Adani Power Limited, the power sector arm of India's leading integrated infrastructure conglomerate the Adnai Group, has commissioned a 40 MW Solar PV Plant on 6th January 2012 in the Kutch district of Gujarat.
April 30, 2012
Imported Coal Transportation getting preference by Indian Railways…
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Power India found that the movement of coal to thermal power plants including movement of imported coal is accorded preference by the Indian Railways over similar cargo moving to other customers. The Railways have been successful in meeting the demand for movement of imported coal to thermal power plants.
As per Central Electricity Authority (CEA) reports, coal imports to thermal power plants which were at a level of 3.6 million tonnes in the year 2001-02 have increased to a level 45.549 million tonnes in 2011-12, out of which approximate 14.262 million tonnes were moved to shore based power plants which did not require movement by rail. Out of the balance 31.287 million tonnes coal which was imported, the railways evacuated 30.897 million tonnes and only 0.390 million tonnes were available at the ports.
The capacity of the Railways is adequate to meet the demand for imported coal barring seasonal bunching of imported coal at ports. This has been made possible by a proper planning process wherein a logistics plan linking various ports to various plants has been formulated.
Adequate measures are being taken by Railways to ease evacuation/transportation of coal on Indian Railway Network. A total of 3077.46 kilometres of new lines, doubling and gauge conversion at cost of Rs. 17988.82 crore have been sanctioned and are in various stages of progress for primarily coal bearing routes. This excludes projects being undertaken on deposit term basis from coal companies.
In addition, the Eastern and Western Dedicated Freight Corridors which are slated to come up by the terminal year of the 12th Plan will primarily cater to both domestic and imported coal movement on the Eastern sector and imported coal movement on the Western sector. In addition, the Railways are substantially increasing their fleet of rolling stock to meet coal movement. In the year 2011-12, 11683 number of coal loading wagons were inducted into Indian Railway. Moreover, the wagons being inducted are cleared for higher pay load and speed.
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Power India – A popular blog on Indian Power Sector
Wind Farms can increase the land surface temperature; a study by University of Albany…
Power India found that according to a study done by the researches at University of Albany in affiliation with USA Research Associations the large scale wind farms can increase the surface temperature by around 0.72 °C per decade.
The wind industry in the United States has experienced a remarkably rapid expansion of capacity in recent years and this fast growth is expected to continue in the future. While converting wind’s kinetic energy into electricity, wind turbines modify surface–atmosphere exchanges and the transfer of energy, momentum, mass and moisture within the atmosphere.
These changes, if spatially large enough, may have noticeable impacts on local to regional weather and climate.
The report has presented observational evidence for such impacts based on analyses of satellite data for the period of 2003–2011 over a region in west-central Texas, where four of the world’s largest wind farms are located.
The results show a significant warming trend of up to 0.72 °C per decade, particularly at night-time, over wind farms relative to nearby non-wind-farm regions. This can be attributed to wind farms as its spatial pattern and magnitude couples very well with the geographic distribution of wind turbines.
MORE RESEARCH NEEDED
But the researchers said more studies were needed, at different locations and for longer periods, before any firm conclusions could be drawn.
Scientists say the world's average temperature has warmed by about 0.8 degrees Celsius since 1900, and nearly 0.2 degrees per decade since 1979. Efforts to cut carbon dioxide and other greenhouse gas emissions are not seen as sufficient to stop the planet heating up beyond 2 degrees C this century, a threshold scientists say risks an unstable climate in which weather extremes are common.
The Texas study found the temperature around wind farms rose more at night, compared with nearby regions. This was possibly because while the earth usually cools after the sun sets, bringing the air temperature down, the turbulence produced by the farms kept the ground in their area warm.
Previous research in 2010 by other US scientists found wind farms could make the nights warmer and days cooler in their immediate vicinity, but those effects could be minimised by changing turbines' rotor design or by building the farms in areas with high natural turbulence.
That research was based on evidence from two meteorological towers over a six-week period.
Although the warming effect shown in that study and the latest research is local, and small compared to overall land surface temperature change, the findings could lead to more in-depth studies.
The authors of the study released on Sunday said: "Given the present installed (wind farm) capacity and the projected installation across the world, this study draws attention to an important issue that requires further investigation."
"We need to better understand the system with observations and better describe and model the complex processes involved to predict how wind farms may affect future weather and climate."
Commenting on the study, Steven Sherwood, co-director of the Climate Change Research Centre at the University of New South Wales in Australia, said: "Daytime temperatures do not appear to be affected. This makes sense, since at night the ground becomes much cooler than the air just a few hundred metres above the surface. The wind farms generate gentle turbulence near the ground that causes these to mix together, thus the ground doesn't get quite as cool."
Research in the United States may cast a shadow over the long-term sustainability of wind power.
The complete report can be downloaded from the following link.
http://www.nature.com/nclimate/journal/vaop/ncurrent/full/nclimate1505.html
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Stock updates of various Power Companies–April 30, 2012…
Alstom T&D has gained 2.87 percent to Rs 162 per share after the company informed BSE that it has won a 400 kV substation contract worth 840 MINR from Chhattisgarh State Power Transmission.
