South Africa offers coal to Punjab for thermal plants...

 

South Africa has extended support to the Punjab government for providing coal for its thermal plants, which would go a long way in making it a power surplus state.

France K Morule, South Africa's High Commissioner to India, told mediapersons that he had met with Punjab governor Shivraj Patil and CM Parkash Singh Badal on Monday and held talks with them regarding the forthcoming tie-ups with the state.

He said there were surplus coal deposits in South Africa and a regular coal linkage would be established with Punjab for its thermal plants. "We are a mineral rich country and would certainly like to have an agreement with Punjab on this, to which the chief minister has readily agreed," he added.

He was accompanied by a renowned entrepreneur, Vikramjit Singh Sahney, who is the President of SAARC Chamber of Commerce and Industry and Consul, Republic of South Africa for Northern India.

"We are here to promote trade investments, tourism and cultural exchange with Punjab as there are historical bonds between the two countries," said Morule. He added that South Africa relates to India in many ways and people there relate a lot to the Indian history.

Morule said in the meetings it was decided to have tie-ups for two food processing plants in the state. He said soon a study team would be sent from South Africa to study viability in the Kinnow processing sector of the state.

Source

Read More...

NTPC signs $430 m loan accord with Japan Bank…

 

India’a leading power producer and state-owned NTPC Ltd on Monday announced it had entered into two foreign currency loan agreements with the Japan Bank for International Co-operation (JBIC) for around $430million (approx. Rs. 2,650 crore) loan for its Kudgi and Auraiya thermal power projects.

The loan agreements were signed by Kulamani Biswal, Director (Finance), NTPC and Mr. Hiroshi Watanabe, Governor, JBIC here on January 25, an official statement issued here on Monday said.

The company signed a term loan of $350 million with the JBIC to finance the supplies and services from Japan as well as India for the Kudgi Super Thermal Power Project Stage-I (3x800 MW) located in Karnataka. The facility consists of a CIRR based fixed interest tranche and a floating interest rate tranche, with a door to door maturity of about 15 years.

The second loan signed with the JBIC is for 8,021 million yen to finance the renovation and modernisation of gas turbines at NTPC’s Auraiya gas power station. This facility is a CIRR based fixed interest rate facility with a door to door maturity of over 12 years. Kudgi Power project is based on super critical technology which has lower carbon intensity compared to projects based on sub-critical technology.

In both the loans, 60 per cent of the facility amount is provided by JBIC and the balance by commercial banks. The loans are provided on a stand alone basis without any sovereign guarantee reflecting the NTPC’s strong credit quality. This is the first time JBIC has directly extended a direct loan facility to NTPC. JBIC previously extended guarantee for a untied loan of $380million for NTPC’s Barh Stage-I project.

With an installed capacity of 42454 MW through 16 coal based, 7 gas based, 2 solar renewable and 7 Joint Venture power stations, NTPC contributes nearly 28 per cent of electricity in the country, with about 19 per cent of India's installed capacity.

Source

Read More...

Chinese power firms in India under pressure due to rupee…

 

Chinese power generations companies which rapidly expanded operations in India in recent years are complaining of pressure due to depreciation of rupee and appreciation of China's currency RMB, saying it has eroded their profits.

Indian rupee devalued about 20 percent at one stage in 2013, while the RMB appreciated five percent, eroding 25 per cent of the gross profit margin, Xu Huadong, Chairman of Chinese machine and generator manufacturer Power HF said.

"We are forced to improve management efficiency and lower operation costs. But there is a limit. Our price advantage is diminishing, and we are considering opening production plants globally," he told state run Xinhua news agency.

Power HF, based at Weifang City in east China's Shandong Province, has exported 38,500 engines to India for use in telecom base stations across the country.

If those base stations break down, more than 100 million Indian mobile users will be affected.

The firm has also set up a network of 174 service stations employing more than 1,500 local people across India to provide 24-hour maintenance services.

Its business in India started in 2007, when the Reliance Group, one of the top three telecom companies in India, ordered the engines.

The Indian market now comprises more than 30 per cent of the total revenue of Power HF, which now has bigger plans.

