Discoms arbitrarily shutting off solar power, government tells CERC

The Ministry of New and Renewable Energy (MNRE) has complained to the Central Electricity Regulatory Commission (CERC) that some discoms are not fully evacuating the solar power available to them, resulting in losses for solar developers. Discoms have been arbitrarily shutting off power from solar projects, for varying lengths of time, often during peak consumption hours. “Some load dispatch centres (LDCs) are asking solar projects to back down due to various reasons,” Tarun Kapoor, joint secretary, MNRE, said in an August 2 letter to Shubha Sarma, secretary, CERC. ‘Back downs’, or temporary disconnection of some power sources from the grid, sometimes become inevitable if there is oversupply to the extent that it strains the grid. It is up to the discoms’ LDCs to decide which power source should be blocked. “Solar power projects have ‘must run’ status as there is no fuel cost,” said Kapoor’s letter. “If any backing down is to be done, thermal projects should be asked to back down, so that some fuel is saved.” But discoms prefer to back down power from renewable sources, such as solar and wind, since thermal power is usually cheaper. Also, renewable energy supply, by the very nature of sun and wind, is erratic or infirm, unlike thermal power. Though Kapoor’s letter does not name any discom, industry sources said those in Rajasthan and Tamil Nadu were the main offenders. Sunil Bansal, general secretary, Rajasthan Solar Association (RSA), said the problem had been plaguing the state for some time. “In fact, it has been increasing. On average, there are back downs of one hour a day during peak hours,” he said. “That amounts to 1,200 MW of capacity remaining unused.” Among the companies affected in Rajasthan are SunEdison, Welspun, Mahindra, SolaireDirect, Fortum and Reliance Power. “The Rajasthan Power Procurement Centre is shutting down its substations, claiming it is being done for maintenance purposes,” said Bansal. “In fact, they are buying power from the power exchange. Our association has taken it very seriously as it will affect future tariffs. The RSA will soon submit a petition to the Ministry of Power in this regard.” In Tamil Nadu, solar developers are considering approaching the Supreme Court for relief. “We have already petitioned the Tamil Nadu Energy Regulatory Commission (TNERC) through the National Solar Energy Federation of India, but TNERC told us it does not have the power to adjudicate in disputes with discoms,” said one of them. “This problem has been going on for the past two months. There are shutdowns for up to two hours a day, resulting in daily losses of several lakhs.” Companies affected in Tamil Nadu include SunEdison and Adani Green Energy. Thermal power producers are paid a two-part tariff — one part for fixed costs incurred and the other for variable fuel costs. Thus, even if discoms do not take their power, they continue to be paid for their fixed costs. Solar and wind developers do not have this benefit since their entire cost is primarily in installation. “When solar projects are asked to back down they do not even get the benefit of two-part tariff and are not paid anything for the loss of energy they suffer,” said Kapoor’s letter. “This can make solar power unattractive, particularly when projects are being awarded through competitive bidding and tariffs have come down drastically. Some solar power developers have now started asking for two-part tariff for solar also.” Kapoor’s letter noted that the CERC ought to emphasize solar energy’s ‘must run’ status. “Solar developers must be paid full tariff if they are forced to back down in rare cases,” the letter said. “It is requested that this issue is placed before the Forum of Regulators, so that some consensus can be reached on the issue.” Jahleel Addae Authentic Jersey

Power Dept served 15 day ultimatum to address Mokokchung power situation

The Mokokchung Town Lanur Telongjem (MTLT) and the All Ward Union Mokokchung (AWUM) today came out strongly against the Nagaland Government and the Power Department regarding the continuous disruption of electricity supply in Mokokchung town and adjoining areas. A press note from the AWUM served a 15 day ultimatum to the Power Department to provide circuit breaker in the 33 KV and 11 KV feeders immediately. It demanded that Mokokchung town and its adjoining areas be provided a separate line from the power transmission station at Aolijen, Mokokchung. Further, it demanded that Mokokchung town and its adjoining areas be given unlimited power supply except during natural calamities. Despite frequent damages to the main transformer and disruption of power supply/load shedding in Mokokchung town and its adjoining areas, the AWUM said that “till date the public of Mokokchung Town silently, patiently, and with great enthusiasm has been paying the electricity bill regularly.” The AWUM informed it has learnt that “one of the main causes of such problem is that there is no circuit breaker in the main transformers, while the revenue collection from Mokokchung town and its adjoining areas is the highest in Nagaland in terms of revenue collection based on power unit consumed and ration of power consumed.” Stating that the issue of power disruption is a perennial issue, the AWUM cautioned that if any untoward incidents take place due to the department’s negligence, the AWUM will “neither co-operate nor negotiate if such situation arises.” “If this ultimatum is ignored and treated as the previous representations, the first action and the response of the AWUM will be reflected in the functioning of the UEMB as experienced by the department during 2012-2013 in befitting and well organized manner this time,” it further warned. Don’t play with the public: MTLT Meanwhile, the MTLT cautioned that the concerned department “must not play with the public.” It reminded that the MTLT had demanded in 2015 that necessary machineries/equipment be installed to ensure proper power supply to the people of Mokokchung. It stated that “nothing has been done till date. It is high time that the Department be in tune with the changing needs of time and adopt upgradation accordingly.” As per the NO.MES/W-20/ 2015-16/130 dated 21 November 2015, the MTLT revealed that the Sub-Divisional Officer, Electrical Sub-Division, Mokokchung, had submitted the complete requirements to the higher authority. According to the letter, a team of technicians from Crompton Greaves Ltd Calcutta under Mecavo Power Works Dimapur performed survey at the 33/11KV RESS Mokokchung on the November 21, 2015. The MTLT revealed that the 11KV Bus-Bar has been found completely damaged and needs repair. Besides, defective parts were identified at other feeders viz., 33KV Main Incoming, 11KV Bazar, 11KV Ongpangkong, 11KV Yongpang, 33KV Alichen, 33KV Incomer, 33KV Longnak, 33KV Impur and 33KV Longsa. The MTLT demanded that immediate repairs/replacements be taken up in the interest of the public. It also stood by its demand for a new/standby transformer since 2015, stating that Mokokchung consumers are paying bills regularly. “According to the sub-division office in Mokokchung, there is no maintenance fund. The public needs to know how the departmental money is utilised in this case,” it added. It noted that failure to perform prompt action in undertaking the repair works is an indication of governmental and departmental failure. Corey Linsley Womens Jersey

