Rajasthan is most attractive solar project destination in India, proves NTPC auction
Rajasthan confirmed its position as the most attractive solar project destination in the country with the latest NTPC auction in the desert state, which saw the winning bids falling to Rs 4.35-4.36 per kwH. Of the 130 MW on offer, 50 MW was won by Shapoorji Pallonji Infrastructure Capital and 60 MW by Mahindra Susten, both offering to sell electricity produced from their projects at an identical Rs 4.35 per kwH. The remaining 20 MW was won by Prayatna Developers of the Adani Group at Rs 4.36 per kwH. In these reverse auctions, the developer that offers to sell electricity at the lowest price wins. The latest wining prices are just a shade over the lowest ever offered by a solar project developer in India — that, too, in Rajasthan. Fortum Finnsurya bid Rs 4.34 per kwH to win a 70 MW project at the last NTPC auction in Rajasthan in January. In that auction, however, land for the project was ensured at the Bhadla Solar Park in Jodhpur district, which has the highest solar radiation in the country. In the current case, no land is being provided. Developers will have to locate and develop the land themselves — a condition which may have contributed to keeping the tariff marginally higher. Solar tariffs fell steeply in 2015, but appeared to have bottomed out after the Bhadla Solar Park auction. In at least five auctions since — in Maharashtra, Gujarat, Uttar Pradesh, Andhra Pradesh and Chhattisgarh — the winning tariff remained stuck at the reserve price of Rs 4.43 per kwH (barring one bid of Rs 4.41 per kwH in Maharashtra). In other auctions, the price was higher. Fears were expressed that aggressive bidding had pushed solar tariffs too low and a correction was likely. Developer interest also seemed to have been tapering off in some of the auctions this year. The Gujarat auction of 160 MW of capacity in late-June, for example, drew only three bidders. The latest Rajasthan auction, however, has belied those apprehensions. Not only has the tariff fallen, but the interest shown was also enormous, with 21 developers, including many of the top names in the business, making bids. The auction thus underlines Rajasthan’s inherent solar advantage, due to the high radiation it receives. It also shows that both tariff and developer interest depend crucially on project location. Rajasthan has the highest solar installed capacity in the country, around 1,286 MW out of the total of 7,564.86 MW. Jaleel Scott Womens Jersey
India’s smart street lighting market to touch $1.8 bn by 2022
The “smart” street lighting market in India is expected to grow at an annual rate of 42.2 per cent to reach USD 1,868.9 million by 2022 as adoption of LED and solar powered systems rises in the country, a report said. According to Infoholic Research, India’s fast-developing public infrastructure — demand for roads and highways, smart cities and smart homes — is driving adoption of smart street-lighting. “In India, smart street-lighting is at the nascent stage and is expected to grow rapidly over the next two years. New installation projects for smart street-lighting have been launched starting 2015 and many more projects for replacing street-lights are expected in the coming years in urban and rural areas of India,” the report said. As a result, a major share of revenues is expected to be realised from urban zones, which are expected to aggregate USD 1,304.8 million in smart street-lighting spending by CY2022. Network components is expected to be about USD 674.6 million, while connectivity technologies and lighting lamps are estimated to touch USD 412.6 million and USD 127.3 million, respectively. “Smart cities and smart homes are expected to drive the smart street-lighting market and also ensure the penetration of cloud-based smart street-lighting in the near future. Due to long gestation RoI estimates, more and more smart street-lighting projects are likely to be implemented via the PPP model,” Infoholic Research Research Manager Tariq Ahmed Shaik said Sathya V, Research Analyst at Infoholic Research, said governments, municipalities, and local bodies are widely expected to shift their focus to smart street-lights to cut down power consumption and maintenance costs. Kurt Warner Authentic Jersey
Why Zero Electricity Is An Immense Insult For These UP Villages
As the sun sets in a small village in Eastern Uttar Pradesh, it’s lights out. In huts and in small neighbourhood shops, kerosene lamps flicker. The rub lies in the fact that barely a five-minute walk away is the Rihand Dam, one of the largest in the country. Embedded around it are as many as 10 power plants, some operated by the centre and others by the state government, that collectively generate over 10,000 megawatts of electricity. This is easily one of the most prolific power centres in India. Yet, the Godara Tola village gets no electricity despite its location. Jai Mangal, Ram Lagan, and Kamal Bhan, all approaching their 70s, say that in the 1960s, the village they lived in was submerged as the massive new reservoir was set up. They relocated to Godara Tola, two km away, encouraged by promises of 24X7 electricity. Decades later, the village does not have even an electricity pole.” I don’t know if I will be able to see power in my lifetime. When we gave up our land and moved here, Jawahar Lal Nehru was the Prime Minister. Since then many came, many have died, our situation still remains the same,” says Jai Mangal, standing near a hill from where the Rihand Dam