RPower gains 6% after govt reprieve on coal use
Reliance Power has jumped 6 percent to Rs 107 per share after the company got a reprieve on Saturday as a ministerial panel under finance minister Pranab Mukherjee upheld a decision that allowed the company to use excess coal from Sasan power project’s mines to fuel its Chitrangi generation plant.
BHEL plunges as Rajasthan scraps Rs 12k cr tender
Reports have also stated that the Rajasthan government has scrapped tenders worth Rs 12000 crore that were bagged by Bharat Heavy Electricals Ltd (BHEL) more than a year. The stock is down 2 percent today at Rs 223.20. Reports stated that Rajasthan Rajya Vidyut Utpadan Nigam Ltd has scrapped EPC (engineering, procurement and construction) tenders for the upcoming supercritical units of the Suratgarh and Chhabra thermal power stations.
Other Updates
Meanwhile, the results to be announced today include Ajmera Realty, Alstom T&D, Bank of India, Dabur India, Exide Industries, Godrej Consumer, JSW Energy, Procter & Gamble, Punj Lloyd, Titan Inds, Vijaya Bank and United Phosphorus, Hinduja Ventures.But the mixed earnings announcement kept the markets in tizzy and turned the trade volatile, while ICICI Bank surprised the street with its better than expected numbers. However, at the same time, Hindustan Construction (HCC) came up with a dismal number, reporting greater than expected net loss for the final quarter.
The power sector is likely to be in focus today as Tata Power has independently secured a favourable legal opinion over the legality of a government decision allowing Reliance Power to divert surplus coal from the captive mines associated with its Sasan ultra mega power project.
Tata Power is up 1.1 percent while Reliance Power is up 6 percent today.
Courtesy: First Post
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Tamil Nadu proposed a policy to encourage renewable energy and energy efficiency in the state…
Power India found that, the Tamil Nadu Government has drawn up plants to encourage energy efficient systems using solar and other forms of energy in the coming months and issued proposals that include provision of subsidised solar pumps, generation based incentive scheme for domestic solar roof tops, besides presenting awards to those who use solar power lights effectively.
According to the policy note following incentives have been proposed:
- "Generation Based Incentive” (GBI) for domestic solar roof-tops for a total maximum capacity of 50 MW during this financial year.
- Subsidised Solar Pumps (86 per cent subsidy-- 56 per cent from Ministry of Agriculture and 30 per cent from the Ministry of New and Renewable Energy) on a pilot basis to select applicants for agriculture service connections.
- The Government has also planned to recognise usage of solar roof-tops by presenting the Chief Minister's Awards which would be given annually to different categories of consumers generating maximum solar energy. A 60kW roof-top solar power plant at the Electricity Board office headquarters here would also be set up for promoting solar energy.
- Distribution of one crore CFL lamps at a subsidised cost of Rs 15 per bulb to achieve a savings of around 250MW at a cost of Rs 85 crore.
- Mandatory usage of energy efficient agricultural pump-sets (having a minimum three star label) for new connections. "The Government is also planning to set up a demonstration project by erecting star-rated energy efficient pump sets in a select feeder on pilot basis".
For this year, under Chief Minister's Solar powered Green Houses Scheme, the government would add 60,000 solar energy powered green houses at a cost of Rs 180 crore. This scheme was the first such in India with a grid back-up.
On the proposal to energise solar energy powered street lights in 2012-13, the policy note said 20,000 more street lights will be solar powered at a cost of Rs 50 crore.
According to the Vision Tamil Nadu 2023 document released by Chief Minister Jayalalithaa in March, the government expects Rs 4.50 lakh crore investments to be made in the power sector. "The major share of the investments amounting to Rs 2.80 lakh crore will be utilised to augment power generation capacity in the State", the document said.
According to energy department sources, the present installed capacity of the State is 10,364.5 MW. The average availability of power is 8,500 MW. Demand ranges from 11,500 MW-12,500 MW, leaving a shortage of 3,000 MW to 4000 MW.
As part of tapping other energy sources, the State government has planned to increase capacity of wind power to 5000 MW at a rate of 1000 MW per year in the next five years.
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Power India – A popular blog on Indian Power Sector
IEEE formed a Standards Interest Group in Bangalore and shared views on grid situation of the country…
Power India found that IEEE Standards Association (IEEE-SA) the world’s largest technical professional association, has formed IEEE Standards Interest Group (SIG) in Bangalore for India.
The IEEE SIG provides a platform for the Indian technical community to participate in global standards development including those for Smart grid, conducts outreach programs and Smart grid workshops across various cities in India deliberating the role of standards and challenges in the Indian context.
Mr. Srikanth Chandrasekaran, Chairman, IEEE SIG for India shared his views on smart grid and the benefits that his organisation and bring to the country.
Query: Considering the huge T&D losses, how significant a role can IEEE Standards Interest Group (SIG) play in helping the country?
