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January 13, 2012

Rs. 2 lakh crore lined up for power sector…AP Government

image The AP government is slated to sign MoUs for about Rs 2 lakh crore worth of energy projects, both in public and private sector, mostly in coal fired thermal power plants on the last day of the summit tomorrow. This is almost 40 per cent of the new investment proposals.

These projects have been proposed with a combined installed capacity of 39,000 Mw, of which 26,000 Mw projects are proposed in the private sector, according to Dinesh Kumar, principal secretary, energy department.

Among the public sector, NTPC Limited is coming up with new projects apart for expanding its existing ones with a combined capacity of 4,000 Mw in the state. Power utility APGenco is proposing to add 9,700 Mw in both expansion and greenfield thermal projects.

Apart from this, the Andhra Pradesh Power Development Corporation (APPDCL) is setting up two gas-power projects with a total capacity of 1,700 Mw and state-owned Singareni Collieries Company Limited (SCCL) is setting up a 1,200-Mw pit head project using the residual coal reserves of the abandoned mines in the backward Adilabad district.

Wind power projects worth 14,000 Mw capacity as well as solar projects worth 350 Mw are among the MoUs lined up by the private sector.

In addition, the Power Grid Corporation of India and APTransco are signing MoUs with the AP government for setting up substations transmission lines and other infrastructure with an investment of Rs 6,000 crore each.

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Renewable Energy Certificates (REC) trading update of December 2011…

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Renewable Energy Certificates (REC) are being traded on last Wednesday of every month on the Indian Power Exchanges like IEX and PXI.

The last REC trading were happened on 26th December 2011.

Following is the snapshot of the last REC Trading on IEX.

No of Participants as on 31st December 2011.

  No of Participants
Total registered Participants 689
Obligated Entities  
DISCOMs 10
Open Access consumers 497
Captive Consumers 23
Voluntary Entities 4
Eligible Entity (Private Generators) 155
Highest Participation in REC Auctions (Sep’11) 168

 

REC bids and price

  Purchase Bids (REC) Sell Bids (REC) Cleared (REC) Price (Rs./REC)
Non-Solar 264093 166000 105942 2950
Solar 495 0 0 0
1 REC = 1 MWh        

History of REC Trading

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REC Trade analysis

 

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Next REC Trading session will be held on 25th January 2012.

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Power Trading Update – 12th Jan 2012

Power Trading_img

Power Trading snapshots of two major exchanges  IEX (Indian Energy Exchange) and PXI (Power Exchange of India) for 12th January 2012. On IEX around 59740 Mn Units were sold as against demand of 69750 Mn Units. Similarly on PXI around 2356 Mn Units were sold as against demand of 5120 Mn Units. Detailed report of both the exchanges are depicted below:

 

 

 

Market Snapshot on IEX

Category Purchase Bid
(MWh)
Sell Bid
(MWh)
Unconstrained
MCV(MWh)
Constrained
MCV (MWh)
Unconstrained
MCP(Rs/MWh)
Total 69750.2 59740.4 44833.2 38881.7 0.0
Max 3817.2 2959.4 2117.0 1948.5 4049.9
Min 2206.6 2090.4 1363.0 1280.7 2092.9
Average 2906.3 2489.2 1868.1 1620.1 3314.8

 

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Market Snapshot on PXI

Category Purchase Bid
(MWh)
Sell Bid
(MWh)
Unconstrained
MCV(MWh)
Constrained
MCV (MWh)
Unconstrained
MCP(Rs/MWh)
Total 5119.9 2355.9 1075.2 719.8 0.0
Max 254.5 135.9 102.0 61.6 7010.0
Min 175.3 62.0 2.0 2.0 3250.0
Average 213.3 98.2 44.8 30.0 4313.3

Legends:

  • MCV : Market Clearance Volume
  • MCP: Market Clearance Price
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January 12, 2012

Suzlon Group Wins 150 MW Wind Turbine Order For Oklahoma Project…

image Suzlon Energy Ltd. said its group subsidiary REpower Systems SE had concluded a contract with an East Coast US wind power developer for 73 MM92 turbines, with an overall power output of 150 MW. These turbines are destined for a project in Oklahoma, located in the south-central region of the United States.

