India is making slow but steady progress in its endeavour of adding thermal power capacity using supercritical technology. India's inherent dependence on coal-fired power plants cannot be wished away and deploying this efficient technology is a viable means to mitigate the carbon footprint. Venugopal Pillai takes a look at recent developments in the supercritical power equipment business.

India made a modest beginning in deploying supercritical technology way back in 2004 but it is only in the past two years that there is visible progress. India's objectives are twofold. First, the country needs to expeditiously set up supercritical power plants with a view to ensuring efficiency in power generation, and second, it needs to create a local base for equipment and services in the field supercritical power plants. Today, there is considerable progress on the first count, and on the second, a sound beginning has been made.

According to a special study by Electrical Monitor, orders for supercritical power equipment (boilers and turbinegenerators) aggregating around 51,500 mw were placed by Indian power producers, as of mid-March 2012. Another 12,000 mw of orders are on the verge of finalisation. (See Section NTPC's mega tender.) An important point to note is that Chinese suppliers are currently playing a very dominant role. However, as we move in time, a domestic manufacturing base will emerge as a formidable force—the incipient signs of which are conspicuous today.

SUPERCRITICAL POWER PROJECTS AWARDED*
Developer	Project	Capacity (mw)		Boiler	Turbine-Generator
		Units	Total
Public Sector and JVs
APGenco+IL&FS	Krishnapatnam, Andhra Pradesh	2x800	1,600	Bharat Heavy Electricals	L&T-MHI
Karnataka Power Corporation	Bellary, Karnataka	1x700	700	Bharat Heavy Electricals	Bharat Heavy Electricals
KPCL+BHEL	Raichur, Karnataka	2x800	1,600	Bharat Heavy Electricals	Bharat Heavy Electricals
Mahagenco	Koradi, Maharashtra	3x660	1,980	L&T-MHI	L&T-MHI
NTPC	Sipat (Stage 1), Chhattisgarh	3x660	1,980	Doosan Heavy Inds, Korea	OJSC Power Machines Group, Russia
NTPC	Barh (Stage 1), Bihar	3x660	1,980	Technoprom Export, Russia	OJSC Power Machines Group, Russia
NTPC	Barh (Stage 2), Bihar	2x660	1,320	Bharat Heavy Electricals	Bharat Heavy Electricals
NTPC	Kudgi, Karnataka	3x800	2,400	Doosan Heavy Inds, Korea	Toshiba-JSW
TNEB+BHEL	Udangadi, Tamil Nadu	2x800	1,600	Bharat Heavy Electricals	Bharat Heavy Electricals
Private Sector
Adani Power	Mundra, Gujarat (Unit 5 - 9)	5x660	3,300	Harbin, China	SEPCO III, China
Adani Power	Tirora, Maharashtra (Unit 1 - 3)	3x660	1,980	Babcock, China	BSTG, China
CLP India	Jhajjar, Haryana	2x660	1,320	SEPCO III, China	SEPCO III, China
Dainik Bhaskar Power	Singrauli, Madhya Pradesh	2x660	1,320	Bharat Heavy Electricals	Bharat Heavy Electricals
Essar Power	Salaya (Phase II), Gujarat	2x660	1,320	Harbin, China	Toshiba Corporation, Japan
Jaypee Associates	Nigrie, Madhya Pradesh	2x660	1,320	L&T-MHI	L&T-MHI
Jaypee Associates	Prayagraj, Uttar Pradesh	3x660	1,980	Bharat Heavy Electricals	Bharat Heavy Electricals
Lanco Infratech	Babandh, Orissa	2x660	1,320	Dongfang Electric, China	Dongfang Electric, China
Lanco Infratech	Amarkantak (U3 & U4), Chhattisgarh	2x660	1,320	Dongfang Electric, China	Dongfang Electric, China
Lanco Infratech	Mahanadi, Maharashtra	2x660	1,320	Dongfang Electric, China	Dongfang Electric, China
Reliance Power	Sasan UMPP, Madhya Pradesh	6x660	3,960	Shanghai Electric, China	Shanghai Electric, China
Reliance Power	Krishnapatnam UMPP, AP	6x660	3,960	Shanghai Electric, China	Shanghai Electric, China
Reliance Power	Chitrangi, Madhya Pradesh	6x660	3,960	Shanghai Electric, China	Shanghai Electric, China
Reliance Power	Tilaiya UMPP, Jharkhand**	6x660	3,960	Shanghai Electric, China	Shanghai Electric, China
Tata Power	Mundra UMPP, Gujarat	5x800	4,000	Doosan Heavy Inds, Korea	Toshiba Corporation, Japan
Total			51,500
*As of March 23, 2012. List may not be exhaustive.

