Analysis of Trading activities by Licensed Traders for October 2013...

 

 

CERC has released the analysis of power trading activities performed by the licensed traders for the month of October 2013.

The abstract of the report is presented below:

 

 

 

Summary

• The reported short-term contract volume for October 2013 (analysis of five weeks) is 2262 MUs whereas the same was 1529 MUs for the month of for September 2013 (analysis of four weeks). This is equivalent to about 18% increase in average weekly volume transacted during September.
• 85% of total volume has been contracted at price of more than Rs. 4/ kWh during October as compared to 36% of total volume contracted during September.
• Total number of contracts (including swap & banking) executed during October is 273 by 9 traders whereas in September the number of contracts executed was 180 by 9 traders.

 

Comparison of Short Term OTC contracts prices with Power Exchange prices (on Contracted Date)

The contracts executed are almost evenly distributed with the maximum number of contracts executed in the first week of the period (refer to annexure I for contracts executed week-wise) and the overall price of OTC contracts executed was in the range of Rs. 2.02/kWh - Rs. 6.66/kWh whereas the prices on the Exchanges varied between Rs. 1.89/kWh - Rs. 3.47/kWh

Forward Curve of Power Prices

A forward curve reflects present day’s expectation of spot prices for a future period. Accordingly forward curves have been drawn based on prices of contracts executed for supply of power for future period. Forward curve have been drawn for November 2013 – May 2014 based on 247 contracts and for comparison forward curve has been drawn for October 2013 – May 2014 based on 168 contracts. (Pl refer the embedded report)

Post-facto Comparison of Prices in OTC Contracts and in Power Exchanges (on Power Delivery Dates)

The post facto graph shows the average OTC price vis-à-vis power exchanges prices for the last month’s power deliveries. Hence this compares the spot Power Exchange prices with OTC deliveries (OTC contracts may have been executed earlier but delivered on the same days as on the exchange spot deliveries). The methodology of calculating the data points of OTC prices is same as in the forward curve. (Pl refer the embedded report)

List of traders who have undertaken contracts in October 2013

Trader	30th Sep - 6th Oct	7th Oct - 13th Oct	14th Oct - 20th Oct	21st Oct - 27th Oct	28th Oct - 3rd Nov	Grand Total
PTC India Ltd.	Y(49)	Y(44)	Y(38)	Y(36)	Y(41)	Y(208)
NTPC Vidyut Vyapar Nigam Ltd.	Y(11)	Y(4)	Y(7)	Y(8)	Y(6)	Y(36)
Tata Power Trading Co. Ltd.	Y(4)	NIL	Y(2)	Y(9)	Y(2)	Y(17)
JSW Power Trading Company Ltd.	NIL	Y(2)	NIL	Y(1)	Y(1)	Y(4)
Instinct Infra & Power Ltd.	Y(2)	Y(1)	NIL	NIL	NR	Y(3)
Mittal Processors (P) Ltd	Y(2)	NIL	NR	NR	NR	Y(2)
National Energy Trading & Services Ltd.	NIL	NIL	NIL	NIL	Y(1)	Y(1)
Reliance Energy Trading (P) Ltd.	NIL	NIL	NIL	Y(1)	NIL	Y(1)
Shree Cement Ltd	NIL	NIL	NIL	Y(1)	NR	Y(1)
Grand Total	Y(68)	Y(51)	Y(47)	Y(56)	Y(51)	Y(273)

Note 1: Y ( ): Contracts had been undertaken (Number of Contracts), NIL: No Contracts was made during the week, NR: Not Reported
*Note 2: This table shows list of traders who have reported & undertaken at least one contract during the reported period. There could be some traders who have reported but did not undertake any contracts.

Complete report is embedded below.

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India says domestic plant operators can limit global nuclear suppliers' liability...

 

To allay global nuclear suppliers' fears about India's nuclear liability laws that have deterred potential investors, the country is now telling the world's nuclear industry that the domestic plant operator can limit the amount as well as duration of the liability that accrues to foreign suppliers.

Planning Commission deputy chairman Montek Singh Ahluwalia, a close associate of Prime Minister Manmohan Singh, conveyed this interpretation of the 2010 nuclear liability law in a meeting with Canada' industry leaders late last month.

The Congress-led United Progressive Alliance had worked overtime in its first innings to secure a new nuclear cooperation regime after decades of global isolation, but it has been unable to jumpstart its massive nuclear power agenda as vendors from around the world have stopped in their tracks over what they have labelled as unviable liability laws.

