Tamil Nadu power regulator may tweak rules for quick developments of solar business...

 

The Tamil Nadu Electricity Commission is looking to change the rules in order to ensure just one member can be considered a quorum, rather than the current requirement of two, something that could potentially quicken the decision-making process.

The regulator has issued a draft notice toward easing the rules for what constitutes a quorum-the minimum number of members needed to transact the business of a group.

The move comes at a time when Tamil Nadu is trying to battle its huge power shortfall through, among other things, an ambitious scale-up in solar power. The plan is to add 3 gigawatt of solar power by 2015, but the going hasn't been smooth.

Though over 50 solar developers have signed letters of intent to set up nearly 700 megawatt of capacity, power purchase agreements haven't been signed. And the main reason for the delay is that the regulator has been functioning with just one member.

"For the past one year, nothing has been happening in terms of decision-making, creating uncertainty," said Madhavan Nampoothiri, founder & director of Chennai-based RESolve Energy Consultants. It also comes just a week after Tamil Nadu inducted a second member to the commission. Nampoothiri said the amendment take care of the quorum in case one member retires.

It will also ensure consistency. The change in rules could help the industry. Bikesh Ogra, president of solar Business at Sterling & Wilson, part of Shapoorji Pallonji Group, said he expects the moves to "instill confidence in the solar developers who have been waiting for almost a year to sign power purchase agreements. Expectations are that power purchase agreements could get signed shortly."

The change in rules follows criticism by appeals body Appellate Tribunal for Electricity on vacancies that were not filled up. That came after a report of the Forum of Regulators, which is made up of representatives of all state electricity regulatory commissions, pointed out the lack of quorum in AP, Jharkhand and Tamil Nadu.

Justice M Karpaga Vinayagam, chairperson of the appellate tribunal, had noted in his order the need to record "with a great anguish with regard to repeated instances of institutional vacuum being created due to lack of diligence by the respective appointing authorities in filling up the vacancies".

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Alstom displays its new T155·4ZO kV Gas-Insulated Substation: compact and smart grid ready...

 

Alstom Grid, a global leader in power transmission and smart grid technology, showcases a number of  technologies  and  innovations at  the  ELECRAMA  2014 -  one of the largest trade shows for electrical and electronics industry in Asia. Alstom  will  update  key industry  players  on  its  latest technologies  through,   product   demos,  'live'   models  and  briefings   - all  under  the  theme   of "Energising a smarter world... with Alstom".

The ELECRAMA  2014 exhibition  is organized  by the Indian  Electrical  and  Electronics  Manufacturers'   Association  (IEEMA),  and  takes  place in  BIECE, Bangalore, India between January  8 and 12, 2014.

Mr. Gregoire Poux-Guillaume, President of Alstom Grid and Brand Ambassador for ELECRAMA 2014, explained: "The Transmission sector in India is rapidly evolving  and requires the very latest global technologies to be produced locally. The industry has a lead role to play in driving India's economy at 9% GDP speed  - if not more.  In terms of technologies, we all are ready  for that great day and the journey to get there is not such a long one. This forum will enable us to embrace the debate and lead us all to achieve a common goal of getting the energy infrastructure ready for India's next chapter. "

Alstom  Grid  displayed  a  wide  spectrum  of  products, systems  and  services that  improve  energy efficiency  and  productivity   at  every stage of the  energy chain  - from  generation  to  end use. In addition  to  its strong  portfolio   of automation  technologies, Alstom  Grid also showcased  its  latest generation  of T1SS gas-insulated   substation   (GIS) designed  to  meet  the  future   challenges  of electrical networks up to 420 kV, 63 kA, S000/6300A.

The T155 substation is 40% more compact than its previous version with  a reduced footprint, and is easier to access at  ground  level,  easier to  transport  and  30% faster  to  erect. The reduced size is mainly  due to the single-chamber circuit-breaker  that  requires less energy to operate. The bays are manufactured,  assembled and tested in Alstom Grid's Chennai factory,  which  employs around 400 people.

With   this  product,  Alstom   sets  the  world   benchmark   in  digital   substations.   Embedded  digital monitoring  and control  functions communicate via the IEC 61850 protocol, making the solution fully digital with all  the following  benefits: interoperability, ease of configuration,   reliability, availability, real-time operation and enhanced communication capabilities.

Source: NSE

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Haryana discoms prepare a Rs 5,000-cr capital expenditure plan...

