The thermal power generation segment is the key driver for the growth of the Indian boiler, turbine and generator (BTG) market. Moreover, the government’s push towards renewable energy has also influenced the dynamics of the BTG industry to make thermal power plants (TPPs) more flexible. Further, the stricter environmental regulations require TPPs to control emissions and hence they become an important focus area for the BTG industry. There is also a growing emphasis on uprating, modernisation and high-efficiency BTG equipment to improve the performance of the ageing and older units.
After a long hiatus, the new TPP pipeline is also showing promising signs, creating a significant opportunity for BTG manufacturers. The National Electricity Plan (NEP) by the Central Electricity Authority (CEA) has outlined a substantial pipeline of 51 GW for thermal capacity addition over the next decade. This anticipated growth is poised to significantly boost the BTG industry, particularly as tendering activities by both central and state power utilities gain momentum.
BTG market trends
The Indian boiler industry has the capability to manufacture thermal boilers with supercritical units up to 1,000 MW; and steam generators ranging from 30 MW to 800 MW capacity, using coal, lignite, oil, natural gas or a combination of these fuels. Steam turbines up to 1,000 MW rating are available for thermal sets and up to 700 MW ratings for nuclear power plants. Fuel-flexible boilers capable of all combinations of blending/co-firing diverse qualities of imported/indigenised coals, blending of lignite, pet coke, among others, are also prevalent in the Indian market.
Bharat Heavy Electricals Limited (BHEL) is currently the market leader in the Indian BTG space. The total order book of BHEL, as of September 30, 2023, stood at Rs 1,144.25 billion, of which the power sector accounted for Rs 826.73 billion. Major power sector-related orders booked by BHEL in July-September 2023 include an engineering, procurement and construction order for a 2×800 MW supercritical thermal power project (STPP) Stage II at Lara in Chhattisgarh from NTPC Limited and the supply of main plant equipment for 2×800 MW STPP (Phase II) at Bandhaura in Singrauli district, Madhya Pradesh, from Mahan Energen Limited (a subsidiary of Adani Power Limited).
Emerging opportunities
The shift towards renewable energy presents a key avenue for the BTG sector to contribute significantly by integrating renewable sources into the grid. Exporting BTG components to other countries not only opens up new revenue streams but also serves as a platform to showcase India’s engineering prowess on the global stage.
Embracing digital transformation through technologies such as internet of things (IoT), artificial intelligence (AI) and machine learning (ML) offers the potential to enhance the efficiency and reliability of BTG systems. Implementing predictive maintenance, real-time monitoring and data analytics can optimise plant performance, reducing downtime and improving the overall operational efficiency. Finally, continued investment in research and development is deemed essential for the industry to remain at the forefront of technological advancements. Collaborations between industry, academia and research institutions can foster innovation and address the challenges faced by the BTG sector.
Another key segment for the growth of BTG suppliers would be flexibilisation solutions. The flexible operation of existing TPPs has been identified as a promising measure for balancing the fluctuating renewable power. The flexibilisation of thermal units requires the installation of condition monitoring systems, upgradation of control and instrumentation systems, combustion optimisation, deployment of steam/flue gas management systems, condensate throttling, mill schedulers, etc. TPPs are also being modified for co-firing with alternative fuels such as biomass and for converting coal-fired plants to biomass-fired power plants to meet the government’s mandate on biomass co-firing. Flexibilisation leads to increased variable costs owing to the deterioration in efficiency, increased operations and maintenance (O&M) expenses, increased wear and tear, extra oil consumption for co-firing, higher start-up and shutdown costs, among others. TPPs situated close to the pithead are ideal for flexibilisation operations at sub-40 per cent load as they have low fuel costs and can, therefore, achieve break even despite lower loads. Most of the newer plants in India operate at peak loads of above 75 per cent, compared to ageing assets that operate at less than 70 per cent plant loads. Hence, flexibilising newer plants will entail a huge expenditure on installing the flexibilisation equipment needed for fast ramping. It will be less capital intensive to deploy flexibilising equipment in ageing plants although flexibilising ageing plants will lead to substantially higher operational costs as compared to new TPPs. Therefore, flexibilisation needs to be conducted on a case-to-case basis after thorough consideration of the commercial viability of the retrofit.