IEEE Standards Interest Group (SIG) is working to partner with government and industry bodies in the country and engaging India’s professional technical communities, while leveraging IEEE-SA’s expertise and experience in global standards development to accelerate the process of establishing standards relevant to the Indian smart grid market.
IEEE-SA has launched key standards and guidelines such as the IEEE 2030 TM Smart Grid Interoperability Guide, the first such standard that aids interoperability of energy, information and communications technologies; IEEE 1701 TM IEEE 1702TM, and IEEE 1703TMadvanced Smart Metering Standards; IEEE 1547.4 TM, the first guide for implementation of Microgrids; and the IEEE 1901 TM standard for Broadband over Power Line.
Query: Comment on the awareness in the country about smart grid?
India is on the right path. The government of India’s R-APDRP is a good first step for successful implementation of the smart grid in the country. The program is designed to take three to five years to implement across parts of India. However, successful and complete implementation of the smart grid is not going to be an easy task as the Indian power sector poses a number of barriers.
The utility industry is capital-intensive but has been suffering losses due to theft and subsidisation. IEEE-SA is working to partner with government and industry bodies in the country and engaging India’s professional technical community, while leveraging its expertise and experience in global standards development to accelerate the process of establishing standards relevant to the Indian Smart grid market.
Utilities and distribution companies have limited experience in communication technologies, needed to manage critical components of the Smart grid. Also, if India’s utilities are to take an active part in designing and implementing IT and Smart grid projects, they must acquire the skills required to take over operation and maintenance.
The most overlooked component of Smart grid implementation is the education of consumers and what this means to them. It is important to build awareness to create an understanding of Smart grids, the associated benefits and the potential implementation issues.
For complete and successful implementation of the Smart grid, India needs a national vision and a flexible plan. The country needs to develop policies and regulations to create a receptive environment for Smart grid by encouraging innovation, establishing standards for interoperability and allowing market-oriented solutions.
Query: With its diversity and traditional practices, how can the smart grid help India in curtailing losses?
Smart grid technology can help us reduce the electricity transmission and distribution losses and electricity theft by 5 to 10 per cent annually.
Without Smart grid, India will not be able to keep pace with the growing needs of its cornerstone industries and will fail to create an environment for growth of its high technological and telecommunications sectors.
Smart grid implementation is not going to be an easy task since the Indian power sector poses a number of barriers such as minimise transmission and distribution losses, power theft, inadequate grid infrastructure and low metering efficiency.
The power industry has reached a stagnation point, and needs a complete switch to the next generation, that is automation. Moreover, as the technology is considered premium, its implementation in the Indian industry has been a bit slower than expected.
In spite of the monetary issues, power utilities need to begin with basic automation systems, eventually upgrading to advanced systems.
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Power India – A popular blog on Indian Power Sector
Around 33 power plants have registered PLF of more than 90% during March 2012…
Power India found that around 33 Thermal Power Stations (TPSs) with an aggregate installed capacity of around 33,332.5 MW across the country have registered a Plant Load Factor (PLF) of more that 90% during the month of March 2012.
Out of these 33 TPSs around 12 TPSs are run by Central Generating Stations (CGSs), 12 are run by State Generating Stations (SGSs) and remaining 9 are run by Private Companies.
The data of PLFs of some of the TPSs as gathered from Central Electricity Authority (CEA):
- Dahanu TPS (500 MW) - 104.18% PLF
- OP Jindal TPS (1,000 MW) - 102.78% PLF
- Unchahar TPS (1,050 MW) - 101.18% PLF
- Bhilai TPS (500 MW) - 100.18% PLF
- Talcher STPS (3,000 MW) - 99.84% PLF
- Ramagundem STPS (2,600 MW) - 98.85% PLF
- Rihand STPS (2,000 MW) - 98.83% PLF
- Kota TPS (1,240 MW) - 98.72% PLF
- Korba-West TPS (840 MW) - 98.76% PLF
- Rayalaseema TPS (1,050 MW) - 94.74% PLF
- Vindhyachal STPS (3,260 MW) - 94.32% PLF
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Power sector (Transmission Segment) Performance during FY 2011-12; gains momentum in Q4 to make up for lost ground…
Power India found that the country has managed to surpass the target for new transmission lines by 0.22% during the year 2011-12. A total of 19,847 ckm transmission lines have been laid against the target of 19,792 ckm.
- While the country missed its targets for the first three quarters of the fiscal, the sector`s good performance during the fourth quarter helped overcome the shortfall and exceed the yearly target.
- Only 10,995 ckm, of the proposed 13,392 ckm, of lines were laid till the end of Q3, whereas 8,852 ckm lines were added in the last quarter alone against a target of 6,400 ckm.
- In terms of the achievement rate, the state sector fared much worse than its counterparts and fell short of its target by 16%. The central and private sectors exceeded their targets for the year by approximately 15% and 7.5%, respectively.
