Wednesday 28 October 2009
Model TOR for Hydropower Projects
Model TOR for Hydropower Projects
EIA Studies
Policy, Legal and Administrative Framework
Review of the Country's legislative and administrative frame work within which the Environment Impact Assessment (EIA) is to be undertaken to ensure that the project is in compliance with national environmental and social requirements.
Scoping and Assessment of Alternatives
Scoping should be done before EIA, using suitable standard matrices. All the alternatives explored by project proponent should be studied from the environmental angle. Scoping matrix, likely impacts identified for various aspects of environment (aquatic, terrestrial and socio-economic) during construction and operation phase of the project must be discussed in brief for each alternative and reasons for selecting the best and optimum alternative on social and environmental considerations, and reasons for rejecting other alternatives be mentioned.
Methodology
Methods used for collecting data must be mentioned. In analysis of Air, Water and Noise, methodology adopted, instruments used etc., should be mentioned. The land-use/land-cover pattern of the area should be determined through remote sensing studies, interpretation of satellite imagery, topographic sheets coupled with ground truthing. In analysis of terrestrial as well as aquatic biota, the references used as guidelines should be cited. Standard methods must be used for characterizing the diversity and other significant features of the biota and details of field survey given.
The baseline studies will consist of 3 seasonal studies (Pre-monsoon, monsoon and winter seasons) and will be conducted in the following study area.
Study Area: The study area should include the following areas:
· Catchment Area
· Submergence Area
· Project Area to be acquired for various appurtenant works area within 10 km from main project components (i.e. Dam/Barrage/Diversion structure, Power house etc).
· To examine the cascading effect, a clear map showing the approved/under construction/completed HEPs on the both U/S and D/S to this project. Connect such information to establish the total length of interference of natural river flow, the total length of tunnelling of the river and the committed unrestricted release from the site of diversion into the main river.
· Adverse impact on land stability, catchment soil erosion, reservoir sedimentation and spring flow (if any) due to (a) considerable road construction/ widening activity (b) interfere of reservoir with the in-flowing streams (c) blasting for commissioning the HRT, TRT and some other structures should be studied
· Various maps providing salient features of the project need to be depicted in proper scale map of at least 1:15,000 like
1. The location map of the proposed project.
2. The project layout shall be superimposed on a contour map of ground elevation showing main project features (viz. location of dam, head works, main canal, branch canals, quarrying etc.) shall be depicted in a scaled map.
3. Drainage map of the catchment up to the project site.
4. Soil map of the study area.
5. Geological and seismotectonic maps of the study area showing main project features.
6. Remote sensing studies, interpretation of satellite imagery, topographic sheets along with ground verification shall be used to develop the land use/land cover pattern of study area using overlay mapping techniques viz. Geographic Information Systems (GISs). False colour composite (FCC) generated from satellite data of study area should be presented.
A. BASELINE DATA
1. Geological and Geophysical Aspects
· Geography & physiography of the project area
· Design discharge & its RI ( Recurrence interval)
· Regional Geology and structure of the catchment
· Seismicity, tectonics and history of past earthquakes in the area
· Critical review of the geological features around the project area
· Impact of project on geological environment
· Justification for location & execution of the project in relation to structural components (dam/barrage height)
2. Seismo-tectonics:
Study of Design Earthquake Parameters
A site specific study of earth quake parameters will be done. The results of the site specific earth quake design parameters will be sent for approval of the NCSDP (National Committee of Seismic Design Parameters, Central Water Commission, New Delhi for large dams.
3. Hydrology of the basin
o Hydro-meteorology, drainage systems
o Catastrophic events like cloud bursts and flash floods, if any would be documented.
o For estimation of Sedimentation rate direct sampling of river flow is
to be done during EIA to get actual silt flow rate (to be expressed in ha-m km-2 year-1). The one year of EIA study will provide an opportunity to do this for ascertaining the actual silt flow rate.
o Water availability for the project and the aquatic fauna
o Design discharge and its recurrence interval
4. Biological Resources
i. Flora
· General vegetation pattern and floral diversity viz. trees, shrubs, grasses, herbs, significant microflora etc. Vegetation should cover all gropus of plants including lichens and orchids.
· Forests and forest types
· Water body inundating forest area
· Vegetation profile, no. of species in the project area, etc.
· Community Structure through Vegetation mapping
· Species Diversity Index (Shanon-Weaver Index) of the biodiversity in the project area as well as plant fossil & phytoplankton
· Documentation of economically important plants, medicinal as well as timber, fuel wood etc.
· Endemic, endangered and threatened species
· Impact of impoundment and construction activities on the vegetation
· Cropping and Horticulture pattern and practices in the study area.
· Location of any Biosphere Reserve, National Park or Sanctuary in the vicinity of the project , if any
· For categorization of sub-catchments into various erosion classes and for the consequent CAT plan, the entire catchment (Indian portion) is to be considered and not only the directly draining catchment,
ii. Fauna
· Fauna study should be carried-out for all group of animals
· Inventorisation of terrestrial wildlife and present status
· Zoogeographic distribution/affinities, Endemic, threatened and endangered species and animal fossil
iii. Avifauna
· Fauna study should be carried-out for all group of animals
· Status
· Resident/Migratory/Passage migrants
· Zoogeographic distribution/affinities, endemic, threatened and endangered species & animal fossils
· Impact of project on threatened/endangered taxa, if any
· Inventorisation of terrestrial wildlife and present status along with schedule of the species
iv. Aquatic Ecology
· Aqua- fauna like macro-invertebrates, zooplankton, phytoplanktons, benthos etc.
· Conservation Status
Fish and Fisheries
· Fish migrations, if any
· Breeding grounds
· Impact of dam building on fish migration and habitat degradation
· Overall ecological impact upto 10 Km d/s from the confluence of the TRT with the river and the impact of untreated and waste water in to the river and the alternatives explored.
v. Conservation areas and status of threatened/endangered taxa
· Biotic Pressures
· Management plan for conservation areas and threatened/endangered taxa
vi. Remote Sensing & GIS studies – various maps Various maps providing salient features of the project need to be depicted in proper scale map of at least 1:15,000 like
§ The project layout shall be superimposed on a contour map of ground elevation showing main project features (viz. location of dam, head works, main canal, branch canals, quarrying etc.) shall be depicted in a scaled map.
· Delineation of critically degraded areas in the directly draining catchment on the basis of Silt Yield Index as per the methodology of AISLUS
· The location map of the proposed project.
· Land use and land cover mapping
· Drainage pattern/map
· Soil map of the study area
· Geo-physical features, slope and relief maps Geological and seismotectonic maps of the study area showing main project features.
Remote sensing studies, interpretation of satellite imagery, topographic sheets along with ground verification shall be used to develop the land use/land cover pattern of study area using overlay mapping techniques viz. Geographic Information Systems (GISs). False colour composite (FCC) generated from satellite data of study area should be presented
· Demarcation of Snow fed and rain fed areas for a realistic estimate of the water availability.
vii. Socio-economic aspects
· Land details*
· Demographic profile
· Ethnographic Profile
· Economic structure
· Development profile
· Agricultural practices
· Cultural and aesthetics sites
· Infrastructure facilities: education, health and hygiene, communication network, etc.
· Impact on socio-cultural and ethnographic aspects due to dam building report.
*Report would include list of all the Project Affected Families with their names, education, land holdings, other properties, occupation, etc.
viii. Collection of data pertaining to water (physico-chemical and biological parameters), air and noise environment and likely impact during construction and post construction periods.
ix. Air Environment
· Baseline Information on ambient air quality in the project area covering aspects like SPM, RSPM, Sox, NOx
· Noise Environment
· Traffic density in the project area
x. Construction Methodology and Schedule including the tunnel driving operations, machinery and charge density, etc.
B. IMPACT PREDICTION
Air
· Changes in ambient levels and ground level concentrations due to total emissions from point, line and area sources
· Effects on soils, material, vegetation, and human health
· Impact of emissions DG sets used for construction power if any, on air environment.
Noise
· Changes in ambient levels due to noise generated from equipment, blasting operations and movement of vehicles
· Effect on fauna and human health
Water
· Changes in quality
· Sedimentation of reservoir
· Impact on fish fauna
· Impact of sewage disposal
Land
· Changes in land use and drainage pattern
· Changes in land quality including effects of waste disposal
· Riverbank and their stability
· Impact due to submergence
Biological
· Deforestation and shrinkage of animal habitat
· Impact on fauna and flora (including aquatic species if any) due to decreased flow of water
· Impact on rare and endangered species, endemic species, and migratory path/route of animals, if any
· Impact on breeding and nesting grounds, if any
· Impact on animal distribution, migration routes (if any), habitat fragmentation and destruction due to dam building activity
Socio-economic Aspects
· Impact on the local community including demographic changes
· Impact on economic status
· Impact on human health
· Impact on increased traffic
· Impact on Holy Places and Tourism
· Downstream impact on water, land & human environment due to drying up of the river in the stretch between dam site and powerhouse site.
· Positive as well as negative impacts likely to be accrued due to the project are to be listed.
