Essar Power Hazira attains 100% capacity utilization within 3 months
Essar Power Hazira Ltd, a subsidiary of Essar Power Ltd, on Friday, announced that its 2×135 MW power project in Hazira, Gujarat, was now operating consistently at close to 100% capacity utilization. The achievement is significant because it comes close on the heels of the commissioning of the second unit, which occurred just three months ago. It is also an indicator for the increased capacity utilization of its captive client—Essar Steel’s 10 million tonne Hazira-based steel complex, KVB Reddy, CEO, Essar Power, said. The plant can run on multiple fuels, like coal, corex fines and corex gas, simultaneously. It can also utilize excess gases from the process units of steelmaking operations. Over the last few weeks, it has lived up to its green commitment by using a higher proportion of by-products from the steelmaking process, including coal fines and corex gas. The plant is also helping bring down Essar Steel’s power procurement cost, while lending unmatched reliability and flexibility to the steelmaking process. Essar Steel has increased its capacity utilization from 30% to 80% over the last one year, he said in a release. Close to 80% of Essar Power’s targeted capacity of 6,100 MW, which comprises both captive and IPP assets, have been made operational. In the last two years, increased coal availability, both from domestic and overseas suppliers, as well as the strong operational efficiencies harnessed by Essar Power’s technical team have helped improve performance significantly. In October 2016, Essar Power had commissioned Unit 2 of Phase I (2X30 MW) of the 2×60 MW Paradip power project. Earlier in May 2016, the company restarted first unit of its 2×600 MW Mahan power project after a 19-month shutdown. Danilo Gallinari Jersey
AirAsia India hopes to have 20 aircraft by middle of next year
AirAsia India plans to increase its fleet size to 14 aircraft from the current eight by October this year and get to 20 aircraft by the middle of next year, Amar Abrol, the airline’s Managing Director and Chief Executive Officer, said on Thursday. In an informal meeting with the media, Abrol said a project team was being formed to look at international operations as several issues needed to be looked into. Govt regulations The Indian government regulations stipulate that an airline must have 20 aircraft in its fleet before it can start international operations. “It will take a year from now to go international,” Abrol said. Pointing out that the aircraft in the fleet allow the airline to fly to international destinations which are about four-and-half hours away from India, Abrol said, “Naturally, our strength lies in the East. AirAsia India could look at plugging into Kuala Lumpur, Bangkok and Jakarta.” He added that AirAsia India will also look into how to plug into the “sister airlines” such as AirAsia Malaysia and AirAsia Thailand already flying to India. Network strategy “AirAsia Malaysia is flying to Bhubaneshwar four times a week. So we can certainly look into that. There are 96 weekly landings of AirAsia airlines from other countries that come into various cities here. We will also compete will the sister concerns,” he said. Abrol said the airline’s network strategy was to largely link metro cities with tier II cities. “We are keen on flying Kolkata-Srinagar. We will do Kolkata and a bit of the North-East and then potentially connect the East to the West. It is being studied,” he said. Abrol claimed that the airline did an average fare yield of about ? 3,100 in January this year. Eric Dickerson Authentic Jersey
Andhra Pradesh govt planning to launch airline named after Amaravathi
The Andhra Pradesh government is planning to launch an airline, named after Amaravathi, once the state capital is developed. An official in the N Chandrababu Naidu-led government told PTI that the initiative is aimed at bringing global exposure to the upcoming city and also give a boost to the aviation sector in the state, adding that the airline is likely to be named after the state capital. “When Amaravathi is developed, the government may like to have its own international airport and airline depending upon the requirement at that particular time,” he said. Currently, there are five commercial airports in Andhra Pradesh — Visakhapatnam, Tirupati, Vijayawada, Rajamundry and Kadapa. Besides, six greenfield airports — Bhogapuram, Dagadarthi, Orvakallu, Kuppam, Tadepallegudam and Ongole –are being developed through public-private partnership (PPP). According to the official, even though the government has reduced VAT on jet fuel to 1 per cent, the losses incurred on account of this have been offset by the surge in air traffic in the state. “Prior to the implementation of the AP Aviation Policy 2015, there was a four-per cent VAT on aviation turbine fuel. Later, it was reduced to one per cent. Due to multiplication in the number of flights after the VAT reduction, the revenue loss to the state has been offset,” he said. Carl Soderberg Jersey
CEA wonders whether Air India should ‘exist at all’
Air India’s performance has improved with competition posed by private players, Chief Economic Advisor Arvind Subramanian said today, but wondered whether the state-owned airline should “exist at all”. The national carrier, staying afloat on a Rs 30,000-crore bailout package from the central government, is working on ways to improve its financial position. In the last fiscal ended March 2016, the airline had posted an operational profit of Rs 105 crore. “Air India with IndiGo and Jet Airways is very different from Air India without… Whether Air India should exist at all even with Jet Airways and IndiGo is another question which we don’t want to go into now,” Subramanian said. The point is competition has actually improved Air India’s performance, he added. Subramanian was delivering the keynote address at the national conference on economics of competition law here. Despite a debt of Rs 46,570 crore, including Rs 15,900 crore on account of aircraft acquisition, Air India managed to report an operating profit in 2015-16. In the Union Budget 2017-18, the airline has been allocated Rs 1,800 crore as part of the Rs 30,231 crore financial bailout package. Last month, the government informed Parliament that Air India is expected to post an improved operating profit margin this year even as liquidity constraints continue to impact the carrier’s smooth performance.
