Indian Power Sphere: May 2012

May 22, 2012

NTPC and CIL to sign FSA on 2009 terms…

After a long quarrel, NTPC and Coal India have finally agreed to sign new fuel supply agreements (FSA). However, the FSA will be signed on most of the terms of 2009 MoU except the trigger level.

The trigger level is the point up to which Coal India has to meet the supply commitment.

In the recent FSA being signed, the trigger level has been reduced to 80% from the earlier 90%.

NTPC clarified the concerns about whether NTPC is getting preferential treatment by saying NTPC’s case was different from other private developers who are opposing Coal India’s new FSA. NTPC has to sign new FSAs for its brownfield projects unlike others who have greenfield projects.

Under the said terms, FSA for around 4,300 MW capacity will be signed for which NTPC was getting coal based on a MoU with Coal India.

POINTERS: Contentious issues

Penalty clause reduced to 0.01 per cent
For three years from the date of signing of FSA, there will be no compensation.
For non agreement during review, aggrieved party can terminate the agreement.
For non acceptance of change in coal distribution system CIL has right to terminate the agreement.
No provision for inter project transfer of coal for efficient operation
No provision for re-declaration of grade.
Force Majeure events

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May 21, 2012

NBCC looks for a JV to develop 1,000 MW Project along with a coal mine…

National Buildings Construction Corporation (NBCC) has invited an Expression of Interest to develop the coal mine and the power plant for a 1,000 MW project.

Though, the scope of NBCC as defined during its formation was to carryout the following activities:

project management
consultancy services for civil construction projects
civil infrastructure for power sector; and
real estate development.

Further, the NBCC has raised around Rs. 127 Crore via a Initial Public Offering (IPO) in the month of April 2012.

Currently, the company is looking out for a joint venture (JV) partner for the above mentioned project.

According to sources, NBCC is planning to construct a 1,000 MW power plant at a cost of Rs5,000 crore.

Apparently, NBCC requires a coal mine for the purpose. It had planned to apply for allotment of a coal mine under the government dispensation route.

The criteria listed in NBCC’s published EoI involves.

The JV partner needs to have a net worth of over Rs750 crore.
It should have over 500 acres of land in possession.
It should have done preliminary work for environment clearance.

As per the sources, the move was to increase the order book position of NBCC as work for a 1,000 mw power plant would be around Rs3,000 Crore

NBCC will bring the coal block to the table, while mining will be done by the JV partner. Equity capital for the proposed power plant will also be shared.

More Literature on this topic:

http://www.dnaindia.com/money/report_mystery-shrouds-nbccs-planned-coal-and-power-foray_1691543

BHEL received a contract for ESP Package for Solapur project…

BHEL Logo

BHEL has recently received a contract for supply and installation of Electrostatic Precipitator (ESP) Package for 1320 MW Solapur Thermal Power Project in Maharashtra.

BHEL's scope of work in the contract involves design, engineering, manufacture, supply, and erection and commissioning of the complete ESP package.

The ESP shall be manufactured at BHEL's Ranipet plant, while the High Voltage Rectifier Transformers will be supplied by the company's Jhansi plant.

BHEL's Power Sector - Western Region will be responsible for erection and commissioning of the ESP.

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NTPC awarded Rs. 1.75 Bn order to ABB for developing two substations in Maharashtra…

ABB Logo NTPC has awarded an order worth Rs. 1.75 Bn to ABB Ltd to build two substations at Solapur and Mauda in Maharashtra.

The proposed substations will strengthen the grid of western region and facilitate transmission of electricity from new power generation plants being constructed in the region.

The substations will include

17 bays of 400 kilovolt (kV) and 14 bays of 132 kV in Solapur
12 bays of 400kV and 8 bays of 132kV in Mauda.

ABB’s turnkey project scope comprises the design, engineering, supply, installation, commissioning and associated civil works for the substations. The project is scheduled for completion in 2016.

NTPC has also awarded the construction of substations at Mauda (Stage-I), Gandhar and Nabinagar to ABB recently.

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Coal India expects to complete the FSA signing within 15 days from now…

Coal India logo

Coal India is expecting to resolve the fuel supply agreement (FSA) deadlock in next two weeks and enter into agreements with all the proposed power plants by first week of June 2012.

CIL has prposed to enter into an FSA with 48 power plants which are commissioned between April 2009 and December 2011. Currently around 14 private and public companies have signed long term FSAs with CIL.

