Monthly Archives: December 2011

Coal rates revision set to impactcement, steel, aluminium sectors

Contrary to Coal India’s initial commitment, the gross calorific value (GCV)-based prices are expected to boost the Rs 50,000-crore consolidated balance-sheet of the coal major by an estimated 12.5 per cent, or a little over Rs 6,000 crore annually, according to sources. The company previously said that the switchover to the new system should be “revenue-neutral”.

Meanwhile, the Union Government has reportedly notified the new GCV-based cess and royalty formula to be applicable to States. While details of the same are not available, consumer groups indicate that this may further impact the landed cost of coal to all consumers.

Consumers hit

While the price-rationalisation may have minimal impact on the regulated sectors, largely power, non-regulated sectors such as cement, iron and steel, aluminium, paper and many others should feel the pinch.

Official confirmation on the same is not available. Though officially notified, the new prices — scheduled to come into effect from midnight on Saturday — have yet to be released at the CIL Web site. Major consumer associations were, however, given access to new price formula on Saturday evening.

Initial estimates suggest that prices of C and D grade coal will experience a sharper rise under the new formula, expectedly boosting revenues of Central and Northern Coalfields.

On a rupee per calorie basis, Eastern Coalfields — which suffers from one of the lowest man-to-coal ratios — is offered a 6 per cent mark-up over other miners to ensure its revenues are not impacted.

The prices of low-ash A and B grade coal which were already linked to international prices will be least affected. The E and F grades, mostly consumed by power stations, will experience some upward movement.

Dual pricing

According to sources, the new pricing formula continued with the practice of dual pricing for regulated and non regulated sectors so as to ensure that the power sector is least affected. While CIL sources expect that the dual pricing, coupled with minimum movement in the E and F sectors, to have minimum impact on cost of coal for power sector, there are concerns that the old-generation power stations linked to good quality coal may witness a rise in fuel cost.

Source: BusinessLine

TERI launches Technology Resource Centre scheme in Bihar

In order to bridge the existing gap between implementation and sustenance of rural energy projects, The Energy and Resources Institute (TERI) has launched a new institution in Bihar, called Technology Resource Centre (TRC) under its Lighting a Billion Lives (LaBL) initiative.

The LaBL initiative by TERI has been touching hearts and expanding, thereby empowering the rural India. TRC is a local level enterprise which provides after-sales service support to LaBL solar charging stations and is also authorised to market and sell LaBL solar products in the covered territory.

Apart from providing next door and reliable after-sales support, the TRC network also aids in imparting training and local capacity building for the execution and expansion of other rural solar energy access projects. The TRC personnel are provided training on not only LaBL technical servicing, but also on broader aspects of solar energy and technology application. A network of incubation centers such as the TRC would not only ensure quick adaptation of newer technologies in rural areas but also its long term sustenance and usage.

Speaking on the occasion, Mr Bijendra Prasad Yadav, Minister, Department of Energy, Government of Bihar said, “The overall aim of the programme is to achieve the country’s long term energy security and its ecologically sustainable growth. These programmes also enable an environment solar technology penetration in the country.”

The LaBL TRC programme provides an opportunity to become a certified and authorised LaBL- TRC that can earn regular income by providing after-sales service support and quality assurance to LaBL solar charging stations. LaBL TRCs personnel would regularly visits to LaBL solar charging stations for operation and maintenance besides providing repair services for solar lanterns using tools and spare parts.

The programme would also support charging station entrepreneurs by answering queries and providing Best-Practices, and would become a sales channel for quality solar products by active local marketing.

One of the key features of the programme is to get connected to the solar energy industry network through TERI’s partners; ensuring back-end support from leading companies for additional livelihood opportunities.



TNERC chief Kabilan calls for further reforms in power sector in TN

 The outgoing chairperson of the Tamil Nadu Electricity Regulatory Commission (TNERC) S. Kabilan has strongly called for pursuing the next course of reforms in the State power sector.

“The separation of the function of generation from the Tamil Nadu Generation and Distribution Corporation (TANGEDCO) needs to be pursued vigorously. This cannot brook any further delay,” says Mr. Kabilan, who will be demitting office on Monday after a five-year-long tenure.

Subsequent to the bifurcation, the entity has to be split into different regional distribution companies, on the lines of what has been done in Andhra Pradesh and Karnataka. All the entities can be government-owned and they can function within the broad parameters of policies set by the State Government.

[Effective November 1, 2010, the monolithic Tamil Nadu Electricity Board (TNEB) was divided into the TANGEDCO and the Tamil Nadu Transmission Corporation (TANTRANSCO) with TNEB Limited as the holding company].

Improvement in operational efficiency and effective redress of grievances of consumers are the two major reasons cited by him to advocate further reforms in the sector.

Pointing out that there are over 2.2 crore consumers all over the State, he wonders how it is possible for one chairman to attend to the problems of all. As the basic character of the organisation such as TANGEDCO is service orientation, it should remain close to people. This is not possible unless there are regional distribution companies, which are to be managed by autonomous boards of directors.

Referring to the experiences of Andhra Pradesh and Karnataka, Mr. Kabilan, who was Assam Chief Secretary before becoming the TNERC chairperson in January 2007, says that the presence of several distribution companies in the two southern States has led to “healthy competition” among themselves, eventually resulting in cost reduction.

