Indian Power Sphere: 2011

December 29, 2011

Monthly Highlights of Indian Power Sector – Nov 11

All India installed capacity at the end of November 2011 (1,85,497 MW): Thermal Coal : 1,02,863 MW (56% of total) Gas : 17742 MW (9.6% of total) Diesel : 1200 MW (0.6% of total) Nuclear : 4780 MW (2.6% of total) Hydro: 38748.4 MW (11 % of total) Other Renewable: 20162 MW (11% of total) (Based...

RPower commissions another 300 MW unit of Rosa Power Project…

According to Sources, Reliance Power Ltd, has commissioned another 300 MW unit of its Rosa Power Project in Uttar Pradesh on 28th December 2011. With this the company’s total operating capacity has became 900 MW. According to RPower, companies total installed capacity will reach at 5000 MW by the end December 2012 which will include...

Adani Power hits 52-week low as expansion plans put on hold…

According to Sources, share prices of Adani Power Ltd (Gujarat based Power Generating company) have been slipped to their 52-week low of Rs 61.50. This was due to the company’s announcement to put on hold its plans for capacity expansion of 6,500 megawatts because of a lack of clarity on coal supplies. Adani Power, currently operates...

RPower in talks with U.S. and Chinese banks to raise debt…

According to Sources, Reliance Power Ltd (RPower), the Reliance Group (ADAG) company is currently approaching banks and financial institutions of United States and China to raise funds for its UMPPs Chitrangi and Tilaiya. As found by Spark, some of the Chinese banks have already funded $1.1 Bn for the Sasan project. Overseas...

November 27, 2011

CERC sets up fund to promote renewable energy projects…

According to reports, the Central Electricity Regulatory Commission (CERC) has set up a renewable energy fund (REF) to promote projects in India. This fund is aimed at compensating states if they fail to meet the target given under their schedule of renewable energy (RE) projects. All RE projects are required to provide a schedule of generation to CERC from 2012. Officials explained REF would bear charges imposed on states hosting...

SunEdison puts seven India projects on the block…

According to reports, SunEdison, a solar power developer and a subsidiary of the US poly-silicon major MEMC, is looking to sell 49 per cent stake – the most allowed under the power purchase agreements – in seven of its solar projects in India. (Each project is under a company and SunEdison wants to sell 49 per cent in each.) Sources close to the development say that a US-based company is in talks with SunEdison for this. Sources...

Suzlon eyes $1-billion worth of new orders every quarter…

Wind power major Suzlon Energy, which recently took complete control of its German subsidiary REpower, has said it will focus on value engineering to remain competitive and has set a target of bagging USD 1 billion worth of new orders every quarter for the next few years. "We are working on value engineering by introducing new products...

KEC International sees 20% uptick in revenue…

Buoyed by the growth prospectus in the power sector in domestic as well as international markets, infrastructure EPC major KEC International said it is eyeing 20 per cent annual growth in revenue this year. "Currently, the power sector is witnessing a slowdown in the domestic market, but there is huge demand in the international market....

PSBs have Rs 2.97 lakh cr loan exposure to power sector…

Public sector banks have extended loans worth over Rs 2.97 lakh crore to the power sector at the end of September quarter, with maximum credit doled out by State Bank of India. Official figures show that 26 state-run banks have a total exposure of Rs 2,97,762.53 crore to the power sector, which is currently grappling with acute fuel shortages...

Coal min opposes proposal for sale of coal by block holders…

The Commission, in a letter to the Ministry last week, had suggested that incentives could be provided to block holders for the development and production from the mines by allowing them to sell coal. "The value of the mineral held by the captive coal holders is very high in terms of today's prices and block holders will be unduly benefited...

November 26, 2011

Hindujas to renew its power foray with Vizag 1040 MW project…

The Hinduja Group plans to renew its thrust into India's power sector with the much delayed Vizag project in India expected to be fully operational by September 2013. The Vizag project picked up steam in 2008, a decade after it was proposed, but was hampered by regulatory issues since. The 1040 MW project, being executed by the group's power sector vehicle, Hinduja National Power Corp, is part of a plan to produce 10,000 MW...

Reliance, Tata Face Energy Caps in $3 Billion Efficiency Market in India…

According to reports, India has set targets for companies including Reliance Industries Ltd. (RIL) and Tata Steel Ltd. (TATA) on energy consumption reductions in preparation for a $3 billion-a-year market for trading efficiency credits. Companies have been notified of their targets and audits of their energy consumption have started, said Ajay Mathur, director of the Bureau of Energy Efficiency. “By mid-2012, we should be able...

