India offers all assistance in Renewable Energy to Nepal...

 

India has offered all possible assistance to Nepal in developing its renewable energy resources. This offer was made by Dr. Farooq Abdullah, Minister for New and Renewable Energy when he called on the President of Nepal, Dr. Ram Baran Yadav at Kathmandu.

Dr Abdullah was on a day-long visit to the Nepali capital. During the meeting, Dr Abdullah also conveyed the congratulations of the government of India on the successful conduct of the second constituent assembly elections in Nepal.

Dr Abdullah also called on Mr Khil Raj Regmi, Chairman of the Council of Ministers of the Interim Election Government. During the meeting, Dr. Abdullah briefed him on the energy situation in India and the rapid growth of the renewable energy sector in India. He spoke of India’s plans to add significant amounts of renewable energy to its energy mix in the next 5 years. He also highlighted India’s conducive and investor friendly policy framework for promoting renewable energy in a big way. Dr. Abdullah suggested that Nepal had great potential for enhancing its use of renewable energy resources, particularly, hydro, solar and biomass and offered to provide all possible assistance for the purpose.

Earlier, the Minister inaugurated the India INVESTRADE in Nepal-an exposition and buyer seller meet on the electrical equipment and energy sector. Speaking on the occasion, Dr Abdullah made a strong pitch for cooperation between the two countries to develop Nepal’s hydropower resources. Terming it a ‘win-win proposal’, he urged for a meaningful cooperation between the countries to ease the power situation. He also urged the Indian exhibitors who were part of INVESTRADE to work closely with their Nepali counterparts to help develop Nepal’s vast and untapped energy potential.

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TERI speaks about the need of long-term policies in the renewable energy sector...

 

Shirish Garud, Senior Fellow, Energy Environment Technology Applications, TERI, speaks about the work his organization is doing in the renewable energy space and what currently ails India's power sector

Q: TERI  has been working in the renewable energy and solar thermal power plants sector for a while now. Tell us a bit about how your projects in this space will benefit people and is the common man actually aware of the benefits of alternative energy?

A: TERI is working in renewable energy sector for couple of decades now. Further, it has established village level solar minigrids and biomass gasifier and solar PV technology based power plants in villages. These projects not only provide basic lighting but also power internet enabled computers and printers used for knowledge gain, provide power for  running small business or income generation activities such as bamboo splitting, turmeric grinding and so on. These projects provide the beneficiaries with the opportunities for economic activities and avenues for income generation. Our experience is that the common man is getting aware of the benefits of these activities and renewable energy power plants.

Q: With pressure on coal and natural gas increasing, will renewable's be able to meet India's energy needs?

A: Our demand for energy, both for power generation and for other applications such as industrial processes, heating and cooling, agriculture etc., is very high compared to the potential of renewable energy resources except solar energy, which has huge potential provided we can have access to the land for solar installations. However, in practice, the renewable energy applications will be limited and currently I don't foresee renewables will be able to meet India's all energy needs. However, in future we have potential to achieve about 15-30 % of India's energy needs in power sector through renewables.     

Q:What according to you is the single biggest factor ailing India's power sector today? A: I think inefficient distribution network, infrastructure and uneconomical and inefficient operations of the distribution companies are the biggest factors ailing India's power sector. Q: Most of our power is thermally generated. Why do we still lag when it comes to harnessing renewable energy sources?

A: We need huge investments in renewable sector and more progressive policies for integration with conventional grid network for renewable sector to grow rapidly. The policy environment is reasonably positive, however, long term policies are needed which can help to take it forward. 

Q: What are the challenges the renewable energy sector in India faces?

A: Renewable energy sector is rapidly evolving and major challenges faced by the sector can be summarized as under

• Lack of stable long term policies for promotion.
• Difficulties in getting latest technologies and efficient process knowhow
• Inadequate support for research and development and commercialization of home grown technologies
• Resistance from conventional power sector players to adopt and integrate the renewables.
• For higher percentage of RE integration we need to have latest technologies in energy storage and control to improve dispatchability of the renewable power plants. I think this area will be of great interest in coming years.
• Hurdles in land acquisition and spiraling land costs

Having said this, I must mention that in recent years both the central and state governments have been promoting large scale integration of renewables especially for power generation and National Action Plan for Climate Change (NAPCC) and National Solar Mission, one of the eight missions identified under NAPCC, along with Electricity Act 2003 are major drivers for renewable power sector. Progressive regulatory measures such as Renewable Purchase Obligations (RPO), Renewable Energy certificate (REC) scheme, tax incentives, preferential tariffs are also providing required impetus to the sector.

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EuroPacific Growth Fund raises Power Grid stake to over 5%...

 

EuroPacific Growth Fund, one of the largest shareholders in Power Grid, has hiked its stake in the state-run utility to 5.4 per cent after acquiring additional shares through the open market.

