Documente Academic
Documente Profesional
Documente Cultură
S E C T O R at a G L A N C E
January 26, 2014
INSIDE STORIES
Govt. relaxes norms for mega power projects Features of power tariffs in Delhi Buying hydro power may become mandatory for discoms Kudankulam nuclear plant commercial operation delayed further
SPOTLIGHT
02 03
04
05
Capacity Addition of 21 GW During 2012-13 4 mines in Odisha to be allocated to power firms Electricity tribunal sets aside TNERC solar order Performances of Power Sector
07
08 09 11
N E W S AT A G L A N C E
move that would facilitate bulk transfer of power across regional boundaries. With this, the mission of One Nation One Grid One Frequency has been successfully accomplished. The national grid will help southern states, especially Andhra Pradesh, Tamil Nadu and Kerala, which are facing huge shortages, lift surplus power from other regions. Till now, four regional grids -- northern, eastern, western and north-eastern -- were connected synchronously and the southern region was connected to the other four grids via HVDC links.
Source: The Financial Express, Dated:02/01/14
N E W S AT A G L A N C E
AAPs New Year gift for Delhi: Power tariff halved for use up to 400 units/month
Ending 2013 by keeping yet another poll promise, the AAP State Govt announced a 50 % cut in power tariff for households using up to 400 units in Delhi. It also announced plans to order an audit into the finances of the 3 private power distribution companies BSES Yamuna, BSES Rajdhani (Reliance Infra companies) and TPDDL (a Tata company). The decision to subsidise power tariff involving a cash outgo of Rs 61 crore in the next three months. Reliance Infrastructure has 51 % stake in BSES, while the Delhi Government holds 49 per cent stake in the BSES companies, which run two utilities covering two-thirds of the National Capital. Source: Business Line, Dated:31/12/13
Battle between Tata, Anil Ambani discoms and Kejriwal's AAP govt intensifies over CAG audit
The face-off between Delhis three power distribution companies controlled by Tata Power Ltd and Reliance Infrastructure and the state government intensified with the three writing to the additional secretary, power, reiterating their stance there was no reason for a Comptroller and Auditor General check even as the government ordered a CAG audit of their finances, reports Bureau in New Delhi. Chief minister ArvindKejriwal said the CAG had said it could conduct the audit, adding that the lieutenant governors order on the audit would go to the CAG . The discoms have said the matter was subjudice and that their accounts were, in any case, being audited by a CAG -approved panel of auditors. They have also said that their purchases of power were subject to the scrutiny of the Delhi Electricity Regulatory Commission. Source: The Financial Express, Dated:02/01/14
States can subsidise electricity but discoms should be revenue neutral: Scindia
It is the State Government's prerogative if it wants to subsidise certain group of customers on electricity tariff. But the discoms should be revenue neutral. Arvind Kejriwal, has announced reducing electricity rates by 50 % for consumers using up to 400 units a months. Political leaders have demanded a similar move for Mumbai too. This has started a debate over viability of electricity distribution utilities and participation of private players in the distribution sector. Many discoms are financially stressed and the Govt has unveiled a financial restructuring package to revive them. Source: Business Line, Dated: 16/01/2014
for power over drawl by utilities. The charges for deviation for each 0.01 Hz frequency step will change the power cost by 35.60 paise per unit in frequency range of 50.05 Hz to 50.00 Hz and 20.84 paise per unit in frequency range from 49.70 Hz to 50.00 Hz. At 49.70 Hz the over drawl charges has been increased to Rs. 8.2404 per unit and it is Rs.1.9884 per unit at 50.00 Hz and free power at frequency exceeding 50.05 Hz. No over drawl is permitted from grid when the system frequency is below 49.7 Hz. In case of over drawl by any utility at system frequency less than 49.7 Hz a very strong deterrent has been made as the over drawl charges shall be Rs. 16.4808 per unit .
Advertisement
N E W S AT A G L A N C E
The Union power ministry is planning to make it mandatory for companies discoms to buy electricity from hydel projects . The idea is to attract investments into the sector and raise the falling share of hydroelectricity in the countrys power mix. Since the proposal has the potential to increase discoms power purchase costs, the ministry has decided to consult electricity regulators and state governments on the. Specifically, the idea is to put in place a policy of hydropower purchase obligation (HPO) similar to renewable PPO . Under the mechanism, discoms in states lacking renewable resources can fulfil their obligation by buying renewable energy certificates from others . India has the potential to generate 1.5 lakh mw electricity from hydro resources, but it has harnessed only 40,000 mw. The Union power ministry had envisaged capacity addition of 8,237 mw in the hydropower sector during the 11th Plan. However, only half the targeted capacity could be added Source: The Financial Express, Dated: 10/01/2014
Advertisement
N E W S AT A G L A N C E
Discoms knock on Delhi HC doors for reprieve from Arvind Kejriwals audit shock
Reliance Infrastructure-owned BSES Yamuna and BSES Rajdhani and Tata Power Delhi Distribution moved the Delhi High Court against order of the Arvind Kejriwal-led Delhi govt directing CAG to carry out an audit of the two discoms. Kejriwal had called for an audit of the 3 discoms alleging the trio has in the past manipulated accounts with an intention to hike power tariff. Earlier senior officials of the 3 discoms had requested the Delhi govt bureaucrats to desist from taking any action against them in a matter which will determine if the CAG has the requisite authority to audit accounts of private discoms. The Delhi govt, at present, has a 49% stake in these discoms. The accounts of the discoms are also approved by the Board of directors of the companies. After this, the approved accounts are then submitted to DERC, which undertakes a detailed prudence check. The companies have consistently maintained that they buy their entire power from generating stations that belong to state and central governments at the rates determined by CERC & DERC. Source: The Financial Express, Dated: 23/01/2014
I N N O VAT I O N
HIGHLIGHTS
An historical 21 GW of capacity addition took place during the financial year 2012-13 and more than 8700 MW of capacity addition has been achieved by December, 2013 for the financial year 2013-14. The total installed capacity in the country at present stands at 236 GW. This was stated by Shri Jyotiraditya Scindia, Union Minister of State [I/C] of Power while addressing the media in New Delhi. The Minister disclosed that total installed capacity of 400 GW will be required by 2022 to meet the power demand, which is a huge challenge for the country.