However some of the companies are still to sign agreement out of which the public sector power major NTPC is one of them.

NTPC is not willing to sign the new FSA proposed by CIL and want certain changes in the same. Out of which the prominent are:

To have similar penal and force majeure conditions as was in the pacts signed till March 2009.
Removal of the stricter force majeure clauses passing the buck on the buyer even for CIL's failure to procure spares and others.

However, despite the refusal of FSA signing by NTPC and few others, already some major companies have either initiated the process of signing FSAs or have already entered the pact.

These include Lanco, Reliance Power, CESC Ltd and Bajaj Energy.

Adani Power, which requires supplies for nearly 1500-2000 MW, is yet to enter into a pact.

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CIL to supply coal to NTPC even without the FSA…

Coal Supply

As said by Coal India Ltd (CIL) Chairman & MD Mr. Narsing Rao, the NTPC will continue to get coal supply even if it has not signed FSA with CIL as the Government has directed CIL to extend the coal supply even though the MoUs are expired in March 2012.

NTPC is not willing to sign the FSA proposed by CIL due to various issue related to minimum supply level, penal provisions etc.

CIL in the previous year had supplied 36 million tonne of coal to NTPC and in the current fiscal the projected requirement was 90 million tonne based on 80 per cent supply.

There was also payment dues of close to Rs 400 crore at end of April over differences in Gross Calorific Value (GCV) based formulae of coal. However as said by Mr. Rao, NTPC will be clearing some of these dues in due course of time.

According to CIL, the main cause of quarrel between CIL & NTPC on FSAs is the recent GCV based formulae proposed by the Government. It seems that NTPC want to have the Useful Heat Value system instead of the current GCV system.

However as said by Mr. Rao, the system has been changed by the government and so CIL does not have any choice. Further according to him, CIL's FSA agreement would not be diluted in the wake of reservations from certain power producers including NTPC to sign FSAs.

The coal ministry has also not received any formal refusal for signing the agreements with NTPC plants.

The FSAs to be signed by NTPC are mostly for additional units completed till 2011 at the existing power stations for which pacts have already been entered.

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GAIL plans 100 MW wind projects after commissioning 4.5 MW in Gujarat…

GAIL Logo

Gas Authority of India Ltd (GAIL) is planning to develop 100 MW Wind Project in various states such as Tamil Nadu, Karnataka and six other states at a cost of around Rs. 620 Crores.

The move came from the initial results of 4.5 MW wind power project in Gujarat.

The company is setting up another 14 MW WEG project in Gujarat partly for captive use in the State and part;y for sale to the State utility. “GAIL is also in the process of setting up a 100 MW WEG project in Karnataka and Tamil Nadu for commercial use. The wind potential states such as Andhra Pradesh, Gujarat, Kerala, Madhya Pradesh, Maharashtra and Rajasthan are also on the radar of GAIL to expand its presence in the wind energy sphere,” according to an internal plan document of the company.

It says, the increasing prices of fossil fuel and the growing concern over global warming due to green house gases (GHG) emissions by fossil fuel-based power generation, have led to interest around the world for harnessing renewable sources for power generation. “Based on the current trend in prices of wind mills along with associated activities, the cost of the proposed 100 MW wind energy project of GAIL is estimated at around Rs.620 crore. The initial projects in Tamil Nadu and Karnataka are envisaged to be commissioned during 2012-2013,” it states.

Out of the total project cost, the company intends to invest Rs.248 crore (or 40 per cent of the project cost) as equity and the balance Rs.372 crore is proposed to be met through finance from banks or financial institutions. The rate of interest for getting finance for this project for a period of eight years with a moratorium period of two years is likely to be around 10.25 per cent per annum.

The project is envisaged to have optimised combination of wind turbine generators (WTGs). Power from WTGs in the wind farm shall be generated at low voltage and stepped up to 33 kV or other suitable voltage.

All the eight states have a wind power policy in place where the period of power purchase agreement (PPA) ranges from 10 years to 20 years.

Apart from being environmentally-friendly, the wind energy projects will generate employment for the local stakeholders.

Source: The Hindu

May 20, 2012

ONGC to foray into the hydro power projects…

ONGC Logo

It seems that the Oil major, Oil & Natural Gas Corporation (ONGC) is planning to foray into hydro power projects by expanding the scope of ONGC-Tripura Power Company Ltd (OTPC).