I. ENVIRONMENTAL MANAGENET PLAN (EMP)
a) Catchment Area Treatment Plan
Delineation of micro-watersheds in the river catchment and mapping of critically degraded areas requiring various biological and engineering treatment measures. Identification of area for treatment based upon Remote Sensing & GIS methodology and Silt Yield Index (SYI) method of AISLUS coupled with ground survey. The prioritization of watershed for treatment based upon SYI. Spatial Information in each micro watershed should be earmarked on maps in the scale of 1:50,000. The Cat plan would be prepared with year-wise Physical and financial details.
b) Creation of Green Belt Plan around the Periphery of the Reservoir and Compensatory Afforestation Scheme in consultation with the State Forest department.
c) Biodiversity Conservation and Wild life Management Plan for conservation and preservation of endemic, rare and endangered species of flora and fauna (in consultation with the State Wildlife Department)
c) Fisheries Development plan for conservation/management of
reverine fishes.
d) Resettlement & Rehabilitation (R&R) Plan along with social/community development. R&R plan would be framed in consultation with the Project Affected Persons (PAPs), Project Authorities and the State Government. R & R Plan would be drafted according to the NPRR 2003 and the policy of State Government.
e) Muck Disposal Plan (Suitable sites for dumping of excavated material would be identified in consultation with the State Pollution Control Board and Forest Department)
f) Energy Conservation Measures
g) Dam Break Analysis & Disaster Management Plan.
h) Restoration and landscaping of working Areas: reclamation of borrow pits (quarry sites) and construction areas.
i) Public Health Delivery System including the provisions for drinking water facility for the local community.
j) Management during the Road Construction
k) Sanitation & Solid Waste Management Plan for domestic waste from colonies and labour camps, etc.
l) Water and Air Quality & Noise Environment Management during construction and post-construction periods.
m) Forest Protection Plan
n) Reservoir RIM Treatment Plan
o) Environmental Monitoring Programme (With physical & financial details covering all the aspects form EMP).
p) For such a large and high budget project, neglecting drinking water component may not be justified. Therefore, if supplying safe drinking water to the population surrounding the project area is not to be considered, a clear justification for this may be given
q) Option assessment study to show that are the option available for fulfilling the needs of the people that the project hopes to fulfill. This section should also show if and how the proposed project is the least cost option and also include reducing the transmission and distribution losses to the minimum.
r) A summary of Cost Estimate for all the plans (Cost for implementing all the Environmental Management Plans including the cost for implementing Environmental Monitoring Programme, aforesaid compensation, mitigation and management measures, etc.)
In respect of North-East, the following should be added
· Tribal area development plan as the area is predominantly tribal.
· Mitigations measures to check shifting cultivation (Zhum Cultivation) in the catchment area with provision for alternative and better agricultural practices
· In addition to Socio-economic aspects of the study area, a separate chapter on socio-cultural aspects based upon study on Ethnography of the area.
Model TOR for Hydropower Projects
EIA Studies
Policy, Legal and Administrative Framework
Review of the Country's legislative and administrative frame work within which the Environment Impact Assessment (EIA) is to be undertaken to ensure that the project is in compliance with national environmental and social requirements.
Scoping and Assessment of Alternatives
Scoping should be done before EIA, using suitable standard matrices. All the alternatives explored by project proponent should be studied from the environmental angle. Scoping matrix, likely impacts identified for various aspects of environment (aquatic, terrestrial and socio-economic) during construction and operation phase of the project must be discussed in brief for each alternative and reasons for selecting the best and optimum alternative on social and environmental considerations, and reasons for rejecting other alternatives be mentioned.
Methodology
Methods used for collecting data must be mentioned. In analysis of Air, Water and Noise, methodology adopted, instruments used etc., should be mentioned. The land-use/land-cover pattern of the area should be determined through remote sensing studies, interpretation of satellite imagery, topographic sheets coupled with ground truthing. In analysis of terrestrial as well as aquatic biota, the references used as guidelines should be cited. Standard methods must be used for characterizing the diversity and other significant features of the biota and details of field survey given.
The baseline studies will consist of 3 seasonal studies (Pre-monsoon, monsoon and winter seasons) and will be conducted in the following study area.
Study Area: The study area should include the following areas:
· Catchment Area
· Submergence Area
· Project Area to be acquired for various appurtenant works area within 10 km from main project components (i.e. Dam/Barrage/Diversion structure, Power house etc).
· To examine the cascading effect, a clear map showing the approved/under construction/completed HEPs on the both U/S and D/S to this project. Connect such information to establish the total length of interference of natural river flow, the total length of tunnelling of the river and the committed unrestricted release from the site of diversion into the main river.
· Adverse impact on land stability, catchment soil erosion, reservoir sedimentation and spring flow (if any) due to (a) considerable road construction/ widening activity (b) interfere of reservoir with the in-flowing streams (c) blasting for commissioning the HRT, TRT and some other structures should be studied
· Various maps providing salient features of the project need to be depicted in proper scale map of at least 1:15,000 like
1. The location map of the proposed project.
2. The project layout shall be superimposed on a contour map of ground elevation showing main project features (viz. location of dam, head works, main canal, branch canals, quarrying etc.) shall be depicted in a scaled map.
3. Drainage map of the catchment up to the project site.
4. Soil map of the study area.
5. Geological and seismotectonic maps of the study area showing main project features.
6. Remote sensing studies, interpretation of satellite imagery, topographic sheets along with ground verification shall be used to develop the land use/land cover pattern of study area using overlay mapping techniques viz. Geographic Information Systems (GISs). False colour composite (FCC) generated from satellite data of study area should be presented.
A. BASELINE DATA
1. Geological and Geophysical Aspects
· Geography & physiography of the project area
· Design discharge & its RI ( Recurrence interval)
· Regional Geology and structure of the catchment
· Seismicity, tectonics and history of past earthquakes in the area
· Critical review of the geological features around the project area
· Impact of project on geological environment
· Justification for location & execution of the project in relation to structural components (dam/barrage height)
2. Seismo-tectonics:
Study of Design Earthquake Parameters
A site specific study of earth quake parameters will be done. The results of the site specific earth quake design parameters will be sent for approval of the NCSDP (National Committee of Seismic Design Parameters, Central Water Commission, New Delhi for large dams.
3. Hydrology of the basin
o Hydro-meteorology, drainage systems
o Catastrophic events like cloud bursts and flash floods, if any would be documented.
o For estimation of Sedimentation rate direct sampling of river flow is
to be done during EIA to get actual silt flow rate (to be expressed in ha-m km-2 year-1). The one year of EIA study will provide an opportunity to do this for ascertaining the actual silt flow rate.
o Water availability for the project and the aquatic fauna
o Design discharge and its recurrence interval
4. Biological Resources
i. Flora
· General vegetation pattern and floral diversity viz. trees, shrubs, grasses, herbs, significant microflora etc. Vegetation should cover all gropus of plants including lichens and orchids.
· Forests and forest types
· Water body inundating forest area
· Vegetation profile, no. of species in the project area, etc.
· Community Structure through Vegetation mapping
· Species Diversity Index (Shanon-Weaver Index) of the biodiversity in the project area as well as plant fossil & phytoplankton
· Documentation of economically important plants, medicinal as well as timber, fuel wood etc.
· Endemic, endangered and threatened species
· Impact of impoundment and construction activities on the vegetation
· Cropping and Horticulture pattern and practices in the study area.
· Location of any Biosphere Reserve, National Park or Sanctuary in the vicinity of the project , if any
· For categorization of sub-catchments into various erosion classes and for the consequent CAT plan, the entire catchment (Indian portion) is to be considered and not only the directly draining catchment,
ii. Fauna
· Fauna study should be carried-out for all group of animals
· Inventorisation of terrestrial wildlife and present status
· Zoogeographic distribution/affinities, Endemic, threatened and endangered species and animal fossil
iii. Avifauna
· Fauna study should be carried-out for all group of animals
· Status
· Resident/Migratory/Passage migrants
· Zoogeographic distribution/affinities, endemic, threatened and endangered species & animal fossils
· Impact of project on threatened/endangered taxa, if any
· Inventorisation of terrestrial wildlife and present status along with schedule of the species
iv. Aquatic Ecology
· Aqua- fauna like macro-invertebrates, zooplankton, phytoplanktons, benthos etc.
· Conservation Status
Fish and Fisheries
· Fish migrations, if any
· Breeding grounds
· Impact of dam building on fish migration and habitat degradation
· Overall ecological impact upto 10 Km d/s from the confluence of the TRT with the river and the impact of untreated and waste water in to the river and the alternatives explored.
v. Conservation areas and status of threatened/endangered taxa
· Biotic Pressures
· Management plan for conservation areas and threatened/endangered taxa
vi. Remote Sensing & GIS studies – various maps Various maps providing salient features of the project need to be depicted in proper scale map of at least 1:15,000 like
§ The project layout shall be superimposed on a contour map of ground elevation showing main project features (viz. location of dam, head works, main canal, branch canals, quarrying etc.) shall be depicted in a scaled map.
· Delineation of critically degraded areas in the directly draining catchment on the basis of Silt Yield Index as per the methodology of AISLUS
· The location map of the proposed project.
· Land use and land cover mapping
· Drainage pattern/map
· Soil map of the study area
· Geo-physical features, slope and relief maps Geological and seismotectonic maps of the study area showing main project features.
Remote sensing studies, interpretation of satellite imagery, topographic sheets along with ground verification shall be used to develop the land use/land cover pattern of study area using overlay mapping techniques viz. Geographic Information Systems (GISs). False colour composite (FCC) generated from satellite data of study area should be presented
· Demarcation of Snow fed and rain fed areas for a realistic estimate of the water availability.
vii. Socio-economic aspects
· Land details*
· Demographic profile
· Ethnographic Profile
· Economic structure
· Development profile
· Agricultural practices
· Cultural and aesthetics sites
· Infrastructure facilities: education, health and hygiene, communication network, etc.
