Indian Civil Aviation Driven By Low Cost Domestic Market
Domestic and international Indian air traffic has increased and would have been higher if fuel prices had been lower, a top industry consultant said. Kapil Kaul, CEO – India and Middle East for consultancy firm Centre for Asia Pacific Aviation (CAPA) said domestic air traffic grew faster than international. For the first time in years, Indian carriers saw modest profit of $122 million, mostly owing to low fuel prices. “The impact of fuel price on profitability is estimated at about 12 per cent,” Kaul said at the NewsX – Sunday Guardian Defence and Aerospace Summit in New Delhi on Wednesday. “Amongst the top 20 LCCs (low-cost carriers) in the world, IndiGo was the fastest growing over the last 12 months with seat capacity up almost 28 per cent year on year,” he said. IndiGo is leading CAGR among the local LCCs. From FY 2002 – FY 2017 this rate was 48.2 per cent. “This is something to be proud of as Indians,” Kaul said. Jet Airways was the only airline to see lower costs, all others saw an increase. Last 10 year’s traffic growth has been more than the growth achieved in last 50 years. Isaiah Oliver Authentic Jersey
Narendra Modi’s electricity push fails to light rural India
Screams alerted Dadasaheb Vidhate to the fire trapping three of his children in the family’s thatched-roof hut in rural India. “Neighbours rushed to help douse the fire, but we couldn’t save anyone,” Vidhate, 45, said of the blaze four years ago, which he blames on an overturned kerosene lamp. “My children were burned alive before my eyes.” With no electricity, the one-room mud shelter on a farm 240 kilometers (150 miles) east of Mumbai had only the lamp for light — common in India, where power remains unaffordable, inadequate or simply non-existent for 240 million people. If their hut had been connected to the power grid, Vidhate believes it may never have caught fire, killing Aakash, 15, Manisha, 13, and 11-year-old Vikas, he said. When Prime Minister Narendra Modi pledged to bring reliable power to all citizens during the campaign that propelled him into office in 2014, the same year the World Bank pegged India as home to the world’s largest un-electrified population. While his government has made progress meeting its 2019 deadline, many families are still missing out, holding back some of India’s poorest, most-vulnerable citizens and preventing the country from achieving its development ambitions. In the year after Modi’s election, an audit identified 18,452 villages without electricity. Since then, that number has fallen by a third, leaving only 1 percent of the country’s total villages to be electrified, the data show. But a closer look at what constitutes “electrified” reveals how much further India has to go. About 250 kilometers east of New Delhi in the village of Fateh Nagla in Uttar Pradesh, India’s most-populated state and one of its poorest, the dairy shop runs on a combination of solar power and a led battery, while its three flour mills use diesel generators. In the afternoons, men wait their turn to charge their mobile phones off a wire rigged up to an electric water pump, according to village head Susheel Kumar. Though only 15 of its roughly 170 homes are connected to the power grid, the government lists Fateh Nagla as electrified, Kumar said. That’s because the village barely meets the central government’s definition: the basic infrastructure is in place; power is being supplied to schools, health centers and other public places; and at least 10 per cent of households are receiving electricity. In winter, when the sun sets at around 5:30 p.m., only a few solar-powered lights or kerosene lamps break the darkness. And even homes with a power connection are bereft of light as it switches on only after 10 p.m. and back off early in the morning, according to Kumar. That makes it difficult for children to do their homework, stunting education in a village where about 90 percent drop out of school by eighth grade, he said. Throughout Uttar Pradesh and neighboring Bihar — with combined populations approaching the size of the U.S.