With only 13 Of 125 Airports Making Profit, Here’s What Government Is Planning
Airports may soon become the new go-to spots – malls, shopping centres and business hubs with state-of-the-art facilities – as part of a government plan to pull them out of red. Only 13 of the country’s 125 airports have been making profits, despite the government’s plans to boost under-utilized airports through Rs. 2,500 flights and other measures. The government expects that utilising the 55,000 hectares of land under airports across the country will help boost profit margins. But generating revenue would involve the change of land use. Under the existing Airport Authority of India Act, land under airport can only have limited use – mostly for hotels and car parking. This means that the revenue of airports come mainly from airlines, most of which are struggling to make profits. “We want to make use of land optimally and have commercial exploitation of the land to help raise resources for airport authority,” Minister of Civil Aviation Ashok Gajapathi Raju told NDTV. The change was promised by Union finance minister Arun Jaitley in his budget speech last month. The Finance Minister had said the Act will be amended to ensure “effective monetisation of land assets”. “The resources so raised will be utilised for airport upgradation,” the finance minister had said. Jeff Bagwell Womens Jersey
U.S. shale producers renew their challenge to OPEC: Kemp
U.S. crude oil production appears to be rising strongly thanks to increased shale drilling as well as rising offshore output from the Gulf of Mexico. Production averaged almost 9 million barrels per day (bpd) in the four weeks to Feb. 24, according to the latest weekly estimates published by the Energy Information Administration. Production has been on an upward trend since hitting a cyclical low of 8.5 million bpd in September (“Weekly Petroleum Status Report”, EIA, March 1). Weekly production numbers are estimates based on a combination of hard data and modelling so there is some uncertainty around them (“Weekly Petroleum Status Report: Explanatory Notes and Details Methods”, EIA). But the weekly estimates normally provide an accurate indicator for trends in the more comprehensive monthly data (http://tmsnrt.rs/2mcZphb). The most recent monthly statistics show output declining by 91,000 bpd in December, mostly due to exceptionally cold weather in North Dakota. Even with this weather-driven decline, which is expected to be temporary, production was still 216,000 bpd above the cyclical low reported in September. And the most recently weekly estimates suggest production increased significantly again during January and February. The rise in production is consistent with the substantial increase in the number of rigs drilling for oil since May 2016. Rising output also helps explain the big increase in U.S. crude exports and the continued high level of domestic crude stocks. U.S. crude exports have averaged almost 900,000 bpd during the last four weeks, up from about 500,000 bpd in September. U.S. crude prices have roughly doubled over the last year which has supported a sharp expansion in domestic drilling activity. Production cuts agreed by OPEC and non-OPEC countries in November and December 2016 have also helped sustain the drilling increase by supporting oil prices above $50 per barrel. Most exploration and production companies report shale breakeven prices below $50 per barrel and will continue to add rigs provided prices remain between $50 and $60 per barrel. The resurgence of shale production poses a direct challenge to OPEC’s attempt to rebalance the global oil market while protecting its market share. In the short term, OPEC will downplay the renewed growth in shale output and emphasise its own compliance with announced production cuts. In the end, however, OPEC will be faced with a familiar dilemma: sacrifice market share to protect prices or defend market share and allow prices to find their own level. Between the middle of 2014 and the middle of 2016, OPEC focused on defending its market share and allowed prices to fall to the market-clearing level. Since the end of 2016, OPEC has switched tack and has been willing to sacrifice market share to push prices up. Saudi Arabia has resumed its periodic role as swing producer in the oil market, shouldering the largest share of output cuts. So long as the shale revival remains small-scale, the benefit from higher prices outweighs the costs from lower OPEC production and market share, and the strategy remains feasible. But if U.S. output continues to increase at the current rate, OPEC will eventually be forced to reassess its production cuts and start protecting its market share again. Andre Reed Womens Jersey
Kudankulam power transmission lines to be completed by 2018
