The truth behind Indias electricity exporter status
The ministry of power last week claimed that India had become an electricity exporter for the first time. “As per Central Electricity Authority (CEA), the designated authority of government of India for cross border trade of electricity, first time India has turned around from a net importer of electricity to net exporter of electricity,” the ministry said in a statement, adding that upcoming cross-border transmission lines with Nepal, Bangladesh and Myanmar will continue to increase sales. India exported around 5798 million units of electricity to Nepal, Bangladesh and Myanmar, which is 213 million units more than the import of 5,585 million units from Bhutan during the April-February period in fiscal year 2016-17. Exports to Nepal and Bangladesh increased 2.5 and 2.8 times, respectively, in the last three years. Does India’s status as an electricity exporter mean that it has started producing surplus electricity? The reality is a large number of India’s households are still living without electricity. Available government data shows there is a discrepancy in the percentage of villages electrified as against the share of rural households electrified. The former set of figures is often cited to portray India’s electrification challenge as an already accomplished one. What explains the wide gap between the share of electrified households and villages? According to the Deen Dayal Upadhyaya Gram Jyoti Yojana website, a village is deemed electrified if basic infrastructure such as distribution transformer and distribution lines are provided in the inhabited locality as well as the Dalit Basti hamlet (where it exists), and electricity is provided in public places like schools, panchayat office and health centres. Here’s another interesting thing. For a village to be considered electrified, at least 10% of total households have to be electrified. But the actual supply of electricity is not mentioned in the definition of electrification. Such a definition means that village electrification numbers have little bearing on the supply of electricity in reality. Data from 2011 census shows that almost one-third of the households in the country were dependent on kerosene as a source of lighting, with the situation being worse for rural households. This is even as over 84% of villages had been electrified in 2011-12, as per data with the Centre for Monitoring Indian Economy (CMIE). International comparison also underlines the fact that Indians consume much less electricity in comparison to their peers. The ratio of domestic and world electricity consumption (per capita) was broadly similar in India and China in 1990. Latest data shows that China has surpassed the global average in terms of power consumption, whereas India is still stuck at its pre-reform relative electricity consumption levels. In 1990, India reported 273 kilowatt hour (kWh) of electric power consumption, as against 511 kWh in China and 2,120 kWh in the world. In 2013, these figures were 765 kWh, 3762 kWh and 3104 kWh, respectively, as per World Bank data. India’s efforts to sell electricity to its eastern neighbours might bring strategic and diplomatic benefits and also open new frontiers for exploring electricity generation opportunities in the region. Such developments, however, should not make us oblivious to the fact that a large majority of Indians are still living in darkness in villages which have been declared electrified on paper. Christian Covington Jersey
Hydro power projects of 11,928 Megawatt capacity under construction: Goyal
Forty three hydro-electric projects, with total generating capacity of 11,928 MW, are under construction, the Lok Sabha was informed today. Out of these 43 projects, 16 are stalled due to financial constraints and other reasons, Power Minister Piyush Goyal said. The total power generation capacity of the 16 projects is 5,163 MW and the anticipated completion cost of these projects would be Rs 52,306 crore while their original cost was Rs 27,027 crore, he said. “As per the calculation made by the Central Electricity Authority, the annual loss of energy generation from these stalled projects is about 15,564 million units,” he said during Question Hour. The minister said a panel to monitor power projects, set up by the Ministry of Power, independently follows up and monitors the progress of the hydro projects. He said the CEA monitors the progress of under- construction power projects through frequent site visits and interaction with the developers and equipment suppliers. “Regular reviews are also undertaken in the Ministry of Power to identify the constraints areas and facilitate faster resolution of the hydro projects,” Goyal said. John Lynch Authentic Jersey
Essar Power generation up 49 per cent at 11.33 billion units in FY17