The wind turbines each have a rated output of 2.05 MW, a rotor diameter of 92 metres and a hub height of 80 metres. Due to the climatic conditions the turbines are equipped with the Hot Climate Option, which eases operation during the dry, hot summer months in that region of the country.

The company said the delivery and initial operation of the turbines was planned for the third and fourth quarters of CY2012 (Q2, Q3 FY13).

REpower Systems Chief Executive Officer Andreas Nauen said: “We are pleased to announce our second largest US project to date and supply the reliable MM92 turbines for what will be REpower’s first wind farmlocated in the south-central region of the country.”

Suzlon Group Chairman Tulsi Tanti commented, “This order once again underscores our strong competitive positioning as a Group in the US market. With our comprehensive product portfolio, extensive service capabilities and a robust track record, we are well positioned to grab opportunities in the high growth expected in the US market in 2012.”

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Suzlon delivers 174 MW of wind to Americas…

image Suzlon will deliver 24 MW of wind turbines to a project in Brazil, and its subsidiary REpower, is set to deliver 150 of wind turbines to Oklahoma, USA.

The 24 MW wind farm in Ceará, Brazil, will consist of 12 S95 wind turbines from Suzlon, and is the result of a project partnership between Servtec Group and the Brazilian investment fund manager Rio Bravo Investimentos.

Commissioning of the wind farm is scheduled for December 2013.

Tulsi Tanti, Suzlon's Chairman, says. “Brazil is today a very important economy on the world stage, and a leading adopter of wind energy. As Brazil deepens its commitment to powering economic growth on green energy, we are proud to bring our technology, service offerings and vast experience to this market. With the trust of renowned companies like Servtec, we are poised to make the most of Brazil's wind potential.”

The 150 MW wind farm in Oklahoma, USA, will consist of 73 MM92 wind turbines with Hot Climate Option from Suzlon's subsidiary REpower.

Delivery and installation of the 2.05 MW wind turbines is scheduled for the second half of CY2012.

REpower's CEO, Andreas Nauen, says: “We are pleased to announce our second largest US project to date and supply the reliable MM92 turbines for what will be REpower's first wind farm located in the south central region of the country.”

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Gamesa opens wind turbine blade factory in India…

untitled Gamesa has opened a wind turbine blades factory in India to supply the G5X-850 kW and G9X-2.0 MW wind turbines.

The wind turbine blade plant in the city of Vadodara, Gujarat, is currently staffed by 157 employees and is forecast to reach production capacity of 390 blades in 2013.

Gamesa invested €25 million to commission the wind turbine blade facility, which has already produced its first blade for the G5X-850 kW turbine.

The blade factory will primarily supply India's northern states, including Gujarat, Rajasthan, Madhya Pradesh and Maharashtra, which offer promising wind energy potential.

“This marks another step towards cementing our manufacturing base in India, where we are also implementing our best technology and practices in wind turbine production,” says Gamesa India Chairman and Managing Director Ramesh Kymal.

Gamesa recently boosted its manufacturing presence in India with a tower factory built through the Windar Renewable Energy joint venture, in which Gamesa owns a 32% stake. The facility will employ 50 workers by the end of the first quarter of 2012.

Nacelle plant planned

The wind turbine blade plant is part of a €60m investment Gamesa announced in March 2011 to strengthen the company’s manufacturing base in India in order to tap rising demand in the country's wind energy market.

Gamesa will round off this investment plan in India by building a new factory in Tamil Nadu state to produce nacelles.

In the third quarter of 2011, India accounted for 20% of the MW sold by Gamesa worldwide.

