Arunachal Government imposes load restrictions on power supply...

 

In view of the onset of the lean hydro season and subsequent reduction in the state's power allocation, the Arunachal Pradesh government has imposed a load restriction on power supply as per allocation with immediate effect.

"As power availability and demand vary from time to time, the notice revision by various generating stations, the quantum of power allocated, duration of imposition and area to be covered may vary with time," an official order said here on Saturday.

All divisions and districts should strictly abide by all directives, the order issued by the State Level Distribution Centre (SLDC) added.

In the event of non-compliance by any division, the government has empowered the SLDC as per regulations of the Arunachal Pradesh State Electricity Regulatory Commission (APSERC) and the Central Electricity Regulatory Commission (CERC) to disconnect the entire division or district from the grid sub-station to protect the stability of the system, the order said.

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Update from SECI: JNNSM Phase II Batch I- Extension of Last date of Submission of Bids...

 

 

 

 

In view of various requests/representations received by SECI/MNRE on the above mentioned subject, it is hereby notified that the last date of submission of bids in response to the RfS No. SECI/JNNSM/SPV/P-2/B-1/RfS/102013 dated 28th October, 2013, has been extended from 28th December, 2013 to 20th January, 2014 (Upto 12.30 Hrs).

Amendments and clarifications related to the VGF Securitization Agreement shall be uplaoded shortly.

Source:SECI

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Government to auction four Odisha coal blocks...

 

The government has decided to auction four coal blocks in the Talcher region of Odisha, having a total reserve of 2.33 billion tonne, or about five times that of Coal India’s output last year, to power utilities.

The auction would be done as per the ‘Auction by Competitive Bidding of Coal Mines Rules 2012’. Accordingly, companies which have been awarded power projects through competitive bidding for tariff, would be allowed to participate.

“The government proposes to allocate coal blocks to companies awarded power project on the basis of competitive bids for tariffs. Accordingly, applications are invited from the eligible government companies and corporations through respective state governments as per rules of the Auction by Competitive Bidding of Coal Mines Rules, 2012,” a letter of coal ministry issued on Friday said.

The blocks notified for auction are Karadabahal, Brahmanbil and Phulajhari (east and west) spread over an aggregate area of 19 sq km.

This is the second round of coal blocks being put up for auction ever since the government notified the auction in February 2012.

Last December, the coal ministry had put up the first list of 17 blocks following which mines were allocated to companies like Orissa Mineral Development Corp and also states of Chhattisgarh and Madhya Pradesh.

The ministry is also in the process of allocating blocks to Maharashtra, Haryana, Uttar Pradesh, Tamil Nadu, Punjab, Karnataka, West Bengal, Gujarat, Andhra Pradesh and Jammu & Union Kashmir.

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Government working on policy to fast-track clearances for the power projects...

 

The power and environment ministries are working together on a policy to fast-track project clearances by which clearances would be considered as deemed in case central and state governments failed to clear them within a specific deadline.

"The power and environment ministries are working together for a policy to allow clearances within a time period. A lot of time is now being consumed on environment and forestry clearances at state and centre levels for power projects. Now, if you won't get those clearances within a timeline, the clearances would be considered as deemed and the company can start its work, Power Minister Jyotiraditya Scindia said here Saturday at an interactive session during the 86th Annual General Meeting of the Federation of Indian Chambers of Commerce and Industry.

The Cabinet Committee on Investments (CCI) has put in motion a process to bring 255 stalled projects involving an investment of Rs 10 lakh crore for speedy clearance. On Friday it queried the power ministry regarding land acquisition for ultra mega power projects (UMPP).

Scindia also said the power ministry will circulate two cabinet notes within a month proposing changes in the Tariff Policy and Electricity Act 2003.

There would be two separate cabinet notes and I am speaking to various stakeholders and it is set to come up within a month's time," Scindia said.

The various stakeholders in this case are the Central Electricity Authority (CEA), Central Electricity Regulatory Commission (CERC), principal secretaries of all state governments and the power generation, transmission and distribution utilities. -

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Reforms, rate hikes to drive power sector...

 

Power is a vital input for industrialisation and economic growth. For emerging markets like India with high growth potential, quality power in adequate quantity is crucial for achieving their economic and social targets. With an installed capacity of 230 GW, India’s power sector is the fifth largest in the world.

