Renovation, Modernization and Life Extension service of Power Plant -

Lack of available expertise in Indian market for Scope Determination of R & M projects

Presented By: Sapath Dutta Gupta / GM – BD, Power & Systems TUV SUD South Asia Pvt Ltd, India

14-04-21 R & M and RLE

Topics to discuss

TÜV SÜD South Asia 14-04-19 1 TUV SUD: Corporate Overview 2 Lack of Technical Expertise for scope determination 3 4 Measurable benefits for the clients Solution to overcome the problem for Lack of Technical expertise 5 Project References R & M and RLE Slide 2

Our heritage: 146 years of business success

TÜV SÜD South Asia 14-04-19

1866 1910 1926 1958 1990s 2006 2009 Today

Establishment of a Mannheim-based steam boiler inspection association by 21 operators and owners of steam boilers, with the objective of protecting man, the environment and property against the risk emanating from a new and largely unknown form of technology First vehicle periodic technical inspection (PTI) Introduction of the “TÜV mark / stamp” in Germany Development of a Bavaria-wide network of vehicle inspection centres in the late 1950s Conglomeration of TÜVs from the southern part of Germany to form TÜV SÜD and the expansion of business operations into Asia Expansion of services in ASEAN by acquiring Singapore-based PSB Group Launch of Turkey-wide vehicle inspection by TÜVTURK TÜV SÜD continues to pursue a strategy of internationalisation and growth R & M and RLE Slide 3

TÜV SÜD in numbers: Growing from strength to strength

1 150 800 1,820 18,800

one-stop technical solution provider years of experience locations worldwide million Euro in sales revenue 2012 employees worldwide 14-04-19 R & M and RLE Slide 4

Global expertise. Local experience.

Global Headquarters: Munich, Germany Legend:

Countries with TÜV SÜD offices Regional headquarters TÜV SÜD South Asia 14-04-19 R & M and RLE

GERMANY Euro 1,130 mio 10,200 staff INTERNATIONAL Euro 690 mio 8,600 staff

Slide 5

Technical expertise & broad industry knowledge

Testing & product certification Chemical, physical, mechanical, electrical and environmental testing and product certification. Inspection Product, system, building, plant and infrastructure inspection.

Auditing & system certification Audits system certification in a variety of fields including quality, safety, energy, social compliance and environment. Knowledge services Training Safety, quality, risk, environmental protection and regulatory advisory. Training in work safety, technical skills, management systems and executive programs. TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 6

INDUSTRY: Minimise risks. Optimise results.

Chemical, oil & gas Power & energy Manufacturing & industrial machinery

• • • • • • • •

Services for investors, operators and equipment manufacturers of upstream, midstream and downstream installations include:

Quality assurance and control Periodic inspection Owners’ engineer Acceptance checks and tests Material testing Auditing System certification Training TÜV SÜD South Asia • • • • • • • • • •

Services for investors, owners, operators and equipment manufacturers of conventional, nuclear and renewable energy plants include:

Due diligence Design reviews Risk management Owners’ engineer Construction monitoring Material testing Periodic inspection Regulatory compliance assessment System certification Training 14-04-19 R & M and RLE • • • • •

Services for components manufacturers, contractors, installation providers, equipment & material manufacturers and operators include:

Component testing Periodic inspection of equipment Failure analysis System certification Training Slide 7

CERTIFICATION: Achieve market success

Manufacturing & industrial machinery Consumer products & retail Healthcare & medical devices Telecommunications & IT

• • • • •

Services for components manufacturers, contractors, installation providers, equipment & material manufacturers and operators include:

Component testing Periodic inspection of equipment Failure analysis System certification Training • • • • • • •

Services for manufacturers, retailers, buyers and suppliers of electrical & electronics, food, health & beauty, hardlines, softlines, toys & children’s products:

Testing Auditing Inspection Product certification Knowledge services System certification Training TÜV SÜD South Asia 14-04-19 • • • • • • •

Services for medical device manufacturers and healthcare providers include:

Clinical approvals Market approvals and certification Testing Evaluation Quality control System certification Training • • • • • •

Services for equipment manufacturers and operators of infrastructure equipment and radio frequency wireless equipment include:

Design reviews Testing Software escrow Product certification System certification Training R & M and RLE Slide 8

Blue solutions for a sustainable future

Energy efficiency Renewable energy

• • • • • • • •

Services for manufacturers, planners, owners and operators of buildings, products and equipment, production plants, power plants, municipalities and regions include:

Energy audits Energy optimisation Energy efficiency certification Testing Product certification Compliance evaluation System certification Training TÜV SÜD South Asia 14-04-19 • • • • • •