"Currently we mainly provide maintenance services for the engines of the telecom base stations. In future, we hope to offer maintenance of air-conditioners, antennas and other equipment at the stations, based on our established network," Xu said.

The firm is eying other countries and regions, with Africa as the next key market.

"We want to copy the successful model in India, but adjustments must be made according to the situation in different countries," Xu says.

When Power HF entered India, the enterprise redesigned its products according to the hot and humid environment.

Since India has stricter noise restrictions, it also adjusted their engines to reduce noise.

"Now we are entering Egypt and we must take the heat, wind, sand and dust into consideration," says Xu, adding skilled workers were harder to find in Egypt than in India. So training maintenance workers will be given priority.

"The quality of Chinese machinery is already world level. But Chinese machinery manufacturers must focus on service if they want to go abroad," Xu said.

Source

Read More...

Suzlon to list REpower on LSE this year: Sources…

 

Debt-ridden  Suzlon Energy is looking to list its 100 percent owned German subsidiary REpower on the London Stock Exchange this year. IPO size is likely to be around USD 600-750 million, with Suzlon diluting 40-50 percent of its total stake.

This pegs REpower’s expected valuation at USD 1.2 billion. Sources say Suzlon Energy will use the proceeds from the IPO to repay German banks and domestic lenders. REpower owes as much as 750 million euros to German banks, who have ring-fenced the company’s finances.

This has been Suzlon’s biggest challenge as the wind turbine maker is unable to access the Germany subsidiary’s cash reserved to repay its debt. Suzlon's total debt stands at Rs 14,155 crore, of this, Rs 9500 crore is getting restructured under the Corporate Debt Restructuring (CDR) cell.

The company had repaid its first tranche of FCCBs worth USD 360 million in July 2012. It is understood that the company is now looking to settle another USD 500 million worth FCCBs with the bondholders.

Suzlon has been reporting losses for the past 3 years Suzlon Energy had acquired REpower in 2007 for Rs 8000 crore.

The German subsidiary accounts for nearly 40 percent of Suzlon’s total order book of USD 7.1 billon. Key bankers like SBI had earlier suggested that the company merge REpower with itself to reduce debt.

Source

Read More...

Cabinet clears SPV for Neemrana model solar power project…

 

A cabinet panel Monday approved the formation of a Special Purpose Vehicle (SPV) for implementing a model solar power project at Neemrana in Rajasthan.

"The Cabinet Committee on Economic Affairs has approved the formation of a SPV for implementation and operation of the model solar power project at Neemrana, Rajasthan as a 100 percent subsidiary of the Delhi Mumbai Industrial Corridor Development Corporation," an official statement in National Capital said.

The government estimates an expenditure of about Rs.35.34 crore on the project, of which the equity component is Rs.13 crore and the debt component is Rs.22.34 crore.

The project, to be implemented in association with the Japanese government, proposes using cutting-edge technology from the Asian country, the statement said.

The power generated would be sold to state-run NTPC Vidyut Vyapar Nigam at a tariff of Rs.8.77 per unit, it added.

"The tariff applicable to industrial consumers will be determined at the time of signing the Power Purchase Agreement by the SPV with users," the statement said.

The project demonstrates the integration of solar power with industrial diesel generator sets. The statement added among the benefits it is expected to yield is the "production of green power while reducing carbon dioxide emissions by cutting down diesel consumption."

Source

Read More...

Moser Baer sells solar PV worth Rs 100 crore in Japan…

 

Moser Baer Solar, a subsidiary of Moser Baer India, has crossed more than Rs 100 crore PV module sales in the Japan market during April-December 2013," the company said in a statement.

Moser Baer Solar has been exporting solar PV modules to Japan for last four years and the volume of shipments has increased significantly in last nine months, the statement said.

"Japan traditionally is amongst the world's most quality conscious markets and we are proud to have established an Indian brand in high technology space here. The opportunity is big and we look forward to further our commitments in Japan's journey towards promoting clean energy," Vivek Chaturvedi, Chief Marketing Officer, Moser Baer Solar said in the release.

Source

Read More...

India, UAE to cooperate for solar, wind energy...

 

India and the United Arab Emirates (UAE) have signed an agreement to enhance cooperation in renewable energy, especially in the areas of solar and wind power.

