On December 20, 2016, GGGI in collaboration with Idam Infrastructure Advisory Private Limited (Idam Infra) and CII Sohrabji Godrej Green Business Centre (CII GBC), organized a Capacity Building Workshop to share the experience and learnings from the development of a tariff framework to promote Waste Heat Recovery (WHR) in the Indian state of Karnataka. This workshop was part of GGGI’s ongoing project to design a preferential tariff for WHR based electricity plants in the cement industry.
The workshop, held in Bengaluru, was attended by eminent members of industries/associations, technology suppliers, and financial institutions. The workshop aimed to facilitate knowledge sharing from GGGI’s initiative to promote WHR and to engage and solicit inputs from various stakeholders on the relevant policy, statutory, and regulatory environment in the country. Detailed discussions were carried out on the process and the approach to determine a preferential tariff for WHR based electricity plants in the cement industry. The workshop deliberated on technical and operational aspects as well as the issues and challenges faced by the cement industry while implementing and operating WHR plants. The participants shared their experiences and expressed interest and willingness in replicating this exercise in their respective states.
GGGI gave a detailed presentation providing an overview of the project while CII GBC and Idam Infra shared their technical and regulatory experiences from the initiative. The workshop also saw presentations from technology suppliers and representatives from cement industry who have installed WHR in their plants.
According to the Green Growth Strategy developed by GGGI, the industrial sector in the state of Karnataka is a dominant electricity consumer, with cement, iron, and steel plants accounting for almost 40% of the total industrial electricity demand. The Green Growth Strategy identified WHR as an important energy efficiency measure in the industrial sector in Karnataka. As per GGGI’s estimates, there is an immediate potential for deploying over 80 MW of WHR capacity in Karnataka’s cement industries adding to $100 million investment in the state, as well as a long-term potential of 500 MW (by 2030).
In this context, GGGI worked with the cement industry in the state to facilitate the determination of a suitable tariff, as well as the development of a tariff petition draft which, if implemented, can facilitate long-term Power Purchase Agreements (PPAs) with utilities. This can help the cement industry to secure project finance from banks and other financial institutions for installing WHR systems in their plants. The state electricity regulator, Karnataka Electricity Regulatory Commission (KERC), which hears and adjudicates such petitions, is fully committed to support the initiative.