Monthly Archives: October 2013

CERC to hear Adani Power compensatory tariff matter on Nov 13

Electricity regulator CERC on November 13 will hear Adani Power’s plea seeking increase in tariff from its thermal power plant in Gujarat due to rise in price of coal from Indonesia.

Adani Power had petitioned Central Electricity Regulatory Commission for evolving a mechanism to meet the escalation in fuel cost due to enactment of new coal pricing regulation by Indonesian government.

Adani Power is executing a coal-based thermal power project at Mundra in Gujarat based on domestic coal. Due to shortfall in production of coal by state-run Coal India, the company had tied up supplies with Indonesia.

CERC, in April, had said that Adani Power should be granted compensation package for its Mundra project which would provide a cushion against the escalation in cost of imported coal for the plant.

The compensation in the form of compensatory tariff will be decided by a committee headed by HDFC Chairman Deepak Parekh, the regulator had said in its order.

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Source: BS

Essar Power’s over Rs 11,000 cr investment awaits mining approvals

Business Standard takes a look at the issues involving six leading business groups which have been named by the Comptroller and Auditor General in its report on coal block allocation. The second part of the series is on the Essar Group…
 

Within a month after the Comptroller & Auditor general (CAG) tabled the coal block allocation report in Parliament in August last year, the Central Bureau of Investigation filed a first information report (FIR) against Hyderabad-based Nava Bharat Power Private Limited for the coal block allotted to it in Odisha in January 2008.
 
And this dragged Ruia brothers-promoted Essar Power into the controversy as it had acquired the block from Nava Bharat for Rs 230 crore in two tranches in July 2010 and April 2011. Navabharat Power is a 1,050 MW coal-fuelled power plant being set up in Dhenkanal district in Orissa. The project includes the allocation of 17.39% share of the Rampia coal block that has 112 million metric tonnes of reserves. 
 
The CBI in its FIR has alleged that Nav Bharat misrepresented the facts to get the coal block and later made about Rs 200 crore profit by selling it to Essar Power. The CBI questioned promoters and directors of Nava Bharat, Y Harish Chandra Prasad and P Trivikarma Prasad. It also quizzed Essar Group director Vikash Saraf in this context.
 
The CBI alleged that Nava Bharat would not have had the requisite net worth for the proposed plant for which the block was allotted to it. Essar Group denied allegations of making Nav Bharat its front for getting the coal blocks allotted. Even the CBI in its FIR has not named Essar as an accused.
 
Following the acquisition, Essar Power has invested more than Rs 500 crore in developing the project and has also achieved financial closure. But no debt has been drawn so far.  
 
Currently the project is awaiting revalidation of various regulatory clearances including environment clearance, water approval, etc. Implementation of the project is linked to mining and regulatory approval revalidation, which is pending for a long time.
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Source: BS

Sahara Power signs MOU to set up 1320 MW project in Orissa

Sahara India Power Corp Ltd, a 100% subsidiary of Sahara India’s real estate arm Sahara Prime City Ltd, has signed an MoU with the Orissa government for setting up a 1320 mw coal-fired thermal plant in Orissa. The project investment is likely to be Rs 5,604 crore. The proposed plant in Orissa is planned to be set up through joint venture participation with power companies from different parts of the world.

It will be built on 1,500 acres at Orissa s Turla Tehsil of Balangir district. The Turla plant is planned to commission its first 660 mw unit by February 2013 while the second unit of identical capacity is expected to be commissioned within 6 to 8 months thereafter.

Sahara India Power will develop fuel-based or non conventional power plants using the latest and emerging technologies. The company will set up a 5 mw grid interactive solar photo-voltaic power plant in Dhenkanal district of Orissa at an estimated investment of about Rs 125 crore.

The company has already received an in-principle approval from the Orissa government through the Orissa Renewable Energy Development Agency (OREDA). Sahara India Power has already tied up with the US-based Solar Integrated Technologies Inc (SIT) as its strategic partner for supply and installation of the required plant and equipment.

