Mahagenco to develop 200 MW of Solar Projects by 2015…

Power India found that he Maharashtra State Power Generation Company (Mahagenco) is planning to set up four more solar power plants in the State with a total capacity of about 200 MW by 2015.

 

Current Projects

Mahagenco, currently, is executing a 150 MW solar power project at Sakri town in Dhule district. Work on this project began last May.

 

Proposed Projects

• Mahagenco is proppsing to set up plants in Beed, Sangli, Parbhani and Osmanabad districts, which have good solar radiation and almost 300 days of sunshine.
• Mahagenco’s local administration has been ordered to find suitable land parcels for setting up the projects.

Land identification

• As land acquisition has become a major challenge in Maharashtra, therefore non-cultivable lands are being surveyed for acquisition. Preference would be given to 100 hectare plots, which are fully owned by the government.
• All the power produced by the plants would be bought by the Maharashtra State Electricity Distribution Company (Mahadiscom) without any preconditions.
• This will also ensure that Mahadiscom meets the mandatory requirement of sourcing power from renewable sources, the official said.

Feasibilty of Solar Projects

• The rising demand for power and delays in setting up conventional thermal coal plants is pushing the government to look for non-conventional energy resources for power generation.
• Mahagenco will examine the feasibility of using either thin film or crystalline based photovoltaic technology for the plants.
• There is a good potential to produce solar power in Maharashtra, as many areas have solar radiation, comparable to those in Rajasthan.
• However a  good State level solar policy is required, which can encourage private sector to put up solar power plants in Maharashtra such as in Gujarat and Rajasthan.

Last year Sakri project had hit a major hurdle as the State Forest Department had claimed ownership of the project site. However, the State Government settled the issue and construction work has already begun, the official added.

 

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More Literature on this topic:

• http://www.thehindubusinessline.com/industry-and-economy/economy/article3394393.ece?ref=wl_industry-and-economy

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Moser Baers Rs. 739 Crore CDR Proposal got in-principal approval from bankers…

Power India found that, the Rs. 739 Crores Corporate Debt Restructuring (CDR) proposal of Moser Baer India for Moser Baer Solar has received the in-principle approval from the bankers.

As captured by Power India earlier, Moser Baer Solar has approached the CER Cell for the above purpose in April 2012.

Moser Baer Solar’s Bankers are Punjab National Bank (PNB), State Bank of India (SBI), Bank of Baroda (BoB), IDBI Bank and Indian Overseas Bank (IOB) and a few other banks, which have give the above approval.

As per the preliminary information received by Power India…

• CDR will encompass a Rs 500-crore term loan, working capital loans of Rs 230 crore and the remaining Rs 9 crore of dollar loans.
• PNB’s exposure to MBS is to the tune of Rs200 crore, SBI’s Rs150 crore, IOB’s Rs130 crore and BoB’s Rs60 crore.
• Few other banks account for the rest i.e. Rs199 crore.

As a process of CDR, the approval will be followed by a new plan for repayment of Moser Baer’s loans. The company will be relieved from interest payment. Repayment tenure will be also extended.

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More Literature on this topic:

• http://www.dnaindia.com/money/report_moser-solar-s-cdr-plan-gets-bankers-nod_1685805
• http://www.indianpowersphere.com/2012/04/moser-baer-solar-enters-debt.html

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Discom losses reached to the level 2 lakh Crores… High need of strong reforms…

Power India found that according to the recent insights published by CRISIL, the losses of power distribution companies have crosses Rs. 2 Lacs Crores at end of March 2012 due to lower tariffs and higher fuel costs.

As outlined by the Report to primary reasons for the decreased bottom lines of Discoms are inadequate increase in tariffs of the power and inefficient harnessing of fuels such as coal, gas etc.

Issues relating to Tariff Side

• Over the second half of the previous decade, power tariffs in India grew by under 5% p.a.
• Against this, per capita income grew by 13.4% p.a. while household expenditure grew at 10.6% p.a.
• Consequently, the share of energy expenses in Indian households declined for the first time in two decades, during this period.
• Power tariffs have also lagged inflation.
• As said by MD and CEO of CRUSIL, Roopa Kudva, Managing Director and CEO, CRISIL,

“This indicates that Indian consumers can bear higher tariffs, and policy makers may have more flexibility to increase tariffs than they are currently exercising. Had power tariffs been hiked to keep pace with other household expenses, power utilities would have earned additional revenue of about Rs.950 billion in this period. Instead of making aggregate losses of Rs.870 billion, they would have made an aggregate profit of Rs. 80 billion.

Issues relating to Fuel Costs

• Indian coal production has remained stagnant in the last 4 years at 400-440 million MT.
• The power sector’s reliance on more expensive imported coal therefore doubled from 7% of coal-based power generation in FY 2007 to 15% in FY 2012.
• Imported coal is priced at 1.6 times domestic coal and typical transportation cost for imported coal is 1.5 times that for domestic coal.

Suggested Reforms

• The key reform would be to devise a mechanism to enable an automatic pass through of fuel price increases to power tariffs.
• The problem of delays in payment of subsidies by state governments to utilities can be addressed by setting up an appropriate escrow mechanism operated by the Reserve Bank of India to ensure timely subsidy payments.
• Utilities must be required to disclose their circle-wise technical and commercial losses along with the improvement targets for each circle.
• Further, we must effectively harness our coal reserves by formulating mining policies that incentivise timely development and production by mine licensees.

