OIPL drafting PPA for Odisha UMPP...

 

The Odisha Integrated Power Ltd (OIPL), a fully owned subsidiary of Power Finance Corporation (PFC) is in the process of preparing the draft power purchase agreement (PPA) for the first ultra mega power plant (UMPP) in the state.

The maiden UMPP with a capacity of 4,000 Mw is coming up at Bhedabahal in Sundargarh district. OIPL is a special purpose vehicle formed for implementing the UMPP. Odisha would get 1,300 Mw as state share from this power project. The project will be implemented as per the terms and conditions of the PPA.

The selection of bidder is being done as per the tariff based competitive bidding guidelines issued by the Central government on design, build, finance, own and transfer (DBFOT) basis.

The Request for Qualification (RFQ) for the UMPP was issued on September 25. OIPL has received applications from nine prospective developers — Adani Power Ltd, CLP India Ltd, Jindal Power Ltd, JSW Energy Ltd, Larsen & Toubro Ltd (L&T), National Hydro Power Corporation Ltd (NHPC), NTPC Ltd, Sterlite Infraventures Ltd and Tata Power Ltd.

The award under Section 11 (of Land Acquisition Act) for private land measuring 2,733.54 acres was issued by the Sundargarh collector from August 8-10 this year in all affected villages- Kandabahal, Kirei, Rupidihi, Kopsingha, Lankahuda and Bhedabahal.

OIPL had deposited the land compensation amounting to Rs 634.92 crore with the Odisha Industrial Infrastructure Development Corporation (Idco) on June 21 this year. Idco, in turn, deposited the same with the Sundargarh district administration in August 2013.

Till December 19, compensation of Rs 125 crore has been disbursed.

The district administration, meanwhile, is processing 36 cases of alienation of non-forest, government land measuring 512.43 acres. The UMPP needs 3,100 acres of land in all.

Three coal blocks — Meenakshi, Meenakshi B and dip side of Meenakshi with combined deposit of 838 million tonne have been allocated for the UMPP. Presently, Central Mine Planning & Design Institute (CMPDI) is demarcating the coal blocks. Notification under Section 11 of Coal Bearing Areas (Acquisition and Development) CBA Act has been issued for the Meenakshi coal block.

OIPL has submitted a revised proposal for environment clearance in October 2013 . The proposal is under consideration of the Union ministry of environment & forests (MoEF).

Two more UMPPs are set to come up in Odisha. It has been decided to set up the second UMPP at Bijoypatna in Chandbali tehsil of Bhadrak district and third UMPP at Narla under Kesinga sub-division in Kalahandi district. The sites have been selected after field visits by PFC. Two subsidiaries — Sakhigopal Integrated Power Company Ltd and Ghogarpalli Integrated Power Company Ltd have been formed by PFC for executing these two UMPPs. The second and third UMPPs would contribute 2,000 Mw each to the state grid.

Source: Business Standard

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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

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New Generation Power’s Consortium to be Awarded 315 Megawatt Power Purchase Agreement in India...

 

New Generation Power, a Chicago based renewable energy company, along with Premier Solar Group, a Hyderabad based solar company has signed one of the largest Power Purchase Agreements (PPA) in India by a consortium. Under the Andhra Pradesh Solar Scheme, the open bid process will now be part of a 1,000 megawatt (MW) development plan that will be built out in the region.

Expected to cost roughly US$400 million over a period of 12 months, installations will spread across multiple sites in the State of Andhra Pradesh with PPA’s for 20 years. NGP’s valuable consortium will build, own and operate all of the plants.

The initial phase for the 70 MW PPA has been executed and development work has already begun. By the end of 2014, the entire 315 MW of solar projects will be completed. WAAREE Energies Limited has been awarded the exclusive EPC contract for 245 MW and Premier Solar/WAREE will be the joint EPC contractor for the initial 70 MW.

Long term financing for the project is being negotiated with various EXIM and other financial institutions.

WAAREE Group, a Mumbai based leading multi-technology company, along with Patriot Solar Group (PSG), will be setting up a joint-manufacturing facility in Gujarat, India that will be fully capable of supplying all product solutions and opportunities by the project’s completion.

“We are very happy with a partnership that will bring more green, sustainable energy to the world. WAAREE will bring its manufacturing and project execution skills to execute this project,” said Hitesh Doshi, Chairman of WAAREE Group.
“Patriot Solar Group is truly delighted to be a part of this world class team. Together with WAAREE Group, the production facilities for our full line of tracking, mounting and mobile fixed off-grid solar systems are already being developed,” said Patriot Solar’s President, Jeff Mathie.

“Premier Solar is proud to have won this large contract and partner with New Generation Power, on the largest solar development project in India. Premier will bring its project development and execution skills to get the project off the ground and ensure timely completion”, said Mr. Karthik Polsani, CEO of Premier Solar group. Premier’s co-development partners on this venture are RRE Power and Inspirra Energy, both US-based development firms.

