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November 19, 2013

Cross-subsidy surcharge in open access to rise in Maharashtra...

 

Cross Subsidy Surcharge in Maharashtra

Industries in Maharashtra will have to shell out more to avail open access due to a rise in cross-subsidy surcharge (CSS). The trigger is a recent order by the Maharashtra Electricity Regulatory Commission (MERC) to increase CSS from September 1 this year with retrospective effect.

Industry bodies argue open access will become an unviable proposition because, apart from higher CSS, they will have to pay charges towards transmission and distribution losses, wheeling charges and administrative charges. This will amount to more than Rs 3.60 per unit over and above the purchase of power through open access.

For extra high voltage (EHV) express feeder consumers, CSS in open access has increased from Rs 1.63 a unit to Rs 2.75 a unit; for EHV non-express feeder consumers, it has risen from Rs 1.20 a unit to Rs 2.26 a unit. In the case of high-tension express feeder consumers, CSS has increased to Rs 2.30 a unit from Rs 1.18 and for high-tension non-express feeder consumers, it has risen from 76 paise a unit to 1.82 a unit.

Jayant Deo, founder member of Maharashtra Electricity Regulatory Commission, told Business Standard: "'The increase in CSS is against the Electricity Act, 2003 and also the National Tariff Policy. In fact, as per the third proviso of section 42 (2) of the Electricity Act, 2003, the surcharge and cross-subsidies are required to be progressively reduced in the manner as may be specified by the regulator. However, in this case, MERC has not given the roadmap for the same. MERC’s order is against the very preamble of the Electricity Act, 2003 which demands transparency in the subsidies."

On the other hand, R B Goenka, chairman of Vidarbha Industries Association's (VIA) Energy Cell, said there won't be any competition in the power sector and the consumers drawing power from the state-run Maharashtra State Electricity Distribution Company will have no other option to purchase power from it despite high tariff. "In our view, the CSS is unrealistic and misplaced. CSS in open access cannot be increased till a road map for reduction in cross-subsidy is decided,'' he added. According to Goenka, VIA will soon approach the Appellate Tribunal for Electricity challenging the MERC's order.

According to S L Patil, advisor, Thane Belapur Industries Association, industries will not be able to avail cheap power from various sources in the country. Higher CCS, as proposed, will kill the spirit of competitiveness in the power sector and is detrimental to industrial growth, which is already struggling with the high cost of inputs, he noted.

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November 18, 2013

Fairwood to make India global hub for green energy solutions...

 

Fairwood Smart Green

Fairwood Smart Green, a wholly owned subsidiary of the Singapore-headquartered Fairwood Smart Green Global, has lined up plans to eventually turn the Indian operation into global production hub for hardware and software for hi-tech automation products and solutions for renewable and infrastructure projects across the world.

Singapore-based Fairwood group and Slovenia-based Robotina Group are two major shareholders in the company.

With this in view, the company has already set up a large production facility at Gurgaon with a total capital outlay of Euro 1 million, which will primarily cater to India’s growing renewable power sector and eventually come up as a global sourcing hub.

“The manufacturing facility at Gurgaon will be making a range of hi-tech energy conservation devices, including the Hybrid Green Box, a stand-alone energy production and management system, which combines solar plant production, other renewable energy systems, for rural and remote locations and urban areas,” Vikas Chopra, CEO, said.

This will manufacture 5000 units of different sizes in the first year, but it has capacity of manufacturing 15000 units in the same facility, which is further expandable.

“This is just the beginning. We can either expand in the same facility or look at other locations as and when India becomes a sourcing hub for West Asia, Europe and other Asian countries,” he said.

“The company has also started working with an NGO at a far-flung village in Jhansi with the objective of empowering homes, irrigation wells, community centers and primary schools. The company has set a target of covering 200-500 villages for rural electrification across various states of India including Bihar, Orissa, Uttarakhand, Uttar Pradesh, Himachal and Northeast states. The same model will be replicated in other Asian countries as well,” he said.