—fewer than half of rural households have power connections, according to data from the central government. But, by its definition of electrified, the same data as of Monday showed only 13 villages in Uttar Pradesh and 598 in Bihar lacked power. “The government’s definition of an electrified village doesn’t make sense,” said Aruna Kumarakandath, who leads renewable energy research at New Delhi-based Centre for Science and Environment, a non-profit public advocacy organization. “How can we say a village is electrified if 90 percent of homes don’t get power?” The power ministry’s top bureaucrat, Pradeep Kumar Pujari, sees building infrastructure to power villages as just the first step toward full electrification. “By creating the infrastructure, we are creating demand from rural households,” Pujari, the secretary of the ministry, said this week. “There are challenges involved in this and this will not happen overnight. But it will happen slowly.” Modi’s political fortunes ride on reaching his “power for all” goal, said Sandeep Shastri, a political scientist and pro-vice chancellor at Jain University in Bengaluru. “It addresses the under-privileged sections of society and defies accusations that his government works only for the rich,” Shastri said. “The success of the program can have a big, positive impact on Modi’s political fortunes, while a failure can boomerang badly and bolster allegations that this government’s promises are more of rhetoric and less of action.” Power shortages cost India the equivalent of about 7 per cent of gross domestic product, the World Bank said in 2010, when the country witnessed supply deficits of almost 15 per cent. The government said the gap narrowed to less than 1 per cent as of November, although that deficit only measures supplies to customers already connected to the grid. The power problems in India, which in 2012 suffered one of the worst blackouts in history and still has some 50 million rural households without electricity, are hardly about building more power plants or access to fuel. The country uses only half its generation capacity and its state-run coal miner is the world’s largest. Power plants, as well as installing poles and wires for distribution, is only a small part of the challenge ensuring reliable supply to poor households, said Ashwini Chitnis, a senior research associate at Prayas, a non-profit advocacy group that focuses on energy, health and education. “While efforts toward putting in place infrastructure for electrification are absolutely necessary, they are not sufficient,” Chitnis said. Some state-run power retailers consider supplying rural homes as an unattractive business proposition because of thin usage and below-cost tariffs, according to Dinesh Arora, chief executive officer at REC Power Distribution Co., a unit of state-run Rural Electrification Corp., which oversees the village electrification efforts. Power distributed to farmers and households under the poverty line is sold at below-market rates, the subsidies for which state governments are slow to repay. In addition, electricity retailers lose about one-quarter of the electricity they have for sale through technical and commercial losses—the industry term for power theft. A federal government-led program aims to lower that to an average of 15 percent by 2019 with technology that tracks theft and
Nawaz Sharif, World Bank CEO discuss Indus Waters, India’s power plants
World Bank Chief Executive Officer Kristalina Georgieva called on Prime Minister Nawaz Sharif in Islamabad on Thursday to discuss implementation of the Indus Waters Treaty and the dispute between Pakistan and India over the construction of two hydropower projects by New Delhi. India is constructing two hydropower projects on the Chenab river. Pakistan has objected to the construction of the 850 MW Ratle and 330 MW Kishanganga hydropower schemes, saying that both projects would have adverse impact on the flow of the Chenab and Neelum rivers. Prime Minister Nawaz Sharif expressed hope that the World Bank would take the lead in dispute resolution through the Court of Arbitration, a statement issued by the Prime Minister’s House said. Both countries initiated separate processes in the World Bank under the Indus Waters Treaty (IWT), with India requesting the organisation for appointment of a “Neutral Expert”, and Pakistan calling for the appointment of the chairman of the Court of Arbitration. The World Bank had, in December, announced a pause in arbitration between Islamabad and New Delhi on the two dams being constructed by India, calling on both countries “to consider alternative ways to resolve their disagreements”. Georgieva in a video statement shared by the Prime Minister’s Office said she was “very impressed by the positive change that has happened” in Pakistan since her last visit to the country in 2011. She was pleased with the visible improvement in Pakistan’s infrastructure. “The benefits of development are directed to those who need it the most,” she added. The WB’s investment — which can go up to $1.5 billion a year — has contributed to the economic prosperity and development of the country, Georgieva said. Matthew Stafford Authentic Jersey
Power generator NTPC Ltd raises 500 million euros via overseas bonds sale
