Spot power price falls to Rs 2.49 per unit in July
The average spot price of power fell 4 per cent to Rs 2.49 per unit in July 2017 from Rs. 2.59 per unit in the previous month in June at the electronic power trading platform, Indian Energy Exchange (IEX). “The average Market Clearing Price (MCP) during the day (08:00 to 18:00 Hrs) and the night (01-06 Hrs and 24 Hrs) was Rs 2.18 per unit while during the evening peak (19:00 to 23:00 Hrs) the average MCP was Rs 4.03 per unit,” IEX said in a statement. The spot market witnessed total trade of 3,669 million units (MU) marking a 6 per cent decline from 3,920 MU traded in the previous month with 118 MU traded on a daily average. “With rains continuing in most parts of the country except in South, the demand for power eased a bit,” the statement said. The market pre-dominantly remained a buyer’s market with average daily sell bids of 216 MU exceeding the average daily buy bids of 139 MU with the highest trade of 166 MU on 30 July, 2017. According to IEX, July saw an increase in inter-state transmission congestion mainly on account of import of power by Northern and Southern States which were constrained 10 percent and 15 percent of the time respectively. “One Nation, One Grid, One Price was realized on 10 days in July, while in the last month, one price was realized on 27 days,” IEX said. The daily average loss due to congestion on the inter- state transmission network was 1.64 MU compared to overall loss of 6 MU and daily average loss of 0.2 MU in June with the overall loss of 51 MU. The average Area Clearing Prices (ACP) across regions in July were — Rs 2.54 per unit in North, Rs 2.59 per unit in South and Rs 2.45 per unit in the rest of India. July saw as many as 1,005 participants trading in the spot market on an average daily basis with the highest participation of 1,068 participants traded on 15 July, 2017. Marshawn Lynch Womens Jersey
Solar power tariff falls by 80% in seven years
Solar power tariff in the country has fallen by 80% since 2010. The maximum tariff for solar power was seen in December 2010 when 150MW was sold at Rs 12.76 per unit under the Jawaharlal Nehru Solar Mission. Since then, the tariff has fallen steadily with the lowest tariff of Rs 2.44 per unit for 500MW in Rajasthan. The solar power tariff has been falling only when the states or agencies go through the bid mode. Tamil Nadu which followed the power purchase agreement does not figure in the list of states that took advantage of falling solar power tariff until 2015. “Reduction in solar power tariff depends on several factors like solar irradiance, project cost, debt-equity ratio, cost of financing, return on equity, operation and maintenance cost,” said Union power minister Piyush Goyal in Lok Sabha on Thursday. “In 2015, when Tamil Nadu signed several MoUs with solar power companies for Rs 7.01 per unit, states like Rajasthan and Madhya Pradesh had firms quoting Rs 5.25 per unit. We did not capitalise on the falling tariff of solar power as we were following the power purchase agreement (PPA),” said a power expert, not willing to be named. A look at the data presented by the power minister shows that the solar power tariff across the country started falling from Rs 6.88 per unit to Rs 4.63 per unit in nine months of 2015. “We wanted to adopt the tender process way back in 2013 and we received the lowest bid of Rs 5.97 per unit but TNERC rejected it and adopted the PPA model,” said a TNEB official. Compared to several sunshine countries, India’s solar power tariff is still high. While in Dubai, the tariff in May 2016 was US cent 1.99 per unit, in Abu Dhabi in September 2016, per unit tariff was US cent 2.42 per unit. In South America, the tariff was slightly higher. Chile has a tariff of US cent 2.91 and Mexico at US cent 2.7 per unit. Vernon Davis Jersey
Power workmen threaten stir in Chandigarh
The Electrical Workmen Union on Wednesday set a deadline of August 17 for the authorities to meet their long-pending demands. If the authorities fail to comply, the union will stage protests from August 18. The decision was taken in the meeting of the union, which was chaired by its president Kishori Lal. In the first phase of the agitation, effigy burning processions will be organised and then relay hunger strikes. The demands include categorisation of technicians as per orders of the administration, implementation of old pension scheme in regards to the workers regularized after 2004, implementation of labour laws in respect of contractual employees, filling up of 40 vacant posts and special allowance to workers at par with Punjab. UT Powermen Union is also at loggerheads with the administration for non-fulfilment of their long pending demands. Anthony Hitchens Womens Jersey
‘Solar tariffs at Rs 3 a unit may be the new normal’