"New Generation Power will build a world class solar facility that India will be proud to call its own that will create significant job opportunities and economic development for Andhra Pradesh. It’s an honor to be part of one of the largest solar farms globally in my native country," said Dr. Chirinjeev Kathuria, the Chairman of New Generation Power. NGP’s additional partner in this venture is Thermo Source.

NGP is currently developing grid scale projects in Africa, Europe, South America and the Caribbean.

Source

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Selling power via long-term pacts augurs well for JSW Energy...

 

Lower power offtake by state distribution companies and depreciation of the rupee led to a 36% year-on-year fall in profit for JSW Energy in the September quarter.

The company on Monday reported a net profit of Rs 162 crore for the quarter. A healthy monsoon resulted in weak demand for power during the quarter. As a result, JSW Energy's plant load factor (PLF), or capacity utilisation , for the quarter dropped to 69.3% from 82% in the year-ago period.

In addition, the depreciation in rupee led to high fuel costs for the company. However, correction in international coal prices partially offset the foreign exchange loss. Overall, the company reported an exceptional loss of Rs 168 crore in the quarter to September because of depreciation in the rupee.

A positive for the investors is that the foreign exchange losses are unlikely to continue in future. During the quarter, the company completely hedged its foreign exchange exposure. While this may lead to higher operating costs, it would reduce earnings volatility in the coming quarters. Over the past few quarters, the company has been shifting its revenue mix towards long-term contracts.

As of September, the company sold 60% of its output through long-term contracts compared with 48% in the previous year.

The company intends to sell up to 80% of its power through long-term power purchase agreements . This augurs well for the company as merchant or shortterm power tariffs have been under pressure due to lower off take. State distribution companies, or discoms, have become disciplined in buying power post their restructuring.

In addition, the integration of southern grid may reduce merchant rates in south India, the company's key supply region. At present, the company has three operational power plants with a combined capacity of 3,140 MW.

In addition, it has started tendering construction for its 240 MW hydropower project. A healthy debt-to-equity ratio of 1.4 gives the company opportunity to expand its capacity through organic route or acquire distressed projects in the near future. Another development to watch out for in the coming quarters is the final tariff for its Rajasthan power plant. At present, the company sells its power at Rs 3.74 per unit.

A higher price may increase investor sentiment in the stock. At the current price, the stock has been trading at a price-to-book value of 1.2, which is lower than the three-year historic average of 1.7. International coal prices and merchant tariff rates would be the key factors to watch out for the stock movement in the near term.

Source

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NVVN has signed a PPA with KSEB to supply 300 MW Power for three years...

 

NTPC Vidyut Vyapar Nigam Ltd (NVVN), the trading arm of National Thermal Power Corporation (NTPC), has signed a Power Purchase Agreement (PPA) with Kerala State Electricity Board (KSEB) to supply 300 MW power for a period of three (3) years.

 

NVVN has won the contract through Competitive Bidding process carried out by KSEB.

 

The period of PPA shall commence from March 2014. It is found that the tariff of the electricity under the PPA will be Rs. 4.50 per unit.

As per the PPA. NVVN has agreed to supply around 7.0 Billion units of power which will be sourced from Chhattisgarh.

 

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Additional Reading...

http://economictimes.indiatimes.com/news/news-by-industry/energy/power/ntpc-power-trading-arm-to-supply-300-mw-electricity-to-kerala/articleshow/21162081.cms

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Noida Power Company signed a PPA for 240 MW with Essar Energy…

Power India found that with Noida Power Company Ltd (NPCL) entering into a Power Purchase Agreement (PPA) with Essar Energy for 240 MW Power, bring some relief to the Noida residents.

 

Under the said agreement, which was signed for a period of 25 years, Essar will supply power to NPCL from its under construction 600 MW Tori – II  Coal based thermal Power Project in Jharkhand from April 2014.

 

The agreement was signed between NPCL and Essar Power Jharkhand Limited, a subsidiary of Essar Energy, following a competitive bidding process.

At present, aggregate power demand in Greater Noida is around 180 MW, but is expected to rise sharply in the next few years due to increasing population.

 

NPCL informed that the 'delivered levelised tariff', at which power would be purchased from Essar, is so far the highest long-term tariff achieved through competitive bidding in India.

 

Power consumers would be at lesser risks of being subjected to higher tariffs over the years, because the unit cost price of electricity for NPCL would remain stable over a 25-year period.

At present, NPCL purchases power from Uttar Pradesh Power Company Limited (UPPCL) apart from other power generators in Gujarat, West Bengal and Jammu & Kashmir.

The UP Power Transmission Company is at present working to upgrade the 132-KV substation in RC Greens in Greater Noida to increase its capacity to 220 KV.

"Low transmission capacity at the disposal of NPCL, which has been the major bottleneck in ensuring unhindered power supply, would be mitigated once this up gradation work is completed in the next few months. This coupled with adequate power at our disposal would ensure 24X7 electricity supply in Greater Noida," as said by NPCL official.

 

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More Literature on this topic:

• http://timesofindia.indiatimes.com/city/noida/New-agreement-gives-boost-to-power-supply/articleshow/13088352.cms

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PPA has been signed for 300 MW Thermal Project with Indonesian Utility by Madhucon Projects…

Power India found that Madhucon Projects has signed a Power Purchase Agreement (PPA) with the Indonesian Government Power Utility PTPLN (PERSERO).