 

The Hayana discoms (Dakshin Haryana Bijli Vitran Nigam and Uttar Haryana Bijli Vitran Nigam) have prepared a capex (capital expenditure) plan of Rs 5,000 crore for the next three years to strengthen power distribution system in the state, so as to ensure more power with greater reliability to meet the increasing demand.

Devender Singh, principal secretary (power) and chairman, Haryana Power Utilities, said here on Tuesday that power transmission and distribution systems have been planned to match the increase in demand. The discoms have planned a capex of about Rs 5,000 crore over the next three to four years, for which integrated planning has already been initiated.

Singh said that to meet the increasing demand of power in the state, the power utilities are likely to make arrangements for an installed generating capacity of 18,000 to 19,000 MW by 2016. The total installed power generation capacity (from all sources, including state's own projects and long term arrangements from other sources) in Haryana has increased to over 10,000 MW. Presently, the availability is more than the demand.

He said that the power transmission and distribution system was also being strengthened accordingly. The utilities would construct 146 new sub-stations of various levels and augment capacity of 182 existing sub-stations in the next three years at a cost of Rs 3,500 crore, so as to match the capacity of the transmission system in accordance with the increasing availability of power in the state. This plan is besides the capex plan to strengthen the distribution system. During the current financial year, 32 new sub-stations have already been commissioned and capacity of 47 existing sub-stations has been augmented.

He said that the Centre had approved power development schemes of Rs 1,487 crore for 36 towns in Haryana under its Restructured Accelerated Power Development and Reforms Programme (RAPDRP).

The RAPDRP would be implemented in two parts. Under the first part, the power distribution system would be made information technology (IT) based while under the second part, the power distribution system in towns would be strengthened and renovated.

Under the first part of this prestigious programme, the nigams plan to give a strong information technology base to the electricity distribution system through consumer indexing, asset mapping, metering of feeders and distribution transformers, automatic data logging, feeder segregation, ring fencing, information technology applications and the establishment of base line data system.

While the second part of RAPDRP covers renovation, modernisation and strengthening of 11 kV level by adding distribution transformers, re-conductoring of lines at 11KV level and below, feeder segregation or bifurcation, load balancing and installation of capacitor banks, mobile service centers and others.

Source: Business Standard

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Suzlon up on talks with FCCB holders...

 

Suzlon Energy’s shares rose as much as 6.5 per cent on Tuesday and closed at Rs 11.69 on the BSE, after reports of the company reaching a settlement with bondholders over its 2012 default.

“We will reach a settlement with the foreign currency convertible bond (FCCB) debtors in the next two to three days,” said a person close to the development, on condition of anonymity. The company had defaulted on a $200-million FCCB bond payment in late 2012. The wind energy turbine maker later had its debt of Rs 9,000 crore restructured.

Suzlon refused to comment on the development. The contours of the likely settlement are unclear. The total payment to FCCB debtors, including future payments, could be up to $500 million and a settlement for the entire amount might be done at one go.

“This proposed agreement with FCCB holders indicates that the deep financial recast package is working. The turnaround is happening but much business expansion depends on the economic conditions in target markets — Europe and North America,” said a senior State Bank of India executive. State Bank of India is the lead banker to Suzlon.

Suzlon has been facing many headwinds like slowdown in the power equipment market, both globally and in India where domestic construction activity has come to a stand-still in the last two years. Added to this, Suzlon had acquired German equipment company REpower. In spite of acquiring the entire company, tough German laws had restricted the company from transferring the free cash in the company, leading to more troubles.

Source: Business Standard

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NMDC scouts for new sites for UP power plant...

 

NMDC, which is in the process of setting up a 500-MW power plant in Gonda district in Uttar Pradesh, has decided to shift the location of the project in view of the objections raised by a committee under the ministry of environment and forests.

According to official sources, Mecon, consultant for the power project has come up with three alternative sites and the Expert Appraisal Committee has asked the miner to prepare a detailed plan with regard to the environmental issues on the site at Turkadih-Siswa.

The EAC earlier refused to clear the project saying that the place where the project is proposed is fertile agriculture land and suggested the company to find another site.

"Mecon has identified three alternate sites within and outside Gonda, with the help of Topo Sheets and Satellite imageries and extensive field survey. The EAC asked them to prepare Environmental Management Plan keeping Turkadih-Siswa site in mind," a source in the know of the development told PTI.

The source said an advertisement seeking land up to 500 acres in Gonda district was also released recently.

"We have not taken any investment decision yet. It depends on the DPR by Mecon. It will take some time for them to prepare the report," the source added.