NTPC chairman Gurdeep Singh said Rs 3-3.20 a unit tariff for solar power may be the new normal and can be achieved without the support of “cheap funds or cheap panels“, which have been a concern for the industry. Solar and wind energy units generate less than 10% of the global electricity output and have remained on the side-lines historically as these projects were taken up to fulfill a social responsibility towards clean energy. But these green energy sources have seen a decline in prices making them comparable to conventional energy and causing a disruption in the power sector. India too has rapidly scaled up its renewable energy capacity , led by solar power in the last few years. But the steep fall in tariff has triggered concerns over project viability. “We should be happy with lower solar bids, especially when the process is done in such a transparent manner. In the current environment, solar power tariff would be Rs 3-3.20 a unit without relying on cheap funds or compromising on quality ,“ Singh said. The Parliamentary Standing Committee on energy gave critical feedback on the solar energy sector, asking the government to help developers raise funds but has also raised concerns over the viability of these projects given the steep fall in tariff as a result of aggressive bids by developers. The solar power tariff plummeted to its lowest level in May at Rs 2.44 per unit energy in the auction for 500 megawatt (mw) of projects in Rajasthan. The tariff was about Rs 11 seven years ago. While Singh did not comment on the viability of project that are offering solar power at Rs 2.44, he said solar energy would play an important role in incremental capacity addition in the country but coal based-power would continue to be necessary to ensure cheap and continuous power supply to consumers. “We are aligning our business such that our incremental capacity is more in renewable and less in coal. We are quite confident of adding 25 gigawatts for renewable energy,“ Singh said. NTPC has commissioned 847 MW or renewable energy capacity , has 73 MW under execution and another 1,275 MW under tendering process. The company’s target is to develop 10 GW of renewable energy as a commitment to the government. It is also developing another 15 GW under National Solar Mission (Phase 2). NTPC is the only power generator investing in conventional energy and its orders are being chased by power equipment majors like BHEL and L&T. Marcel Dionne Womens Jersey
NTPC has no plans to acquire stressed power projects: Government
State-owned NTPC has no plans to take over stressed assets in the power sector, the government said today. “Currently, NTPC has no proposal to acquire stressed power projects or enable their lenders to operate on a contract basis,” Power Minister Piyush Goyal said in a written reply to the Rajya Sabha. Neyveli Lignite Corporation of India Ltd (NLCIL) has identified Damodar Valley Corporation’s Ragunathpur thermal power plant for acquisition, the minister said. Neyveli Lignite has also shortlisted two suitable stressed power assets for a possible takeover to increase its electricity generation capacity, he added. The recovery of non-performing assets, he said, is an ongoing process that depends on various factors, including the resolution plan. Jason Kasdorf Womens Jersey
Draft Energy Policy: Several unanswered questions
The 2017 National Energy Policy (NEP), drafted by the NITI Aayog, takes the baton forward from the 2006 Integrated Energy Policy (IEP) in setting the trajectory of growth for the energy sector. The value proposition of the NEP is to present a broad framework for the overall energy sector, taking into account the multiple technology and fuel options. However, the NEP draft comes at a time when the energy sector is seeking clarity. In the face of claims of surplus power, even as rampant energy poverty continues to plague the country, the sector needs clear signals of the future pathways. This need has become particularly pronounced with the rapid decline in renewable energy tariffs, and an associated and projected scaling up of grid-connected clean energy. Highlighting the difference between the IEP and NEP, Piyush Goyal, Minister of Power, Coal, New and Renewable Energy and Mines, lauded the NEP for taking the sharp decline of crude oil prices, change in solar energy technology, heightened concern of climate change issues, and the government’s rural electrification agenda into account. However, apart from this, there is a stark difference in the broad approaches adopted by the erstwhile Planning Commission in framing the IEP and the NITI Aayog in framing the NEP. The IEP laid out a roadmap and provided a basket of specific measures to meet specific objectives. For instance, the section in the IEP on the advancement of renewable energy recommended the conversion of the Indian Renewable Energy Development Agency (IREDA) into a national refinancing institution on the lines of NABARD, specifically to advance clean energy. The NEP, however, contains a list of general courses of action for the government — identified objectives that could be considered for implementation. Going by the broad strokes of the NEP, credit is due to the NITI Aayog for recommending some revolutionary reforms, such as the opening up of the entire power sector value chain to private investment in order to create an efficient electricity market. However, it fails to provide an adequate framework for a number of issues that have arisen and intensified over the course of India’s ongoing energy transition, which