Empowering Delhi: TOWMCL’s Pathbreaking 17 MW Waste To Energy Project Proposal

The Timarpur Okhla Waste Management Company Ltd. (TOWMCL) has filed a petition seeking approval for the project-specific tariff for their 17 MW integrated Waste to Energy (WtE) power plant project. This plant is based on Refuse Derived Fuel (RDF) and is set to be implemented by TOWMCL. The company aims to generate and sell electricity from this project and has requested several approvals and directions from the commission.

Firstly, TOWMCL seeks the commission’s approval to determine the project-specific tariff for the 17 MW Waste to Energy Project. The company has proposed a capital cost of ₹399 Crore for the project. However, they have revised this to ₹361.81 Crore, emphasizing that they have not approached the government for any viability gap funding or grants. The normative capital cost for such a project is ₹22 Crore/MW, which makes the cost of a new project approximately ₹374 Crore. The commission has considered the revised cost of ₹361.81 Crore, as it includes shared infrastructure with the existing WtE project.

The debt-to-equity ratio for this project is proposed to be 70:30, aligning with regulatory guidelines. The interest rate on the loan has been set at 10.50%, which is slightly lower than the normative rate of 10.65%. The operations and maintenance (O&M) expenses are considered to be 6% of the capital cost, with an annual escalation of 5.25%. The depreciation rate follows the standard regulations for renewable energy sources.

TOWMCL has also requested that the power generated from the 17 MW project be allocated among the distribution licensees in Delhi. They have asked the commission to direct these licensees to enter into Power Purchase Agreements (PPAs) for the generation and supply of this project. The petition emphasizes the mandatory procurement of power from all Waste to Energy plants in the state, as per the National Tariff Policy (NTP) 2016.

The company has provided a detailed breakdown of the waste management and energy generation process. The Municipal Solid Waste (MSW) Rules 2016 mandate the segregation of waste at source, composting of biodegradable waste, and sending only non-recyclable material to landfills. The TOWMCL plant will process 1,000 tons of MSW per day, segregating it into inert material for landfills, recyclable materials, compost, and RDF for use in boilers. The existing segregation facility has been upgraded to handle mixed wet waste, and the MSW pit has been extended for biological drying.

For the expansion project, additional MSW will be processed, and a parallel system of power plant equipment will be installed. This includes a new 17 MW generation capacity and augmented storage and handling facilities for MSW. The plant aims for a high Plant Load Factor (PLF) and has proposed specific configurations to ensure efficient operations.

TOWMCL has highlighted the legal and regulatory framework supporting their petition. The Electricity Act, 2003, and the National Electricity Policy promote the generation of electricity from renewable sources, including waste to energy. The commission is tasked with determining tariffs that reflect the cost of supply while encouraging efficiency and safeguarding consumer interests. The Hon’ble Supreme Court of India has also recognized the importance of revised tariff policies for such projects.

Overall, TOWMCL’s petition underscores the environmental and economic benefits of their Waste to Energy project. By converting municipal solid waste into electricity, the project not only addresses waste management challenges but also contributes to the renewable energy capacity of Delhi. The company seeks the commission’s approval to proceed with its plans, ensuring regulatory compliance and financial viability.

Please view the document here for more details.