· Impact on socio-cultural and ethnographic aspects due to dam building report.
*Report would include list of all the Project Affected Families with their names, education, land holdings, other properties, occupation, etc.
viii. Collection of data pertaining to water (physico-chemical and biological parameters), air and noise environment and likely impact during construction and post construction periods.
ix. Air Environment
· Baseline Information on ambient air quality in the project area covering aspects like SPM, RSPM, Sox, NOx
· Noise Environment
· Traffic density in the project area
x. Construction Methodology and Schedule including the tunnel driving operations, machinery and charge density, etc.
B. IMPACT PREDICTION
Air
· Changes in ambient levels and ground level concentrations due to total emissions from point, line and area sources
· Effects on soils, material, vegetation, and human health
· Impact of emissions DG sets used for construction power if any, on air environment.
Noise
· Changes in ambient levels due to noise generated from equipment, blasting operations and movement of vehicles
· Effect on fauna and human health
Water
· Changes in quality
· Sedimentation of reservoir
· Impact on fish fauna
· Impact of sewage disposal
Land
· Changes in land use and drainage pattern
· Changes in land quality including effects of waste disposal
· Riverbank and their stability
· Impact due to submergence
Biological
· Deforestation and shrinkage of animal habitat
· Impact on fauna and flora (including aquatic species if any) due to decreased flow of water
· Impact on rare and endangered species, endemic species, and migratory path/route of animals, if any
· Impact on breeding and nesting grounds, if any
· Impact on animal distribution, migration routes (if any), habitat fragmentation and destruction due to dam building activity
Socio-economic Aspects
· Impact on the local community including demographic changes
· Impact on economic status
· Impact on human health
· Impact on increased traffic
· Impact on Holy Places and Tourism
· Downstream impact on water, land & human environment due to drying up of the river in the stretch between dam site and powerhouse site.
· Positive as well as negative impacts likely to be accrued due to the project are to be listed.
I. ENVIRONMENTAL MANAGENET PLAN (EMP)
a) Catchment Area Treatment Plan
Delineation of micro-watersheds in the river catchment and mapping of critically degraded areas requiring various biological and engineering treatment measures. Identification of area for treatment based upon Remote Sensing & GIS methodology and Silt Yield Index (SYI) method of AISLUS coupled with ground survey. The prioritization of watershed for treatment based upon SYI. Spatial Information in each micro watershed should be earmarked on maps in the scale of 1:50,000. The Cat plan would be prepared with year-wise Physical and financial details.
b) Creation of Green Belt Plan around the Periphery of the Reservoir and Compensatory Afforestation Scheme in consultation with the State Forest department.
c) Biodiversity Conservation and Wild life Management Plan for conservation and preservation of endemic, rare and endangered species of flora and fauna (in consultation with the State Wildlife Department)
c) Fisheries Development plan for conservation/management of
reverine fishes.
d) Resettlement & Rehabilitation (R&R) Plan along with social/community development. R&R plan would be framed in consultation with the Project Affected Persons (PAPs), Project Authorities and the State Government. R & R Plan would be drafted according to the NPRR 2003 and the policy of State Government.
e) Muck Disposal Plan (Suitable sites for dumping of excavated material would be identified in consultation with the State Pollution Control Board and Forest Department)
f) Energy Conservation Measures
g) Dam Break Analysis & Disaster Management Plan.
h) Restoration and landscaping of working Areas: reclamation of borrow pits (quarry sites) and construction areas.
i) Public Health Delivery System including the provisions for drinking water facility for the local community.
j) Management during the Road Construction
k) Sanitation & Solid Waste Management Plan for domestic waste from colonies and labour camps, etc.
l) Water and Air Quality & Noise Environment Management during construction and post-construction periods.
m) Forest Protection Plan
n) Reservoir RIM Treatment Plan
o) Environmental Monitoring Programme (With physical & financial details covering all the aspects form EMP).
p) For such a large and high budget project, neglecting drinking water component may not be justified. Therefore, if supplying safe drinking water to the population surrounding the project area is not to be considered, a clear justification for this may be given
q) Option assessment study to show that are the option available for fulfilling the needs of the people that the project hopes to fulfill. This section should also show if and how the proposed project is the least cost option and also include reducing the transmission and distribution losses to the minimum.
r) A summary of Cost Estimate for all the plans (Cost for implementing all the Environmental Management Plans including the cost for implementing Environmental Monitoring Programme, aforesaid compensation, mitigation and management measures, etc.)
In respect of North-East, the following should be added
· Tribal area development plan as the area is predominantly tribal.
· Mitigations measures to check shifting cultivation (Zhum Cultivation) in the catchment area with provision for alternative and better agricultural practices
· In addition to Socio-economic aspects of the study area, a separate chapter on socio-cultural aspects based upon study on Ethnography of the area.
Model TOR for Hydropower Projects
Monday 26 October 2009
Power-Last Updated: August 2009
Power
http://ibef.org/economy/power.aspx
Sector structure
As the Indian economy continues to surge ahead, its power sector has been expanding concurrently to support the growth rate. The demand for power is growing exponentially and the scope of growth of this sector is immense.
India's total installed capacity of electricity generation has expanded from 105,045.96 MW at the end of 2001–02 to 150,323.41 MW at the end of June 2009. In fact, India ranks sixth globally in terms of total electricity generation.
Source-wise, thermal power plants account for an overwhelming 63.9 per cent of the total installed capacity, producing 96,044.24 MW. Hydel power plants come next with an installed capacity of 36,916.76 MW, accounting for 24.6 per cent of the total installed electricity generation capacity.
Besides thermal and hydel power, renewable energy sources contribute 8.8 per cent to the total power generation in the country producing 13,242.41 MW.
Nuclear energy makes up the balance 2.7 per cent contributing 4,120 MW.
Growth Potential
According to a report by KPMG and CII, India's energy sector will require an investment of around US$ 120 billion-US$ 150 billion over the next five years.
The government has revised its target of power capacity addition to 90,000 MW in the 11th Five-Year-Plan (2007-12), up by 11,423 MW from the earlier estimate of 78,577 MW to sustain the growth momentum of the economy.
Further, according to the Planning Commission estimates, renewable energy (RE) projects worth US$ 16.50 billion, for the generation of 15,000 MW power, would come up in the 11th Plan.
Moreover, the government has earmarked a total capital subsidy of US$ 6.88 billion for providing electricity connections and for the distribution of infrastructure to rural households.
Nuclear Power Generation
Subsequent to the Indo-US nuclear deal and India getting clearance from the Nuclear Suppliers Group (NSG), nuclear power generation is likely to provide an opportunity of US$ 10 billion in the next five years, according to a JP Morgan estimate. India will now also be partnering several countries for nuclear fuel technology projects.
* As a part of the Eleventh Five-Year-Plan, Nuclear Power Corporation of India Ltd (NPCIL) will be commencing work on 12 reactors. NPCIL will be developing a series of nuclear reactors with capacities between 1,000 MW to 1,650 MW at 5-6 sites along the country's coastline.
* GE Hitachi Nuclear Energy has tied up with NPCIL and Bharat Heavy Electricals Ltd (BHEL) for building multiple GEH-designed nuclear reactors.
* Sweden sees a market of around US$2 billion in India for back-end operations like nuclear waste management.
* NTPC Ltd and NPCIL would jointly invest around US$ 3.09 billion in the next eight years to set up nuclear power plants in the country.
* BHEL plans five joint ventures in the nuclear sector and locomotive manufacturing. The company has decided to invest US$ 204.4 million in a castings and forgings joint venture.
* French-major, Areva is planning a large scale nuclear reactor forgings facility in India with Bharat Forge and will invest over US$ 408.79 million in two shell companies.
Investments
According to an ASSOCHAM study during January-June 2008, investment announcements totalling to US$ 40.84 billion were made in the power sector.
* Reliance Power Transmission will invest nearly US$ 348.66 million in setting up a 1,500-km transmission line.
* Hyderabad-based Greenko Group plans to invest about US$ 300 million in three years for setting up about 15 clean energy projects in the country.
* Japan Bank of International Cooperation (JBIC) has agreed to lend US$ 153.1 million to L&T-MHI Boilers Private Ltd (LTMB) for manufacturing and sale of thermal power generation facilities in India.
* Private power equipment makers such as Alstom and Toshiba will set up their power manufacturing base in India in the next three-four months.
* The National Thermal Power Corporation (NTPC) has signed a Memorandum of Understanding (MoU) with the Chhattisgarh government to set up a 4000-MW power project in the state. The project cost has been estimated at US$ 4.09 billion.
* Sterlite Industries, the country’s largest private sector power producer, is planning to invest US$ 4.1 billion over the next year to create additional capacity of 4,500 MW.
* Power Finance Corporation (PFC) will raise US$ 4.75 billion by the end of this fiscal for financing various power projects.
* The Haryana government has drawn up an investment plan of US$ 377.48 million for the current financial year to strengthen the power distribution system in the state.
Government Initiatives
The government has taken several proactive steps to open the sector for the private players and realise the full potential of the country in the power sector.
* Introduction of the Electricity Act 2003 and the notification of the National Electricity and Tariff policies.
* Constitution of Independent State Electricity Regulatory Commissions in the states.
* Allowing the private sector to set up coal, gas or liquid-based thermal projects, hydel projects and wind or solar projects of any size.
* Allowing foreign equity participation up to 100 per cent in the power sector under the automatic route.