India's Minister of New and Renewable Energy Farooq Abdullah and Sultan Ahmed Al Jaber, minister of state and the UAE's special envoy for energy and climate change, Saturday signed a Memorandum of Understanding (MoU) for cooperation in these areas in Abu Dhabi.

Both the countries also agreed to form a Joint Working Group for better coordination through joint research on subjects of mutual interest, exchange and training of scientific and technical personnel, exchange of available scientific and technologies information and data, according to a statement released here Sunday by the ministry of new and renewable energy.

India and UAE have also agreed to cooperate in organisation of workshops, seminars and working groups, transfer of know-how, technology and equipment, on non-commercial basis.

Abdullah, who is on an official visit to Abu Dhabi, held talks with UAE minister Al Jaber.

Abdullah briefed the UAE minister on the progress made by India in renewable energy with special reference to the National Solar Mission launched in 2010 under the National Action Plan on Climate Change.

He also briefed the minister on India's efforts in promoting energy for remote and un-electrified areas, the statement said.

Source

Read More...

Korean power firm ties up with Jinbhuvish for Rs 3450-cr Maharashtra power project…

 

Korean South-East Power Company (KOSEP), a subsidiary of Korean state-owned power generator Korea Electric Power Corporation, today signed an initial agreement with Mumbai-based Jinbhuvish Group for technical support for its Rs 3,450 crore project in Maharashtra.

The 600 Mw power plant, being set up in Yavatmal district, is likely to be commissioned in 2016. KOSEP holds a 40% equity stake in the coal-based project. Lenders for the venture include Rural Electrification Corp (REC) and Power Finance Corp (PFC) and PTC India Financial Services (PFS).

“The Yavatmal venture is one of the few thermal projects in India being set up in a JV with foreign investment. All major clearances have been received and the construction activities will commence soon,” Jinbhuvish Group Chairman Manish Mehta said.

Seoul-headquartered KOSEP owns and operates thermal projects with a combined capacity of 8,396 Megawatt, around 12% of total electricity sales in Korea.

Source

Read More...

Japanese firms interested in partnering Indian companies to develop technology solutions for Renewable Energy Sector...

 

A renewable energy delegation from Japan is now visiting India to explore opportunities for partnership with Indian companies in the renewable energy sector.

Smart grids, waste to energy and storage solutions clearly emerged as areas where both Japan and India could explore partnerships at the ‘Japan India Public Private Round Table on Renewable Energy’ organized by the Confederation of Indian Industry (CII) in partnership with the Ministry of New and Renewable Energy (MNRE) under the aegis of Japan-India Energy Dialogue in New Delhi.

Delivering the inaugural address at the roundtable, Dr Satish B Agnihotri, Secretary, Ministry of New and Renewable Energy, said, “Storage solutions is amongst the key renewable energy technologies that need to be evaluated. Within storage solutions, it is important to look at hybridization, given the intermittent nature of solar and wind power. Hybridization increases the combined capacity utilization factor thereby improving the financial viability. India also needs to leverage the Japanese experience in smart grid deployment and efficient appliances.”

Stressing on the importance of technology, H. E. Mr Takeshi Yagi, Ambassador of Japan, said, “Expansion of technology innovation is extremely important in the renewable energy field. With both Japan and India witnessing a sharp increase in energy imports, renewable energy is a key component of the energy mix. There is a need to harness the huge potential of renewable energy through the development of new technologies and their application to society. It is also important to utilize the private sector’s know how in the areas of waste to energy, storage batteries and smart grids.”

Highlighting some key areas that could be of interest for Indo-Japanese collaboration, Alok Srivastava, Joint Secretary, Ministry of New and Renewable Energy, said, “New areas of co-operation between India and Japan could be in developing cutting edge technologies. Another opportunity is in the area of financing at an affordable cost.”

Key Japanese companies accompanying the Ministry of Economy Trade and Industry (METI, Japan) include, Mitsui Engineering and Ship Building (Solar Power), NGK Insulators (storage solutions), Mitsubishi Heavy Industries (smart Grids), Hitachi Zosen Corporation (waste to energy).

Source

Read More...

