Renewable Energy: Here Is How To Use Subsidies For Sustained Growth
At present, installed electricity generation capacity in India is about 330GW. About 17.5 % (57.5GW) is through renewable generation (wind: 32.3GW, small hydro:4.3GW, solar:12.5GW and balance biomass generation: 8.1GW). Renewable energy capacity is likely to reach 30% by FY19. The country has set an ambitious target of adding 175GW of renewable generation capacity comprising 100GW solar, 60GW wind and 15GW bio mass, small hydro and others by 2022. The solar capacity target includes setting up of 34 solar parks with around 20GW capacity. Recently, the government has decided to establish another 20GW under solar parks. But wind and solar generation are susceptible to variability, which affects power system operations. In order to integrate high penetration of renewables several actions must be taken such as flexibility in the conventional generation, Renewable Energy Management Centres (REMCs) and augmentation of transmission systems. But to begin with there is no policy framework for electrical energy storage in India. The government should come out with one indicating the target & incentive package to encourage developers. This would facilitate appropriate regulatory framework in the country. Recently, CERC had come out with a discussion paper on storage, but it does not include pump storage, which is the most cost-effective and largest bulk storage source in the world. The national electricity policy mandates that a spinning reserve of at least 5% at the national level should be created to ensure grid security, quality and reliability of power supply. This amounts to almost 16.5GW considering present installed capacity. It is yet to be implemented. At least, 5GW reserve should be implemented on national basis to start with. More important, the country needs a time-based reserve system. Primary reserves (to be available in few seconds) are realised through automatic control of turbine speed governors. All generators must operate with free governor mode of operation (FGMO). As per IEGC/CEA technical standards, in thermal units all governors shall have a droop setting of between 3% and 6%, whereas 0-10% in case of hydro units. Primary reserves could also be provided by hydro pump storage. Secondary reserves (few seconds to 15 or more minutes) involve automatic generation control, which delivers reserve power to bring back the frequency and area interchange to target values. Tertiary reserves (to be available from 15 mins to few hours) for manual change in dispatching and unit commitment to restore secondary control reserve. Forecasting (both load & RE generation) is also essential to ensure resource adequacy. Suitable regulatory framework for forecasting, scheduling and imbalance settlement for RE generators at both inter-state and intra-state level needs to be implemented strictly. Green Energy Corridor project had envisaged REMC at regional/state-level and it’s implementation should be expedited. There is need for augmenting the transmission corridors in renewable rich states with coordinated transmission planning ahead of installation of renewable generation. Technical standards for RE generation incorporating features such as low voltage ride through, high voltage ride through, frequency thresholds for disconnection from the grid, active and reactive power regulation by RE generators need to be notified and implemented at the earliest. Further, ancillary services need to be put in place as support services for reliable operation of grids. Ancillary Services provide a framework for operationalising the spinning reserves and the modalities of scheduling, metering and settlement of the reserves. It would address congestion management and facilitate optimisation at the regional & national level. CERC has recently ordered technical minimum schedule for operation of central generating stations and inter-state generating stations to be 55% of maximum continuous rating loading or installed capacity of the unit of generating station. This should be brought down to about 40%. Flexibility in existing fleet of conventional generation as well as pumped storage plants, demand side management/demand response may be utilised for meeting changing load profile and maintaining system stability. Time-of-the-day tariff implementation would quickly bring implementation of demand response. Flexibility requirements should encompass the minimum and maximum generation level as well as the ramp up/down rates. Thus, market design of the power sector needs to be dynamic in nature. Renewable energy can now produce power that is even cheaper than coal. Their integration into the power system, therefore, depends on the presence of other technologies. Greg Zuerlein Womens Jersey