But our per capita consumption is only 770 kwh against the global average of 2,600 kwh and the European Union average of 6,200 kwh. It is clear, therefore, that the potential for growth is substantial. India needs to double its generation capacity over the next 10 years to meet this demand.

Coal-fired plants account for 57 per cent of our installed capacity while 19 per cent comes from hydro power. Renewable power and natural gas account for 12 per cent and 9 per cent, respectively. Excessive dependence on coal-fired plants is posing problems for the sector plagued by perennial coal shortages and policy constraints.

Even though impressive capacity has been installed during the past three years, much of the capacity is lying unutilised due to shortage of coal and pricing issues regarding imported coal. The power equipment manufacturing segment is constrained by slowdown in capacity addition and competition from international players. Revenues and profitability of the sector have been impacted by these constraints.

Now, some silver linings are emerging from the dark clouds, which have been hovering over the industry for quite some time. Power tariff hike in many states, bailout packages for SEBs, permission for imported coal price pass-through for PPP projects and CCI clearance of projects worth Rs 1 lakh crore are clear positives for the industry. Long-term investors can slowly start accumulating some promising stocks in the industry. Investors should consider balance sheet risks while looking to buy stocks, which may appear to be attractively valued.

Companies which face constraints relating to issues like dependence on imported coal (Adani Power), non-availability of gas due to issues relating to KG D6 basin and fixed power tariff etc (Reliance Power) are likely to find the going tough for some more time. Tata Power looks promising. NTPC with 35,000 mw capacity and massive capacity expansion plans is attractively priced now. PowerGrid also holds a lot of promise. With political stability after elections, reforms in the power sector are inevitable. Therefore, it would be realistic to be optimistic about the sector, going forward.

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Government moves RBI to bail out lenders of Dabhol Gas based power plant...

 

Coming to the rescue of the lenders of Ratnagiri Gas and Power Projects Ltd (RGPPL), including SBI and ICICI Bank, and PSU promoters NTPC Ltd and GAIL India Ltd, which have huge exposure in the beleaguered Dabhol project, the finance ministry has asked the Reserve Bank of India (RBI) for a one-time relaxation to save the company and its Rs. 13,000-crore  assets from being classified as a non-performing asset (NPA).

“At a recent meeting chaired by finance secretary Arvind Mayaram it was directed that the department of financial services (DFS) will take up the matter for relaxation of asset classification norms to RGPPL with RBI, with a request for extended forbearance till March 31 2014 as a one-time exception, considering the circumstances and the exposure of PSUs, including PSU banks,” a senior government official told Hindustan Times.

The move would not only provide RGPC a breather, but also give some time to the lenders who would otherwise have had to show fresh slippage in their books.

RGPPL is the company promo­ted by NTPC and GAIL India’s largest gas-based power plant, the 1967 mega watt Dabhol Power project that is currently stranded due to lack of availability of domestic natural gas.

The lenders and PSU promoters of RGPPL have been sounding the alarm over Dabhol’s balance sheets. NTPC, SBI and ICICI Bank had in separate communications to the government warned that the project is on the verge of becoming an NPA, which would have a backlash on its promoters.

The company has a debt exposure of Rs. 8,500 crore, apart from equity ownership by PSU and banks.

“The viability of the plant is in question, and it was clearly pointed out in the meeting that RGPPL has not been able to repay debt to lenders from September 2013, and unless adequate affordable domestic gas is ensured and the beneficiaries commence paying corresponding fixed cost, the plant will be declared an NPA,” the official said.

The meeting also decided that the petroleum ministry would move a note seeking directions from the empowered group of ministers (EGoM), about gas allocation and implementation of priority to RGPPL along with fertiliser units as per its original decision.

Further, Mayaram will write to chief secretary of Maharashtra, indicating that the state government is required to pay outstanding dues to RGPPL for the period when power was supplied to it.

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NTPC seeks land for ash pond, rail corridor for 1600 MW super thermal plant at Gajamara in Odisha...

 

NTPC Ltd, the country's biggest thermal power producer, has sought 745.15 acres of land for ash dyke, reservoir area, ash pipe line corridor and railway line corridor for its 1600 Mw super thermal power project coming up at Gajamara in Dhenkanal district.

