28-11-2012, 01:31 PM
RENOVATION AND MODERNIZATION OF THERMAL POWER PLANTS IN INDIA
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EXECUTIVE SUMMARY
This report provides guidance to plan and implement renovation & modernization (R&M) projects of thermal
power plants (TPPs) in India. More specifically, it is intended to provide input into the development of more
comprehensive set of guidelines, which may be developed by the Central Electricity Authority (CEA), in
collaboration with other institutions such as the World Bank and KfW Development Bank of Germany. A comprehensive
set of guidelines would include:
1. Early R&M project planning
2. R&M project assessment and preparation
3. Development of procurement strategy
4. R&M project implementation including requests for proposals (RFP), bid evaluation, commercial contracts, and
monitoring and supervision during project implementation.
Best practice examples
This guidance document covers items 1 and 2 (early R&M project planning; and R&M project assessment and
preparation) and provides preliminary guidance on item 3 (development of procurement strategy). Also, it provides
standardized documents (terms of reference for consultants) to carry out R&M project assessment and preparation
(item 2). The remaining project activities (e.g., competitive bidding, commercial contracts and project monitoring) are
expected to be added by other stakeholders (e.g., World Bank Technical Support to the Central Electricity Authority
(CEA) and KfW Development Bank of Germany).
INTRODUCTION
BACKGROUND
This report provides guidance for planning and implementation of renovation & modernization (R&M) projects for
thermal power plants (TPPs) in India. It is not intended to be a comprehensive source or detailed manual to plan
and implement R&M projects, but rather a useful supplement. This report is the outcome of recommendations
made during a workshop, organized by the United States Agency for International Development’s ECO-Asia Clean
Development and Climate Program (ECO-Asia CDCP) and the World Bank, which took place in New Delhi, India on
June 11-12, 2009. This report builds on those recommendations, the workshop findings and a survey that preceded the
workshop.
This document is developed with the support of ECO-Asia CDCP and is intended to provide input for the development
of more comprehensive guidelines. The Central Electricity Authority (CEA) intends to develop detailed guidelines in
collaboration with other institutions such as the World Bank and KfW Development Bank of Germany. A comprehensive
set of guidelines would include:
1. Early R&M project planning;
2. R&M project assessment and preparation;
3. development of procurement strategy;
4. R&M project implementation including requests for proposals (RFP), bid evaluation, commercial contracts, and
monitoring and supervision during project implementation; and
5. best practice examples.
RENOVATION & MODERNIZATION
It is essential to view the broad meaning of the term renovation & modernization (R&M) with specific reference to
thermal power plants (TPPs) before providing specific guidance on R&M planning. R&M is defined broadly as set of
activities which lead to improved performance and reliability of an existing power generation facility. It is natural for the
performance and reliability (sometimes the output, too) of a power plant to decline over its operating life. Repairs and
replacements of plant components can be done periodically, as problems are identified, or all together in an R&M project.
Typically R&M requires that the plant comes off line for longer than typically scheduled outages for maintenance and
repairs.
Development of rehabilitation project scope
The scope of the R&M project is determined after detailed assessment of the condition of all plant components, as well
as the costs-benefits associated with each scope item which can be implemented. As mentioned in the introduction, each
item of the project scope may serve one or more of the following objectives:
1. Enhance safe and reliable operation of the power plant;
2. It is required to comply with environmental regulations;
3. Extend the plant’s operating life;
4. Improve plant efficiency; and
5. Increase plant output.