is still in its nascent stage. On the renewable energy front, the NEP disappoints by failing to address the rampant uncertainties, specifically on issues around renewable purchase obligations (RPO) and renewable energy certificates (REC). The only half-hearted consolation on offer is targeted at the distribution companies (Discoms) which have been assured of government support for implementation of RPO and REC obligations. The RPO system has perhaps already served its purpose in nudging states with renewable energy potential to incorporate clean energy into their energy mix. As renewable power becomes more commercially viable, states could be left to decide how, when and what source of power to integrate into their system, as no clear measures are being adopted to provide the much-needed enforcement of the obligations. Policy uncertainty is further highlighted in the NEP’s focus on utilising coal powered thermal plants for securing the base load requirement to meet rising energy demand. The NEP’s reliance on thermal power fuels scepticism about India’s commitment to clean energy, and could distort investor confidence in the renewables sector. From both an air quality and a climate leadership perspective, it would not be ideal for India to stress on expanding its thermal power capacity to 441 GW in 2040 from 125 GW in 2012, as proposed in the NEP, without having adequate technology in place for improving the efficiency and reducing the emissions from these plants. The Ministry of Environment, Forests and Climate Change had come down hard on coal-fired thermal power producers in 2015, setting a December 2017 deadline for meeting revised norms on emissions. However, with developers being reluctant to absorb the high cost for retrofitting their projects to meet the new standards (around Rs 1 crore or $1.56 million per megawatt), the government is likely to push the deadline for compliance to December 2019. The NEP makes broad recommendations on how India should work towards developing and acquiring technology needed for the energy sector. However, it does not recommend consistent and strong policy and budgetary support for technology development. The NEP prescribes grid-based supply to all households to be India’s primary endeavour, with renewable energy implemented to address the access issue only in cases where grid power is unavailable. The NITI Aayog in this instance has used the term renewable energy interchangeably with decentralised renewable energy. A rationale for this position has not been indicated, even as the government continues to promote decentralised electrification programmes. Rather than promoting a particular means of electrification, the NEP could encourage context-specific electrification approaches, by considering economic viability, consumer demand and aspiration, affordability, as well as reliable provision of electricity. As India’s importance and role in the global energy markets continues to grow, it needs to be strategic in its energy planning. Josh Doctson Authentic Jersey
Loss of power supply from private companies won’t hit Gujarat, says state’s power utility chief
Gujarat will be able to withstand any loss of generation from the three stressed electricity plants of Tata Power, Adani Power and Essar Power that run on imported coal, the managing director of the state’s power utility said. The state has a diversified generation portfolio with a balanced fuel mix, Pankaj Joshi of Gujarat Urja Vikas Nigam Ltd (GUVNL) told ET in an interview. “Non- or less availability of generation from a particular fuel may have a marginal impact. However, there is no threat to the financial position of distribution utilities,” he said. GUVNL, the umbrella company managing electricity supply in Gujarat, is exploring blending of domestically produced coal with that imported from cheaper sources and increased purchase of the fuel from the spot market to insulate consumers from fluctuations in international coal prices, he said. In June, Tata Power, Adani Power and Essar Power each offered a 51 per cent stake in their Gujarat plants that use imported coal for Rs 1. These plants are under financial stress as they are unable to increase electricity prices to offset higher cost on imported coal. The reason for the higher cost on the fuel is changes in laws in supplier countries. The Supreme Court in April ruled that increase in coal prices due to such a reason cannot be cited for changing the terms of power purchase agreements. While SBI is drawing up various options, GUVNL is in the process of completing its due diligence. “State has received the proposal from generators offering stakes. State has yet not done detailed technical, financial and legal due diligence. Further, other states are also involved in the matter and their view also needs to be taken into consideration,” Joshi said. “Once it is done, it may enable the state government to take a suitable view in the matter.” Tata Power operates the 4,000 mw Mundra ultra mega power project that has power supply pacts with five states. Adani Power’s board has already approved hiving off its 4,620 mw Mundra plant and is exploring offering a majority stake in the resultant subsidiary to GUVNL that buys 2,000 mw from the project. Essar Power offered its 1,320 mw Salaya plant to Gujarat after the adverse ruling from the court. Tata Power has said lenders to Mundra project have suggested selling a stake to power procurers from the plant. He said Gujarat has adequate power capacity tie-ups on a long-term basis. “It is making constant efforts towards cost optimisation and may pursue purchase under long, medium and short term to optimise the cost,” Joshi said. D.J. Fluker Authentic Jersey