Power Finance Corp sets up monitoring cell to keep watch on loan-book…

In the wake up difficulties being faced by the energy sector, state-run Power Finance Corp (PFC) has set up a project monitoring cell to keep an eye on the stressed loan portfolio, a top official said today. "Though the idea of monitoring cell was conceived in 2009, we have recently set up a separate cell for this to better check the progress of the projects to which we have lent money," Monitoring of the projects would be...

Delayed Indian Solar Projects May Lose Contracts, Official Says…

According to reports, two of India’s first solar projects under a state program offering favorable tariffs to build 20,000 megawatts of capacity suffered delays, a ministry official said, adding developers may lose contracts if deadlines are missed. “Two of the projects are behind schedule,” said Tarun Kapoor, who is responsible for overseeing...

November 25, 2011

India to Cooperate with Germany on Energy Sector…

India and Germany have discussed bilateral cooperation in the fields of renewable energy, energy efficiency, solar energy, clean coal technology and carbon capture and sequestration. Some countries are reviewing their nuclear power programmes. Reports indicate that the Governments of Germany and Switzerland plan to phase out nuclear power by 2022 and 2034 respectively. Italy has decided not to reintroduce nuclear power. The demand...

Renewable energy ministry of India seeks 10-fold increase in fund outlay…

According to reports, the renewable energy ministry has sought a 10-fold increase in fund outlay for the next five years. The ministry estimates requirement of Rs 40,000 crore to ramp up its capacity to 30,000 mw by 2017. An outlay of Rs 4,000 crore was earmarked for development of renewable energy in the 11plan period of 2007-12. India’s present renewable energy capacity is over 20,000 mw of which wind farms alone generate 14,000...

Moser Baer emerges as 1st solar PV manufacturing company globally to be accredited with ‘Green Leaf Mark’ certification…

Moser Baer Solar (MBSL), a subsidiary of Moser Baer India has been awarded ‘Green leaf’ Mark by Intertek AB Semco, Germany for its latest Max Series ‘Lead free’ solar PV modules. Intertek’s Green Leaf Mark certifies that this product has been independently tested and found to conform to the multiple existing environmental regulations, such as RoHS laws, REACH and Eco Design. With this MBSL has been accorded the rights to display...

Karnataka Renewable Energy receives 22 bids for setting up solar projects…

Karnataka Renewable Energy Development Ltd (KREDL) has received 22 bids for setting up solar power projects under the ‘Karnataka solar policy’. Today was the last day for submitting the bids. Mr N S Prasanna Kumar, Managing Director, KREDL, said. As part of its 350 MW programme, KREDL had floated a tender inviting bids for setting up projects that total to 80 MW. The projects would be allocated under ‘reverse bidding’...

Petroleum Ministry may block domestic gas supply for merchant power plants

The Petroleum Ministry has proposed that domestically produced natural gas should not be supplied to power plants that do not sell electricity to state-run power utilities at regulated rates. “There is no proposal before the government to ban gas supply to merchant power plants,” the Oil Minister, Mr S. Jaipal Reddy, said in a written reply to a question in Lok Sabha. “However, there is a proposal in which domestic gas...

NTPC gets approval to exit International Coal Ventures consortium…

The power ministry has approved NTPC Ltd’s proposed exit from International Coal Ventures Pvt. Ltd (ICVL), in a move that could hurt India’s efforts to acquire overseas coal assets. ICVL was promoted by five state-owned firms two years ago to buy coal mines overseas. While Steel Authority of India Ltd (SAIL) and Coal India Ltd own 28% each of ICVL, NTPC, Rashtriya Ispat Nigam Ltd and NMDC Ltd own 14% each. The 14% share...

Financial Tech launches 5 new energy exchange solutions

Financial Technologies (India) Ltd (FTIL) on Thursday said it has launched five new software solutions in the power trading arena. A leader in multi-asset and multi-currency trading and settlement solutions, the company launched its PowerARMS, Tradedart, TSO Computation System, Registry and ECS (Exchange Customisation Services) offerings in the Indian market, which are capable of allowing global power exchanges to operate...

Power companies fail to lift e-auctioned coal - 50 lakh tonnes of coa l offered by CIL in October remains unused

A recent and shocking development in the Indian coal sector has brought planners and bureaucrats face-to-face with the stark policy conundrum afflicting the sector. It also brought to the fore the criticality of coal as an input for key infrastructure industries in the power, steel, sponge iron, cement and fertiliser sectors. It all began last week when cabinet secretary Ajit Kumar Seth was chairing a high-level meeting...