- The shortfall in the state sector occurred primarily due to severe right of way (RoW) problems, delay in grant of forest clearances and filing of cases in civil courts by affected farmers.
- Five states, namely -- Uttar Pradesh, Chhatisgarh, Karnataka, Tamil Nadu and Kerala -- account for the majority of the shortfall.
- Overall, 5,528 ckm of 220 KV lines, 10,931 ckm of 400 kV lines and 1,408 ckm of 765 kV lines were laid during the year.
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Power India – A popular blog on Indian Power Sector
Power Sector (Generation Segment) Performance during FY 2011-12; electricity generation surpass targets…
This is a welcome reversal of trend in the power sector. It witnessed only 60% target achievement during FY 2010-11.
- The capacity addition target for last year was pegged at 17,601 MW, which included 5,725 MW by the central sector, 4,266 MW by the states and 7,610 MW by the private sector.
- With regard to the actual achievement, totaling 20,501.7 MW, the sector-wise break-up works out to be 4,770 MW for the center, 3,761.2 MW for the state sector and 11,970.5 MW for the private sector.
- During the 11th five year plan, a total capacity of 54,964 MW, or 260% of the capacity added during the entire 10th plan, has been achieved in the country.
- Further, 102.51% of the electricity generation target of 855 billion units (BU) was met during the year 2011-12. The electricity generated in the fourth quarter was 222.41 BU, which was 6.029 BU greater than the estimate.
- The sector-wise break-up of the power generated during the last fiscal was 369.31 BU for the centre, 367.57 BU for the state sector and 139.56 BU for the private sector.
Source:CEA
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Power India – A popular blog on Indian Power Sector
Stock updates of Power Companies to bet upon…
Despite the additional capacity planned, revenue and profits might not improve significantly if coal production and supply is not ramped up by Coal India.
Many of the private players have issues with their upcoming or current projects. While JSW Energy has high proportion of un-tied power which is dependent on merchant tariffs, Adani Power's reliance on imported coal for existing projects is a negative.
Similarly, Tata Power's Mundra project and Reliance Power's Krishnapatnam project are locked at fixed tariffs which does not allow them to pass on the rise in fuel costs.
Reliance Power's 2,400-MW Samalkot project is yet to get gas allocation and with falling gas output in the KG D6 basin, the payback period may be pushed further. Adani Power also has bid for fixed tariffs for most projects and is exposed to fuel risk.
Lanco Infratech is trading at less than its book value due to legal problems abroad, thanks to its coal asset acquisition last year. The coal assets, which require sizeable investments, may also be a drag on its profitability.
In the Twelfth Plan, almost 38,548 MW or 60 per cent of the coal-based projects to be commissioned are expected to rely on coal supply from Coal India.
Another 6,292 MW of capacity is expected to be fuelled by coal imports. These projects may have to operate at sub-optimal load factors if Coal India doesn't supply the agreed quantity, or due to increased cost of imported coal.
Adani Power, Tata Power and Reliance Power are trading at price-to-book values of 2.34 times, 1.92 times and 1.6 times, respectively.
This is not significantly lower that the historical book-value range of 2 to 3 times for these companies. But given the clouded outlook, these valuations leave little room for stock price appreciation.
Bet on Regulated players
Investors who want to take exposure to power sector can go in for regulated players in the generation space, such as NTPC.
It is the largest player in the power generation space with capacity exceeding 35,000 MW. The company expects to add another 31,000 MW by 2017.
A cost-plus model that allows it to pass on most expenses, fuel security and high internal accruals, make it a good bet in the utility space.
The company has signed power purchase agreements (PPAs) for 1,00,000 MW amounting to three times the current installed capacity that secures its revenue stream.
Playing the power sector theme indirectly can also be considered.
Power Grid Corporation, can be a big beneficiary of the capacity additions planned in the upcoming years. And the company does not have to deal with fuel supply risk.
Over the next five years, the company is expected to invest as much as Rs 1 lakh crore in rolling out transmission corridors and strengthening its grids.
PGCIL has already awarded contracts worth Rs 55,000 crore towards this, lending visibility to upcoming projects.
Power Finance Corporation is another company which will benefit from the Twelfth Plan capacity addition.
The total fund requirement from PFC, which predominantly finances generation assets, is estimated at Rs 1.78 lakh crore.
Even if there are slippages in terms of capacity additions, the fund requirement is far higher than the current loan book of PFC which is outstanding at Rs 1.18 lakh crore.
Trading at slightly higher than book value, the stock looks reasonably attractive.
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Power India – A popular blog on Indian Power Sector
Source: Business Line
India achieved 89% target of National Solar Mission Phase I with commissioning of 125 MW Solar Projects out of total 140 MW…
According to NTPC Vidyut Vyapar Nigam (NVVN), which executes the bidding and trades power with the developers, it could have been 100% if hiccups like allegations against Lanco and delays by some other developers had not taken place.
The NVVN had signed power purchase agreements (PPA) with 28 solar power developers for 140-MW solar photo voltaic (PV) projects in January 2011, out of which 125-MW of capacity stands commissioned currently.