ONGC Tripura Power Company Ltd is sponsored by Oil and Natural Gas Corporation (ONGC), Infrastructure Leasing and Financial Services Limited (IL&FS) and Government of Tripura (GoT) for implementation of 726.6 MW CCGT thermal power project at Palatana in Tripura to supply power to the power deficit areas of North Eastern states of the country. ONGC, IL&FS and GoT have entered into a Shareholders’ Agreement (SHA) on September 18, 2008 for subscribing to the equity of OTPC.

Current scope of OTPC include a 726.6 MW Combined Cycle Gas Turbine (CCGT) power plant close to the gas fields of ONGC in the state of Tripura along with an associated power transmission system from the project site to Bongaigaon in Assam.

The proposed foray into hydro power was indicated after a meeting between ONGC chief Sudhir Vasudeva and Uttarakhand chief minister Vijay Bahuguna here last evening.

As said by Mr. K S Jamestin, ONGC’s Director-Human Resource, ONGC is interested in developing small hydro projects which are run-of-the-river projects as well as environment-friendly. ONGC is considering for the expansion of OTPC and exploring the possibility of developing hydel projects in this regard.

After the meeting, Bahuguna asked the power department to prepare a blue print for all those power projects which has received clearances from the union ministry of forests and environment.

Faced with acute paucity of funds, Uttarakhand has been trying to attract private players in the hydropower sector by offering joint ventures with Uttarakhand Jal Vidyut Nigam, the state-run power generation company. The sector received a severe jolt after the Centre scrapped several big hydro projects including NTPC’s 600 MW Lohari Nagpala project on Bhagirathi river on environmental and religious grounds.

More Literature on this topic:

http://www.business-standard.com/india/news/ongc-ready-to-foray-into-hydropower-sector/474754/

Moser Baer plant to restructure Rs. 1800 Crorers debt…

Moserbaer Logo

Moser Baer has revised its corporate deb restructuring plan to Rs. 1,800 Crorers from the earlier planning of Rs. 739 Crores.

As said by the Moser Baer, the company is considering restructuring of debt as it looks to strengthen its abilities to leverage future opportunities in the growing sector.

The current debt restructuring of Rs. 1,800 Crores of term debt is almost half of the total debt of Rs. 3,500 Crores.

Rapidly falling prices of solar panels and components has also impacted the profitability of solar cell makers, with companies like Solar Millennium and Solon SE filing for bankruptcy.

Moser Baer is also in discussions with banks for refinancing its outstanding Foreign Currency Convertible Bonds (about $88.5 million as nominal value).

Banks are positive about the company's future plans and Moser Baer is looking forward to speedy completion of the debt restructuring and thereafter, to consolidate business and cash flows

The company narrowed its loss for the quarter ended March 31, 2012 to Rs 59.60 crore from a loss of Rs 131.20 crore in the same quarter last year.

Total income from operations increased to Rs 462.33 crore in the reported quarter from Rs 458.95 crore in the year-ago period.

The company is bullish on the solar industry as the global PV market is forecast to witness substantial growth on account of higher installations anticipated in key markets such as the US, Germany and China.

According to the The industry witnessed a 76 per cent year-on-year growth in PV installations during 2011, as per a EPIA - Global Market Outlook 2016 report.

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UJVNL to have JV with Jharkhand SEB for a 2,000 MW Thermal Power Plant…

UJVNL Logo

Recently, Uttarakhand Jal Vidyut Nigam Ltd (UJVNL) has approached Jharkhand State Electricity Board to explore the possibility of forming a Joint Venture (JV) for a 2,000 MW Thermal Power Plant in Jharkhand.

A series of closures of big hydro projects has prompted Uttarakhand to now explore the possibility of setting up a thermal plant outside the hill state.

The approximate investment for the project is around Rs. 12,000 crore.

For the of purpose of exploring the possibility of JV with Jharkhand SEB, UJVNL’s managing director G P Patel visited to Ranchi for talks with top officials of Jharkhand SEB.

Uttarakhand chief secretary Alok Kumar Jain also wrote a letter to the union coal ministry, requesting for allocation of coal blocks.

With the hydropower sector taking a beating owing to closure of a series of big hydro projects, the UJVN, having an installed capacity of 1,306.25 Mw, has already entered into a joint venture with GAIL to set up two gas-power plants at Kashipur and Haridwar.