* Providing income tax holiday for a block of 10 years in the first 15 years of operation and waiver of capital goods' import duties on mega power projects (above 1,000 MW generation capacity).
* The government has also taken up some ambitious programmes like the Ultra Mega Power Projects (UMPP), Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY), Accelerated Rural Electrification Programme and the goal of Power for All by 2012 among others to rapidly increase the installed capacity.
Looking ahead
A recent study by consultancy major McKinsey estimates India's power demand to increase from the present 120 gigawatt (GW) to 315 GW–335 GW by 2017, if India continues to grow at an average of 8 per cent over the next 10 years. This would require a five- to ten-fold rise in power production, entailing investments worth US$ 600 billion over the next ten years.
To feed its rapidly growing economy, India is planning to get an additional 60,000 MW of electricity from various hydro-power projects by the end of 2025.
The government targets providing electricity for all by 2012. Under the Rajiv Gandhi Grameen Vidyutikaran Yojna, the Ministry of Power plans to electrify 120,000 villages in the current Five Year Plan (2007–12).
Exchange rate used:
1 USD = 48.43 INR (as on June 2009)
1 USD = 48.92 INR (as on July 2009)
http://ibef.org/economy/power.aspx
Sector structure
As the Indian economy continues to surge ahead, its power sector has been expanding concurrently to support the growth rate. The demand for power is growing exponentially and the scope of growth of this sector is immense.
India's total installed capacity of electricity generation has expanded from 105,045.96 MW at the end of 2001–02 to 150,323.41 MW at the end of June 2009. In fact, India ranks sixth globally in terms of total electricity generation.
Source-wise, thermal power plants account for an overwhelming 63.9 per cent of the total installed capacity, producing 96,044.24 MW. Hydel power plants come next with an installed capacity of 36,916.76 MW, accounting for 24.6 per cent of the total installed electricity generation capacity.
Besides thermal and hydel power, renewable energy sources contribute 8.8 per cent to the total power generation in the country producing 13,242.41 MW.
Nuclear energy makes up the balance 2.7 per cent contributing 4,120 MW.
Growth Potential
According to a report by KPMG and CII, India's energy sector will require an investment of around US$ 120 billion-US$ 150 billion over the next five years.
The government has revised its target of power capacity addition to 90,000 MW in the 11th Five-Year-Plan (2007-12), up by 11,423 MW from the earlier estimate of 78,577 MW to sustain the growth momentum of the economy.
Further, according to the Planning Commission estimates, renewable energy (RE) projects worth US$ 16.50 billion, for the generation of 15,000 MW power, would come up in the 11th Plan.
Moreover, the government has earmarked a total capital subsidy of US$ 6.88 billion for providing electricity connections and for the distribution of infrastructure to rural households.
Nuclear Power Generation
Subsequent to the Indo-US nuclear deal and India getting clearance from the Nuclear Suppliers Group (NSG), nuclear power generation is likely to provide an opportunity of US$ 10 billion in the next five years, according to a JP Morgan estimate. India will now also be partnering several countries for nuclear fuel technology projects.
* As a part of the Eleventh Five-Year-Plan, Nuclear Power Corporation of India Ltd (NPCIL) will be commencing work on 12 reactors. NPCIL will be developing a series of nuclear reactors with capacities between 1,000 MW to 1,650 MW at 5-6 sites along the country's coastline.
* GE Hitachi Nuclear Energy has tied up with NPCIL and Bharat Heavy Electricals Ltd (BHEL) for building multiple GEH-designed nuclear reactors.
* Sweden sees a market of around US$2 billion in India for back-end operations like nuclear waste management.
* NTPC Ltd and NPCIL would jointly invest around US$ 3.09 billion in the next eight years to set up nuclear power plants in the country.
* BHEL plans five joint ventures in the nuclear sector and locomotive manufacturing. The company has decided to invest US$ 204.4 million in a castings and forgings joint venture.
* French-major, Areva is planning a large scale nuclear reactor forgings facility in India with Bharat Forge and will invest over US$ 408.79 million in two shell companies.
Investments
According to an ASSOCHAM study during January-June 2008, investment announcements totalling to US$ 40.84 billion were made in the power sector.
* Reliance Power Transmission will invest nearly US$ 348.66 million in setting up a 1,500-km transmission line.
* Hyderabad-based Greenko Group plans to invest about US$ 300 million in three years for setting up about 15 clean energy projects in the country.
* Japan Bank of International Cooperation (JBIC) has agreed to lend US$ 153.1 million to L&T-MHI Boilers Private Ltd (LTMB) for manufacturing and sale of thermal power generation facilities in India.
* Private power equipment makers such as Alstom and Toshiba will set up their power manufacturing base in India in the next three-four months.
* The National Thermal Power Corporation (NTPC) has signed a Memorandum of Understanding (MoU) with the Chhattisgarh government to set up a 4000-MW power project in the state. The project cost has been estimated at US$ 4.09 billion.
* Sterlite Industries, the country’s largest private sector power producer, is planning to invest US$ 4.1 billion over the next year to create additional capacity of 4,500 MW.
* Power Finance Corporation (PFC) will raise US$ 4.75 billion by the end of this fiscal for financing various power projects.
* The Haryana government has drawn up an investment plan of US$ 377.48 million for the current financial year to strengthen the power distribution system in the state.
Government Initiatives
The government has taken several proactive steps to open the sector for the private players and realise the full potential of the country in the power sector.
* Introduction of the Electricity Act 2003 and the notification of the National Electricity and Tariff policies.
* Constitution of Independent State Electricity Regulatory Commissions in the states.
* Allowing the private sector to set up coal, gas or liquid-based thermal projects, hydel projects and wind or solar projects of any size.
* Allowing foreign equity participation up to 100 per cent in the power sector under the automatic route.
* Providing income tax holiday for a block of 10 years in the first 15 years of operation and waiver of capital goods' import duties on mega power projects (above 1,000 MW generation capacity).
* The government has also taken up some ambitious programmes like the Ultra Mega Power Projects (UMPP), Rajiv Gandhi Grameen Vidhyutikaran Yojana (RGGVY), Accelerated Rural Electrification Programme and the goal of Power for All by 2012 among others to rapidly increase the installed capacity.
Looking ahead
A recent study by consultancy major McKinsey estimates India's power demand to increase from the present 120 gigawatt (GW) to 315 GW–335 GW by 2017, if India continues to grow at an average of 8 per cent over the next 10 years. This would require a five- to ten-fold rise in power production, entailing investments worth US$ 600 billion over the next ten years.
To feed its rapidly growing economy, India is planning to get an additional 60,000 MW of electricity from various hydro-power projects by the end of 2025.
The government targets providing electricity for all by 2012. Under the Rajiv Gandhi Grameen Vidyutikaran Yojna, the Ministry of Power plans to electrify 120,000 villages in the current Five Year Plan (2007–12).
Exchange rate used:
1 USD = 48.43 INR (as on June 2009)
1 USD = 48.92 INR (as on July 2009)
Thursday 22 October 2009
Subansiri HE Project and NPV issue
http://www.outlookindia.com/article.aspx?236267
http://www.nhpcindia.com/English/Scripts/Hydro_Technology.aspx
=============FAQ--Hydro Technology--============
Frequently Asked Questions (FAQs) on Hydropower
Ø How much is the world’s electricity supplied by Hydroelectric Power Plants?
Ø What are the different types of Hydroelectric Power Plants?
Ø What are the major components of a Hydroelectric Power Plant?
Ø What is the classification of Hydro Projects based on Installed Capacity?
Ø How energy is generated in Hydroelectric Power Plant?
Ø Which is the largest Hydropower station in the world?
Ø How does cost of generation from Hydropower Plant compare with other sources of electricity?
Ø Why hydropower is called renewable source of energy?
Ø Which is the oldest Hydropower Plant in India?
Ø What is the estimated total Hydropower potential of India?
Ø How much of the total Hydro power potential has been exploited so far in India?
Ø What are the different types of dams?
Ø Why the unit sizes of hydro generating machines are not standardized as in case of thermal power plants?
Ø What is the record completion period of a Hydro Power Station in India of more than 100 MW?
Ø Which Hydro Station has been completed recently which has the lowest tariff rate?
Ø What are the different types of Hydro Schemes?
Ø Which is the largest Operating Hydro Power Station in the World?
Ø What are the major reasons for balancing Hydro-thermal mix?
Ø Why Hydropower stations are preferred solution for meeting peak loads in grids?
Ø What are approaches to tackle sedimentation problem of reservoir?
Ø What are the major thrust areas in the field of Environmental Conservation & Management for developing hydropower?
Ø Do Hydropower projects involve large submergence of land?
Ø Does development of Hydropower project leads to large scale displacement?
Ø Do Hydropower projects cause huge destruction of forests?
Ø What is the project Cost and how it is funded?.
Ø What is the standard debt equity ratio for financing a hydropower project?
Ø Why, in the financing of project cost, Equity component is kept lower than Debt?
Ø What are the main sources of Debt and Equity?
Ø What are the objectives of Tariff Policy of Govt. dated 6.01.2006?
Ø What is Availability Based Tariff (ABT)?
Ø What are the components of Bulk Electricity tariff of Hydro Plants?
Ø How much Return on Equity is allowed to Hydro Generating Stations?
Ø What are the ‘pass through’ components in the tariff of Hydro Generating Stations?
Ø What is Net Present Value (NPV)?
Ø What is Internal Rate of Return (IRR)?
Ø What are the benefits of hydropower projects?
