Uttar Pradesh’s peak power demand has seen strong growth, increasing at a compound annual growth rate of 8.9 per cent in the past 10 years. The demand touched a high of over 28,000 MW last year. According to estimates, the state is expected to witness approximately 40 GW of peak electricity demand to achieve its “one trillion-dollar economy” target by 2028.
The state power genco Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVUNL) is ramping up its capacity to meet these targets. Established in 1980, UPRVUNL has been playing a key role in meeting the state’s growing electricity demand. The company currently has over 6 GW of capacity across several thermal power plants (TPPs) in the state, set up both independently and through joint venture (JV) projects.
UPRVUNL is one of the few gencos in the country now gearing up to add significant thermal capacity over the next few years. It has an upcoming portfolio of 3.3 GW of under-construction coal-based projects based on supercritical technology, which will be set up independently. It also plans to add another 6.5 GW through JVs with other central sector majors as well as develop a coal block to secure fuel supplies for its upcoming units.
The company is taking various measures to install flue gas desulfurisation (FGD) at its power plants to ensure that they comply with the latest environmental regulations. Besides FGD, it is also undertaking initiatives to improve ash utilisation at its projects and utilise sewage treatment plant water in compliance with government guidelines. Moreover, to incorporate greater renewable energy into its mix, UPRVUNL has entered into an MoU with NTPC Limited’s arm, NTPC Green Energy Limited (NGEL), through which it will undertake efforts to meet the renewable generation obligations, flexibility in generation and scheduling of thermal/hydropower stations.
Operational and financial performance
UPRVUNL’s installed generation capacity, aggregating over 6.13 GW, is distributed across various coal-based power plants in the state, including the 2,630 MW Anapara plant, the 1,094 MW Obra plant, the 1,140 MW Parichha plant and the 1,270 MW Harduaganj plant.
The TPPs have a healthy operating track record, with the overall plant load factor (PLF) in 2022-23 standing at 67 per cent, above the national PLF of 57 per cent. Approximately 5.1 GW of the company’s installed thermal capacity is tied up in long-term PPAs.
As of November 2023, the TPPs generated a total ash of 62.47 million tonnes (mt), of which, 44.29 per cent has been utilised.
In financial year 2022-23, UPRVUNL recorded a total income of Rs 1.29 million, an increase of 39.7 per cent compared to financial year 2021-22. Its total expenses increased by 40.23 per cent, going from Rs 0.87 million to Rs 1.22 million during the same time period, with fuel expenses accounting for 66.39 per cent of the total expenditure. Further, its profit before exceptional items and tax increased from Rs 51,023 to Rs 69,462, marking a 36.14 per cent growth.
Project pipeline
UPRVUNL has a robust pipeline of under-construction projects with a total capacity of 3.3 GW, which includes the Obra C Extension Project (2×660 MW) in Sonbhadra, the Jawaharpur Super Thermal Power Project (STPP) (2×660 MW) in Etah, and the Panki Extension Project (660 MW) in Kanpur. These three projects will be fed by coal from the Saharpur-Jamarpani coal block and will be developed by UPRVUNL. In addition, the Ministry of Coal has granted bridge linkages for the projects. The firm recently operationalised one unit each of the 660 MW Obra C Extension Project and the 660 MW Jawaharpur STPP.
In addition to these projects, UPRVUNL has formed JV companies – Meja Urja Nigam Private Limited (MUNPL) with NTPC Limited and Neyveli Uttar Pradesh Power Limited with NLC India Limited – to implement additional 3.3 GW thermal projects collectively.
The Meja project, initially planned to be set up as 2×660 MW units, is now proposed to incorporate two additional 800 MW units. In January 2024, the state government approved cost estimates of Rs 179.85 billion for setting up the Obra D Ultra-supercritical TPP (2X 800 MW) in Sonbhadra. In November 2023, UPRVUNL’s board approved a proposal to set up the Anpara E TPP (2X 600 MW) in Sonbhadra at an investment of Rs 186.24 billion. Both the plants will be set up by the JV company, MUNPL.
