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December 6, 2013

DVC seeks World Bank funding for 1,000 mw solar plan...

 

DVC seeks WB funding for 1,000 mw solar plan...

Damodar Valley Corporation (DVC), owned jointly by the centre, West Bengal government and Jharkhand government, has lined up plans to reach up to 1,000 mw of solar generating capacity by 2022, which would entail a cumulative capital investment of nearly Rs 8,500 crore over this period and it is seeking a 30-year long-term World Bank funding to reach its goal, top DVC officials told Financial Chronicle.

DVC is anyway required to scale up its solar capacity to a minimum of 235 mw by financial year 2017, in line with its solar RPO (renewable purchase obligations) obligations for the existing distribution business of the company. The solar PV potential of the company in the command area is 410 mw across irrigation canals.

DVC also has additional utilisation potential in terms of dams with a combined length of 16,538 meters, reservoirs with combined top of gate area of 362.92 sq km and possession of barren lands, TG hall roof-top etc.

Significantly, taking a cue to the success of 1 mw canal top solar power project set up by Gujarat state electricity board (GSEB) over 1 km long stretch of Narmada branch canal, DVC has already initiated 15 mw canal top solar power project on DVC canal, for which DPR has been done and EOI has been floated and NIT has also been floated.

It is expected that the ordering for the project will be done by this month and the plant is expected to be installed by the end of 2014.

According to officials the proposed canal top solar power will eliminate use of additional land but will certainly have some additional cost implication, for which it is seeking long term World Bank financing.

The estimated investment requirement for meeting the solar RPO obligation will be Rs 70 crore for financial year 2014, Rs 230 crore for FY15, Rs 600 crore for FY16, Rs 700 crore for FY17 and Rs 580 crore for FY18 respectively.

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Independent agency to determine power purchase rate from NTPC...

 

Independent agency to determine power purchase rate from NTPC...

The state government has instructed power trading company Gridco Ltd to engage an independent agency to find out power purchase rate from NTPC, which has demanded higher rate citing rising cost of generation due to use of imported coal.

“It is requested that Gridco may engage one independent organisation to study the matter comprehensively and suggest way of means to come out of this impasse,” the state Energy department wrote to the power trading arm.

NTPC has two power plants in the state, a super thermal power plant of 3,000 Mw and Talcher Thermal Power Station (TTPS) having 460 Mw capacity. It needs about 60,000 tonne coal per day to run the units. While TTPS provides its entire generation to state grid, the super thermal unit supplies 518 Mw to the state from its 6 X 500 Mw complex. Odisha also gets around 1,100 Mw from different power stations of NTPC situated out of the state, as per its entitlement.

The largest power generating company of India has been demanding hike in its power tariff on the plea of use of costlier imported coal to run its all power plants because of the inability of state-run Coal India Ltd (CIL) to meet its fuel need. 

The request from NTPC comes at a time, when the Centre has decided not to implement the coal pooling price formula to determine power tariff, as states like Odisha and West Bengal opposed the move, saying it is an injustice for coal-rich states to pay the price of imported coal in form of higher power tariff.

“The coal price pooling has been kept in abeyance for the time being,” said a letter from Union power ministry recently, addressed to all state governments.

As the move has been stalled, NTPC has taken up the issue at its own level as it faces coal supply problems for its plants. Recently, the power producer had to curb production at its super thermal power plant in Talcher as CIL subsidiary Mahanadi Coalfields Ltd (MCL) restricted transportation for four days following violence by the local villagers last week.

The company has already hinted that its total coal import for the current fiscal could touch 16 million tonne, roughly 9 per cent of its total need estimated at 178 million tonne for 2013-14. It imported 5 per cent of its requirement in last fiscal.

Gridco officials said, the price of power procured from  NTPC is already high and amid poor recovery from power distributing utilities it would be difficult to accept the tariff suggested by NTPC.

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Power ministry floats draft cabinet note on mega power policy...

 

Power ministry floats draft cabinet note on mega power policy...

The ministry of power has circulated a draft note for cabinet committee on economic affairs (CCEA) for certain amendments in the mega power policy, power minister Jyotiraditya Scindia said in the Lok Sabha.


“Details will be finalized once the comments of the concerned ministries are received and considered,” Scindia said in a written reply.