The power generating utility wants 437.12 acres for ash dyke and 11o.61 acres for reservoir area.

Similarly, it has put the requirement for its ash pipe line corridor and railway line corridor at 56.3 acres and 138.12 acres respectively.

The state-owned Investment Promotion & Investment Corporation of Odisha Ltd (Ipicol) has assessed the land requirement at 538.34 acres against NTPC's demand of 745.15 acres.

Ipicol has recommended to the energy department to accord administrative approval to NTPC for the land.

Notification under Section 4 (1) of Land Acquisition Act has already been issued for acquisition of private land for the Gajamara project. NTPC has urged the state government to expedite issue of 6 (1) notification. The Gajamara project needs 1013 acres of land.Of the total land needed for the project, 795.85 acres are privately owned. The land is to be acquired in four affected villages- Talabarkote (440.23 acres), Patra bhag (194.61 acres), Manipur (99.46 acres) and Siaria (61.55 acres). NTPC has to fork out Rs 152.54 crore for acquisition of the private land.

NTPC will set up a power engineering institute at Dhenkanal that is linked to its Gajamara plant.

The utility major is setting up another super thermal power plant at Darlipalli in western Odisha's Sundargarh district. This plant is expected to be commissioned by 2018.

The Darlipalli super thermal power project will draw water from the Hirakud reservoir in the Mahanadi river.

NTPC has secured coal linkage for this project in the form of Dulanga coal block with mine capacity of seven million tonnes per annum (mtpa) under command area of Mahanadi Coalfields Ltd (MCL) and Pakri Barwadih block in Bihar's Hazaribagh district with 12.5 million tonne per annum (mtpa).

Source: Business Standard

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MERC against competitive bidding in wind power purchase by state Discoms...

 

Even as MSEDCL is facing allegations of irregularities in power purchase, Maharashtra Electricity Regulatory Commission (MERC) has turned down a plea in which MSEDCL was seeking transparency.

MSEDCL wanted to purchase wind power through competitive bidding, but the Commission wants MSEDCL to buy it at rates fixed by it. MSEDCL filed a petition in MERC seeking a review. The Commission agreed that it was a valid point, but referred the matter to a committee headed by principal secretary (energy), with representatives of wind power companies, Maharashtra Energy Development Agency (MEDA) and consumers representatives. Incidentally, principal secretary (energy) Ajoy Mehta is also managing director of MSEDCL.

The committee was constituted on October 1 to study wind energy situation in the state and was asked to submit its report in three months. The Commission has refused to grant interim relief to MSEDCL in the meantime.

Mahagenco and MSEDCL had accused the Commission of favouring wind power producers. They charged that the rates of wind power approved by it are the highest in the country, but the rates of solar power, whose sole generator is Mahagenco, are one of the lowest. However, the Indian Wind Power Association (IWPA) submitted data to MERC proving MSEDCL wrong.

MERC's rate for wind power ranges from Rs 4.93 to Rs 5.67 per unit, which is far higher than thermal power rates (except new units of Mahagenco). MSEDCL has resolutely opposed purchase of wind power on the grounds that it will burden consumers, but MERC has not refused to buy this agreement. Now, MSEDCL wants competition to lower the rates.

During the hearing, MSEDCL submitted that the rates of solar power have come down due to competition, and the same would happen in wind also. It pointed out that Section 63 of the Electricity Act, 2003, did not make any segregation in purchase of renewable energy and non-renewable energy.

While agreeing that wind power was costly, MERC told MSEDCL that it had to meet renewable energy purchase obligation (RPO) target set by central government. The company had failed to meet its target in 2012-13 even though the entire contracted capacity of 2,350MW had been commissioned.

MERC has also turned down MSEDCL's plea for a uniform wind power tariff in the state. The Commission has divided the state into two zones for calculating the rates. It is Rs 4.93 per unit in one zone and Rs 5.67 per unit in the other. The Commission said in the order that zoning was done after taking views of all concerned parties and as per norms of renewable energy tariff regulations. Therefore, any revision was not desirable, it said.

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ReNew Power scouts for fresh investors to boost renewable energy installations...