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More Literature on this topic:

• http://profit.ndtv.com/News/Article/power-distribution-companies-losses-cross-rs-2-lakh-crore-says-crisil-303681
• http://www.crisil.com/Ratings/Brochureware/News/CRISIL-Infrastructure-Advisory-power-tariffs_070512.pdf
• http://www.indianpowersphere.com/2012/05/distribution-companies-losses-to-reach.html

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Planning Commission and Power Ministry on 12th Power Capacity Addition targets…

Power India found that the Planning Commission and Power Ministry officials are going to meet tomorrow to narrow the gap differences of likely power capacity addition  and to finalize the 12th Plan targets for the capacity addition in the Power Sector.

As posted by us earlier, Power Ministry expects that at max 76,000 MW of capacity addition can be done during the 12th Plan, whilst the Planning Commissions says the same should be over 90,000 MW.

The meeting is expected to be chaired by Planning Commission Member B K Chaturvedi.

The Power Ministry has pitched for capacity addition target of about 76,000 MW in the 12th Plan, considering the backdrop of acute fuel shortages impacting electricity generation.

Further as per the data provided by CEA, capacity addition during 11th Plan was only 55,000 MW against the reduced target of 62,000 MW. (which earlier targeted at 79,000 MW)

As expected by the Power Sector professionals, Thermal projects are expected to account for more than 50,000 MW of capacity addition and out of that around 50% will come from super critical capacity (Unit capacity > 660 MW).

This is envisaged by the current capacity construction going in the country which is having around 35,290 MW under construction super critical projects.

On the estimated fund requirement side; the same is expected to be around Rs 13,72,580 Crores for the power sector out of which the power generation segment will need around Rs. 6,38,000 Crores and power distribution segment will need around Rs. 3,06,235 Crores.

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More on this topic…

• http://economictimes.indiatimes.com/news/economy/policy/planning-commission-power-ministry-to-finalise-capacity-addition-targets-for-power-sector/articleshow/13048006.cms
• http://www.livemint.com/2012/02/06233912/Government-may-lower-power-gen.html
• http://www.indianpowersphere.com/2012/01/mop-forwards-12th-plan-capacity.html

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ReNew Wind Power commissions 25.2 MW Wind Project in Gujarat…

Power India found that ReNew Wind Power (Mumbai based Independent Power Producer) has recently commissioned its first wind power project of 25.2 MW in Jasdan site, Rajkot, Gujarat.

 

A little brief on ReNew Wind Power:

• ReNew Wind Power is founded by Mr. Sumant Sinha who was earlier the Chief Operating Officer CEO) of Suzlon Energy. (More info on Sumant Sinha)
• It aims to become the leading renewable energy IPP in India by tapping the large wind and solar power potential in the country and creating a high quality and sustainable business.
• The company also want to look at expanding its operations into alternative energy sources like biomass and hydro in diverse locations, for which it has built a highly qualified team with significant operating expertise who deeply understand the dynamics of the renewable business.
• ReNew Wind Power, has secured an equity investment of up to Rs 1,000 crore from Goldman Sachs (NYSE: GS) on September 26, 2011, (Goldmand Sachs - a leading global investment bank and active investor in alternative energy/clean technology.) This was the largest investment in India’s renewable energy generation sector.

Something on Company’s Plans & Projects

• Renew Wind Power plans to develop 1000 MW of Renewable Energy projects by 2015.
• The first project is a Twenty Five MW project which is getting commissioned in February 2012 and is developed in the state of Gujarat.
• 75 MW of projects are getting commissioned in first half of FY13.
• And another Two Hundred MW of additional projects are in pipeline which will be commissioned in rest of FY13.
• The company is also acquiring land parcels with superior wind potential across various states in India with an intent to develop large number of MW by itself in the next couple of years.
• The company has signed business framework agreements with Kenersys GmBH, Regen Powertech Pvt and Suzlon Energy Ltd. to establish and operate wind farms throughout India.

 

What about the 25.2 MW Project in Gujarat?

• Site: Jasdan, Rajkot Dist. Gujarat
• Turbines: 12 Wind Turbines of 2.1 MW each (Suzlon Make S88 Model)
• EPC Contractor: Suzlon Energy Ltd
• Total Investment: Around 140 Crs (unverified)
• Power Purchase Agreement: Gujarat Urja Vikas Nigam Ltd (23.1 MW) Philips India (2.1 MW).
• Financing: At 70:30 D:E Ration by PTC Indian Financial Sertices Ltd (An Investment Vehcile promoted by PTC India Ltd)

 

As said by Mr. Summant Sinha:

"With this project we further establish the vision of rapidly expanding our footprint in the growing Indian wind energy market. We at ReNew Power are confident of becoming one of the leading Renewable Energy producers in India,"

The project of ReNew Wind Power was inaugurated by Hon’ble Chief Minister of Gujarat, Mr. Narendra Modi on May 6, 2012

 

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Seeking for More ?

http://renewpower.in/images/Press-Release.PDF

http://www.narendramodi.in/state-government-desires-to-maximize-the-usage-of-all-means-of-non-conventional-energy-sources-cm/

http://www.evwind.es/noticias.php?id_not=18379

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