November 24, 2011

Karnataka to start allocation of 400-MW grid-linked solar projects in six months…

According to reports, grid-connected solar power generation is set to get a boost in Karnataka in about six months as the State is expected to start allocation of 400-MW grid-connected solar power generation projects by then. Disclosing this at an interaction meeting with the Federation of Karnataka Chambers of Commerce and Industry (FKCCI)...

PFC hopeful of over 20% loan growth despite sector woes…

State-owned Power Finance Corporation (PFC) is hopeful of posting a loan growth of over 20 percent in the current fiscal despite the regulatory concerns relating to the energy sector. "We will stick to our previous guidance and are hopeful that loan disbursements will be healthy in the current fiscal," PFC finance director R Nagarajan told...

CER prices fall, feel European crisis pressure…

The price of CER certificate on the Intercontinental Exchange (ICE) has halved from $18.52 a tonne in May-end to $9.21 this week. This is a fallout of the lack of demand coupled with economic turmoil in the European market, a major buyer of the CER certificates. On November 3, CER prices on ICE touched their life-time low of $8.78 a tonne....

GMDC to commission 100MW wind projects in 2011-12…

GMDC, a minerals major has already chalked out plans to add about 40 megawatt (MW) of wind power generation capacities to its existing 60 MW capacities in the current financial year. In september this year, state mineral and mining PSU Gujarat Mineral Development Corporation (GMDC) said it will set up a 5 MW solar plant on the reclaimed...

November 23, 2011

Shares of power cos take a beating as bank loans to discoms dry up…

Alarmed by the critical financial condition of state-owned power distribution companies, investors have started dumping shares of power companies putting downward pressure on their prices. The decline in power companies' share prices is much steeper than the general fall in stock prices. This is evident if one goes by the NSE's infrastructure index which comprises power companies. The hardest hit are companies engaged in...

Private sector drives power capacity additions - Adds more than the Central and State utilities combined…

Fuel shortages and funding woes notwithstanding, private sector developers accounted for much of the power capacity addition that has taken place so far this fiscal. During April-October 2011, the private sector added 4,301 MW, more than what was added by the Central and State sector utilities put together. The continued hold-up at the near-complete Kudankulam nuclear power units, though, could ensure that the actual capacity...

India plans to sell 500MW electricity to Pakistan : Two countries scheduled to meet next month to finalise tariff and grid connectivity…

India plans to sell 500 megawatts power to Pakistan, according to an Indian newspaper. Officials of the two countries are scheduled to meet next month to finalise the t ariff and grid connectivity. Electricity trading with Pakistan is part of a larger plan of a South Asian transmission link, which will help countries in the subcontinent harness energy potential of the region, it said. "The two countries have reached a...

Chhattisgarh to stay power-cut-free state for 20 yrs: Raman Singh, Chief Minister…

Providing the cheapest energy to consumers, mineral-rich Chhattisgarh will remain a no-power-cut state for the next 20 years, Chief Minister Raman Singh has said. "There is no power cut (today) and there will be no power cut in Chhattisgarh in the next 20 years - be it industry, agriculture or domestic sector," Singh said. The young state, which was created out of Madhya Pradesh eight years ago, would add power generation...

Power situation improves in Orissa, yet 3-hour cut must…

The deficit energy situation in the State leading to unscheduled and frequent power cuts has, in the meantime, improved to some extent with the Energy Department now holding that to manage the situation for a few days more it has to continue with minimum three hours of power cut daily - two hours during day time and one hour at night. The problem started with drastic reduction of power generation at the thermal power units...

'Civil nuclear deal key to India-US prosperity'…

Observing that completing the civil nuclear deal is central to the long-term prosperity of India-US relationship, the Obama Administration said ensuring a level-playing field for its companies in India's civil nuclear industry is its top priority. "Completing the US-Indian civil nuclear cooperation partnership is central to both our nations' long-term prosperity and India's future energy security," the State Department...

CIL appoints PFC to select a suitable partner and operator for its proposed 1,600-MW power project in Orissa…

Mining major Coal India said it had appointed the Power Finance Corporation to select a suitable partner and operator for its proposed 1,600-MW power project in Orissa. "We have appointed PFC to identify a partner for management of power plant at a tariff based pricing system," Coal India (CIL) Chairman N C Jha said. "We are looking for a 50:50 JV with the partner," he added. CIL had mooted the 1,600-MW coal-based...

