Adani Power Limited, the power sector arm of India's leading integrated infrastructure conglomerate the Adnai Group, has commissioned a 40 MW Solar PV Plant on 6th January 2012 in the Kutch district of Gujarat.
April 30, 2012
Imported Coal Transportation getting preference by Indian Railways…
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Power India found that the movement of coal to thermal power plants including movement of imported coal is accorded preference by the Indian Railways over similar cargo moving to other customers. The Railways have been successful in meeting the demand for movement of imported coal to thermal power plants.
As per Central Electricity Authority (CEA) reports, coal imports to thermal power plants which were at a level of 3.6 million tonnes in the year 2001-02 have increased to a level 45.549 million tonnes in 2011-12, out of which approximate 14.262 million tonnes were moved to shore based power plants which did not require movement by rail. Out of the balance 31.287 million tonnes coal which was imported, the railways evacuated 30.897 million tonnes and only 0.390 million tonnes were available at the ports.
The capacity of the Railways is adequate to meet the demand for imported coal barring seasonal bunching of imported coal at ports. This has been made possible by a proper planning process wherein a logistics plan linking various ports to various plants has been formulated.
Adequate measures are being taken by Railways to ease evacuation/transportation of coal on Indian Railway Network. A total of 3077.46 kilometres of new lines, doubling and gauge conversion at cost of Rs. 17988.82 crore have been sanctioned and are in various stages of progress for primarily coal bearing routes. This excludes projects being undertaken on deposit term basis from coal companies.
In addition, the Eastern and Western Dedicated Freight Corridors which are slated to come up by the terminal year of the 12th Plan will primarily cater to both domestic and imported coal movement on the Eastern sector and imported coal movement on the Western sector. In addition, the Railways are substantially increasing their fleet of rolling stock to meet coal movement. In the year 2011-12, 11683 number of coal loading wagons were inducted into Indian Railway. Moreover, the wagons being inducted are cleared for higher pay load and speed.
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Power India – A popular blog on Indian Power Sector
Wind Farms can increase the land surface temperature; a study by University of Albany…
Power India found that according to a study done by the researches at University of Albany in affiliation with USA Research Associations the large scale wind farms can increase the surface temperature by around 0.72 °C per decade.
The wind industry in the United States has experienced a remarkably rapid expansion of capacity in recent years and this fast growth is expected to continue in the future. While converting wind’s kinetic energy into electricity, wind turbines modify surface–atmosphere exchanges and the transfer of energy, momentum, mass and moisture within the atmosphere.
These changes, if spatially large enough, may have noticeable impacts on local to regional weather and climate.
The report has presented observational evidence for such impacts based on analyses of satellite data for the period of 2003–2011 over a region in west-central Texas, where four of the world’s largest wind farms are located.
The results show a significant warming trend of up to 0.72 °C per decade, particularly at night-time, over wind farms relative to nearby non-wind-farm regions. This can be attributed to wind farms as its spatial pattern and magnitude couples very well with the geographic distribution of wind turbines.
MORE RESEARCH NEEDED
But the researchers said more studies were needed, at different locations and for longer periods, before any firm conclusions could be drawn.
Scientists say the world's average temperature has warmed by about 0.8 degrees Celsius since 1900, and nearly 0.2 degrees per decade since 1979. Efforts to cut carbon dioxide and other greenhouse gas emissions are not seen as sufficient to stop the planet heating up beyond 2 degrees C this century, a threshold scientists say risks an unstable climate in which weather extremes are common.
The Texas study found the temperature around wind farms rose more at night, compared with nearby regions. This was possibly because while the earth usually cools after the sun sets, bringing the air temperature down, the turbulence produced by the farms kept the ground in their area warm.
Previous research in 2010 by other US scientists found wind farms could make the nights warmer and days cooler in their immediate vicinity, but those effects could be minimised by changing turbines' rotor design or by building the farms in areas with high natural turbulence.
That research was based on evidence from two meteorological towers over a six-week period.
Although the warming effect shown in that study and the latest research is local, and small compared to overall land surface temperature change, the findings could lead to more in-depth studies.
The authors of the study released on Sunday said: "Given the present installed (wind farm) capacity and the projected installation across the world, this study draws attention to an important issue that requires further investigation."
"We need to better understand the system with observations and better describe and model the complex processes involved to predict how wind farms may affect future weather and climate."