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India-Nepal cross border power transmission capacity to get augmented...

 

Nepal with high hydropower potential and its neighbor India with high power demand have agreed to significantly boost up trans-border power transmission line to conduit the excess power from new hydro projects in West Nepal to India. A new World Bank loan sanctioned recently will facilitate early completion of the capacity augmentation project.

The planned immediate capacity augmentation is for at least 1000MW. In addition to the long planned Butwal in West Nepal to Gorakhpur in India line, There are simultaneous plans to construct three other cross-border transmission lines from Butwal-Gorakhpur, Duhabi-Purniya, Anarmani-Siliguri or Dhalkebar to Mujaffarpur

After having the issue discussed with Indian authority through Nepal's External Affairs Ministry, both the countries have come to a final agreement on the matter in meeting of Energy Group under the South Asian Sub-Regional Cooperation.

With a recently granted World Bank loan of USD 37 million, Nepal and India will have at least two double circuit transmission corridors between Dhalkebar-Muzaffarpur and Hetuda-Dhalkebar-Duhabi. These will be of 90 and 40 km length respectively.

According to Nepal Minister for Science, Technology and Environment Mr. U. Jha, this augmentation of power import is must for Nepal especially in dry season. Hydropower rich, Nepal gets highly power starved during dry winter season due to low water flow through its rivers. Then it needs to import around 150MW power to meet even basic minimum need. But the present cross border transmission infrastructure gets only around 50MW to Nepal.

On the other side, more than five big hydropower projects with a collective capacity of around 20,000 MW are under feasibility study in West Nepal. Nepal cannot consume the output of those. If exported, the surplus power, generated out of these projects with renewable source to India, can get the financially crunched Nepal into a more comfortable situation.

Across the border, "Demand in Indian national grid is increasing rapidly. Rate of this demand growth in Eastern India is high. Proper power evacuation from Nepal can be of great help for India to meet up this extra demand," said Power Grid Corporation Limited officials.

Source

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India, Australia to hold talks for civil nuclear power co-operation on 26-27 November...

 

Australia and India are to hold the third round of their civil nuclear cooperation talks Nov 26-27 to pave the way for early conclusion of the agreement, visiting Australian Foreign Minister Julie Bishop said in New Delhi on Monday after talks with External Affairs Minister Salman Khurshid.

Australia would also support India's membership of the Nuclear Suppliers Group (NSG), Bishop said during a joint press conference.

The two sides inked two agreements, including a statement of intent between the Australian government and Nalanda University.

Bishop said both sides hoped to conclude the civil nuclear cooperation negotiations that would pave the way for the sale of Australian uranium to India.

She said both sides are negotiating in "good faith" and added that the Tony Abbot government, which took office after elections in September, is in favour of selling uranium to India.

Australia and India are also planning to begin negotiations on a free trade agreement, she said.

Khurshid said both sides were looking to schedule a visit early next year of new Australian Prime Minister Tony Abbott to India.

"We are looking at an early slot for him to come down next year," he said.

The visit was being planned amid indications that Abbott "wants to begin his term with a fruitful visit to India", he said.

Australia and India are also increasing air connectivity with Air India deciding to start direct flights to Sydney and Melbourne and Air Australia planning to launch direct flights to India, said Khurshid.

The external affairs minister said Indian business had an "impressive footprint" on Australian soil and hoped that a larger number of Indian companies will invest in Australia.

An Indian-Australian CEOs' forum is to meet soon, he said.

Bishop said she wanted to visit India early in her tenure "to show the significance we attach to ties with India".

She said the "ambitious" free trade agreement (FTA) they planned to negotiate would be mutually beneficial.

As part of their deepening engagement in security cooperation, the navies of the two countries are to hold joint exercises.

Both sides also discussed cooperation in counter-terrorism and cyber security.

In the field of energy security, Bishop said India could count on Australia for its "trusted and reliable support" for its needs, including coal, LNG and civil nuclear energy cooperation.

Bishop said there were "no specific time lines" in concluding the civil nuclear agreement with India and both were "waiting to get it right".

Energy-starved India aims to upgrade its nuclear power generation capacity to 20,000 megawatts (MW) by 2020.

Australia has one of the largest known uranium reserves in the world.

Australia, a key member of the Nuclear Suppliers Group, had earlier been opposed to selling uranium to India as New Delhi has not signed the Nuclear Non-Proliferation Treaty (NPT). It reversed its policy in 2011.