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3815 MW Grid Connected Renewable Capacity Added During 2011…

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· The Ministry of New and Renewable Energy has intensified the deployment of various renewable energy technologies in the country for grid connected power generation and to improve energy access in rural areas.
· In the recent competitive solar tariff bidding, the tariff quoted are 50% less than they were when the Jawaharlal Nehru National Solar Mission was launched just two years ago.
· Renewable power is now being extensively propagated and used to provide energy access to the remote, inaccessible and difficult areas of the country. During 2011 around 965 villages have been covered with solar lights and 30 villages have been covered with biomass gasifiers.
· The Ministry has undertaken an intensive exercise during the year to review its programmes through various working groups set up for preparation of the 12th Plan. The Ministry is envisaging a capacity addition of about 30,000 MW from renewable during the 12th Plan.

Major Achievements in 2011

The Year 2011 has seen a significant growth with a number of new initiatives in the renewable energy sector. The wind energy sector picked up momentum again by adding over 2800 MW capacity resulting in grid-connected renewable power capacity crossed the 22,000 MW milestone which is about 11% of the total power generation capacity of the country. During the year grid-connected solar power plants crossing the 100 MW milestone. In fact, SPV power plants of over 180 MW were set up in the country. Over 1000 remote villages were electrified through renewable energy systems during this year. Over 50 MW off-grid installations were completed. Another initiative of the Ministry was to launch a comprehensive project to popularize renewable energy systems in the Ladakh
Jawaharlal Nehru National Solar Mission
The Mission aims at adding 20,000 MW solar power capacity in the country by 2022. Implementation of the Phase – I of the Mission started during the year. One of the target areas is promotion of grid-connected solar power in a big way with the objective to bring cost of solar power generation to grid parity levels. In this year 180 MW of grid-connected solar power projects have been commissioned in the country and this figure will cross 400 MW by the end of this financial year. Projects totaling 350 MW have been allotted in batch-II of phase–I in December,2011 through competitive bidding. The tariff quoted are amongst lowest tariffs anywhere in the World with an average Rs.8.77 per kWh and a bid lowest of Rs.7.49 per kWh. If compared with the tariffs of over Rs.18 per kWh at the start of the Mission, this is a reduction of more than 50%.
The Ministry is giving special focus on research in solar energy. 36 R&D projects in solar thermal and photovoltaic technologies are under implementation. A Centre for Solar Thermal Research has been set up at IIT Rajasthan, Jodhpur. Under R&D Projects sponsored to industries in public-private partnership mode, a 30 ton Solar air conditioning system using concentrating parabolic troughs and triple effect vapor absorption machine has been developed and demonstrated at Solar Energy Centre, MNRE. It is a stand-alone system for day time use and can take care of intermittent clouds through small storage. The system once tested for its satisfactory performance, could be useful for offices and institutions working during day time when solar radiation is also available. In another project, a State of the Art fully automatically tracked paraboloid dish of 90 sq. m. area has also been developed and demonstrated at Solar Energy Centre. The dish is expected to find good opportunity in industries for processed heat applications as it is installed on a pillar and the space below dish could be utilized for other purposes.
Grid Connected Renewable Power
A capacity addition of 3815 MW have been achieved during 2011 from various renewable energy sources. This includes 2827 MW from wind, 310 MW from small hydro, 498 MW from biomass and 180 MW from solar energy. With this, the total installed capacity from renewable has reached 22,447 MW.
Wind power is the fastest growing renewable energy option today. A total capacity of 15,880 MW of wind power has been installed in the country. The progress during the current year has been very good. A capacity of around 2827 MW has been installed during the year. It is expected that it will touch around 3500 MW upto March,2012. It would be a significant improvement as compared to figures of 1485, 1565 and 2350 MW in 2008-09, 2009-10, 2010-11 respectively. As per the recommendations of Working Group for 12th Plan, a target of 15,000 MW has been proposed for 12th Plan.
The Small hydro power programme in India is now by and large private investment driven. 24 States have announced their policies to invite private sector to set up SHP projects. Since SHP projects have reasonably good economic viability, a number of financial institutions and banks are ready to finance these projects. Accordingly, a major part of capacity addition and exploitation of SHP potential in future is expected from private sector projects. With a capacity addition of 310 MW during 2011, the total installed capacity from SHP projects is 3210 MW. The Ministry is also focusing on developing micro hydel projects and watermills for electrification of remote areas. As per the recommendations of Working Group for 12th Plan, a target of 2,100 MW has been proposed for 12th Plan.
The Biomass Power and Bagasse Co-generation Programme is implemented with the main objective of promoting technologies for optimum use of country’s biomass resources for grid power generation and maximizing power generation from bagasse produced in sugar mills. During 2011 a capacity of 498 MW have been added. The cumulative biomass power/bagasse cogeneration based power capacity has reached 3056 MW. During the year the Ministry has continued the existing scheme with two modification related to (a) Cogeneration projects through Build, Own, Operate, Transfer (BOOT) model in cooperative sugar mill (b) Boiler upgradation of cogeneration projects in cooperative sugar mills. A target of 2600 MW is proposed for the 12th Plan period.
Off - Grid Renewable Energy applications
Energy Access: Renewable power is now being extensively propagated and used to provide energy access to the remote, inaccessible and difficult areas of the country. Lakhs of solar lights, solar water heating systems ,biogas plants have been installed in the country and so far over 9000 remote villages have been illuminated through solar photovoltaic systems and biomass gasifiers