Also, an investment of Rs 2,500 crore is proposed in the two plants with a capacity of 350 Mw each.

The state run power generation company is also looking for a capacity addition target of 582 Mw (2 large and 18 small hydro projects) by the end of 12th Plan, aggregating the installed capacity of the company to 2,608 Mw.

More Literature on this topic:

Rajathan’s 200 MW bids of Solar Projects getting postponed…

Solar Projects delayed

According to a latest circular on the website of Rajasthan Renewable Energy Corporation (RREC), the last date of receiving of bids for the recent Solar PV and Solar Thermal (CSP) project have been postponed till further notice.

The postponement has been applied to the below mentioned Request for Specifications (Rfs).

Rfs/PV 10/RREC/6
Rfs/Themrmal 50/RREC/7
Rfs/PV1/RREC/5

The combined capacity covered by above Rfs are around 200 MW out of which several solar PV projects with total capacity of 100 MW and two solar thermal projects of 50 MW each.

Though, the circular of RREC has not cited any reason for the postponement, it seems the delay may have something to do with the State’s ability to pay for the power.

The tariff applicable under the bid was Rs. Rs 10.12 per unit for “without accelerated depreciation” and Rs.8.85 per unit “with accelerated depreciation”.

As per Mr. Madahavan Nampoothiri, Founder & Director of RESolve Energy Consultants, “The delay is frustrating for all of us who have invested enormous amount of time and money in participating in the bidding process. We are hopeful that the Rajasthan officials will act fast to restore confidence in the state's solar policy.”

Solar project developers are upset because after the first phase of the National Solar Mission and the solar programme of Gujarat, there are no project offers in sight. Developers have recruited people in anticipation of projects and are waiting for work.

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Mytrah on status of wind capacity additions…

Mytrah Energy Logo Mytrah Energy has recently provided an update on its capacity installations to London Stock Exchange, according to which Mytrah has increased its total installed and commissioned assets to 224.2 MW.

Out of the this below mentioned projects with the total capacity of 106.2 MW are fully commissioned

SN	Site	Capacity (MW)	State
1	Tejva	42.0	Rajasthan
2	Mahidad	25.2	Gujarat
3	Chakala	39.0	Maharashtra
Total		106.2

Further as reported by Mytrah below mentioned projects are almost on the verge of completion and will be completed within 60 days.

SN	Site	Capacity (MW)	State
1	Kaladonger	96.6 (Earlier planned was 75.6 MW)	Rajasthan
2	Jamanvada	52.5	Gujarat
3	Vajrakarur	63	Andhra Pradesh
4	Sinner	18.9	Maharashtra
Total		231.0

Some more projects are also into construction phase and most of the clearances received and supply of turbines completed.

SN	Site	Capacity (MW)	State
1	Gotne	33.6	Maharashtra
Total		33.6

Some of the recent developments made by the company in its project portfolio.

The Company has reduced the size of its project at Sinner in Maharashtra by 10.5 MW to 18.9 MW, from the previously announced 29.4 MW, and is replacing the project at Hanumanthappa, Karnataka (25.2 MW) with an alternative site. In order to partially offset this within the Company's portfolio, Mytrah Energy has increased the size of the project at Kaladonger, Rajasthan, by 21 MW, from 75.6 MW to 96.6 MW.

The Board believes that the ability to adjust its portfolio demonstrates one of the significant advantages of the Company's business model, as the turnkey nature of its contracts and the diversified nature of its project portfolio enables the Company to adjust the size of individual projects as circumstances change. In addition, and again due to the turnkey nature of its contracts, the Company does not incur an increase in the cost of the projects.

The Maharashtra Electricity Regulatory Commission has recently increased its tariff from Rs. 5.37 per kWh to Rs. 5.67 per kWh for Wind Zone I for the projects commissioned in the year 2012-13. As said by Mytrah all three of the Company's projects under development in Maharashtra will benefit from this increase in tariff providing a significant increase in the overall return on these projects. In addition, the Company anticipates both Rajasthan and Andhra Pradesh to increase their tariffs in the near term. In light of an expected tariff increase in Andhra Pradesh, the Company intends to wait to continue the development of its first project with Gamesa at Burgula (79.9 MW), in order to benefit from the expected higher tariff.

The Company is pleased with the progress at its sites and the Board is confident that Mytrah Energy is set to become the largest wind energy IPP in India over the next few months. In addition, the Company has now secured all the senior debt financing required for its projects under development, and is in the final stages of identifying the sites for its roll-out through 2012 and 2013.