NLC Biggest Winner In 1,500-MW Tamil Nadu Solar Auction
India’s latest solar auction, one of the biggest in the country, drew a surprisingly enthusiastic response with a big chunk of the 1,500 MW of projects on offer won by a state-owned mining company. The lowest bid in the auction in Tamil Nadu, where solar radiation is weaker than in Rajasthan, came from Bengaluru-based Raasi Green Earth Energy, which won 100 MW at Rs. 3.47 per unit, according to a list of official winners provided by one of the successful bidders. Officials of the Tamil Nadu Generation and Distribution Corp., which invited the bids, could not immediately be reached for comment. Bids were invited in May and the results were declared on Friday. The corporation got a good response this time after two of its previous tenders were undersubscribed. “The interest in the 1,500 MW tender was largely due to pent up demand,” said Raj Prabhu, cofounder of Mercom Capital Group, which tracks the Indian solar segment. The tariff of Rs. 3.47 is well above the lowest solar bid in the country so far of Rs. 2.44 per unit, made at an auction at the Bhadla Solar Park in Rajasthan in May, but it is a substantial drop from the winning bid of Rs. 4.40 per unit at Tamil Nadu’s auction in February. Apart from weaker radiation in Tamil Nadu, developers have to find land for their projects, unlike Rajasthan’s Bhadla, where companies had assured land. There were 18 winning bids among the 25 put in for the latest Tamil Nadu auction, at tariffs varying from Rs. 3.47 to 3.97 per unit. The tender states that all winners will have to agree to sell the power at the lowest tariff reached or opt out. The biggest winner was public sector mining giant NLC India (formerly Neyveli Lignite), which had bid for the entire 1500 MW, but was awarded 449 MW. The company mines lignite, which is also called brown coal, and generates power. Coal miners in India are concerned about the challenge from green energy and looking for ways to diversify. Coal India, also state-owned, is seeking services of a consultant to prepare for the future as it faces uncertainties due to its carbon footprint and the government’s commitment to the Paris accord on climate change. The response to the tender is encouraging because solar projects in Tamil Nadu have been plagued with problems. “Tamil Nadu has been struggling to generate interest in its solar tenders due to its reputation for curtailing power and inconsistent payments,” said Prabhu of Mercom. These factors were responsible for the poor response to the two earlier tenders. Even in the latest auction, most big solar developers stayed away, the exceptions being NLC India, ReNew Power, which won 100 MW, Shapoorji Pallonji Infra, which sought just 50 MW, and Rays Power Infra, which got 200 MW. “Now that it has got bids at a price it wanted, it will have to be seen how Tamil Nadu executes from here and whether it can regain the confidence of the solar industry,” said Prabhu. Robert Quinn Womens Jersey
India’s highest petrol pump runs out of diesel
At an altitude of 12,250 feet from sea level, the only petrol pump in the entire Spiti valley has been without diesel for nearly a week now. This in the midst of the peak tourist season. Spiti is connected by road from Shimla and Manali but the tankers carrying fuel are not able to reach the filling station in Kaza, which is claimed to be the highest petrol pump of the country, due to multiple landslides and a damaged bridge. The nearest filling stations are in Kinnuar, Manali or Tandi (Lahaul) which are reachable only after several hours of journey. While local residents claim that they are not getting sufficient petrol or kerosene either, the administration has claimed that problem was limited to availability of diesel only. “Two tankers are stuck near Gramphu on Manali-Kaza road due to landslides and four tankers are not being allowed to cross Akpa bridge of Kinnaur as Border Roads Organization (BRO) engineers believe heavy vehicles can cause