In addition to this, Sahara Power is also planning to set up 25 mw of wind power projects in Orissa through Wind Energy Company which has already set up wind masts at seven locations. The company plans to proceed with the project once it receives data, gathered by the masts in next 6 to 9 months.

Sahara Power has tied up with Solar Integrated Technologies (USA) for supply and installation of the required plant and
equipment.

The company is also planning to set up 25-Mw wind power projects in Orissa. It has proposed to set up a 2,000 Mw coal-based power plants in Jharkhand and Chhattisgarh at an estimated investment of Rs 8,000 crore each.

Source : Economic Times

Suzlon Energy Q2 net loss narrows to Rs. 782.37 crore

Wind turbine maker Suzlon Energy today said its net loss has narrowed to Rs. 782.37 crore during the July-September quarter of 2013-14 fiscal.

It had posted net loss of Rs. 807.74 crore in same quarter of the 2012-13 fiscal, Suzlon Energy said in a statement.

Total Income of the company decreased to Rs. 4,820.54 crore for the second quarter ended September  30, from Rs. 5,784.39 crore in the year-ago period.

“While we continue to progress on the operational front, we reported a significant net loss primarily driven by lower volumes, the impact of the depreciating rupee, and restructuring costs,” said Kirti Vagadia, group head of Finance at the company.

“We have strengthened our product portfolio, adding a new turbine variant designed specifically for low wind sites in developed economies. We have entered into Uruguay, one of the most promising Latin American markets,” said Tulsi Tanti, chairman, Suzlon Group.

The company stock closed at Rs. 10.20, down 4.94 per cent, on the BSE.

Source : NDTV

Fixing the Energy

ARJUN SR (MBA-POWER MANAGEMENT)

Law of conservation of energy states that “the energy can neither be created nor be destroyed; it can only be converted from one form to another”. So it’s our primary duty to conserve it by reducing energy, through using less and efficient use of an energy service.

According to statistics a reduction and efficient use of electricity in our country can lead to an equivalent capacity addition of around 25000 MW .The potential of Energy conservation for our economy as a whole has been assessed around 23%. Consider the huge savings of CAPEX and fuel that we can achieve through the conservation.

How it can be done ?

Our government enacted the Energy Conservation Act, 2001 . An Act to provide for efficient use of energy and its conservation and for matters connected therewith or incidental thereto. The Act provides  the institutional arrangement  , legal framework and a regulatory mechanism at the Central and State level to embark upon energy efficiency drive in the country.

The Ministry of Power (MOP) and Bureau of Energy Efficiency (BEE) was tasked to prepare the implementation plan for the National Mission for Enhanced Energy Efficiency ( NMEEE). NMEEE spelt out the following four new initiatives to enhance energy efficiency, in addition to the programs on energy efficiency being pursued based on the Energy Conservation Act. They include,

  • Perform Achieve and Trade (PAT): A market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries and facilities, through certification of energy savings that could be traded
  • Framework for Energy Efficient Economic Development (FEEED): Developing fiscal instruments to promote energy efficiency
  • Energy Efficiency Financing Platform (EEFP): Creation of mechanisms that would help finance demand side management programs in all sectors by capturing future energy savings
  • Market Transformation for Energy Efficiency (MTEE): Accelerating the shift to energy efficient appliances in designated sectors through innovative measures to make the products more affordable

PERFORM ACHIEVE AND TRADE IN THERMAL POWER PLANT

PAT  launched by The BEE in 2012, the scheme incentives enhancement of energy efficiency of 478 designated consumers in eight sectors , Which issue the energy saving certificate (ESCert) after submission of year report by energy manager and review by BEE in 2013. The whole process of PAT scheme includes sequential steps, namely goal setting, emission reduction, review, certification and trade.