Essar Power produced 49 per cent more electricity at 11.33 billion units (BUs) last fiscal ended March 31, as against 7.63 BUs in the previous year. The generation was up 57 per cent for the January-March quarter of 2016-17 at 2.92 BUs compared to 1.86 BUs in the year-ago period, Essar Power said in a statement. It said 165 MW generation capacity has been added by commissioning one unit each at its Paradip and Hazira plants. With the Commissioning of the second 135 MW unit of the 2×135 MW Hazira power plant in Gujarat, the project is now fully commissioned and operating on full load. The second 30 MW unit at the 4×30 MW Paradip power plant in Odisha was also commissioned in the fiscal. With this, half the targetted capacity of 120 MW for the Paradip power plant has been commissioned. In 2016-17, Essar Power’s Mahan plant resumed operations after a gap of 19 months. Operations restarted at the beginning of the financial year and have continued without interruption banking on e-auction coal provided by Coal India Essar Power MP Ltd, which operates the Mahan plant, procured over 3 million tonnes of coal through the e-auction route in 2016-17. Essar Power’s operational capacity in India now stands at 4,755 MW. The company is currently developing the 1,200 MW Tori plant in Jharkhand and the remaining 2×30 MW units in Paradip. Essar Power’s total power generation capacity when these two plants come on stream will be 6,100 MW (including the 85 MW plant that is operational in Algoma, Canada). Essar Power CEO KVB Reddy said: “Almost 80 per cent of our planned capacity of 6,100 MW is now operational with eight out of nine plants up and running. The initiatives of the ministries of Power and Coal in the last fiscal provided a fillip to the sector, helping us restart operations at the Mahan plant.” He said Domestic coal auctions have helped mitigate the issue of coal availability. Reddy said the government should consider reducing interest rates that currently make most power projects financially unviable. “Measures like the RBI’s 5/25 scheme will help optimise power generation costs.” Essar Power Ltd is a private sector power producer with over 20 years of operating track record. It owns power plants in India and Canada with a total planned generation capacity of 6,100 MW, of which 4,840 MW is operational. Of the total operational capacity, 3,240 MW is coal-based, while 1,600 MW is gas-based. The operating plants in India are at Mahan in Madhya Pradesh, Hazira, Salaya & Vadinar in Gujarat and Paradeep in Orissa. A 1,200 MW coal based power plant at Tori in Jharkhand state is under development. Fabian Moreau Womens Jersey
Bhel sets up over 45K MW capacity; beats 12th Plan target
State-owned power equipment maker Bhel today said it has added 45,254 MW capacity during the 12th Five Year Plan period (2012-17) beating the targets set for the company. “Renewing thrust on accelerated project execution, Bhel has achieved a capacity addition of 45,274 MW of utility sets during the 12th five year plan, surpassing the Government’s capacity addition target by 9 per cent,” Bhel said in a statement today. The government had set the target of 41,661 MW power generation capacity addition for Bhel. Bhel said it continues to remain the single largest contributor to the country’s installed capacity of utility sets, with a share of 46 per cent in the 12th Plan capacity addition. Its capacity addition was 78 per cent higher than in the 11th Plan (2007-12). During 2016-17, Bhel has achieved a capacity addition of 6,317 MW in the utility segment, which is nearly four times of the next highest achievement by any other manufacturer. Besides, 1,422 MW of industrial sets and 78 MW of overseas sets have also been commissioned by Bhel during the year, in addition to 61 MWp of Solar Power Plants, including 50 MWp at Ananthapur in Andhra Pradesh. With the commissioning of 4 Roof Top Solar Plants, totalling to 403 kWp, during the year, Bhel has enhanced its presence in this emerging segment as well. With this, a total of 8,538 MW has been synchronised/commissioned in the year. The company added another feather in its cap by foraying into the field of power generation as a co-developer, with the start of commercial operation of the first unit of its 2×800 MW project at Yeramarus, Karnataka. Montravius Adams Jersey
UDAY suggests power tariff hike only by 2019
The Union Power Ministry’s UDAY scheme which Kerala has finally joined does not anticipate any increase in power tariffs during 2017 or 2018. UDAY – short for Ujwal DISCOM Assurance Yojana (UDAY) – expects a five-per cent hike in tariffs only in 2019, according to the tripartite agreement signed by the Power Ministry, Kerala government and the KSEB. The Central scheme recommends a hike only by 2019 at a time when domestic tariffs in the state are set to go up by an average 30 paise per unit this month. UDAY is a debt-relief scheme designed to bail out loss-making power distribution companies, but the state government had dithered in signing up as it would have to take over the KSEB’s debts. Although the agreement was signed in early March, it has not been publicised yet. In suo motu determining tariff revision, the state electricity regulatory commission had found a revenue surplus of Rs 740 crore for the KSEB during 2017-18, but ‘truing up’ its finances for 2011-12 and 2012-13, the commission finally concluded there was a revenue gap, and hence, the need for a revision. However, under UDAY, the past debts of state-run utilities have to be taken over by the government. UDAY lists out certain duties for Central and state governments and the KSEB. The state government has to review the KSEB’s performance every month. It has to ensure banks and financial institutions do ‘’not advance short-term debt to the KSEB for financing losses.’’ Outstanding power bill dues from state government departments are to paid up by March 31, 2019. The government will also improve the efficiency of KSEB’s power generation units. The KSEB must slash technical and commercial losses in power distribution to 11 per cent by 2019. It should launch a ‘name and shame’ campaign to check power theft, introduce proper electricity metering including smart metering, energy audits and ensure electrification of all households by 2017. It should also file tariff petitions on time before the commission. On its part, the Centre will facilitate coal linkages for the state. It will also take steps to quickly complete the construction of inter-state transmission lines. The tripartite agreement was signed by joint secretary Arun Kumar Verma on behalf of the Power Ministry, Additional Chief Secretary Paul Antony on behalf of the state government and KSEB CMD K Elangovan. On paper UDAY is optional, but the Centre had set a condition which said states which fail to meet ‘operational milestones’ would lose claim on grants provided under Central schemes for improving power supply in urban and rural areas. Derek Carrier Womens Jersey
India’s solar energy capacity expanded by record 5,525 MW
India’s solar energy capacity has expanded by a record 5,525.98 MW in 2016-17, according to the latest figures provided by the ministry of new and renewable energy (MNRE). In comparison, India had added 3,010 MW of solar capacity in 2015-16, which shows that growth nearly doubled over the past year. Cumulative solar capacity currently stands at 12,288.83 MW, against 6,762.85 MW at the end of March 2016. Officials said the ministry has strived hard to expand solar power generation as the power, coal, renewable energy and mines minister Piyush Goyal has set such ambitious targets that the growth is impressive even if it falls short of the target. The cumulative target the MNRE had set earlier was 17,000 MW by the end of 2016-17. “By the end of next year, our minister has committed to a cumulative target of 20,000 MW,” said Santosh Vaidya, joint secretary at MNRE. “This would mean adding another 7,750 MW in 2017-18. Once we do so, we will have reached the Jawaharlal Nehru National Solar Mission (JNNSM) target two years in advance.” The JNNSM had initially set a target of 20,000 MW of solar capacity by 2020. However, that was scaled upwards by Prime Minister Narendra Modi after he took over in 2014, raising it to 100,000 MW of solar power by 2022. Among the states, Andhra Pradesh added the maximum solar capacity in 2016-17 (1,294.26 MW), followed by Karnataka (882.38 MW) and Telangana (759.13 MW). Other major additions were in Rajasthan (543 MW), Tamil Nadu (630.01 MW), Punjab (388 MW), Uttar Pradesh (193.24 MW) and Uttarakhand (192.35 MW). With this year’s additions, Andhra Pradesh now leads in cumulative solar capacity among states (1,867.23 MW) displacing Rajasthan (1,812.93 MW), which had been No. 1for the past three years. Gujarat, which topped in solar generation for many years, is now at No. 4 with 1,249.37 MW, while Telangana with 1,286.98 MW is No. 3. As in previous years, many projects were commissioned just in time to beat the year-end deadline. Of the 5,526 MW added, only 2,803.77 MW had been commissioned till February end, but it was followed by a spurt of more than 2,700 MW in March 2017. “These projects were ready and were only awaiting their synchronization with the grid or state approval or signing of the power purchase agreement,” said Vaidya. Given the falling solar tariffs, use of solar energy is expected to keep increasing. “We have seen how low tariffs have fallen at bids such as the one at the Rewa Solar Park,” said Vaidya. The winning tariff at the last auction conducted for projects at the Rewa Park was Rs 2.97 per kwH for the first year, followed by small increases in subsequent years, well below the earlier benchmark price of Rs 4 per kwH for solar power. “Renewable energy can be an energy alternative now and states can go beyond fulfilling their renewable power obligations (RPOs),” Vaidya added. However, effective scheduling and forecasting for intra-state transmission of solar power is necessary to achieve future targets successfully. Bryan Bulaga Jersey
Tata Power Renewable Energy commissions 100 MW wind farm in Andhra Pradesh