A. FOREIGN SUPPLIERS

Role of China: The role of China in India's supercritical equipment business has been profound. China has landed orders aggregating over 27,000 mw that represents nearly half the total orders placed by Indian power producers so far.

Shanghai Electric has been a very dominant name thanks to its co-operation agreement with Reliance Power (Anil Ambani Group). In October 2010, Reliance ADA Group entered into a mega $8.3-billion agreement with Shanghai Electric to supply 36 supercritical power units. The two entities also agreed to co-operate on a host of other matters in the power sector. Shanghai Electric Group has won orders for equipment (boilers and turbine-generators) for 17,160 mw worth of supercritical power capacity.

Dongfang Electric of China has been a favourite for the Lanco group that has placed orders for six sets of 660-mw units. Unconfirmed reports suggest that Lanco has also planned to source subcritical and supercritical equipment from Harbin of China. No confirmation to this effect was immediately available.

Other Chinese suppliers catering to the Indian supercritical power equipment market include SEPCO III, Harbin, BSTG and Babcock China. Apart from Reliance (ADA) Group, Chinese suppliers have found favour with other private power producers like Adani, Essar and CLP India. In fact, none of orders won by Chinese suppliers for supercritical power equipment has been from the government sector—either Central or state. It is expected that private power producers will continue to order Chinese equipment, more because there is no immediate alternative. Once domestic equipment capacity gets built, the situation might change. In the medium term though, there is no sign of Chinese dominance easing off. It may also be mentioned that the local manufacturing industry had demand higher duty on import power generation equipment mainly to thwart Chinese competition. However, this demand has not yet been acceded to. In the foreseeable future, therefore, China has very little competition.

Role of other foreign suppliers: Going forward, the role of foreign suppliers (except Chinese) would be through joint ventures forged with Indian companies. However, foreign suppliers, in individual capacity, have won orders placed in the past. For instance, the very first orders for supercritical equipment were placed by NTPC on two foreign suppliers like Technopromexport and OSJC Power Machines Group (both from Russia) and Doosan Heavy Industries from Korea. The Russian suppliers mentioned haven't had any success after that, but Doosan Heavy Industries did receive some orders—from Tata Power for the Mundra UMPP and more recently from NTPC for the Kudgi project. For Both these projects, Doosan is mandated to supply the 800 mwrated boilers. Since Doosan is planning to set up a local manufacturing base in the country, it stands a good chance to qualify even for providing equipment to public sector projects. Government entities, ostensibly with a view to obviate Chinese suppliers in the tendering process, demand that suppliers have a local manufacturing base.

JVS FOR SUPERCTIICAL EQUIPMENT
Name of JV	Local Company	Equity	Foreign Partner	Equity	Location	Equipment
		(%)		(%)
L&T-MHI Boilers Pvt Ltd	Larsen & Toubro	51	Mitsubishi Heavy Inds, Japan	49	Gujarat	B
L&T-MHI Turbine Generators Pvt Ltd	Larsen & Toubro	51	Mitsubishi Heavy Inds, Japan	49	Gujarat	TG
Toshiba JSW Turbine & Generator Pvt Ltd	JSW Group	25	Toshiba, Japan	75	Tamil Nadu	TG
Alstom Bharat Forge Ltd	Bharat Forge	49	Alstom, France	51	Gujarat	TG
Thermax Babcock & Wilcox Ltd	Thermax	51	Babcock & Wilcox, USA	49	Maharashtra	B
BGR Turbines Company (P) Ltd	BGR Energy	74	Hitachi Ltd, Japan	26	Tamil Nadu	B
BGR Boilers Pvt Ltd	BGR Energy	70	Hitachi Power Europe, Germany	30	Tamil Nadu	TG
B=Boilers, TG=Turbine-Generators