According to Mr. Tarun Kapoor, Joint Secretary, Ministry of New & Renewable Energy;
"The progress so far is very good as most of the projects are commissioned. The delayed projects have been given one month extension with a part of their bank guarantee encashed,"
For solar thermal sector, power purchase agreements were signed for 27 projects for a capacity of 470 MW in batch 1. They would be commissioned by May 2013.
One of the major participating companies in the mission, Lanco Infratech recently faced allegations irregularities such as creating front companies. The investigative report on the matter will soon be presented, officials said.
The solar PV projects under batch 2 of phase 1, with the selected capacity of 340 MW, signed the PPA in January this year and will commission by February 2013. These projects are highly awaited as this round of bidding saw some big names in the solar energy market quoting tariffs as low as Rs 7.49/unit.
"The projects under batch 2 are under construction and we are hopeful that they will start commissioning in time," said Kapoor. The ministry also hopes to achieve grid parity in next five years. Mission statement has set a target to achieve 20,000 MW of solar generated power by 2020.
The total installed capacity of solar generated power in the country stands at 503.9 MW so far. The total investment, as estimated by the ministry is about Rs 6,000 crore.
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Power India – A popular blog on Indian Power Sector
April 29, 2012
Tenders of 2460 MW of Suratgarth & Chhabra Thermal Plants worth Rs. 12,000 Crs scrapped by RUVNL…
Rajasthan Vidyut Utpadan Nigam Ltd (RVUNL) the state government company has a year ago issued tenders for super critical projects at Suratgarth and Chhabra Thermal Power stations having total capacity of 2,640 MW. The tenders were for design, engineering, manufacture, assembly, testing at works, supply, civil structural and architectural works, erection, testing and commissioning of main plant and balance of plant on EPC basis.
During the bidding process BHEL has emerged as the lower bidder followed by BGR Energy as second lowest bidder in the month of January 2011. Power India found that RUVNL has again initiated price renegotiations with BHEL in January 2012. After that extensive discussions were happened between RUVNL and BHEL.
However, on April 25, 2012 cancellation letters were sent without assigning any reasons.
The development was took place at a time when BHEL is grappling with slowdown in its order book.
Owing to an overall sluggishness in the power sector, the company's order book more than halved to Rs 22,096 crore last fiscal compared to 2010-11 period.
The scrapping of the tenders would delay the setting up of two projects in Rajasthan, which is grappling with power shortage. At present, RUVN has an installed capacity of 4,097.35 MW.
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Power India – A popular blog on Indian Power Sector
Single Window Clearance Authority to decide on electricity duty exemption for Jayashree Chemicals…
Power India found that the State Level Single Window Clearance Authority (SLSWCA) will decide on the issue of electricity duty exemption for Jayashree Chemicals Ltd, the only manufacturer of caustic soda in Odisha.
Burdened by the steep cost of electricity which accounts for 60 per cent of its production cost, the company had sought waiver in electricity duty for a period of 10 years. The hike in power tariff announced recently by power regulator-Odisha Electricity Regulatory Commission (OERC) had nullified the power conservation efforts of the company which was achieved through installation of membrane cell technology.
At a recent meeting held under the chairmanship of Chief Secretary on grant of incentives to Jayashree Chemicals, the state government asked the company to submit a separate proposal, substantiating its plea for the duty waiver. The proposal would then be considered by SLSWCA.
The company said its financial position did not permit it to set up a captive power plant.
The state government, has however, decided to offer exemption on value added tax (VAT) on incremental production of the company. Jayashree Chemicals had ramped up caustic soda production capacity of its plant at Ganjam in south Odisha from 22,500 tonnes per annum (tpa) to 53,200 tpa. The company had also invested Rs 150 crore on switching over to membrane cell technology from mercury cell technology.
The company which is engaged in the manufacture of caustic soda, liquid chlorine, hydrochloric acid and sodium hypo chlorite counts Emami Paper Mills, Ballarpur Industries Ltd, J K Paper, Hindalco Industries and National Thermal Power Corporation (NTPC) as its major clients.
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Power India – A popular blog on Indian Power Sector
Tata Power got legal opinion to strengthen it case of captive mines…
After Reliance Power, the company’s arch rival, Tata Power, too, has independently secured a favourable opinion from the country’s top legal brains, including retired Chief Justice of India M N Venkatchaliah and former Solicitor General Dipankar Gupta, over the legality of a government decision allowing Reliance Power to divert surplus coal from the captive mines associated with its Sasan ultra mega power project in Madhya Pradesh.
The opinion given to Tata Power runs contrary to what legal experts have told Reliance Power on their private initiative aimed at strengthening the case on coal diversion. The two companies, which are engaged in a legal battle where Tata Power has challenged the government’s decision in the Supreme Court, are likely to use the legal opinion they secured to strengthen their respective cases ahead of the Saturday’s ministerial panel meeting.