The Foreign Institutional Investor has increased its shareholding in Power Grid to 5.419 per cent from 4.681 per cent, according to a regulatory filing today.

The entity acquired about 3.9 crore shares, making up for around 0.738 per cent stake in the power transmission firm. These scripts were acquired through open market on December 19, the filing said.

At the end of September quarter, EuroPacific Growth Fund had 3.91 per cent stake in the company.

Earlier this month, Power Grid sold 78.70 crore shares through a Follow on Public Offer (FPO). It included a fresh issue of 60.18 crore equities and sale of over 18.51 crore scrips by the government.

Shares of Power Grid closed flat at Rs 99.55 on the BSE.

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All initial RFQs qualify to submit price bids for TN and Odisha UMPPs...

 

All the companies that submitted initial bids (request for qualification or RFQ) for 4,000 mw each ultra mega power project (UMPP) at Bhedabahal in Odisha and Cheyyur in Tamil Nadu have been asked to give price bids (Request For Proposal or RFP).

The price quotes for these two projects have to be submitted within 45 days. Power developers generating electricity at the cheapest rate would emerge the winner. The project is likely to be awarded by the end of the current fiscal.

For the Rs 25,000 crore Odisha power project, nine companies – NTPC, Tata Power, NHPC, Adani Power, JSW Energy, Jindal Power, Sterlite Infraventures, CLP India and Larsen & Toubro – have submitted bids.

Excepting Tata Power, all these companies also put their bids for Rs 24,200 crore imported coal based UMPP in Tamil Nadu.

The initial bids were evaluated by an Apex Evaluation Committee headed by V K Shunglu, former Comptroller and Auditor General (CAG).

While the Odisha project will be based on domestic coal, the Tamil Nadu project would be fired from imported fuel.

According to Minister of State (Independent Charge) for Power Jyotiraditya M Scindia, the Government is offering investment-friendly parameters for these projects and claims to have cleared the major regulatory hurdles required for the setting up of mega power projects.

In August, the revised standard bidding documents were given the go-ahead by an Empowered Group of Ministers.

At present, India has awarded four ultra mega power projects — one to Tata Power and three to Reliance Power. So far, only Tata Power’s project at Mundra in Gujarat is fully operational.

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Year end review of Indian Power Sector for the year 2013 by Power Ministry...

 

Power Ministry has done an year end analysis of the progress made by the Indian Power Sector during the year 2013.

The same has been depicted below:

 

 

Major Achievements:

• Power generation capacity addition exceeds target in 2012-13
• Highest ever power generation capacity added in a year
• RGGVY reforms undertaken to benefit the poor
• Financial Restructuring Plan to strengthen the State- owned DISCOMs
• Grid security and grid discipline becomes priority
• Two more UMPPs reach bidding stage under revised bidding norms
• 6.5 million tons of oil equivalents saved in the PAT scheme within a year of its launch

Power is imperative to the overall development of a nation. Be it faring well on the healthcare index or ensuring that every child goes to school, availability of electricity is closely linked to these as well as other indicators of progress. Managing energy resources well not only ensures economic progress but also social development.
 
The year 2013 saw several important decisions and critical steps  being taken to speed up the languishing power projects, remove bottlenecks, and interact closely with all stakeholders whether state governments, ministries, or the private sector to make power generation a seamless process.
 
Installed Capacity/Capacity Addition and Power Generation:

The total installed capacity of the power sector stood at 2,29,252 MW by 31st October 2013 with the private sector contributing a significant 72,927 MW and including 12% from Renewable sources. The power sector saw a total capacity addition of 20,622.8 MW during 2012-13 which is the highest record of capacity addition in a year so far with a little less than half of it coming from the private sector and also exceeded the target of 17956 MW  for the year 2012-13. For the year 2013-14 a capacity addition target of 18,432 MW including 2000 MW of nuclear power has been set, with the highest contribution of 7859 MW expected from the private sector. A capacity addition of 7,008 MW has already been achieved till 10.12.2013.

24th May, 2013 was a historic day in for power generation in India with the highest ever generation of 128 GW in a day.

Power generation in India is still heavily reliant on coal and gas with thermal accounting for more than 80% of annual power generation. State owned NTPC emerged as the largest power producer in the country accounting for more than 28% of power produced in the country in 2012-13.

The total power generation of 912 Billion Units in 2012-13 from conventional sources fell only marginally short of the target. The power generation target for 2013-14 is 975 BU out of which 562 BU was already achieved by 31st October, 2013.

Power Supply position in the country has improved during the current year (2013-14). The energy and peak shortages in the country have reduced from 8.6% & 9.0% during April-2012 - Nov, 2012 to 4.5% & 4.2% respectively, during April- Nov, 2013.