the bridge to collapse,” Spiti additional deputy commissioner Vikram Singh Negi said. “We have some diesel in storage. We are selling it only those in dire need so that vehicles can reach the next filling station. One of the tankers is expected to reach Kaza very soon which will definitely provide some relief,” he added. The Indian Oil’s filling station at Kaza is being run by HP State Civil Supplies Corporation. As the Apka bridge in Kinnaur was not able to carry heavy machineries, the official were planning to transfer fuel to small vehicles to decrease the weight on tankers. On the other side, landslides between Gramphu and Chhatru on Manali-Kaza road were blocking the road repeatedly. June to October is the peak tourist season in Spiti valley. Other months being extremely cold with temperature at some places dipping below minus 25 degrees Celsius, this is the season to start various construction works in the valley. Not only tourists but local taxi operators, buses and all machines running on diesel have been rendered useless. Washington Redskins Jersey
India gives Iran $11 Billion `Best Offer’ on Farzad-B gas field
An Indian consortium is willing to spend as much as $11 billion to develop a giant Iranian natural gas field and build the infrastructure to export the fuel as long as the Persian Gulf nation guarantees a “reasonable return” on the project, according to the company leading the group. ONGC Videsh Ltd. has offered to invest as much as $6 billion on the Farzad-B field and spend the remaining amount to build a liquefied natural gas export facility, according to Narendra Kumar Verma, managing director of the overseas investment unit of India’s largest explorer, Oil & Natural Gas Corp. The group is seeking a return of about 18 percent, and Indian companies are willing to buy all the gas exported from the project, Verma said. “We have given our best offer to them. Now, it is up to them to agree or not agree,” Verma said in a phone interview. “We have told the Iranian authorities very clearly that some basic returns are necessary.” As India, the world’s fourth-largest LNG buyer, seeks to lock up gas resources to meet growing demand and spur the use of cleaner-burning fuels, Iran is emerging from sanctions that stifled investment in its energy sector. The Persian Gulf nation on Monday plans to sign a formal contract with Total SA and China National Petroleum Corp. to develop its share of the offshore South Pars project, the world’s biggest natural gas field. Officials from Iran’s Ministry of Petroleum and the National Iranian Oil Co. were unable to comment Sunday on Farzad-B. The two countries had aimed to conclude a deal by February on developing the field, which India has said holds reserves of almost 19 trillion cubic feet. The consortium, which includes Indian Oil Corp. and Oil India Ltd., has been trying to secure development rights to the Farzad-B gas field since at least 2009. Delay Damage The delay over a final outcome has started hurting oil trade between the two countries. India, which bought Iranian crude even during the years of U.S.-led sanctions against Tehran, has recently reduced purchases, leading to the withdrawal by Iran of some benefits on sales in retaliation, Bloomberg reported in April. “We are ready to invest,” Verma said. “Ultimately, that’s positive for them.” The South Asian nation is promoting the cleaner-burning fuel to curb the use of more polluting alternatives such as coal and petroleum coke, an oil-refining byproduct, to meet its pledge of slashing emissions by a third by 2030. ONGC Videsh and Indian Oil each own 40 percent interest in the Farsi block that holds Farzad-B field, while Oil India has 20 percent. Jaromir Jagr Jersey
Chandigarh cuts line to earn from solar power, says rate high