Thermal power projects of 1,000 megawatts (MW) or more, or a hydel power plant of 500MW or more, will be eligible for the benefit under the mega power policy.


It aims at providing impetus to development of large sized power projects and derive benefit from the economies of scale. These guidelines were last modified in 2006.


Scindia also said the government has decided that fuel supply agreements (FSAs) will be signed for the plants commissioned after March 2009 and scheduled to be commissioned by March 2015 totalling 78,000MW.


So far, of the 172 FSAs as many as 157 pacts have been signed between power producers and Coal India Ltd.


Signing of FSAs will ensure availability of fuel to the power plants which will boost power generation in the coming years, he said.


The government has taken several initiatives to enhance private participation and boosting power generation in the country including structural reforms for state electricity boards, formation of central and state regulatory commissions and formulation of national grid, Scindia added.


The government has also recognized power trading as a distinct activity.

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Updates on Chhattisgarh, Delhi, MP, Mizoram & Rajasthan Power Scenario...

 

Updates on Chhattisgarh, Delhi, MP, Mizoram & Rajasthan Power Scenario...

look at the five states where elections have been held reveals a mixed bag in terms of their achievements in power, a key constituent of the bijli, sadak, paani troika and which is often used as a yardstick for how governments have delivered on basic infrastructure.


The smaller states generally seem to have done better on key measurable parameters such as augmenting capacity at the generation end and cutting down on technical and commercial losses on the distribution side.

 

Even those that have done well seem to have focused their attention more on the upstream generation side, while the downstream distribution segment continues to do badly, with Delhi being the only exception.


Chhattisgarh

On power generation capacity, Chhattisgarh has made significant progress in facilitating pit-head projects, aided by the local availability of coal resources.


Private generation projects of about 22,000 MW are under construction and expected to start during the current five-year plan period. Plants of about 10,000 MW with MoUs signed have had land acquired, water supply contracted and environment clearances granted, but further progress has slowed down due to non-availability of coal. Plus, the Chhattisgarh State Generation Company has commissioned a 500 MW unit at Korba and another of 1,000 MW at Marwa is in advanced stages of commissioning.


On the flip side, the 1,320 MW Bhaiyathan project, Chhattisgarh’s showcase, has been stuck in a morass for five years. Quotes had been invited in October 2008, and the project, which came with captive coal blocks in Korba, was awarded to Indiabulls for a benchmark tariff of 81 paise per unit, one of the lowest rates discovered through the tariff-based competitive bidding route. The mines, however, could not receive forest clearance and the project has been stuck since.


On rural electrification, the Centre has placed the performance of Chhattisgarh — specifically with respect to the implementation of the former’s flagship Rajiv Gandhi Grameen Vidyutikaran Yojana —under the “unsatisfactory” category. Chhattisgarh has, in turn, blamed the central PSUs — NESCL, NHPC and PGCIL — that were appointed implementing agencies.


Also, Chhattisgarh has been reluctant to come to terms with the provisions of the Financial Restructuring Scheme for Power Distribution Companies, wherein 50 per cent of the outstanding short-term liabilities (STL) as on March 31, 2012, are to be taken over by the respective state governments. This amounts to about Rs 550 crore in the case of the Chhattisgarh State Power Distribution Co. Ltd. The government has said absorbing the STL may excessively burden the budget and sought a change in the structure of the scheme.


Delhi

Delhi has made significant progress in ramping up capacity in sync with rising demand, despite constraints of land and fuel. Last fiscal, Delhi met a peak of 5,642 MW, up from 4,408 MW in 2009-10, and is gearing up to meet a peak of 6,000 MW this fiscal. The state’s own generation capacity increased from 982 MW to 2,200 MW during the 11th plan and another 2,800 MW is proposed to be added during the 12th, taking the total capacity to around 5,000 MW.


On the distribution side, Delhi’s aggregate losses are down from 25.18 per cent four years ago to 15.15 per cent in 2011-12, as compared to the national average of 26.15 per cent. But the financial positions of the three private distribution utilities, especially the two run by BSES, are reported to be in bad shape.


Among showcase projects, the first 750-MW phase of the Bawana plant was commissioned in 2010-11. While the second 750-MW phase is almost ready for commissioning, the lack of supply of enough gas is holding up progress. Also, the project for islanding Delhi, which would put it on par with Mumbai, is being implemented and expected to be completed by 2013-end or 2014.

