Waste-to-energy plant will be a new problem for Gurgaon, say greens and RWAs
Environmentalists and members of the civil society have declared their opposition to the state government’s decision of installing a waste-to-energy plant in Bandhwari, saying the model is unsuited to Indian cities. According to environmentalists, the system’s major drawback is that it is a centralised one, which discourages the practice of segregation at source. The Union ministry of urban development and National Green Tribunal have been pushing for waste segregation at source, which is also a more environment-friendly garbage management strategy. “Almost 60% of Indian waste is wet waste, with a very high quantity of kitchen waste. This has very low energy and is hence unsuitable for power generation. As a result, ultimately, a large percentage of the garbage will still end up in landfills, beating the whole point of waste management,” said Keshav Jaini, president, RWA, Garden Estate, who has been working on waste management for several years. Another big argument put forward by experts and environmentalists is that by burning waste, the model is likely to cause air pollution. “As per NGT guidelines, waste has to be segregated and detoxified with bio-culture, before it can be burnt. Or else, it will release noxious fumes, polluting the air further,” said a national-level solid waste management expert. She requested not to be named. Gurgaon has seen several examples of schools and residential societies practising waste segregation at source, with many of their residents also involved in campaigning for a more sustainable zero-waste lifestyle. These societies include Garden Estate, Nirvana Country, Vipul Greens, Hamilton Court and Vastu CGHS. “Across the city, so many people and societies are doing segregation and composting the natural and sustainable way. Instead of encouraging this, the proposed model goes on to discourage waste segregation at source and decentralised treatment plants,” said Neelam Ahluwalia, a former environmental journalist. Among other problems involving waste-to-energy plants, the critic’s group has pointed out that such plants have failed in Europe and China. Instead of taking ideas from China, which is itself battling high pollution levels, we should look for suitable models within the country. The waste-to-energy plant, proposed in Gurgaon, is in partnership with a Chinese player. “The NGO Centre for Science and Environment had also published a book, written by Sunita Narain and Swati Singh Sambyal in 2016, Not In My Backyard, on how and why waste-to-energy plants don’t fit India. The government must look into the points they raised. They should work with cities like Warangal and Pune, which have successfully executed decentralised waste management plants,” said Ahluwalia. There are other concerns that remain largely unanswered, such as impact of the model on local flora and fauna, or on garbage workers and rag-pickers? The larger argument among residents and activists is that instead of discarding waste, we must find value in it by treating and recycling it as much as possible. MCG officials said their chosen integrated solid waste management model follows all required guidelines.“The proposed model is approved under all NGT guidelines and rules set by the Centre,” said MCG commissioner V Umashankar. The corporations of Gurgaon and Faridabad signed an MoU with a Chinese company on June 30 for the project. Talks for a waste management project in Gurgaon have been going on since the Bandhwari plant closed down in October 2013. In 2016, the government decided that the replacement WTP would be a waste-to-energy plant. Dave Winfield Womens Jersey
NTPC bets $10 billion on coal power despite surplus, green concerns
India’s state-run power utility plans to invest $10 billion in new coal-fired power stations over the next five years despite the electricity regulator’s assessment that thermal plants now under construction will be able to meet demand until 2027. In the first phase, India’s biggest power producer, NTPC , plans to build three new plants with a combined capacity of more than 5 gigawatts (GW), nearly double the capacity of those currently being phased out, five senior company officials said. The company has not made the investment public because it has not yet received government approval. If approved, the plan could set back efforts by the world’s third-largest greenhouse gas emitter to control carbon output and raise questions about Prime Minister Narendra Modi’s vow to stand by commitments under the Paris climate accord. The proposal also comes as several coal-fired stations built in the last power boom a decade ago are standing idle due to softer-than-expected demand. State-controlled Coal India is struggling to sell its stockpile as a result. But other indicators indicate demand will pick up, a top NTPC executive said, asking not to be named because the plan had not yet been announced. “I don’t think (the current) electricity