More Literature on this topic:

May 19, 2012

NTPC’s planned invest is Rs. 21,000 Crs during FY12-13; nearly double of FY11-12…

NTPC Logo

NTPC is expecting to invest around Rs. 21,000 Crore during the current financial year of 2012-13 which is almost two times the actual investment during previous year of 2011-12.

NTPC, which has an installed generation capacity of 37,514 MW, is looking to increase the capacity in the coming years, especially with thermal power projects.

Against the backdrop of acute coal shortages impacting the power sector, NTPC might have reduce capacity addition target for the 12th Five-Year Plan to little more than 50,000 MW from earlier target of 65,000 MW.

Regarding the company's long term strategy in terms of competitive bidding for power projects, Choudhury said that NTPC would always give a bid which is doable.

Meanwhile, NTPC is likely to import about 14 million tonnes coal this financial year. This would be much higher than 12 million tonnes imported in 2011-12.

NTPC posted nearly five per cent increase in consolidated net profit at Rs 9,814.66 crore for the year ended March 2012.

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Tata Power is looking for wind assets on sale…

Wind Acquisition

Tata Power seems to be planning to develop the wind power portfolio through acquisitions of existing wind projects and for that purpose it is looking out wind power assets which are on sale.

Large no of firms are considering to sale out their wind power businesses which are not the mainstream of their earnings.

Recently, wind turbine maker Suzlon Energy sold stake in its wind energy farm to raise Rs 200 crore.

Tata Power, the private sector power company, was earlier also looking for such opportunities, but could not clinch a deal, as the expectations of sellers were high. However as said by Mr. S. Ramakrishnan, Executive Director, Finance of Tata Power, this time around, Tata would offer better prices for purchase of wind assets.

Tata Power has around 370 Mw of wind power capacity, and is implementing projects of another 140 Mw, for which it has already ordered equipment. It plans to add 150 Mw a year, along with 25 Mw of solar power.

Though, Tata Power’s main focus on Renewables is India, company is also considering to expand its scope overseas.

Currently also, Tata Power is having hydro power projects in Bhutan. It is also conducting studies on a geothermal power project in Indonesia and scouting for wind and solar projects in South Africa, in partnership with local mining company Exxaro.

Tata Power believes that the African country’s renewable policies offer unique advantages. The selection process lays emphasis on the preparedness of the bidder. For example, vendor support, land, transmission infrastructure commitment, in-principle sanction of loans and equity commitment.

However, the company is not too keen on entering a new geography for renewables, as the size of opportunity is not large enough. The Tata group is already present in South Africa, which prompted the company to foray into the African country. In Indonesia, Tata Power owns stakes in coal mines of Bumi Resources.

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May 18, 2012

Adani Power completed nation’s first private HVDC transmission line of 1,000 km…

Power Transmission

India’s first private sector high voltage direct current (HVDC) power transmission system has been completed by the Adani Group and dedicated to the nation.

The line will carry power from the coal fired thermal electricity generated at Adani Power’s Mundra plant in Gujarat to Mohindergarh in Haryana which will be having the distance of around 1,000 km.

As said by Adani Power, the line is at 500 kV and will be having a 2,500 MW of transmission capacity.

The transmission line, completed in 24 months, passes through Gujarat, Rajasthan and Haryana and will start power supply to Haryana soon.

The power will first be transmitted from Mundra to Dehgam via a 400 kV, 430 km long transmission from where it will be transmitted to Mohindergarh using the newly constructed transmission line.

APL is also developing a dedicated 50-km 400 kV Mohindergarh-Bhivani transmission line for supply of power to the Haryana Power Generation Corporation Ltd (HPGCL), a company official told Business Line.

On an average, laying of one-km-long transmission line costs around Rs 5 lakh. Thus, the company invested nearly Rs 50 crore on the HVDC line. Besides, Adani Power Maharashtra Ltd (APML), a subsidiary of APL, is developing a 221-km, 400 kV Tiroda-Warora transmission line as an intra-state transmission licensee to evacuate power from APML’s Tiroda power project.

APL, having a target to generate 20,000 MW by 2020, is currently implementing 16,500 MW of power generation projects. At various stages of implementation are its projects at Mundra (4,620 MW), Bhadreshwar (3,300 MW) and Dahej (2,640 MW) – all in Gujarat – Tiroda (3,300 MW) in Maharashtra, Kawai (1,320 MW) in Rajasthan and Chhindwara (1,320 MW) in Madhya Pradesh.