Transmission

Inspite of bottlenecks , it was possible to add 17107 ckm of transmission lines during the year 2012-13 and it is proposed to lay 18674 ckm of transmission lines during 2013-14, out of which  7620 ckm is already achieved till November 2013.   Number of substations targeted for the period are 35363 MVA and achieved upto Nov 2013 are 26180 MVA. Purnea- Bihar Sharief transmission line which was commissioned this year  became the  first transmission line in the private sector .

Work is now on on transmission voltages of -+800kV HVDC & 1200kV 1200kV UHVAC after  Conserving Right-of-Way (RoW), minimizing impact on natural resources, coordinated development of cost effective transmission corridor, flexibility in upgradation of transfer capacity of lines matching with power transfer requirement became  major areas of concern in development of transmission network in the country.

The southern grid connectivity got fast-tracked in the current year and 60 per cent of the work got completed with the establishment of 315 towers.  The grid connectivity is likely to be completed by January, 2014.

R-APDRP (Restructured-Accelerated Power Development and Reforms Programme)

Under R-APDRP, government gives financial assistance for setting up automated systems of energy data collection and energy accounting and incentives by way of grants for reducing AT & C losses. Projects worth Rs. 37,189.82 cr are now under implementation.

RGGVY (Rajiv Gandhi Grameen Vidyutikaran Yojana)

The government has been able to surpass the targets set for the RGGVY under the Bharat Nirman programme. Since its inception, electrification works in 1.08 (96%) lakh un-electrified villages, 3.03 lakh (79%) partially electrified villages have been completed and free electricity connections to 2.13 crore (77%) BPL households have been released under RGGVY as on 15.11.2013. Reforms introduced in RGGVY this year are meant to ensure energisation of villages as compared to mere electrification.  Now, villages with just 100 people will also get access to electricity while there has been an increase in prescribed load for a BPL household to 250 watts (up from 40 watts)  and for an APL household to 500 watts (up from 250 watts).

Financial Restructuring of State DISCOMs

To rescue the state owned DISCOMs from their financial difficulties, the scheme of Financial Restructuring Plan was notified this year. The scheme provides for various measures to ensure financial and operational discipline for the state owned DISCOMs and support from the GOI in the form of Transitional Finance Mechanism.  The scheme has been successfully implemented in Tamil Nadu, UP, Rajasthan and Haryana. FRPs have also been finalised for states of Bihar, Jharkhand and Andhra Pradesh.
Rationalisation of tariffs has already been carried out by 24 SERCs/JERCs.
 
Grid Security & Grid Discipline

Managing the world’s third largest power transmission system grid is an increasingly complex task. India faced major grid failures in July 2012. To ensure grid security, islanding scheme for Delhi has been completed while that for UP, Punjab and Haryana under finalisation. Unscheduled drawals were strictly controlled during the peak season this year. Discoms were asked to ensure compliance within +/- 150 MW or 12% of their schedules irrespective of frequency. Feeder transmission lines were identified for disconnection in case of violation of overdrawal limits.  Installation of Syncro Phasor Management Units for real time network management at a cost of Rs 655 cr was also approved.
 
Further, the establishment of Power System Operation Corporation (POSOCO) as an independent wholly owned Government of India Company, under the administrative control of Ministry of Power, is under consideration of the Government of India.
 
Smart Grid

14 Smart Grid Pilot projects identified in 2012 were approved for 50% funding by Government of India in July 2013.

The Smart Grid Vision and Road map document for India was released during Power Minister’s Conference on 10th Sep’13. Activities for planning the launch of National Smart Grid Mission have been initiated.
 
Emphasis on clearances & removing bottlenecks

Large number of power projects have been held up for want of environment and forest and other clearances and due to fuel supply bottlenecks especially with regard to coal and gas. This year the emphasis has been to follow up on these aspects with a sense of extreme urgency. As a result, as many as nine important hydro electric projects received environmental, forest and wildlife clearances this year including Teesta- IV in Sikkim, Kol Dam in HP, Tawang-II in Arunachal Pradesh, Loktak in Manipur among others.
 
With the concerted efforts made by MOP, Power Unities have already signed fuel supply agreements for 157 Units totalling around 71,000 MW upto 27.11.2013 out of a total of 78,000MW.
 
To ensure good quality coal to power producers, the Ministry of Power (MoP) had taken up with Ministry of Coal (MoC) for introduction Third Party Sampling in supply of coal.  Coal India Ltd. has appointed an agency for Third Party Sampling.  Third Party Sampling became operational from October onwards.
 
Pass Through Mechanism was also introduced in the current year to allow power producers of competitively bid power projects to pass on the hike in fuel cost like imported coal into the tariff. Hike in fuel costs affect the viability of power projects whose tariff is not charged on cost plus basis.