NTPC, India’s biggest power producer, has raised 500 million euros through overseas bonds sale that perhaps may be the first longest tenor eurodenominated issuance by an Indian company. NTPC got bids for $2.4 billion, or nearly five times the targeted size, through euro-denominated bonds sale with 10-year maturity, the longest in the currency. Securities have been priced at 200 basis points over Euro Treasury. “The 10-year bond has been issued at a coupon of 2.75% with a yield of 2.814%,“ the company said in a statement. The proceeds of the bonds issue would be used for capex. This is the first ever 10-year Euro denominated bond ssuance by an Asian utility issuer and also the first ever 10-year EUR transaction by an Indian Issuer. NTPC said the issue saw participation from more than 125 investors from across the globe. This, it said, is the first “10-year EURO bond for BBBIssuer from Asia-ex Japan“ and the “longest tenor achieved by a BBBIssuer from Emerging Markets since 2005.“ Also, it is the first 10-year EURO bond by an Indian issuer, the statement said. Earl Thomas III Womens Jersey
1.28 million Renewable Energy Certificates traded in January, says IEX
Power exchange IEX today said that a total of 12.88 lakh renewable energy certificates (RECs) were traded in January. “A total of 12.88 lakh RECs were traded in the REC trading session held on January 25, 2017 at IEX,” it said in a statement. Power distribution companies as well as open access and captive consumers are under obligation to buy RECs from renewable energy producers under RPO mandated by central/state regulatory commissions. RECs are aimed at providing an easier avenue for various entities, including power distribution companies, to meet their green energy obligations. Two power exchanges — Indian Energy Exchange (IEX) and Power Exchange India Limited (PXIL), approved by the Central Electricity Regulatory Commission — hold auction of RECs on the last Wednesday of every month. “With trade of 12.48 lakh RECs, the market has set an all-time high record predominantly on purchase by discoms followed by Open Access Consumers and Captive Consumers,” the statement said. Since the beginning of this fiscal (April-January), IEX has traded about 31 lakh RECs. REC volume trade saw an increase of over 412 per cent over 2.51 lakh RECs traded in the previous month of the same fiscal. A total of 1,399 participants traded at IEX with 870 participants in non-solar segment and 529 participants in the solar segment. Overall, a total of 3,418 participants are registered in the REC segment at IEX. Of this, 864 are Eligible Entities (RE Generators) 2,535 are Obligated Entities (discoms, Open Access Consumers & Captive Generators) and 19 are registered as Voluntary Entities. IEX is country’s premier power trading platform. George Hill Authentic Jersey
Madhya Pradesh woos global investors with mega solar project
The world’s largest solar power plant, coming up in Madhya Pradesh, has caught the interest of clean energy companies from around the world. Twenty leading firms, including Italy’s Enel Green Power SpA, SoftBank-promoted SBG Cleantech Ltd, Canadian Solar Energy Holding, Singapore3 Pte Ltd and Green Infra Wind Power Project Ltd, promoted by Sembcorp Industries Ltd, have expressed interest. “The 20 firms will bid for three units of 250 megawatts (MW) each that make up the project in the second round of auctions to be held in about 10 days,” said a person with direct knowledge of the development, speaking on condition of anonymity. The first round of auctions was held earlier this month. The 750MW plant is being set up in Rewa district by Rewa Ultra Mega Power Ltd, a joint venture between Solar Energy Corporation of India Ltd and Madhya Pradesh Urja Vikas Nigam Ltd. In the second round, companies will compete on the tariff at which they can sell power. Shapoorji Pallonji Infrastructure Capital Co. Ltd, Torrent Power Ltd, Hero Future Energies Pvt. Ltd, ReNew Power Ventures Pvt. Ltd, Azure Power Global Ltd, Aditya Birla Renewables Ltd, Mahindra Renewables Pvt. Ltd and Orange Renewable Power Ltd are among the bidders. A spokesperson for Sembcorp India said renewable power projects in India that are large scale and offer adequate coverage of payment and development risks will be attractive for long-term investors. “India is one of Sembcorp’s key markets and an integral part of the company’s emerging market strategy. We are constantly on a lookout for suitable opportunities in the country. However as a policy, we do not comment on any specific opportunities,” the spokesperson said in response to an emailed query. India has over 8.5 gigawatts (GW) of solar power capacity and is targeting 100GW by 2022. Of this, 40GW will come from rooftop solar projects. With the renewable-power purchase obligations of power distribution utilities, falling prices of imported solar panels from China and concessional taxation on solar panels, the industry has been growing rapidly, resulting in falling tariffs and a boost for