Biomass Gasifier:
During the year, the Ministry has promoted multifaceted Biomass Gasifier with a view to utilize locally available surplus biomass resources such as rice husk, corn cab & stalks, arhar stalks, cotton stalks, small wood chips, other agro-residues available in surplus to meet the unmet demand of electricity for villages for lighting, water pumping and micro enterprises. In addition, it is promoting small biomass gasifier and combustion based power plants up to 2 MW capacities connected at the tail end of grid and captive power and thermal applications in rice mills and other industries. The Ministry is focusing on promoting rice husk based gasifier projects for decentralized and distributed power generation to provide unmet demand of electricity in villages.
During 2011, about 70 remote villages/hamlets of Bihar in District East Champaran, West Champaran, Muzaffarpur and Sitamarhi benefited by installation of about 25 rice husk based gasifier systems for distributed power generation based on a sustainable model. In addition, about 120 rice husk gasifier systems are under installation in various villages of Bihar. In addition, about 30 rice mills have installed rice husk gasifier systems retrofitted with existing diesel generating sets saving about 13 lakh liters of diesel annually and installation are underway in about 60 rice mills in different States. During the year, biomass gasifier based tail end grid connected projects of 1.20 MW in Gujarat and 500 kW in Tamil Nadu have been successfully installed.

Biogas :
The National Biogas and Manure Management Programme of the Ministry mainly caters to setting up of family type biogas plants for meeting the cooking energy needs in rural areas of the country. During the year, about 45000 family type biogas plants have been installed. With this the cumulative installation of 4.44 million family type biogas plants, about 35.70% of the estimated potential has been realized so far. Apart from setting up family type biogas plants, the Ministry started a new initiative for demonstration of Integrated Technology package in entrepreneurial mode on medium size mixed feed Biogas-Fertilizer Plants (BGFP) for generation, purification/enrichment, bottling and piped distribution of biogas. 21 such projects with aggregate capacity of 37016 cum/day have been sanctioned, out of which 2 BGFP projects have been commissioned. Under Biogas based Distributed/Grid Power Generation Programme (BPGP) so far 158 projects have been commissioned with a total installed capacity of about 2 MW.
Remote Village Electrification: The Ministry is implementing Remote Village Electrification Programme for providing financial support for lighting/basic electrification through various renewable sources, to those remote unelectrified census villages and unelectrified hamlets of electrified census villages where grid extension is found not feasible by the State Governments and hence are not covered under the Rajiv Gandhi Gramin Vidyutikaran Yojna. The programme is implemented in States by the State notified implementing agencies. During the current year, 836 remote villages and hamlets have been completed.
Electrification/illumination of border Villages of Arunachal Pradesh: Implementation of the project for electrification/ illumination of border Villages of Arunachal Pradesh further progressed and out of 1058 villages, 726 villages have been illuminated / electrified. These include, 523 villages, where all households have been provided with solar home lighting systems and balance villages are given electricity from small / micro hydel projects. Further, work in 107 new micro/ small hydro projects is in progress. The project is being monitored by a Steering committee and is targeted to be completed by March, 2012.
Ladakh Renewable Energy Initiative: The Ministry has initiated the implementation of a Rs. 473 crore Special Project for the Ladakh region for large scale use of renewable energy systems in order to provide energy access and minimize use of diesel in the most difficult part of the country and thereby open the doors for coverage of other similar areas. Solar PV lights and solar water heating systems have been intensively promoted in the last one year and 28 villages and 78 institutions in the district stand covered through solar power plants with over 90% house hold coverage. 930 households are using solar water heaters even at sub-zero temperature for their hot water needs. Over 1800 green houses have also been constructed for growing vegetables.
Human Resource Development: In view of rapid growth of renewable energy sector in the country, Ministry has initiated the process to institutionalize the renewable energy education in the country to enable the existing educational institutions to introduce courses related to renewable energy in their regular curriculum. With this initiation, solar street lights, solar hot water systems and small hydro have already been incorporated in the two-year ITI syllabus. Course material for this has been developed and faculty of it is now being trained. In addition, State Renewable Energy Agencies are being supported to organize short-term training programmes for installation, operation and maintenance and repair of renewable energy systems in such places where intensive RE programme are being implemented. Renewable Energy Chairs have been established in IIT Roorkee and IIT Kharagpur.
National Solar Science Fellowship Programme has been launched and process for selection for the National Solar Science Fellows initiated. These efforts, while generating pool of trained manpower at all levels, will also create a system, under which the ensuing requirement of qualified and trained personnel will be met in future. Solar Energy Centre of the Ministry in collaboration with the Ministry of External Affairs has been providing training to participants from different developing countries.

