Bring power projects out of drawing board, KERC tells government....

 

'Commission five pending projects, buy 1,500 MW every year'.For a brighter future, the Karnataka Electricity Regulatory Commission (KERC) has directed the state government to commission all power projects that are on the drawing board and stranded halfway through.

Five projects are on the drawing board now, meant to generate 10,400 MW. Besides commissioning these, the KERC has also suggested purchase of 1,500 MW through long term purchase every year till 2018 to ease the expected power crisis in the state.

Speaking on the sidelines of a workshop on Electricity Governance and Planning in Karnataka organised by the department of management studies, Cistup and CIVIC, M R Sreenivasa Murthy, KERC chairman, explained, "The commission embarked on a study to find out the future unrestricted energy requirements of the state and submitted a detailed report to the government a month ago. We have suggested various measures and it is up to the government to take appropriate measures."

According to the KERC, the state has been witnessing a seven per cent increase every year in its power consumption and it will almost double by 2022. "World's per capita energy consumption is pegged at 2,500 units per year per person. But in Karnataka, we have already reached one-third of it by consuming 800 units per year per person. It is axiomatic that we cannot supply the required amount of power owing to the widening gap between generation and demand. Hence, we have adopted restricted power supply," Murthy explained.

Currently, the state is consuming 63,000 million units of restricted power per year. "If we had to supply unrestricted power, then it will increase by another 5,000 million units more. By 2022, it will reach 1,10,000 million units which is double the current requirement. We have studied in detail and found that if the government could commission all the projects that are under way and on drawing board, then we may be able to reach out to that demand," he said. If all the projects on the drawing board are commissioned, 84,00,000 million units would be added to the state grid.

Last year, the state consumed about 57,000 million units. Because of improper planning and short term purchase of power, there has been a deficit of 13-16 per cent every year in supplying uninterrupted power. "If you do not plan well, then the deficit will increase beyond 20 per cent," he cautioned.

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Second unit of GMR’s Kamalanga plant commercially operational...

 

The GMR Group is establishing 3x350 MW coal-based thermal power plant at Kamalanga in Odisha’s Dhenkanal District. The first unit of 350 MW commenced generation on April 30, 2013. The second 350 MW unit of GMR Kamalanga Energy Limited (GKEL) was declared commercially operational on 11 November 2013.

Power produced from GKEL is being supplied to GRIDCO Limited in Odisha in line with the long-term Power Purchase Agreement (PPA). Besides Odisha, GKEL would supply power to Haryana, Bihar and other parts of the country. GKEL secured coal linkage for all its 1050 MW capacity by signing Fuel Supply Agreements with Mahanadi Coalfields Limited.

With the commissioning of GKEL’s second unit, the GMR Group’s combined generation capacity has touched 2136 MW. Projects totalling 5038 MW are under implementation. Commissioning of GKEL’s second unit follows close on the heels of the synchronization of the second unit of GMR’s 2x300 MW EMCO Energy Limited at Warora in Chandrapur District of Maharashtra on August 27. EMCO’s first unit of 300 MW became commercially operational in March 2013.

GKEL’s President & Director Mr. R.V. Sheshan, said, “GKEL is the largest investment made by the GMR Group in the Energy Sector. It is also one of the earliest private power projects to commence commercial operations in Odisha. GKEL is also making substantial efforts so that the quality of life of individuals in neighbouring communities is enriched by its transformational educational, health care, livelihood and grassroots infrastructure development focused CSR interventions.”

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Power demands goes down as mercury goes down in parts of country...

 

Extended monsoon and arrival of winters in parts of the country, the demand for electricity is witnessing downward trend on Indian Energy Exchange (IEX) where the total purchase bids received were close to 3596 million units (MUs) as against the total sale bids for 4453 MUs in October 2013. Higher supplies as against the demand made the day-ahead power market attractive for buyers with the average prices hovering around Rs 2.4 per unit in all parts of the country except South India.

On an overall basis, in terms of volume of power traded, the Northern and Southern regions were the net buyers, while the Eastern, Western and the North-Eastern regions were net sellers of power. On an average 85.30 MUs were cleared daily in October 2013 at the exchange.

"The overall demand for electricity in the country lowered owing to seasonal variations and intermittent precipitation in most parts of the country which is uncommon for this time of the year," read a media statement by IEX. It added that congestion played a major deterrent and the volume lost due to unavailability of transmission corridor doubled as compared to previous month and reached 442 MUs. "Evidently, the final cleared volume decreased to 2644.5 MUs in October'13 from 2852.8 MUs last month," said IEX.