Bishop also said her country welcomes Indians coming to Australia to pursue higher education.

As part of wooing bright Indian minds to that country, the Abbott government has proposed a new programme under which students can pursue internship with a business company, she said.

Source

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Tata Power halts 4 generation units of Mundra Ultra Mega Power Project...

 

Tata Power has temporarily stopped 4 of its power generation units at Mundra UMPP after a major fire broke out at the plant on 14th Nov. Tata Power in a mail to confirmed saying that, they have stopped the generation from CGPL, coastal Gujarat power limited, the company that operates, mundra UMPP, since a fire had occurred in conveyor gallery.

The coal feeding conveyor 4A and 4B were partly impacted. Tata Power has confirmed that the generation which is stopped is expected to start from Nov 24 onwards progressively, and full restoration of the station is likely by Dec 3rd.Company sources say that, the fire broke out at 4.30 am on November 14 when the Mundra plant was generating 3,040 Mw from four units.

Unit No. 2 was under shut down for the inspection of generator and transformer earlier itself. While, most of the damage is expected to be insured, analysts say that CGPL is expected to incur generational losses of 912 million units amounting to around  206 cr rupees. Even states like Gujarat, Mahrashtra, Haryana, Rajasthan, Punjab, which draw power from Mundra UMPP are expected to face significant generational losses.

According to experts, Gujarat, which has 47.5 per cent share in the drawal of power from the Mundra UMPP, will have a generation loss of 433 million units followed by Maharashtra, which has 20 per cent share at 180 million units; Punjab, with 15 per cent share at 114 million units; and Harayana and Rajasthan, both 10 per cent share at 91 million units each.

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NHPC to supply 300 MW unallocated power from Subansiri Hydro Project to Assam State...

 

Bowing to pressure, the National Hydroelectric Power Corporation (NHPC) has agreed to supply 300 MW of unallocated power to Assam from the Subansiri (Lower) Hydroelectric Power Project, in addition to 233 MW from the sub-lower Hydroelectric Project.

In a note circulated by the Ministry of Power regarding the updated status of the 2000 MW project, which has been mired in controversy, it claimed that the Technical Advisory Committee (TEC) constituted by the Planning Commission examined the various issues and based on its recommendation, the Dam Design Review Panel (DDRP) was formed, which in its recommendation, has validated the seismic design parameter adopted in the design of the project.

The note said that all downstream issues were examined by the Joint Steering Committee (JSC) and the NHPC has agreed to implement its recommendation having an implication of Rs 470 crore. It has also been decided to give 300 MW unallocated power to Assam, in addition to 233 MW including 25 MW free and 208 MW paid power – it is getting from the sub-lower Hydroelectric Project.

The note further said that certain design innovations in the energy dissipation arrangement (EDA) have been recommended as additional safety measures to allay the apprehensions and concerns expressed by some sections of the society relating to safety of the dam. Besides, the quantum of minimum continuous release, which was 6 cumec and one of the major concerns, has been reviewed and it has been agreed to maintain minimum continuous flow of 250-300 cumec operating one unit continuously, the note said.

There would be an insignificant adverse impact downsteam and benefits are manifold to boost economy, lifestyle and prosperity of the area, the Ministry of Power said.

The Subansiri Lower Project has been stalled for the last couple of years following agitations spearheaded by the All Assam Students’ Union (AASU) and Krishak Mukti Sangram Samiti and other anti-dam groups citing concerns over its downstream impact in Assam.

About flood moderation, it was stated that the Subansiri Lower Project is a run-of-the-river project with small pondage for peaking power, as well as to attenuate the floods during the Monsoon season by operating the reservoir at low level. The project would help flood having flood attenuation by regulated discharge of water in the river. During flood period, the reservoir would be operated 15 m below the Full Reservoir Level (FRL) having flood cushion of 442 Mcum.

Since it has been planned for flood moderation of the Subansiri river, when operated in integration with Subansiri (middle) and upper, their integrated operation can moderate hundred-year return flood below SLP.

The Thatte Committee that was appointed to go into the issue has categorically stated that there can be no flood control without dams.JSC has reiterated that in the Subansiri Basin, integrated reservoir operation of the Subansiri lower, middle and upper is required for effective flood moderation downstream.

Source

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Cross-subsidy surcharge in open access to rise 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.

Source

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