B. LOCAL SUPPLIERS

BHEL: Bharat Heavy Electricals Ltd has been the traditional supplier of power generation equipment to Indian power plants. This was very much the case when power generation was solely in the hands of public sector entities. When India embarked on its supercritical technology endeavour, it was naturally expected BHEL would extend its role. However, this was not to be. When NTPC embarked on two supercritical power plants (Sipat in Chhattisgarh and Barh in Bihar), the tendering process was put on hold for BHEL to acquire competency and participate in the bidding process. However, BHEL could not acquire the technology on time, and both the projects were delayed only to be finally supplied by international supercritical power equipment players.

In the supercritical business, 's success has been mixed. The Central PSU engineering company has won orders worth 10,120 mw of equipment—in most cases, both boilers and turbine-generators. The orders have come from both public and private sector companies. Apart from securing orders through nomination or through competitive bidding, the PSU engineering company has also used the "developer" route. BHEL has so far formed two joint ventures with state power generation utilities to develop supercritical power projects. While BHEL would have a minority (26 per cent) stake in the JVs, the engineering company would be the de facto supplier of power equipment. The two JVs formed are with Tamil Nadu Electricity Board (now bifurcated) and Karnataka Power Corporation. In both the cases, the power plants will employ 800 mw-rated supercritical units.

India's demand for power generation capacity—both supercritical and conventional—has grown at such a phenomenal pace that it would be physically impossible for BHEL to match the demand. Today, BHEL is indeed contending with an inevitably declining market share, facing competition from domestic as well as international players. Going forward, BHEL's success will be governed by market forces and it faces true competition from domestic as well as international companies.

Joint ventures: The emergence of joint ventures between Indian and foreign companies in the power equipment space, and more so in the supercritical arena, is a defining moment for the Indian power sector. So far, at least five collaborations are in play and in some cases, the partners have even commissioned their equipment manufacturing plants. Here is a brief note on each of the JVs.

L&T-MHI: In January 2011, Larsen & Toubro and its joint venture partner Mitsubishi Heavy Industries commissioned its twin manufacturing facilities for supercritical equipment at Hazira in Gujarat. The two facilities will produce supercritical boilers and turbinegenerators, respectively. The indicative capacity of the plants is 5,000 mw per year, and L&T has 51 per cent stake in each of the ventures. L&T-MHI secured its first order when it won the turbine-generator package of the 2x800- mw Krishnapatnam supercritical project developed by a joint venture between APGenco and IL&FS. Later, L&TMHI won the BTG package for Jaypee's Nigrie project (2x660-mw) and Mahagenco's Koradi project (3x660-mw). L&T-MHI is also a strong contender for the NTPC's mega tender, which has been discussed separately.
 

NTPC'S BULK TENDERING
Project	State	Capacity
		(mw)
Mauda (Stage II)	MAH	2 x 660
Solapur	MAH	2 x 660
Nabinagar	BIH	3 x 660
Meja	UP	2 x 660
Raghunathpur (Stage II)*	WB	2 x 660
Kudgi	KAR	3 x 800
Darlipali	ORI	2 x 800
Gajmara	ORI	2 x 800
Lara	CHH	2 x 800
Total for 9 projects		14,460
*For Damodar Valley Corporation