Unavailability of transmission corridor for several days across the month saw the Southern region prices firm up further over the previous month. The corridor in South remain congested for 64% of the time and the average clearing price in Tamil Nadu and Kerala rose to Rs 5.74 per unit, highlighting an increase of 45%, whereas, the average prices in other parts were around Rs 4.15/kWh, a slight increase from the previous month. For the northern, eastern, western and north-eastern region the average price in the month of October 2013 were close to Rs 2.48, Rs 2.44, Rs 2.41 and Rs 2.44 respectively.

The buy volume from Punjab tripled as compared to last month as the transmission capacity previously tied up in short term bilateral contracts was relieved due to lowered agricultural demand with the paddy season coming to an end. As a result, corridor was available for transactions through the power exchange. However, the buy volume in other parts of North decreased which can be attributed to the overall decrease in demand with the onset of winter season.

The market once again maintained high liquidity through the month with an average of 1109 participants, up from 981 in the last month. On October 17, maximum participation of 1197 participants was observed.

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Talwandi Sabopower plant to be dedicated to the public in November...

 

Deputy Chief Minister of Punjab Sukhbir Badal has said that the Talwandi Sabo thermal power plant would be dedicated to the public on November 25 at a function organised at Talwandi Sabo.

Stating this here on Monday, after visiting the Talwandi Sabo plant and reviewing the progress, Badal said that the first unit of 1980 Mw of thermal power plant was being developed by Sterlite Energy Limited, a Vedanta group company, at an approximate cost of Rs 11,000 crore.

Badal further said that the plant would undoubtedly give a boost to the industrial sector and Punjab would be power surplus by the end of December. Power would be available to the people at the cheaper rates.

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Fuel cost saps margins of Reliance Power...

 

A 30 per cent rise in fuel cost at Rs 827 crore (Rs 637 crore in the previous year quarter) brought down the margins of Reliance Power for the September quarter.

This is despite the company clocking higher revenues and its 1,200 MW Rosa Plant in Uttar Pradesh logging 90 per cent plant availability.

Apart from the Rosa Plant, its 40 MW Dhursar solar PV plant in Rajasthan operated at 20 per cent and its 45 MW wind project in Vashpet, Maharashtra, logged 33 per cent plant load factor.

RPower said the progress at the second unit of 660 MW of 4,000 MW Sasan plant is on track and the unit is likely to be commissioned this month.

Its 100 MW concentrated solar power plant at Dhursar in Rajasthan is expected to be commissioned this fiscal.

On Monday, the R Power scrip closed 2.46 per cent lower at Rs 73.40 on BSE.

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Hydropower sector goes on the back burner in Uttarakhand...

 

At a time when the Uttarakhand government has launched a campaign to highlight its achievements in the media, the hydropower sector, a key growth driver in the hill state, has virtually been put on the backburner.

Even in its new official book on developmental works that was released by Chief Minister Vijay Bahuguna on the state’s foundation day on Saturday, the government did not say what steps it had taken to give a flip to the hydropower sector which is considered to be the most neglected one during the past few years. So far, Uttarakhand has only harnessed 3,622.14 Mw of hydropower against the potential of 26,000-30,000 Mw.

Except for stating that the Uttarakhand Jal Vitaran Nigam Limited (UJVNL), the state-run power generation company, has been able to produce 4,812.11 million units of power against the target of 4,752.67 million units in 2012-13 and highlighting various other topics, the state government remained silent on the controversy surrounding big hydel projects, apparently owing to legal, environmental and religious hurdles.

With the controversy continuing to dog big hydel projects, the government chose to focus on small hydropower projects (SHPs) and solar lanterns and various other power issues in the wake of the June floods. However, it did not give details about the extent of damage to various hydropower projects caused by the devastating floods that crippled the economy of the most of the hilly areas. It also did not focus on the future policy plans related to the hydropower sector.

After the Supreme Court’s judgment in August, the government has chosen to remain silent on the issue. The chief minister, who is holding the power portfolio, blames the previous BJP government for “ruining” the hydropower sector, saying the previous regime had suspended a series of hydel projects.

So far, the government has maintained that it would study the Supreme Court’s ruling on hydel projects. The apex court’s order had called for a review of 24 hydropower projects on which the Wildlife Institute of India had given its report last year. The Supreme Court, in its order, had also asked the state government not to grant fresh permissions to new projects till further orders and called for setting up of an expert committee to study the 24 hydel projects.

A preliminary assessment of the apex court’s order made by the state-run power generation company UJVN Ltd revealed that a total of 35 projects with a capacity of 4200 Mw are under review. “Our assessment is that a total of 35 projects are under review,” said UJVN Managing Director G P Patel.