Even as the Chandigarh Renewal Energy , Science and Technology Promotion Society (Crest) is struggling to meet the target of generating solar power set by the central government, the electricity department has stopped giving connections on gross metering under which the total solar power generated is sold to the department. Reasons: high solar tariff and absence of policy regulating purchase of solar power generated by private plants set up by city residents. The centre had selected Chandigarh to be developed as a “model solar city“. The Crest has to achieve target of generating 50MW of solar energy , both residential and government, by 2022 through net and gross metering. Net metering is an agreement that allows a consumer to sell excess solar energy to the utility. According to the solar tariff for the current financial year, the administration has fixed buying rate at Rs 8.57 per units with an aim to promote solar power. According to senior offi cials, high tariff rate is the main bone of contention between the electricity department and Crest. The electricity department has been turning down the applications for gross metering move by residents on the grounds that the high tariff will increased the power purchase cost. “The power purchase cost is passed on to consumers. For the benefit of a few residents, it will be unfair to pass any increase in cost to all consumers,“ said a senior official. The department has been pressing for framing a policy . The department caters to 2.15 lakh consumers, of which 1.75 lakh are in the domestic category . The Crest, on the other hand, has decided to move a petition before Joint Electricity Regularity Commission (JERC) seeking direction to the electricity department for resuming gross metering connections. The standoff with the power department is hurting Crest, which is already struggling to meet the target due to shortage of space in the city, which is spread in an area of just 114 sq km. The Crest in last three years has generated 20.36 million units (MU), equivalent to reduction of 1,410 metric tonne of CO2 and planting a total of 15.3 lakh trees. Of 20.36 MU, bulk of power has been produced by plants on government buildings. So far, the response from private sectors has not been impressive. K’Waun Williams Womens Jersey
Gadkari, Prabhu, Goyal and Raju to be part of Air India privatising panel
Senior Union ministers Nitin Gadkari, Suresh Prabhu, Piyush Goyal and Ashok Gajapathi Raju will be part of a five-member ministerial panel headed by finance minister Arun Jaitley tasked with deciding the process of privatising Air India, which may start by December. The committee’s brief is to finalise the structure and procedure of privatising the debt-laden national carrier. The government wants the process to be finalised speedily and bidding to start within six months, an official said. “The mood in the government is that the process should get underway quickly,” said the official. The Union cabinet cleared the divestment of loss-making Air India and five of its subsidiaries last Wednesday. It said the ministerial panel will decide on how much stake will be divested and the universe of bidders — whether a foreign company can bid. The panel will also determine how the airline’s unsustainable debt will be treated, the spinning off of assets to a shell company, and demerger and strategic disinvestment of three profit-making subsidiaries. Air India’s three profit-making units are lowfare international carrier Air India Express, ground-handling unit AI Transport Services and AI-SATS, a 50:50 ground-handling JV with Singapore Airport Terminal Services. The government decided to sell Air India after hopes of the airline’s revival turned bleak, with losses of more than Rs 50,000 crore and debt of about Rs 55,000 crore continuing to accumulate. The carrier is afloat thanks to a Rs 30,231-crore, nine-year bailout programme approved by the previous government in 2012. The Tata Group and low-fare carrier IndiGo have shown interest in acquiring Air India. While the Tata Group has not made its interest official, IndiGo has written to the aviation ministry saying it may bid for the airline. IndiGo president Aditya Ghosh said in a letter to employees that its “interest in Air India is primarily in its international operations.” IndiGo cofounder Rakesh Gangwal has significant experience with turnarounds as former CEO of US Airways. He has also dealt with airline unions, which might come in handy in any possible acquisition of Air India. The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi approved the recommendations of Niti Aayog on strategic disinvestment of Air India and five of its subsidiaries based on the recommendations of the Core Group of Secretaries on Disinvestment. The government may look at exiting Air India completely. The Niti Aayog proposed total privatisation of the national carrier in a report to the Prime Minister’s Office. Parker Ehinger Womens Jersey
Can an airport be a destination?