Due to shortfall in production of domestic coal by 75 MT, Power Utilities have been advised to import 50 MT of imported coal as per the equivalent Gross Calorific Value (GCV) of the imported coal.
 
In a major victory for the power sector, the government decided that the total domestic gas supply to fertilizer sector be capped at their present level of 31.5 MMSCMD and all additional domestic gas from the year 2013-14, 2014-15 and 2015-16 will be allotted to power sector to help improve generation.
 
Ultra Mega Power Projects

The revised Standard Bidding Documents for Ultra Mega Power Projects (UMPPs) were introduced this year which include several features that are designed to boost investors’ confidence. On the basis of these revised Bidding Documents, two UMPPs have been brought to bidding stage ie  Odisha and Cheyyur (Tamil Nadu) UMPPs . These UMPPs will provide an investment opportunity of over Rs.40000 crore to private sector both domestic and overseas and would lead to a capacity addition of about 8000 MW.

4 UMPPs have so far been transferred to the selected developer namely (i) Mundra in Gujarat, (ii) Sasan in Madhya Pradesh, (iii) Krishnapatnam in Andhra Pradesh and (iv) Tilaiya in Jharkhand.All the five Units (5X 800 MW) of Mundra has been commissioned.
Sasan first Unit (1X 660 MW) commissioned in May, 2013.
 
Several other UMPPs are in the pipeline ie (i) Nayunipalli in Andhra Pradesh, (ii) Husainabad in Jharkhand, (iii) Bijoypatna in Bhadrak district for coastal location and Narla & Kasinga in Kalahandi district for inland location in Odisha, (iv) UMPP in Bihar and (v) sites in Tamil Nadu and Gujarat for second UMPPs (Site yet to be finalized).
 
Special Focus on Jammu & Kashmir and North-Easter Region (NER)

24 hours power supply was assured to distant Leh and Kargil areas by the full commissioning of the Nimu Bazgo and Chutak Hydro Projects in J&K this year. The Transmission line from Srinagar to Leh was approved which will provide the much needed electricity to the Ladakh region. In J & K, 14 projects (3 projects in 10th Plan and 11 projects in 11th Plan) have been sanctioned under RGGVY. Cumulatively, as on 15.11.2013, the electrification works in 192 UE villages and 3,018 PE villages have been completed and free electricity connections to 64,255 BPL households have been released.

Adequate funding will be made available to Arunachal Pradesh for their sub-transmission projects. The Northeast Agra link to transmit clean energy from the North-Eastern and Eastern region of India to the city of Agra across a distance of 1,728 kilometers has already been inaugurated. Foundation stone was laid for Bishwanath-Chairyali (6000 MW)  HVDC link for evacuation of power from Hydro projects in NER. Due to constant pursuance with DONER, EGOM has been set up for resolving issued concerning clearances and infrastructure requirements for Hydro Projects in the North-East.

Efforts on war footing being made for speedy clearances to hydro electric power projects in the J & K and NER like  Dibang Central (3000 MW) by NHPC in Arunachal Pradesh, Tipaimukh Central (1500 MW) by NHPC in Manipur, Pakal Dul (1000 MW) under Joint Venture in J&K, Subansiri in Assam among others.
 
Energy Efficiency & Energy Saving

The Perform, Achieve and Trade (PAT) scheme under the National Mission for Enhanced Energy Efficiency (NMEEE) has already helped to save 6.5 million tons of oil equivalent within a year of its launch last year.
 
Various Energy Efficiency Policies of Government of India have resulted in an Avoided Generation Capacity to the tune of 10,836 MW during 11th plan period.
 
The participating units of 2013 National Energy Conservations Awards programme have achieved an annual monetary savings of Rs. 4141 Crores. These units have also saved energy equivalent to the energy generated from a 711 MW Thermal Power Station.
 
It has been mandatory from this year onwards that all ministries/departments while procuring appliances will ensure that they show the threshold BEE star rating carried against them. This scheme of public procurement of energy efficient appliances will help to save 15-20% energy use of these offices equivalent to avoided installation of a 250 MW capacity thermal power plant.
 
Institutional Mechanism to address problems faced by the power sector

For the first time, two conferences of state power Ministers and Secretaries were held in a year. Also for the first time two meetings were held with heads of CERC/SERCs this year. Advisory group of industrialists, consultants and economists has been set up to come up with joint solutions to problems facing the power sector. The group meets very frequently. Frequent meetings of Parliament Consultative Committee are being held on critical issues facing the power sector.

In a nutshell this has been an action packed year for the power sector wherein all the stakeholders worked with a determination to take this sector to a new high.

Source: Power Ministry

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Gayatri Projects to reduce stake in NCC Power Projects...

 

Gayatri Projects (GPL), an infrastructure company, proposed dilution of company's stake in NCC Power Projects to below 45%.