The company had synchronized the first supercritical thermal power unit of 660 MW at Mundra in December 2010. APL's Mundra facility comprises five units of 660 MW (total: 3,300 MW) and four units of 330 MW (1,320 MW). All five supercritical units of 660 MW have been designed according to the energy efficient and environment-friendly supercritical technology, an official said.

APL had entered into long-term (25 years) power purchase agreements (PPAs) with the State electricity utilities for supplying a total of 7,144 MW. They included Gujarat (2,000 MW), Haryana (1,424 MW), Maharashtra (2,520 MW) and Rajasthan (1,200 MW). However, due to sharp increase in coal prices, the company is making efforts to have these PPAs revised.

May 17, 2012

Welspun has plans to develop 500 MW Solar PV Projects by 2017.

Welspun Logo

As said by the rating agency CARE, the Welspun Group is planning to put up around 500 MW of solar photovoltaic (PV) capacity by 2016-17.

The group currently has a capacity of 30 MW under various special purpose vehicles.

Last week Welspun bided and won for a 125 MW solar energy project in a tender floated by the Madhya Pradesh Government, quoting a tariff of Rs 8.05 a unit.

In the first two rounds of bidding under the National Solar Mission, Welspun had won 50 MW and 5 MW of solar photovoltaic projects each.

The Welspun Group has diversified business interests with a presence in power generation, exploration and production of oil and natural gas, steel pipes, home textiles, retail and infrastructure.

In addition to 500 MW of solar projects, the group intends to own 1,000 MW of wind power capacity. The group has said it would invest Rs 15,000 crore on renewable energy in the coming years.

Solar Power in Space, a valuable source of renewable energy…

Solar Power in Space

As per the recent research being done by University of Strathclyde, Glasgow, solar power from space could be a valuable source of renewable energy.

Glasgow University has already tested equipment that would provide a platform for solar panels to collect the energy and allow it to be transferred back to earth through microwaves or lasers.

This unique development would provide a reliable source of power and allow valuable energy to be sent to remote areas in the world, providing power to disaster zones or outlying areas that are difficult to reach by traditional means.

As said by Massimiliano Vasile, Mechanical & Aerospace Engineer at Strathclyde:

"Space provides a fantastic source for collecting solar power and we have the advantage of being able to gather it regardless of the time of the day or indeed the weather conditions. In areas like the Sahara desert where quality solar power can be captured, it becomes very difficult to transport this energy to areas where it can be used. However, our research is focusing on how we can remove this obstacle and use space-based solar power to target difficult to reach areas. By using either microwaves or lasers we would be able to beam the energy back down to earth, directly to specific areas. This would provide a reliable, quality source of energy and would remove the need for storing energy coming from renewable sources on ground as it would provide a constant delivery of solar energy. Initially, smaller satellites will be able to generate enough energy for a small village but we have the aim, and indeed the technology available, to one day put a large enough structure in space that could gather energy that would be capable of powering a large city."

A team of from Strathclyde last month developed an innovative 'space web' experiment which was carried on a rocket from the Arctic Circle to the edge of space.

The experiment, known as Suaineadh - or 'twisting' in Scots Gaelic - was an important step forward in space construction design and demonstrated that larger structures could be built on top of a light-weight spinning web, paving the way for the next stage in the solar power project.

Vasile added: "The success of Suaineadh allows us to move forward with the next stage of our project which involves looking at the reflectors needed to collect the solar power."

RPower seek removal of references of Sasan & Tilaiya UMPPs from CAG Draft report…

Reliance Power Limited (“RPower”) has requested Controller & Auditor General (“CAG”) to remove from its draft report the observations about utilization of excess coal from Sasan & Tilaiya projects.

It seems that, RPower’s request was considering the decision of Empowered Group of Ministers (EGoM) on not to review the earlier decision allowing RPower to use excess coal from the Sasan UMPP.

On Tilaiya UMPP, the EGoM has decided that permission for use of surplus coal from Tilaiya UMPP would be governed by a new policy on excess coal usage. The policy would be formulated by the Coal Ministry.

In a letter to Comptroller & Auditor General, Vinod Rai, Reliance Power has requested the auditor to "consider dropping the audit para on undue benefits arising out of surplus coal from Sasan UMPP and Tilaiya UMPP".