The setting up of the Kudankulam-Kochi 400kv power transmission line for power evacuation from the Kudankulam Nuclear Power Project has gained speed and is expected to be completed next year. According to P Vijayakumari, director, Transmissions and System Operations, KSEB Ltd., the transmission lines will be completed by December 2018. “The state badly needs these transmission lines. It will become the backbone of the power supply of the state once completed,” she said. She also said that all the oppositions regarding the Land Acquisition for setting up the tower stations of the power lines have come down. “Very attractive compensation is being offered for the affected parties and hope that people will realise it and withdraw their protests,” she said. She also said that the power lines are necessary for the state not only for the power supply from the nuclear project but also for maintaining a power system in the state. The KSEB is also planning three substations along the route of the power lines. The proposed line passes through Kollam, Pathanamthitta, Kottayam and Ernakulam districts. The major opposition faced by the project in the state was in Kottayam district. There are around 140 Tower stations in the district alone. Though the work for setting up the power lines began 11 years back, due to stiff opposition from the affected persons only 88 tower points could be located and out of them only the foundations of eight were completed. According to Vijayakumari, discussions were held by the people’s representatives with the affected persons in places where there were issues and slowly the opposition has died out in Kottayam district. Now the survey for the remaining 49 towers will begin from Wednesday in Anickad, Pampady, Kangazha, Vellavoor and Manimala Panchaytas, said an official of the Land Acquisition department. Now, that the Athirappally Hydro Electric project has resurfaced again amidst widespread protests, the focus have shifted to Koodankulam project, making it as a possible alternative for Athirappally. Chief minister Pinarayi Vijayan is determined to implement the project within a time frame. The Powergrid corporation has also assured the Government of completing the project within six months of the completion of Land Acquisition. The LDF Government has also increased the compensation amount from Rs 341 crores to Rs 1020 crores following discussions with Powergrid Corporation. Vladimir Sobotka Jersey
Why Rewa Ultra Mega Solar Project is a breakthrough for India’s 100 GW renewables ambition
The recent record low solar tariffs have once again started the murmurs in the in the business circles and in the media about how low tariffs will render this sector ineffective in the long run. This argument was valid when we were in the midst of falling prices last year in the host of NTPC/SECI project auctions. While, the current Rewa Project pricing is in a very different context, it has not stopped the “low prices danger” brigade who are extending this argument to the whole industry. The idea behind this article is to dispel such wrong notions and set out how the Rewa Project is different from other solar projects and, therefore, the pricing here may not be the right benchmark for all other projects. First, and most importantly, it is required to note that this is an “Ultra Mega Power Project” on the likes of the UMPPs in coal which had seen a record low in coal power pricing of sub Rs 2 per unit levels. Therefore, by their very nature, UMPPs have the natural advantage of scale and project level benefits which the normal power projects do not have and, therefore, they tend to be of lower risks and hence lower tariffs. Let us examine this project a bit more. In the Rewa Project, the quoted tariff for solar power has dropped to Rs 2.97 per kWh in 2017 from the highs of around Rs 12 per kWh in 2010, which is a huge decline. Rewa Ultra Mega Solar Project in MP, for 750 MW, is thus a landmark project in the short history of reverse auctions in Solar in India. Overall, 20 companies took a part in Rewa bidding out of which 18 companies are successfully qualified for reverse auction and three companies who have won the bid are Mahindra Renewables, ACME solar & Solenergi Power with all-time lowest tariff Rs 2.97 per kWh. The most electrifying part of solar technology is that it is constantly changing with the steadily dropping cost. One of the advantages of this project is that the selected bidder will sign a power purchase agreement with Delhi Metro Rail Corporation and Madhya Pradesh Power Management Corporation (MPPMCL). Since DMRC is financially sound, there is no payment realisation risk. Also, deemed generation is allowed which means if there is no offtake of power then the developer would be compensated for the power generation. Guaranteed generation is the additional key feature which enables each off takers to get the supply. Firstly it will be supplied to Delhi Metro rail corporation (DMRC) and then rest will be provided to Madhya Pradesh Power Management Company Ltd (MPPMCL). Rewa project has its own unique features. For this project, the overall groundwork has been done by the State Government