can be seen. Jai Mangal, Ram Lagan, and Kamal Bhan, all approaching their 70s live in a village that does not have even an electricity pole. Jai Mangal, Ram Lagan, and Kamal Bhan, all approaching their 70s live in a village that does not have even an electricity pole. Of Sonbhadra’s 1,500 villages, nearly 400 have never been electrified. The others are serviced with an erratic supply that’s never enough. Delivering power to villages was vowed both by the central and state government ahead of the most recent election. The centre says that Chief Minister Akhilesh Yadav has electrified just three villages between 2012 and 2014. The 43-year-old Chief Minister’s claim is staggeringly different-he alleges that nearly 97,000 large villages have been transformed with at least a few hours of electricity every day. With Uttar Pradesh entering election season, Rupa Devi, 25, can predict the promises that she and others will soon be fed. Originally from a village in Chhattisgarh which has electricity, she moved after marriage to Sonbhadara where she has found a way to utilize the electric wires and poles that have stood impotent for decades. She uses them to hang her washing. B.J. Hill Authentic Jersey
Many don’t have power in ‘power-surplus India’
In India, 300 million people don’t have access to electricity, power cuts are rampant and per capita power consumption is significantly lower than the world average. In sharp contrast to this, the Power Ministry says India is power-surplus. “India is likely to experience the energy surplus of 1.1 per cent in 2016-17,” says the Load Generation and Balance Report (LGBR) 2016-17 of the Central Electricity Authority (CEA), which functions under the Power Ministry. Surplus or deficit is determined by calculating the difference between the demand for power and availability. It is the definition of “demand” that lies at the base of this paradox. ‘Real demand’ “While calculating power demand, only people who are connected to the grid and have access to electricity at present are taken into consideration,” S.D. Dubey, Chairperson of the CEA, told The Hindu. The “real demand” that encompasses all citizens would be known only when India achieves the goal of ‘Power for All’, towards which the government is actively working, he says. Taking this definition into consideration, there has been a significant improvement. The deficit has gradually reduced from 11 per cent in 2008-09 to 2.9 in 2015-16 and for the first time, there will be a surplus in 2016-17. But if there is surplus power, why do we have power cuts? “State discoms are unable to buy electricity due to poor financial health. There is unused power lying in the grid,” Mr. Dubey said. Transmission and distribution constraints are also responsible for power cuts. To solve this problem, the government launched the Ujjawal Discom Assurance Yojana (UDAY) in November 2015. By operational and financial turnaround of discoms, UDAY is expected to facilitate reliable, adequate and sufficient power supply to consumers, among other things. The state of power in the country is best captured by looking at the per capita power consumption. On an average, in 2015-16, the per capita consumption in India was 1,070 kWh, less than the world average of 3,026 kWh, as per data from the International Energy Agency. It is also the lowest among BRICS nations. The low per capita consumption is mainly due to a large population, a low per capita income and a huge population not having access to electricity. Note that six States — Madhya Pradesh, Kerala, Odisha, Sikkim, Mizoram, Tripura — will be power-surplus in 2016-17 but the per capita availability in the States is lower than the national average. Overall, as per LGBR, 17 States will have power-surplus in 2016-17. Power demand for India grew by 6.6 per cent in 2014-15 and 4.2 per cent in 2015-16. In the last two years, Bihar — which has the lowest per capita power availability, witnessed the highest percentage growth, with demand increasing by around 25 per cent in both years. This is indicative of more people getting connected to the grid, the official said. To meet the growing demand for electricity, the government is increasing the installed generation capacity as well. “We hope to be power-surplus even when all Indians will have access to electricity,” Mr. Dubey said. Dennis Maruk Jersey
Power generation target for SJVN 8,700 mn units for 2016-17
Power generationtarget of 8,700 million units has been fixed for Sutlej Jal Vidyut Nigam (SJVN) forFY 2016-17. As per the Memorandum of Understanding (MoU) signed between Union Power ministry and SJVN, the expected revenue from operations has been pegged at Rs 2,300 crore while the profit before taxhas been assessed at Rs 1,050 crore from its 1500 MW Nathpa Jhakri Hydro Power Station, 412 MW Rampur Hydro Power Station in Himachal Pradesh and 47.6 MW Khirvire Wind Power Project in Maharashtra. TheMoU was signed betweenPradeep Kumar Pujari, Secretary (Power), Government of India and R N Misra, CMD, SJVN. Ozzie Newsome Authentic Jersey
‘Cancel power plant contracts’
The YSRC has criticised the government for “breaching” the set norms in allowing power plant contracts to favour a few. The government was adopting a tailor-made system by paying exorbitant rates and opting for power generation though there was no immediate need for additional power. “This could well be a major scandal. We demand that the government terminate the contracts and order an inquiry into the award of power plant contracts,” YSRC MLA and PAC chairman B. Rajendranath Reddy said. The scope for corruption was evident from the clearances given to two power plants with an estimated Rs. 6 crore per megawatt. Authentic Jersey