Frequently Asked Questions (FAQs) on Hydropower
How much is the world’s electricity supplied by Hydroelectric Power Plants?
± 2700 TWH is generated every year. Hydropower supplies at least 50% of electricity production in 66 countries and at least 90% in 24 countries.
What are the different types of turbines used in Hydroelectric Power Plants?
There are basically four types of power plants: -
1. Pelton turbines - It is impulse turbine which is normally used for more than 250 m of water head.
2. Francis - This is a reaction turbine which is used for head varying between 2.5m to 450m
3. Kaplan – It is propeller type of plant with adjustable blades which are used for heads varying between 1.5 m to 70 m
4. Propeller – It is used for head between 1.5 to 30 m
5. Tubular – This is used for low and medium height projects. Normally for head less than 15 m.
What are the major components of a Hydroelectric Power Plant?
The major components of a Hydroelectric Power Plant are:-
1. Dam/Barrage
Head works i.e. power intake, head regulator and desilting chambers etc.
2. Head race tunnels/channels
3. Surge shaft/surge chambers
4. Pressure shaft/Penstock
5. Underground and surface power house
6. Tailrace channel or tailrace tunnel.
What is the classification of Hydro Projects based on Installed Capacity?
Micro: upto 100 KW
Mini: 101KW to 2 MW
Small: 2 MW to 25 MW
Mega: Hydro projects with installed capacity >= 500 MW
Thermal Projects with installed capacity >=1500 MW
How energy is generated in Hydroelectric Power Plant?
A hydroelectric power plant consists of a high dam that is built across a large river to create a reservoir, and a station where the process of energy conversion to electricity takes place.
The first step in the generation of energy in a hydropower plant is the collection of run-off of seasonal rain and snow in lakes, streams and rivers, during the hydrological cycle. The run-off flows to dams downstream. The water falls through a dam, into the hydropower plant and turns a large wheel called a turbine. The turbine converts the energy of falling water into mechanical energy to drive the generator After this process has taken place electricity is transferred to the communities through transmission lines and the water is released back into the lakes, streams or rivers. This is entirely not harmful, because no pollutants are added to the water while it flows through the hydropower plant.
Which is the largest Hydropower station in the world?
Three Gorges project in China on Yang-Yang river is the largest power station in the world having installed capacity of around 22,500 MW.
How does cost of generation from Hydropower Plant compare with other sources of electricity?
The hydro power generation is highly capital-intensive mode of electricity generation but being renewable source of energy with no consumables involved; there is very little recurring cost and hence no high long term expenditure. It is cheaper as compared to electricity generated from coal and gas fired plants. It also reduces the financial losses due to frequency fluctuations and it is more reliable as it is inflation free due to not usage of fossil fuel.
Why hydropower is called renewable source of energy?
Hydropower is called renewable source of energy because it uses and not consumes the water for generation of electricity, and the hydropower leaves this vital resource available for other uses.
Which is the oldest Hydropower Plant in India?
The oldest Hydropower power plant is in Darjeeling District in West Bengal. It’s installed capacity is 130KW and was commissioned in the year 1897.
What is the estimated total Hydropower potential of India?
The hydro power potential of India is around 1,48,701 MW and at 60% load factor, it can meet the demand of around 84,000 MW.
How much of the total Hydro power potential has been exploited so far in India?
Around 19.9% of Hydropower potential has been exploited in India.
What are the different types of dams?
Different types of dams are conventional concrete dam, Roller compacted concrete dam, rock fill dam, Concrete Faced Rock fill Dam(CFRD), Earth fill dam, arch dam, barrages etc.
Why the unit sizes of hydro generating machines are not standardized as in case of thermal power plants?
Since the size of hydro generating machines are based on availability of water in river and the water head available at a particular project site, the size of the machines keeps varying from location to location and river to river. The sizes are also based on logistics and variation of water in river during the year.
What is the record completion period of a Hydro Power Station in India of more than 100MW ?
Chamera – II HE Project (300 MW) in Distt. Chamba, HP. has been completed in a record period is Four & Half years .
Which Hydro Station has been completed recently which has the lowest tariff rate?
Teesta HE Project-V (510 MW) in the State of Sikkim was completed in April, 2008. The sale rate of this project is @Rs.1.53 / Kwh(approx.) to beneficiary states of Eastern Region as per the petition filed in Central Electricity Regulatory Commission.(For FY 2008-09).
What are the different types of Hydro Schemes?
Different types of Hydro Schemes are :
i. Purely Run - of - River Power Station.
ii. Storage type Power Station.
iii. Run – of – River Stations with Pondage.
Which is the largest Operating Hydro Power Station in the World?
The world’s Largest Hydro Electric Power Station is ITAIPU with installed capacity of 12600 MW and a reliable output of 75,000 MU in a year. It is located at the Border of Brazil and Paraguay.
What are the major reasons for balancing Hydro-thermal mix?
Seasonal load curves of our regional grids match with the pattern of hydro power generation. During summer/monsoon season when the generation at hydro power plants is high, the load factor of the system is high due to heavy agricultural load. During winter, the thermal stations operating at base load and hydro stations working as peak load stations will take care of weather beating loads. Thus the operational needs of hydro & thermal stations are complimentary and the balanced mix helps in optimal utilization of the capacity.
Why Hydropower stations are preferred solution for meeting peak loads in grids?
Due to its unique capabilities of quick starting and closing, hydropower stations are found to be economical choice to meet peak load in the grid.
What are approaches to tackle sedimentation problem of reservoir?
The following are some approaches to tackle sedimentation problem of reservoir:-
* Catchment Area Treatment (CAT) for reduction of silt load includes afforestation of the catchment area and Environmental works such as construction of check dams.
* Effective desilting arrangements for prevention of silt.
* Silt resistant equipments of withstanding the silt.
* Effective operation of the reservoir to minimize silt deposition.
What are the effects of sedimentation in Hydropower stations?
The major effects of reservoir sedimentation are :
* It reduces the active storage capacity, which may reduce the capability of the reservoir to deliver the benefits in course of time.
* It makes the flood management in the reservoir more difficult.
* Damages to turbines and other under water parts due to abrasive action of silt.
What are the major thrust areas in the field of Environmental Conservation & Management for developing hydropower?
Following safeguards/management plans are implemented at various NHPC projects to ensure development of hydropower in an environmentally sustainable manner:
*
Compensatory Afforestation in lieu of forest land diverted for the project.
*
Catchment Area Treatment (CAT) to minimise erosion in the catchment of the reservoir, thereby reducing siltation in the reservoir.
*
Resettlement & Rehabilitation of Project Affected Population.
*
Rejuvenation of Dumping Sites and Quarry Sites, using engineering and biological measures.
*
Reservoir Rim Treatment plan to stabilise reservoir periphery.
*
Conservation measures, to conserve flora and fauna native to the ecosystem of the area.
*
Subsidized Fuel Distribution to worker population and project affected population to minimise fuel demands on the adjacent forests.
*
Health Management Plan for the worker population and affected population to maintain optimum health standards.
*
Fishery Management by construction of fish ladders, wherever possible, to enable migration of fishes and by promoting reservoir fisheries.
*
Green Belt Plan to make the surroundings of project construction areas green.
*
Dam Break Analysis and Disaster Management Plan for downstream areas vulnerable to flooding in case of Dam breach.
Do Hydropower projects involve large submergence of land?
Submergence of land, thereby loss of flora and fauna and large scale displacement, due to the hydropower projects is sometimes exaggerated. The following table shows that project catering only to hydro power needs, cause little submergence. A sample of following 13 projects contributing 6351 MW of power required/ will require submergence of only 4820 ha of land i.e. the area of submergence per MW is only 0.76 ha.
Sl. No
Name of the project
State
Capacity
(in MW)
Submergence area
( in ha)
1
Chamera-I
H.P.
540
975
2
Chamera-II
H.P.
300
25
3
Chamera-III
H.P
231
29.90
4
Parbati-II
H.P.
800
17.07
5
Parbati-III
H.P
520
21.61
6
Tanakpur
Uttarakhand
120
140
7
Dhauliganga-I
Uttarakhand
280
29
8
Rangit
Sikkim
60
13
9
Teesta-V
Sikkim
510
67.75
10
Uri
J&K
480
NIL
11
Dul Hasti
J&K
390
21.2
12
Sewa-II
J&K
120
44.62
13
Subansiri Lower
Arunachal Pradesh
2000
3436
Total
6351
4820.15 ~ 4820
Does development of Hydropower project leads to large scale displacement?
This is not always true. The details of the affected families in some of the NHPC’s commissioned Power Stations and under- construction / proposed projects are given below:
Sr. No.
Name of the project
Installed capacity (MW)
No. of families displaced
No. of
families partially affected
Total number of affected families
1
Uri Power Station, J&K
480
77
169
246
2
Uri-II HE project, J&K
240
46
85
131
3
Nimoo- Bazgo H.E. Project, Leh, J&K
45
NIL
19
19
4
Chutak H. E. Project, Kargil, J&K
44
2
129
131
5
Sewa-II HE Project, J&K
120
68
155
223
6
Tanakpur Power Station, UK
120
60
218
278
7
Chamera Power Station Stage I, H.P
540
1174
380
1554
8
Chamera Power Station Stage II, H.P
300
30
63
93
9
Chamera HE Project Stage-III, H.P.