surplus will be there for a long time,” he told Reuters. “We should not fool ourselves.” More than 300 million of India’s 1.3 billion people are still not hooked up to the grid, according to NITI Aayog, which makes policy recommendations to the government. As connections improve, the panel reckons, the country’s per-capita power consumption could jump around a third to up to 2,924 kilowatt-hours by 2040 from 2012 levels. In the next decade, the around 50 GW of capacity from thermal plants due to come online by 2022 will meet demand, the Central Electricity Authority (CEA) said. Additional supplies will come from sources such as solar and wind, it said. Asked about NTPC’s plan, CEA chairman RK Verma said the commercial decisions of the company were its own affair. “NTPC is a commercial organization and they must be having their own commercial considerations,” Verma said. For its part, a spokesperson at NTPC would say only: “NTPC takes decisions after consulting both the CEA and the ministry of power.” THERMAL VS RENEWABLE Solar power generation capacity in India has more than tripled in three years to more than 12 GW since Modi targeted raising energy generation from renewable sources to 175 GW by 2022, against total installed capacity at the end of May of 330.3 GW. Around 78 percent of generated power in India at the moment still comes from coal-fired plants, however, making it one of the biggest users of the dirty and cheap fuel in the world. Carbon dioxide emissions from India’s thermal plants are expected to jump to 1,165 million tonnes by 2026/27 from 462 million tonnes in 2005, the CEA estimates. Emission intensity, measured in carbon dioxide emissions versus GDP, is likely to fall, however. India is undergoing a programme to retrofit several coal-fired plants to reduce emissions. The plants planned by NTPC are “supercritical”, meaning they are 2-3 percent more efficient than conventional plants and therefore have lower emissions. NTPC’s proposal is likely to be greeted with alarm by environmental activists who are already worried by the CEA’s statement that existing power plants are unlikely to meet India’s emission norms before the Paris deadline of December this year. “Adding more power plants would aggravate health impacts even further,” said Sunil Dahiya, an energy activist with Greenpeace in New Delhi, when asked about the possibility of new coal-fired plants. NTPC’s proposal is to build plants of two 660 megawatt (MW) units each at Singrauli in central India’s Madhya Pradesh and Talcher in Odisha in the east. The biggest plant, with a capacity of 2.4 GW in the eastern state of Jharkhand, was close to getting clearance from the environment ministry, one of many steps in the process of getting government approval, one of the senior company officials said. A plan announced by NTPC last year to generate 10 GW of energy from renewable sources by 2022 was making slow progress due to land acquisition issues, another company official said. Max Muncy Authentic Jersey
Brazil wind, solar projects stall as power demand remains sluggish
Brazil’s government will not award new licenses for wind and solar power generation projects, despite requests from the renewable energy sector, as power markets struggle with oversupply in a sluggish economy, a top official said. Brazil was one of the world’s fastest growing markets for the wind power sector in the first half of the decade with a flurry of farms appearing along the nation’s vast, windy coast. But a deep recession that began in early 2014 and from which Brazil is only now emerging brought the trend to a halt. The last licenses for new wind or solar generation projects were awarded in 2015. An auction for licenses was called off in 2016 and it is unlikely new licenses will be issued this year. “We cannot choose a segment and say it is insulated from the crisis, give it a guaranteed demand,” Deputy Energy Minister Paulo Pedrosa said at a Sao Paulo conference last week. “Strictly considering the technical side, we have to say no.” Pedrosa said the government has received requests from wind and solar equipment makers to resume licensing. He said pressure also comes from governors of states holding the bulk of the wind generation capacity in Brazil. Despite those pressures, Pedrosa said it was impossible to even guess when the government will resume licensing for the projects. When it was booming at the turn of the decade, Brazil attracted global wind turbine manufacturers such as Denmark’s Vestas Wind Systems, U.S.’s GE and Spain’s Gamesa, who built plants in the country. Their order books are increasingly thinner, as old projects mature and there is no fresh demand. Newcomers such as photovoltaic panel makers BYD and Canadian Solar are likely to feel the orders’ drought as well. Erik Rego, a power sector consultant at Excelência Energética, agreed with the government’s stance. He said there is no need for new projects unless the government decides to stimulate the industry and build a buffer for when power consumption increases. Since there is no demand from power distributors to buy power forward, one way to create new projects would be to include them in a government plan to build spare capacity as a way to guarantee supply when demand increases rapidly, Rego said. But since this has a cost that in the end would have to be financed by consumers, there is resistance in the government to carrying such a plan out. Kareem Martin Womens Jersey