electrical equipment manufacturing and services. According to a report issued this month by clean energy research firm Mercom Capital Group, renewable energy project development has changed significantly over the last quarter largely due to Chinese module price declines. “The average selling prices of Chinese modules in India have declined about 10% since August and by about 30% over the last 12 months. This has provided a much-needed boost to developers which won projects at low bids and were struggling to make project economics work,” said the report. According to Ashish Khanna, executive director and chief executive of Tata Power Solar Systems Ltd, a stronger focus on solar panel and equipment manufacturing, better access to finance and streamlined import duties on panels and system components will go a long way in reaching the 100GW target. Tyler Higbee Authentic Jersey
Renewables to overtake India’s oil output in 2035: BP Energy Outlook
India’s demand for green energy is expected to grow by seven times in 2035, according to the latest BP Energy Outlook released on Wednesday. Accordingly, the share of renewable energy in the country’s fuel mix will increase from the present level of 2% to 8% in 2035. However, the green surge will be inadequate to meet India’s growing need for energy with the country’s demand growth expected to be more than double the non-OECD countries’ average of 52%. OECD countries refer to the 35 nations that are signatories to the Convention on the Organisation for Economic Cooperation and Development, or OECD, and mostly comprise mature economies. This comes in the backdrop of investors seeing enormous opportunity in India’s emerging green economy. India, the world’s third largest energy consuming economy after the US and China, plans to achieve 175 GW of renewable energy capacity by 2022 as part of its commitments to the United Nations Framework Convention on Climate Change adopted by 195 countries in Paris in December 2015. “The global energy landscape is changing. Traditional centers of demand are being overtaken by fast-growing emerging markets. The energy mix is shifting, driven by technological improvements and environmental concerns. More than ever, our industry needs to adapt to meet those changing energy needs,” said Bob Dudley, BP group chief executive in a statement. According to the report, an annual feature published by British energy firm BP Plc, the growth in India’s energy demand is expected to outpace the other so-called BRIC (Brazil, Russia, China, India) countries. India’s energy demand is expected to grow by 129%, while China and Brazil’s energy demand will grow by 47% and 41%, respectively. Russia’s energy demand is expected to grow by 2%. India’s energy consumption is expected to grow by 4.2% annually, faster than all major economies in the world. As a result, India’s share of global energy demand will increase to 9% by 2035, accounting for the second largest share among the BRIC countries with China at 26%, Russia at 4%, and Brazil at 2%. “Coal remains the dominant fuel produced in India with a 65% share of total production in 2035. Renewables overtakes oil as the second largest, increasing from 4% to 14% in 2035 as oil drops from 10% today to 3% by 2035,” the report said. In India, which is the biggest greenhouse gas emitter after the US and China, renewable energy currently accounts for 15%, or 45,917 MW, of the total installed capacity of 3,10,005 MW. According to the government, India has a renewable energy potential of around 900 GW from sources such as wind, solar, small hydro and bio energy. The National Democratic Alliance government’s focus on renewable energy stems from India’s energy import bill of around $150 billion, expected to reach $300 billion by 2030. India imports around 80% of its crude oil and 18% of its natural gas requirements. The government aims to effect a 10% cut in energy imports by 2022 and a 50% cut by 2030. India imported 202 million tonnes of oil in 2015-16. According to BP Energy Outlook’s prediction, India’s oil imports are expected to rise by 165%, followed by a 173% and 105% increase in gas and coal imports respectively. “Energy in transport grows by 5.8% per year and oil remains the dominant fuel source with a 93% market share in 2035,” the report added. D.J. Swearinger Womens Jersey
BP Energy Outlook: An energy transition is underway