Speaking about the supply of gas to the coal sector, the Minister said that after the latest decision of the Govt. to cap the supply of domestic gas to the fertilizer sector, nearly 9 MMSCMD of additional gas will be available to the power sector over the next three years. The Minister admitted that the shortage of gas supply has become a matter of concern since nearly 20 GW of capacity is tied up in gas based power projects. With respect to the supply of coal to the power sector, the Minister said that a remarkable achievement has been signing of 157 FSAs with total capacity of 72 GW out of a total of stipulated 78 GW in a record time of 2 and half months. Mr. Scindia disclosed that 9 applications have been received for Odisha UMPP and 8 for Cheyyur [Tamil Nadu], the bids for which will be opened on 26th February, 2014. The Minister elaborated that several level of redundancies have been put in place and these mechanisms are now institutionalized to ensure grid security. Frequency band has been tightened which is now closer to international norms and congestion charges have been imposed to ensure that everybody follows the guidelines. Similarly, autonomy to POSOCO is also under process.
The Ladakh region of J&K will be connected with the National Grid soon since the Cabinet has approved the transmission project between Srinagar and Leh along with the associated transmission lines as well as sub stations. This will enable remote areas of Leh and Kargil to benefit from the much needed power supply during winter as well as allow evacuation of excess power in summer from NHPC Power Plants of Nimmo Bazgo, and Chutak recently commissioned in the Leh/Kargil area. The Minister added that his Ministry has been working closely with the Ministry of Environment and Forests for speedy clearances. More than 4800 MW of Hydro Capacity received wildlife/environment/forest clearances recently as a result of these efforts. Similarly, E-GoM has been set up to expedite Hydro Projects in Arunachal Pradesh. Speaking on the issue of subsidy on power, the Minister said that if the states wish to give subsidy on electricity, then they must re-imburse the subsidy amount to the concerned DISCOM immediately to ensure revenue neutrality of the DISCOM. The Financial Restructuring of DISCOMs is doing well in the four states of Tamil Nadu, Rajasthan, UP & Haryana with an FRP amount of Rs 95,247 cr finalized and bonds worth Rs 46,707 cr already issued, the Minister added.
COAL IN NEWS
Advertisement
Advertisement
R E N E WA B L E S
India is now being painted as a climate villain, a polluting villain that under the name of climate -commons opposes any
REC mechanism not being honoured by most States; Rays Power taps APTEL
Most States are still not honoring the REC mechanism available for solar photovoltaic power plants subjecting them to financial strain. A turnkey solutions provider for solar PV projects having set up 3 solar parks in Rajasthan, the company has knocked at APTEL (Appellate Tribunal for Electricity) seeking justice making various regulatory commissions respondents. A perfect business model of projects based on REC mechanism, which the Govt had promised has been put to test as most State regulators are yet to implement the mechanism. The company has mentioned that a similar petition filed by the Indian wind power association. There is immense potential in harnessing the potential of the solar power provided all the regulatory commissions meet and enforce renewable purchase obligation. This would provide much needed boost to the new and renewable energy sector in the country making it cost effective. Source: Business Line, Dated: 07/01/14
10
NEWS BRIEFS
Providing succour for the power starved South, the region is expected to have access to additional electricity flow of about 1,500 MW once the all India national power grid becomes fully operational.
Maharashtra State Power Generation Company Ltd (Mahagenco) has closed down the unit No 5 of the 1330MW Parali thermal power station (TPS) due to shortage of coal.