231
NIL
384
384
10
Parbati-II HEP
800
37
402
439
11
Parbati-III HEP
520
59
279
338
12
Dhauliganga Power Station, UK
280
36
545
581
13
Rangit Power Station, Sikkim
60
19
26
45
14
Teesta H.E. Project (Stage V), Sikkim
510
60
199
259
15
Subansiri Lower Project, Ar.Pradesh
2000
77
NIL
77
16
Teesta Low Dam H.E. Project Stage-III, WB
132
9
27
36
17
Teesta Low Dam Stage-IV H.E. Project, WB
160
11
NIL
11
Total
6582
1765
3080
4845
From above table it can be seen that in 17 representative projects, number of displaced families per MW is only 0.26, whereas, number of affected families per MW is 0.74.
Do Hydropower projects cause huge destruction of forests?
By virtue of being located in hilly areas, where forest cover is comparatively better than plain areas, diversion of forest land is sometimes unavoidable. However, NHPC aims at minimum utilization of forests. Compensatory Afforestation is mandatory in accordance with Forest (Conservation) Act, 1980, which has to be fulfilled along with other conditions imposed by MOEF while according forest clearance to a project. Forest land diverted for a project may be a notified forest land, however, this land may include river bed and degraded forests also. The actual forest cover in such type of land may be quite low. Inspite of the fact, NHPC undertakes compensatory afforestation either on equal area of non forest land or on degraded forest land having double the area of forest land diverted.
Massive afforestation has been undertaken at the commissioned as well as ongoing projects of NHPC. In eight commissioned projects of NHPC viz. Tanakpur, Chamera-I, Chamera-II, Uri, Rangit, Dhauliganga, Dul Hasti, Teesta-V and six under construction projects viz., Parbati-II, Parbati-III, TLDP-III, TLDP-IV, Chamera-III, Sewa-II afforestation has been undertaken over an area of 4333 ha. of degraded/non forest land, in lieu of diversion of 2734.44 ha of forest land required. In these 14 projects, against 101781 affected trees, NHPC has planted more than 93 lakh trees under Compensatory Afforestation.
What is the project Cost and how it is funded?.
Total capital expenditure incurred for commissioning of a project is project cost and it is mainly funded by the equity and Loan.
What is the standard debt equity ratio for financing a hydropower project?
Standard Debt Equity Ratio is 70:30
Why, in the financing of project cost, Equity component is kept lower than Debt?
Since cost of equity is higher than cost of debt, so equity portion is kept low.
What are the main sources of Debt and Equity?
Generally main source of Debt is loan from Domestic Financial Institutions, Government of India and foreign Loan and Equity is sourced from Government of India and through IPO.
What are the objectives of Tariff Policy of Govt. dated 6.01.2006?
The objectives of the new Tariff Policy are :-
* To ensure availability of electricity to consumers at reasonable & competitive rates.
* To ensure financial viability of the sector & attract investments
* To promote transparency, consistency & predictability in regulatory approaches across jurisdictions & minimize perceptions of regulatory risks.
* Promote competition, efficiency in operations & improvement in quality of supply.
What is Availability Based Tariff (ABT)?
ABT is a mechanism for recovery of fixed charges of a generating station or transmission licensee through the commercial means of incentives or disincentives.
- It is a performance-based tariff for the supply of electricity by generators owned and controlled by the central government or those which involved in selling power in more than one state.
- It is also a new system of scheduling and despatch, which requires both generators and beneficiaries to commit to day-ahead schedules.
- It is a system of rewards and penalties seeking to enforce day ahead pre-committed schedules, though variations are permitted if notified One and on half hours in advance.
- It facilitates grid discipline.
- It helps in trading of capacity and energy and facilitates the merit order despatch.
It has three parts
- A fixed charge (FC) payable every month by each beneficiary to the generator for making capacity available for use. The FC is not the same for each beneficiary. It varies with the share of a beneficiary in a generators capacity. The FC, payable by each beneficiary, will also vary with the level of availability achieved by a generator.
- An energy charge (defined as per the prevailing operational cost norms) per kwh of energy supplied as per a pre-committed schedule of supply drawn upon a daily basis.
- A charge for unscheduled interchange (UI charge) for the supply and consumption of energy in variation from the pre-committed daily schedule. This charge varies inversely with the system frequency prevailing at the time of supply/ consumption.
What are the components of Bulk Electricity tariff of Hydro Plants?
Hydro tariff (for central generating company or the generating company which sells power to more than one state) means the Annual Fixed Charges (AFC) in respect of each Hydro Generating Station which is determined by the Central Electricity Regulatory Commission. The components of AFC are :
1. Interest on loan capital
2. Depreciation.
3. Return on equity.
4. Operation and maintenance expenses.
5. Interest on working capital.
The AFC is recovered in the form of capacity charges (50% of AFC) and energy charges (50% of AFC).
How much Return on Equity is allowed to Hydro Generating Stations?
Return on Equity is allowed on pre tax basis at the base rate of 15.5%.
Rate of pre tax return on equity = 15.5
(1-t)
t = applicable tax rate.
What are the ‘pass through’ components in the tariff of Hydro Generating Stations?
Only Foreign Exchange Rate Variations (FERV) as pass through component in tariff w.e.f 01.04.2009.
What is Net Present Value (NPV)?
NPV is present value of future cash flows. NPV compares value of money today to the value of that money in the future taking inflation & returns into account. If the NPV of a project is positive then the project is financially viable. If NPV of a project is negative the project is not viable.
What is Internal Rate of Return (IRR)?
It is interest rate that makes NPV of all cash flows of a project equal to Zero. Essentially this is the return that a project would earn if it invest money in itself rather than elsewhere. This is the rate which equates discounted cash outflows flows & discounted cash inflows. Higher the IRR of the project better is the financial return on the Investment.
What are the benefits of hydropower projects?
Hydropower is a renewable, economic, non polluting and environmentally benign source of energy. It saves scarce fossil fuel resources of the country, which are non renewable. Hydropower projects have certain distinctive advantages over other sources of electricity generation, as discussed below:
a) Technical Benefits
Hydropower projects are known to have much longer life and provide cheaper electricity as there is no fuel cost and the recurring cost involved in generation, operation and maintenance is lower than that in case of other sources of energy.
b) Environmental Benefits
· Uses renewable and pollution free source i.e water
· Increase in Agriculture Productivity through development of irrigation and multipurpose schemes, having generation of electricity as one of the objectives, wherever possible and feasible.
· Avoided Green House Gas (GHG) emissions from equivalent thermal and other fuel based power projects.
· Involve large scale afforestation activities under various schemes like Compensatory Afforestation, Catchment Area Treatment, Green Belt Development, Voluntary Afforestation etc. which ultimately improve the environmental quality of the project area.
· Flood Mitigation through large storage dams.
· Source of Drinking Water
c) Social Benefits
Hydro projects are a boon to the society and the population in and around the projects. With enhanced employment opportunities, increased earnings, enriched life style and improved standard of living, the people in these localities experience an economic and social upliftment. Reservoir area is an ideal place for recreation and source of eco-tourism promotion in the area. The reservoirs are also used for promoting pisciculture. There are other direct benefits accruing from hydro projects and dams such as increased water for improved irrigation, and drinking water to villages and people living in and around the project area.
http://www.nhpcindia.com/English/Scripts/Hydro_Technology.aspx
=============FAQ--Hydro Technology--============
Frequently Asked Questions (FAQs) on Hydropower
Ø How much is the world’s electricity supplied by Hydroelectric Power Plants?
Ø What are the different types of Hydroelectric Power Plants?
Ø What are the major components of a Hydroelectric Power Plant?
Ø What is the classification of Hydro Projects based on Installed Capacity?
Ø How energy is generated in Hydroelectric Power Plant?
Ø Which is the largest Hydropower station in the world?
Ø How does cost of generation from Hydropower Plant compare with other sources of electricity?
Ø Why hydropower is called renewable source of energy?
Ø Which is the oldest Hydropower Plant in India?
Ø What is the estimated total Hydropower potential of India?
Ø How much of the total Hydro power potential has been exploited so far in India?
Ø What are the different types of dams?
Ø Why the unit sizes of hydro generating machines are not standardized as in case of thermal power plants?
Ø What is the record completion period of a Hydro Power Station in India of more than 100 MW?
Ø Which Hydro Station has been completed recently which has the lowest tariff rate?
Ø What are the different types of Hydro Schemes?
Ø Which is the largest Operating Hydro Power Station in the World?
Ø What are the major reasons for balancing Hydro-thermal mix?
Ø Why Hydropower stations are preferred solution for meeting peak loads in grids?
Ø What are approaches to tackle sedimentation problem of reservoir?
Ø What are the major thrust areas in the field of Environmental Conservation & Management for developing hydropower?
Ø Do Hydropower projects involve large submergence of land?
Ø Does development of Hydropower project leads to large scale displacement?
Ø Do Hydropower projects cause huge destruction of forests?
Ø What is the project Cost and how it is funded?.
Ø What is the standard debt equity ratio for financing a hydropower project?
Ø Why, in the financing of project cost, Equity component is kept lower than Debt?
Ø What are the main sources of Debt and Equity?
Ø What are the objectives of Tariff Policy of Govt. dated 6.01.2006?
Ø What is Availability Based Tariff (ABT)?
Ø What are the components of Bulk Electricity tariff of Hydro Plants?
Ø How much Return on Equity is allowed to Hydro Generating Stations?
Ø What are the ‘pass through’ components in the tariff of Hydro Generating Stations?
Ø What is Net Present Value (NPV)?
Ø What is Internal Rate of Return (IRR)?
Ø What are the benefits of hydropower projects?