Kolkata: Airports, for most travellers, tend to fall into two categories. The first is the shoot-me-now domain of the budget airline, where passengers are kettled into pens akin to those found in a knacker’s yard. The second is the not-as-smart-as-it-thinks international hub. This is a place where rush-hour crowds, a dire lack of seating and offensive coffee see you trot to the gate as fast as possible. The less time spent in these vacuous, cookie-cutter hangars, the better. But – wait – there is a third. A holy grail game-changer, with easy-on-the-wallet street food, custom furniture and vernacular architecture. And Changi Airport, on a spit of reclaimed land in Singapore, claims to be such a utopia. Here, I’ve heard, it’s not uncommon for fanatical locals to spend all weekend eating, drinking and shopping without once leaving the mall-like hive of terminals. I have a 48-hour layover in Singapore coming up, so instead of going into the city, I’m going to have a holiday in the airport, from Saturday to Monday morning. 9.00am. Departures level, a little bleary-eyed from an overnight flight, and I’m zipping to T3 on the Skytrain, a landmark monorail that shocked everyone as Asia’s first driverless train when it opened in 1990, and now ferries passengers between the terminals. We whisk past Changi’s latest madcap attraction; the Jewel, a new, S$1.7b terminal-in-progress that’s due open in 2019. Once finished, it will house a hedge maze, 130ft waterfall, tropical canopy walkway, and “indoorto clouds”. Barmy? Even Singaporeans think its nuts. 10.00am. Indoor clouds are just the start here at the world’s sixth busiest airport. Eyeing the airport diorama on the public concourse, it’s clear the razzamatazz is relentless. Brandon Kintzler Womens Jersey
GST: Aviation sector to face teething problems, says SpiceJet CMD Ajay Singh
In a U-turn, the ministry later said it was prepared for the GST roll-out from the stipulated date. “I think it is a revolutionary reform and the government needs to be lauded for its courage to go forward with such a big reform. Any such reform will have its share of teething problems and so will this one,” Singh told reporters at an event here. Double taxation on import of aircraft wherein their import as well as leasing of the same plane will invite separate taxes is an area of concern that the airlines have shared with the government, he said. The SpiceJet CMD said input tax credit being not available for economy class tickets -— a segment where there are more number of passengers, was another matter of concern. The aviation sector is likely to face “teething problems” for four to six months due to the implementation of the Goods and Services Tax (GST), SpiceJet CMD Ajay Singh said today. He, however, said his airline was “fully prepared” to usher in the indirect tax regime from July 1, and that airlines were working along with the government to resolve any concern. The aviation ministry had earlier sought postponement of the GST implementation by two months on the ground that airlines needed more time to revamp their systems to comply with the new tax regime. Input tax credit allows an entity to deduct the levies paid for the inputs while paying the taxes on the final output. Since GST is applicable for goods as well as services, input tax credit provides a leeway for the entities concerned. “We will wait for a clarification,” he said. “Any reform of this magnitude will have its share of problems and this one will too. It will take four to six months (to resolve them),” Singh noted. Airline officials have maintained that making changes in the global ticket distribution system to ensure compliance with GST would take time. Airlines are also in a fix over the possibility of movement of stocks, equipment or aircraft parts being taxed under the new taxation policy. Global airlines body International Air Transport Association (IATA) has also sought clarifications on the tax treatment for the aviation sector under GST and claimed there were “information gaps”. On the impact of demonetisation, the SpiceJet CMD said the airline’s yields had improved and that the impact of the note ban came down over the past two quarters. Max Jones Authentic Jersey
Government clears Rs 3,691 cr highway project in UP
The Centre today approved a Rs 3,691 crore highway project in Uttar Pradesh that is part of the Golden Quadrilateral between Delhi and Kolkata. “The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has given its approval for development of six laning of Chakeri-Allahabad section of National Highway (NH) – 2 in Uttar Pradesh,” Ministry of Road Transport and Highways said in a statement. The cost of the project is estimated to be at Rs 3,691.09 crore, including cost of land acquisition, resettlement and rehabilitation and other pre-construction activities. The total length of the road to be developed is approximately 145 kms. “This work will be done under National Highways Development Project (NHDP) Phase V on Hybrid Annuity Mode,” the statement said. The project will help in expediting the improvement of infrastructure in Uttar Pradesh and in reducing the time and cost of travel for traffic, particularly heavy traffic, plying between Chakeri and Allahabad. The development of this stretch will also help the socio-economic condition of this region in the state, the government said. This