Commenting on the study, Steven Sherwood, co-director of the Climate Change Research Centre at the University of New South Wales in Australia, said: "Daytime temperatures do not appear to be affected. This makes sense, since at night the ground becomes much cooler than the air just a few hundred metres above the surface. The wind farms generate gentle turbulence near the ground that causes these to mix together, thus the ground doesn't get quite as cool."
Research in the United States may cast a shadow over the long-term sustainability of wind power.
The complete report can be downloaded from the following link.
http://www.nature.com/nclimate/journal/vaop/ncurrent/full/nclimate1505.html
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Stock updates of various Power Companies–April 30, 2012…
Alstom T&D has gained 2.87 percent to Rs 162 per share after the company informed BSE that it has won a 400 kV substation contract worth 840 MINR from Chhattisgarh State Power Transmission.
RPower gains 6% after govt reprieve on coal use
Reliance Power has jumped 6 percent to Rs 107 per share after the company got a reprieve on Saturday as a ministerial panel under finance minister Pranab Mukherjee upheld a decision that allowed the company to use excess coal from Sasan power project’s mines to fuel its Chitrangi generation plant.
BHEL plunges as Rajasthan scraps Rs 12k cr tender
Reports have also stated that the Rajasthan government has scrapped tenders worth Rs 12000 crore that were bagged by Bharat Heavy Electricals Ltd (BHEL) more than a year. The stock is down 2 percent today at Rs 223.20. Reports stated that Rajasthan Rajya Vidyut Utpadan Nigam Ltd has scrapped EPC (engineering, procurement and construction) tenders for the upcoming supercritical units of the Suratgarh and Chhabra thermal power stations.
Other Updates
Meanwhile, the results to be announced today include Ajmera Realty, Alstom T&D, Bank of India, Dabur India, Exide Industries, Godrej Consumer, JSW Energy, Procter & Gamble, Punj Lloyd, Titan Inds, Vijaya Bank and United Phosphorus, Hinduja Ventures.But the mixed earnings announcement kept the markets in tizzy and turned the trade volatile, while ICICI Bank surprised the street with its better than expected numbers. However, at the same time, Hindustan Construction (HCC) came up with a dismal number, reporting greater than expected net loss for the final quarter.
The power sector is likely to be in focus today as Tata Power has independently secured a favourable legal opinion over the legality of a government decision allowing Reliance Power to divert surplus coal from the captive mines associated with its Sasan ultra mega power project.
Tata Power is up 1.1 percent while Reliance Power is up 6 percent today.
Courtesy: First Post
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Tamil Nadu proposed a policy to encourage renewable energy and energy efficiency in the state…
Power India found that, the Tamil Nadu Government has drawn up plants to encourage energy efficient systems using solar and other forms of energy in the coming months and issued proposals that include provision of subsidised solar pumps, generation based incentive scheme for domestic solar roof tops, besides presenting awards to those who use solar power lights effectively.
According to the policy note following incentives have been proposed:
- "Generation Based Incentive” (GBI) for domestic solar roof-tops for a total maximum capacity of 50 MW during this financial year.
- Subsidised Solar Pumps (86 per cent subsidy-- 56 per cent from Ministry of Agriculture and 30 per cent from the Ministry of New and Renewable Energy) on a pilot basis to select applicants for agriculture service connections.
- The Government has also planned to recognise usage of solar roof-tops by presenting the Chief Minister's Awards which would be given annually to different categories of consumers generating maximum solar energy. A 60kW roof-top solar power plant at the Electricity Board office headquarters here would also be set up for promoting solar energy.
- Distribution of one crore CFL lamps at a subsidised cost of Rs 15 per bulb to achieve a savings of around 250MW at a cost of Rs 85 crore.
- Mandatory usage of energy efficient agricultural pump-sets (having a minimum three star label) for new connections. "The Government is also planning to set up a demonstration project by erecting star-rated energy efficient pump sets in a select feeder on pilot basis".
For this year, under Chief Minister's Solar powered Green Houses Scheme, the government would add 60,000 solar energy powered green houses at a cost of Rs 180 crore. This scheme was the first such in India with a grid back-up.
On the proposal to energise solar energy powered street lights in 2012-13, the policy note said 20,000 more street lights will be solar powered at a cost of Rs 50 crore.