Renewable Energy and Climate Change:

Renewable energy is central to climate change mitigation efforts. Broad estimates indicate that mitigation from existing renewable energy portfolio is equivalent to around 4-5% of total energy related emissions in the country. Further, the vast market potential and well-developed industrial, financing and business infrastructure, has made India a favorable destination for Clean Development Mechanism (CDM) projects, with renewable energy projects having the major share. National renewable energy plans offer ample opportunity for CDM projects and technological innovations.
India had 727 registered CDM projects, which is around 21% of worldwide registered projects. With 520 projects, renewable constitute around 72% Indian CDM registered projects. Within renewable, wind has the maximum number of 225 projects followed by hydro 82 and 6 for solar energy.
30 December 2011

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NTPC awaits MoEF nod for Kudgi power project…

imageThe state-owned National Thermal Power Corporation Limited (NTPC) is likely to start work on the first stage of 4,000 Mw ultra mega power project at Kudgi in Bijapur district shortly. Following the transfer of 1,923 acres land by the state government, the board of NTPC recently approved a proposal to take up the work for the first stage of 3x800 Mw project at an estimated investment of Rs 15,166 crore.

The second stage for 2x800 Mw would be taken up later after the state government transfers the entire land for the project, NTPC sources said.

“The Karnataka Industrial Area Development Board (KIADB) has handed over priority land of 1,923 acres land for building the main power plant. Land acquisition for the balance 1,600 acres is in progress. We are awaiting the clearance from the ministry of environment and forests (MoEF) and once the approval comes the civil work on the first stage would commence,” sources said.

After the MoEF approval comes, the board of NTPC will approach the ministry of power for final approval to commence the work on the project, sources informed.

Meanwhile, NTPC has opened a project office at Bijapur, which is very close to the project site in Kudgi village. NTPC has deposited Rs 100 crore to acquire the land at Kudgi village. Of this, the KIADB has disbursed Rs 80 crore to farmers in the villages of Kudgi, Golasangi, Masuti and Telagi in Basavanabagewadi taluk of Bijapur district. The compensation given to farmers varies between Rs 5.25 lakh per acre for dry land and Rs 7 lakh per acre for wetland, KIADB officials said.

NTPC sources said about 1,100 acres of land for construction of Ash Dyke is under notification for acquisition. The company has included the Kudgi plant equipment in the bulk tendering issued for many other projects. The first unit will be operational in 58 months from the date of award of contract for the main plant equipment.