As part of its diversification programme, the NHPC inked a deal with the Kerala government to set up an 82 MW wind farm in the state's Palakkad district. Welspun Energy Limited, 100 per cent owned subsidiary of Welspun Group, is looking to invest Rs 1000 crore inPunjab to for 160 MW solar power plants. Infrastructure major L&T has secured an engineering,
Prime MinisterManmohan Singh laid the foundation stone for a 2,800 megawatt nuclear power plant near Gorakhpur village in the Fatehabad district of Haryana. The Goa government has launched round the clock call centre for power consumers in its efforts to streamline the complaint mechanism. The call centre is available at a dial of 135. Power equipment maker BHEL has renovated, modernised and uprated a 200-MW thermal power unit at Obra in UP . This is a Russian machine .
procurement and construction (EPC) order from a Saudi Arabian Oil Company - Saudi Aramco. This order has been secured for the construction of 55 km of Double Circuit Overhead Transmission line and Underground Cabling. NTPC has signed an initial agreement with the Geological Survey of India to set up a geothermal power project at Tattapani in Chhattisgarh. The government will launch its first wind energy mission this year to give a boost to the renewable source and putting it in the same league as the high-profile solar mission. The 'National Wind Energy Mission (NWEM), which would be launched around the middle of the year, would give incentives to invest, east land clearances and regulate tariffs. But unlike the flagship 'National Solar Mission' it would not involve projects for bidding. It would act as a "facilitator". The government has finally decided to start implementing the 220 -kv power transmission line that would link the arid Ladakh desert with the national grid. ThePGCIL will implement the Rs 2076.56 crore project that will be jointly funded by the centre and the state government but will eventually become property of the J&K state. CCEA has approved the project. The power ministry is expected to finalise the Cabinet note by this month-end on the proposal of hiving-off POSOCO, an arm of state-run Power Grid Corporation, into a separate entity.
Bhagyanagar India Ltd has commissioned a 5 MW solar power photovoltaic plant at Munipally in Medak district of Andhra Pradesh, taking its installed solar power generation capacity up to 10 MW.This unit has been set up with an investment of Rs 29 cr.
Civil works of Rahughat Hydropower Project, a priority project of the govt, have finally started, 3 yrs after the Nepal Electricity Authority (NEA) awarded contract to IVRCL Infrastructure of India.
Adani Power has fully commissioned the 1,320 -MW coal-fired power project in Rajasthan taking its overall electricity generation capacity to 7,920 MW.
The second unit of the Kudankulam Nuclear Power Plant (KKNPP) will start generating electricity from September. 95 % of the work for second unit of the plant has been completed and commercial operation startsfrom the unit by Sept14
Adani Power Ltd has set a record by surpassing it and attaining the highest generation of 4,644 MW. This makes it the only power station of such a size to reach a significant milestone in electricity production.
The average price of electricity sold on IEX rose to Rs 3.22 per unit in December even as volumes remained mostly flat in the same month. The total purchase bids stood at 3,800 million units while the sale bids touched 3,812 million units.
NTPC has signed an agreement with the Geological Survey of India to set up a geothermal power project in Chhattisgarh.
11
Thermal capacity of 1560 MW has been added during the month of November, 2013 after commissioning of Dhariwal TPP Unit -I (300 MW), Shree Singaji TPP Unit-I (600 MW) and Barh STPS St:-II, Unit IV (660 MW).
Hydro capacity of 75 MW has been added during the month of November, 2013 after commissioning of Nimmo Bazgo, HEP, Unit-I (15 MW) in J&K by NHPC and Uri-II, HEP, Unit-II (60 MW) in J&K by NHPC
In the transmission sector 286 ckm of 220 kV AC Lines and 940 ckm of 400 kV AC Lines have been laid during the month of November, 2013.
Advertise with us
Dear Readers, We thank you for your encouraging response and support towards the PSAG Newsletter. In our efforts to make this newsletter even more informative, we request you to send your suggestions and valuable feedback to the editor at newsletter.psag@gmail.com. We are glad to inform that you can now advertise in PSAG Newsletter with us (conditions apply), which has a readership base of over 2500 online readers associated with the power sector. Team PSAG
No Nuclear capacity has been added during the month of November, 2013.
+91-8126930737 +91-8126673268
Generation Performance
The overall generation during the month of Nov, 2013 was 77,254.18 MUs as compared to 72,965 MUs generation achieved, a growth of 3.34% in thermal generation, 29.18% in hydro generation, 1.86% in nuclear generation and 70.78% in the imported power from Bhutan have been achieved in the month of Nov, 2013 in compare to the corresponding month of the last year. During the month 5.88% growth was registered in generation as compared to the generation performance of November, 2012. There was a shortage of 3159 million units in supply as compared to demand during November, 2013* whereas the shortage was 7274 million units during the same period last year i.e., while shortage was 9.3 per cent in November, 2012, it was only 4.1 per cent in November, 2013. Shortage of peak power demand was 2.9% in November, 2013 as compared to 9.1% in November, 2012. CONTACT US : mail@ : newsletter.psag@gmail.com
2200+ Subscriptions
of publishing newsletter weekly is to provide a digital collection of all power sector news in one newsletter, this will help all power sector professional to update themselves without loosing time & money, and that can be referred anywhere, anytime & can be kept for future reference.
Vote of thanks, The Team, Power Sector at a glance would like to thank Prof. Anil Kumar (Head of Department), Prof. Mohd. Yaqoot (Asso. Professor) Power Management, University of Petroleum and Energy Studies, Dehradun, and other faculty members for their extreme support and guidance in publishing the newsletter.
Prashant Dudi