In the context of the present financial crisis of the TANGEDCO, the next course of reforms has assumed greater relevance as the two principal reasons – improvement in operational efficiency and effective redress of grievances of consumers – will bring about solutions to the basic problem.

It is not that the TANGEDCO alone is in crisis. There are many other States where the government-run power utilities are in the red. Already, the Union Planning Commission has constituted a task force comprising State Power Secretaries to recommend measures for making the financial condition of the State power utilities viable.

The Appellate Tribunal for Electricity has held that in the event of delay in filing annual revenue requirement by the State power utilities, the State Electricity Regulatory Commissions can suo motu initiate proceedings for tariff determinations. Besides, financial institutions are insisting on annual revision of tariff. So, the current environment is conducive for financial strengthening of the TANGEDCO, Mr. Kabilan adds.

He recalls that the Commission, in October 2010, conveyed to the State Government a statutory advice of forming a separate utility for generation and creating regional distribution companies.

On the contentious issue of metering and pricing of agricultural supply, Mr. Kabilan says that it requires broad political consensus. “There are hard realities on the ground. What has been enjoyed over the years cannot be withdrawn suddenly,” he points out, referring to the scheme of free power supply.

All along, the Commission had never quantified the cost of agricultural supply. To correct this, an attempt was made in the Commission’s tariff order of July 2010. The next tariff order will see a significant improvement. “We will eventually move towards full neutralisation of the cost of agricultural supply,” he hopes.

Terming his tenure as satisfying, he says that the activities of the Commission had increased in the last five years. The TNERC has issued over 360 orders on a range of issues.

“Since the introduction of regulation and control measures on power supply in November 2008, there is a surge of petitions filed with the Commission. This only shows that people have faith in the impartiality of orders of the TNERC.” he says.

Source: The Hindu

PFC’s retail bond sale oversubscribed

Power Finance Corp ( PFC) has received bids for nearly nine times its original base amount offer for the sale of retail bonds, signalling sustained demand for debt from state-owned firms.

The financial institution engaged in power sector funding, which launched its issue on Friday, has received total bids of 89 billion rupees ($1.68 billion), two sources involved with the issue said. The issue is set to close on Jan. 16.

It has received nearly 12 times more for its qualified institutional investor category and about eight times the size for the high net worth individual category, the sources said.

On Thursday, the National Highways Authority of India’s (NHAI) first sale of retail bonds received bids for nearly five times the base amount.

India has allowed four state-owned firms to raise 300 billion rupees via tax-free bonds in the current financial year that began in April.

National Highways Authority of India (NHAI) and Indian Railway Finance Corp (IRFC) can each raise 100 billion rupees, while Housing and Urban Development Corp. (HUDCO) and Power Finance Corp can each raise 50 billion rupees.

MSEDCL to install more Any Time Payment machines

MSEDCL has decided to install all time payment (ATP) machines in several cities of the state to enable power consumers to pay bill round the clock. These machines will be installed by private operators, who will get transaction charges per bill.  The biggest problem with this project is lack of volume. A few years ago, two machines were installed in Congress Nagar division. However, they closed down due to lack of adequate response. If an operator has to generate profit from a machine then minimum 6,000 bills must be paid through this machine. Torrent Power is however successfully running such machines in Bhiwandi.An MSEDCL official said that even though many people had started paying online, the number of people wishing to pay bills after office hours was increasing. “All of them do not have net connections. Some are wary of using credit or debit cards for paying bills. So we expect good response to this venture. Moreover, earlier there were problems with integration with MSEDCL software. This time there will be no such problems.”

The official added that MSEDCL has however given priority to operators whose machines have facility to collect bills through swapping of credit and debit cards.

The tender was placed for 168 ATP machines and in January all revenue headquarters and big cities are expected to be covered. The official said that the machine will be like an ATM with instructions displayed on the screen in English. “The operator will deploy his staff to assist people in paying the bills. The machine will collect bills through cash, cheque and demand draft (DD) and generate a printed receipt. It will also generate data backup and necessary management information system (MIS) as per MSEDCL’s requirement.”

The operator will have to deposit the collected cash/cheque/DD in the designated bank account and the MIS data in the office of MSEDCL on next working day by 11am.

The final location of the ATP machine will be jointly decided by zonal chief engineer and bidders keeping in mind the target customers for this payment mode. However, the cities where the project will be implemented have been more or less finalized.