JSW-Toshiba: In February this year, the turbinegenerator manufacturing facility of the joint venture between JSW Energy and Toshiba Corporation of Japan turned operational. The two partners joined forces in late 2008 to set up a $160-million facility in Tamil Nadu. The new facility will produce high-efficiency steam turbines and generators for supercritical thermal power plants, in generating capacities ranging from 500 mw and 1,000 mw. The plant's annual production capacity, currently at around 3,000 mw, will be doubled to 6,000 mw by March 2015. It will form a major manufacturing hub serving the global markets, alongside Toshiba's manufacturing base in Japan, a statement from Toshiba Corporation observed. Export destinations will include Middle East and Southeast Asia. The joint venture Toshiba JSW Turbine & Generator Pvt Ltd has so far won an order from NTPC to supply three supercritical turbine-generator sets for the Kudgi project in Karnataka.

Alstom-Bharat Forge: The joint venture is ready with its manufacturing facility in Gujarat for supercritical turbine-generators. Alstom Bharat Forge Power Ltd has emerged as L1 for NTPC's tender for sourcing 660-mw supercritical turbine-generators. The JV is awaiting NTPC's final award to start production.

Thermax-Babcock: Thermax, the Pune-based engineering company, formed a joint venture with its longstanding partner Babcock & Wilcox of USA. Thermax Babcock & Wilcox Ltd, in which the Indian partner holds 51 per cent stake is developing a manufacturing facility near Pune in Maharashtra for advanced boiler systems for supercritical plants.

BGR-Hitachi: In August 2010, Chennai-based BGR Energy Systems formed two joint ventures with Hitachi of Japan for manufacture of supercritical power equipment. This marked the entry of BGR Energy, till then a leading player in the balance-of-plant space, in the turnkey EPC contracting for power generation plants. The first joint venture BGR Turbines Company (P) Ltd was formed with 26 per cent holding by Hitachi Ltd. The second, for boilers, called BGR Boilers Pvt Ltd, has Germany-based Hitachi Power Europe GmbH as its 30-per cent equity partner. The manufacturing facilities of both the plants are in advanced stage of completion. BGR-Hitachi, according to reliable estimates, is likely to get its first orders soon. NTPC is on the verge of mandating the JV to supply four turbine-generators of 800-mw each.

NTPC'S MEGA SUPERCRITICAL TENDER: THE BIG PUSH
NTPC is in the midst of finalizing a bulk tendering process for supercritical power units, both of 660-mw and 800-mw. For suppliers—both traditional and new-generation—this represents a big business driver. NTPC is procuring as many as 19 supercritical power units of which 11 are of 660-mw variety and nine are of the advanced 800-mw variety. The aggregate size of the order is 14,460 mw (See Table).

In the first round, initiated in 2010, NTPC sought 11 units (boilers and turbine-generators) of 660-mw each. This included nine units for its own projects and two units for Damodar Valley Corporation. The bidding process has been delayed as some bidders moved court following their disqualification. The tendering routine was revived after the Supreme Court in February this year overruled a Delhi High Court judgement. In March 2011, the Delhi High Court had upheld the plea of a consortium of Ansaldo and Gammon against its disqualification by NTPC. Results of this tender would be finalized by April end. For the boiler packages, players in the fray include Bharat Heavy Electricals Ltd, Larsen & Toubro (in JV with Mitsubishi), BGR Energy (in JV with Hitachi), etc. For the turbine package, applicants include Bharat Forge-Alstom, Toshiba-JSW, BHEL, etc. According to information available, BGR Energy Systems has emerged L1 in the boilers component, while BHEL is a strong contender in the turbine-generator component.

What is supercritical technology?