The O&M of TPPs is also critical to ensure efficient and uninterrupted operation. To this end, new and innovative solutions are gaining traction, offering several opportunities for equipment companies to offer digital solutions such as digital twins, industrial IoT, AI and ML. Utilities can deploy data analytics tools for the improvement of cyclic efficiency through detection of energy losses. These tools can also help optimise the maintenance strategy by restricting unscheduled outages and eliminating unnecessary preventive maintenance.
There is also a significant opportunity for equipment providers to cater to the demand for air quality control systems for TPPs. In light of the 2015 notification by the Ministry of Environment, Forest and Climate Change, flue gas desulphurisation (FGD) systems have been planned for 600 units aggregating 211.52 GW in capacity. According to CEA data, as of October 2023, FGDs have been commissioned and are operational for 24 units with a total capacity of 10,600 MW. Meanwhile, bids have been awarded for 227 units, aggregating 102,960 MW in capacity. Sector-wise, bids have been awarded for 133 units in the central sector, 48 in the state sector and 46 in the private sector. Additionally, a notice inviting tender has been issued for 25,895 MW capacity spanning 89 units.
Further, renovation and modernisation (R&M) and subsequent life extension (LE) of coal-based power plants are another area of opportunity for equipment companies. R&M has become especially significant as retrofits are required by existing plants to meet the demand for increasing flexibilisation and digitalisation. During 2017-22, R&M/LE works for 71 TPP units of 14,929 MW have been identified. Of these, R&M/LE works of six TPPs for an aggregate capacity of 887 MW (two central sector units – Units 3 and 6 of the Kathalguri combined cycle gas turbines, and four state sector units – Unit 4 of Ukai, Unit 3 of Wanakbori, Unit 6 of Koradi and Unit 12 of the Obra TPPs) have been completed. R&M/LE works for the remaining units are at various stages such as preparation of detailed project report, remnant life assessment, feasibility study and bid/tendering. Flexibilisation of thermal units may require the installation of condition monitoring systems, upgradation of control and instrumentation systems, combustion optimisation, steam/flue gas management systems, condensate throttling, mill schedulers, etc. Further, TPPs may be modified for co-firing with alternative fuels such as biomass, or for converting coal-fired plants to biomass-firing power plants. R&M interventions may also be carried out to reduce the water consumption of TPPs.
Summing up
As per the NEP, the thermal power capacity addition expected in the next 10 years will be around 51 GW. Accordingly, approximately 5.1 GW per year is expected to be added. BTG components constitute a significant portion of TPPs. Moreover, there has been a notable resurgence in the revival of both new and old TPPs, signifying potential for the BTG industry. As ageing power plants undergo comprehensive refurbishments and modernising efforts, the demand for cutting-edge BTG components has intensified. The retrofitting of older facilities with advanced boiler technologies, high-efficiency turbines and state-of-the-art generators not only enhances the overall plant performance but also aligns with global sustainability goals by improving energy efficiency and reducing environmental impacts. Simultaneously, the construction of new TPPs has experienced a resurgence, driven by the need for reliable and cost-effective energy sources. This has positioned the BTG industry at the forefront, driving innovation and fostering the development of more efficient and environmentally friendly solutions to meet the growing energy demands of the future.
That said, the BTG industry stands at a critical juncture, facing both challenges and opportunities. The industry’s ability to adapt to changing technologies, environmental regulations and market demands will shape its future trajectory. As India continues on its path of economic growth, a robust and efficient power sector, powered by a dynamic BTG industry, will be instrumental in meeting the nation’s energy needs and contributing to global sustainability goals.