Services for investors, manufacturers and operators of biomass, geothermal, hydropower, photovoltaic, solar thermal and wind components and plants include:

Feasibility & bankability assessments Construction monitoring Safety and licensing support services Equipment and component testing and certification Periodic inspection Training R & M and RLE Slide 9

Credentials

TÜV SÜD South Asia is accredited by:

       Central Electricity Authority (CEA) Bureau Of Energy Efficiency [BEE : Regulatory Body for Energy Efficiency, Ministry of Power, Govt. of India.] Gujarat Energy Development Authority [GEDA] Ministry of New & Renewable Energy [MNRE] Petroleum Conservation Research Association [PCRA] Maharashtra Energy Development Authority [MEDA] Indian Green Building Council ( IGBC ) / Confederation of Indian Industry ( CII ) 28 April 2020

TÜV SÜD South Asia

Footprint in South Asia

• TÜV SÜD South Asia is a fully owned subsidiary of TÜV SÜD AG • Operating in India since 1995 • Extensive network of over 30 offices including 12 labs across India, Bangladesh and Sri Lanka • Employee strength of over 1500 • Sales revenue of Rs.170 crore in 2013 • Over 12000 customers 14-04-19 R & M and RLE Slide 11

TÜV SÜD South Asia

CPP Competency Hub at TÜV SÜD

• TÜV SÜD Conventional Power Plant Competence Hub is a complete solution in order to determine the necessary technical, regulatory, jurisdictional and economical viable measures for New Building / In-Service inspection / R & M / LE of Power Plants • The Competence Hub has a highly trained and a highly qualified team of Experts, coordinated and managed from Munich, Germany • The Competence Hub has a multinational, multicultural and very experienced team of Experts • The Competence Hub has an international global approach, with local TÜV SÜD Experts & expertise involved • The Competence Hub has an extensive international experience proved by the reference list, with similar jobs completed worldwide 14-04-19 R & M and RLE Slide 12

Topic of Presentation

Lack of available technical expertise in Indian market for Scope Determination of R & M projects

TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 13

Owner Operator of Power Plant

• Limited agencies to carry out R&M studies competently because of lack of technical

expertise.

•

Lack of internal expertise to evaluate actual condition of equipment and costs for repair / renovation

• Cost escalation on account of surprises found during project execution and the difficulty to build them into the contract • Problems of ensuring expected and sustained plant performance after completion of R&M TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 14

Bidders

• Time gap between study of RLA and actual initiation of R&M bidding process • Uncertainty about the exact scope of work which makes it difficult to estimate the actual work to be undertaken • Unforeseen items / surprises during execution and impact on cost – how to build them into the estimate and how to reduce risk on this account.

• Functional Guarantees which form part of the contract are often difficult to achieve owing to lack of clarity on how verification will be carried out.

•

World Bank requires that the R&M Consultant shall do the energy audit / baseline assessment for the identified thermal power station.

TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 15

Funding Agencies

• Accuracy of the estimated costs • Ensuring a strategy that takes care of unforeseen items / surprises and their impact on project cost and time for execution • Delays in regulatory clearances • Lack of appropriate infrastructure for project execution • Ensuring that the study preceding the preparation of Detailed Project Report reflects actual conditions in the plant • Credit worthiness of the utilities • Material market fluctuations TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 16

Regulator

The regulator is concerned about the justification of the expenditure on R&M projects and would like to ensure that the investment results in the least additional cost to the public for the power generated after R&M. An objective judgment of the justified expenditure is complicated since it is difficult to establish which portion of the expenditure is based on genuine LE requirements and what is needed to make up for poor O&M practices.

TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 17

Measurable benefits for the clients

TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 18

Measurable benefits for the clients

•

Performance assessment as per ASME standard and by using online

calibrated inspection instruments. Cost reduction by using a single team of highly qualified Experts • Our services add certain value measured by the client in terms of time reduction, cost savings, safety and quality • TÜV SÜD Brand Name has a world wide recognition for technical competence, for independence, for impartiality and for reliability of the services provided • TÜV SÜD Brand Name is recognized and accepted by Finance sector, by Insurance sector and by Jurisdictional authorities TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 19

Advisory services along the capital value chain

Feasibility Planning

TDD

Procurement Construction

Investment Owner ´s Engineer

Commissioning In-service Rehabilitation Refurbishment Decommissioni Decommissioning ng