 

ReNew Power Ventures, an independent renewable energy power producer in the country, is scouting for fresh investors, its founder said."We are looking for high quality investors who have a good understanding of the renewable energy sector," Sumant Sinha, founder chairman and CEO at Re-New Power.

Currently US investment bank Goldman Sachs owns the company, which has an installed wind power capacity of 375 mw.

"Our revenues consolidate into the parent account of Goldman Sachs and they directly monitor our growth," said Sinha, who is a former chief operating officer at Suzlon Energy, one of the largest wind turbine manufacturers in the world. Goldman Sachs has invested about $320 million (approx Rs 1,980 crore in current exchange rate) in ReNew Power in two phases, making it the largest investment so far in Indian renewable energy generation industry.

"Their investment in the initial stage helped us adopt stringent policies and put in place financial parameters," Sinha said.

Goldman invested $250 million in the first phase and announced another $135 million in the second phase. ReNew Power, which has wind power projects totalling 300 mw in the pipeline for next year, has so far spent the whole first round investment and half of the second round of funding.

Sinha said if the company finds another private equity investor, then it may request Goldman not to release the rest of the money.

"We are in talks with private equity investors, both domestic and foreign ones, and if we get a good deal, we might ask Goldman to hold the balance amount of their investment," he said.

He also said the company hopes to achieve a clean energy portfolio of 500 mw by March 2014. For this, it is planning to look beyond wind and bet on solar as well. Apart from participating in the upcoming second phase of the National Solar Mission, ReNew Power might also consider acquiring small independent solar energy players.

"Solar, especially the off-grid segment is quite scattered and there are no big names in the sector," Sinha said. "We might look for some acquisitions in the solar space."

He said that solar was supposed to replace diesel in the industrial user segment. "Better policy guidance and consolidation in the sector could help solar achieve grid parity in the next 2-3 years," he added. India has installed wind capacity of 19,993 mw and 2,079 mw solar energy. Price of wind power is at par with conventional power at Rs 5-5.5 per mw whereas solar power prices linger around Rs 8-9.

Sinha said that ReNew Power, founded in 2011, plans to take part in government initiatives and do EPC (engineering, procurement and construction) to support their independent power projects.

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West Bengal Tech Committee approves WBGEDCL's proposal for solar park development in Boudh District...

 

The State Technical Committee (STC) has approved the proposal of the West Bengal Green Energy Development Corporation Limited (WBGEDCL) for establishment of a solar power park at Manamunda Industrial Estate in Boudh district.

The first meeting of the STC held recently discussed the technical details of the project which proposed to generate about 50 MW of solar power with an investment of ` 400 crore.

The detailed project report is under preparation by WAPCOs, a Government of India undertaking providing consultancy services in power and infrastructure, sources in the Energy Department said.The committee also approved GEDCOL proposal of bidding for 20 MW solar power under viability gap funding (VGF) scheme of the Solar Energy Corporation of India (SECI).

The Ministry of New and Renewable Energy (MNRE) has launched VGF model for the second phase of Jawaharlal Nehru National Solar Mission (JNNSM).

SECI has invited tenders for allocation of 750 MW solar power projects under phase-II of JNNSM. Developers will have to specify the funds that they would be seeking, and on the basis of lowest bids, the winners will be selected.

The Centre is offering about `1875 crore in grants and will be providing subsidy to the tune of 30 per cent of the project cost so that projects meet milestones.

According to revised rules of MNRE, a total of 350 MW of projects will be built with the domestic content requirement (DCR) scheme. At the time of bidding, the project will have to opt for DCS or open categories and separate bids have to be submitted for both the cases.

Those opting for DCR will have to source domestically manufactured solar cells and panels for their projects. It is believed that the tariff offered for the DCR projects may be slightly higher than open projects.

Under the viability gap funding scheme, 50 per cent of the amount will be paid on successful commissioning of the projects, and the remaining amount is to be disbursed in 10 percent increments over a period of five years, if generation targets are met.

The STC also discussed the 105-MW solar power project proposal of Nilapuspa Energy Pvt Ltd ((NEPL) and 5-MW project proposal of Keshari Urja Private Limited (KUPL). The committee asked both the developers to submit their proposals afresh as they lacked clarity.

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