Madhya Pradesh


Generation capacity is up from 6,418.8 MW in March 2006 to 10,698.6 in March 2013. This is largely on account of capacity set up by central sector utilities, which have almost doubled capacity from 1,715.85 MW to 3,526.1 MW during the period. Also, while AT&C losses have come down from 37.79 per cent to 27.11 per cent between 2009 and 2012, these are still higher than the national average. The government says revenues have increased from Rs 4,521 crore in 2003 to 15,284 crore in 2013.


The government’s promises include 24×7 supply to non-agricultural consumers, 10 hours quality power for agriculture, and to make the state energy-surplus by 2014 with a focused thrust on solar, wind, small hydro and biomass projects. The contribution of renewable energy sources is targeted to go up from 5.31 per cent (499 MW) to 17 per cent (3,200 MW) by June 2015.

Mizoram


The small northeastern state managed to increase its installed capacity during the 11th plan by 15.6 MW and build 168.49 km additional transmission lines. Transmission and distribution losses at the beginning of the 11th plan were estimated at 52 per cent, which was brought down to 29.16 per cent by the end of the period. Plus, under the Rajiv Gandhi Grameen Vidyutikaran Yojana, the state electrified 94 villages (68.6 per cent of a target of 137), gave BPL connections to 15,144 households (55.2 per cent of the targeted 27,417) and set up four 33-kV substations, broadly on target. The construction of the Tuirial HEP (60 MW) by NEEPCO is reported to be progressing well and the government has cleared its equity share of Rs. 41.14 crore for evacuation of power from the Pallatana gas-based project.

Rajasthan

During the 11th Plan, the state added 4,219 MW to its capacity, with another 860 MW added during 2012-13, taking the total installed capacity to 11,168 MW. Another 3,415 MW from conventional sources is likely to be added by March 2014.
As part of the Congress government’s “vision 2017”, the state hopes to become “self-sufficient” in power generation by the end of 2013-14. Also, electrification is under way in all revenue villages with a population over 300 under the RGGVY. Rajasthan has been proactive in offering support of Rs 8,954.89 crore to its power utilities and is implementing a restructuring plan of Rs 19,254 crore proposed under the Centre’s debt restructuring scheme. Plus, the state has been aggressively promoting generation from renewable energy sources.

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KERC extends deadline for tariff revision applications...

 

KERC extends deadline for tariff revision applications...

he Karnataka Electricity Regulatory Commission (KERC) on Thursday extended the deadline for the electricity supply companies (Escoms) to file their tariff revision applications till December 13.

The extension was granted following requests from Escoms.

As per the Electricity Act, 2003 and KERC terms and conditions, distribution licensees (Discoms) are required to file their expected revenue for consumptions (ERC) for the year 2014-15 within November 30.

The Commission, on October 30, had directed the escoms to file their applications.

However, the escoms on November 26 and 29 had requested the KERC to extended the deadline, citing reasons like delay in reconcilation of inter-escom energy sales, non-finalisation of half-yearly accounts for the year 2013-2014, non-finalisation of capital investment programme and costs for 2014-2015 and other reasons for extension.

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India working on build greater energy links in the neighborhood...

 

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India is working on setting up an energy-efficient power transmission (HDVC) line to Nepal and Bhutan as part of its energy security plans, external affairs minister Salman Khurshid said on Thursday.


India’s long-term plans include a grid linking South-east Asian nations with those of South Asia, including Pakistan and Afghanistan, the minister said while outlining ambitious schemes to build greater energy links in India’s neighbourhood.


Khurshid was speaking at a two-day World Energy Policy Summit that began in New Delhi on Thursday.


Among the projects on the anvil to address India’s energy deficit is the US-backed $9 billion Turkmenistan-Afghanistan-Pakistan-India pipeline, Khurshid said. It is expected to be completed by 2017-18.


“We are also, in a very, very nascent way, beginning to link our electricity grid to Bangladesh through the HVDC (high voltage direct current) power transmission line that we have inaugurated recently,” he said referring to 500 megawatt transmission line linking India’s eastern electrical grid to the western grid of Bangladesh that was inaugurated in October.