Indian oil refiners tap spot crude market to feed increased capacity
Indian companies have stepped up purchases of high-sulphur crude oil from the Middle East and Russia in the spot market to feed demand from expanded refining capacity, trade sources said. Four refiners in the world’s third largest crude importer bought 9 million barrels of Middle East and Russian crude loading in July-August via spot tenders last month, drawing down excess supplies in the market after China’s demand slowed. Refiners such as Indian Oil Corp (IOC) and Bharat Petroleum Corp Ltd (BPCL) have opted to buy more spot crude as they gradually ramp up output, rather than increase long-term crude supplies, the sources said. IOC expects to run its new 300,000-bpd Paradip refinery at full capacity this year, while BPCL plans to ramp up output at its Kochi refinery to 310,000 bpd by September after an expansion, they said. An IOC spokesman said his company’s high-sulphur crude oil purchases from the spot market have risen as operations at the Paradip refinery stabilised. IOC has bought 5 million barrels of high-sulphur oil for August, he said, adding “there could be more”. “Refiners are buying heavier grades to increase middle distillate and fuel oil yields” as refining profits for these products have strengthened, said Ehsan Ul Haq, director at London-based consultancy Resource Economics said. Indian refiners have also increased spot purchases during a period of abundant supplies, allowing them to react quickly to market changes and pick up cargoes when prices are competitive. IOC said in May it plans to buy 68 percent of its oil needs from term suppliers, down from 80 percent earlier. Mangalore Refinery and Petrochemicals Ltd (MRPL) and BPCL have bought Omani and Bahraini crude while IOC bought 5 million barrels of Abu Dhabi, Iraqi and Russian Urals crude. [CRU/TENDA] Bharat Oman Refineries Ltd (BORL) also purchased 1 million barrels of Russian Urals, traders said. MRPL and BORL seldom buy high-sulphur crude while IOC and BPCL have increased purchases this year, they said. Sellers include Litasco, the trading arm of Russian producer Lukoil, Sinochem Corp and Vitol, traders said. The companies did not respond to e-mails and calls seeking comments. BPCL could buy more sour crude this week as it has issued a tender seeking oil for August arrival, a trader said. ALL-TIME HIGH India is buying more Brent-linked Urals crude this year, with imports to hit an all-time high of 4 million barrels in July, after the price gap between Brent and Dubai narrowed to multi-year lows of below $1 a barrel. Global crude markets remain oversupplied, weighing on Brent and West Texas Intermediate prices, despite a deal among members of the Organization of the Petroleum Exporting Countries and some non-OPEC producers to extend output cuts. Some Indian refiners are also exploring the feasibility of importing U.S. crude, sources said, joining other Asian buyers such as China and Japan that stepped up imports from the United States this year on weak WTI prices. IOC issued its first ever tender seeking sour crude from the United States and Canada, trade sources said on Tuesday. Still, India’s crude demand is expected to fall early in the fourth quarter as several refineries are scheduled to shut for maintenance. Brian Elliott Womens Jersey
Diesel imports intensify, may be curbed by monsoon
India’s diesel imports have intensified with state-owned refiner Hindustan Petroleum Corp (HPCL) entering the spot market on Tuesday to seek its seventh cargo of the fuel for July, trade sources said. But imports could slow as monsoon season starts in India, they added. HPCL is seeking 60,000 tonnes of 40ppm sulphur gasoil for delivery into Vizag over July 20-25 in a tender that closes on July 5. This is the state-owned company’s seventh cargo requirement for July, though it was not clear if all previous tenders have been awarded. HPCL-Mittal Energy Ltd (HMEL) was expected to start up its 230,000 barrels per day Bathinda refinery in northern Punjab after it shut for planned maintenance in late April, but the refinery is still not back in operation, an industry source said, though this could not immediately be confirmed. India’s diesel demand has been strong despite the start of monsoon season due to several power outages which has boosted diesel demand in back-up power generators, an industry source said. It is still early days in India’s monsoon season. Once rains intensify, demand for the fuel in the agriculture sector could slow, the source