A promising start to Uday scheme with state discoms reducing commercial losses and interest costs

State power distribution companies have sharply reduced commercial losses and interest costs, giving a promising start to Power Minister Piyush Goyal’s Uday scheme that aims to set right electricity distribution, the biggest bottleneck in the sector. The average power generation cost in the country has also come down by 13% to Rs 2.77 per unit in the three-month period ending June from Rs 3.19 per unit during April-June of 2015, a senior power ministry official said. Preliminary data available with states for the first quarter of the current financial year shows that most states have reported reduction in the aggregate technical and commercial losses, which include electricity that goes unbilled due to non-metering and pilferage. The commercial losses in Jharkhand have declined to 31.8% during the threemonth period from 41% before joining Uday, showed the provisional data available with the state. Uttar Pradesh that goes to polls next year has reported a fall in commercial loss to 33% in first quarter of the current financial year from the 34.2% in the corresponding period last year. The commercial losses in Rajasthan have decreased to 27.3% from 28.5%, while Punjab’s aggregate losses have fallen to 16.6% from 15.9%. The interest cost outgo of the state power distribution utilities has also reduced following takeover of debt by respective state governments. The interest burden of Uttar Pradesh power distribution companies has nearly halved to Rs 820 crore during April-June this year against Rs 1,742 crore in the corresponding quarter last fiscal. In Rajasthan, electricity distribution companies paid Rs 1,038 crore towards interest against Rs 1,961 crore in April-June quarter last financial year.Punjab posted Rs 166 crore savings and Haryana Rs 187 crore on interest outgo. These states joined Uday before March this year. At present, power distribution companies of 14 states are part of Uday. Puducherry will be the 15th state to join Uday and is likely to sign agreement next week. The provisional data has been provided by the states to the Union power ministry in review and monitoring meetings. The power ministry reviews progress of the Uday scheme in participating states in its monthly monitoring meetings. Besides, power minister Piyush Goyal has held an exclusive meeting to review its implementation while power secretary PK Pujari has taken four such meetings till date. The scheme is monitored at distribution companies’ level by their chairmen and at state level by chief secretaries or principal energy secretaries. The power ministry is putting in place a mobile application in two months to monitor the progress of Uday under 26 financial and operational parameters. The application will make data on progress in implementation of Uday in various states accessible to all. Uday aims at enabling discoms to turn profitable in the next 2-3 years through four initiatives —improving operational efficiencies, reducing cost of power, interest burden and enforcing financial discipline through alignment with state finances. The scheme mandates states to take measures like compulsory smart metering, upgrade of transformers and meters, promoting energy efficient LED bulbs, agricultural pumps, fans and air-conditioners to reduce commercial losses from 22% to 15% and decrease gap between cost of power and tariffs. Tyler Lockett Womens Jersey