Chhattisgarh to add 1,500 MW by 2012 - To raise its power generation capacity to 3,424 MW from the current 1,924 MW…

Coal-rich Chhattisgarh will add 1,500 MW electricity by 2012 that will raise its power generation capacity to 3,424 MW from the current 1,924 MW, official sources said on Tuesday. "The work on 1,000 MW power project at Marwa-Tendubhata in Janjgir district and 500 MW Korba West power project are going on at war-footing and both projects will begin generation by 2012. It will raise Chhattisgarh Government's power generation...

Coal India open to utilise up to one-fourth of its projected Rs 600 billion cash reserve as of March 2012…

Coal India Ltd has told the Union Government that it is open to utilise up to one-fourth of its projected Rs 60,000 crore cash reserve as of March 2012, to help the Centre mitigate the fiscal deficit; provided the company is 'assured' of a return, not less than the existing interest income from such reserves. CIL earned an int erest income of nearly Rs 1,800 crore in the July-September 2011 quarter from a cash reserve...

November 22, 2011

Suzlon gets 23 mw worth wind turbine order from Gail India…

Suzlon Energy has received an order from Gail [India] to supply 11 wind turbines with a total 23 mega watt capacity to enhance the gas utility's captive power requirements. This is the fourth order that Suzlon has received from Gail and the turbines will be commissioned in the states of Tamil Nadu and Karnataka by the end of the current financial year [2011-12], the company said. Following this order, Gail's total wind power capacity...

150 MW solar power plant to be set up at Dhule soon…

A 150 MW solar power plant will be set up in Dhule with financial assistance of Euro 250 million from KFW, a German investment bank. The project is claimed to be one of the biggest in the country. Speaking to TOI on conditions of anonymity, a senior director from Maharashtra State Power Generation Company Ltd said, "This would be one of the first solar power generation plants for which finance is coming from abroad. The...

Sunborne Energy mulls Rs 6 billion solar thermal plant in South India…

Sunborne Energy, a Haryana-based solar power producer backed by General Catalyst Partners and Khosla Ventures, is contemplating setti ng up a 50-Mw solar thermal power project in Andhra Pradesh for an investment in the range of Rs 500 crore and Rs 600 crore (including land cost). The company has already acquired 200 acres in Andhra Pradesh and is now trying to work it out with the state government to set up the plant....

Green Infra commissions 10-MW solar plant in Gujarat…

Green Infra Ltd, a renewable energy-focused power generation company, has commissioned its first 10-megawatt (MW) solar photovoltaic (PV) power plant in village Mervadar in Rajkot district of Gujarat. The company invested Rs 130 crore in the facility and has commissioned it ahead of its schedule, according to a release. This is the first solar plant to be commissioned under the second phase of Gujarat's solar policy, Mr...

PFS sanctions Rs 7.16 bn to 4 power projects…

PFS has sanctioned financial assistance aggregating to RS 7.16 billion to 4 power projects in the current quarter taking the aggregate amount of loan sanctions to Rs 22.55 billion till date in FY12. This exceeds the aggregate amount sanctioned during the entire FY11 which was Rs 16.58 billion. Similar growth momentum has also been maintained in different key parameters of the company. The gross revenue rec orded in H1...

PTC India Financial Services eyes Rs 500 million from stake sale in energy exchange…

Infrastructure lender PTC India Financial Services (PFS) expects to garner as much as Rs 50 crore from sale of over 16% stake in the country's largest power bourse, Indian Energy Exchange (IEX). PFS, which currently holds 21.12% stake in the power exchange, would probably divest more than 16% to one or more overseas players, sources said. On a conservative basis, the divestment of over 16% stake is expected to mop up about...

Neyveli Lignite set to light 250 MW unit…

Integrated mining-cum-power generation company Neyveli Lignite Corporation (NLC) is planning to light up one of the two 250 MW Circulating Fluidised Bed Combustion (CFBC) boilers Friday, said a senior official. "We are planning to light one of the boilers Nov 25. We hope to generate 150 MW initially and gradually increase that to the full capacity," an official told media preferring anonymity. According to officials, the...

NTPC floats tender for importing 4 million tonnes of coal - Move to bridge shortfall in domestic supplies…

NTPC Ltd has floated a tender on Monday for importing 4 million tonnes of coal to bridge the shortfall of the fuel from domestic sources. The country's biggest power producer has decided to import the coal directly, rather than depend on designated trading agencies, to cut down on delays. Coming at a time when the rupee has weakened sharply against the dollar, higher coal imports by NTPC could spell bad news for consumers...

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