Operation Technical Advisor Licensing Consenting Tender & Contract Management Design Review Design Approval Pre-Qualification QA / QC Compliance Certification Claim Management Plant Status Assessment Plant Optimization In-service Inspection Performance Tests Noise / Vibration / Emissions Testing Due Diligence (TDD - technical, EDD - environmental) Staff Training / Qualification Retrofit Management Failure Analysis (RCFA) Efficiency Consultancy TÜV SÜD Romania 13-12-06 I Slide 20

Advisory services along the capital value chain

Feasibility Planning

TDD

Procurement

Tender & Contract Management Design Review Design Approval Pre-Qualification

Construction

Investment Owner ´s Engineer

Commissioning In-service Rehabilitation Decommissioni Decommissioning ng

Operation Technical Advisor QA / QC Compliance Certification Claim Management Plant Status Assessment Plant Optimization In-service Inspection Performance Tests Noise / Vibration / Emissions Testing Due Diligence (TDD - technical, EDD - environmental) Staff Training / Qualification Retrofit Management Failure Analysis (RCFA) Efficiency Consultancy TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 21

Solution to overcome the problem for Lack of Technical expertise

TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 22

Need for standardization

The large fleet of 200/210 MW units which are coming up for R&M provides an opportunity to standardize documents for tendering for R&M to ensure acceptable levels of quality and to harmonize the requirements of all the stakeholders to a reasonable level of satisfaction to permit efficient execution of projects in this crucial programme to meet the power needs of India.

TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 23

Operational Goal

The management of a CPP rehabilitation / modernization (R&M) has to monitor the fulfillment of some important operational goals for entire plant, as: – Plant load factor improvement; – Plant heat rate increasing, as well as component individual efficiency; – Plant availability and reliability increasing; – Parts life extension; – Environmental performances improvement. TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 24

Energy Efficiency, Condition Assessment & RLA consultancy from a single source

Detailed Project Report (DPR) preparation, on which purpose, some studies and evaluations may be necessary, that means: – Performance evaluation tests (PET); – Energy audit (EA) on main CPP parts/systems; – Residual Life Assessment (RLA) on all relevant parts, subjected to mechanical, thermal and chemical stresses; – Condition Assessment (CA) TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 25

RLA consultancy & Performance Guarantee from a single source Technical Assistance

After DPR elaboration, the project Consultant will assist the customer /owner in preparing as follows: – – – – – – Preparation of Specification for EPC Contractor selection; Bid documents and evaluation; Preparation of Quality Plan; Procurement supervision; Erection & Commissioning supervision.

Performance Guarantee TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 26

BTG & BOP consultancy for RLA from a single source

In case of a general R&M plant consultancy, the scope of works has to cover the following systems : – – – – – – – – Boilers and Auxiliaries; Turbines and their Auxiliaries; Generators and their Auxiliaries; Power Transformers (generator, auxiliary units, switch yard); Balance of Plant (cooling water, compressors, motors, piping, switch gear panels, Hydrogen generation); Instrumentation & Control (including distributed control system); Coal & Ash Handling Systems (if the case); Civil & Structures (RLA, concrete works, machine foundations, steel structures).

TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 27

Repair Supervision from a single source.

A CPP parts/systems repair process has to fulfill the following important Operation & Maintenance (O&M) goals: – – – – – Plant availability and reliability increasing; Parts life extension; Minimization of maintenance costs; Inventory optimization; Environmental performances observance. The parts repair / replacements occur typically during the plant overhauls, as regular scheduled maintenance activities. Repairs due to part damaging (causing unexpected breakdowns) are incidental cases, which will be treated as special interventions. TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 28

Project References

TÜV SÜD South Asia 14-04-19 R & M and RLE Slide 29

TÜV SÜD: References for Fluidized Bed Boilers Year

ongoing

Client Location

Bertsch. Austria / Outotec, Germany Çorlu, Turkey ongoing ongoing BASF, Germany UPM, Germany Ludwigshafen, Germany Schongau, Germany 2011-2013 2009-2010 Kraftanlagen München, Germany / Foster Wheeler, Finland Stora-.Enso, Germany Kladno , Czech Republic Karlsruhe-Maxau, Germany 2008-2009 hse, Germany Strambolijski, Bulgaria 2007 -2008 Austrian Energy & Environment, Austria 2003 2004 Alstom, Germany Wittenberg, Germany Canakkale, Turkey

Boiler technology / Steam parameter

Bubbling fluidized bed 96 t/h (62 bar, 380 2x 80 MW(th) ° C) Bubbling fluidized bed Circulating fluidized bed 50 MW(th)

Fuel / SOx emission limit

Fuel mix: biological sludge, paper sludge, rejects, natural gas, etc.