South Korea keen on setting up nuclear power plant in India...

 

Keen to enter India's growing nuclear market, South Korea wants to build an atomic power plant here but India is not rushing into it.

The government first wants to complete the projects already initiated, including Koodankulam III and IV and Jaitapur, which are facing hurdles on various counts. However, India is willing to have cooperation with South Korea in other aspects of the nuclear field, like research.

South Korea conveyed its desire to build a nuclear plant in India when a delegation from its Ministry of Science came here recently, sources told a news agency.

This was preceded by a visit of a team of Department of Atomic Energy to South Korea to discuss cooperation in the nuclear field in November last year.

Sources said India not very keen to have Korean nuclear reactors immediately. The DAE first wants to concentrate on existing plants and deal with the issues like liability over which many foreign collaborators have raised questions.

"We would first want to clear the impediments for projects that are already in pipeline and then move on to another projects," said a senior DAE official. Currently, all the power plants are running behind schedule.

The Jaitapur Nuclear Power Plant Project (JNPP) being built with French assistance, the unit 3 and 4 of the Kudankulam Nuclear Power Plant (KKNPP) with Russian assistance and the Mithi Virdhi nuclear plant with the assistance of the US are either stuck because of various reasons or running behind schedule.

Source

Read More...

GVK in dialogue with banks to fund $10-billion Hancock project...

 

Infrastructure developer GVK Power & Infrastructure (GVKPIL) is keeping all options open to fund its $10-billion Hancock project and is in discussions with bankers.

“We have made significant progress towards realising this project. This milestone symbolises our common vision,’’ GV Krishna Reddy, chairman, GVK, said. “We are in discussion with many banks and are hopeful of achieving the financial closure for this project in a year’s time. The coal production is likely to start in another 1-2 years,’’ he said.

The company is currently doing the legal documentation and it is believed that the valuations have also gone up.

The company is also exploring equity participation and fund infusion through banks and export credit agencies to realise this mega project. In September 2011, GVK had bought a 79% stake in the Alpha and Alpha West thermal coal projects in Queensland’s Galilee Basin and 100% of the Kevin’s Corner coal project next to Alpha.

Source

Read More...

Lanco said to consider sale of Australian Griffin Coal division...

 

Lanco Infratech Ltd, India’s second biggest private power producer, is considering selling its Australian unit Griffin Coal Mining Co. to help repay debt, three people with knowledge of the matter said.

Lanco is examining options including a full sale of Griffin Coal, which it bought for 750 million Australian dollars ($665 million) in 2011, said two of the people, asking not to be identified as the deliberations are private. The company is also in advanced talks to divest a hydroelectric power plant in India, two people familiar with the matter said, without naming a buyer.

Lanco is seeking to sell the unprofitable Griffin Coal unit after agreeing with banks to restructure debt that ballooned to Rs.33,900 crore in September. It is among foreign companies whose coal acquisitions in Australia have soured as prices for the fuel fell for three straight years.

Nagaprasad Kandimalla, who ran Griffin Coal, said on Thursday in a phone interview that he quit to join a political party, without elaborating. He declined to comment on Lanco’s plans to sell the unit.

Power-station coal prices at Australia’s Newcastle port, an Asian benchmark, fell 1% to $85.41 per tonne for the week ended 3 January, according to data from Global COAL. Prices slid 6.5% in 2013, the third year of declines.

A. Narasimhan, a Lanco spokesman, declined to comment. The company’s shares have slumped 44% in the past year while India’s BSE Sensex advanced 5.2%.

Griffin loss
Griffin Coal’s loss before interest, tax, depreciation and amortization almost doubled in the fiscal year through March 2013 to Rs.105 crore, Lanco said in May without giving a reason. Its mines in Western Australia’s Collie Basin produce 4 million tonnes of coal a year, and Lanco plans to boost output to 18 million tonnes by fiscal 2018, according an August presentation.

Lanco approved a debt restructuring proposal from its banks, according to a December exchange filing that didn’t include details of the plan. Its lenders include State Bank of India and ICICI Bank Ltd, according to Lanco’s latest annual report. Lanco’s debt has swelled more than fourfold since March 2010, data compiled by Bloomberg show.