Excess coal from Sasan UMPP is to be used for Chitrangi project.
As per the letter, Chitrangi project -- where the excess coal from Sasan is to be used -- is still awaiting certain important clearances and hence it may be premature to quantify any benefit due to sale of power using surplus coal.

Reliance Power said that as per reported EGoM decision, the permission for surplus coal usage from Tilaiya UMPP would be as per the new policy and "hence it may not be appropriate to quantify losses or make observations on Tilaiya UMPP".

Reliance Power has bagged three UMPPs -- Sasan (Madhya Pradesh), Tilaiya (Jharkhand) and Krishnapatnam (Andhra Pradesh). UMPPs are generally referred to as projects having generation capacity of 4,000 MW.

More Literature on this topic:

http://economictimes.indiatimes.com/news/news-by-industry/energy/power/reliance-power-seeks-removal-of-sasan-reference-from-cag-draft-report/articleshow/13224288.cms

Hurdles before RPower’s JIPL for Tilaiya UMPP…

Even as land acquisition hurdles are posing a trouble to Jharkhand Integrated Power Limited’s (JIPL’s) 4,000 MW Tilaiya ultra mega power project (UMPP), the Reliance Power wholly owned subsidiary now has to resolve the critical issue of a stupendous Rs 3,131 crore increase in Rehabilitation and Resettlement (R&R) cost over the original pre-bid estimates.

The increase in project cost, on account of the substantially higher R&R expenditure, has led most of the lenders to doubt the bankability of the Tilaiya project.

The power utility, to avoid any possible repercussions, has sought in principle approval from the procurers for this additional expense and the complete recovery of the amount.
through the tariff mechanism.

During the pre-bid stage, Envirotech and Green C consultants, appointed by Power Finance Corporation (PFC) to assess the extent of R&R involved in the project, had pegged the R&R expenditure at Rs 481 crore for both coal block and power plant areas.

Source: Industry Monitor

KERC dropped transmission wheeling charges for solar energy…

KERC Logo

The Karnataka Electricity Regulatory Commission (KERC) has decided not to charge any wheeling charges on transmission of solar energy.

This is as part of the Commission’s bid to promote solar energy based power generation and transmission through the grid

For the wheeling of power, generated from other non-conventional energy sources, within the state, the existing wheeling charges at 5% of the injected energy will continue during 2012-13.

Various other relief measures are also in place.

At the same time, if energy from renewable sources is wheeled from the state to consumers outside the state, normal wheeling charges ranging from Rs 0.21 per unit to Rs 0.69 per unit will apply.

Source: Industry Monitor

Toshiba JSW Turbine & Generator Pvt Ltd received 1675 Crore order from Meja Urja for supply of supercritical generators…

Meja Urja Nigam Pvt Ltd has awarded an order to Toshiba JSW Turbine & Generator Pvt Ltd for supply of two units of supercritical steam turbine generators of 660 MW each.

The said order is worth Rs. 1,675 Crore.

The scope of the contract covers engineering, procurement, manufacturing, installation and testing of the steam turbine generator island. Setting up a local manufacturing facility and phased manufacturing programme with technology transfer was a mandatory requirement for the tender, says a press release from the company.

Meja Urga is a joint venture of NTPC and Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd and is developing the project at Meja in Uttar Pradesh.

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Greenpeach suggests microgrids in Bihar to supply renewable energy to all the areas of state; report released…

As suggested by Greenpeace India, a network of microgrids should be set up in Bihar so that the renewable energy can be provided to all the areas of the state.

According to Samit Aich, the Execution Director of Greenpeace India, this model of energy supply will foster inclusive growth and remove the energy poverty in Bihar.

Further according to him, Bihar has enormous energy deficit which is a major challenge for the growth of the state, but it has the potential to become a power surplus state with strong focus on development of renewable energy through right incentives, enabling environment and effective implementation, he said.

Microgrids can offer reliable and cost competitive electricity services, besides providing a viable alternative to the conventional top down approach of extending grid services. Greenpeace urged the state government to focus on integrated energy planning based on cluster based development.

The energy planning should promote the establishment of a council for rural industrialisation and establishment of related coordination committees at district level.

The report prepared by Greenpeace and released by Bihar Energy Minister Mr. Bijendra Prasad can be downloaded (in pdf form) from the below mentioned link.

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