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November 19, 2013

AP Distribution company gearing up to implement net metering policy for rooftop solar projects...

 

AP Discom to implement Net Metering Policy

The Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL) is gearing up to implement net metering policy. It is about the mechanism of injecting solar power into the grid by rooftop and small photovoltaic plants and arriving at the net value of power.

After the single-phase consumers were also recently allowed by the Energy Department to avail net metering facility, the ball is now in the court of the power distribution companies (Discoms) to encourage and facilitate tapping of solar energy through rooftop plants and small SPV plants .

Only three-phase consumers were till last month permitted to install bi-directional meters which measure the net value of power. But the condition has since been relaxed allowing single-phase consumers with rooftop systems up to 3 KW capacity also to go for net metering.

The onus to motivate consumers to tap solar energy and export any surplus power to the grid now lies on the Discoms and the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP).

Bi-directional meters

On their part, the Discoms are mandated to certify and inspect the solar rooftop systems along with the metering devices and other paraphernalia at regular intervals while the NREDCAP facilitates payment of subsidy to the consumers registered with it. Installation of high accuracy bi-directional meters which can be tracked on a real-time basis and devices capable of injecting solar power into the grid smoothly without causing fluctuations in the grid frequency are the main things that the APTRANSCO and Discoms have to do.

Disturbances

Disturbances (harmonics) to the grid are common as direct current (solar energy in this case) is converted to alternate current. Insulating the grid from such variations is called ‘island protection’.

The Divisional Engineers (Metering & Protection) play an important role in integrating the solar plants with the grid and they have already been equipped with the necessary skills.

The procedures to be followed in the wake of issuance of the fresh G.O on net metering on October 25 are being circulated to the officers and staff concerned.

An APSPDCL official told The Hindu that the solar power generators and Discoms are under the obligation to comply with all the rules and regulations framed under the Electricity Act, 2003, provisions of tariffs and other general terms and conditions with the approvals of the A.P Electricity Regulatory Commission.

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Bharat Light and Power collaborates with IBM for smart solutions to improve generation from renewable energy projects...

 

BLP joins with IBM for renewable energy solutions

Bharat Light and Power (BLP), a leading renewable energy producer in India, has formed a strategic engagement with IBM (NYSE: IBM) to drive business growth, enhance revenue and increase operational efficiency. In this 10-year collaboration, BLP will use IBM’s SoftLayer cloud capabilities, built on open standards, as well as IBM analytics and mobile solutions to increase its power generation capacity.


According to industry estimates, approximately 400 million people in India do not have access to electricity. At the same time, India’s energy infrastructure is highly strained, with an ever increasing demand for energy. To sustain its growth trajectory, India needs to meet its energy demands in an environmentally sustainable manner.


“The Indian power sector has doubled its capacity in the last 10 years and is projected to add another 100GW in next five years. With the issues facing fossil-based fuels, a good share of this growth will come from renewable energy sources. The scope of investments for renewables is estimated to be $10-12 billion in next five years making it ripe for global investments in India,” said Mr. Tejpreet S Chopra, president & CEO of BLP.


BLP is one of the largest clean energy generation companies in India.  It aims to address the sustainable energy challenge by increasing its renewable energy generation capacity to one giga watt (GW) over the next few years. The company focuses on wind, solar, biomass and hydro technologies for power generation and is exploring other advanced technologies such as energy storage, and smart grid to better integrate renewable energy to the grid.  BLP also uses its years of expertise in building, owning and operating power plants around the globe to offer pre-development and post commissioning services to wind farm developers, operators, owners, investors and lenders.


The integration of disparate systems across the enterprise is critical so all users have access to one version of the truth and a fuller view of the most comprehensive data, regardless of their department or role. Cloud computing provides the fastest, most efficient delivery of IT resources for integration without the need for extensive start-up or capital budgeting.


IBM will work with BLP to help the company manage, and effectively use the vast amount of data generated by the power generation sources. With efficient and predictive analysis of data, energy producers can better manage their resources, take necessary precautionary measures, and improve overall productivity. IBM will deploy its SoftLayer cloud infrastructure as a service to centrally monitor and manage BLP’s existing and future generation plants as well as store and manage the data on cloud.