?BP EnergyOutlook 2017 Global energy demand to increase by around 30% to 2035, driven by increasing prosperity in developing countries, partially offset by rapid gains in energy efficiency Technological improvements and environmental concerns are changing the mix of primary energy demand but oil and gas, together with coal, remain the main source of energy to 2035 Gas grows faster than either oil or coal; the rapid expansion of LNG is likely to lead to a globally integrated gas market, anchored by US gas prices Oil demand grows but at a slowing pace; and non-combusted uses replace transport as the main source of demand growth by 2030s Global coal consumption peaks, while renewables remain by far the fastest-growing energy source, quadrupling over the next 20 years The power sector accounts for nearly two-thirds of the increase in primary energy Carbon emissions grow at less than a third of the rate of the past 20 years, reflecting both gains in energy efficiency and the changing fuel mix, but in the base case are still projected to increase, highlighting the need for further action ?The 2017 edition of the BP Energy Outlook, published today,?said that ?global demand for energy is expected to increase by around 30% between 2015 and 2035, an average growth of 1.3% per year. However, this growth in energy demand is significantly lower than the 3.4% per year rise expected in global GDP, reflecting improved energy efficiency driven by technology improvements and environmental concerns. ?“The global energy landscape is changing. Traditional centers of demand are being overtaken by fast-growing emerging markets. The energy mix is shifting, driven by technological improvements and environmental concerns. More than ever, our industry needs to adapt to meet those changing energy needs,” said Bob Dudley, BP group chief executive. The Outlook looks at long-term energy trends and develops projections for world energy markets over the next two decades. The 2017 edition was launched today in London by Spencer Dale, BP’s group chief economist, and Bob Dudley, group chief executive. Main energy sources While non-fossil fuels are expected to account for half of the growth in energy supplies over the next 20 years, the Outlook projects that oil and gas, together with coal, will remain the main source of energy powering the world economy, accounting for more than 75% of total energy supply in 2035, compared with 86% in 2015. Oil demand grows at an average rate of 0.7% a year, although this is expected to slow gradually over the period. The transport sector continues to consume most of the world’s oil with its share of global demand remaining close to 60% in 2035. However, non-combusted use of oil, particularly in petrochemicals, takes over as the main source of growth for oil demand by the early 2030s. “The possibility that the most important source of growth in oil demand in the 2030s won’t be to power cars or trucks or planes, but rather used as an input into other products, such as plastics and fabrics, is quite a change from the past,” said Spencer Dale. Gas grows more quickly than either oil or coal over the Outlook, with demand growing an average 1.6% a year. Its share of primary energy overtakes coal to be the second-largest fuel source by 2035. Shale gas production accounts for two-thirds of the increase in gas supplies, led by growth in the US. LNG growth, driven by increasing supplies in Australia and the US, is expected to lead to a globally integrated gas market anchored by US gas prices. Coal consumption is projected to peak in the mid-2020s, largely driven by China’s move towards cleaner, lower-carbon fuels. India is the largest growth market for coal, with its share of world coal demand doubling from around 10% in 2015 to 20%in 2035. Renewables are projected to be the fastest growing fuel source, growing at an average rate of 7.6% per year, quadrupling over the Outlook, driven by increasing competitiveness of both solar and wind. China is the largest source of growth for renewables over the next 20 years, adding more renewable power than the EU and US combined. Emerging themes The Outlook highlights a number of questions and uncertainties raised by the energy transition that is underway. Oil: changing dynamics of demand and supply All of the demand growth for oil in the period to 2035 comes from emerging markets, with China accounting for half. The transport sector accounts for around two-thirds of the growth in oil demand. Within that, oil demand for cars increases by around 4 million barrels per day underpinned by a doubling in the global car fleet. The number of electric cars is assumed to increase from 1.2 million in 2015 to around 100 million in 2035 (around 5% of the global car fleet). The Energy Outlook constructs two illustrative scenarios to consider the impact of the broader mobility revolution affecting the car market, including autonomous cars, car sharing and ride-pooling. “The impact of electric cars, together with other aspects of the mobility revolution, such as self-driving cars, car sharing and ride pooling, is one of the key uncertainties surrounding the long-term outlook for oil” said Spencer Dale. The slowing rate of oil demand growth is contrasted