The company runs a 70-megawatt hydropower plant in Himachal Pradesh, according to its website. Philip Chacko, then director of investor relations at Lanco, said in January 2012 that the company was seeking to raise as much as $750 million by selling a stake in its power business to private- equity investors.

Lanco plans to sell stakes in other power projects besides the hydropower facility, two of the people said.

Source

Read More...

L&T wins Saudi Aramco contract for transmission lines and related system development...

 

The Power Transmission & Distribution Business of L&T Construction, through its fully owned subsidiary L&T Saudi Arabia LLC, has bagged a major international EPC order in the Kingdom of Saudi Arabia from the Saudi Arabian Oil Company (Saudi Aramco).

Larsen & Toubro Saudi Arabia LLC is one among multiple joint ventures of L&T in the high-growth market of Saudi Arabia.

This order has been secured for the construction of 55 km of 230kV Double Circuit Overhead Transmission line and Underground Cabling.

The purpose of this project is to replace the existing 115kV electrical power supply system by the new 230kV power system at the Abu Ali Plants to overcome existing electrical system deficiencies and to meet future electrical demand load required by Berri field to maintain the production at 250 MBCD and to support Karan and Arabiyah fields.

The scope involves detailed design, engineering, site investigation, survey, material procurement, transportation, installation, As-Built documentation, training, mechanical completion, Pre-Commissioning of the Onshore facilities associated with construction of 230kV Double circuits, overhead transmission lines/power cables from Wasit Cogeneration substation with associated gantries and transmission yards up to the beach transition yard at Khurasaniyah area and from Abu Ali Plant 230kV substation with associated gantries and transmission yards up to the beach transition yard at Abu Ali Island.

The project will be completed in 26 months.

On winning this major contract in Saudi Arabia, S N Subrahmanyan, Member of the Board and Sr. Executive Vice President, L&T, said, “With significant growth potential in oil production in the Kingdom, the winning of this order not only comes at a most opportune time but is also strategic from the point of view of L&T’s capability to execute such projects in an extremely competitive environment."

Source

Read More...

Venture capital funding in solar sector fell 40% in 2013 globally: Report...

 

Venture capital (VC) investments in solar sector fell 40% globally in 2013, to $600 million from 97 deals, compared with $992 million raised in 106 deals in 2012.

The United States continued to be the leader in solar VC funding in 2013, accounting for $432 million of the $600 million invested, and 68 of the 97 deals worldwide.

Solar VC funding in the fourth quarter of 2013 also fell to $87 million in 24 deals, from $197 million in 28 deals in the previous quarter of 2013. This was the second lowest quarter for VC funding in the last five years, a report from Mercom Capital Group, a clean energy consulting firm, said.

"Although VC funding dropped by nearly 40%, the deal count fell by only 8% compared to 2012, indicating that VC investors are still interested, but in smaller deals," the report said.

The average VC deal size, however, fell sharply to $6.2 million in 2013, from $9.6 million in 2012. As VCs became more risk averse, the average deal size had fallen steadily from the highs of 2010 and 2011, Mercom said.

The largest amount of VC funding went to solar downstream companies, with $262 million in 34 deals, accounting for 45% of all solar funding. This category includes integrators, installers, developers and financiers. In 2012, solar downstream funding was $269 million in 26 deals.

Public market financing jumped considerably to $2.8 billion in 39 deals in 2013, up from $893 million in 23 deals in 2012 and $1 billion in 13 deals in 2011. There were seven IPOs that together brought in more than $1 billion, the report said.

Announced debt funding was $6.2 billion in 38 deals in 2013, compared with $6.9 billion in 34 deals in 2012, and nearly $20 billion in 41 deals in 2011. The most active provider of credit was the China Development Bank, which provided debt funding for five Chinese solar companies. For the first time since 2010, there were more non-Chinese debt deals, Mercom said.

Mercom tracked 9 GW of new large-scale project announcements in Q4 2013 in various stages of continuation worldwide. Solar residential and commercial lease funds showed continued strength in 2013, with 22 announced funds totalling $3.34 billion, a 69 percent increase in dollars over 2012. Almost $1 billion was raised in Q4 2013 alone, the report said.