Source- Times of India


Power-starved JK is goldmine for NHPC

Srinagar, Dec 30: While the political leadership in Jammu and Kashmir goes around the town trumpeting about the state having potential of generating around 20,000 MW of energy from its water resources, the real beneficiary of this goldmine is not the power-starved state but the National Hydro Electric Power Corporation (NHPC) – a Government of India subsidiary.
Believe it! Out of its entire generation capacity of 5295 MW of energy from 14 power stations spread across the country, NHPC is drawing the highest booty of 1680 MW of electricity (32 percent) from Jammu and Kashmir with rest of the 27 states contributing just 3615 MW (68 percent).
Further, out of its 14 power stations, NHPC unilaterally owns four major stations in Jammu and Kashmir – the highest number of power stations owned by the Corporation in any single state. The power projects owned by NHPC in J&K include Salal (I&II) with 690 MW generation capacity, Uri-I with 480 MW, Dulhasti with 390 MW and Sewa-II with 120 MW.
And, what J&K is getting from NHPC in return for the massive exploitation of its water resources – a meager 12 percent (210 MW) energy as royalty – with Corporation having negligible contribution under Corporate Social Responsibility (CSR) in the state as compared to other states.
Out of 3615 MW of power being generated by NHPC outside J&K, a big state like Madhya Pradesh contributes 1520 MW from two power stations, Himachal Pradesh contributes 1020 MW from three power stations, Sikkim gives 570 MW from two power stations, Uttarakhand 400 MW from two power stations and Manipur 105 MW from one power station.
Out of the 10 upcoming power stations of NHPC, the highest number of four stations with generation capacity of 660 MW would be again in Jammu & Kashmir. These include Uri-II (240 MW), Kishenganga (330 MW), Nimo Bazgo (45 MW) and Chutak (44 MW).
NHPC is again a major share-holder in the joint venture – Chenab Valley Power Projects Pvt Limited – in association with the Jammu and Kashmir Power Development Corporation (JKPDC) and Power Trading Corporation of India (PTCI) for executing three projects totaling 2,120 MW on the Chenab river basin. These include Bursar power project with 1020 MW capacity and Pakal Dul with 1000 MW.
As per its balance sheet, NHPC has earned net profit of Rs 2167 crore during the fiscal 2010-2011 from its cumulative power sales. Given the percentage of electricity being contributed by J&K to its kitty, the state’s share in the Corporation’s net profit amounts to around Rs 700.
Pertinently, NHPC Chairman and Managing Director A B L Srivastava made a startling revelation at a press conference in New Delhi on October 28 this year, when he stated that Jammu & Kashmir government has withdrawn the cess it used to levy on hydro power projects in the state. This, he said, added Rs 453 crore to the Corporation’s profit in the last six months. Srivastava’s disclosure was in contradiction to the claims of the state government that it had recovered around Rs 500 crore as water usage charges from NHPC.
Curiously, while NHPC has undertaken various community welfare schemes in areas like education, healthcare, heritage conservation, poverty eradication, vocational training, women’s welfare and sports activities in various states where its power projects are located, in J&K there is no visible presence of the Corporation in Corporate Social Responsibility (CSR) sector.
“What could be more ironic than the fact that most of the villages that fall in the catchment area of two NHPC power projects (Salal and Dulhasti) on Chenab basin are not only most underdeveloped but some of them are without electricity even after 60 years of independence,” laments Civil Society activist, Shakil Qalandar.
Paradoxically, against the generation of 1680 MW of hydro power in J&K, Himachal Pradesh has limited the NHPC’s power generation capacity to only 1020 MW in the State and is presently generating around 1000 MW on its own J&K’s power generation in the state sector is a paltry 750 MW.

Delhi – Tata too seeks public money on lines of BSES

In addition to the tariff, get ready to pay more for the functioning of your electricity supplier. Following the Delhi government’s decision to give a Rs 500-crore bailout to the Reliance discoms , BSES Rajdhani and BSES Yamuna, in the form of equity infusion, the third discom Tata Delhi Power is seeking similar equity infusion . Experts say the government’s decision to give in to pressure from BSES discoms amid threats of power cuts in the city could have more repercussions in days to come.

This is the first time north Delhi discom Tata Delhi Power has approached the government for financial aid despite getting the same tariff as their BSES counterparts and facing similar liquidity crisis. Highly-placed sources the Tata company was “unhappy” with the help extended to the BSES companies and felt that their financial mismanagement was being overlooked. Sources said while equity infusion was a healthy practice to shore up the company’s finances, the manner in which the BSES discoms made the government agree to it would be called “blackmail” .
The government while consenting to Rs 500-crore equity to the Reliance companies had stated that they were ready to infuse equity in Tata Delhi Power as well.

Tata Delhi Power CEO Sunil Wadhwa confirmed that they had written to the government asking for an equity infusion but insisted that it was completely independent of the equity being given to the Reliance discoms. “So far, we have been surviving on borrowings and if there is some equity infusion by both the promoters of Tata Delhi Power, it will ease the situation ,” he said. The discom has not decided on the amount of equity but top officials say total equity infusion would be between Rs 400 and Rs 500 crore shared by Tata Power and the Delhi government according to the 51%-49 % stake. “The amount will be decided in the next board meeting. So far, the banks have been supportive, but the loans are quite large compared to the equity and increasing share capital would be prudent,” said Wadhwa.

3815 MW Grid Connected Renewable Capacity Added During 2011

High lights of the year 2011

  • The Ministry of New and Renewable Energy has intensified the deployment of various renewable energy technologies in the country for grid connected power generation and to improve energy access in rural areas.


  • In the recent competitive solar tariff bidding, the tariff quoted are 50% less than they were when the Jawaharlal Nehru National Solar Mission was launched just two years ago.


  • Renewable power is now being extensively propagated and used to provide energy access to the remote, inaccessible and difficult areas of the country.  During2011  around 965 villages have been covered with solar lights and 30 villages  have been covered with biomass gasifiers.