According to the Vision Tamil Nadu 2023 document released by Chief Minister Jayalalithaa in March, the government expects Rs 4.50 lakh crore investments to be made in the power sector. "The major share of the investments amounting to Rs 2.80 lakh crore will be utilised to augment power generation capacity in the State", the document said.
According to energy department sources, the present installed capacity of the State is 10,364.5 MW. The average availability of power is 8,500 MW. Demand ranges from 11,500 MW-12,500 MW, leaving a shortage of 3,000 MW to 4000 MW.
As part of tapping other energy sources, the State government has planned to increase capacity of wind power to 5000 MW at a rate of 1000 MW per year in the next five years.
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Power India – A popular blog on Indian Power Sector
IEEE formed a Standards Interest Group in Bangalore and shared views on grid situation of the country…
Power India found that IEEE Standards Association (IEEE-SA) the world’s largest technical professional association, has formed IEEE Standards Interest Group (SIG) in Bangalore for India.
The IEEE SIG provides a platform for the Indian technical community to participate in global standards development including those for Smart grid, conducts outreach programs and Smart grid workshops across various cities in India deliberating the role of standards and challenges in the Indian context.
Mr. Srikanth Chandrasekaran, Chairman, IEEE SIG for India shared his views on smart grid and the benefits that his organisation and bring to the country.
Query: Considering the huge T&D losses, how significant a role can IEEE Standards Interest Group (SIG) play in helping the country?
IEEE Standards Interest Group (SIG) is working to partner with government and industry bodies in the country and engaging India’s professional technical communities, while leveraging IEEE-SA’s expertise and experience in global standards development to accelerate the process of establishing standards relevant to the Indian smart grid market.
IEEE-SA has launched key standards and guidelines such as the IEEE 2030 TM Smart Grid Interoperability Guide, the first such standard that aids interoperability of energy, information and communications technologies; IEEE 1701 TM IEEE 1702TM, and IEEE 1703TMadvanced Smart Metering Standards; IEEE 1547.4 TM, the first guide for implementation of Microgrids; and the IEEE 1901 TM standard for Broadband over Power Line.
Query: Comment on the awareness in the country about smart grid?
India is on the right path. The government of India’s R-APDRP is a good first step for successful implementation of the smart grid in the country. The program is designed to take three to five years to implement across parts of India. However, successful and complete implementation of the smart grid is not going to be an easy task as the Indian power sector poses a number of barriers.
The utility industry is capital-intensive but has been suffering losses due to theft and subsidisation. IEEE-SA is working to partner with government and industry bodies in the country and engaging India’s professional technical community, while leveraging its expertise and experience in global standards development to accelerate the process of establishing standards relevant to the Indian Smart grid market.
Utilities and distribution companies have limited experience in communication technologies, needed to manage critical components of the Smart grid. Also, if India’s utilities are to take an active part in designing and implementing IT and Smart grid projects, they must acquire the skills required to take over operation and maintenance.
The most overlooked component of Smart grid implementation is the education of consumers and what this means to them. It is important to build awareness to create an understanding of Smart grids, the associated benefits and the potential implementation issues.
For complete and successful implementation of the Smart grid, India needs a national vision and a flexible plan. The country needs to develop policies and regulations to create a receptive environment for Smart grid by encouraging innovation, establishing standards for interoperability and allowing market-oriented solutions.
Query: With its diversity and traditional practices, how can the smart grid help India in curtailing losses?
Smart grid technology can help us reduce the electricity transmission and distribution losses and electricity theft by 5 to 10 per cent annually.
Without Smart grid, India will not be able to keep pace with the growing needs of its cornerstone industries and will fail to create an environment for growth of its high technological and telecommunications sectors.
Smart grid implementation is not going to be an easy task since the Indian power sector poses a number of barriers such as minimise transmission and distribution losses, power theft, inadequate grid infrastructure and low metering efficiency.
The power industry has reached a stagnation point, and needs a complete switch to the next generation, that is automation. Moreover, as the technology is considered premium, its implementation in the Indian industry has been a bit slower than expected.
In spite of the monetary issues, power utilities need to begin with basic automation systems, eventually upgrading to advanced systems.