“The huge potential and vast scale of the Indian market have been the two key reasons for Fairwood Smart Green to set up its production facility in India. We aim to establish India as a base for production of hardware and software for hi-tech automation products and solutions for renewable and infrastructure projects across the world. The potential for off-grid, mini-grids, and smart-grids, is enormous in rural and remote areas of India, as well as in other countries of Asia, such as Indonesia, Philippines, etc . Announcements in this regard will follow soon,” said Ranbir Saran Das, vice chairman, Fairwood Group.

Devid Palcic, CEO of Fairwood Smart Green Global, on his parts, said that the whole idea is to offer services that are responsible for overall reduction in energy and optimisation of manpower requirements, with features supporting remote management of energy, manpower, safety, security, failure detection and preventive maintenance.

“The Hybrid Green Box, for instance, is an integrated power generation system, which is easy to install and provides efficient, reliable and sustainable power supply. All products have integrated intelligence and feature full remote monitoring and management. This unique concept enable ‘green boxes’ to be integrated into smart city concept, to be included in the virtual power plants and to provide full demand side management, ensuring energy where and when most needed,” said Palcic.

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Three Indian firms shortlisted for Zayed Future Energy Prize...

 

Three Indian firms receives Zayed Futuer Energy Price

Three Indian firms have been shortlisted for the Zayed Future Energy Prize, the world's top award for innovation in renewable energy and sustainability.

The finalists, announced yesterday from 552 submissions from 88 countries, include three global corporations, small and medium enterprises from India, the United States and Belgium, three non-governmental organisations and 10 high schools.

The winners will be announced on January 20 to coincide with Abu Dhabi Sustainability Week.

The shortlisted submissions were evaluated by the jury panel across five categories: large corporation, non-governmental organization (NGO), small and medium enterprise (SME), lifetime achievement, and global high schools.

Abellon CleanEnergy, a bio energy company, and SELCO, a solar for-profit social enterprise, in SME category and Kalkeri Sangeet Vidyalaya (India) representing the Asia region are among the finalists for the 2014 prize.

The Prize jury includes heads of state, leading energy experts  and world-renowned personalities committed to the global effort of accelerating the adoption of renewable energy and sustainability.

"Our winners are global and their impact has been truly global. In six years, the Prize has grown into a platform that impacts the lives of many around the world, accelerating energy and water access, renewable energy advocacy and deployment and energy efficiency, even while creating education and job opportunities through the projects pioneered by our winners,"

Director General of the Zayed Future Energy Prize, Sultan Ahmed Al Jaber, said.

"The Zayed Future Energy Prize is one of a kind - it is the only prize that recognizes and rewards the solutions for the future. The Prize shows us that a different kind of future is possible," Chairmain of the Jury panel Lafur Ragnar Grmsson said.

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Interaction with ABB's global head of power on India's renewable energy segment...

 

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While weak macro-economic situations hamper India’s power infrastructure sector, multinational power products makers, ABB Ltd have evolved a flexible business model to sail through the weakness in domestic market.

In an interaction with Rutam Vora, during the opening of its new transformers factory at Savli, ABB Ltd’s global head of power products division, Bernhard Jucker explains how the company uses India factories as feeder units for its global factories to survive domestic slackness and what the future prospects are in the renewable segment for the company in India. Edited excerpts:

Considering the present power infrastructure scenario in India, what do you think about government policies for power infrastructure sector’s growth?

There are plans and strategies in place for stronger and smarter transmission grids. But it is also important that investments follow the said plans. So, what is needed is known, the technology to do it is also there, it is the implementation and the speed of implementation that is to be looked at now.

It is up to the utilities, which are in-charge of executing those plans to ensure that the transmission corridors are set up and losses are reduced. These elements will help fuel growth of the sector.

When do you see things getting favourable for power infrastructure companies? In the present scenario, how will you plan your investments for India operations?

Can’t say anything about future as the country goes to elections in coming months. A lot depends on elections and the new government. But broadly, in a growing market like India, the key fundamental drivers for power sector’s growth are there. We see new infrastructure capacities coming up, and there is opportunity to built state of the art facilities, reduce T&D losses, and plug the demand-supply gap.