Hydrocarbon exploration: PAC pulls up officials for excessive delay
Public Accounts Committee of Parliament has slammed Secretaries of Government of India for inordinate delay in deciding the issue of exploration of Ratna and R series hydro carbon fields by private sector and demanded to see the annual confidential reports and annual performance reports of of all officers in the Negotiating Team of secretaries and those assisting it. Calling it the “rarest of rare cases of extraordinary negligence and efficiency,” the PAC headed by K V Thomas on Tuesday told the representatives of Ministry of Petroleum and Natural Gas and Oil and Natural Gas Corporation that appeared before it that the process of reaching up to a decision to finalilse the Production Sharing Contract was not completed even after 23 years of policy decision, 19 years of award and 16 years of approval of Cabinet Committee on Economic Affairs. Jordan Akins Authentic Jersey
Aim of bidding for small fields is to boost production: Dharmendra Pradhan
Union Minister Dharmendra Pradhan said that the aim of the bid round for the upcoming auction of 46 discovered small gas and oil fields is to boost production and reduce the dependence on imports by 10 per cent by 2022. The minister of state for petroleum and natural gas, who is visiting Houston to hold roadshows to promote bidding of oil fields, met top executives, lobbyist and Indian-Americans associated with oil and gas industry yesterday at a dinner here hosted by Council General of India, Houston, Anupam Ray. Starting the first of the two planned roadshows here to auction 46 discovered small gas and oil fields, Pradhan said he is confident of receiving good response for blocks. He said the aim of the bid round is to enhance the production of oil and gas, in compliance with the government’s mission of reducing dependence on imports by 2022 by 10 per cent from the current 78 per cent, officials said. India will seek participation of global oil and gas firms in its upcoming auctions for discovered small fields, as Pradhan will meet American oil and gas industry leaders during his week-long visit aimed at attracting FDI and new technologies in the Indian exploration and production sector. Pradhan will seek cooperation from US’ oil and gas industry for infusion of new and innovative technologies and best practices for unlocking its indigenous hydrocarbon potential. Pradhan had a brief one-on-one meetings with technology company heads, energy company executives, various Indian-American organisations of interest, Indo-American Chamber of Commerce of Greater Houston, University of Houston, Reliance Holding USA, US-India Chamber of Commerce DFW, Infosys, Vinmar International, Mahindra USA. Earlier in the day, Pradhan inaugurated the ‘Data Centre’ which can be accessed by all interested investors to view the technical data related to the small fields being offered under the upcoming bid round. Chief executive officers (CEOs) of all big firms and personnel from embassies are likely to attend the launch of Discovered Small Fields (DSF), according to the DGH. Buster Skrine Jersey
Gas migration row between ONGC- Reliance: Government says Shah Panel can decide on compensation
The petroleum ministry has told the Justice AP Shah committee on the migration of gas from ONGC-held gas blocks to adjacent fields of Reliance Industries that its remit includes deciding on possible compensation, if any, to the government as well over any “unfair enrichment”. That effectively rules out any other remedy under the production-sharing contract (PSC) or the possibility of fresh arbitration between Reliance Industries and the government, clearing the way for the single-member committee to issue its report on the matter by the end of July. The petroleum ministry’s June 7 communication to the panel, which is not in the public domain, came after Directorate General of Hydrocarbons (DGH) contended the government was the sole custodian of natural resources and compensation if any should go to the Centre rather than ONGC. Shah then issued an order regarding the matter. “The issue before it is the dispute between ONGC and RIL which includes the question of whether there exists a claim for unjust enrichment by ONGC against RIL,” Shah said in a May 9 ruling. “The committee clarified its mandate does not extend to considering claim, if any, between the government and RIL. If the government has any claim against RIL it can always resort to appropriate remedy under the production-sharing contract.” DGH’s submission had prompted the Shah panel to ask the government for its view. According to RIL, the intervention by DGH meant the matter needed to be enquired into afresh. “RIL believes that any claim made by government against it would need to be resolved in another forum and therefore disassociated from the committee in light of new claims by DGH,” Shah recorded in the May 9 order. Responding to the May 9 order, the petroleum ministry assured the committee on June 7 that the government is in fact included under the terms of reference (ToR). hese allow the panel to quantify enrichment, if any, to RILheld blocks and to “make good the loss to ONGC/government on account of such unfair enrichment to the contractor”. RIL also wrote to the petroleum ministry seeking fresh discussions on the subject. ONGC has sought compensation