 
IBM and BLP's big data analytics capabilities will help gather valuable insights from the data generated, which will ensure that BLP has an integrated view of its operations and is equipped to take pro-active measures. Using IBM’s mobile technology the company will be able to provide all the information, analyzed on the cloud platform, to its ground staff on their handsets and alert them well in advance. This will enable BLP to build smarter operations with higher efficiency and greater utilization.


“The focus of power generation globally, and especially in India, in the next five years is going to be about operational efficiency and productivity enhancements. This requires an intelligent and innovative collaboration between the power and the IT sector.  BLP has ambitious growth plans for providing this service and we needed a strategic partner who understands, and helps us realize, our vision,” said Balki G. Iyer, chief development officer, BLP. “A significant factor in selecting IBM was its rich global experience in the renewable energy sector and scalable technology capabilities that suits our requirement.”


The solution is expected to significantly improve BLP’s Plant Load Factor (PLF), which is essentially the generation efficiency of the installed capacity. IBM will also bring its subject matter experts to help BLP take effective business decisions and make efficient planning, based on the data analysis.


“By making clean energy widely available and affordable, BLP is solving a very important challenge for India and we are excited about collaborating with BLP on this transformative journey. We see tremendous potential for smarter operations, using cloud and analytics, in achieving scale and efficiencies in this business. As a strategic partner, we will deliver measurable business outcomes to BLP by bringing together expertise and capabilities across IBM,” said Ajoy Menon, director of strategic outsourcing, Global Technology Services, IBM India South Asia.


About IBM Cloud Computing
IBM is the global leader in cloud with an unmatched portfolio of open cloud solutions that help clients build, rent or tap into cloud capabilities. No other company has the ability to bring together unique industry knowledge and unmatched cloud capabilities, that have already helped more than 20,000 clients around the world. Today, IBM has more than 100 cloud SaaS solutions, 37,000 experts with deep industry knowledge helping clients transform and a network of more than 25 global cloud delivery centers. Since 2007, IBM has invested more than $6 billion in acquisitions to accelerate its cloud initiatives. Most recently IBM acquired SoftLayer with more than 22,000 clients in 140 countries to further build out its IaaS portfolio with an easy and secure on ramp to cloud integrating IBM SmartCloud.

About BLP
BLP is one of the largest clean energy generation companies in India. BLP builds, owns and operates renewable energy power plants to generate clean energy through renewable sources namely wind; solar; bio mass and hydro. BLP creates clean energy to meet the increasing demand for clean electricity and to address the pressing challenges of global warming and energy security. They plan to grow to 1GW operational capacity in the next few years. BLP also offers pre-development and post commissioning services to wind farm developers, operators, owners, investors and lenders, including plant monitoring for analysis. It has a strong pipeline of projects in India and one of the most experienced teams in the sector.  They are currently located in Bangalore and Delhi.

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Bids for Small hydro power scheme in Kerala to be announced by month-end...

 

Bids for Small Hydro power scheme in Kerala

Successful bids for the ambitious BOOT-basis small hydel project (SHEP) scheme promoted by the Energy Management Centre, Kerala, (EMC), will be announced by this month-end.

The bids are to be opened on November 26, as per a revised schedule.

According to the new deadline, proposals can be submitted up to November 25, EMC officials said. EMC had set November 15 as the cut-off date for placing proposals and November 16 for opening the bids.

The deadlines have been extended by 10 days on the request of bidders, EMC director K M Dhareshan Unnithan said.

“We have received around 35 bids so far for 62 SHEPs available under the scheme. The biggest SHEP in the list is a 21-MW one,” he said. Successful bidders can build, own, operate and then transfer (BOOT) the project after the stipulated period. SHEPs - hydel projects up to 25 MW are listed in this class - assume significance against the backdrop of the unofficial ‘ban’ on big hydel projects in the state due to environmental concerns.

Owing to green worries, several of the hydel projects now under development by the Kerala State Electricity Board (KSEB) also are SHEPs.

In fact, the 62 projects now available were originally pinpointed by KSEB for development.

“There is a huge potential for panchayats to step into the SHEP sector. They can develop such schemes locally on a cost-sharing basis with the government and interested groups in their locality,” Dhareshan Unnithan said.

The recently published Kerala Perspective Plan 2030 of the State Planning Board also underscores the need for such schemes at the gram panchayat level to supplement the KSEB-centred supply of electricity in the state.

Majority of the SHEPs in the EMC’s BOOT scheme are run-of-the-river projects and are located in Idukki, Ernakulam and the districts further north.