  • The Ministry has undertaken an intensive exercise during the year to review its programmes through various working groups set up for preparation of the 12th Plan.  The Ministry is envisaging a capacity addition of about 30,000 MW from renewable during the 12th Plan.


Major Achievements in 2011

The Year 2011 has seen a significant growth with a number of new initiatives in the renewable energy sector.  The wind energy sector picked up momentum again by adding over 2800 MW capacity resulting in grid-connected renewable power capacity crossed the 22,000 MW milestone which is about 11% of the total power generation capacity of the country. During the year grid-connected solar power plants crossing the 100 MW milestone.  In fact, SPV power plants of over 180 MW were set up in the country.  Over 1000 remote villages were electrified through renewable energy systems during this year. Over 50 MW off-grid installations were completed.  Another initiative of the Ministry was to launch a comprehensive project to popularize renewable energy systems in the Ladakh




Jawaharlal Nehru National Solar Mission 

The Mission aims at adding 20,000 MW solar power capacity in the country by 2022. Implementation of the Phase – I of the Mission started during the year. One of the target areas is  promotion of grid-connected solar power in a big way with the objective to bring cost of solar power generation to grid parity levels.  In this year 180 MW of grid-connected solar power projects have been commissioned in the country and this figure will cross 400 MW by the end of this financial year.  Projects totaling 350 MW have been allotted in batch-II of phase–I in December,2011 through competitive bidding. The  tariffquoted are amongst lowest tariffs anywhere in the World with an average Rs.8.77 per kWh and a bid lowest of Rs.7.49 per kWh.  If compared with the tariffs of over Rs.18 per kWh at the start of the Mission, this is a reduction of more than 50%.


The Ministry is giving special focus on research in solar energy. 36 R&D projects in solar thermal and photovoltaic technologies are under implementation.  A Centre for Solar Thermal Research has been set up at IIT Rajasthan, Jodhpur. Under R&D Projects sponsored to industries in public-private partnership mode, a 30 ton Solar air conditioning system using concentrating parabolic troughs and triple effect vapor absorption machine has been developed and demonstrated at Solar Energy Centre, MNRE.  It is a stand-alone system for day time use and can take care of intermittent clouds through small storage. The system once tested for its satisfactory performance, could be useful for offices and institutions working during day time when solar radiation is also available.  In another project, a State of the Art fully automatically tracked paraboloid dish of 90 sq. m. area has also been developed and demonstrated at Solar Energy Centre.  The dish is expected to find good opportunity in industries for processed heat applications as it is installed on a pillar and the space below dish could be utilized for other purposes.

 Grid Connected Renewable Power          

A capacity addition of 3815 MW have been achieved during 2011 from various renewable energy sources. This includes 2827 MW from wind, 310 MW from small hydro, 498 MW from biomass and 180 MW from solar energy. With this, the total installed capacity from renewable has reached 22,447 MW.


Wind power is the fastest growing renewable energy option today. A total capacity of 15,880 MW of wind power has been installed in the country. The progress during the current year has been very good. A capacity of around 2827 MW has been installed during the year.  It is expected that it will touch around 3500 MW uptoMarch,2012.  It would be a significant improvement as compared to figures of 1485, 1565 and 2350 MW  in 2008-09, 2009-10, 2010-11 respectively.  As per the recommendations of Working Group for 12th Plan, a target of 15,000 MW has been proposed for 12th Plan.


The Small hydro power programme in India is now by and large private investment driven. 24 States have announced their policies to invite private sector to set up SHP projects.  Since SHP projects have reasonably good economic viability, a number of financial institutions and banks are ready to finance these projects.  Accordingly, a major part of capacity addition and exploitation of SHP potential in future is expected from private sector projects.  With a capacity addition of 310 MW during 2011, the total installed capacity from SHP projects is 3210  MW. The Ministry is also focusing on  developingmicro hydel projects and watermills for electrification of remote areas. As per the recommendations of Working Group for 12th Plan, a target of 2,100 MW has been proposed for 12th Plan.


The Biomass Power and Bagasse Co-generation Programme is implemented with the main objective of promoting technologies for optimum use of country’s biomass resources for grid power generation and maximizing power generation from bagasseproduced in sugar mills.  During 2011 a capacity of 498 MW have been added.  The cumulative biomass power/bagasse cogeneration based power capacity has reached 3056 MW.    During the year the Ministry has continued the existing scheme with twomodification related to (a) Cogeneration projects through Build, Own, Operate, Transfer (BOOT) model in cooperative sugar mill (b) Boiler upgradation of cogeneration projects in cooperative sugar mills.   A target of 2600 MW is proposed for the 12th Plan period.