Essar Oil’s fuel exports to fall in 2018/19 as focus shifts to local sales

Indian refiner Essar Oil’s fuel exports will sharply drop in 2018/19 as it ramps up local sales by doubling its retail network and turns some of its naphtha into profitable gasoline, its managing director said. Rising fuel demand, driven by India’s thirst for gasoline, is expected to help push the growth rate in the country’s fuel consumption ahead of China’s. Essar Oil, which operates the 400,000 barrels per day Vadinar refinery in western Gujarat state, directly sells gasoil and gasoline in the retail market through 2,470 fuel stations and exports about 45 percent of its refined fuels output. It plans to increase its retail sales outlets to 4,300 this fiscal year and to over 5,000 the next year, L.K. Gupta told reporters on Saturday, adding higher local sales would shrink Essar’s export to 25 percent. “All along, we were a country where people were aspiring for a bicycle and now we want at least two-wheelers (motorcycles and scooters)…65 percent of gasoline demand is from two-wheelers,” Gupta said. He said Essar is investing about $200 million to raise output capacity of its naphtha hydrotreater, continuous catalytic reformer and isomerisation units by 15-20 percent and set up new units to recover sulphur and manufacture propylene. These projects, to be completed by March 2018, will boost Essar’s profit from turning crude into refined fuels by $0.90 per barrel, Gupta said. Expansion of units would halve Essar’s naphtha exports to one cargo a month and raise annual gasoline output by 10-15 percent from the current 3-3.5 million tons, he said.  Erik Gudbranson Womens Jersey

OIL pays Rs 24.9 million royalty to Arunachal Pradesh

Oil India Limited has made a payment of Rs 24.9 million to Arunachal Pradesh against differential royalty on oil for February 2014 to March this year. General Manager of Oil India, Duliajan (Assam), A K Acharya handed over the cheque to Chief Minister Pema Khandu in his office yesterday. The GM briefed Khandu on the pending issues of Ningru oil field and requested him to expedite the Petroleum Mining Lease, an official release said here. He also apprised Khandu of the yet to be signed MoU of 10 MW gas power plant. The Chief Minister assured him to fast-track the pending issues and asked the firm to take up more activities in the state as it has abundant mineral oil resources which need to be tapped properly, the release said. Robert Griffin III Womens Jersey

ONGC on recruitment drive for 417 posts; invites GTs at E-1 level in Engineering & Geo-Sciences

Interested candidates have to apply online through ongcindia.com. The last date to apply is August 10, 2016. The Oil and Natural Gas Company (ONGC) recently announced 417 engineering and geo-sciences vacancies. Through the recruitment drive, the energy major invites application from interested candidates who have successfully cleared GATE-2016 examination. The candidates will be appointed as Graduate Trainees (GTs) at E-1 level in Engineering & Geo-Sciences posts. The application process has already started and the last date to apply is August 10, 2016. The advertisement/notification clearly mentions that only the GATE – 2016 examination score will be valid for the recruitment. The results of any other examination, even GATE – 2015, will not be considered. Candidates will be shortlisted on basis of their GATE 2016 and personal interview scores. Eligibility criteria ONGC has invited application for varied posts including Assistant Executive Engineer, Chemist, Geologist, Geophysicist, Materials Management Officer, Programming Officer and Transport Officer posts. The educational qualifications vary for different posts advertised. Age limit for general candidates is 30 years as on January 01, 2016. Age relaxation for ST, SC, OBC, physically disable candidates are as per the Government rules. Age relaxation will be extended to departmental candidates to the extent of their service rendered in ONGC.  Scott Wilson Jersey

Govt. Of Sri Lanka: Huge tender for oil pipelines next week

The Government will next week award a tender valued at more than Rs. 8.7 billion for the construction of four pipelines to carry oil from the Colombo harbour’s Dolphin Pier to Kolonnawa. Bidders from India, Malaysia, China and the United States have been shortlisted to construct the pipelines, each six-and-a-half kilometres long, to replace the 69-year-old oil pipelines in use, Ceylon Petroleum Corporation (CPC) Chairman T.C. Jayasinghe said. The Cabinet has given approval for the project and the tender will be awarded to the lowest bidder by the tender board on Friday, he said. Two pipelines are for jet and crude oil while the others are for refined petrol and diesel. “The existing pipelines are old and their capacity is less; hence, the transportation of oil takes long resulting in the CPC having to pay demurrage at times. There are also leaks in some places leading to wastage,” he explained. The pipelines would run underground so there would be no logistical issues such as having to relocate people. The project was likely to be completed in one-and-a-half years, he said. Mr. Jayasinghe said the company which won the tender would have to undertake the US$ 60 million (Rs 8.7 billion) project using its own funds which the government would pay back in 12 years after a three-year grace period. Jonnu Smith Authentic Jersey

Government may cut gas price for producers by 20 per cent in October

Natural gas price paid to producers like state-owned Oil and Natural Gas Corp (ONGC) and Reliance Industries is likely to fall 20 per cent to $ 2.45 in October. This will be the fourth reduction in last 18 months following the formula approved by the government in October 2014. Price of natural gas produced from existing fields of ONGC and RILBSE 2.15 % is likely to fall to $ 2.45 per million British thermal unit with effect from October 1 as opposed to $ 3.06 currently, a senior official said. This rate is on gross calorific value (GCV) basis. The gas price was last cut on April 1 from $ 3.82 per mmBtu to $ 3.06 per mmBtu. On a net-calorific value (NCV) basis, the gas price was on that day cut to $ 3.4 per mmBtu as compared to $ 4.24 previously. On NCV basis, the new gas price is likely to be $ 2.7 from October 1.  Jake Ryan Jersey