For ABB’s power products, India is one of our biggest manufacturing hubs in the world. We invest in those products which have varied applications like renewable, conventional power generation and also to infrastructure like housing. We have had good success in solar in India, or the power systems.

What potential do you see in renewable segment in India for a company like ABB?

The potential is there. It’s the question of how the countries’ regulators or the politicians deal with it. In wind, it was a booming market till recently but all of a sudden it went down. Similar is the case with solar. There is growth at present, but let’s see what happens now onwards. In India, it depends more on the regulator, on the subsidies offered and how the market dynamics play.

Presently, we deliver the main components to renewable segments. For wind we supply everything electrical inside a windmill including generator, inverter convertors and medium voltage switchgears and transformers. For solar, except the cell, ABB has the whole value chain of power products which fit or support the application in renewable. So, we are prepared to serve the renewable solutions in India and we have all the products lined up.

How have you managed to sustain the current weakness in the India’s power infrastructure business?

In the power products segment, we have been able to increase portion in our exports. It is giving additional volume to support the business in India, which is passing through a challenging environment at present. Our world-class facilities operate as feeder units for the other factories globally.

This gives us cushion during any lean spell in domestic market. Currently, our export from India operations is 15% of total sales and they are growing. Because of the feeder factories network, ABB has the flexibility to balance the domestic demand-supply fluctuations with the international demand.

We have products that are totally global. You can say almost single source is India for the globe. We have sent transformers as far as the US. So, we have flexible market to cater to, and that is why it is important to set up world-class facilities in India. The concept works in such a way that the idea is to balance the demand and supply. It’s not like saying that your core market is your domestic market.

Is India moving towards ultra high voltage transformers? What are the prospects for it?

For a strong grid, you need ultra high voltage corridors because higher the voltage, lower the losses. If that is 800 kv or 1200 kv, it depends on topology of the grid you are setting up.

But in a large country like India there is a potential for ultra high voltage transformers like 1200 kv. We have recently delivered one 1200 kv transformer for PGCIL. Looking at the geographic expansion of power grid in India, we see overall trend towards high voltage.

Also, with increasing urbanization, there is a need for space efficient, environmentally friendly and quick-to-install switchgears and distribution transformers.

Gas-insulated switchgears (GIS) cuts down the size of carbon foot print by 90% of that be air-insulated switchgear (AIS) up to 90%. In the distribution transformers, dry-type transformers are safer at places like cinema buildings, hotels, multiplexes etc.

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Monthly review of Indian Power Sector - October 2013...

 

Monthly Review of Indian Power Sector

 

During the month of October 2013, around 530 MW of generating capacity has been installed under the Indian Power Sector reaching the total cumulative generating capacity at around 229.25 GW.

Further around 411 Circuit Kms of transmission lines are also added.

 

Summary of the review of Indian Power Sector for the month of October 2013 is depicted below:

  • Electricity Generation for the month of October was at 79.44 BUs
  • Generating Capacity Addition for the month was 530 MW
    • Commissioning of Unit 6 (500 MW) of Rihand STPS III by BHEL on 7th October
    • Commissioning of Unit 2 & 3 (30 MW) of Nimmo Bazgo Hydro Project by NHPC on 31st October
  • The all India installed capacity reaches at 229251.74 MW
  • Transmission Lines for 411 Circuit Kms installed during the month
  • Transformation Capacity Addition during the month was 7225 MVA
  • Average Power Supply deficit was around 3.5% during the month
    • Northern Region - 6.2%,
    • Western Region - 0.7%, S
    • outhern Region - 4.5%,
    • Eastern Region - 1.3%,
    • North Eastern Region - 5.0%
  • Peak Power Supply deficit was at 3%
    • Northern Region - 6.7%,
    • Western Region - 0.1%,
    • Southern Region - 2.2%,
    • Eastern Region - 1.3%,
    • North Eastern Region - 4.3%
  • All India Plant Load Factor maintained was around 61.85%
    • Central Generating Plants -  68.78%,
    • State Generating Plants - 54.44%,
    • Private Generating Plants - 63.25%

Detailed report on the same will follow.