The thermal power sector is a large consumer of energy so this sector is one of our main focuses .The threshold limit on Thermal Power Plant (TPP) is around 3000 tonnes of oil equivalent  annual energy consumption during the first cycle through 2012 t0 2015. The 144 designated TPP is having an individual target of reducing the Specific Energy Consumption (SEC) which means the ratio of the net energy input into the DC boundary of the total quantity of output exported from the DC boundary. The target  reduction will be based on the estimated baseline SEC and historical data on energy production and consumption as reported by installations participating in the scheme. In this approach more inefficient plants are assigned higher targets or largest percentage reductions with respect to their estimated baseline consumption of energy.

The PAT mechanism which designed to  enhance energy efficient technology by industry than their specified Specific Energy Consumption enhancement target in a cost effective method,if more than the target reduction is achieved the concern industry will be eligible for ESCert which can be traded with other designated consumers who could use these certificates to fulfill with their SEC reduction targets. The ESCert can be traded on special trading platforms to be created in the two power ex-changes Power ex-change India (PXIL) and Indian Energy Exchange (IEX). The Bureau of Energy Efficiency is developing an online platform  “PAT- Net”, a  control software which is an online integrated information system for operation, transfer, trading, data management for cancellation and creation of ESCert.

The PAT mechanism will improve the energy efficiency in the designated industries which heavily depend on the non renewable source of energy. It helps the industries to incorporate more and more new technology into the existing system which improve the station heat rate which in turn reduces the consumption of coal and reduce the cost of generation of electricity. The greenhouse gas emission  can also be controlled by the implementation of PAT as per the The National Action Plan on Climate Change (NAPCC). There should be also a mechanism to include small and medium scale industries to the boundary of PAT by doing this we can have an affective and efficient energy conservation among all the level.

The success of the program depends upon the implementation of the scheme so there should be a fine balance of carrot and stick approach for successful implementation of PAT.

SAVE ENERGY SAVE NATION

ARJUN SR (MBA-POWER MANAGEMENT).,

 

REFERENCES

  1. PAT—Perform, Achieve and Trade, “Power booklet Re- leased by the Ministry of Power,” Government of India, New Delhi, 2012
  2. Ministry of Power, “PAT Notification,” 2012
  3. Stakeholder Analysis Report on “Perform, Achieve and Trade (PAT)” Scheme of Government of India
  4. Energy Conservation Act 2001
  5. “A Sustainable Energy Efficiency Solution in Power Plant by Implementation of Perform Achieve and Trade (PAT) Mechanism” by Rajesh Kumar, Arun Agarwal Open Journal of Energy Efficiency, 2013, 2, 154-162

RESolve warns NSM phase 2 bidders of potential solar PV price increases

RESolve Energy Consultants (Chennai, India) has released a new analysis which warns that solar photovoltaic (PV) products may become more difficult to source in 2014, and that prices may increase on rising demand.

The firm quotes global PV market estimates of between 41 GW by IHS Inc. (Englewood, Colorado, U.S.) and 45 – 55 GW by NPD Solarbuzz (Santa Clara, California, U.S.), stating that prospective bidders under phase 2 of the India’s National Solar Mission (NSM) should account for potentially higher prices.

“While there is enough domestic manufacturing capacity in the country, the domestic manufacturers still have to import PV wafers, and as such the domestic module prices will be in line with the global prices,” states RESolve Energy Consultants Founder and Director Madhavan Nampoothiri.

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Industry miffed as Maharashtra Electricity Regulatory Commission allows higher cross subsidy charge

In what may be a gain for farmers, but a loss for the manufacturing sector, Maharashtra Electricity Regulatory Commission (MERC) has approved a hike in cross subsidy surcharge (CSS) from Rs 1.18-1.60 per unit to Rs 2.30-2.75 a unit respectively. This has left the industries miffed. CSS is a charge levied from the industry when it buys power from open market rather than the state-owned utility MSEDCL.