Ramp up capacity to achieve 100GW solar target by 2022: Study
India will need to add over 15,000 MW solar capacity every year to achieve the target of 1,00,000 MW by 2022, a study has said. The country’s installed solar capacity fell short of target of 17,000 MW by the end of the financial year 2016-17, according to the joint study undertaken by NEC Technologies and industry body Assocham. “The country will need to significantly ramp up the pace of solar capacity additions by 10,000 MW this fiscal and over 15,000 MW per year to meet the 2022 target of 1,00,000 MW (100GW), which the government set up in 2014,” it said. The biggest technological issue in terms of solar is the efficiency of solar cells, the study said. “Currently, the efficiency ranges from 12-20 per cent, though this continues to improve. The rest of the energy striking the panel is either reflected or is wasted as heat. The main issue with efficiency is that higher efficiency solar panels cannot be commercially mass produced,” it said. To achieve the 1,00,000 GW target by 2022, the focus has slightly shifted from indigenous manufacturing as policies to curb the imports from other countries are not benefiting the domestic manufacturing. Furthermore, the increase in taxes in the GST structure in solar from zero per cent to 5 per cent, coupled with reduced taxes in coal from 11.69 per cent to 5 per cent, may lead to slow adoption of solar in the Indian energy sector, the study said. Lack of uniform policies across sectors and implementation issues is also an area of concern, it said. “In India subsidy structure is complex and there are involvement of multiple agencies. Land allotment is a long procedure in India, which requires approvals at different levels from authorities.” Currently, the foreign investment in Indian solar industry is less than 20 per cent, the report said. Even 100 per cent FDI under automatic route and 74 per cent through foreign equity participation in a joint venture (without approval) have not paved the way for significant foreign investments in this sector, it added. Herman Edwards Womens Jersey
Rooftop solar target of 40 GW by 2022 ‘unrealistic’: Parliament panel
A Parliamentary panel today said the rooftop solar target of 40 GW by 2022 is “unrealistic” and it needs to be “reconsidered”. “The Committee feels that the rooftop solar target of 40 GW by 2022 is unrealistic and it is highly unlikely that this target will be achieved,” the Standing Committee on Energy (2016-17) of the Ministry of New and Renewable Energy said in its latest report tabled in Parliament today. The panel further said the Centre should give the scheme a “serious relook”, else, it will derail the target achievement of the National Solar Mission. “The Committee, therefore, recommends that the target of 40 GW through rooftop solar projects should be reconsidered,” the report said. The panel was of the view that rooftop systems were not remunerative for the consumers on account of cost of maintenance being high, the report said. “The Committee noted that out of the 100 GW solar power, 40 GW is to be achieved from grid connected solar rooftops in residential, social, institutional and government sectors in the country,” it said. The government had earlier announced raising the solar power generation capacity addition target by five times to 1,00,000 MW by 2022, which will entail an investment of around Rs 6 lakh crore. Damian Jones Jersey
Polish power demand hits summer record as heatwave persists -operator
Polish electricity demand set a record for a summer morning at 23.82 gigawatts (GW) on Tuesday, the grid operator PSE said adding there is no threat to the system despite the increased use of air conditioning as high temperatures persist. The previous record for a summer morning (GW) was 22.88 gigawatts on June 28 2017. “We are carefully watching the system, but there is no threat and as of today the system is balanced,” PSE spokesman said. Poland, which generates electricity mostly from outdated coal-fuelled power stations, faces the risk of power shortages when temperatures reach extreme levels as increased demand overloads the system. Weather forecasters said some areas of Poland face temperatures of over 30 Celsius (86 Fahrenheit) degrees this week. Also, Poland’s two biggest power plants were closed last month for planned maintenance. Polish energy ministry said in June the electricity network would be able to handle a heatwave this summer, after a European power network lobby group ENTSO-E warned that prolonged heatwaves may cause problems for Poland’s and Italy’s electricity networks. Pierre-Edouard Bellemare Womens Jersey