added. Oil pricing agency S&P Global Platts said on Tuesday it will include Singapore’s Jurong Aromatics Corp as a loading point in its pricing process known as Market on Close for gasoil and jet fuel from Aug. 1. Sellers in the MOC process will be able to nominate JAC as a loading point for cargoes traded on a FOB Straits basis, it said, following a review last month. Myanmar’s refined fuel consumption growth is set to outperform the rest of Asia from 2017 to 2026 due to factors including strong economic growth, a rapid rise in car ownership and a surge in aviation traffic, BMI Research said in a note. Already the sixth-largest net fuel importer in Asia, Myanmar’s imports are expected to grow to over 345,000 barrels per day (bpd) by 2026 from an estimated 212,000 bpd in 2017, it added. Chukwuma Okorafor Womens Jersey
Under pressure, Qatar says will boost gas production by 30 per cent
Energy-rich Qatar said Tuesday it plans to increase natural gas production by 30 percent over the next several years, as it faces pressure from its neighbours in a diplomatic crisis. State-owned Qatar Petroleum said it would go ahead with the output boost regardless of whether or not Saudi Arabia and its allies maintain a sweeping embargo they imposed last month. The company’s head, Saad Sherida Al-Kaabi, said the emirate intends to raise production to 100 million tonnes a year by 2024 by doubling the size of a project in the world’s largest gas field. “We will increase our energy production capacity from 77 million tonnes per annum to 100 million tonnes per annum, which represents a 30 per cent increase which will start five to seven years from now,” he told reporters. Qatar is already the world’s biggest producer of Liquefied Natural Gas (LNG). Kaabi said the decision to expand production by the equivalent of six million barrels of oil per day would cement the country’s position as a world leader in the gas industry. Qatar Petroleum had already said in April that it was lifting a self-imposed ban on development in the huge offshore North Field, which it shares with Iran and where the additional output will come from. The timing of the latest announcement is likely to be seen as as much political as economic as Qatar is locked in the Gulf’s worst diplomatic crisis in years. On Monday, the emirate gave its response to a 13-point list of demands its neighbours made for lifting their sanctions. Kaabi said Qatar wanted the production increase to be carried out through a joint venture with international companies. But he added that the emirate would still go ahead with it even if Saudi Arabia and its allies made good on their threat to sanction any international firm working with Qatar if it failed to meet their demands. “We have absolutely no fear of having the embargo in place,” he said. “Regarding the… possibility of embargo countries asking some of the international companies or contractors not to work with us, we absolutely do not have any issue with that. “The companies that choose not to work with us — that’s fine, that’s their choice. “If we run out of companies that will join us… if there are no companies willing to work with us, we will go to 100 million, 100 percent.” One of the richest countries in the world, Qatar’s vast wealth has largely been built on gas production. In 1997, when its first shipment of LNG sailed to Japan, Qatar’s exports were valued at around $5 billion. That figure had reached $125 billion by 2014, according to trade data site the Observatory of Economic Complexity. Jamie Langenbrunner Authentic Jersey
What Air India’s seller and any future buyer should do to make the deal fly
At last, the government has decided to bite the bullet and sell Air India (AI). Now, the question is how: strategic sale, or sale through the stock market? Ratan Tata, possibly in alliance with Singapore Airlines, has shown interest, as have others like IndiGo and Qatar Airlines. Strategic sale is a political landmine, which could invite charges of favouritism — or, worse, corruption. ‘Strategic investors’ will always pick up the stakes in the secondary market. But that is not the government’s worry. The only downside of a market sale is that the Indian stock market may not be large enough to absorb this big a sale and fetch a good price. So, should AI’s assets be stripped and each component sold? Or to sell it as a going concern? Or to sell the profit-making subsidiaries — AI Express (low-cost carrier), AI Transport (cargo) and AI SATS (airport services) — land and office buildings separately, and the remaining as a ‘going concern’? The difference between the first and third options is that in the first, landing slots can also be auctioned independently. In the third option, it will be integral with the remaining portion of the airline. A detailed cost-benefit analysis has to be done to decide which is the best alternative. Air Lanka was sold to Emirates as a total airline, which was rechristened as Sri Lankan. It was considered that the government