The empowered group of ministers (EGoM) has been convened to examine the official opinion from the Attorney General. At its December meeting, the group headed by finance minister Pranab Mukherjee, had decided to seek fresh legal opinion from the AG Goolam E Vahanvati to defuse the controversy arising from the group’s earlier in-principle decision in 2009 to allow Reliance Power to divert surplus coal following adverse remarks made in a draft report of the Comptroller and Auditor General (CAG) that said that decision meant windfall gain for Reliance Power.
In the opinion given to Tata Power, legal experts have termed the EGoM permission as ‘ultra vires’ as the decision with regard to diversion of coal went against stated policy for allocation of coal blocks. Both Venkatchaliah and Gupta have also said that a change in the terms and conditions of the bid for UMPP in the immediate aftermath of the completion of the bidding process would in effect amount to changing the terms and conditions of the bidding process itself, which is also violation of Article 14 of the Constitution and also arbitrary and unreasonable.
“Tender documents should not be designed to encourage speculation. The allocation of the coal mines is intertwined with the Sasan project and cannot be used for any other project. The permission given by EGoM has augmented the right of the successful bidder for incremental coal. It is ultra vires of the specific provisions of the statute, rules, and the policy governing allocation of coal, and also altered the bid conditions,” Venkatchaliah said in his opinion given to Tata Power.
Tata Power is fighting the issue not solely on government’s decision to allow for diversion of surplus coal, but also the changes the decision made in the bidding condition finalised for Sasan power projects where the company had emerged with the second best bid after Reliance Power. The company has said that as bid conditions were changed after completion of process, fresh bidding for the project should be undertaken with explicit permission on diversion being included in the bid document.
“…In any event, the alterations in the terms and conditions of the contract, which was the subject matter of the tendering process is itself arbitrary, unreasonable and intended to grant undue favours to private parties and against public interest,” Gupta said.
“Tata Power would have a cause of action to file a writ petition under Article 226 for quashing of the award of Sasan UMPP and/ or in any event the grant of permission to use coal from the Captive Coal Mines linked to Sasan UMPP for other projects of RPL, which would have a reasonable chance of success,” Gupta added.
The views given to Tata Power run contrary to views given by legal experts to Reliance Power. Retired chief justices AS Anand and AM Ahmadi and former attorney general Soli Sorabjee in their respective opinion’s have said that there was no violation of Sasan UMPP bid conditions and have cautioned that the cancellation would amount to violation of the principle of promissory estoppel.
The issue between two private sector power entities involves a decision taken by an EgoM in 2009. The group had allowed Reliance Power (RPL), the successful bidder of the Sasan UMPP, to use surplus coal from the Sasan block for another 4,000 mw power project at Chitrangi in Madhya Pradesh.
The government has allocated Moher, Moher-Almohri and Chhatrasal captive coal blocks to help the private developer meet the fuel requirement of the Sasan UMPP, which it bagged through tariff-based competitive bidding.
Tata Power, which bid for the Sasan UMPP, has challenged in court the government’s decision permitting Reliance Power to divert excess coal from the Sasan mines to the Chitrangi power project. Tata Power also cited while tariff for Sasan was 1.19 per unit, the same for Chitrangi has been fixed at 2.45 per unit though coal is coming from the same blocks.
As per existing regulations, captive coal mines are given to specific end-users. Any surplus coal generated from such blocks becomes a property of the central government which then disposes it through its PSU Coal India (CIL). In a few special cases, however, the coal ministry accords permission for sale of excess coal on a temporary basis. With the approval of the bidding process, even captive blocks would now have to be bid.
The EGoM on Saturday is expected to take a view whether its in-principle approval could be could be converted into a final decision after taking legal opinion of the Attorney General.
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PFC formed an SPV (Deoghar Mega Power Ltd) for 4000 MW UMPP at Jharkhand…
Power india found that State-run Power Finance Corp has formed special purpose vehicle, Deoghar Mega Power Ltd, for developing a 4,000 MW ultra mega power project in Jharkhand.
Deoghar would be the second ultra mega power project (UMPP) in the state after Tilaiya, which is being executed by Reliance Power, the company informed the BSE.
Power Finance Corporation, the nodal agency for UMPPs in the country, has awarded four such projects so far.
Three UMPPs — Sasan (Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaya (Jharkhand) were bagged by Reliance Power and one at Mundra in Gujarat is being developed by Tata Power.
The first round of bidding for the Bedabahal UMPP in Odisha, which was held in July last year, witnessed interest from 20 bidders. The second or the final round would take place after the government completes the amendments in the standard bidding documents (SBDs) for the UMPPs.
The Requests for Qualification (RFQ) or the initial bids for the Sarguja UMPP in Chhattisgarh are likely to be invited in June this year.
The preliminary bids for this UMPP have been delayed many times in the past on account of environmental clearance.
The government plans to add close to 1,00,000 MW in the next five years, of which a lion’s share would be contributed by these UMPPs.