The total capacity of the schemes on offer comes to around 160 MW.

It is estimated that Kerala has a small hydro potential of 700 MW.

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BHEL bags Rs 1300 crore order from NTPC for the Feroze Gandhi Unchahar Thermal Power Project AT Uttar Pradesh...

 

BHEL receives order from NTPC for Feroze Gandhi thermal project

State-run Bharat Heavy Electricals Ltd (BHEL) said it has bagged an equipment supply contract worth Rs 1300 crore from NTPC Ltd.

NTPC has placed the order for supply and installation of the main plant package for a 500 mw thermal power project in Uttar Pradesh, an official statement said.


The order involves supply and installation of steam generator, steam turbine generator and electrics package for the upcoming 500 MW Feroze Gandhi Unchahar thermal power project.

The contract has been received from NTPC BHEL Power Projects Private Limited (NBPPL), a joint venture between NTPC and BHEL.

BHEL's scope of work in the contract envisages design, engineering, manufacture, supply, erection and commissioning of steam generator, steam turbine generator and their auxiliaries.

The key equipment for the project will be manufactured at BHEL's Trichy, Ranipet, Haridwar, Hyderabad, Bangalore and Bhopal Plants, while the company's power sector - northern region will be responsible for erection and commissioning of the equipment, the statement said.

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ADB proposes USD 80 K loan to RInfra's Delhi distribution arm for improvement of distribution system...

 

ADB to finance BSES Rajdhani for distribution improvement

The Asian Development Bank proposes to finance the BSES Rajdhani Power Limited (BRPL),  Reliance Infrastructure's Delhi Distribution arm, the amount of USD 80,000 for the improvement of  Delhi Electricity Distribution System.

 

According to ADB, the Project involves the improvement of the electricity distribution network in south and west Delhi including the rehabilitation of sub-stations, augmentation/replacement of transformers and other system efficiency improvement measures through the financing of BRPL's capital expenditure over the next two years.

Objectives and Scope

ADB assistance will:

  1. Allow BRPL to reduce aggregate technical and commercial losses in south and west Delhi by 3.5% over the next two years,
  2. Support the national and state governments in their efforts to reduce the technical and commercial losses of the Indian distribution network,
  3. Reduce the electricity demand-supply gap through an environmentally sustainable intervention without any new generation capacity addition,
  4. Catalyze private investment in Indian distribution sector.
 
Project Rationales as per the ADB

The Project is consistent with ADB's Strategy 2020.

Under Strategy 2020, ADB is committed to promote energy efficiency through supply-side measures. The Project is aligned with the India Country Partnership Strategy (CPS) 2013-2017. The CPS underlines the need for ADB to focus on expanding availability and access to energy by reducing losses and strengthening infrastructure and highlights that investments in the energy sector should target distribution networks at the state level. The Project is also in line with the Energy Sector Policy (2009) which highlights energy efficiency improvements in transmission and distribution systems. The policy proposes that ADB will continue to support installation of modern transmission systems to transmit electricity efficiently from generation facilities to consumers, including upgrading of existing systems to reduce technical losses. In addition, the Energy Policy 2009 encourages the facilitation of private sector investments to improve energy efficiency.

Description of Project Outputs

Improved electricity distribution network in South and West Delhi.

Summary of Environmental and Social Aspects

The Project is classified category B for environment, category B for involuntary resettlement, and category C for indigenous people. In accordance with ADB's Safeguard Policy Statement (2009), the potential environmental and social impacts and risks of the project have been identified. No land acquisition or resettlement is envisaged, land will be provided by government agencies. In addition, the environmental impacts of the project are expected to be limited and will be site-specific, reversible and mostly associated with temporary construction activities. The institutional capacity of BRPL to manage the project' social and environmental impacts will be strengthened. The company is committed to continue to build the capacity of its staff and contractors to effectively manage such possible impacts.

The complete Project Data Sheet of the proposed Project can be downloaded from here.

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Hyderabad water board to borrow Rs. 300 Crores to clear power dues of AP Transco...

 

Hyderabad water board to borrow to clear power dues

To tide over the present financial crisis, Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) is contemplating to avail a bank loan to the tune of Rs 200 crore from nationalised banks to pay to AP Transco to clear power dues.