i.e. the identification of the land for the project as well as the land allotment to the developer. The developer has to pay land charges of Rs 5.4 crore for each 250 MW unit, infrastructure charges of Rs 3.57 crore for every six months for first 10 years for each 250 MW unit, administrative charges of Rs 75 lakh for each 250 MW unit, local area development charges of Rs 5 crore (in two instalment), registration fees Rs 2.5 crore and project development fees of Rs 76 lakh. All these payment mechanism removes the uncertainties as compared to others projects. Loan for the development of 33/220 KV Pooling substation to evacuate power from the Rewa Solar power project is done through World Bank. It is one of the first project to get funding from Clean Technology Fund (CTF) in India. In this project they introduce three tier payment security Mechanism for the procurer. Largest solar power tender is led by a State and not led by Central Public Sector Units (CPSUs). There is no Viability Gap Funding for the developers. This is one of the highly bankable project as all arrangements are done by the government i.e. from land to grid connectivity. In this scenario, the developers can tie up their debt funding for long tenure at lower costs. If we compare Rewa projects with other projects like SECI Anantapur & Kurnool in Andhra Pradesh, and NTPC Rajasthan etc, this UMPP has far more security and lower risks to justify the viability of this low price of Rs 2.97 per Unit. Looking at the big picture of the 100GW vision of the Government, they had kept aside 20 GW to come for such UMPP’s and based on the success here – it is now hiked to 40 GW. To achieve this target, the number of installations would be at least 50 solar parks, each with a capacity of 500 MW. Large chunks of land are available in some States. There are some developers who are keen to take up their very large projects. Land has been identified in Gujarat, Rajasthan, J&K (Leh and Kargil) and Madhya Pradesh. This will help the Government of India to achieve the 100 GW target of Solar power in India. Thomas Davis Jersey
Don’t give rooftop solar units the short shrift
Riding on the wave of the record low solar tariff, of Rs 2.97/kWh, in the 750 MW Rewa Solar Park project in Madhya Pradesh, the Cabinet Committee of Economic Affairs approved increasing the number of such parks to 50 (from 33), which will take the installed capacity from 20 GW to 40 GW by 2020. An additional Rs 8,100 crore ($1.2 billion) has been earmarked for this. It is perfectly logical for the government to hand large, ground-based solar parks a boost considering that the Madhya Pradesh bids showed that solar can compete financially with fossil fuels. However, the possibility of the government reducing the rooftop photovoltaics (RTPV) target from 40 GW to 20 GW to accommodate the doubling of capacity of solar parks is real and worrying. Promoting large-scale solar may look like an economically-viable option to the government, considering that RTPVs are more expensive than ground-based solar — even though experts in the field agree that the best application of solar is in its decentralised RTPV form. RTPV requires no land (which comes at a premium in countries like India), provides energy security for the consumer and reduces environmental impact by displacing diesel generators. From the perspective of distribution companies (Discoms), RTPV reduces system congestion as well as transmission and distribution losses because generation and usage are decentralised. RTPV also has immense potential, in countries like India, to drive policy changes such as time-of-use pricing, which is at its incipient stage here. Yet, RTPV contributes only around 10 per cent of India’s 10 GW installed solar capacity. Countries such as Germany (>75 per cent), the US (>40 per cent) and Australia (>85 per cent) have a large share of their installed solar capacities on rooftops. Boosting RTPVs in India is necessary. However, various problems associated with it need to be first addressed. The central government offers a 30 per cent capital subsidy for RTPV systems for domestic, institutional and social sector consumers. Recently, the Solar Energy Corporation of India (SECI) floated tenders for 1.5 GW RTPV on government buildings across the country. However, RTPV in India is essentially driven by state-level policies of gross-metering (GM) or net-metering (NM) and more than 90 per cent of the installed 1.1 GW has come through state channels. Each state has its State Electricity Regulatory Commission (SERC) prescribing GM/NM rates based on the PV market economics and the financial strength of the Discoms. Most schemes have a plethora of complicated forms and procedures, restrictions on sanctioned load and unviable rates — all of which dissuade consumers. Applicants for the central capital subsidy have rarely received it because of red-tape issues. A stable policy regime, which aligns well with state and central schemes, a streamlined process