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Mahadiscom sitting on Rs 1,000 crore Dabhol bill...

 

Fuel shortage is not the only problem the Dabhol power project is faced with. It turns out that one of its shareholders and beneficiaries, Maharashtra State Electricity Distribution Company (Mahadiscom), is also partly responsible for the project's financial woes.

In a letter to power secretary P K Sinha, IDBI Bank chairman M S Raghavan has said the state government's discom has failed to pay Rs 1,003 crore to Dabhol, making it difficult for lenders to keep the project's loan account out of the list of bad debts.

Mahadiscom is Maharashtra government's distribution arm. The state government, through MSEB Holding Company, owns over 17% in Ratnagiri Gas and Power Private, the joint venture with state-run utilities NTPC and GAIL that owns the project.

"While the company is facing serious liquidity problems owing to stoppage of gas supply from RIL (Reliance Industries), the delay in release of payments by MSEDCL (Mahadiscom) has further strained the cash flow position of the company (Dabhol)," Raghavan has said.

According to Madhavan, The discom owes Dabhol Rs 497 crore for power purchased from the project during the April-July 2013 period and another Rs 506 crore towards recovery of 'fixed charges' for the capacity declared available on the basis of using imported liquid gas as fuel.

 

Sources said the discom made a payment of Rs 50 crore against its outstanding on December 30 after Madhavan wrote to Sinha. But bankers described this as too little too late.

No wonder then that Dabhol has been defaulting in servicing its debt since October 2013. It ran up overdues of banks and institutions of around Rs 331 crore. It is reported to have made a minimum payment of Rs 167 crore by December 31 to avert being tagged as a non-performing asset. But going by Madhavan's letter, it may be only a temporary reprieve and saving Dabhol from being declared as an NPA would solely depend on Mahadiscom clearing its dues regularly.

As TOI first reported on October 7 last year, ICICI Bank managing director Chanda Kochhar first sounded alarm bells over loan default by Dabhol and its devastating impact on the banking sector that has an exposure of Rs 8,500 crore to the project.

The project's problems started in October when gas flow stopped completely under the government's policy decision forced by a sharp fall in output from RIL's KG-D-6 field. The government was forced to divert the available gas away from power plants from RIL's field to fertilizer plants.

Mahadiscom rejected Dabhol's proposal to run the plant on costlier imported liquid gas on the ground it would push up the power tariff beyond acceptable levels. As a result, the company is struggling to recover even the fixed costs on its capacity.

Dabhol is one of the showcase business rescue missions the Centre carried out by taking over the mothballed plants and an adjacent gas shipping port after US energy major Enron went bust in 2001.

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After National Solar Mission now it's time of National Wind Energy Mission (NWEM)...

 

The government will launch its first wind energy mission this year to give a boost to the renewable source and putting it in the same league as the high-profile solar mission. The 'National Wind Energy Mission (NWEM), which would be launched around the middle of the year, would give incentives to invest, east land clearances and regulate tariffs. But unlike the flagship 'National Solar Mission' it would not involve projects for bidding. It would act as a "facilitator", officials said.

First National Wind Energy Mission to begin by mid-2014

"We wish to coordinate separate lines of action in the wind sector and involve all the stakeholders. Wind energy led to the establishment of renewable based power in the country but lately it has been marred by several issues," said Alok Srivastava, joint secretary (wind) in the ministry for new and renewable sources of energy.

Under the proposed action plan, MNRE would strengthen grid infrastructure for wind power, identify high wind power potential zones, ease land clearances for the projects, regulate wind power tariff and incentivise investment in the wind sector.

"The proposed NWEM would be placed in the cabinet soon and we wish to kick start it in the next 6 months," said Srivastava. He also said that all stakeholders in the wind sector, ministry of power, Powergrid corporation, central and state electricity regulators, planning commission, private and public sector project developers would be a part of the mission, with MNRE acting as a key facilitator and moderator amongst all of them. "A national program would uproot the scattered impediments faced by the wind sector and spur it towards the second phase of growth," said Srivastava.

Grid connected wind based power in India has been in existence from almost 20 years now while solar made its debut just 4 years back with the national solar mission. India is the fifth largest wind power producer in the world with an installed capacity of 19 GW.

Caught in the policy net, capacity addition in the wind sector fell to decade low during last & current fiscal. The industry, especially the private sector has also complained about the lack of proper grid infrastructure for evacuation of wind power.
There have been delays in payments by the states to the power developers due to the same. Through this mission, government aims to have a generating capacity of 100 GW of wind power by 2022. The potential of wind based power in the country is estimated to be 300 GW.