Tata Power Renewable Energy Ltd (TPREL), India’s largest renewable energy company and Tata Power’s wholly-owned subsidiary, on Wednesday announced the commissioning of its 100 MW wind farm project in Nimbagallu, Andhra Pradesh. The Company had commissioned 36 MW wind capacity of the plant in December 2016, and today announced the commissioning of the balance 64 MW. With this, the operating renewable portfolio of TPREL grows to 1959 MW, comprising 907 MW wind, 932 MW solar, and 120 MW waste heat recovery capacity as of today. The Nimbagallu wind farm is built with Gamesa’s 2MW state-of-the-art Wind-Turbine Generation(WTG) platform. “The commissioning of the 100 MW wind power plant in Andhra Pradesh marks a significant milestone in our drive to grow our portfolio of clean and renewable energy generation. We are also developing another 100 MW solar plant at Anantapur Solar Park in Andhra Pradesh. With this commissioning, TPREL continues to fortify its position of being the largest renewable energy company in the country. We are extremely proud of this development and we continue to seek potential areas in India and in select International markets through organic and inorganic opportunities,” said Rahul Shah, CEO & Executive Director, Tata Power Renewable Energy Limited. TPREL completed the acquisition of Welspun Renewables Energy Pvt. Ltd. last year to become the largest Renewable Energy Company in India. In 2016, TPREL has won 320 MW of solar bids, of which 15 MW was commissioned in February 2017, and the balance 305 MW will be commissioned in 2017-18. The company has organically added 159 MW wind & solar capacity in FY17. Jarius Wright Womens Jersey
Payment delays pose risk to wind and solar projects: Mercom Capital report
Payment delays by distribution companies (discoms) to wind and solar projects in India is hurting project costs for companies and posing a challenge to the sector’s growth plans, Mercom Capital Group said in a report on Tuesday. Payment delays by discoms to these projects is hurting their liquidity and payment to lenders. Discoms in Tamil Nadu, Rajasthan and Maharashtra, Madhya Pradesh, Andhra Pradesh, Telangana and Jharkhand have so far found it difficult to pay renewable energy producers on time due to their own weak financial health, according to the report. Discoms in Maharashtra, Tamil Nadu, Madhya Pradesh and Rajasthan have delayed payments to generators of wind and solar power by as much as 8-10 months, putting their cash flows under tremendous pressure and sending negative signals for developers and investors, Mint had reported in October 2016. Tariffs, both in wind and solar, have come down significantly in the past year. Average solar tariffs in India have fallen by about 73% since 2010, almost in line with Chinese spot module prices. In February, solar tariffs fell to a record low of a levelized tariff (the value financially equivalent to different annual tariffs over the period of the power purchase agreement) of Rs3.30 per unit in a reverse auction at the Rewa solar park. Similarly, wind tariffs fell to Rs3.46 a unit in a recent auction held by the Solar Energy Corp. of India. “With these extremely low tariffs, developers are looking at best-case scenarios with margins for error nearly non-existent. Payment delays are adding to project costs as banks charge higher interest rates due to projects being built in high-risk states known for payment issues, stymying investment into the sector,” the report said. Payment issues persist in some states despite progress of the government’s Ujwal Discom Assurance Yojana (UDAY) scheme, where 25 states and one Union territory have joined the program, the report said. Of the Rs488 billion discom debt, about Rs239 billion loan amount was repaid till the third quarter of FY17 under the UDAY scheme and another Rs90 billion was repaid by Tamil Nadu recently—resulting in 65% of discom debt being repaid, Edelweiss Securities analysts Kunal Shah, Nilesh Parikh and Prakhar Agarwal wrote in a 30 March report. Steve Grogan Authentic Jersey
Power trade jumps 15% at IEX in March
With temperature rising, the spot power market at IEX saw a 15 per cent jump in electricity trade in March but average rate remained low at 2.56 a unit. As many as 3,364 million units (MU) changed hands in March compared to 2,927 MU traded in February. “On a daily average basis, over 109 MUs were traded, up from 105 MUs in the previous month,” the power trading platform said in a statement here. With rising temperature and earlier than usual arrival of summer, the market saw average daily purchase bids of 139 MU, 10 per cent increase over February, while the sell bids were 200 MU. “The market, however, continued to see low price during the month. The average Market Clearing Price (MCP) for the month was2.56 per unit, almost at par with price of 2.54 per unit in February,” it said. The average Area Clearing Price (ACP), the price at which settlement takes place, varied from 1.53 per unit to 4.47 per unit across the bid areas. Stan Musial Womens Jersey
Transformational Achievements in Power, Coal, New & Renewable Energy and Mines