The board urgently needs to pay Rs 300 crore to AP Transco to clear power dues. The huge electricity arrears got piled up due to the drawing of about 320 million gallons of water per day (MGD) from   sources like Manjira Phases I and II, Singur Phases III and IV and  Krishna Drinking Water Supply Project (KDWSP) Phases I and II by pumping water at different stages for supplying drinking water to the consumers in Greater Hyderabad and villages in other districts en route. The power consumption by the water board is about 100 MW.

HMWS&SB officials told that the board would approach nationalised banks for loans of Rs 200 crore. The HMWS&SB’s monthly expenditure is about Rs 90 crore while the revenue is just Rs 60 crore a month, creating a monthly deficit of Rs 30 crore.

On a monthly basis, the water board incurs Rs 40 crore towards power charges but manages to pay a partial amount between Rs 20-25 crore per month to AP Transco. The remaining amount piles up as dues, they said.

The HMWS&SB revised the water tariff in December 2011 whereas the Andhra Pradesh Electricity Regulatory Commission (APERC) revised the power tariff in April 2012 which was about Rs 13 crore and Rs 20 crore in 2013. During the next financial year (2014-15), it may reach Rs 25 crore. The HMWS&SB would be in a severe financial crisis, they added.

If the state government wants to rescue HMWSS&B from the present financial crisis, they have to either allow the Board to increase the water tariff on all categories or provide funds to clear the power dues, they added.

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Road shows by IoC & Coal India in Singapore and Hong Kong over Indian power sector including renewable energy...

 

Road shows in Singapore hongkong by CIL and IoC

This week you may spot some of the top executives of two leading PSUs Indian Oil Corp (IOC) and Coal India Limited (CIL) in the financial hubs of Hong Kong, Singapore and Australia. After wrapping up successful road shows in the US and the UK, government will organise road shows in Singapore and Hong Kong this week to gauge the appetite of the investors in bid to sell its 10-percent-stake in nation's largest oil company.


They will try and sell the IOC stake sale, which is important for achieving government's investment target of Rs 40,000 crore. The proposed issue of 19.16 crore IOC shares is likely to fetch as much as Rs 3,900 crore at current prices.


At the road shows last week, IOC was projected to investors as "The Future of India Energy." Such road shows are organised basically to apprise the prospective investors about the investment potential in the company. In the presentation meant for the investors, IOC was shown as the largest refiner in the country which has "Strong support from the Government of India" and is "Driven by a Management Team that has Delivered Results."


IOC has 10 refineries with 65.7 million tonnes of crude oil processing capacity, which constitutes 31 percent of the domestic refining capacity. It has 11,000-plus km of crude oil, product and natural gas pipelines and a 44 percent fuel market share. IOC is also the second largest petrochemical firm in the country after Reliance Industries.


The presentation further said that IOC is expanding its footprint in oil and gas exploration, LNG, wind and solar power besides venturing into nuclear energy to become an integrated energy firm. IOC, it said, is investing $2.077 billion in core business of oil refining and marketing and petrochemicals and has plans to invest $2.448 billion in the next. It has an capital outlay of $2.09 billion for 2015-16 and $2.009 billion for 2016-17.


IOC chairman RS Butola had just before the US and UK roadshows said that the department of disinvestment (DoD) would like to assess the market conditions at the roadshows and will take a view on the stake sale based on the response.
The company was of the opinion that the government should not launch the stake sale now as the company share price is "unduly depressed".


Government holds 78.92 percent stake in the country's largest oil refiner as on June 30. The PSU’s shares have recently seen a surge of Rs 15-20 per share. This follows the recommendations of the Kirit Parikh committee on fuel pricing that proposes a hike of Rs 5 per litre in diesel prices and Rs 250 per cylinder in LPG.


The department of divestment had earlier postponed the stake sale of IOC in October following opposition by the oil ministry. The ministry thought the market conditions were not conducive for disinvestment. Currently, the government holds a 78.92-percent stake in the oil major. Five merchant bankers — Citibank, HSBC, UBS Securities, SBI Capital and JM Financial — have been appointed to look after the stake sale.


The government has so far raised Rs 1,325 crore from divestments in MMTC, Hindustan Copper, National Fertiliser, ITDC, State Trading Corporation and Neyveli Lignite. Power Grid, NHPC and Engineers India have also been lined up for divestment in 2013-14.
Meanwhile, buoyed by the enthusiastic response from the investors in the road shows last month, government will also hold road shows in Hong Kong, Singapore and Australia from November 18-26 ahead of its plan to sell a five percent stake in Coal India. The government organised road shows for the world's largest coal producer last month in five countries, including Germany and the UK. Commenting to the response of investors to the road shows, coal secretary SK Srivastava had said, "It is a very sound company with strong fundamentals and they have appreciated various aspects of operations and functioning of Coal India."