The term "supercritical" refers to main steam operating conditions, being above the critical pressure of water (221.5 bar). The significance of the critical point lies in the difference in density between steam and water. Above the critical pressure there is no distinction between steam and water, i.e. above 221.5 bar, water is a fluid. In supercritical cycle, equipment is designed to operate above the critical pressure of water. Supercritical boilers are once-through where in the feedwater enters the economiser and flows through one path and main steam exits the circuit. Typically current supercritical units operate at 242 bar main steam pressure, 565ºC main steam temperature and 593ºC reheat steam temperature. Supercritical steam conditions improve the turbine cycle heat rate significantly over subcritical steam conditions. Overall supercritical power plant efficiency of around 42% is achievable with current supercritical parameters. Improved heat rate results in a 5 per cent reduction in fuel consumption, leading to a 5 per cent reduction in CO2 emissions per MWh energy output. (Source: Larsen & Toubro)

NTPC is also likely to soon finalize contracts for nine supercritical power units of 800-mw each. These nine units are to be deployed at Kudgi (Karnataka), Darlipali and Gajmara (both Orissa) and Lara (Chhattisgarh). Speaking to Electrical Monitor, a senior official from NTPC said that while some contracts have been finalized, some are held up due to land-related issues. He explained that since the contracts are for supply and erection of equipment, they can be finalized only when there is sufficient progress on land acquisition at the project sites. While the contract for the Kudgi project has been finalized, land-related hurdles are delaying award of contracts for the Darlipali and Lara projects.

The NTPC official elaborated that for the 3x800-mw Kudgi project, Toshiba-JSW Turbine Generators Pvt Ltd has been selected to supply turbine-generators, while boilers will be supplied by Doosan of Korea. The boiler order will be executed by Doosan Chennai Works, the Korean company's local manufacturing unit. It is reliably learnt that BGR Energy Systems Ltd, which has formed joint ventures with Hitachi Power GmbH will be supplying four turbine-generator units of 800-mw each, to be deployed at the Darlipali and Lara sites. Doosan will also receive the mandate for two more boilers. Bharat Heavy Electricals, according to reliable sources, will be entitled to supply four boiler sets and two TG sets. The JV between Larsen & Toubro and Mitsubishi Heavy Industries is also expected to land orders to supply 800- mw rating boilers and turbine-generators.

SUPERCRITICAL UNITS COMMISSIONED
Power plants based on supercritical technology are today a reality in India. So far, three power producers have commissioned supercritical power units. The credit for commissioning India's first power plant with supercritical technology goes to the Adani Group. In December 2010, the private business group commissioned the first unit of 660-mw of its Mundra power project (Phase 2) in Gujarat. The unit was commissioned in a record time of 36 months from zero date.

In June 2011, NTPC brought online the first 660-mw unit of its Sipat (Phase 1) power project in Chhattisgarh. It was widely believed that NTPC's Sipat project would be India's first power project on supercritical parameters. Although the contract was placed way back in April 2004, there was inordinate delay on part of the Russian contractors and suppliers.

Adani and NTPC subsequently commissioned more units of their respective projects. (See Table) Tata Power takes credit for commissioning India's largest power unit when the first unit of the 5x800-mw Mundra UMPP being developed in Gujarat by special purpose vehicle Coastal Gujarat Power Ltd was brought online.

CLP India also commissioned the first unit of its 2x660- mw Jhajjar supercritical power project in January this year. The unit began commercial production in March. This project, incidentally, is the first power generation project awarded on tariff-based competitive bidding.

As of March 23, 2012, India had at least seven supercritical power units aggregating 4,760 mw in operation. The achievement has been a collective effort of Chinese, Russian, Japanese and Korean suppliers. All said, India still awaits supercritical power plants equipped units with domestic equipment.

It may be mentioned that there were unconfirmed reports of three more units of 660-mw supercritical power units commissioned by Adani Power—one unit at Mundra and two at its Tirora plant in Maharashtra. Details could not be confirmed till the time of writing.

OUTLOOK
The outlook for supercritical power equipment is cautiously optimistic. The optimism emanates from the sheer fact that India would be very inclined to use supercritical technology in its future coal-fired plants. Despite all its efforts to promote clean energy sources, coalfired power plants will continue to be the mainstay for meeting base load. Supercritical power plants therefore offer an avenue to at least mitigate some of the environment-related adversities associated with conventional (subcritical) power plants.

