Merchant opportunities for power plants

Powerful Essays
Submitted by
Umesh Kumar

Proposed Title
Merchant Opportunities for power plants in India

Abstract
The concept was merchant power plant was introduced in India in 2003. With an existing huge demand supply gap of electricity in India, MPPs are considered to be panacea in the long run. Though the government has targeted capacity addition of 88,000 MW in the 12th FYP it seems faltering purely basis the trend of delays observed in project commissioning and the after effects of economic slowdown hitting the power generation sector in India. Can MPPs provide a sustainable solution to the energy needs of India? The paper attempts to find out challenges being faced by IPPs, various risks and return related to MPPs and what strategies can be adopted to promote merchant power plants and increase their market opportunities.

Introduction
Depending on the source of financing and customer to whom electricity would be sold, there are two types of power plants. Traditional rate based power plants and merchant power plant. Traditional rate based power plants are financed, built and operated by regulated electrical utility which in turn get the power at a cheaper rate. On the other hand funding for merchant power plants is provided by investors and electricity produced is sold at competitive price in the market. Traditional rate based power plants have a long term power purchase agreement (PPA), while merchant power plant have no such agreement.

The concept of merchant power plant was initiated by Ministry of Power, Government of India in 2003 as a measure to reduce the demand supply gap. In March’2009 peak demand in India was 109.8 GW while the supply was 96.6 GW. The peak deficit has almost increased by 40% from 9.5GW in FY04 to 13.1GW in FY09. In this context this paper aims to highlight the condition of merchant power plants in India, risk and returns associated with merchant power plants and how to improve the merchant opportunities for these power plants.

You May Also Find These Documents Helpful

  • Better Essays

    Merchant Power Plants

    • 1310 Words
    • 6 Pages

    Merchant power plants differ from traditional rate-based power plants as to: 1) how they are financed and 2) where they sell the electricity they generate. A merchant power plant is funded by investors and sells electricity in the competitive wholesale power market. Since a merchant plant is not required to serve any specific retail consumers, consumers are not obligated to pay for the construction, operations or maintenance of the plant. A traditional rate-based power plant, on the other hand…

    • 1310 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Power Plant

    • 8375 Words
    • 34 Pages

    Journal of Minerals & Materials Characterization & Engineering, Vol. 10, No.4, pp.367-385, 2011 jmmce.org Printed in the USA. All rights reserved Hot Corrosion & Erosion Problems in Coal Based Power Plants in India and Possible Solutions – A Review Vikas Chawlaa*, Amita Chawlab, D. Puric, S. Prakashc , Prema G. Gurbuxanid and Buta Singh Sidhue Mechanical Engineering Department, F.C.E.T. Ferozepur-152002, India Chemistry Department, Govt. Brijindra College,Faridkot-151203,India c Metallurgical…

    • 8375 Words
    • 34 Pages
    Better Essays
  • Best Essays

    Power Plant

    • 4378 Words
    • 18 Pages

    Sustainable Energy (JRSE), September Edition, 2011 Power Crisis & Its Solution through Renewable Energy in Bangladesh Khairul Anam, Husnain-Al-Bustam, Department of Electrical & Electronic Engineering, Islamic University of Technology, Abstract— Power is one of the most important factors for a developing country like Bangladesh. Like the rest of the countries of the world, the demand for power is increasing day by day in our country. At present, power failure has become an acute problem for this country…

    • 4378 Words
    • 18 Pages
    Best Essays
  • Powerful Essays

    Power Plant

    • 1158 Words
    • 9 Pages

    TRAINING UNDERTAKEN AT Giral Lignite Power Limited, Barmer Contents Company Synopsis Salient Feature Introduction Coal Handling Plant Boiler Boiler Auxiliary Equipments Turbine Ash Handling Plant COMPANY SYNOPSIS  Giral Lignite Power Plant (GLPL) is a wholly owned subsidiary of Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL). RRVUNL is a state government owned corporation working in field of power generation  Giral Lignite Power Limited is situated about 12Kms from…