Off – Grid Renewable Energy applications

Energy Access: Renewable power is now being extensively propagated and used to provide energy access to the remote, inaccessible and difficult areas of the country. Lakhs of solar lights, solar water heating systems ,biogas plants have been installed in the country and so far over 9000 remote villages have been illuminated through solar photovoltaic systems and biomass gasifiers


Biomass Gasifier:  During the year, the Ministry has promoted multifaceted Biomass Gasifier with a view to utilize locally available surplus biomass resources such as rice husk, corn cab & stalks, arhar stalks, cotton stalks, small wood chips, other agro-residues available in surplus to meet the unmet demand of electricity for villages forlighting, water pumping and micro enterprises. In addition, it is promoting small biomassgasifier and combustion based power plants up to 2 MW capacities connected at the tail end of grid and captive power and thermal applications in rice mills and other industries. The Ministry is focusing on promoting rice husk based gasifier projects for decentralized and distributed power generation to provide unmet demand of electricity in villages.


During 2011, about 70 remote villages/hamlets of Bihar in District East Champaran, West Champaran, Muzaffarpur and Sitamarhi benefited by installation of about 25 rice husk based gasifier systems for distributed power generation based on a sustainable model. In addition, about 120 rice husk gasifier systems are under installation in various villages of Bihar. In addition, about 30 rice mills have installed rice husk gasifier systems retrofitted with existing diesel generating sets saving about 13 lakh liters of diesel annually and installation are underway in about 60 rice mills in different States. During the year, biomassgasifier based tail end grid connected projects of 1.20 MW in Gujarat and 500 kW in TamilNadu have been successfully installed.


Biogas : The National Biogas and Manure Management Programme of the Ministry mainly caters to setting up of family type biogas plants for meeting the cooking energy needs in rural areas of the country. During the year, about 45000 family type biogas plants have been installed. With this the cumulative installation of 4.44 million family type biogas plants, about 35.70% of the estimated potential has been realized so far. Apart from setting up family type biogas plants, the Ministry started a new initiative  for demonstration of Integrated Technology package in entrepreneurial mode on medium size mixed feed Biogas-Fertilizer Plants (BGFP) for generation, purification/enrichment, bottling and piped distribution of biogas. 21 such projects with aggregate capacity of 37016 cum/day have been sanctioned, out of which 2 BGFP projects have been commissioned. Under Biogas based Distributed/Grid Power Generation Programme (BPGP) so far 158 projects have been commissioned with a total installed capacity of about 2 MW.

Remote Village Electrification: The Ministry is implementing Remote Village Electrification Programme for providing financial support for lighting/basic electrification through various renewable sources, to those remote unelectrified census villages andunelectrified hamlets of electrified census villages where grid extension is found notfeasible by the State Governments and hence are not covered under the Rajiv GandhiGramin Vidyutikaran Yojna. The programme is implemented in States by the State notified implementing agencies. During the current year,   836 remote villages and hamlets have been completed.


Electrification/illumination of border Villages of Arunachal Pradesh:Implementation of the project for electrification/ illumination of border Villages of ArunachalPradesh further progressed and  out of 1058 villages, 726 villages have been illuminated / electrified. These include, 523 villages, where all households have been provided with solar home lighting systems and balance villages are given electricity from small / microhydel projects. Further, work in 107 new micro/ small hydro projects is in progress. The project is being monitored by a Steering committee and is targeted to be completed by March, 2012.

Ladakh Renewable Energy Initiative: The Ministry has initiated the implementation of  a Rs. 473 crore Special Project for  the Ladakh region for large scale use of renewable energy systems in order to provide energy access and minimize use of diesel in the most difficult part of the country and thereby open the doors for coverage of other similar areas.  Solar PV lights and solar water heating systems have been intensively promoted in the last one year and 28 villages and 78 institutions in the district stand covered through solar power plants with over 90% house hold coverage. 930 households are using solar water heaters even at sub-zero temperature for their hot water needs.  Over 1800 green houses have also been constructed for growing vegetables.


Human Resource Development:  In view of rapid growth of renewable energy sector in the country, Ministry has initiated the process to institutionalize the renewable energy education in the country to enable the existing educational institutions to introduce courses related to renewable energy in their regular curriculum. With this initiation, solar street lights, solar hot water systems and small hydro have already been incorporated in the two-year ITI syllabus.   Course material for this has been developed and faculty of it is now being trained. In addition, State Renewable Energy Agencies are being supported to organize short-term training programmes  for installation, operation and maintenance and repair of renewable energy systems in such places where intensive RE programme are being implemented. Renewable Energy Chairs have been established in IIT Roorkee and IIT Kharagpur.


National Solar Science Fellowship Programme has been launched and process for selection for the National Solar Science Fellows initiated. These efforts, while generating pool of trained manpower at all levels, will also create a system, under which the ensuing requirement of qualified and trained personnel will be met in future.              Solar Energy Centre of the Ministry in collaboration with the Ministry of External Affairs has been providing training to participants from different developing countries.


Renewable Energy and Climate Change: 

Renewable energy is central to climate change mitigation efforts. Broad estimates indicate that mitigation from existing renewable energy portfolio is equivalent to around 4-5% of total energy related emissions in the country. Further, the vast market potential and well-developed industrial, financing and business infrastructure, has made India a favorable destination for Clean Development Mechanism (CDM) projects, with renewable energy projects having the major share. National renewable energy plans offer ample opportunity for CDM projects and technological innovations.


India had 727 registered CDM projects, which is around 21% of worldwide registered projects. With 520 projects, renewable constitute around 72% Indian CDM registered projects. Within renewable, wind has the maximum number of 225 projects followed by hydro 82 and 6 for solar energy.