Supercritical Units Commissioned*
Developer	Month	Project	Capacity
			(mw)
Adani Power	Dec-10	Mundra (Unit-5), GUJ	660
NTPC	Jun-11	Sipat (Phase-1, Unit-1), CHH	660
Adani Power	Jul-11	Mundra (Unit-6), GUJ	660
NTPC	Nov-11	Sipat (Phase-1, Unit-2), CHH	660
Adani Power	Nov-12	Mundra (Unit-7), GUJ	660
CLP India	Jan-12	Jhajjar (Unit-1), HAR	660
Tata Power	Mar-12	Mundra UMPP (Unit-1), GUJ	800
Total for seven units			4,760
*As of March 23, 2012; List may not be exhaustive

Power producers,both private and government-owned, are increasingly opting for supercritical power plants. Apart from being environment-positive, supercritical power plants are of large unit-sizes (660 mw, 800 mw, etc) thereby offering economies of scale. Industry experts feel that large unit-size power plants also less land-centric, which means that they take up less land per mw than conventional (lower unit-size) plants.

The caution in the optimism comes from the fact that India is yet to have a track record for supercritical power plants for domestic conditions. Although supercritical power plants have been in operation worldwide even for decades, experts point out to the fact that Indian coal, though available in abundance, is of inferior quality. For supercritical power plants to work at optimum levels, the coal used should be of the imported grade. Although many supercritical power plants, such as the coastally-located UMPPs, will be fired with imported coal, there are concerns surrounding availability of imported coal at competitive prices.

It is estimated that 60 per cent of the total thermal power capacity to be added in the XII Plan period (FY13 to FY17) will be through supercritical technology. In the XIII Plan period (FY18 to FY22), the entire envisaged thermal power capacity addition will be through supercritical plants. With respect to its supercritical ambitions, India appears to be on track.

Data compiled by Electrical Monitor reveals that orders worth around 45,000 mw have been placed for supercritical power equipment. Another 12,000 mw or so is expected from the mega NTPC tender that is scheduled to be finalized by the first quarter of FY13. With this, the targets for the XII Plan period seem attainable.

The ensuing financial year, 2012-13, will be a determinant of sorts for the supercritical power equipment industry. This is for several reasons. Firstly, supplies from local manufacturers are expected to begin. Till now, all the equipment commissioned is from foreign suppliers. Local suppliers would include the several partnerships between Indian and foreign companies, discussed earlier. Even Bharat Heavy Electricals Ltd, with several orders under its belt, is also expected to begin its supplies during FY13. In the next 1- 2 years, the 4,000-mw of supercritical power plants already commissioned will be in regular operation. This will form the foundation of India's experience with running supercritical power plants.

Amidst the overall excitement in ushering the supercritical technology era, there are genuine concerns regarding surplus capacity. Going by the upcoming jointventure manufacturing plants, new capacity of at least 20,000 mw is under creation. This does not include Chinese suppliers. In the medium term, India's demand for supercritical power equipment, as estimated by Electrical Monitor, would be in the range of 13,000 mw to 15,000 mw per year. Hence, there is a possibility of excess supply, possibly leading to competitive pricing. This is already evident in the mega tender of NTPC where rates quoted by Indian suppliers have been significantly lower than those seen in previous orders. All this bodes well for power producers and ultimately the consumer who could possibly look forward to lower tariffs.

In summary, India has made a good beginning in its supercritical endeavours. The next couple of years will determine how effectively this new culture spreads on the power canvas.

Advanced ultra supercritical

India has taken initial steps to build India's first coal-fired 800-mw advanced ultra supercritical thermal power plant. A tripartite agreement between NTPC, BHEL and Indira Gandhi Centre for Atomic Research (IGCAR) has been signed to this effect. The plant is expected to be operational by 2017. While BHEL would design and manufacture the equipment, testing would be done by IGCAR. NTPC will be the project implementing agency. R&D activities on the new technology have already started and the equipment should be ready in about two years hence. Advanced ultra supercritical power plants will have even more efficiency compared with supercritical power plants. The technology will result in around 12 per cent lower coal consumption leading to lower carbon footprint.

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