The Asian Development Bank, which helped finance the $199 million interconnection facilities in Bangladesh with a $112 million loan, described it as “a key step forward in regional power sharing and cooperation.”


India is also working “on the India-Nepal HVDC link which will perhaps begin with providing power to Nepal in order, ultimately, to be able to take power (import) from Nepal. Again, same sort of thing is what we hope we will be able to do with Bhutan. Nepal and Bhutan will become a major source of supply of power to India,” Khurshid said.


“Of course, we could have a grid that goes into Asean (Association of Southeast Asian Nations). We have road connectivity with Asean, but we would also have hopefully power connectivity with Asean, Myanmar, Bangladesh, India, Nepal and into Pakistan and perhaps into Afghanistan as well,” Khurshid said. Asean is made up of Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.


According to the 2011 Census, only 67.2% Indian households had access to electricity. Highlighting the unmet energy needs of a large segment of the population, the International Energy Agency’s October World Energy Outlook said India is set to overtake China in the 2020s as the principal source of growth in global energy demand.


India’s Power Grid Corp., in its 2012-13 annual report, said it was preparing a feasibility study for connecting South Asia through a grid—a plan first mooted in the late 1990s. South Asian neighbours India and Pakistan have been discussing the sale of power. And as part of its reconstruction efforts in Afghanistan, India has constructed a 220kV transmission line from Pul-e-Khumri to Kabul and a 220/110/20 kV sub-station at Chimtala to bring additional power from the northern grid to Kabul.


India, Pakistan and Afghanistan are part of the eight-member South Asian Association for Regional Cooperation which also includes Nepal, Bhutan, Bangladesh, Sri Lanka and the Maldives. Towards the east, India has been trying to build closer links including connectivity with the high-growth Asean countries as a means to develop its insurgency-riven northeastern region. India and the Asean have set a bilateral trade target of $100 billion by 2015.

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JSW Energy, Tatas eye GMR's 600 MW Emco plant in Maharashtra...

 

JSW Energy, Tatas eye GMR's 600 MW Emco plant in Maharashtra...

Power utilities such as JSW Energy and Tata Power are known to be evaluating GMR’s Emco power plant in Maharashtra for a possible buyout.

In 2009, GMR had bought the 600-Mw power plant from Emco, while the plant was being constructed. Now, the plant is operational and GMR is known to be expecting a premium on the purchase.

Responding to questionnaires on the development, GMR said it didn’t comment on speculation. “We maintain we are evaluating various options to create shareholder value,” Tata Power said in a response.

Earlier, JSW Energy had been talking about purchasing power projects and had actively looked at the assets of Lanco Infratech. “As a policy, we don’t comment on market speculations and rumours,” JSW Energy said in response to the questionnaire.

Some of the interested parties insist they won’t pay a heavy premium for the project. “It is a good asset and has coal supply tied up, but some of the power under power purchase agreements (PPA) don’t have a very attractive rate. So, if a premium is paid, there isn’t much money to be made,” said one of the bidders evaluating the project.

Apart from Indian players, international utilities such as Malaysian giant Genting and Singapore’s Sembcorp, which already have interests in India, are known to be eyeing the project.

“The sale of power projects have started progressing now,” said an analyst.

The Emco power project has already signed fuel supply agreements with South Eastern Coalfields, a subsidiary of Coal India. It also has all its power tied up in long-term agreements. The project is selling 200 Mw of power to Maharashtra State Electricity Distribution Company at Rs 2.9 a unit. However, power purchase agreements for the remaining power have a much higher rate. It has a 15-year agreement to sell 200 Mw to Dadra Nagar Haveli at Rs 4.6 a unit, as well as a seven-year agreement with Tamil Nadu Electricity Board to sell power at Rs 4.9 a unit.

While the first unit of the project went on stream in March this year, the second went on stream in August. Emco Energy is the GMR group’s first coal-based power plant to commence commercial generation. It has as much as 2,136 Mw of operational capacity. The company is also setting up additional capacity of 5,038 Mw.

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PowerMin's meeting today to discuss amendments to tariff policy...

 

PowerMin's meeting today to discuss amendments to tariff policy...

The power ministry, which has released draft amendments to the National Tariff Policy to further promote competition and reduction in distribution losses, would be meeting on Friday to discuss the amendments with key stakeholders.