project on NH-2 is a part of Golden Quadrilateral between Delhi and Kolkata. The project will have direct influence on the South- Western part of Uttar Pradesh. Important towns and urban settlements enroute are Kanpur Nagar, Ruma, Chaudagra, Malwa, Fatehpur and Kaushambi. Kanpur is one of the oldest industrial townships of North India. It is also included in the ‘Counter-Magnets’ of National Capital Region. Allahabad is a famous pilgrimage centre, with ancient historical monuments and buildings as well as many educational institutions. The statement said, “In the project, there is a provision of 11 Truck Lay-bye where trucks stop mainly for loading and unloading. There is also provision of Bus lay-bye at 18 locations. Nine flyovers are also proposed in addition to 14 Vehicular Under Pass and 25 Pedestrian Under Pass.” It added the project would also increase employment potential for local labourers. “It has been estimated that a total number of 4,076 mandays are required for construction of one kilometre of highway. As such, employment potential of 5,91,000 (approx) mandays will be generated locally during the construction period of this stretch,” the statement said. Troy Hill Authentic Jersey
Will not pursue Air India bid if not profitable: IndiGo President Aditya Ghosh to staff
Having joined the race to buy out Air India, IndiGo President Aditya Ghosh has told employees that it will not embark on the journey if it is not profitable and jeopardises interests of the airline. Making its intention clear to become a world-class international carrier, IndiGo became the first airline to formally express interest in loss-making Air India soon after the government decided on its disinvestment even as the modalities are being worked out. IndiGo, the country’s largest airline with a domestic market share of a little over 41 per cent, is keen on snapping up the international operations of Air India as well as its profitable low-cost arm Air India Express. As an alternative, the budget carrier is “equally interested” in buying out all the operations of Air India and Air India Express, according to the letter sent by Ghosh to the civil aviation ministry. After showing its interest in Air India disinvestment — a development which was first announced by the ministry — Ghosh wrote to IndiGo staff listing out the reasons behind the move and sought to assure them that every action would be in the best interest of the airline. “Let me be very clear that if it is not profitable and does not add value to our employees, customers and shareholders, we will not embark on this journey,” Ghosh, who is also a Whole-Time Director, told employees on Thursday. “As one of those who bleed blue and who have helped build this great organisation, you can rest assured that your leadership team and the founders of IndiGo will never do anything to jeopardise what you helped build and will always act in the best interest of IndiGo,” he said. Noting that IndiGo is primarily interested in Air India’s international operations, Ghosh said that over the past decade, a significant domestic network has been created which gives confidence to build a world-class international airline in the scale and scope of some of the largest airlines in the world. With a fleet of nearly 135 aircraft, IndiGo operates over 900 flights on an average every day. Besides, the carrier has more than 450 planes on order. In his letter to the employees about interest in Air India, Ghosh stressed that without IndiGo’s domestic feed network, it does not make sense to embark on this journey. “… if we do go down this path, it would require significant restructuring of the acquired operations. In that journey, we are not going to take on debt and liabilities that could not be supported by the new restructured operations,” he noted. Asserting that IndiGo will not embark on the journey if it is not profitable, Ghosh said the leadership team and the founders will never do anything to jeopardise what has been built. As it pursues aggressive plans, IndiGo has also flagged concerns over some overseas airlines being given “disproportionate access” to the Indian aviation market. “Over time, India has allowed disproportionate access to airlines of some of the city states in the Middle-East and South-East Asia. The massive hubs that these airlines have built significantly benefited at the expense of India. “As a consequence of this, India’s international air transportation hubs reside outside the geography of our country. It is time for India to take back its fair share of international traffic and bring back this economic wealth to where it rightfully belongs,” Ghosh said in the letter, dated January 28, written to the ministry. Before IndiGo made this letter public on Thursday, Civil Aviation Secretary R N Choubey had said IndiGo has written a letter with an unsolicited expression of interest in the divestment procedure of Air India. The Cabinet has decided to form an Air India-specific Alternative Mechanism to take forward the disinvestment plan. Various issues, including the treatment of unsustainable debt of Air India, hiving off certain assets to a shell company and de-merger and strategic disinvestment of profit- making subsidiaries, will be looked into. Air India has a debt burden of over Rs 50,000 crore and is staying afloat on taxpayers’ money. Mark Duper Jersey