Gayatri's wholly owned subsidiary Gayatri Energy Ventures is a major partner in NCC Power Projects, which is building a 1,320 MW Coal fired plant in Nellore district in Andhra Pradesh.

At present preliminary discussions are taking place between NCC Infra and Sembcorp for the investment in NCC power projects, which is subject to a detailed technical, financial, commercial & legal due diligence.

The terms of investment including structuring will be finalized after the due diligence process and negotiations are completely between the parties. As a result of the proposed investment the stake of the Gayatri Energy ventures (WOS of Gayatri Projects) (Q,N,C,F)* may be reduced below 45%.

Shares of the company gained Rs 2.3, or 4.04%, to trade at Rs 59.20. The total volume of shares traded was 44,696 at the BSE (12.10 p.m., Monday).

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Tata Power gets approval to postpone solar target until 2016...

 

Tata Power Co. Ltd won approval from an Indian state electricity regulator to postpone fulfilment of annual solar-power procurement targets by as many as five years to 2016.

The utility unit of India’s biggest industrial group has been unable since 2010 to source enough solar power to meet government renewable mandates because of a shortage of sun-based generation in the country, the Maharashtra Electricity Regulatory Commission said in a 20 December order.

“It faced a genuine difficulty,” the commission said, waiving fines and ordering the company to fulfil five years of targets by 31 March 2016.

The government requires electricity distributors and large industrial companies to get as much as 10% of their power each year from renewables. In Maharashtra state, where Tata Power generates and distributes electricity, the company faced a solar procurement target of 0.25% that rises to 0.5% in the fiscal year starting April.

India doesn’t have the 3,500 megawatts of installed solar capacity required to allow all companies to comply with their obligations, according to the order. As of October, the nation had 2,080 megawatts, less than 60% of the capacity needed, according to data from the ministry of new and renewable energy.

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HCC bags order worth Rs 15.97 bn from THDC India for Hydro Power Project...

 

Hindustan Construction Company bagged contract worth Rs 15.97 billion from THDC India to construct Vishnugad Pipalkoti Hydro Electric power project in Chamoli district of Uttrakhand.

This is an EPC contract (engineering, procurement and construction) for civil works, hydro-mechanical works including penstock steel liner of the hydro electric power project. The project will be completed in 54 months.

Shares of the company gained Rs 0.44, or 3.26%, to trade at Rs 13.93. The total volume of shares traded was 401,319 at the BSE (11.08 a.m., Monday).

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Arunachal Government imposes load restrictions on power supply...

 

In view of the onset of the lean hydro season and subsequent reduction in the state's power allocation, the Arunachal Pradesh government has imposed a load restriction on power supply as per allocation with immediate effect.

"As power availability and demand vary from time to time, the notice revision by various generating stations, the quantum of power allocated, duration of imposition and area to be covered may vary with time," an official order said here on Saturday.

All divisions and districts should strictly abide by all directives, the order issued by the State Level Distribution Centre (SLDC) added.

In the event of non-compliance by any division, the government has empowered the SLDC as per regulations of the Arunachal Pradesh State Electricity Regulatory Commission (APSERC) and the Central Electricity Regulatory Commission (CERC) to disconnect the entire division or district from the grid sub-station to protect the stability of the system, the order said.

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Update from SECI: JNNSM Phase II Batch I- Extension of Last date of Submission of Bids...

 

 

 

 

In view of various requests/representations received by SECI/MNRE on the above mentioned subject, it is hereby notified that the last date of submission of bids in response to the RfS No. SECI/JNNSM/SPV/P-2/B-1/RfS/102013 dated 28th October, 2013, has been extended from 28th December, 2013 to 20th January, 2014 (Upto 12.30 Hrs).

Amendments and clarifications related to the VGF Securitization Agreement shall be uplaoded shortly.

Source:SECI

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Government to auction four Odisha coal blocks...

 

The government has decided to auction four coal blocks in the Talcher region of Odisha, having a total reserve of 2.33 billion tonne, or about five times that of Coal India’s output last year, to power utilities.

The auction would be done as per the ‘Auction by Competitive Bidding of Coal Mines Rules 2012’. Accordingly, companies which have been awarded power projects through competitive bidding for tariff, would be allowed to participate.

“The government proposes to allocate coal blocks to companies awarded power project on the basis of competitive bids for tariffs. Accordingly, applications are invited from the eligible government companies and corporations through respective state governments as per rules of the Auction by Competitive Bidding of Coal Mines Rules, 2012,” a letter of coal ministry issued on Friday said.

The blocks notified for auction are Karadabahal, Brahmanbil and Phulajhari (east and west) spread over an aggregate area of 19 sq km.

This is the second round of coal blocks being put up for auction ever since the government notified the auction in February 2012.

Last December, the coal ministry had put up the first list of 17 blocks following which mines were allocated to companies like Orissa Mineral Development Corp and also states of Chhattisgarh and Madhya Pradesh.