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Power India – A popular blog on Indian Power Sector
Around 33 power plants have registered PLF of more than 90% during March 2012…
Power India found that around 33 Thermal Power Stations (TPSs) with an aggregate installed capacity of around 33,332.5 MW across the country have registered a Plant Load Factor (PLF) of more that 90% during the month of March 2012.
Out of these 33 TPSs around 12 TPSs are run by Central Generating Stations (CGSs), 12 are run by State Generating Stations (SGSs) and remaining 9 are run by Private Companies.
The data of PLFs of some of the TPSs as gathered from Central Electricity Authority (CEA):
- Dahanu TPS (500 MW) - 104.18% PLF
- OP Jindal TPS (1,000 MW) - 102.78% PLF
- Unchahar TPS (1,050 MW) - 101.18% PLF
- Bhilai TPS (500 MW) - 100.18% PLF
- Talcher STPS (3,000 MW) - 99.84% PLF
- Ramagundem STPS (2,600 MW) - 98.85% PLF
- Rihand STPS (2,000 MW) - 98.83% PLF
- Kota TPS (1,240 MW) - 98.72% PLF
- Korba-West TPS (840 MW) - 98.76% PLF
- Rayalaseema TPS (1,050 MW) - 94.74% PLF
- Vindhyachal STPS (3,260 MW) - 94.32% PLF
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Power sector (Transmission Segment) Performance during FY 2011-12; gains momentum in Q4 to make up for lost ground…
Power India found that the country has managed to surpass the target for new transmission lines by 0.22% during the year 2011-12. A total of 19,847 ckm transmission lines have been laid against the target of 19,792 ckm.
- While the country missed its targets for the first three quarters of the fiscal, the sector`s good performance during the fourth quarter helped overcome the shortfall and exceed the yearly target.
- Only 10,995 ckm, of the proposed 13,392 ckm, of lines were laid till the end of Q3, whereas 8,852 ckm lines were added in the last quarter alone against a target of 6,400 ckm.
- In terms of the achievement rate, the state sector fared much worse than its counterparts and fell short of its target by 16%. The central and private sectors exceeded their targets for the year by approximately 15% and 7.5%, respectively.
- The shortfall in the state sector occurred primarily due to severe right of way (RoW) problems, delay in grant of forest clearances and filing of cases in civil courts by affected farmers.
- Five states, namely -- Uttar Pradesh, Chhatisgarh, Karnataka, Tamil Nadu and Kerala -- account for the majority of the shortfall.
- Overall, 5,528 ckm of 220 KV lines, 10,931 ckm of 400 kV lines and 1,408 ckm of 765 kV lines were laid during the year.
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Power India – A popular blog on Indian Power Sector
Power Sector (Generation Segment) Performance during FY 2011-12; electricity generation surpass targets…
Power India found that the Power Sector staged a turnaround of sorts during FY 2011-12 with exceeding the capacity addition targets set by Power Ministry by nearly 17%.
This is a welcome reversal of trend in the power sector. It witnessed only 60% target achievement during FY 2010-11.
- The capacity addition target for last year was pegged at 17,601 MW, which included 5,725 MW by the central sector, 4,266 MW by the states and 7,610 MW by the private sector.
- With regard to the actual achievement, totaling 20,501.7 MW, the sector-wise break-up works out to be 4,770 MW for the center, 3,761.2 MW for the state sector and 11,970.5 MW for the private sector.
- During the 11th five year plan, a total capacity of 54,964 MW, or 260% of the capacity added during the entire 10th plan, has been achieved in the country.
- Further, 102.51% of the electricity generation target of 855 billion units (BU) was met during the year 2011-12. The electricity generated in the fourth quarter was 222.41 BU, which was 6.029 BU greater than the estimate.
- The sector-wise break-up of the power generated during the last fiscal was 369.31 BU for the centre, 367.57 BU for the state sector and 139.56 BU for the private sector.
Source:CEA
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Power India – A popular blog on Indian Power Sector
Stock updates of Power Companies to bet upon…
Power India provide a comprehensive update on stocks of various Power Companies. Investors are better off paring their exposure to the stocks of private power generation companies due to limited upside.
Despite the additional capacity planned, revenue and profits might not improve significantly if coal production and supply is not ramped up by Coal India.
Many of the private players have issues with their upcoming or current projects. While JSW Energy has high proportion of un-tied power which is dependent on merchant tariffs, Adani Power's reliance on imported coal for existing projects is a negative.