could have got more if the landing slots were sold separately. Severance pay and other obligations should be settled. The less GoI insists on the buyer to take on the existing staff, pilots included, the better price it can get. This is also the right time for GoI to bring a law that dilutes the job security of public sector employees and GoI’s financial obligations to them in the event of privatisation. Then comes the matter of how much to divest. The more the government holds a share in AI, the less will be the price it realises. At the same time, it has to retain its fiduciary responsibility. The British government did this, till recently, by holding one ‘golden share’ of the then-British Airports Authority (BAA, now Heathrow Airport Holdings), thereby holding overriding powers but without any dividends. This method could be ideal for AI’s privatisation too. Should foreign airlines be allowed to hold majority shares? The present rule allows, without breaching the existing cap, up to 100% with ‘other’ foreign players like sovereign wealth funds. This aspect needs a dispassionate and hard-nosed study. Then, should AI be sold all in one go? Or should it be progressively divested? Either way, the government will be on the horns of a dilemma, as China had experienced in its selling of shares of petro company Sinopec in the market. The Chinese government could not divest too much, as it would depress the price. And divesting slowly meant giving a signal to the market of continued government ownership, which meant prices going down after the sale. Another possibility is the adoption of the Maruti-Suzuki model: parking some of its stakes in public sector banks and realising the value later when the prices move up. However, this option is open to the criticism that public sector banks are not much better than our public sector undertakings (PSUs). Selling these stakes in PSBs would still remain a task for the government to avail the benefits of a price appreciation. Unlike a private-private sale, when the seller is not concerned with the events post-sale, in a government of India-private sale, the government has to be mindful of the post-sale consequences. This, again, creates a dilemma for GoI. A pro-monopoly structure post-privatisation will fetch a higher price and make the privatisation look successful in the eyes of the media and the public. But a pro-competitive structure post-privatisation will benefit the people in terms of a vibrant competition. In India, despite the presence of so-called ‘low-cost carriers’, prices have not come down to the extent that they are in the Far East Asian market. We still do not have vibrant competition. Incumbents have been sabotaging the entry of powerful competitive forces like Air Asia, which has significantly brought down prices by all carriers in the segments it operates. The airline and mobile telecom industries are similar in a way in that both are high fixed cost and near-zero variable cost industries. Thus, during the period of excess capacity, costs can go down to selfannihilating levels. Their only saving grace is to wait for the good times — when demand picks up and excess capacity vanishes, a feature of the airline industry — as it follows the business cycle. Samson Ebukam Authentic Jersey
Why debt-ridden, loss-making Air India is still an attractive buy for some
After the Union Cabinet allowed the divestment of loss-making Air India, several companies such as Tata Group, Indigo and Qatar Airlines have shown interest. But heavy losses and debt remain big concerns of a prospective buyer. However, despite its accumulated losses of more than Rs 50,000 crore and debt of about Rs 55,000 crore, Air India can still be a prized asset for the buyer. Though there is a perception that the national carrier is a lumbering behemoth not fit to churn out profits in a sector where margins are thin, Air India is actually not too big to turn around. Take employee-to-aircraft ratio, an indicator of efficiency as well as the scope of a turnaround. Aakansha Kaushik, a research scholar at JNU, writes in an article that the ratio is comparable to other profitable airlines. In 2015-16, Air India’s employee-to-aircraft ratio was only 106 for a fleet size of 136. IndiGo, the only large consistent profit-making carrier, operated at a higher employee-to-aircraft ratio of 116 though a lower fleet size of 106. IndiGo also had a lower number of maintenance-and-overhaul personnel than Air India. The national carrier has its own maintenance and repair centre, which gives it cost advantage over other players. Passenger load factor, which indicates capacity utilisation of an airline, is another positive for a prospective buyer. Air India’s load factor has improved consistently over the years and has equalled the worldwide average for the airline industry. But it is still slightly below the level of other major players in the Indian airline Industry Other factors that can lure a buyer are Air India’s large asset base, international flying rights, membership of the Star Alliance, valuable slots at big international airports and three profit-making subsidiaries. Air India’s three profit-making subsidiaries are Air India Express (low-fare international carrier), AI Transport Services (ground handling unit) and AI-SATS (a 50:50 ground-handling JV with Singapore Airport Terminal Services). Air India Express reported a net profit of Rs 296.7 crore in 2016-17. It was due to all these factors that Aviation Secretary R N Choubey said recently that Air India had huge value and would find many takers. “In the past three years, we have turned around Air India operationally. The airline is now cash positive,” Choubey said. Corey Coleman Womens Jersey