The ministry is also in the process of allocating blocks to Maharashtra, Haryana, Uttar Pradesh, Tamil Nadu, Punjab, Karnataka, West Bengal, Gujarat, Andhra Pradesh and Jammu & Union Kashmir.

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Government working on policy to fast-track clearances for the power projects...

 

The power and environment ministries are working together on a policy to fast-track project clearances by which clearances would be considered as deemed in case central and state governments failed to clear them within a specific deadline.

"The power and environment ministries are working together for a policy to allow clearances within a time period. A lot of time is now being consumed on environment and forestry clearances at state and centre levels for power projects. Now, if you won't get those clearances within a timeline, the clearances would be considered as deemed and the company can start its work, Power Minister Jyotiraditya Scindia said here Saturday at an interactive session during the 86th Annual General Meeting of the Federation of Indian Chambers of Commerce and Industry.

The Cabinet Committee on Investments (CCI) has put in motion a process to bring 255 stalled projects involving an investment of Rs 10 lakh crore for speedy clearance. On Friday it queried the power ministry regarding land acquisition for ultra mega power projects (UMPP).

Scindia also said the power ministry will circulate two cabinet notes within a month proposing changes in the Tariff Policy and Electricity Act 2003.

There would be two separate cabinet notes and I am speaking to various stakeholders and it is set to come up within a month's time," Scindia said.

The various stakeholders in this case are the Central Electricity Authority (CEA), Central Electricity Regulatory Commission (CERC), principal secretaries of all state governments and the power generation, transmission and distribution utilities. -

Source

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Reforms, rate hikes to drive power sector...

 

Power is a vital input for industrialisation and economic growth. For emerging markets like India with high growth potential, quality power in adequate quantity is crucial for achieving their economic and social targets. With an installed capacity of 230 GW, India’s power sector is the fifth largest in the world.

But our per capita consumption is only 770 kwh against the global average of 2,600 kwh and the European Union average of 6,200 kwh. It is clear, therefore, that the potential for growth is substantial. India needs to double its generation capacity over the next 10 years to meet this demand.

Coal-fired plants account for 57 per cent of our installed capacity while 19 per cent comes from hydro power. Renewable power and natural gas account for 12 per cent and 9 per cent, respectively. Excessive dependence on coal-fired plants is posing problems for the sector plagued by perennial coal shortages and policy constraints.

Even though impressive capacity has been installed during the past three years, much of the capacity is lying unutilised due to shortage of coal and pricing issues regarding imported coal. The power equipment manufacturing segment is constrained by slowdown in capacity addition and competition from international players. Revenues and profitability of the sector have been impacted by these constraints.

Now, some silver linings are emerging from the dark clouds, which have been hovering over the industry for quite some time. Power tariff hike in many states, bailout packages for SEBs, permission for imported coal price pass-through for PPP projects and CCI clearance of projects worth Rs 1 lakh crore are clear positives for the industry. Long-term investors can slowly start accumulating some promising stocks in the industry. Investors should consider balance sheet risks while looking to buy stocks, which may appear to be attractively valued.

Companies which face constraints relating to issues like dependence on imported coal (Adani Power), non-availability of gas due to issues relating to KG D6 basin and fixed power tariff etc (Reliance Power) are likely to find the going tough for some more time. Tata Power looks promising. NTPC with 35,000 mw capacity and massive capacity expansion plans is attractively priced now. PowerGrid also holds a lot of promise. With political stability after elections, reforms in the power sector are inevitable. Therefore, it would be realistic to be optimistic about the sector, going forward.

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Government moves RBI to bail out lenders of Dabhol Gas based power plant...

 

Coming to the rescue of the lenders of Ratnagiri Gas and Power Projects Ltd (RGPPL), including SBI and ICICI Bank, and PSU promoters NTPC Ltd and GAIL India Ltd, which have huge exposure in the beleaguered Dabhol project, the finance ministry has asked the Reserve Bank of India (RBI) for a one-time relaxation to save the company and its Rs. 13,000-crore  assets from being classified as a non-performing asset (NPA).

“At a recent meeting chaired by finance secretary Arvind Mayaram it was directed that the department of financial services (DFS) will take up the matter for relaxation of asset classification norms to RGPPL with RBI, with a request for extended forbearance till March 31 2014 as a one-time exception, considering the circumstances and the exposure of PSUs, including PSU banks,” a senior government official told Hindustan Times.

The move would not only provide RGPC a breather, but also give some time to the lenders who would otherwise have had to show fresh slippage in their books.

RGPPL is the company promo­ted by NTPC and GAIL India’s largest gas-based power plant, the 1967 mega watt Dabhol Power project that is currently stranded due to lack of availability of domestic natural gas.