The JV project with NLC will be set up in Ghatampur, Kanpur at an estimated cost of Rs 194.1 billion. The South Pachhawara coal block has been allotted as the coal block for the Ghatampur project.
Fuel Sourcing
Currently, UPRVUNL has fuel supply agreements for almost 25 million mt (mmt) per year. However, with the additional units under construction, there is expected to be an increase in coal consumption. For the six new supercritical units (with 660 MW each) having a total capacity of 3,960 MW, the estimated coal requirement is 18 mmt per year.
UPRVUNL is developing the Saharpur-Jamarpani captive coal block in Jharkhand, which holds total reserves of 973.9 mt. It has appointed the Central Mine Planning and Design Institute to prepare a geographical report, and the tendering process for mine developer and operator selection ( with a contracted capacity of 18 mtpa) is under way through NLC. The mine is expected to begin coal production from 2029 onwards.
Renewable energy diversification
Besides these TPPs, the genco has plans to venture into the renewable energy space as part of the renewable generation obligation (RGO) targets introduced by the central government. For this, it has formed a JV with NGEL, a wholly-owned subsidiary of NTPC, for implementing renewable energy projects in the state. UPRVUNL is a 49 per cent partner in this JV and plans to meet the major part of its RGO through this partnership. Under the MoU, the firms will set up floating and ground-mounted solar projects.
Moreover, as part of the Ministry of Power’s scheme for “Flexibility in Generation and Scheduling of Thermal/Hydro Power Stations through bundling with Renewable Energy and Storage Power”, the utility is planning to purchase 100 MW of solar power through the tariff-based competitive bidding mode.
Emission control
UPRVUNL is working towards the installation of FGDs worth Rs 28 billion on 4.05 GW of operational TPPs to comply with the centre’s environmental norms. Tenders have been awarded to Beijing SPC Environment Protection Tech Company Limited for the Apara D project and KC Cottrell for the Obra project. Notably, the 660 MW Harduaganj unit is the first in India to commission the selective catalytic reduction technology. Electrostatic precipitator retrofits have also been carried out at all of its stations.
It has started biomass co-firing at the Harduaganj TPP in compliance with directives from the Commission for Air Quality Management. So far, 18,000 mt of biomass has been co-fired.
Additionally, the company is exploring options with the Asian Development Bank to repurpose Unit 7 of the Harduaganj project. Studies are being undertaken to explore alternatives to convert this unit into a techno-commercially viable venture beyond its thermal plant functionality. The options being contemplated include converting it into a biomass-based unit, a stand-alone battery storage system with or without solar panels or a system balancing/synchronous condenser.
Meanwhile, for improving ash utilisation, the genco is exploring various options. The Anpara and Obra TPPs are situated in the Sonebhadra region, where avenues for ash disposal are limited. Consequently, TPPs are disposing of ash in low-lying areas, abandoned mines, etc. The company is also exploring avenues for transporting ash through railway rakes from the Anpara and Obra TPPs (for which a consultant will be appointed). The Parichha and Harduaganj TPPs currently sell their ash to cement manufacturers. While the Harduaganj TPP sells both pond ash and fly ash, the Parichha TPP sells fly ash and has initiated e-auctions for the sale of pond ash.
Further, UPRVUNL has begun work to meet the Tariff Policy 2016 requirements that mandate the usage of water from sewage treatment plants (STPs) in TPPs located within 50 km of the STP. For this, work is proposed to be undertaken through the public-private partnership mode at the Harduaganj and Jawaharpur TPPs, while for the Panki project, deposit work will be taken up through Uttar Pradesh Jal Nigam.
As Uttar Pradesh braces to meet its growing power requirements, the slew of projects under development, along with swift project commissioning, can enable UPRVUNL to meet the state’s $1 trillion goal.
Based on a presentation by Sanjay Kumar Dutta, Director (Projects and Commercial), UPRVUNL, at a recent Power Line conference