GMR Infra seeks gas plant's fixed cost from AP discom for 388.5 MW Gas Project...

 

GMR Infrastructure has sought Rs 480 crore for recovering fixed costs for its 388.5-megawatt (Mw) gas-based power plant from the Andhra Pradesh Central Power Distribution Company, sources said.

The power plant at Vemagiri in the state has been idling for lack of gas from Reliance Industries's KG-D6 block since the start of this financial year.

It's plant load factor (a measure of capacity use) has been zero for months now, leading to losses. Consequently, GMR Infra is seeking recovery of fixed costs such as capital costs and maintenance from the state distribution company (discom), which buys power from it.

While the discom could not be reached for comments, GMR said denied to comment on the development.

Many off-take contracts allow for recovery of fixed costs if the buyer fails to purchase power from the project. Reasons for not buying power can range from lack of demand to the finances of the discom. In such cases, the discom pays to ensure the power plant does not go into losses.

Source

Read More...

AP Discoms propose ‘shocking’ tariff hike...

 

The Andhra Pradesh power distribution companies are proposing another power tariff hike with effect from April next year. If the hike is cleared by the AP Electricity Regulatory Commission (APERC), Kiran Kumar Reddy will go down in history as one chief minister who hiked electricity tariffs thrice in three years.

Sources said stung by APERC's refusal to allow them to levy fuel surcharge adjustment ( FSA) from customers, the discoms are preparing another round of tariff hike to the tune of Rs 8,488 crore. If the state government offers similar amount of subsidy that it had extended last financial year, the burden on the power consumers would be around Rs 2,200 crore, which would mean a hike of about 10%. For the current financial year, despite a subsidy of Rs 5,530 crore extended by the state, the discoms passed on the burden of Rs 6,500 crore on the consumers which resulted in a 27.8 % hike in tariff.

APTransco chairman and managing director Suresh Chanda submitted the revenue requirement proposals related to transmission of power to the APERC on Saturday. Discoms, which were supposed to have submitted their proposals to APERC by November 30 had sought an extension of one month. They have been given time until December 10. "Discoms will present their proposals by this weekend," said a senior official in the energy department.

According to sources, tariff hike for the next year is likely to be between 10 to 27% for different categories. However, this will be finalized by APERC after it holds public hearings in January 2014.

Although discoms have indicated Rs 11,600-crore revenue gap for the year 2014-15 , the utilities were asked to prune some of their expansion projects to reduce the overall revenue gap. The state government's nonpayment of full subsidy amount to Discoms for supplying free power for agriculture constitutes a major deficit. Consequently , the total losses of the four discoms have now touched an all-time high of Rs 27,000 crore.

AP Generation Corporation (APGenco) also asked for a price revision for the power supplied from its thermal and hydel stations. State owned APGenco supplies more than 60% power to the state at the cost plus method thus reducing the burden on the state exchequer. For the years 2014-19 , APGenco requested APERC a 4% tariff hike citing rising fuel and maintenance costs.

Source

Read More...

AP Distribution company gearing up to implement net metering policy for rooftop solar projects...

 

The Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL) is gearing up to implement net metering policy. It is about the mechanism of injecting solar power into the grid by rooftop and small photovoltaic plants and arriving at the net value of power.

After the single-phase consumers were also recently allowed by the Energy Department to avail net metering facility, the ball is now in the court of the power distribution companies (Discoms) to encourage and facilitate tapping of solar energy through rooftop plants and small SPV plants .

Only three-phase consumers were till last month permitted to install bi-directional meters which measure the net value of power. But the condition has since been relaxed allowing single-phase consumers with rooftop systems up to 3 KW capacity also to go for net metering.

The onus to motivate consumers to tap solar energy and export any surplus power to the grid now lies on the Discoms and the New and Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP).