The lenders and PSU promoters of RGPPL have been sounding the alarm over Dabhol’s balance sheets. NTPC, SBI and ICICI Bank had in separate communications to the government warned that the project is on the verge of becoming an NPA, which would have a backlash on its promoters.

The company has a debt exposure of Rs. 8,500 crore, apart from equity ownership by PSU and banks.

“The viability of the plant is in question, and it was clearly pointed out in the meeting that RGPPL has not been able to repay debt to lenders from September 2013, and unless adequate affordable domestic gas is ensured and the beneficiaries commence paying corresponding fixed cost, the plant will be declared an NPA,” the official said.

The meeting also decided that the petroleum ministry would move a note seeking directions from the empowered group of ministers (EGoM), about gas allocation and implementation of priority to RGPPL along with fertiliser units as per its original decision.

Further, Mayaram will write to chief secretary of Maharashtra, indicating that the state government is required to pay outstanding dues to RGPPL for the period when power was supplied to it.

Source

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NTPC seeks land for ash pond, rail corridor for 1600 MW super thermal plant at Gajamara in Odisha...

 

NTPC Ltd, the country's biggest thermal power producer, has sought 745.15 acres of land for ash dyke, reservoir area, ash pipe line corridor and railway line corridor for its 1600 Mw super thermal power project coming up at Gajamara in Dhenkanal district.

The power generating utility wants 437.12 acres for ash dyke and 11o.61 acres for reservoir area.

Similarly, it has put the requirement for its ash pipe line corridor and railway line corridor at 56.3 acres and 138.12 acres respectively.

The state-owned Investment Promotion & Investment Corporation of Odisha Ltd (Ipicol) has assessed the land requirement at 538.34 acres against NTPC's demand of 745.15 acres.

Ipicol has recommended to the energy department to accord administrative approval to NTPC for the land.

Notification under Section 4 (1) of Land Acquisition Act has already been issued for acquisition of private land for the Gajamara project. NTPC has urged the state government to expedite issue of 6 (1) notification. The Gajamara project needs 1013 acres of land.Of the total land needed for the project, 795.85 acres are privately owned. The land is to be acquired in four affected villages- Talabarkote (440.23 acres), Patra bhag (194.61 acres), Manipur (99.46 acres) and Siaria (61.55 acres). NTPC has to fork out Rs 152.54 crore for acquisition of the private land.

NTPC will set up a power engineering institute at Dhenkanal that is linked to its Gajamara plant.

The utility major is setting up another super thermal power plant at Darlipalli in western Odisha's Sundargarh district. This plant is expected to be commissioned by 2018.

The Darlipalli super thermal power project will draw water from the Hirakud reservoir in the Mahanadi river.

NTPC has secured coal linkage for this project in the form of Dulanga coal block with mine capacity of seven million tonnes per annum (mtpa) under command area of Mahanadi Coalfields Ltd (MCL) and Pakri Barwadih block in Bihar's Hazaribagh district with 12.5 million tonne per annum (mtpa).

Source: Business Standard

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MERC against competitive bidding in wind power purchase by state Discoms...

 

Even as MSEDCL is facing allegations of irregularities in power purchase, Maharashtra Electricity Regulatory Commission (MERC) has turned down a plea in which MSEDCL was seeking transparency.

MSEDCL wanted to purchase wind power through competitive bidding, but the Commission wants MSEDCL to buy it at rates fixed by it. MSEDCL filed a petition in MERC seeking a review. The Commission agreed that it was a valid point, but referred the matter to a committee headed by principal secretary (energy), with representatives of wind power companies, Maharashtra Energy Development Agency (MEDA) and consumers representatives. Incidentally, principal secretary (energy) Ajoy Mehta is also managing director of MSEDCL.

The committee was constituted on October 1 to study wind energy situation in the state and was asked to submit its report in three months. The Commission has refused to grant interim relief to MSEDCL in the meantime.

Mahagenco and MSEDCL had accused the Commission of favouring wind power producers. They charged that the rates of wind power approved by it are the highest in the country, but the rates of solar power, whose sole generator is Mahagenco, are one of the lowest. However, the Indian Wind Power Association (IWPA) submitted data to MERC proving MSEDCL wrong.

MERC's rate for wind power ranges from Rs 4.93 to Rs 5.67 per unit, which is far higher than thermal power rates (except new units of Mahagenco). MSEDCL has resolutely opposed purchase of wind power on the grounds that it will burden consumers, but MERC has not refused to buy this agreement. Now, MSEDCL wants competition to lower the rates.

During the hearing, MSEDCL submitted that the rates of solar power have come down due to competition, and the same would happen in wind also. It pointed out that Section 63 of the Electricity Act, 2003, did not make any segregation in purchase of renewable energy and non-renewable energy.