Source: CEA

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REPower, Suzlon Group company, to unveil its new offshore wind turbine 6.2M152...

 

REPower unviels new offshore turbine

At EWEA offshore 2013, the Suzlon Group - the world's fifth largest wind turbine manufacturer - will unveil its new offshore turbine, the REpower 6.2M152.

With the new offering, the company once again sets standards in the cost-effective generation of offshore wind energy.


Some of the features as highlighted by the company are:

  • Bigger rotor increases energy yield by 20%
  • Rater power of 6.15 megawatts and a rotor diameter of 152 meters
  • Prototype scheduled for installation in 2014

The new turbine features a rotor diameter of 152 meters, with the rotors sweeping an area larger than three football pitches. The nacelle alone is as big as two detached houses and will be constructed offshore at a height of between 95 and 11 meters.

The larger rotor diameter compared to the last generation - the REpower 6.2M126 (126 meters) - achieves an increase in energy yield by 20 per cent at wind speeds of 9.5 m/s. With a rater power of 6.15 megawatts, each REpower 6.2M152 turbine can supply around 4,000 homes with electricity.

Andres Nauen, CEO of REpower Systems Se, said: "We are the only manufacturer to have already installed more than 100 offshore turbines in the multi-megawatt class. With an eye on the outstanding availability and energy yield of the REpower 6.2M126, we have enhanced this robust, proven concept: the bigger rotor and correspondingly larger drive train of REpower, 6.2M152 combined with tried-and-tested, first class technology enables our customers to generate energy even more cost-efficiently on the high seas."

The Hamburg-based company has already sold the prototype REpower 6.2M152. Together with the customer, it has been agreed to construct the prototype with a hub height of 124 meters at an onshore site in northern Germany, with construction scheduled for completion by the end of 2014. From 2015, REpower 6.2M152 will enter commercial production. REpower already manufactures the world's most powerful commercially-produced offshore turbine. Since introducing its multi-megawatt offshore turbines ten years ago, REpower has constructed more than 100 turbines of this platform.

Source: NSE

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Reliance Infra commissions india's first privately owned transmission line between Pune-Parli...

 

RInfra commissions pune-parli transmission line

Reliance Power Transmission Ltd, a SPV of Reliance Infra has commissioned the 311 km Pune-Parli transmission line. The line is part of the 1,500 km Western Region System Strengthening Scheme II, and will connect industrial centres of Maharashtra like Pune, Aurangabad and Beed.

This is India’s first 100 per cent privately owned interstate transmission project of the National Grid. On completion, it will enable evacuation of surplus power of 4000 MW from the eastern part of the country to the Western region.

To be executed at a cost of Rs 1,700 crore, the WRSS project was awarded to Reliance Infra through a tariff based international competitive bidding process. It has been executed on a build, own and operate pattern.

In Maharashtra, Reliance Infra has commissioned four lines (of six) under the project. The sixth and the last line is between Pune and Aurangabad, and is expected to be commissioned soon, the company said in a filing to the BSE.

At present, Reliance Infra is executing five transmission projects across the country involving total outlay of Rs 6,600 crore.

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NTPC cancels Rs 700 crore gas turbine tender with Finmeccanica subsidiary...

 

NTPC scraps turbine tender with Finmeccanica

In A bid to avoid any embarrassment from probes by investigating agency, India’s largest thermal power generator NTPC has scrapped a gas turbine tender worth over Rs 700 crore with Italian firm Ansaldo Energia SpA.

Genoa-based Ansaldo Energia is a subsidiary of Finmeccanica, the parent company of tainted Agusta Westland. Indian defence ministry’s multi-billion chopper deal with Anglo-Italian Anglo-Italian firm Agusta Westland smacked off corruption and NTPC fearing future trouble decided to cancel the tender after it was found that the Italian firm was the lowest bidder with price of Rs 756 crore against Siemens’ Rs 780 crore.