Coal Coal sector is being transformed from “no coal to more coal to better coal.” Coal production growth is double of UPA production – Total coal production increased to 554 MT in 2016-17 from 462 MT in 2013-14. This increase of 92 MT was achieved by UPA in 7 years. Coal quality is the next frontier after achieving adequate coal for all power plants. Aggressive targets for coal production reduced shortage of coal due to which, CIL had to recalibrate its production and focus on quality. A sense of security was provided to the industry that coal was available sufficiently leading to better inventory management at the consumer end. Efficiency improvements are being conducted at both the coal end and power plants leading to savings for the entire sector thereby benefiting consumers. There has been a reduction in coal consumption while simultaneously matching the quality of imported coal. Coal required to generate per unit of electricity (specific coal consumption) has reduced by 8% in last 3 years. NTPC alone has reduced its specific coal consumption by 5.5% in 2016-17. This is despite reduction of Rs. 23,349 crores in imported coal which is nearly 30% higher in quality than domestic coal and thus is required in lower volumes. Some of the measures that have made this possible include Import Coal Substitution, Coal Linkage Rationalisation, Coal Swapping between less efficient and more efficient units, 3rd Party Sampling, coal washing and Correction of Grade Slippage through re-gradation of Mines. All these steps are being taken to ensure reliable and quality supply of coal to provide affordable and efficient energy to the people of India. Power India’s first power plant was setup in 1897 in Darjeeling. Since then 214 GW of capacity was added till Mar 14 and in just 3 years since then, Conventional capacity has increased by one-fourth i.e. 56 GW since March 2014. This includes Hydro, Thermal and Nuclear.. Robust power generation growth: Power generation growth for conventional is 4.7% for 2016-17 (provisional) and for renewable is 24.6% for 2016-17 (provisional). Therefore, the total power generation growth including renewables is 5.8% for 2016-17 (provisional). Power generation growth including renewables is 6.4% from 2014-2017 versus 6.15% from 2004-14. Generation growth would have increased further but for DSM (Demand Side Management – Energy Efficiency) activities. In 2014-16, growth was 6.9% & if the generation avoided due to DSM is added it was 9.5%. The transmission sector saw a massive growth leading to one nation, one price and one grid. There has been 36% (One third) increase in transmission capacity from Mar 14 to Mar 17. There has been 26% (One fourth) increase in transmission lines from Mar 14 to Mar 17. Alternate Transmission Capacity to South India has increased by 87% from Mar 14 to Mar 17. The drive to connect unelectrified villages achieved a new milestone of 13,123 villages of 18,452 electrified and by May 2018, electrification of all villages will transform lives of rural people. UDAY (Ujwal DISCOM Assurance Yojana) seeks to turn around DISCOMs, and a total of 27 States and UTs have joined. Almost 85% UDAY Bonds have already been issued (Rs. 2.32 lakh cr out of total Rs. 2.72 lakh cr). Energy efficiency movement under UJALA saw rapid growth with total 53 cr LED bulbs distributed of target 77 cr. The Government has distributed 22.6 cr and private companies have distributed 30.6 cr LED bulbs. New and Renewable Energy There has been a one third (32%) increase in grid-connected renewable capacity to 56.6 GW in Mar 17 (provisional) from 43 GW in Mar 16. There has been a 78% increase in overall renewable energy installed from 32 GW in Mar 14 to 56.6 GW in Mar 17 (provisional). There has been an almost a 1/3rd increase in Renewable Energy Generation from 2014-15 to 2016-17 (provisional). In 2016-17, the highest ever wind capacity of 5.5 GW was added. India has now over-taken Spain and reached the 4th position after China, USA and Germany. This sector has been moved from FIT regime to Competitive framework leading to record low tariffs of 3.46 per unit In 2016-17, 6.8 GW solar capacity was added. Through competitive bidding, record Solar tariff of Rs. 2.97 / kWh was achieved. About 10 lakh solar lamps for students have been distributed and this has been upscaled to cover 70 lakh more students. From about 11,000 Solar Pumps installed in Mar 2014, solar pumps have crossed 1 lakh mark. The framework agreement of International Solar Alliance was signed by 25 nations showcasing India’s leadership in the solar sector. Mines Transparent auctions of 21 mineral blocks till January will lead to total estimated revenue of Rs. 73,359 cr to State Governments over the lease periods. The District Mineral Foundations constituted under Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKY) for taking care of people and areas affected by mining activities have seen progress with 11 out of 12 mineral rich States framing rules for DMFs and setting them up in 287 districts. Exploration is being given a fillip by taking up the Aero-geophysical survey of the country in a mission mode. Mining Surveillance System by Indian Bureau of Mines will lead to greater transparency and accountability. TAMRA (Transparency, Auction Monitoring and Resource Augmentation) to provide the status of mining block auctioned will reduce opaqueness in the auction process. Star rating of major minerals has been launched to further sustainability in the mines. NALCO saw its higher ever performance showing a robust economy. In 2016-17, highest ever Bauxite production of 6.825 mt (100% capacity) – 7.6% growth over last year. Highest ever Alumina Hydrate production of 2.1 mt (100% normative capacity) since inception achieved – 7.5% growth over last year Darren Woodson Womens Jersey