The stake sales in Coal India and IOC are crucial for the government to meet the divestment target of Rs 55,814 crore for 2013-14. The department of disinvestment originally planned to sell a 10 percent stake in Coal India, but due to stiff protest from employees unions as they threatened to go on strike.

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Analysis of Trading activities by Licensed Traders for October 2013...

 

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CERC has released the analysis of power trading activities performed by the licensed traders for the month of October 2013.

The abstract of the report is presented below:

 

 

 

Summary

  • The reported short-term contract volume for October 2013 (analysis of five weeks) is 2262 MUs whereas the same was 1529 MUs for the month of for September 2013 (analysis of four weeks). This is equivalent to about 18% increase in average weekly volume transacted during September.
  • 85% of total volume has been contracted at price of more than Rs. 4/ kWh during October as compared to 36% of total volume contracted during September.
  • Total number of contracts (including swap & banking) executed during October is 273 by 9 traders whereas in September the number of contracts executed was 180 by 9 traders.

 

Comparison of Short Term OTC contracts prices with Power Exchange prices (on Contracted Date)

The contracts executed are almost evenly distributed with the maximum number of contracts executed in the first week of the period (refer to annexure I for contracts executed week-wise) and the overall price of OTC contracts executed was in the range of Rs. 2.02/kWh - Rs. 6.66/kWh whereas the prices on the Exchanges varied between Rs. 1.89/kWh - Rs. 3.47/kWh

Forward Curve of Power Prices

A forward curve reflects present day’s expectation of spot prices for a future period. Accordingly forward curves have been drawn based on prices of contracts executed for supply of power for future period. Forward curve have been drawn for November 2013 – May 2014 based on 247 contracts and for comparison forward curve has been drawn for October 2013 – May 2014 based on 168 contracts. (Pl refer the embedded report)

Post-facto Comparison of Prices in OTC Contracts and in Power Exchanges (on Power Delivery Dates)

The post facto graph shows the average OTC price vis-à-vis power exchanges prices for the last month’s power deliveries. Hence this compares the spot Power Exchange prices with OTC deliveries (OTC contracts may have been executed earlier but delivered on the same days as on the exchange spot deliveries). The methodology of calculating the data points of OTC prices is same as in the forward curve. (Pl refer the embedded report)

List of traders who have undertaken contracts in October 2013

Trader

30th Sep -

6th Oct

7th Oct -

13th Oct

14th Oct -

20th Oct

21st Oct -

27th Oct

28th Oct -

3rd Nov

Grand

Total

PTC India Ltd.

Y(49)

Y(44)

Y(38)

Y(36)

Y(41)

Y(208)

NTPC Vidyut Vyapar

Nigam Ltd.

Y(11)

Y(4)

Y(7)

Y(8)

Y(6)

Y(36)

Tata Power Trading Co.

Ltd.

Y(4)

NIL

Y(2)

Y(9)

Y(2)

Y(17)

JSW Power Trading

Company Ltd.

NIL

Y(2)

NIL

Y(1)

Y(1)

Y(4)

Instinct Infra & Power

Ltd.

Y(2)

Y(1)

NIL

NIL

NR

Y(3)

Mittal Processors (P)

Ltd

Y(2)

NIL

NR

NR

NR

Y(2)

National Energy

Trading & Services Ltd.

NIL

NIL

NIL

NIL

Y(1)

Y(1)

Reliance Energy

Trading (P) Ltd.

NIL

NIL

NIL

Y(1)

NIL

Y(1)

Shree Cement Ltd

NIL

NIL

NIL

Y(1)

NR

Y(1)

Grand Total

Y(68)

Y(51)

Y(47)

Y(56)

Y(51)

Y(273)

Note 1: Y ( ): Contracts had been undertaken (Number of Contracts), NIL: No Contracts was made during the week, NR: Not Reported
*Note 2: This table shows list of traders who have reported & undertaken at least one contract during the reported period. There could be some traders who have reported but did not undertake any contracts.

Complete report is embedded below.

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