While agreeing that wind power was costly, MERC told MSEDCL that it had to meet renewable energy purchase obligation (RPO) target set by central government. The company had failed to meet its target in 2012-13 even though the entire contracted capacity of 2,350MW had been commissioned.

MERC has also turned down MSEDCL's plea for a uniform wind power tariff in the state. The Commission has divided the state into two zones for calculating the rates. It is Rs 4.93 per unit in one zone and Rs 5.67 per unit in the other. The Commission said in the order that zoning was done after taking views of all concerned parties and as per norms of renewable energy tariff regulations. Therefore, any revision was not desirable, it said.

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ReNew Power scouts for fresh investors to boost renewable energy installations...

 

ReNew Power Ventures, an independent renewable energy power producer in the country, is scouting for fresh investors, its founder said."We are looking for high quality investors who have a good understanding of the renewable energy sector," Sumant Sinha, founder chairman and CEO at Re-New Power.

Currently US investment bank Goldman Sachs owns the company, which has an installed wind power capacity of 375 mw.

"Our revenues consolidate into the parent account of Goldman Sachs and they directly monitor our growth," said Sinha, who is a former chief operating officer at Suzlon Energy, one of the largest wind turbine manufacturers in the world. Goldman Sachs has invested about $320 million (approx Rs 1,980 crore in current exchange rate) in ReNew Power in two phases, making it the largest investment so far in Indian renewable energy generation industry.

"Their investment in the initial stage helped us adopt stringent policies and put in place financial parameters," Sinha said.

Goldman invested $250 million in the first phase and announced another $135 million in the second phase. ReNew Power, which has wind power projects totalling 300 mw in the pipeline for next year, has so far spent the whole first round investment and half of the second round of funding.

Sinha said if the company finds another private equity investor, then it may request Goldman not to release the rest of the money.

"We are in talks with private equity investors, both domestic and foreign ones, and if we get a good deal, we might ask Goldman to hold the balance amount of their investment," he said.

He also said the company hopes to achieve a clean energy portfolio of 500 mw by March 2014. For this, it is planning to look beyond wind and bet on solar as well. Apart from participating in the upcoming second phase of the National Solar Mission, ReNew Power might also consider acquiring small independent solar energy players.

"Solar, especially the off-grid segment is quite scattered and there are no big names in the sector," Sinha said. "We might look for some acquisitions in the solar space."

He said that solar was supposed to replace diesel in the industrial user segment. "Better policy guidance and consolidation in the sector could help solar achieve grid parity in the next 2-3 years," he added. India has installed wind capacity of 19,993 mw and 2,079 mw solar energy. Price of wind power is at par with conventional power at Rs 5-5.5 per mw whereas solar power prices linger around Rs 8-9.

Sinha said that ReNew Power, founded in 2011, plans to take part in government initiatives and do EPC (engineering, procurement and construction) to support their independent power projects.

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West Bengal Tech Committee approves WBGEDCL's proposal for solar park development in Boudh District...

 

The State Technical Committee (STC) has approved the proposal of the West Bengal Green Energy Development Corporation Limited (WBGEDCL) for establishment of a solar power park at Manamunda Industrial Estate in Boudh district.

The first meeting of the STC held recently discussed the technical details of the project which proposed to generate about 50 MW of solar power with an investment of ` 400 crore.

The detailed project report is under preparation by WAPCOs, a Government of India undertaking providing consultancy services in power and infrastructure, sources in the Energy Department said.The committee also approved GEDCOL proposal of bidding for 20 MW solar power under viability gap funding (VGF) scheme of the Solar Energy Corporation of India (SECI).

The Ministry of New and Renewable Energy (MNRE) has launched VGF model for the second phase of Jawaharlal Nehru National Solar Mission (JNNSM).

SECI has invited tenders for allocation of 750 MW solar power projects under phase-II of JNNSM. Developers will have to specify the funds that they would be seeking, and on the basis of lowest bids, the winners will be selected.

The Centre is offering about `1875 crore in grants and will be providing subsidy to the tune of 30 per cent of the project cost so that projects meet milestones.

According to revised rules of MNRE, a total of 350 MW of projects will be built with the domestic content requirement (DCR) scheme. At the time of bidding, the project will have to opt for DCS or open categories and separate bids have to be submitted for both the cases.

Those opting for DCR will have to source domestically manufactured solar cells and panels for their projects. It is believed that the tariff offered for the DCR projects may be slightly higher than open projects.

Under the viability gap funding scheme, 50 per cent of the amount will be paid on successful commissioning of the projects, and the remaining amount is to be disbursed in 10 percent increments over a period of five years, if generation targets are met.

The STC also discussed the 105-MW solar power project proposal of Nilapuspa Energy Pvt Ltd ((NEPL) and 5-MW project proposal of Keshari Urja Private Limited (KUPL). The committee asked both the developers to submit their proposals afresh as they lacked clarity.

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