from RIL for what it says is the loss of more than 18 billion cubic metres (bcm) of gas that migrated from its Krishna-Godavari Basin fields as well as the gas left stranded due to allegedly poor reservoir management by RIL. It’s seeking the cost of the gas with 18% interest. RIL declined to comment on the matter. “It would be inappropriate to comment on the submission itself in deference to Justice Shah’s instructions to the parties to maintain strict confidentiality,” the company said in an email to ET. “We have already made our detailed submission to the Hon’ble Shah Committee regarding the filing made by (Canadian partner) Niko.” ONGC’S COMPENSATION CLAIM ONGC has submitted a breakup of its compensation claim to the panel, ET has learnt: “RIL should be asked to compensate the state explorer for 9.476 bcm of gas that RIL has already produced, 1.435 bcm of estimated gas production from 2016 to 2019, and 7.3359 bcm of gas on account of poor reservoir management.” The state-owned company stayed away from the ToR debate and on July 8, in a fresh communication to the Shah panel, reiterated its claims. RIL had initially boycotted the Shah panel proceedings before reversing its stand in February. The panel was established last year. “It is RIL’s position the committee has no power to adjudicate any matters or issues concerning the claims of ONGC and any such recommendation of the committee, if made, would in no manner be binding on RIL,” the company had said in February. “Nothing in the D&M report points towards any wrongdoing by RIL.” The reference is to the November 2015 report by US-based consultant DeGolyer and MacNaughton (D&M) that said about 12 bcm of ONGC’s gas had migrated to RIL’s fields. The Shah committee is examining the findings of this report. The questions before the panel to be decided upon are acts of “omissions and commission on the part of all stakeholders, undue enrichment to block KGDWN-98/3 (held by RIL), and compensation, if any, to be paid to ONGC/government”. In its submission to the panel, ONGC said RIL and the regulator had known about the fields being connected more than a decade ago. “RIL and DGH had full prior knowledge of continuity and connectivity of Pliocene channels of all the blocks in question, and that there were acts of omission on the part of RIL right from 2002,” ONGC told the panel, ET has learnt. “DGH as regulatory authority should have initiated timely discussions/actions under PSC (production-sharing contract), P&NG (petroleum and natural gas) rules.” ONGC subsequently submitted another appraisal report prepared by D&M in 2003 that was included in Niko’s annual disclosure to the Canadian Stock Exchange, which said, “A portion of the field accumulation straddles the western boundary of the block (ONGC)”. Further, the state explorer told the panel that RIL and Niko Resources had prior knowledge that their development plan for exploration in KG Basin will deplete gas reserves in ONGC’s block. However, RIL is believed to have rejected this and told the Shah committee that the report reflected a “simplistic consideration of seismic data and very limited well data confined to discover wells in Block KG-DWN-98/3 (Block KG-D6), with no modelling but rather with a reliance on D&M’s general experience in geology”. ONGC would have had access to this information and could have raised the matter with RIL or DGH at the time rather than 10 years later, RIL said in its communication. “Up until this point in time, ONGC had yet to drill wells and discover any hydrocarbon in this area,” RIL told the committee. “As RIL has explained to the committee, seismic data may suggest continuity of channels across block boundaries, but is entirely insufficient in conclusively establishing presence of reservoir and reservoir connectivity.” Cincinnati Bengals Womens Jersey
GSPC asks ministry, Bharat Petroleum to make Sabarmati Gas ‘more active’
Gujarat State Petroleum Corporation (GSPC) has written to the Union ministry of petroleum and to Bharat Petroleum (BPC), its joint venture partner in Sabarmati Gas (SGL) to make the latter’s management more active. “The idea is to see that SGL operates at par with Gujarat Gas, the other CGD (city gas distribution) entity of the state government. We want that the operations of SGL be as aggressive as Gujarat Gas. The Centre and BPC have agreed and further deliberations are on,” said Saurabh Patel, minister of energy and finance, Government of Gujarat. J N Singh, additional chief secretary, finance, and managing director of GSPC, said the letter had been written with an intention to expedite expansion activity in the CGD business in the state. While GSPC with its subsidiary, GSPL, holds 25.01 per cent stake in SGL, Bharat Petroleum holds another 25 per cent, with the rest held by institutional investors. SGL operates in the domestic, industrial and commercial gas segments through a piped natural gas network and compressed natural gas (CNG) outlets. The service area is the north Gujarat districts of Gandhinagar, Mehsana and Sabarkantha. The state has plans to double the domestic gas consumer base from the current one million-plus consumers. The year will also see 45-50 CNG stations being added. In the past five years, domestic gas consumers of SGL rose by 87 per cent, up from 46,128 in 2011 to 86,427; CNG stations increased from 16 to 38. For 2014-15, net sales were Rs 910 crore. Apart from domestic gas consumers, SGL services 244 industrial and 471 commercial gas consumers in Gujarat. Jack Johnson Authentic Jersey