MNRE also plans to extend the 'generation based incentive (GBI)' for the project developers for five years. This would amount to a total expenditure of Rs. 18,000 crore. Budgetary allocation for GBI in the current fiscal is Rs. 800 crore.

GBI was notified in the union budget 2013. Under this financial scheme, government would pay wind power developers Rs 0.50 for every unit of power generated from the wind facility.

Till April 2012, wind sector enjoyed two fiscal benefits. Accelerated depreciation (AD) has been in force for the wind industry since 2003 till 2012 when its was withdrawn. GBI, announced in 2011 was discontinued in 2012, only to be reintroduced in 2013 in the union budget.

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Amendment to Electricity Act will threaten BEST’s existence: GM...

 

The Brihanmumbai Electric Supply and Transport (BEST) Undertaking's administration has opposed a move by the Union Power Ministry that could prevent BEST from cross-subsidising transport losses from its supply division, and allow private distributors to supply electricity to residential and commercial units in the island city.

The Union ministry has proposed an amendment to the Electricity Act 2003, which the BEST administration believes could threaten the survival of the undertaking. The Ministry plans to send the proposal for Cabinet approval soon.

Om Prakash Gupta, General Manager of BEST on Tuesday said, "I see no reason why the amendments are being made. We have sent a strong objection to the proposed amendment, as it raises questions on the survival of such an old organisation."

During a BEST committee meeting on Tuesday, Gupta asked the members from political parties to support the BEST administration. The committee has now decided to deliberate on the issue, and take it up with Chief Minister Prithviraj Chavan and Shiv Sena leader Uddhav Thackeray.

The Union ministry plans to remove Sections 51 and 42 (3) of the Electricity Act. While Section 51 allows BEST to continue cross-subsidising its transport losses from the supply side, Section 42 (3) prevents private distributors from meeting supply needs of units that consume more than one megawatt of electricity. BEST and New Delhi Municipal Corporation are the only two organisations that use the special provisions in the country.

Gupta said, "Open access will take away our clients and allow private players to distribute electricity in the island city. While this will be similar to the arrangement in suburbs presently, it will go against BEST which serves the island city only."

Of BEST's 10 lakh users, 45 per cent are commercial establishments and the rest residential. Open access will take away high-end users from BEST, forcing the undertaking to raise supply charges for residential units.

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Maharashtra Cabinet meets today to decide on reducing power tariffs...

 

Maharashtra cabinet led by Chief Minister Prithviraj Chavan is scheduled to meet on Wednesday to decide on reducing the existing power tariffs for residential, commercial and industrial consumers across the state.

Today's cabinet meets comes in the wake of demands made by AICC secretary and MP Sanjay Nirupam that Maharashtra government should also reduce tariff for power consumption of less than 500 units per month in the city.

The Congress MP demanded a cut in power tarrif apparently taking cue from Delhi government's decision of 50 percent cut in power tariff.

In a letter to Chief Minister Prithviraj Chavan, the Mumbai North Lok Sabha MP said power tariff should be substantially reduced for those whose consumption is less than 500 units per month.

The Congress MP said if the legitimate expectation of the entire middle class and slum population is not met in the immediate future, he will launch an agitation against the government.

Nirupam also demanded that an inquiry be set up to investigate the cost structure and pricing mechanism adopted by power distribution companies.

He said the Delhi government's decision will benefit the middle class and slum dwellers.

Reacting to Nirupam's demand, the Chief Minister said, “The state has to think on the extent of relief it can give to consumers."

However, Chavan indicated that the government is thinking about the quantum of relief and had more or less made up its mind to go ahead with the plan.

A decision might be taken in about a fortnight, some state government officials also said.

In today's meting, the cabinet is expected to discus sops for electricity consumers in the state and possible ways to reduce tariffs in Mumbai and other areas.

Media reports said that the Maharashtra government would need Rs 1,600 crore to reduce power bills by 50% for those consuming less than 400 units a month in Mumbai (the model that the AAP government in Delhi has decided to implement).

State cabinet sources said the Narayan Rane committee had already given positive recommendations in this regard and suggested a range of subsidies that could vary between Rs 2,000 crore and Rs 8,000 crore.

Though Mumbai was not in the scope of the Rane committee's report, the city's scenario too was discussed at length and it was decided to come out with some sops for Mumbai consumers too.

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