According to a media report published in a national daily, the Maharatna company’s action prompted Italian ambassador Daniele Mancini to take up the issue with Union power ministry.


NTPC landed in a complicated situation after Italian power generator Ansaldo Energia SpA beat Siemens AG of Germany to emerge as the lowest bidder in the international tender for buying gas turbine package to renovate NTPC’s Dadri plant near Delhi.


Italian conglomerate Finnmecanica has a majority stake of 56 percent in Ansaldo, while it owns 100 percent equity in Agusta Westland.


At a time when the pricing was being firmed up, the CBI and the Joint Parliamentary Committee (JPC) began separate probes into alleged payoffs by Agusta Westland in the Rs 36 billion chopper deal.


NTPC then approached the independent external monitors for the tender, Integrity Pact. The monitor advised NTPC to seek legal opinion on whether misdeeds of one group firm should reflect on another. Following this, NTPC sought attorney general's opinion. Attorney General, the government's highest law officer, advised NTPC against straightaway placing the equipment order with Ansaldo as the cases of misdeeds against Finnmecanica were by no means lighter.


But for NTPC, it was not that easy to walk out of deal. In the meantime, the Dadri unit said replacing the plant's obsolete panels immediately was more important than replacing gas turbines. Taking advantage of the situation, the power utility decided to scrap the tender altogether citing pertinent tender clause.


Earlier, in February 2012, Ansaldo Caldaie Boilers India Pvt Ltd, a unit of Ansaldo Caldaie SpA, lost a case in the Supreme Court, challenging NTPC's decision to disqualify the firm in a Rs 22,000 crore tender for super-critical boilers.

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Roadshows for Coal India's 5% stake sale begin...

 

coal india divestment road show begin

Coal India  is the biggest loser on the Nifty, shedding around 1 percent in intraday on Monday. The world's largest coal miner starts off its second round of roadshows for the 5 percent stake sale and will continue till November 26.

The government will hold roadshows in Singapore, Hong Kong and Australia from next week.

Earlier, investors have expressed concern over the lack of an appropriate regulatory regime for the sector as well as the long pending restructuring of this public sector behemoth. Investors are particularly concerned over the pricing power of Coal India and what impact the proposed regulatory architecture would have on that ability.

The stock had fallen around 5 percent on Thursday after reporting September quarter results. Its consolidated net profit dropped to Rs 3,052.36 crore for the July-September quarter as expenses rose. posted a profit of Rs 3,078.08 crore in the second quarter a year earlier.

Net sales rose 5.75 percent to Rs 15,411.49 crore from Rs 14,572.54 crore. At 10:55 hrs, the stock was quoting at Rs 271.95, down Rs 2.50, or 0.91 percent on the NSE.

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TEDA launches Chief Minister's Solar scheme...

 

Solar Scheme by TEDA

Tamil Nadu Energy Development Agency (TEDA) has launched Chief Minister’s Solar Rooftop Capital Incentive scheme, which offers a subsidy of Rs 20,000 for a kilowatt capacity solar plant.
 
With the launch of the scheme, the domestic power consumer could apply for installing a grid-connected rooftop solar photovoltaic plant through the TEDA’s website: www.teda.in or mailing the application by post to its office in Chennai. 
 
Tamil Nadu Electricity Regulatory Commission issued its order on November 13 on ‘net metering’ and ‘LT connectivity’. While a one kW solar system without battery costs Rs1 lakh, the consumer will have to invest only Rs 50,000 and the rest will be borne by the Centre subsidy of Rs 30,000 and state’s Rs 20,000.
 
The consumers power troubles too could be over as a solar system of one kW capacity can generate approximately 1,600 units a year. It works out to a saving of Rs 9,200 per year at a tariff of Rs 5.75 per kWhr. A senior official of energy department said that the subsidy will be given only to domestic consumers under ‘LT-1A’ category on ‘first come first served’ basis for the grid-connected and battery-less solar systems.
 
The consumer should purchase the system from the vendors enlisted by TEDA, the official said, adding that the consumer should also bear the cost of bi-directional meter, which will replace the existing consumer

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