by the abundance of global oil resources. The Energy Outlook speculates that the abundance of oil may cause low-cost producers, such as Middle East OPEC, Russia and the US, to use their competitive advantage to increase their market share at the expense of higher-cost producers. Gas: the emergence of a global market Gas continues to gain share from coal, helped by energy policies that encourage the shift in both industry and power generation. The main growth comes from China, Middle East and the US. In China, growth in gas consumption outstrips domestic production, so that by 2035 imported gas comprises nearly 40% of total consumption, up from 30% in 2015. In Europe, the share of imports rises from around 50% in 2015 to over 80% by 2035. The Outlook expects
India to become the fastest oil consumer by 2035
Having pipped Japan to become world’s third largest oil consumer, India’s oil consumption growth will be the fastest among all major economies by 2035, BP Statistical Review of World Energy said. India, Asia’s second-biggest energy consumer since 2008, had in 2015 overtaken Japan as the world’s third-largest oil consuming country behind US and China. “We project that India’s energy consumption grows the fastest among all major economies by 2035. As a result, the country remains import dependent despite increases in production,” it said. While energy consumption will grow by 4.2 per cent per annum — faster than all major economies in the world — India’s consumption growth of fossil fuels would be the largest in the world. India, it said, will overtake China as the largest growth market for energy in volume terms by 2030. Oil consumption will rise from 4.1 million barrels per day in 2015 to 9.2 million bpd in 2035. Natural gas consumption would jump from 4.9 billion cubic feet per day to 12.8 bcfd while coal consumption is project to more than double to 833 million tons. India’s energy demand growth at “129 per cent is more than double the non-OECD average of 52 per cent and also outpaces each of the BRIC countries as China (47 per cent), Brazil (41 per cent), and Russia (2 per cent), all expand slower,” BP said. Its share of global energy demand increases to 9 per cent by 2035, accounting for the second largest share among the BRIC countries with China at 26 per cent, Russia at 4 per cent and Brazil at 2 per cent. BP said India’s demand for gas expands by 162 per cent, followed by oil (120 per cent) and coal (105 per cent). Renewables rise by 699 per cent, nuclear by 317 per cent and hydro by 97 per cent by 2035. “The fuel mix evolves very slowly over the Outlook (period) with fossil fuels accounting for 86 per cent of demand in 2035, compared to 92 per cent today. “The share of coal in the fuel mix falls from 58 per cent today to 52 per cent by 2035, while the share of renewables rises from 2 per cent to 8 per cent,” it said. Energy production as a share of consumption declines marginally from 58 per cent today to 56 per cent by 2035 as imports rise by 138 per cent. “Declining oil production (-26 per cent) is outweighed by increases in gas (+154 per cent) and coal (+104 per cent), and non-fossil fuels (+312 per cent),” BP said. Coal remains the dominant fuel produced in India with a 65 per cent share of total production in 2035. Renewables overtakes oil as the second largest, increasing from 4 per cent to 14 per cent in 2035 as oil drops from 10 per cent today to 3 per cent by 2035. “Oil imports rise by 165 per cent and account for 56 per cent of the increase in imports, followed by increasing imports of gas (173 per cent) and coal (105 per cent),” it said. Taylor Chorney Authentic Jersey
India’s energy consumption to grow faster than major economies
India’s energy consumption is set to grow 4.2% a year by 2035, faster than that of all major economies in the world, according to BP Energy Outlook. India, Asia’s second biggest energy consumer since 2008, had in 2015 overtaken Japan as the world’s third largest oil consuming country behind the US and China. “We project that India’s energy consumption grows the fastest among all major economies by 2035. As a result, the country remains import dependent despite increases in production,” the publication said. India’s consumption growth of fossil fuels will be the highest by 2035 and it will overtake China as the largest growth market for energy in volume terms by 2030. Globally, energy demand will increase by about 30% by 2035. Natural gas consumption will grow faster than either oil or coal, expanding at 1.6% a year. Coal demand will peak in the mid-2020s, as China moves toward cleaner, lowercarbon fuels, the report said. India’s gas demand to expand 162%, followed by that of oil (121%) and coal (105%). Renewables rise by 712%, nuclear by 317%, and hydro by 97%. Kayvon Webster Authentic Jersey