The Karnataka government had signed a memorandum of understanding (MoU) with NTPC on January 12, 2009 for the proposed project. This would be the first power project being set up in Karnataka by NTPC. The state government has committed to supply 5.2 tmc ft water from Almatti dam for the project.

NTPC would use the supercritical thermal technology at this plant. The proposed plant will have the capacity to generate 80 million units of power a day and 50 per cent of it would be supplied to Karnataka while the remaining would be shared among other states. The power purchase agreement was signed between NTPC and electricity supply companies in November 2010.

At present, NTPC has an installed capacity of 36,014 Mw and operates 15 coal-based, seven gas-based and six joint venture power stations. NTPC expects to have a 1,28,000 Mw generation capacity by 2032.

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Govt reviews progress of over 100 coal, lignite blocks…

image The government today reviewed the progress of over 100 coal and lignite blocks allocated to companies, including Hindalco, Essar Power, Jaiprakash Associates, Adani and Power Finance Corporation for captive use, a coal ministry official said.

 
"On the second day of the two-day meeting, the government reviewed the development of coal blocks in various states like 0rissa, West Bengal and Madhya Pradesh among others, where blocks have been allocated to Hindalco, Essar Power, Adani Jaiprakash Associates and Power Finance Corporation and others," the official said.

During the meeting, the Coal Ministry also reviewed the progress of lignite blocks in the state of Rajasthan and Gujarat allocated to companies, including Binani Cement and DCM Shriram Consolidated.

Yesterday, the government had reviewed the progress of coal mines allocated to companies including Tata Steel, Coal India, SAIL, NTPC and JSW Steel, for captive use in Chhattisgarh and Jharkhand.

The progress of coal blocks allocated to others including Jindal Power, Jindal Steel & Power, BALCO and MMTC was also reviewed during the meeting.

Cracking down on those who were sitting idle on blocks allocated for captive use, the Coal Ministry had last year cancelled the allotment to DVC, Andhra Pradesh Power Generation Corporation, Tenughat Vidyut Nigam, Bihar State Mineral Development Corporation and Jharkhand State Electricity Board.

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Coal India workers may get 25% wage hike…

image On the heels of a ‘price rationalisation', Coal India Ltd has reached at a “broad consensus” with the labour unions to enhance workers' salaries by 25 per cent in the forthcoming National Coal Wage Agreement (NCWA)-IX. The new wages will be introduced with effect from July 1, 2011 for a period of five years.

Talking to Business Line after the three-day (January 10-12) joint bipartite consultative committee (JBCC) meeting at Nagpur in Maharashtra, sources said that a formal wage pact in this regard may be entered at the next meeting of JBCC scheduled to be held in Kolkata on January 27 and 28.

Official confirmation on the wage negotiation was not available. CIL enhanced salaries by 24 per cent in the previous five-year pact.

Balance-sheet impact

According to sources, the new wages, if implemented, may impact the CIL balance-sheet to the tune of Rs 5,500-6,000 crore annually, inclusive of all employee-related costs like gratuity, leave encashment and others. The coal major had provided a “lump sum amount” of Rs 756 crore (approximately Rs 3,000 crore on an annual basis) towards the wage pact impact in the second quarter of this fiscal.

Available estimates suggest that the revised coal prices – effected since January 1 – may generate additional resources to the tune of Rs 6,000 crore a year for the company, at the current production level of 431 million tonnes thereby taking care of the wage pact.

Hurdles ahead

According to sources, during the negotiation round at Nagpur, CIL made it clear that the proposed 25 per cent hike should include all major benefits accrued by the workers.

Though both the sides broadly agreed to the formula, a section of unions demanded that workers be offered “perks' on the lines of coal officers. Though the claim (by unions) was countered on the ground that any such formula would force workers to sacrifice ‘overtime benefits', the JBCC decided to form a sub-committee to scrutinise the benefits over and above the regular salaries and wages.

The sub-committee will meet twice on January 18 and 22 before the JBCC enters the final round of negotiation on January 27 and 28.

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