    • 1158 Words
    • 9 Pages
    Powerful Essays
  • Better Essays

    Power Plant

    • 13162 Words
    • 53 Pages

    DC Generators and Motors Course No: E04-008 Credit: 4 PDH A. Bhatia Continuing Education and Development, Inc. 9 Greyridge Farm Court Stony Point, NY 10980 P: (877) 322-5800 F: (877) 322-4774 info@cedengineering.com CHAPTER 1 DIRECT CURRENT GENERATORS LEARNING OBJECTIVES Upon completion of the chapter you will be able to: 1. State the principle by which generators convert mechanical energy to electrical energy. 2. State the rule to be applied when you determine the direction of induced…

    • 13162 Words
    • 53 Pages
    Better Essays
  • Better Essays

    Diesel Power Plant

    • 1115 Words
    • 5 Pages

    Diesel Power Plant Figure shows the arrangements of the engine and its auxiliaries in a diesel power plant. The major components of the plant are: a) Engine Engine is the heart of a diesel power plant. Engine is directly connected through a gear box to the generator. Generally two-stroke engines are used for power generation. Now a days, advanced super & turbo charged high speed engines are available for power production. b) Air supply system Air inlet is arranged outside…

    • 1115 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Fukushima Power Plant

    • 1059 Words
    • 5 Pages

    Fukushima Power Plant Nuclear power plants now account for 14% of the world’s electricity supply [1]. These power plants differ only by the fuel used from oil coal or gas power plants. The concept is otherwise the same. Large nuclei become unstable when struck with a neutron, his causes it to split apart and also produce neutrons which are fire out. This then causes a chain reaction and other nuclei are split up. This splitting of nuclei is called nuclear fission and it provides heat which heats…

    • 1059 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Termal Power Plant

    • 6250 Words
    • 25 Pages

    BERCEN Training Program on On-site Inspection For the Environmental Enforcement Agencies and Inspectorates September 9-12, 2003 Ohrid Lake, Republic of Macedonia THE THERMAL POWER PLANT REK BITOLA (General information) 2 CONTENTS: page 1. Introduction. . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 2. Description of facilites . . . . . . . . . . . . . . . . . . . . . . . .. . . . . .. . . . . . . . . . . . . . . . .…

    • 6250 Words
    • 25 Pages
    Powerful Essays
  • Good Essays

    Thermal Power Plant

    • 6731 Words
    • 27 Pages

    Piboontum, S. M. Smith, and R. S. Conrad The Babcock & Wilcox Company Barberton, Ohio, U.S.A. Presented to: Electric Power 2005 April 5-7, 2005 Chicago, IL, U.S.A BR-1766 Boiler Performance Improvement Due to Intelligent Sootblowing Utilizing Real-Time Boiler Modeling on UP® Boilers S. J. Piboontum The Babcock & Wilcox Company Barberton, Ohio, U.S.A. Presented to Electric Power 2005 April 5 - 7, 2005 Chicago, Illinois, U.S.A. S. M. Swift The Babcock & Wilcox Company Barberton, Ohio, U.S.A. R…

    • 6731 Words
    • 27 Pages
    Good Essays
  • Powerful Essays

    Steam-Power-Plants

    • 82202 Words
    • 329 Pages

    UFC 3-540-02N 16 January 2004 UNIFIED FACILITIES CRITERIA (UFC) STEAM POWER PLANTS APPROVED FOR PUBLIC RELEASE; DISTRIBUTION UNLIMITED UFC 3-540-02N 16 January 2004 UNIFIED FACILITIES CRITERIA (UFC) STEAM POWER PLANTS Any copyrighted material included in this UFC is identified at its point of use. Use of the copyrighted material apart from this UFC must have the permission of the copyright holder. U.S. ARMY CORPS OF ENGINEERS NAVAL FACILITIES ENGINEERING COMMAND (Preparing Activity)…

    • 82202 Words
    • 329 Pages
    Powerful Essays