Solar energy draft policy of Goa government open to public for comments
The draft of the solar energy policy prepared by the Goa energy developement agency (GEDA) is now open for suggestions and comments from the public and stakeholders. The policy is available on the department of science & technology website, www.dstegoa.gov.in, and on the official government portal www.goa.gov.in. Comments have to reach the member secretary, GEDA, by post or through email: gedagoa@yahoo.com latest by 5.45pm on July 14. “Goa is richly endowed with moderate climate and bright sunshine for almost 8-9 months a year for generating solar power. The state entirely depends on thermal energy generated in other states. Goa being eco-sensitive, no thermal energy generation is possible in the state. To attain self-reliance in power generation and promote clean source of power, solar policy is being adopted. This would result in reduction of carbon emissions, “ the policy states. It goes on to add that the challenge before the state government is not only to meet the ever-growing demand for power, but also to progressively increase the share of renewable sources. Reggie Ragland Womens Jersey
Spain’s power and gas firm Gas Natural targets $40 billion EDP merger -sources
Spanish power and gas company Gas Natural has approached Portuguese rival EDP about merging to form Europe’s fourth biggest utility by market value, people familiar with the matter said on Monday. Talks over a potential 35 billion euro ($40 billion) deal and its potential structure are still at an early stage and there is no certainty over their outcome, four sources said, although Gas Natural chairman Isidre Faine has already sounded out his Portuguese counterpart Antonio Mexia about a tie-up. A deal would create an Iberian champion competing with France’s Engie and EDF and not far behind heavyweights Enel and Iberdrola. And it could trigger a long expected wave of consolidation among Europe’s biggest utilities as they seek to gain scale and shift their revenue streams towards renewables to protect profits from steep competition and narrower margins. A Gas Natural-EDP merger is seen as a good strategic fit as EDP has made big headway in renewable power while Gas Natural remains strong in gas-fired or coal generated electricity. The two have a complementary footprint, especially in Latin America where the Spanish firm is strong in Chile and Mexico and the Portuguese group in Brazil as well as in the United States. “The combination of the two companies is quite attractive as Gas Natural lacks power generation in Latam and renewables. But the key to the deal is the politics”, said a major shareholder in one of the two firms. EDP declined to comment. Gas Natural said it was not in merger talks with EDP. CROSS-BORDER DEALS Any attempt to consolidate Europe’s fragmented energy market has so far raised eyebrows among European competition authorities who fear it could translate into higher prices. But sector insiders say the mood for cross-border deals has changed since the French election victory of Emmanuel Macron who has been a strong advocate of creating European champions. Meanwhile, Spain’s prime minister Mariano Rajoy and his Portuguese counterpart Antonio Costa, are working on increasing connections between the energy grids of the two countries and with Europe and none of either group’s main shareholders is seen as raising objections if the price is attractive. A merger would also mark the latest effort by Spain’s Criteria, which owns direct or indirect stakes in Caixabank , Abertis, Gas Natural, Repsol or Telefonica, to restructure its portfolio. The holding company, which is also managed by Faine, wants to focus on smaller stakes in bigger companies with potentially less political influence but higher financial returns. Criteria, which is reviewing a potential tie-up between toll road operator Abertis and Italy’s Atlantia, declined to comment. But it has a track record for such deals and in 2014 exchanged 100 percent of Agbar for 5 percent of Suez. “Faine has done it with Agbar and is about to do it again with Atlantia and Abertis,” a source with knowledge of the deal said. “Now, he is looking towards Portugal to replicate the move with Gas Natural and EDP.” Alex Anzalone Jersey