discount Rate 10.55% %
12. O&M cost 6.65% % of Capital Cost
13. O&M Cost Escalation per annum 5.72% %
14. Return on Equity (1-10 years) 20.34% %
15. Return on Equity (11-20 years) 24.47% %
16. Interest on working capital 13.06% %
17. Subsidy from MNRE 0 Rs Lakh 
18. Amount of waste to be delivered per day 180 Tonne
19. Tipping Fees to be received by developer from Corporation 308 Rs./Tonne
20. Annual Tipping fee collection in First year 131.53 Rs. In Lakh
21. Annual Tipping fee collection second year onwards 161.88 Rs. In Lakh
22. Tipping Fees Escalation over 20 years 0% %
23. Revenue from sale of by-products (ash) first year 10.68 Rs. In Lakh
24. Revenue from sale of by-products second year 13.14 Rs. In Lakh
Year 1 2 3 4 5 6 7 8 9 10
Net Energy sold (lakh kWh) 82.0 100.9 100.9 100.9 100.9 100.9 100.9 100.9 100.9 100.9
Costs (Rs lakh)
O&M 165.09 174.54 184.52 295.08 311.95 329.80 448.66 474.33 501.46 630.14
Depreciation (SLM) 144.74 144.74 144.74 144.74 144.74 144.74 144.74 144.74 144.74 144.74
Interest on term loan 209.18 190.99 172.80 154.61 136.42 118.23 100.04 81.85 63.66 45.47
Interest on working capital 16.90 16.27 16.40 21.89 22.39 22.94 28.88 29.85 30.89 37.36
Return on Equity 151.49 151.49 151.49 151.49 151.49 151.49 151.49 151.49 151.49 151.49
Total Cost 687.40 678.02 669.95 767.81 767.00 767.20 873.82 882.26 892.24 1009.21
Less: Income from tipping fee 131.53 161.88 161.88 161.88 161.88 161.88 161.88 161.88 161.88 161.88
Less: Additional income from sale of byproducts 10.68 13.14 13.14 13.14 13.14 13.14 13.14 13.14 13.14 13.14
Net cost 545.19 503.00 494.92 592.79 591.97 592.17 698.79 707.23 717.22 834.18
Gross Tariff (Rs/kWh) 8.38 6.72 6.64 7.61 7.60 7.60 8.66 8.74 8.84 10.00
Net Tariff (Rs / kWh) 6.65 4.98 4.90 5.87 5.87 5.87 6.92 7.01 7.11 8.27
Levellised tariff (20 yrs)
9.18 Rs/kWh
Levellised tariff (20 yrs) with internalization of tipping fee and other income 7.44 Rs/kWh
 
Year 11 12 13 14 15 16 17 18 19 20
Net Energy sold (lakh kWh) 100.9 100.9 100.9 100.9 100.9 100.9 100.9 100.9 100.9 100.9
Costs (Rs lakh)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   O&M 666.18 704.29 844.58 892.89 943.96 1097.95 1160.76 1227.15 1297.34 1471.55
Depreciation (SLM) 144.74 144.74 62.19 62.19 62.19 62.19 62.19 62.19 62.19 62.19
Interest on term loan 2.27 0.76 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest on working capital 39.01 41.01 46.65 49.23 51.95 60.18 63.53 67.08 70.83 80.13
Return on Equity 182.24 182.24 182.24 182.24 182.24 182.24 182.24 182.24 182.24 182.24
Total Cost 1034.44 1073.03 1135.65 1186.54 1240.34 1402.56 1468.72 1538.66 1612.60 1796.11
Less: Income from tipping fee 161.88 161.88 161.88 161.88 161.88 161.88 161.88 161.88 161.88 161.88
Less: Additional income from sale of byproducts 13.14 13.14 13.14 13.14 13.14 13.14 13.14 13.14 13.14 13.14
Net cost 859.42 898.01 960.63 1011.52 1065.32 1227.53 1293.69 1363.63 1437.57 1621.08
Gross Tariff (Rs/kWh) 10.25 10.63 11.25 11.76 12.29 13.90 14.55 15.25 15.98 17.80
Net Tariff (Rs / kWh) 8.52 8.90 9.52 10.02 10.56 12.16 12.82 13.51 14.25 16.06
 
E. Prayer 
 
 
1. Accept this petition for determination of tariff for supply of electricity from proposed MSW power project at Kolhapur to Distribution licensees in Maharashtra. It is further requested that the Hon. Commission may specify the levellised tariff for proposed MSW power plant for 20 year tariff period which is useful life of the plant. The Hon. Commission may direct the distribution licensee to execute the PPA with the petitioner for the specified tariff period.   
2. Approve the final levellised tariff of Rs. 7.44/kWh for sale of electricity generated from proposed MSW power project to distribution licensees in Maharashtra.
3. To grant an opportunity in person before Hon Commission during the hearing on the above matter. 
4. Condone any inadvertent omission/errors/short comings and permit the petitioner to add/change/modify/alter this filing and make future submissions as may be required at a future date. 
 
Enclosures:
1. Covering letter of submission of original petition
2. Index of original petition 
3. Enclosures of original petition