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Power India – A popular blog on Indian Power Sector
April 28, 2012
J&K to spent Rs 1900 Crs to bring down T&D losses in the state…
Power India found that Jammu and Kashmir Chief Minister Omar Abdullah today said a Rs 1,900-crore project is under execution to bring down the power transmission and distribution (T&D) losses in the state.
"The government has put R-APDRP schemes to execution to reduce T&D losses by 3 per cent annually," he said. Upgradation and power reforms project R-APDRP has been taken in hand at a cost of Rs 1,909 crore, Abdullah said while inaugurating a powergrid station at Ponicheck here.
He said the project envisages improvement in high tension and low rension in towns and cities with a population of 10,000 and above. Seven grid stations have been completed in 2011, while two have been completed this month and another seven are in the pipeline, he said. He said financial self-reliance of the state is directly linked with harnessing of huge potential of about 20,000 MWs of hydro electricity available in the state.
"My government is working on a comprehensive plan to make remarkable dent in this direction", he said, adding that considerable thrust is on the generation of power along with upgradation of distribution and transmission system. He said in a state where the total income from all resources is Rs 6,500 crore and expenditure on salaries of government employees is Rs 13,500 crore, the only hope for financial self-reliance can be pinned on the power sector.
The powergrid station at Ponicheck of 50 MVA capacity with 132/33 KV voltage level. The construction of the station is accompanied with the installation of 1.78 km feeding line. The construction of the station was taken in hand in 2010 at a cost of about Rs 16.72 crore. \
It will benefit the population of about one lakh inhabitants in Mur and Raipur- Domana Constituencies besides people living in Talab Tillo, Trilokpur and adjacent areas. The station will also improve and regulate quality power supply at 33 KV level feeding the sub-transmission system in Tehsil Jammu. It will relieve the overloading of existing network and grid station at Janipur and Canal.
The transmission line constructed along with the grid station is of 1.7 km long with 7 towers of B+6 and D+0 types. The Chief Minister said that improvement and upgradation of power supply to the consumers is being ensured by construction of new grid stations, receiving stations and sub- stations across state. He, however, showed concern over the huge transmission losses the State has to bear due to misuse of electricity.
He said the yearly losses on account of misuse and transmission leakage of electricity have touched over Rs 2,000 crore which should be serious concern to all. He said this amount if procured from the consumers could be utilised on various development projects and employment generation for youth. He asked the consumers to pay the electricity charges in accordance with the consumption they make.
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Power India – A popular blog on Indian Power Sector
Artificial Leaf…
Power India found that Daniel Nocera (an MIT researcher) has developed a potentially ground breaking energy storage technology that successfully mimics nature.
Daniel call this technology as an “Artificial Leaf”
In a photosynthesis-like process, the ‘leaf’ uses solar energy to split water into hydrogen and oxygen. The emitted gases could then be stored in a fuel cell, making off-grid living beyond feasible.
Not only that, but Nocera says that his leaf’s efficiency outperforms nature by a factor of 10.
He founded the company Sun Catalytix to work on products that may some day provide electricity to impoverished households in developing countries.
Solutions are expected to be ready for commercial use in the next few years. (Note: while it’s called an ‘artificial leaf’, it’s not actually a leaf.)
Source: Clean Technica
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Power India – A popular blog on Indian Power Sector
NPCIL’s Kudankulam nuclear plant to get nod for fuelling soon…
Power India found that Atomic power reactor operator Nuclear Power Corporation of India Ltd (NPCIL) hopes to get the regulatory nod to fuel the first unit of Kudankulam nuclear power plant in a week's time, a top official said here Saturday.
The NPCIL had sought the Atomic Energy Regulatory Board's permission April 18 for loading the fuel in the nuclear project in Tirunelveli district, around 650 km from here.
"We are hopeful of getting the board's nod in a week's time. We will then remove the dummy fuel (similar to the real fuel in terms of specifications but without enriched uranium) and start loading the real nuclear fuel," S.K.Jain, chairman and managing director of NPCIL, told IANS.
"If everything goes well, the fuel loading process will be completed by May or June," Jain said. He cited Tamil Nadu Chief Minister J. Jayalalithaa's April 25 letter to Prime Minister Manmohan Singh that the reactor "will be fuelled in the next few days" and it will attain criticality in 20 days' time.
"We have been able to mobilise necessary workforce within three weeks following the state government's nod to go ahead with the project. The hot run of the reactor (trial run without real fuel) was 200 percent success," said Jain while speaking about the status of the first unit of the reactor.
He said the reactor's life expectancy was around 60 years and the NPCIL has the in-service testing capacity for which data was to be collected after hot run.
According to Jain, pre-service inspection will be completed in a couple of days while fine tuning of data is going on.
"We have completed integrated emergency core (reactor core) cooling system simulation. This is a prerequisite for fuel loading," Jain said.
Officials at the Kundankulam plant have tested more than 600 pumps and motors, 200 control panels and the same number of electrical panels and individual systems of the reactor.
Terming reports about the presence of a spring near the reactor building as a rumour, Jain said the NPCIL spent around Rs.10 million to conduct isotope hydrology test to find water reservoir near the project site and could not find even salt water.