Similarly, Tata Power's Mundra project and Reliance Power's Krishnapatnam project are locked at fixed tariffs which does not allow them to pass on the rise in fuel costs.
Reliance Power's 2,400-MW Samalkot project is yet to get gas allocation and with falling gas output in the KG D6 basin, the payback period may be pushed further. Adani Power also has bid for fixed tariffs for most projects and is exposed to fuel risk.
Lanco Infratech is trading at less than its book value due to legal problems abroad, thanks to its coal asset acquisition last year. The coal assets, which require sizeable investments, may also be a drag on its profitability.
In the Twelfth Plan, almost 38,548 MW or 60 per cent of the coal-based projects to be commissioned are expected to rely on coal supply from Coal India.
Another 6,292 MW of capacity is expected to be fuelled by coal imports. These projects may have to operate at sub-optimal load factors if Coal India doesn't supply the agreed quantity, or due to increased cost of imported coal.
Adani Power, Tata Power and Reliance Power are trading at price-to-book values of 2.34 times, 1.92 times and 1.6 times, respectively.
This is not significantly lower that the historical book-value range of 2 to 3 times for these companies. But given the clouded outlook, these valuations leave little room for stock price appreciation.
Bet on Regulated players
Investors who want to take exposure to power sector can go in for regulated players in the generation space, such as NTPC.
It is the largest player in the power generation space with capacity exceeding 35,000 MW. The company expects to add another 31,000 MW by 2017.
A cost-plus model that allows it to pass on most expenses, fuel security and high internal accruals, make it a good bet in the utility space.
The company has signed power purchase agreements (PPAs) for 1,00,000 MW amounting to three times the current installed capacity that secures its revenue stream.
Playing the power sector theme indirectly can also be considered.
Power Grid Corporation, can be a big beneficiary of the capacity additions planned in the upcoming years. And the company does not have to deal with fuel supply risk.
Over the next five years, the company is expected to invest as much as Rs 1 lakh crore in rolling out transmission corridors and strengthening its grids.
PGCIL has already awarded contracts worth Rs 55,000 crore towards this, lending visibility to upcoming projects.
Power Finance Corporation is another company which will benefit from the Twelfth Plan capacity addition.
The total fund requirement from PFC, which predominantly finances generation assets, is estimated at Rs 1.78 lakh crore.
Even if there are slippages in terms of capacity additions, the fund requirement is far higher than the current loan book of PFC which is outstanding at Rs 1.18 lakh crore.
Trading at slightly higher than book value, the stock looks reasonably attractive.
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Power India – A popular blog on Indian Power Sector
Source: Business Line
India achieved 89% target of National Solar Mission Phase I with commissioning of 125 MW Solar Projects out of total 140 MW…
According to NTPC Vidyut Vyapar Nigam (NVVN), which executes the bidding and trades power with the developers, it could have been 100% if hiccups like allegations against Lanco and delays by some other developers had not taken place.
The NVVN had signed power purchase agreements (PPA) with 28 solar power developers for 140-MW solar photo voltaic (PV) projects in January 2011, out of which 125-MW of capacity stands commissioned currently.
According to Mr. Tarun Kapoor, Joint Secretary, Ministry of New & Renewable Energy;
"The progress so far is very good as most of the projects are commissioned. The delayed projects have been given one month extension with a part of their bank guarantee encashed,"
For solar thermal sector, power purchase agreements were signed for 27 projects for a capacity of 470 MW in batch 1. They would be commissioned by May 2013.
One of the major participating companies in the mission, Lanco Infratech recently faced allegations irregularities such as creating front companies. The investigative report on the matter will soon be presented, officials said.
The solar PV projects under batch 2 of phase 1, with the selected capacity of 340 MW, signed the PPA in January this year and will commission by February 2013. These projects are highly awaited as this round of bidding saw some big names in the solar energy market quoting tariffs as low as Rs 7.49/unit.
"The projects under batch 2 are under construction and we are hopeful that they will start commissioning in time," said Kapoor. The ministry also hopes to achieve grid parity in next five years. Mission statement has set a target to achieve 20,000 MW of solar generated power by 2020.
The total installed capacity of solar generated power in the country stands at 503.9 MW so far. The total investment, as estimated by the ministry is about Rs 6,000 crore.
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Power India – A popular blog on Indian Power Sector
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