Frequently Asked Questions (FAQs) on Hydropower
How much is the world’s electricity supplied by Hydroelectric Power Plants?
± 2700 TWH is generated every year. Hydropower supplies at least 50% of electricity production in 66 countries and at least 90% in 24 countries.
What are the different types of turbines used in Hydroelectric Power Plants?
There are basically four types of power plants: -
1. Pelton turbines - It is impulse turbine which is normally used for more than 250 m of water head.
2. Francis - This is a reaction turbine which is used for head varying between 2.5m to 450m
3. Kaplan – It is propeller type of plant with adjustable blades which are used for heads varying between 1.5 m to 70 m
4. Propeller – It is used for head between 1.5 to 30 m
5. Tubular – This is used for low and medium height projects. Normally for head less than 15 m.
What are the major components of a Hydroelectric Power Plant?
The major components of a Hydroelectric Power Plant are:-
1. Dam/Barrage
Head works i.e. power intake, head regulator and desilting chambers etc.
2. Head race tunnels/channels
3. Surge shaft/surge chambers
4. Pressure shaft/Penstock
5. Underground and surface power house
6. Tailrace channel or tailrace tunnel.
What is the classification of Hydro Projects based on Installed Capacity?
Micro: upto 100 KW
Mini: 101KW to 2 MW
Small: 2 MW to 25 MW
Mega: Hydro projects with installed capacity >= 500 MW
Thermal Projects with installed capacity >=1500 MW
How energy is generated in Hydroelectric Power Plant?
A hydroelectric power plant consists of a high dam that is built across a large river to create a reservoir, and a station where the process of energy conversion to electricity takes place.
The first step in the generation of energy in a hydropower plant is the collection of run-off of seasonal rain and snow in lakes, streams and rivers, during the hydrological cycle. The run-off flows to dams downstream. The water falls through a dam, into the hydropower plant and turns a large wheel called a turbine. The turbine converts the energy of falling water into mechanical energy to drive the generator After this process has taken place electricity is transferred to the communities through transmission lines and the water is released back into the lakes, streams or rivers. This is entirely not harmful, because no pollutants are added to the water while it flows through the hydropower plant.
Which is the largest Hydropower station in the world?
Three Gorges project in China on Yang-Yang river is the largest power station in the world having installed capacity of around 22,500 MW.
How does cost of generation from Hydropower Plant compare with other sources of electricity?
The hydro power generation is highly capital-intensive mode of electricity generation but being renewable source of energy with no consumables involved; there is very little recurring cost and hence no high long term expenditure. It is cheaper as compared to electricity generated from coal and gas fired plants. It also reduces the financial losses due to frequency fluctuations and it is more reliable as it is inflation free due to not usage of fossil fuel.
Why hydropower is called renewable source of energy?
Hydropower is called renewable source of energy because it uses and not consumes the water for generation of electricity, and the hydropower leaves this vital resource available for other uses.
Which is the oldest Hydropower Plant in India?
The oldest Hydropower power plant is in Darjeeling District in West Bengal. It’s installed capacity is 130KW and was commissioned in the year 1897.
What is the estimated total Hydropower potential of India?
The hydro power potential of India is around 1,48,701 MW and at 60% load factor, it can meet the demand of around 84,000 MW.
How much of the total Hydro power potential has been exploited so far in India?
Around 19.9% of Hydropower potential has been exploited in India.
What are the different types of dams?
Different types of dams are conventional concrete dam, Roller compacted concrete dam, rock fill dam, Concrete Faced Rock fill Dam(CFRD), Earth fill dam, arch dam, barrages etc.
Why the unit sizes of hydro generating machines are not standardized as in case of thermal power plants?
Since the size of hydro generating machines are based on availability of water in river and the water head available at a particular project site, the size of the machines keeps varying from location to location and river to river. The sizes are also based on logistics and variation of water in river during the year.
What is the record completion period of a Hydro Power Station in India of more than 100MW ?
Chamera – II HE Project (300 MW) in Distt. Chamba, HP. has been completed in a record period is Four & Half years .
Which Hydro Station has been completed recently which has the lowest tariff rate?
Teesta HE Project-V (510 MW) in the State of Sikkim was completed in April, 2008. The sale rate of this project is @Rs.1.53 / Kwh(approx.) to beneficiary states of Eastern Region as per the petition filed in Central Electricity Regulatory Commission.(For FY 2008-09).
What are the different types of Hydro Schemes?
Different types of Hydro Schemes are :
i. Purely Run - of - River Power Station.
ii. Storage type Power Station.
iii. Run – of – River Stations with Pondage.
Which is the largest Operating Hydro Power Station in the World?
The world’s Largest Hydro Electric Power Station is ITAIPU with installed capacity of 12600 MW and a reliable output of 75,000 MU in a year. It is located at the Border of Brazil and Paraguay.
What are the major reasons for balancing Hydro-thermal mix?
Seasonal load curves of our regional grids match with the pattern of hydro power generation. During summer/monsoon season when the generation at hydro power plants is high, the load factor of the system is high due to heavy agricultural load. During winter, the thermal stations operating at base load and hydro stations working as peak load stations will take care of weather beating loads. Thus the operational needs of hydro & thermal stations are complimentary and the balanced mix helps in optimal utilization of the capacity.
Why Hydropower stations are preferred solution for meeting peak loads in grids?
Due to its unique capabilities of quick starting and closing, hydropower stations are found to be economical choice to meet peak load in the grid.
What are approaches to tackle sedimentation problem of reservoir?
The following are some approaches to tackle sedimentation problem of reservoir:-
* Catchment Area Treatment (CAT) for reduction of silt load includes afforestation of the catchment area and Environmental works such as construction of check dams.
* Effective desilting arrangements for prevention of silt.
* Silt resistant equipments of withstanding the silt.
* Effective operation of the reservoir to minimize silt deposition.
What are the effects of sedimentation in Hydropower stations?
The major effects of reservoir sedimentation are :
* It reduces the active storage capacity, which may reduce the capability of the reservoir to deliver the benefits in course of time.
* It makes the flood management in the reservoir more difficult.
* Damages to turbines and other under water parts due to abrasive action of silt.
What are the major thrust areas in the field of Environmental Conservation & Management for developing hydropower?
Following safeguards/management plans are implemented at various NHPC projects to ensure development of hydropower in an environmentally sustainable manner:
*
Compensatory Afforestation in lieu of forest land diverted for the project.
*
Catchment Area Treatment (CAT) to minimise erosion in the catchment of the reservoir, thereby reducing siltation in the reservoir.
*
Resettlement & Rehabilitation of Project Affected Population.
*
Rejuvenation of Dumping Sites and Quarry Sites, using engineering and biological measures.
*
Reservoir Rim Treatment plan to stabilise reservoir periphery.
*
Conservation measures, to conserve flora and fauna native to the ecosystem of the area.
*
Subsidized Fuel Distribution to worker population and project affected population to minimise fuel demands on the adjacent forests.
*
Health Management Plan for the worker population and affected population to maintain optimum health standards.
*
Fishery Management by construction of fish ladders, wherever possible, to enable migration of fishes and by promoting reservoir fisheries.
*
Green Belt Plan to make the surroundings of project construction areas green.
*
Dam Break Analysis and Disaster Management Plan for downstream areas vulnerable to flooding in case of Dam breach.
Do Hydropower projects involve large submergence of land?
Submergence of land, thereby loss of flora and fauna and large scale displacement, due to the hydropower projects is sometimes exaggerated. The following table shows that project catering only to hydro power needs, cause little submergence. A sample of following 13 projects contributing 6351 MW of power required/ will require submergence of only 4820 ha of land i.e. the area of submergence per MW is only 0.76 ha.
Sl. No
Name of the project
State
Capacity
(in MW)
Submergence area
( in ha)
1
Chamera-I
H.P.
540
975
2
Chamera-II
H.P.
300
25
3
Chamera-III
H.P
231
29.90
4
Parbati-II
H.P.
800
17.07
5
Parbati-III
H.P
520
21.61
6
Tanakpur
Uttarakhand
120
140
7
Dhauliganga-I
Uttarakhand
280
29
8
Rangit
Sikkim
60
13
9
Teesta-V
Sikkim
510
67.75
10
Uri
J&K
480
NIL
11
Dul Hasti
J&K
390
21.2
12
Sewa-II
J&K
120
44.62
13
Subansiri Lower
Arunachal Pradesh
2000
3436
Total
6351
4820.15 ~ 4820
Does development of Hydropower project leads to large scale displacement?
This is not always true. The details of the affected families in some of the NHPC’s commissioned Power Stations and under- construction / proposed projects are given below:
Sr. No.
Name of the project
Installed capacity (MW)
No. of families displaced
No. of
families partially affected
Total number of affected families
1
Uri Power Station, J&K
480
77
169
246
2
Uri-II HE project, J&K
240
46
85
131
3
Nimoo- Bazgo H.E. Project, Leh, J&K
45
NIL
19
19
4
Chutak H. E. Project, Kargil, J&K
44
2
129
131
5
Sewa-II HE Project, J&K
120
68
155
223
6
Tanakpur Power Station, UK
120
60
218
278
7
Chamera Power Station Stage I, H.P
540
1174
380
1554
8
Chamera Power Station Stage II, H.P
300
30
63
93
9
Chamera HE Project Stage-III, H.P.