APGenco commissions 1 MW solar PV unit

APGenco has announced the commissioning of a 1.0 MW photovoltaic cell-based solar power plant at Priyadharsini Jurala Hydroelectric Project on Thursday.

The plant has been synchronised with grid at 8.10 a.m. today. Commercial operation of the plant will start from Saturday. This project was allocated to APGenco under the JNNSM (Jawaharlal Nehru National Solar Mission) Phase – I programme by IREDA (Indian Renewable Energy Development Agency), Government of India.

The project, executed with an outlay of Rs 12.8 crore, has been designed to provide annual energy output of 1.4 million units (mu). The power will be fed in to the 11kV system of Central Power Distribution Company Ltd (CPDCL) at Gadwal, Mahaboobnagar district.

As per the guidelines of JNNSM Phase-I Rs 17.91/ unit will be paid for the power generated from this plant (Rs 5.50 /Unit by CPDCL and Rs 12.41/unit by IREDA). This is APGenco’s maiden entry into solar power generation.

It has successfully completed the 1 MW PV plant, according to a statement from Mr. K. Vijayanand, Managing Director of APGenco.

Summary of Indian Power Sector-2011

The Ministry of Power has adopted a robust monitoring system for the capacity addition programme so as to see that the projects are executed in time.

There has been a sizeable growth in the power sector as the generating capacity in the country has increased to 185496.62 MW as on 30.11.2011.

The installed capacity sector-wise & type wise as on 30.11.2011 is given below: ( In MW )

Sector Hydro Thermal Nuclear R.E.S (MNRE) Total
Coal Gas Diesel Total
Central   8885.40 36705.00 6702.23 0.00 43407.23 4780.00 0.00 57072.63
State 27338.00 48112.00 4327.12 602.61 53041.73 0.00   3225.92 83605.65
Private   2525.00 18046.38 6713.50 597.14 25357.02 0.00 16936.32 44818.34
Total 38748.40 102863.38 17742.85 1199.75 121805.98 4780.00 20162.2 185496.62

Note:- R.E.S. includes SHP, BG, BP, U&I and Wind Energy.

The details of capacity commissioned during the 11th Plan are as below:

Type Mid-term appraisal target Commissioned (Upto30.11.2011)(MW)
Hydro   8,237   5302
Thermal 50,757 38588
Nuclear   3,380    880
Total 62,374 44,770*

Sector-wise Details

Type Mid-term appraisal target Commissioned (Upto30.11.2011)(MW)
Central 21,222 12,610
State 21,355 14,552
Private 19,797 17,608
Total 62,374 44,770*

Monitoring MechanismNote: This includes a Capacity of 2,186 MW commissioned from additional project.

The Ministry of Power has adopted a robust monitoring system for the capacity addition programme so as to see that the projects are executed in time.  Monitoring of power projects are carried by the Ministry at different levels i.e. by the Central Electricity Authority, by the Ministry of Power, through the Power Project Monitoring Panel (PPMP) and the Advisory Group.  The Eleventh Plan Capacity Addition Programme is also monitored by the Planning Commission, PMO and the Cabinet Secretariat, as well.


Ministry of Power had launched an initiative for development of coal based Ultra Mega Power Projects (UMPPs) each of about 4000 MW capacity under Case-II bidding route employing super critical technology. Pit head projects are proposed as integrated proposals with corresponding, captive coal mines.  For coastal projects imported coal is proposed to be utilized. The UMPPs would be environment-friendly, as super critical technology is proposed to be adopted to derive maximum thermal efficiency resulting in saving of fuel and reduced emissions. Shell companies will be responsible for preparation of Project Report, tie up of various inputs/clearances, appointment of consultants, preparation of RfQ/RfP, etc. Once the developer is selected, ownership of the shell company shall be transferred to the successful bidder.

Four UMPPs namely Sasan in MP, Krishnapatnam in Andhra Pradesh, Tilaiya in Jharkhand have been awarded to M/s Reliance Power Ltd. and Mundra in Gujarat have been awarded to M/s Tata Power Ltd. One unit of 800 MW of Mundra UMPP is expected to come up in the 11th Plan. Request for Qualification (RfQ) for Orissa UMPP in Sundergarh District of Orissa has been opened and is under evaluation.  RfP will be issued shortly. RfQ for Chhattisgarh UMPP was issued.  The date for submission of RfQ has been extended 9 times due to “Go/No-Go” issue and now valid upto 5th March, 2012. Sites in respect of Tamil Nadu UMPP and Andhra Pradesh Second UMPP have been identified.  Efforts are being made to bring them to bidding stage at the earliest. Efforts are being made for selection of sites for remaining UMPPs.


Open Access

Operationalisation of open access

Open access is one of the key features of the Electricity Act, 2003.  Open access in inter-state transmission is fully operational.  To give a fresh impetus to implementation of open access over transmission lines of State utilities and over the distribution networks, a Power Ministers’ Conference was held on 28.4.2010 in which it was resolved that non-discriminatory open access in intra-State transmission and distribution system would be provided in letter and spirit as per the provisions of the Electricity Act and the National Policies.  This was followed by a Working Session on Open Access in distribution sector of electricity held on 16.7.2010.  The issue of open access was also emphasized in the Group of Ministers on Power Sector Issues in its meeting held on 29.10.2010 and 13.7.2011 under the chairmanship of Minister of Power.