to avail subsidies and eradication of corruption are some measures that are urgently required to encourage RTPVs in India. Considering that the onus of adopting RTPVs lies on consumers (unlike developers of solar parks), domestic, institutional, commercial and industrial consumers need to ramp up uptake of RTPV systems for the sector to gain momentum. However, lack of guidance, misinformation and rapidly-changing policy regimes have prevented consumers from investing in RTPV. Unreliable consultants, looking to make a quick buck, fail to explain the intricacies of shadows and grid-connectivity to prospective consumers. Only after installing systems have consumers found out that their business cases are skewed. In Karnataka, more than 1,000 consumers were lured in to sign up for 1 MW systems when their sanctioned load was less than 5 kW and there was no roof! This was because third-party investors wanted to exploit the loopholes in the state RTPV policy which were subsequently addressed in three changes in 2016-17 alone. Unfortunately, these changes in policy and GM/NM rates have made consumers sceptical and only 57 MW has been installed in the state so far. Unsure of receiving monthly payments from Discoms, consumers do not have the confidence (in RTPV) to apply for loans. A one-stop shop is needed that allows consumers to accurately assess the techno-economic potential and facilitate turnkey implementation along with obtaining finance without further hassles. Discoms often complain that RTPV will lead to attrition of revenue. Moreover, there is a fear that the already fragile distribution network might face technical difficulties while importing fluctuating electricity, intermittently generated from RTPV systems. Proper load flow analyses need to be performed taking into account distribution transformers and existing capacities and capabilities. Financial innovations and structural overhauls in Discoms are needed, along with robust roadmaps with stable GM/NM prices, to achieve RTPV targets. State governments and the Centre need to address these issues and attempt to rejuvenate the RTPV segment while encouraging solar parks. With most states on course to achieve their ground-mounted targets by 2020 (Karnataka aims to cross 6 GW by 2018-19) it only makes sense to increase the 100 GW target to accommodate the doubling of solar park capacities whilst keeping the 40 GW RTPV target intact. John Ross Jersey
Solar solution to water crisis in Sundargarh
Come summer and rural population in tribal-dominated Sundargarh district can be seen walking miles for collecting water. But, not anymore. The scene in rural Sundargarh has changed for the better. At least four lakh people would have assured safe drinking water through solar dual pump sets and Reverse Osmosis (RO) plants. During peak summer remote rural pockets, particularly the non-electrified villages, face acute scarcity of safe drinking water. This summer the district administration seems prepared to reduce drinking water drudgery of a substantial chunk of rural people. Administrative sources informed that in 2015-16 and 2016-17 the district had taken up about 1,080 solar dual pump set projects of which about 220 remaining projects would be made operational before summer. It is learnt that Odisha Renewable Energy Development Agency (OREDA) through Rural Water Supply and Sanitation (RWSS) has complete about 560 solar pump projects and 44 remaining projects are nearing completion. Similarly, the Sundargarh District Rural Development Agency (DRDA) under the Gopabandhu Gramin Yojana has completed 175 such projects in 2015-16, while in 2016-17 about 300 more projects are taken up and around 120 completed. RWSS sources said, in non-electrified villages the solar dual pumps are fitted to existing tube-wells and through sensor technology the overhead tanks of 5,000 liters each get filled up on rotation. Each project costs about `4.6 lakh and covers 250-300 villagers. Significantly, RO plant projects with capacities of 50, 100, 500 and 1,000 liters per hour (lph) are also being implemented at the most populated Gram Panchayat (GP) headquarters or villages in 250 GPs including 39 model GPs. It envisages to rest the ownership of water purification projects with respective GPs. Total installation cost of a RO plant of 1,000 lph varies between Rs 8 lakh and Rs 10 lakh and covers about 1,000 persons with potable drinking water. Sundargarh Collector Bhupendra Singh Poonia said the solar pump projects, work on which have been completed, are producing effective results at targeted locations including all 21 remote and hilly villages under Paudi Bhuiyan Development Agency in Lahunipara block. The RO plants on completion would also ensure safe drinking water to targeted populations, he said adding the administration is in the process of renovation and upgradation of existing water supply projects. He asserted to take up the water supply projects in uncovered areas. Calvin Johnson Womens Jersey