It is levied to make good the losses on account of cheap power for agricultural and other consumers. For this reason, MSEDCL charges industry a higher rate but if the industries buy power from sources other than MSEDCL, government does not get the money for funding subsidy. CSS is charged on purchases from open market to bridge the gap.

Vidarbha Industries Association (VIA) has been lobbying hard to do away with the CSS. However, the deputy chief minister Ajit Pawar, who also heads the power ministry, has flatly refused on the grounds that funds were needed for subsiding the farmers and poor consumers. MERC decision to hike the CSS has left the industries disappointed. VIA said that it would appeal the order.

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Source: ToI

Pan Global Corp to buy 5.7 MW hydro plant in Uttarakhand for $6.6M

Pan Global Corp, a firm listed on the OTC exchange in the US, has entered into a stock purchase agreement with Regency Yamuna Energy Ltd (RYEL) to buy the outstanding shares and convertible debt of RYEL which is commissioning a 5.7 MW small-hydro project in northern India. The acquisition, to be completed in multiple tranches, will involve a total investment of around Rs 41 crore ($6.6 million).

As part of the deal, Pan Asia Infratech, an arm of Pan Global Corp, has entered into an agreement with RYEL, Arun Sharma, a director and majority stockholder of RYEL and the remaining stockholders of RYEL on October 28, 2013 to buy their shares.

This acquisition aims to fund the completion of RYEL’s hydro project in Badyar in Uttarakhand, having a valuation of Rs 67.11 crore.

It will also enable RYEL to restructure its outstanding secured bank credit facility worth Rs 28.36 crore with the State Bank of Patiala.

In the first round of closing of the transaction scheduled by this weekend, Pan Global will buy 2,758,621 shares for Rs 4 crore (approximately $655,738), constituting approximately 13.4 per cent of RYEL.

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Source: VCCIRCLE

Techno Electric loses Rs 50 cr on grid backdown in TN

Techno Electric and Engineering Company Ltd has reported a net profit of Rs 37 crore for the quarter ended September, compared with Rs 68 crore in the corresponding quarter of last year. In this plunge of profits lies the sad story of the wind industry in Tamil Nadu.

The company, along with its IFC-funded subsidiary, Simran Wind Project Pvt Ltd, has a over 190 MW wind farm in Tamil Nadu, and could have generated 120 million units of electricity more than it did, if the state-owned electricity generation and distribution company, Tangedco, had only been able to pick up the power.

Techno Electric’s generation loss, worth about Rs 50 crore, is but a small part of the huge loss in value that all the power producers in the state suffered during the wind season of June-September.

It is estimated that at least Rs 1,000 crore worth of electricity was lost due to grid ‘back-downs’.

Ironically, Techno Electric says in its Web site that it is into wind power business because of “predictable income flow and assured terms through credible power purchase agreements.”

Woes of the wind power generation in the state have been toggling between ‘grid is not available’ to ‘grid is available but Tangedco does not want wind power’.

Compounding this is the fact that the state does not allow power generation within the state to be sold outside.

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Source: Business Line

Load shedding resumes in Coimbatore as winds drop

The city witnessed two hour load shedding on Tuesday as wind energy generation dropped.

Officials of the Tamil Nadu Generation and Distribution Corporation told The Hindu here on Tuesday that two hour load shedding was implemented in rotation across the city from 7:40am. Usually, hydro generation picked up in the evening hours and wind energy generation was also better in the afternoon.

The normal windy months in the State were from May to October.

The wind season started early this year — by mid-April — and lasted till the end of November. And, wind energy generation was unpredictable now. Though it was festival season, demand for power had not increased much in the city. It was nearly six million units a day on weekdays and remains almost the same now.

However, since there were no rains for the last one week, the agricultural demand could have increased slightly, the officials added.

According to data available on the website of the Tamil Nadu Transmission Corporation, the State witnessed 956 MW load shedding on Tuesday morning. Wind energy generation on Tuesday morning was just 49 MW as against 500 MW on Monday morning and 991 MW last Tuesday.

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Source: Hindu

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