Bi-directional meters

On their part, the Discoms are mandated to certify and inspect the solar rooftop systems along with the metering devices and other paraphernalia at regular intervals while the NREDCAP facilitates payment of subsidy to the consumers registered with it. Installation of high accuracy bi-directional meters which can be tracked on a real-time basis and devices capable of injecting solar power into the grid smoothly without causing fluctuations in the grid frequency are the main things that the APTRANSCO and Discoms have to do.

Disturbances

Disturbances (harmonics) to the grid are common as direct current (solar energy in this case) is converted to alternate current. Insulating the grid from such variations is called ‘island protection’.

The Divisional Engineers (Metering & Protection) play an important role in integrating the solar plants with the grid and they have already been equipped with the necessary skills.

The procedures to be followed in the wake of issuance of the fresh G.O on net metering on October 25 are being circulated to the officers and staff concerned.

An APSPDCL official told The Hindu that the solar power generators and Discoms are under the obligation to comply with all the rules and regulations framed under the Electricity Act, 2003, provisions of tariffs and other general terms and conditions with the approvals of the A.P Electricity Regulatory Commission.

Source

Read More...

Andhra Pradesh signs PPAs for 142 Mw solar power...

 

Andhra Pradesh power utilities have entered into power purchase agreements (PPAs) with solar power developers for 147 Mw and issued letters of intent (LoIs) for another 142 Mw. The move comes after the state government decided to encourage private entrepreneurs to set up an installed capacity of 1,000 Mw in solar power late last year.

This was informed to Ratan P Watal, secretary, Ministry of Natural Resources and Energy at a review meeting. The present installed capacity  in the state is about 61.24 Mw.

A statement by the energy department said the Union Secretary complimented the authorities for eliciting a competitive rate of Rs 6.49 per unit payable to the developers. However, a relatively lower purchase price fixed afterwards dampened the excitement.

In addition to this, a separate policy for the industries either for captive use or third party sale had been announced by the state and a set of clarifications were awaited from the state Electricity Regulatory Commission (APERC) to realize about 1,483 Mw of solar power under this policy, it said.

Source

Read More...

In the Absence of Mandate Policy to sell power in the State, Andhra Pradesh to loose 720 MW of Power...

 

According to sources, power from around 720 MW of Private Power Projects in Andhra Pradesh may be sold to outside state due to absence of mandate policy for power sale inside the state.

It seems that the 520 MW Hinduja II and 200 MW Thermotec Power Projects have been allotted land in the state are now approaching other states for buying the power.

Moreover, both these projects have declared themselves as merchant power plants and have participated in bidding process for agreements both within the state as well as outside.

As merchant power plants are free to enter into multiple agreements, they are learnt to have entered into tie-ups with states like Tamil Nadu.

So far, the state has a total power generation capacity of roughly 3000 MW from private power projects however there is no mandate policy for any project to sell power to Andhra Pradesh only.

Due to this, in spite of having huge capacity of private projects, during the summers when the deficit was around 100 MU's per day, state received almost no power from these projects and purchased three times costlier power from the open markets.

 

---

Additional Reading...

http://www.deccanchronicle.com/130727/news-current-affairs/article/andhra-pradesh-private-companies-sell-power-other-states

---

Read More...

NTPC, AP Discoms in pact for 10 MW solar PV plant

According to
Sources,
India’s biggest power generating company, National Thermal Power Corporation (NTPC), has entered into a Power Purchase Agreement (PPA) with Andhra Pradesh Distribution Companies Eastern Power Distribution Company Ltd.(EPDCL), Northern Power Distribution Company Ltd.(NPDCL) and Southern Power Distribution Company Ltd.(SPDCL) for a 10 MW Solar PV  Project.


This PPA is for supply of 10 MW power from Phase-I of Solar PV (photo voltaic) Power Plant to be set up at Ramagundam in Karimnagar district of Andhra Pradesh, near the existing super thermal power plant.                                                                                                                                                                                                                                                                                   

The Project is expected to be commissioned by 2013, the solar power at Ramagundam Solar PV Power Project, which will have a total installed capacity of 25 MW, shall be bundled with unallocated power from coal based stations of NTPC in Southern Region.

Read More...