Further, the Ministry of Power in consultation with M/o Law & Justice/Ld. Attorney General of India has issued clarification vide letter dated 30.11.2011 that “all 1MW and above consumers are deemed to be open access consumers and that the regulator has no jurisdiction over fixing the energy charges for them”.  All concerned have been requested to take necessary steps for implementing the provisions relating to open access in the Electricity Act, 2003 in light of the said opinion.

Task Force on measures for operationalizing open access in power sector

The 2nd Task Force on measures for operationalizing open access in power sector constituted under the chairmanship of Member(Energy), Planning Commission has deliberated on the issues and the report is under finalization.

Amendment in Tariff Policy

The Tariff Policy was amended on 20.1.2011 for fixing a minimum percentage of the total consumption of electricity in the area of a distribution licensee from solar energy in accordance with the National Solar Mission strategy. The minimum percentage for purchase of solar energy will go up to 0.25% by the end of 2012-2013 and further up to 3% by 2022.

Tariff Policy has been further amended on 8.7.2011 granting further exemption to hydro projects and certain transmission projects from tariff based competitive bidding.

Regulations notified by Central Electricity Authority under the Electricity Act, 2003 during the year 2011

The Central Electricity Authority (Safety Requirements for Construction, Operation & Maintenance of Electrical Plants & Electric Lines) Regulations, 2011 were notified on 24.1.2011.

Rajiv Gandhi Grameen Vidyutikaran Yojana

The Central Government launched the scheme “Rajiv Gandhi Grameen Vidyutikaran Yojana” (RGGVY) of rural electricity infrastructure and household electrification in 2005 for the attainment of the National Common Minimum Programme (NCMP) goal for providing access to electricity to all households in the country.  This programme has been continued in the 11th Plan.  This is one of the flagship programmes of the Central Government.  In this programme, the Central Government is providing 90% of the project cost as subsidy.

So far, 578 projects targeting to electrify about 1.10 lakh un-electrified villages, intensive electrification of about 3.47 lakh already electrified villages and to provide free electricity connections to 2.26 crores BPL households have been sanctioned and are under implementation. However,  the Bharat Nirman Target for RGGVY is to electrify one(1) lakh un/de-electrified villages and release of electricity connections to 175.00 lakh BPL households by March, 2012. Cumulatively, as on 30.11.2011, 100100 un-electrified villages have been electrified, 2,28,507 already electrified villages have been intensively electrified and free electricity connections to 1,76,53,705 BPL households have been released.  It is evident that the Bharat Nirman targets have been achieved.

During the year 2011 (from January, 2011 to November, 2011),  rural electrification achievements under RGGVY are as under:

Villages Nos. BPL households
I Un-electrified 10,425 35,83,352
II Electrified 58,488


Cumulatively, as on 30.11.2011, Franchisees have been deployed in 1,48,399 villages (37,832 villages during the year 2011) in 17 States.

Re-structured Accelerated Power Development and Reforms Programme (R-APDRP)

The Re-structured Accelerated Power Development and Reforms Programme (APDRP) for XI Plan as a Central Sector Scheme was approved by CCEA on 31st July-08. The projects under the programme are being taken up in two parts i.e. Part A & Part B in urban areas – towns and cities with a population of more than 30,000. Investment in Part-A is for establishment of IT enabled Baseline System for energy auditing and accounting and investment under Part –B is for strengthening of sub- transmission distribution system. The Power Finance Corporation has been designated as nodal agency for operationalsing the programme.

Achievements in implementation of R-APDRP during the period of January, 2011 to 15th December, 2011 are indicated below:


Under Part ‘A’ of Restructured APDRP, 1 project worth Rs. 19.51 Crores was sanctioned.


Under Part-A (SCADA), 42 projects worth Rs.914.19 Crores were sanctioned.


Under Part-B of R-APDRP, 264 projects worth Rs.8803.75 crores were sanctioned.

Under R-APDRP, Rs.996.63 crores as loan was released to PFC for disbursement among the Utilities against the project sanctioned for Part-A & Part-B and Rs.56.86 crores was released to PFC as grant.


Standard & Labelling (S&L)  programme

As on date Bureau of Energy Efficiency(BEE) has successfully registered 14 products under the S&L scheme out of which 4 products are under the mandatory labeling regime, these are frost free refrigerator, room air conditioner, Tubular Florescent Lamps (TFL) and distribution transformer. The other products under the program are direct cool refrigerator, induction motor, agriculture pump sets, ceiling fan, LPG stove, electric storage type geyser, colour television, washing machine, laptop and Air Conditioner of cassette, low static duct, ceiling/floor standing tower models (type B). There have been 4856 fresh approvals given to different applicants of star labeled products upto November 2011. The mass consumer awareness has been through different mass media approach. Huge impact has been created in the program.

There has been a verified energy saving of 2162 MW of avoided generation capacity during the year 2010-11 due to implementation of S&L Scheme. The unverified energy saving up to two quarters of the year 2011-12 is reported to be 1045 MW of avoided generation capacity.