231
NIL
384
384
10
Parbati-II HEP
800
37
402
439
11
Parbati-III HEP
520
59
279
338
12
Dhauliganga Power Station, UK
280
36
545
581
13
Rangit Power Station, Sikkim
60
19
26
45
14
Teesta H.E. Project (Stage V), Sikkim
510
60
199
259
15
Subansiri Lower Project, Ar.Pradesh
2000
77
NIL
77
16
Teesta Low Dam H.E. Project Stage-III, WB
132
9
27
36
17
Teesta Low Dam Stage-IV H.E. Project, WB
160
11
NIL
11
Total
6582
1765
3080
4845
From above table it can be seen that in 17 representative projects, number of displaced families per MW is only 0.26, whereas, number of affected families per MW is 0.74.
Do Hydropower projects cause huge destruction of forests?
By virtue of being located in hilly areas, where forest cover is comparatively better than plain areas, diversion of forest land is sometimes unavoidable. However, NHPC aims at minimum utilization of forests. Compensatory Afforestation is mandatory in accordance with Forest (Conservation) Act, 1980, which has to be fulfilled along with other conditions imposed by MOEF while according forest clearance to a project. Forest land diverted for a project may be a notified forest land, however, this land may include river bed and degraded forests also. The actual forest cover in such type of land may be quite low. Inspite of the fact, NHPC undertakes compensatory afforestation either on equal area of non forest land or on degraded forest land having double the area of forest land diverted.
Massive afforestation has been undertaken at the commissioned as well as ongoing projects of NHPC. In eight commissioned projects of NHPC viz. Tanakpur, Chamera-I, Chamera-II, Uri, Rangit, Dhauliganga, Dul Hasti, Teesta-V and six under construction projects viz., Parbati-II, Parbati-III, TLDP-III, TLDP-IV, Chamera-III, Sewa-II afforestation has been undertaken over an area of 4333 ha. of degraded/non forest land, in lieu of diversion of 2734.44 ha of forest land required. In these 14 projects, against 101781 affected trees, NHPC has planted more than 93 lakh trees under Compensatory Afforestation.
What is the project Cost and how it is funded?.
Total capital expenditure incurred for commissioning of a project is project cost and it is mainly funded by the equity and Loan.
What is the standard debt equity ratio for financing a hydropower project?
Standard Debt Equity Ratio is 70:30
Why, in the financing of project cost, Equity component is kept lower than Debt?
Since cost of equity is higher than cost of debt, so equity portion is kept low.
What are the main sources of Debt and Equity?
Generally main source of Debt is loan from Domestic Financial Institutions, Government of India and foreign Loan and Equity is sourced from Government of India and through IPO.
What are the objectives of Tariff Policy of Govt. dated 6.01.2006?
The objectives of the new Tariff Policy are :-
* To ensure availability of electricity to consumers at reasonable & competitive rates.
* To ensure financial viability of the sector & attract investments
* To promote transparency, consistency & predictability in regulatory approaches across jurisdictions & minimize perceptions of regulatory risks.
* Promote competition, efficiency in operations & improvement in quality of supply.
What is Availability Based Tariff (ABT)?
ABT is a mechanism for recovery of fixed charges of a generating station or transmission licensee through the commercial means of incentives or disincentives.
- It is a performance-based tariff for the supply of electricity by generators owned and controlled by the central government or those which involved in selling power in more than one state.
- It is also a new system of scheduling and despatch, which requires both generators and beneficiaries to commit to day-ahead schedules.
- It is a system of rewards and penalties seeking to enforce day ahead pre-committed schedules, though variations are permitted if notified One and on half hours in advance.
- It facilitates grid discipline.
- It helps in trading of capacity and energy and facilitates the merit order despatch.
It has three parts
- A fixed charge (FC) payable every month by each beneficiary to the generator for making capacity available for use. The FC is not the same for each beneficiary. It varies with the share of a beneficiary in a generators capacity. The FC, payable by each beneficiary, will also vary with the level of availability achieved by a generator.
- An energy charge (defined as per the prevailing operational cost norms) per kwh of energy supplied as per a pre-committed schedule of supply drawn upon a daily basis.
- A charge for unscheduled interchange (UI charge) for the supply and consumption of energy in variation from the pre-committed daily schedule. This charge varies inversely with the system frequency prevailing at the time of supply/ consumption.
What are the components of Bulk Electricity tariff of Hydro Plants?
Hydro tariff (for central generating company or the generating company which sells power to more than one state) means the Annual Fixed Charges (AFC) in respect of each Hydro Generating Station which is determined by the Central Electricity Regulatory Commission. The components of AFC are :
1. Interest on loan capital
2. Depreciation.
3. Return on equity.
4. Operation and maintenance expenses.
5. Interest on working capital.
The AFC is recovered in the form of capacity charges (50% of AFC) and energy charges (50% of AFC).
How much Return on Equity is allowed to Hydro Generating Stations?
Return on Equity is allowed on pre tax basis at the base rate of 15.5%.
Rate of pre tax return on equity = 15.5
(1-t)
t = applicable tax rate.
What are the ‘pass through’ components in the tariff of Hydro Generating Stations?
Only Foreign Exchange Rate Variations (FERV) as pass through component in tariff w.e.f 01.04.2009.
What is Net Present Value (NPV)?
NPV is present value of future cash flows. NPV compares value of money today to the value of that money in the future taking inflation & returns into account. If the NPV of a project is positive then the project is financially viable. If NPV of a project is negative the project is not viable.
What is Internal Rate of Return (IRR)?
It is interest rate that makes NPV of all cash flows of a project equal to Zero. Essentially this is the return that a project would earn if it invest money in itself rather than elsewhere. This is the rate which equates discounted cash outflows flows & discounted cash inflows. Higher the IRR of the project better is the financial return on the Investment.
What are the benefits of hydropower projects?
Hydropower is a renewable, economic, non polluting and environmentally benign source of energy. It saves scarce fossil fuel resources of the country, which are non renewable. Hydropower projects have certain distinctive advantages over other sources of electricity generation, as discussed below:
a) Technical Benefits
Hydropower projects are known to have much longer life and provide cheaper electricity as there is no fuel cost and the recurring cost involved in generation, operation and maintenance is lower than that in case of other sources of energy.
b) Environmental Benefits
· Uses renewable and pollution free source i.e water
· Increase in Agriculture Productivity through development of irrigation and multipurpose schemes, having generation of electricity as one of the objectives, wherever possible and feasible.
· Avoided Green House Gas (GHG) emissions from equivalent thermal and other fuel based power projects.
· Involve large scale afforestation activities under various schemes like Compensatory Afforestation, Catchment Area Treatment, Green Belt Development, Voluntary Afforestation etc. which ultimately improve the environmental quality of the project area.
· Flood Mitigation through large storage dams.
· Source of Drinking Water
c) Social Benefits
Hydro projects are a boon to the society and the population in and around the projects. With enhanced employment opportunities, increased earnings, enriched life style and improved standard of living, the people in these localities experience an economic and social upliftment. Reservoir area is an ideal place for recreation and source of eco-tourism promotion in the area. The reservoirs are also used for promoting pisciculture. There are other direct benefits accruing from hydro projects and dams such as increased water for improved irrigation, and drinking water to villages and people living in and around the project area.
Wednesday 21 October 2009
Monday 19 October 2009
Sunday 18 October 2009
Good article on the current Status of EIA in India and the tussle betwen two Ministries
Good article on the current Status of EIA in India and the tussle betwen two Ministries
Power ministry gets a jolt | News | Down To Earth magazine
Environment ministry realizes it can reject shoddy EIAs
the Union ministries for power and environment have locked horns over new hydroelectric and thermal power projects. In a meeting held in the first week of September, officials of the power ministry demanded speedy clearances for their projects. Environment ministry officials refused this, saying the projects will not be cleared if their environmental impact assessments (eias ) are faulty...................
Power ministry gets a jolt | News | Down To Earth magazine
Environment ministry realizes it can reject shoddy EIAs
the Union ministries for power and environment have locked horns over new hydroelectric and thermal power projects. In a meeting held in the first week of September, officials of the power ministry demanded speedy clearances for their projects. Environment ministry officials refused this, saying the projects will not be cleared if their environmental impact assessments (eias ) are faulty...................
Friday 16 October 2009
A survey of India: : Creaking, groaning | The Economist
A survey of India: : Creaking, groaning | The Economist: "A special report on India
Creaking, groaning
Dec 11th 2008
From The Economist print edition
Infrastructure is India’s biggest handicap
TO KNOW why 1,000 Indian children die of diarrhoeal sickness every day, take a wary stroll along the Ganges in Varanasi. As it enters the city, Hinduism’s sacred river contains 60,000 faecal coliform bacteria per 100 millilitres, 120 times more than is considered safe for bathing. Four miles downstream, with inputs from 24 gushing sewers and 60,000 pilgrim-bathers, the concentration is 3,000 times over the safety limit. In places, the Ganges becomes black and septic. Corpses, of semi-cremated adults or enshrouded babies, drift slowly by.".....................................
Creaking, groaning
Dec 11th 2008
From The Economist print edition
Infrastructure is India’s biggest handicap
TO KNOW why 1,000 Indian children die of diarrhoeal sickness every day, take a wary stroll along the Ganges in Varanasi. As it enters the city, Hinduism’s sacred river contains 60,000 faecal coliform bacteria per 100 millilitres, 120 times more than is considered safe for bathing. Four miles downstream, with inputs from 24 gushing sewers and 60,000 pilgrim-bathers, the concentration is 3,000 times over the safety limit. In places, the Ganges becomes black and septic. Corpses, of semi-cremated adults or enshrouded babies, drift slowly by.".....................................
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