The ministry has proposed competitive bidding process and power purchase agreements for the renewable energy sector, stable renewable power obligation regime to promote renewable energy sources, cuts in cross subsidies and encouragement of open access. Further, the ministry has proposed that consumers below the poverty line with a consumption of 30 units per month would continue to receive special support through cross subsidy without re-examination of the provision after five years.

The ministry has proposed a road map of reduction of cross subsidies to be specified by state electricity regulatory commissions (SERCs) in line with the spirit of the Electricity Act, 2003. SERCs may calculate cross subsidy surcharge based on the estimation that the distribution company will avoid purchase of the quantum of power for which open access has been sought. This can be adopted in areas where there are no power shortages. For the hydro sector, the ministry has proposed that the graded reduction in percentage of allowable merchant sales will be limited to delays attributable to the developer. This is in view of the time and cost over runs involved due to the reasons which are beyond the control of the developers.

R V Shahi,  former power secretary told Business Standard: “Since the last seven years, the tariff policy has been implemented. However, based on that experience, a review is needed in respect of cross subsidy surcharge which has been responsible to some extent in delaying the open access for power supply, hydro power tariff, tariff for renewable sources of energy and costly power purchases by distribution companies.”

Ajoy Mehta, managing director, Maharashtra Electricity Distribution Company (MahaVitaran), said most distribution companies are in financial stress which is slowing the growth of the power sector in the country. “The proposed amendments are welcome as they should provide the right environment for growth with financial stability.”

Jayant Deo, founder member, Maharashtra Electricity Regulatory Commission, said the proposed amendments will help in the development of a competitive power market. The formula for arriving at cross subsidy surcharge and tariff deregulation of open access consumer category would help consumers at large.

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Empee Sugars to sell its 10 MW biomass-based power plant in Tamil Nadu...

 

Empee Sugars to sell its 10 MW biomass-based power plant in Tamil Nadu...Empee Sugars has decided to sell its 10 MW biomass-based power plant in Tamil Nadu.

The plant located on a 14-acre land parcel in Pudukottai district has power purchase agreements for third party sale to industries.

According to the senior officials, the company hopes to concentrate on larger power plants it operates under the power division and there are plans for expansion in the power sector.

So, it has decided to exit the relatively small scale biomass project.

Other units

Empee Sugars operates a 50-MW coal-based unit in Tirunelveli in South Tamil Nadu, originally set up as a cogeneration unit of a sugarcane complex, and a 20-MW cogeneration plant in Nayudupet, Andhra Pradesh.

It also has a licence for another coal-based power plant in Tamil Nadu for which environment clearances are awaited, the official said.

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Another milestone in Gujarat's power sector; to launch India's First Smart Grid at Naroda & Deesa...

 

Another milestone in Gujarat's power sector; to launch India's First Smart Grid at Naroda & Deesa...

Like cell-phone users, people may be able to pick a plan for electricity consumption. The Uttar Gujarat Vij Company Ltd (UGVCL) will roll out India's first modernized electrical grid, or the smart grid, in Naroda and Deesa in north Gujarat by April 2014.

The pilot project will study consumer behaviour of electricity usage and propose a tariff structure based on usage and load on the power utility. Eventually, it will be rolled out across the state to disincentivize power consumption during peak hours.

New meters embedded with SIM cards will be installed in 20,000 residential and industrial units in Naroda to monitor data every 15 minutes on how a particular consumer uses power.

The smart grid was first implemented in the US for efficient transmission of electricity. Like the internet, the smart grid consists of controls, computers, automation, and new technologies and equipment working in unison. These technologies work with the grid to respond digitally to the consumer's dynamic electricity demand.

"The smart grid will work on the 'time of day' concept, based on which tariffs will be set. For example if the demand is at peak during 7pm to 11pm, the tariffs will be higher for that period," said Nityanand Srivastava, and managing director, UGVCL on the sidelines of the 6th India Energy Conclave organized by CII.

"This will help us curb power theft substantially," said energy minister Saurabh Patel. In a 50-50 partnership, UGVCL, along with the Central government, will invest Rs 48 crore in the project to set up new infrastructure, meters, servers and analytic systems for smart grid.

The process of inviting tenders for the project will begin on December 17 and after a month of evaluation the companies will be selected. "Once we get data, we will submit a proposal for tariffs based on the data," added Srivastava.

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