Energy Conservation Building Code Programme(ECBC)

Harmonization of ECBC with National Building Code (NBC) is in process by incorporating a new chapter “Approach to Sustainability”. BEE has developed model building bye-laws to mandate minimum energy standards for residential and commercial buildings/complexes.

Window labeling programme has been developed and is under finalization. Under Star Rating Programme for buildings, which is based on actual performance of the building, labels for day-use Office buildings, BPOs and shopping malls have been developed. Till date, 130 buildings have been labeled under the various categories of buildings.

Bachat Lamp Yojana Programme

BEE has received 65 BLY projects for inclusion in the registered BLY Programme of Activity.

The Clean Development Mechanism (CDM) Executive Board has included total 42 projects. 245 Lakh CFLs have been distributed so far in various states of India – Karnataka, Andhra Pradesh and Delhi.

BEE has reviewed empanelment of CFL investors. 18 investors have been re-empanelled by BEE for ready reference of Distribution Companies. 18 states have initiated the implementation of BLY.

Web based interactive Database Management system is being developed for interacting with the stakeholders.

BEE has revised the procedures in the BLY Administration Manual to meet the requirements of ISO 9001.

Contribution to State Energy Efficiency Fund (SECF) Scheme:

SECF is a statutory requirement under section 16 of the Energy Conservation Act 2001. In this regard, the Ministry of Power has approved a scheme “Contribution to State Energy Conservation Fund (SECF) by the Bureau of Energy Efficiency”. Till now 23 State Governments / U.T. Administration have already established their SECF and Rs. 48.00 Crores have been disbursed to 21 states.

Energy Conservation Awareness, National Energy Conservation Awards & National Level Painting Competition for School Children (2011)

EC Award function was successfully held on 14/12/2011 at Vigyan Bhawan. The 642 participating units of EC Award 2011 have collectively invested Rs.2201 crores in energy conservation measures & achieved a monetary savings of Rs.2390 crores last year, implying a very short payback period of 11 months only, once again proving the fact that energy conservation is a least cost option.

The participating units have also saved electrical energy of 3421 million kwh, which is equivalent to the energy generated from 504 MW thermal power station at a PLF of 0.775. In other words, these participating units have avoided the installation of power generating capacity equivalent to 504 MW Thermal Power Station in 2010-11.

The National Painting Competition on Energy Conservation 2011 at School, State & National Level was a resounding success. The Competition is aimed at motivating the children towards energy conservation & offers them a chance to explore their creativity.

Across the country, 58855 Schools and 20.72 lakhs students of 4th, 5th & 6th standards of the 35 States & UTs participated. This participation was about 33% higher than that in the previous year, which is quite encouraging.

National Mission on Enhanced Energy Efficiency


The targets for reducing specific energy consumption in 477 designated consumers across 8 industrial sectors have been approved by Ministry of Power. The total national target of energy saving to the tune of 6.6 million tons of oil equivalent has been kept in the 1st PAT cycle which will be 3 years from the date of notification period. Energy Audit in all DCs have been initiated to explore the potential avenues of energy saving. Baseline Energy Audit in 343 industries has been completed as per the status received from Energy Efficiency Services Limited (EESL). About 50 workshops were conducted to consult stakeholders like designated consumers, regulators, energy auditors & managers, energy exchanges, State Designated Agencies, Industrial associations etc.


MoU with M/s. PTC India Ltd, M/s. SIDBI and HSBC Bank has been signed by BEE. PTC India Ltd. has commenced financing of several building energy efficiency projects in Presidents Estate, ESIC Hospitals at Rohini and Jhilmil, AIIMS, Safdarjung Hospital. SIDBI has taken up project preparation of energy efficiency projects in 25 SME clusters which will then be offered financing. Investment grade energy audits have been completed for large public buildings in the country. Capacity Building is being done through Empanelment of ESCOs duly validated through ICRA and CARE. BEE has initiated the work through International Institute of Energy Conservation (IIEC) and HSBC to develop the module for imparting training to bankers. Round table conference and pilot training programme for financial institutions (FIs) were held in Mumbai during June 2011.


Partial Risk Guarantee Fund (PRGF) and Venture Capital Fund for Energy Efficiency (VCFEE)

With the process already underway, the funds will be duly notified and operationalized.

Mega Power Policy

Mega Power Policy was introduced in November, 1995 for providing impetus to development of large size power projects in the country and derive benefit from economies of scale.  These guidelines were modified in 1998, 2002, 2006 and 2009 to rationalize the procedure for grant of mega certificate and facilitate quicker capacity addition.  The Government has been receiving representations from the industry that there has been delays in signing of Power Purchase Agreements (PPAs) as per National Electricity Policy (NEP), 2005 and Tariff Policy, 2006 which is a mandatory for grant of mega power status.

The Government has since considered the matter in consultation with Ministry of Finance, Department of Revenue.  Accordingly, the provision of granting provisional mega power status certificate have been added in the mega power policy guidelines in August 2011 to further facilitate implementation of mega power policy.  9 power projects totaling capacity of about 18,520 MW have been granted mega power status and 17 power projects totaling capacity of about 22,540 MW have been granted provisional mega power status during the year 2011.




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