Solar mergers & acquisitions (M&A) activity increased 60% in 2013 to $12.7 billion in 81 transactions compared with $6.7 billion in 51 transactions in 2012. This includes the $9.4 billion acquisition of Tokyo Electron by Applied Materials. Solar project acquisitions increased 20%, amounting to $1.7 billion in 2013, with 112 transactions in 2013, compared to 80 transactions in 2012.

About 37 new funds focusing on renewable energy investments, with more than $19 billion, were established in 2013, compared with 29 new funds and $11.2 billion in 2012. In addition, there were 14 new solar-focused funds in 2013 with $1.4 billion, compared to four new funds totalling $506 million in 2012.

Source

Read More...

Boost Hydel power with proactive policy...

 

The report that tiny Bhutan seeks to be India's hydel partner is good news for sustainability and promises to significantly make up for the declining share of hydroelectric power capacity nationally.

We do need to step-up hydel capacity in areas of steep gradient that would considerably reduce submergence, like the sub-Himalayan region and particularly the northeast, which is hugely water surplus.

It is also welcome that two proposed hydel projects in the Siang river valley in Arunachal Pradesh have reportedly got environmental nod. Note that the two projects — Simang I and II totalling 133 MW — are located on the Simang, the right bank tributary of the river Siang; the Siang valley alone has an estimated 12,450 MW of hydel potential, which, in the north-east as a whole, is well in excess of 50,000 MW, much of it in Arunachal Pradesh.

Overall, a projected 90,000 MW of pumped storage hydel capacity is yet to be tapped. Hydel capacity is not just renewable but also provides the cheapest peaking power.

And peaking load is set to surge in fast urbanising India. Our hydel capacity, meanwhile, has reduced steeply to barely 17% of total power generation capacity and currently adds up to just over 39,000 MW.

A host of policy rigidities seem to come in the way of hydel power. The lack of ready availability of long-term financing does add to project risks. Also, the sheer uncertainty over environmental, forest and other clearances and infrastructural bottlenecks on the ground add to the costs.

Further, while power projects get customs and excise exemption for equipment, 75% of hydel project costs are civil works for which there is no parallel benefit, no accelerated depreciation, and conventional hydel power is not even labelled renewable energy. That is plain anomalous.

Source

Read More...

Bhutan seeks to be India's hydel plant...

 

Giant cranes scoop out mud from deep inside the mountains. Frenetic construction activity is on as a state-run company in this tiny landlocked Himalayan country races to complete one of the crucial hydropower plants.

Workers at the site of the Dagachu hydropower plant are busy giving final touches to the project which is expected to go on stream by the middle of 2014.

The 126 megawatt plant is the first under the public-private-partnership model and has already connected 9,000 rural households in Bhutan. The plant, located in the remote Dagachu river, has been built under the PPP model and is the first foreign direct investment for the Himalayan country.

This is also the world's first cross-border clean development mechanism (CDM) project. The CDM allows emission reduction projects in developing countries to earn certified emission reduction credits and these can be traded and sold to meet part of the emission reduction targets under the Kyoto protocol.

The state-run Druk Green Power Corporation holds 59%, the Pension and Provident Fund of Bhutan 15% and the Tata Power Company 26% in the project. The Asian Development Bank (ADB) is the lead financier and has provided $80 million for the project along with funding from an Austrian commercial bank.

Bhutan is banking on hydropower exports to India to revive the fortunes of its faltering economy. Several large projects are underway and companies such as Jaypee, Larsen & Toubro and Gammon India are taking part in the massive construction underway.

"At this stage of development, we are highly dependent on exploiting the water resources of Bhutan," said Sonam Tshering, Bhutan's secretary of economic affairs.

The urgency for building hydropower plants in the picture-postcard country is palpable.

Bhutan is grappling with a large current account deficit estimated at 20% of its gross domestic product. The sale of electricity from these projects to a ready-and-captive market in India will help it earn precious foreign exchange to sustain its economy. New Delhi has lent a helping hand and, in turn, will receive steady supplies to meet its growing energy needs.

"The best part of the hydel power development in Bhutan is that hydro power projects are all funded by the Government of India through a very generous combination of grants and loans," said Nam Dorji, Bhutan's finance secretary.