Significantly, the centre had declared an eco-sensitive zone in Uttarkashi district along the 100-km stretch of Bhagirathi river that had sounded a death knell for 1,743 Mw of power projects. Moreover, the final report of the inter-ministerial group (IMG) headed by B K Chaturvedi had also badly impacted the hydropower sector in the Ganga river basin to the tune of 6,000 Mw. “If we consider the eco-sensitive zone, the BK Chaturvedi report and the Supreme Court’s order, there is an overlapping of projects which are under review,” said the official. “So we have to study the judgment very carefully to make further comment,” the official added.

A total of 69 hydropower projects with a capacity of more than 9,000 Mw were under review by the inter-ministerial group which was set up following agitations by environmentalists and religious leaders against the development of scores of hydel projects on the holy river Bhagirathi. In its recommendation, the committee said no new hydropower projects should be taken up beyond the 69 projects. And among the 69 projects, the committee has set certain limitations. This means the group had recommended the construction of hydropower projects of 3,000 Mw only, that too with tough riders.

Pending a long-term perspective on the Ganga basin management plan, the committee also proposed that small tributaries of Ganga like Nayar, Bal Ganga, Rihsi Ganga, Assi Ganga, Dhauli Ganga, Birahi Ganga and Bhyunder Ganga would be kept in pristine glory without developing any hydel projects. In the IMG’s assessment this will mean a loss of 400 Mw of power to Uttarakhand.

When contacted, Additional Secretary, Power, M C Joshi said the centre had already set up a committee for the review of the projects in Alaknanda and Bhagirathi valley under the Supreme Court’s order. “Till the final report comes, we cannot comment on the issue,” said Joshi.

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Bid submission dates for Odisha, Tamil Nadu UMPPs extended till end of november 2013...

 

The bid submission dates for the proposed ultra mega power projects (UMPPs) in Odisha and Tamil Nadu have been extended to the last week of this month.

The dates for submission of preliminary bids for the Odisha and Tamil Nadu UMPPs have been extended due to amendments in certain provisions of the RFQ (Request for Qualification), as per a circular on the website of Power Finance Corporation.

"The last date of submission of application for pre-qualification for Odisha UMPP is extended to November 25 and for Tamil Nadu to November 28, " the circular said.

The earlier date for bid submission for both the UMPPs was today (November 11, 2013).

These projects are estimated to cost Rs 25,000 crore each. The UMPP in Tamil Nadu is to be constructed in Cheyyur and the one in Odisha will come up in the Sundergarh district.

Cheyyur UMPP is a coastal power project based on imported coal. The beneficiary states are Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Kerala, Uttar Pradesh and Punjab.

The Odisha project will be a coal-fired pit head project and the fuel will be sourced from Meenakshi, Meenakshi B and dip side of Meenakshi mine in Ib Valley coalfields.

These projects are to be executed on DBFOT - design, build, finance, operate and transfer - model.

The RFQs for both these projects were floated by PFC -- the nodal agency for UMPPs -- in September this year.

UMPP is a big-size coal-based thermal power plant of minimum 4,000 MW capacity.

These bids have been invited after the government revised the existing Standard Bidding Documents.

Under the revised norms, any escalation in cost of fuel will be passed on to the consumer in the form of higher tariff and the companies executing the projects will have to mandatorily source equipment from domestic manufacturers.

So far, four UMPPs have been awarded. Of these, three -- Sasan ( Madhya Pradesh), Krishnapatnam (Andhra Pradesh) and Tilaiya ( Jharkhand) -- have been bagged by Reliance Power.

Tata Power is operating the Mundra UMPP in Gujarat.

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Tatas, Jindal Steel to lose captive coal mines...

 

Tata Group, Jindal Steel and Power Ltd (JSPL), and Monnet Ispat & Energy are among the 11 companies that will have to give up captive coal blocks.

Tata Group and JSPL were given mines to develop coal-to-liquid (CTL) projects, while nine companies, including Monnet Ispat & Energy, were awarded blocks to feed steel and power projects. (In a CTL project, liquid fuels such as methanol, petrol and diesel are produced from coal.)

A decision to this effect was taken on Monday by an Inter-Ministerial Group headed by Additional Secretary to the Coal Ministry.

The recommendations will be sent to Coal Minister Sriprakash Jaiswal for a final decision, a senior official told.

The committee that undertook a review of 30 blocks found progress in mines awarded to NTPC, SAIL and GVK Power, the official added.

In 2009, the North of Arkhapal Srirampur block in Odisha with nearly 1,500 million tonnes of estimates reserves was awarded to Strategic Energy Technology Systems Pvt. Ltd. (SETSPL), a joint venture between the Tata Group and South Africa’s Sasaol. Ramchandi Promotional block with similar coal reserves was awarded to JSPL. But neither of the companies has developed the block nor made progress in setting up the CTL plant.

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