SOx < 50 mg/Nm³ Fuel mix: industrial sludge, coal, light oil SOx < 50 mg/Nm³ Paper waste SOx < 50 mg/Nm³

TÜV SÜD Services

Design examination boiler assembly Design examination external piping and balance of plant (BoP) Final assessment boiler and BOP assembly In-service inspections, Notified Body In-service inspections, Notified Body Circulating fluidized bed 326 MW(th) Circulating fluidized bed 156 MW(th) Bubbling fluidized bed 42 t/h (100 bar, 480 ° C) Circulating fluidized bed 62 t/h (160 bar, 535 ° C) 2x160 MWe Lignite Fuel mix: paper waste, biomass, hard coal SOx < 50 mg/Nm³ Biomass SOx < 50 mg/Nm³ Biomass SOx < 50 mg/Nm³ Lignite, Circulating fluidized bed Design examination boiler assembly Design examination external piping and balance of plant (BoP) Final assessment boiler and BOP assembly Construction supervision, Nofified Body, Site acceptance test Design Examination Final assessment at workshop (Romania) Final assessment on site Assembly Design Examination Final assessment at workshop (Croatia) Final assessment on site Assembly Manufacturing supervision, Compliance certification, Design review , Design approval, Site acceptance test TÜV SÜD Industrie Service GmbH 28.04.2020

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TÜV SÜD: References for Lignite Fired Power Plants

Year

2011-2013 2010 2003/2004 1997-2000 2006 2009 2008 2005 to 2008

Client

Kraftanlagen München, Germany / Foster Wheeler, Finland Vattenfall, Germany Alstom, Germany Vattenfall, Germany TÜV SÜD Industrie Service GmbH

Location

Kladno , Czech Republic Schwarze Pumpe, Germany Canakkale, Turkey Boxberg (Block Q), Germany

El. Output

135 MWe

Fuel , Combustion Technology

Lignite, Circulating fluidized bed 2x 750 MWe Lignite, 2x160 MWe Pulverized coal firing Lignite, Circulating fluidized bed

TÜV SÜD Services

Design examination boiler assembly Design examination external piping and balance of plant (BoP) Final assessment boiler and BOP assembly Evaluation and optimization of the O&M scheme for the entire power plant (boiler, steam turbine, balance of plant, etc) Manufacturing supervision, Compliance certification, Design review , Design approval, Final assessment on site 860 MWe 388 MW Lignite, Pulverized coal firing Combined Cycle Gas Turbine Power Plant Manufacturing supervision, Design review , Design approval, Construction supervision, Final assessment on site / Site acceptance test Thermal Performance Test on Combined Cycle Power Plant Vemagiri, India, Vemagiri Power Generation Limited, GMR Group (India) RRVUVN Kali Sindh Thermal Power Project Reliance Sasan Mega Power Project BHEL Santaldih ( Unit V) Project Vemagiri, AP India Kali Sindh & Chhabra India Sasan, India Santaldih, India 2 x 600 MW and 2 x 25 MW Coal 6 x 660 MW Coal 1 x 250 MW Coal 28.04.2020

Third Party Inspection of structural steel fabrication and erection of main power house building and mill building of 2 x 600 MW Kali Sindh Thermal Power Project and 2 x 250 MW Chhabra Thermal Power Project Third Part Inspection services of all the pipelines of the Balance of Plant for 6 x 660 MW Sasan Mega Power Project Field Quality Assurance Services for Civil, Structural, Boiler & Piping, Electrical & C & I Works and Safety Services at 1 x 250 MW Santaldih ( Unit V) Project Folie 31

TÜV SÜD: References for Lignite Fired Power Plants

Year

2011 2012 2012 2014

Client Location

Essar Power Limited Hazira, Gujarat, India Nalwa Steel and Power Ltd Raigarh, India G.R. Sponge & Power Ltd Hira Power & Steel Ltd Raigarh, India Raigarh, India

El. Output Fuel , Combustion Technology

Coal

TÜV SÜD Services

Energy Audit of a Power Plant Coal Coal Coal Energy Audit of a Power Plant Energy Audit of a Power Plant Energy Audit of a Power Plant TÜV SÜD Industrie Service GmbH 28.04.2020

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Thank you for your attention.

April 28, 2020 Sapath Dutta Gupta TÜV SÜD South Asia General Manager - Business Development Industrial Services - Power & Systems TÜV SÜD South Asia Pvt. Ltd.

Solitaire, 4th Floor, ITI Road, Aundh, Pune - 411 007, Maharashtra, India.

Boardline : +91-020-66841212 Directline : +91-020-66841215 Cell : +91-7767803522 Fax : +91-020-66841261 E-mail Website : [email protected]

: www.tuv-sud.in

28 April 2020