In 2010, electricity exports from Bhutan to India amounted to 5.579 kilowatt hour, helping the country earn about $223 million, according to ADB data.

India and Bhutan signed a pact in 2008 to develop hydropower projects in the country and about 10,000 megawatt power would be exported to India by 2020.

The development of such projects augurs well for the region. "Regional trade in energy can help send energy from places that have excess, such as Bhutan, to countries in need of energy like India, optimizing the region's energy resources," ADB said.

"The recently established India-Bangladesh transmission line could ultimately allow energy to go from Bhutan to Bangladesh," the multi lateral agency said.

Source

Read More...

India expected to sign an initial deal to export around 500 MW per day of power to Pakistan this month...

 

India is expected to sign an initial deal to export around 500 mega watts (MW) per day of power to Pakistan this month when the trade ministers of the two south Asian neighbours meet.

Sources said the initial wheeling of power would be around 500MW but could be increased.

There are indications that Pakistan will increase the import to 2,000-2,500MW to meet the power shortage impacting its economy.

The wheeling of power between the two nations is expected to energise trade ties, resulting in Islamabad lowering the number of items on the negative list — a step towards granting most favoured nation status (MFN) to India.

The grant of MFN status means the two countries can trade on equal terms, giving each other low tariffs and high import quotas. India granted Pakistan the MFN status in 1996.

India’s Central Electricity Authority and Power Grid Corporation of India will be the nodal technical agencies. Pakistan will have the National Transmission and Despatch Company and Chief Engineering Advisor as its nodal agencies.

Officials said there was a broad agreement that cross border trading would be done through HVDC (high voltage direct current) coupling, as is being done with Bangladesh, ensuring that both the grids operate independently.

As Lahore is near Punjab, it will be economical to transfer power through Amritsar, officials said.

The project will require 45 kilometres of 220 kV transmission lines on both sides of the border — 25 kilometres in India and 20 kilometres in the neighbouring country.

The tariff is likely to be around Rs 8 per unit, which is almost similar to the rates in Pakistan, sources said.

Pakistan faces a 37 per cent, or 5,000MW, energy shortage and is desperately looking for ways to bridge the huge shortfall. Power shortages, along with endemic violence, have resulted in its textile mills moving to Bangladesh.

At present, Islamabad imports 35MW from Iran, which it plans to increase to 100MW. It is also considering importing another 1,000MW from Tajikistan.

Power production in Pakistan is only about 10,000-16,000MW against an installed capacity of 20,800MW. The sector is plagued by old plants, poor maintenance and high debt.

Source\

Read More...

Australia seeks to export SolarGen technology to India....

 

Australia is exploring the opportunities of exporting SolarGen technology which it feels has potential applications in Indian industry. Some of the sectors identified are petrochemicals, fertilisers and transportation.

Developed by Australian scientists the technology can provide a sustainable and cost effective alternative for the production of hydrogen, which in turn will help these industries, says Jim Hinkley, of the Commonwealth Scientific and Industrial Research Organisation (CSIRO).

In India recently, Hinkley told that, “There is a particularly strong potential to roll out the technology in Gujarat and Rajasthan because both states have excellent solar resources and natural gas infrastructure, as well as being major industrial users of hydrogen”.

The technology facilitates concentrating the sun's rays to drive a reaction between water and natural gas which stores solar energy in the form of chemical bonds. The resulting fuel has a higher energy yield than natural gas. The SolarGas can then be used to produce high-efficiency electricity in a gas engine or turbine, he explained.

According to CSIRO by using Sun’s rays for heat, in combination with new catalysts, SolarGas uses upto 50 per cent less fossil fuel and higher percentage of water as well.

A study has also found that the technology developed by the CSIRO could help India’s efforts towards achieving energy security. Some of the benefits include improved energy and food security by reducing natural gas consumption; new jobs created through local manufacturing and operation of the technology; the potential to produce solar liquid fuels for transport.

The study was funded by the Australian Government and undertaken by CSIRO in collaboration with the Solar Energy Corporation of India. It has also developed a concept design for a pilot scale SolarGas facility and identified numerous potential host sites suitable for such a pilot project.