Speaking about the safety drills conducted prior to loading nuclear fuel, Jain said they were of three kinds: Plant emergency, site emergency and off-site emergency. The first two of these drills have been completed, Jain said.
"The plant emergency is declared if there is any system malfunctioning. Under this drill, all the plant personnel are required to assemble at a designated place if a warning is sounded. The second drill is site emergency that applies to all those present within 1.6 km radius of the plant. They too have to assemble at a designated place on hearing a warning sound in case of an emergency," Jain said.
The off-site emergency drill is conducted by district administration officials, who are trained by the NPCIL, Jain said.
"We have trained the district administration officials on safety drills such as traffic diversion and informing the people about how to react in an emergency. Training on evacuating people and handling other emergency situations will be done before the reactor goes critical," Jain said.
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Mahagenco considering to shut down old plants…
Power India found that faced with a shortage of coal for its thermal power stations, the Maharashtra State Power Generation Company Limited (MahaGenco) is working on a contingency plan wherein it may have to shut down old power generating sets to divert their coal linkages to the utility’s newly commissioned units.
MahaGenco managing director Subrat Ratho told that in case the coal supply scenario did not improve in a month, they will shut down old units and divert their coal to the new ones with a total of 1,750MW capacity at the Parli, Khaparkheda and Bhusawal power plants.
This includes a 250 MW set at Parli, a 500 MW unit at the Khaparkheda thermal power station and two 500 MW units each at Bhusawal. The units at Bhusawal are under trial runs. The Khaparkheda set, which declared commercial operations recently, was under forced outage due to lack of coal, while coal stocks for the Parli set were at critical levels.
“The MahaGenco is working on a contingency plan in case things do not improve in a month,” said Ratho, adding that otherwise, the new capacity would be stranded due to lack of coal. This in turn would lead to a financial crisis as these new units had high fixed costs, he added.
Ratho said they were likely to shut down old units in power plants like Koradi, Parli and Chandrapur and divert their coal linkages to these new plants under the plan. These old units are to be revamped and modernised by MahaGenco.
The MahaGenco has also asked the public sector coal companies to give an estimate of the coal that they could supply to them in the future, said Ratho, adding that it would do away with the “uncertainty” and help them decide on which units to concentrate on. “We will like to focus on these units at Khaparkheda, Parli and Bhusawal as they will provide maximum efficiencies,” he added.
Ratho also met officials from the coal ministry and the coal firms in New Delhi on Wednesday. “The meeting concentrated on shortage of rakes to carry coal from the Western Coalfields Limited,” said Ratho.
The MahaGenco needs 35 rakes of coal per day for its 7,980 MW coal-based thermal power capacity (including the two sets of 500 MW each at Bhusawal).
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Power India – A popular blog on Indian Power Sector
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Tata Power to have stakes in Cleantech companies…
Power India found that Tata Power, India’s biggest private energy producer, is looking to generate a quarter of total power produced through renewable energy sources in the next few years and is open to buying stakes in companies working to develop clean energy technologies.
S Ramakrishnan, executive director, Tata Power told , “In the past, we have bought stakes in firms involved in developing clean energy and will continue to do so if any significant opportunities prop up in the future.” Tata Power had recently bought stakes in two Australian firms—a 5% stake in Exergen for $10 million and 10% stake in Geodynamics for $50 million.
Exergen has developed a cost-effective moisture removal process for high moisture brown coal, which will emit only 800 kg of CO2 per mw as compared with the current level of 1,500 kg.
Geodynamics work in the area of developing geothermal energy.
Tata Power and another Australian company Sunengy are jointly developing a floating concentrated solar PV pilot project.
Ramakrishnan said Tata Power is in touch with large global utility companies such as American Electric Power, Tokyo Electric and Vattenfall, which are evaluating clean coal technologies such as integrated gasification combined cycle plants.
Tata Power’s current generation capacity is 5,297 mw, out of which about 22% comes from clean sources.
The company generated revenue of `471 crore from clean energy sources in the last nine months of fiscal 2012, he said.
In January, Tata Power commissioned a 25 mw solar power project in Mithapur, Gujarat.
“Tata Power plans to set up 300 mw of solar power capacity by 2017. The company is also looking at solar rooftops on buildings,” he said.
Tata Power, which currently has an installed wind capacity of 375 mw, plans to add 150 mw every year till fiscal 2015. It is also developing power from waste gases generated during steel-making.
“We have already set up various plants at Haldia and Jamshedpur based on waste gases model that are helping in reducing greenhouse gas emission significantly,” he said. Tata Power is looking at some more waste gases power project with Tata Steel, he said.
Tata Power is developing the 236 mw Dugar Hydro Power project in Himachal Pradesh in partnership with S N Power, Norway.
“The team has carried out route survey, geological mapping and contour mapping of the project site. Currently, the project is being optimised for 500 mw,” he said.
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Power India – A popular blog on Indian Power Sector
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