The project activity involves development, designing, engineering, procurement, financing, construction, ownership, operation and maintenance of a 219.067 MW combined cycle power generation facility for generation and supply of electricity using Natural Gas/ R-LNG & HSD as fuels. Electricity generated by the project activity will be fed into the Gujarat state electricity grid, which forms part of the Western region electricity grid of India. The project activity has been implemented by Gujarat State Electricity Corporation Limited (hereafter referred to as GSECL), a wholly owned subsidiary of Gujarat Urja Vikas Nigam Limited (GUVNL), erstwhile Gujarat Electricity Board (GEB). GUVNL is owned by the Government of Gujarat.

GSECL has been incorporated as a public limited company under the Indian Companies, 1956. GSECL was set up in August 1993 with its registered office at Vadodara GSECL is wholly owned by GUVNL, which in turn has been promoted by the Government of Gujarat as part of the efforts undertaken for restructuring of the state electricity sector. The basic objectives of GSECL are to initiate a process of restructuring of Power Sector and to mobilize resource from the market for the purpose of adding to the generating capacity of the State. GSECL has been awarded the status of an Independent Power Producer (IPP) by the Government of Gujarat under Section 43 A of the Electricity (Supply) Act, 1948 and approval as a generating Company to undertake new Power Projects.

The project activity involves setting up of a 219.067 MW Natural Gas based combined cycle power plant at Dhuvaran, Gujarat for generation and supply of electricity to the Gujarat state electricity grid. The project activity is being implemented in phases, phase I of the project activity involving capacity outlay of 106.617 MW was completed in 2003 at the existing premises of GSECL, by the side of GSECL’s Dhuvaran Thermal Power Station. Simultaneously, GSECL is installing a new 112.45 MW Natural Gas/ Re-Gasified Liquefied Natural Gas (NG/RLNG) based CCPP Extension Unit-2 (Phase-II) in the existing premises of GSECL at Dhuvaran.

The CCPP in Phase I comprises of a gas turbine, HRSG and a Steam turbine. Commercial operations of the plant were commenced in 2004, the plant is connected to the GETCO grid. In this phase, the natural gas consumption is of the order of 500,000 m3 per day at an average GCV of 9805 Kcal/m3.

Phase-II, involving a Natural Gas / R-LNG based 112.45 MW combined cycle power plant is connected to the Gujarat Electricity Transmission Company (“GETCO”) grid is expected to be commissioned in August 2007. This phase also is located in the Dhuvaran complex. The natural gas consumption will be 550,000 m3 per day at an average GCV of 9880 Kcal/ m3.

The CCPP includes three blocks comprising gas turbine, steam turbine and gas heat recovery facility. Phase-I of the project has adopted Advance class Gas Turbines (6FA) and Phase-II involves installation of Advance class Gas Turbines (6FA+e). These have been supplemented by other technological elements. The electrical power generated from Phase-I CCPP is being evacuated through the existing 132 KV Gujarat Electricity Transmission Company (GETCO) network linking Dhuvaran Thermal Power Plant (DTPP) with GETCO’s 132 KV system. For this purpose the CCPP has its own 132 KV switchyard with a duplicate bus arrangement and 650 KV (peak) insulation level and 40 KA (rms) short circuit level. The existing 132 KV double circuit line connecting DTPP to Limbdi village and passing close to the CCPP is looped in & looped out (LILO) at CCPP 132 KV switchyard. For 112.45 MW CCPP, the electrical power generated is being evacuated through the existing 132 KV GETCO network linking DTPP with GETCO’s 132 KV system. Here also, the CCPP has its own 132 KV switchyard with a duplicate bus arrangement and 650 KV (peak) insulation level and 40 KA (rms) short circuit level. The existing 132 KV double circuit line connecting DTPP to Dhandhuka village and passing close to the CCPP is looped in & looped out (LILO) at CCPP 132 KV switchyard. Project’s contribution to sustainable development:

The following paragraphs give details on how the project activity contributes towards the four indicators of sustainable development of India:

Environmental Aspects

The project activity involves utilization of less carbon-intensive fuel as compared to the overall mix of fuels being used in the western regional grid of India to which the power plant is connected. The power plant uses state-of the-art systems for pollution control. The project activity will contribute to the reduction of GHG emissions and also generation of effluents and air emissions viz., SOx and SPM and avoid solid waste (fly ash) generation that would have otherwise occurred with higher GHG intensive fossil fuels like coal and lignite.

Social Aspects

Socio-economic development requires energy for improved living standards, enhanced productivity and also as an input to a wide range of other economic activities. The energy requirements for sustainable development, industrial development, air pollution / atmosphere and climate change are closely interlinked. Energy is essential to poverty reduction and economic development, including industrial development. At the same time, fossil fuel combustion for energy, industry and transport is a major source of air pollution and greenhouse gas emissions. Refer Annex-8 attached to this document for details to socio-economic development around the proposed CDM project activity.

The transition from traditional energy sources to modern energy sources is associated with a variety of social benefits, including improving the health, well-being and income generating opportunities of women and facilitating access to employment, education and social services in both urban and rural areas. Extending access to affordable, cleaner energy is thus integral to the process of social and economic development.

Due to its location the project activity contributes towards poverty alleviation by generating both direct and indirect employment for the local community. During the construction activity of the project local people were employed. Due to better technology usage the project activity has helped in adding to the knowledge and skill base of the power plant operators.

Economic Aspects

The project activity contributes to sustainable development of the region, not only through reduced emissions contributions, but also through various initiatives undertaken by the project authority. These include the local employment during project implementation and operational phases and extending the medical care facility to the employees. It also lead to the local employment for the resources with low and medium skilled services often required in the project Authority.

Technological Aspects

Phase-I of the project has adopted Advance class Gas Turbines (6FA) and Phase-II involves installation of Advance class Gas Turbines (6FA+e) for the first time in India. These have been supplemented by other technological elements for which the O&M expenses are expected to be higher than the industry prescribed norms by almost 16%1. GSECL, considering various facts, has chosen the Advance class Gas Turbine Fame 6FA+e, in 1+1+1 configuration having higher fuel efficiency, even though, India is lacking in required skill/technology for operating & maintaining such Advance class Gas Turbine.