 

Madhucon, is currently setting up 1,920MW of power projects near Krishnapatnam in Andhra Pradesh, has won the bid to build the 300MW mine mouth coal fired steam power plant at Dawas in South Sumatra involving an investment of $410 million.

 

Of the project cost of around Rs 2,000 crore, Madhucon Projects will infuse Rs 325 crore as equity while the other group companies will invest Rs 125 crore wherein the project will be funded through a debt-equity of 75:25.

 

Madhucon’s chief financial officer S. Vaikuntanathan told  that the company was given 12 months period to achieve financial closure for the Indonesian power project and another 36 months from then to commerce power generation.

 

The project, comprising two units of 150MW on build, operate and transfer (BOT) mode, will come up close to the existing coal mine of Madhucon’s Indonesian coal arm PT Madhucon Indonesia at Dawas.

 

The power project will use the coal mined from Madhucon’s South Sumatra coal mine, which is set to begin production during first half of this year, where it expects to mine around 5 lakh tonnes a year to begin with and take it to around 1.5 million tonne a year by 2014-end. In all, Madhucon has three coal mines in Indonesia with estimated reserves of around 1,500 million tonne.

 

 

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BEST to sign a long term PPA with Indiabulls for 300 MW…

Power India found that Brihanmumbai Electric Supply & Transport (BEST) is planning to enter into a long term Power Purchase Agreement (PPA) with Indiabulls Power Limited for 300 MW.

 

The move was considering the estimated exponential increase in power demand in Mumbai city over the next four-five years.

 

BEST is having a current PPA with Tata Power which was for 932 MW and at a tariff rate of Rs. 3.54 per unit is getting expired in 2016.

 

The BEST committee on Tuesday approved the signing of a power purchase agreement with Indiabulls Power for 300 megawatt. The firm will start supplying power from 2016.

 

As said by Mr. O. P. Gupta, General Manager, BEST said:

“Looking at the rate of development, we expect the power demand, catered by the BEST, to touch 1,300 megawatt by 2016. This will be the first time that we are buying power for the long term outside Tata Power”

The state government’s proposed Dharavi redevelopment plan and the construction of a business district in Wadala by the Mumbai Metropolitan Region Development Authority are likely to drive this growth in the demand for electricity.

 

“The projected demand for both these projects is 300 megawatts each, but it will take time for the projects to take shape and the demand to scale up. So we have gone with the assumption that put together, the demand from these two projects would be 300 megawatts by 2016,” Gupta said.

 

As per the agreement with Indiabulls, the company will supply power at Rs 3.42 per unit as the base price for 25 years.

 

BEST will start a fresh bidding process in 2013-end for a long-term supply of 1,000 megawatts, so that it has the capacity to cater to 1,300 megawatts by 2016.

“If we need power over and above that, we will go to the power exchange or buy it from the open market. However, the price in the open market is higher,” Gupta said.

Recently, BEST had purchased 50 megawatts for Rs 4.56 from the open market to make provisions for the peak demand during summer.

Meanwhile, the BEST has decided to hike salaries of its employees after discussions with the Sharad Rao-led union, which had called a flash strike last year.

As a result, BEST will shell out about Rs 350 crore as arrears from 2006 and bear incremental expenses of about Rs 140 to Rs 150 crore every year now on.

 

 

 

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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.

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UP signs 600 MW PPA with Gujarat & Adani Power…

 According to reports the Uttar Pradesh Government has entered into a year-long power purchase agreement (PPA) with the Gujarat government and a private utility Adani Power for 600 MW of electricity.

The UP Government’s move of one year PPA seems for political gains as state elections are to be held next year, but it has also helped narrow the demand-supply gap.

 

As per a report of the Central Electricity Authority

, the state received 6,028 MW of power in June against a requirement of 6,564 MW.

 
The PPA comes at a time when Gujarat is facing a problem of plenty in terms of signing the PPA for its own consumption (Read Here). There are few takers for its 3,000 MW of surplus power, which is set to double in the coming months as private power producers add capacity.

Adani Power's average realization dipped to as low as 2.82 a unit in the first quarter of the current fiscal, as against 3.36 in the corresponding quarter of the previous fiscal. Under the PPA, it will get 4.70 for every unit sold, including transmission charges.

 
Uttar Pradesh, on the other hand, is one of the largest buyers of power in bilateral trade and power exchanges. According to the data published by the Power Exchanges (Indian Energy Exchange and Power Exchange of India), it also pays one of the highest tariffs in the country to procure it. In May, the state accounted for 20% of bilateral power trade, against only 3.8% in 2010 and 5.5% in 2009.

This politics-power nexus may prove to be a bonanza for voters, some of whom may be reluctant to pay a higher price for electricity, but it has its down side: It hampers effective check on power theft and slows down privatization of power distribution. This explains why Gujarat-based Torrent Power will have to wait longer to take over Kanpur's electricity distribution network.

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