Energy and energy security are critical issues for Australia and India, and we have much to offer each other by sharing our renewable technology expertise and technology, said Australia’s High Commissioner to India Patrick Suckling while launching the study recently.

Source

Read More...

Indonesian coal to be part of index determining power tariffs...

 

Power sector regulator CERC has decided to provide 50% weightage for Indonesian coal in the benchmark index that is used to determine escalation rates for electricity generated using imported dry fuel.

The move would help in having a benchmark in deciding the escalation rates for electricity generated by power plants that are fired by Indonesian coal.

It also assumes significance amid deadlock between various power generators and procurers over increasing the electricity tariff due to rise in imported coal prices.

The Central Electricity Regulatory Commission has decided to include Indonesian coal, besides South African and Australian dry fuel, in the composite index for imported coal for payment purposes.

Currently, for payment purposes, the index takes into account only Australian and South African coal.

The Commission said that the decision to revise the index has been taken after considering the composition of steam coal imports as well as the importance and acceptability of indices in international contracts.

The Commission said in an order dated December 23rd that "The weights of different coal in the composite index shall include 25% Australian coal, 25% South African coal and 50% Indonesian coal."

CERC has the mandate to notify the escalation rates for imported coal used to fire power plants. These rates are notified every 6 months.

According to the watchdog, Indonesian coal has been included in the index considering that it makes up for a pre dominant share of steam coal imports into the country.

In 2010 to 2011, period about 73% coal was imported from Indonesia while 24% was from South Africa.

Average import of steam coal for the last 3 years shows about 76% from Indonesia and 19% from South Africa.

During the same period, the dry fuel import from Australia was just about one per cent.

The Commission said that despite insignificant steam coal imports from Australia, it would have 25 per the Commission said in an order dated December 23rd weightage in the index.

Thr soiurb said that Australian coal has been retained in the composite index despite very low volume of consumption in India due to its liquidity, acceptability for contracts, and possibility of increased use of Australian coal in future."

The new index should be used to determine the escalation rates from April 1st 2014.

Source: Business Standard

Read More...

CIL to begin final exploration round in Mozambique early next financial year...

Coal India Ltd (CIL), the Kolkata-based world’s largest coal miner, will begin third and final round of exploration in two of its blocks in Mozambique early next financial year. This brings the miner a step closer to commissioning mining in its maiden overseas project by 2016.
 
“The second phase of exploration, which is currently on, has seen minor delays owing to the onset of monsoon in that nation. That made the site inaccessible for some time. We will definitely award drilling contracts for the third phase coming March after which the exploration work will start,” said a senior CIL official.
 
The company has already completed 17,000 meters of the overall 30,000 meters of drilling in the ongoing phase. The miner was allocated two blocks with reserves exceeding a Billion Tonne (BT) in a government-to-government deal in Maotize in Tete province in the African nation in 2009.
 
The idea is to import the entire quantity of coal available in the two blocks to India to bridge the gap in demand and supply of coal which currently stands at over 135 million tonne (MT) for domestic industries. However, CIL has already missed the original deadline of starting production by 2013.
 
The progress on the project has been slow owing to procedural delays in outsourcing drilling contracts and the inter-governmental differences over the pattern of funding apart from the lack of local infrastructure support, including roads and ports. The official said the company hopes by the time mining begins in 2016, Mozambique government builds infrastructure for evacuation.
 
“The Mozambique government is building infrastructure. Also, we expect a railway carrying capacity of 6 MT annually to be free next year after the work of another mining company which is currently working there closes,” the executive said. Apart from infrastructure issues, the extent and mode of local expenditure has been a bone of contention between the Indian and the Mozambique governments and a major irritant stalling progress of the project.
 
CIL has been allocating Rs 6,000 crore annually over the past few years for overseas investments but has failed repeatedly in its acquisition plans. The miner had earlier shortlisted Australian miner Peabody Energy’s Wilkie Creek mine and US-based Massey Energy Co’s Sidney mines but failed. It had also considered buying stake in Indonesia’s PT Golden Energy Mines Tbk (GEMS) but lost the deal owing to bureaucratic hurdles.

Source: Business Standard

Read More...