Renewables purchase obligations: CERC to make it easier for discoms
The Central Electricity Regulatory Commission (CERC) has proposed to decrease the floor prices of renewable energy certificates (RECs), making it easier for the state discoms to meet their renewable energy purchase obligations (RPOs). For solar, the proposed floor price is R1,000 per REC, substantially lower than the current rate of R3,500. For non-solar RECs, the proposed floor price has been suggested to be R1,000, down from the current R1,500. The proposed reduction in REC floor prices are in line with the fall in renewable energy costs. REC mechanism is a market-based instrument to promote renewable energy and facilitate compliance of RPOs. It aims to address the mismatch between availability of renewable energy resources in the states and the requirement of the obligated entities to meet their RPOs. One REC is treated as equivalent to 1 Mwh of green electricity. RPO mandates that all electricity distribution licensees should purchase or produce a minimum specified quantity of their requirements from renewable energy sources. The state electricity regulatory commissions fix the minimum RPO for the states. The forbearance prices of RECs, or the upper price limit at which the RECs can be traded, have also been proposed to be cut. Forbearance prices for solar RECs may be slashed by more than half to R2,500 from R5,800. The same for non-solar RECs may come down to R2,900 from R3,300. Nick Cousins Jersey
Brazil to auction power transmission licenses on April 24 requiring $4.2 billion investment
Brazil’s energy regulator Aneel said on Tuesday it will auction next month new licenses to build and operate 7,400 kilometers (4,598 miles) of power transmission lines requiring up to 13.1 billion reais ($4.2 billion) in investment. In a statement, the regulator said the power lines would pass through 20 Brazilian states and should enter operation in the five years after the auction, scheduled for April 24. Power generator Engie Brasil Energia SA and distributor Energisa SA have already expressed interest in bidding. President Michel Temer launched an infrastructure concessions program on Tuesday aimed at raising 45 billion reais ($14.4 billion) in investments in roads, port terminals, railways and power transmission lines. Industry analysts expect the power transmission licenses auction to be successful, following good results for another sale in October. The companies that acquired licenses last year included Brookfield Asset Management Inc, Equatorial Energia SA , Cteep Companhia de Transmissao de Energia Eletrica Paulista and EDP Energias do Brasil SA. ($1 = 3.1194 reais) Hayes Pullard Authentic Jersey
Energy policy may bring subsidy cut, price control in power, fertilisers
The government will soon outline comprehensive energy sector reforms that could free up sectors such as coal, electricity and fertilisers of subsidies and price controls, helping produce more power and make generation projects commercially viable for private companies. The policy could also give greater emphasis towards improving the financial condition of power distribution companies (discoms), which are bogged down by debt, to make the sector profitable in the medium to long term. Key suggestions being considered include overhauling the entire structural and functional capacity of discoms so that they operate more professionally. Official sources told ET that after intense deliberations held for more than a year with stakeholders, the government’s premier think-tank Niti Aayog has firmed up the National Energy Policy and the first draft will soon be made public. According to people who spoke to ET requesting anonymity, the electricity and fertilizer sectors are heavily subsidised, which is why their input costs cannot be increased as of now. “There is a need to bring down subsides in such sectors and the energy policy is expected to lay out a clear roadmap for lowering subsidies and aligning their prices to that of the market,” one of the people said. State discoms should run on commercial lines, either be privatised or run in private-public partnership mode or as a franchise to become profitable, according to Praveer Sinha, managing director of Tata Power Delhi Distribution. “While the Central government policies related to the sector are in the right direction, state utilities have to transform in a big way. Enough manpower capacity should be created to run them professionally and there should be integration of technologies between discoms,” said Sinha, who was part of the initial deliberations on the proposed policy. Ajay Mathur, director general of research institute TERI, is of the view that electricity reforms and coal supply are important to make the power sector commercially viable as well as available to all. “India’s energy sector needs continuation of strategic procurement policy for oil and gas while harmonising the domestic market. “Besides, the policy should focus on long-term strategy in the electricity sector to move towards renewables,” said Mathur, who too took part in the initial discussions on the policy. The Central government rolled out the Ujwal DISCOM Assurance Yojana (UDAY) to help discoms become profitable while finding a permanent solution to their financial mess. The scheme aims to provide a permanent solution to their legacy debt of about Rs 4.3 lakh crore and address potential future losses. The scheme comprises four initiatives for discoms – improving operational efficiency, reducing cost of power, lowering interest costs and enforcing financial discipline through alignment with state finances. The turnaround scheme allows state governments, which own the debt-laden discoms, to take over 75% of their debt, as of September 30, 2015. Discoms are expected to issue bonds for the remaining 25% of their debt. Zack Smith Authentic Jersey
SOLAR ENERGY – now to catch the sun
The recent tenders for setting up and operating solar and wind power generation farms show that the price of renewable power is now approaching that from greenfield coal-based power plants in India. It will not take too long for solar photovoltaics to become the cheapest source of power. But solar power is generated only during the day , that too intermittently.Similarly , wind power is generated during certain months and the power output also varies. If energy storage was inexpensive, one could have dealt with this intermittency by storing excess energy generated to be used when needed. Since grid-connected energy storage continues to be very expensive, generated power needs to be consumed instantly . As the consumer demand for power also varies with time-of-day and season, there is a problem of matching demand to supply , both of which vary independently . One option would be to have excess capacity and get the non-renewable power generators, which are under our control, to back off when needed.However, this strategy has to be adopted judiciously , as it will increase the cost of non-renewable power. Demand management, where the customer is incentivised to use more power when available and consume less when there is a shortage, will help and will, indeed, become necessary . Smart buildings and factories will take us towards implementation of demand management in time. But what would really enable renew able power to become an unfettered dominant supplier is some kind of largescale storage. The electric vehicle (EV) is precisely such an application, where the cost of energy per km, including the cost of its storage, has to be only lower than the corresponding cost of a petroleum-based vehicle, to be economically viable. EVs use distributed storage. Growth of renewable energy in India, thus, has an EV compulsion, as it requires EVs to grow in the country and provide the first large-scale storage that the growth in renewables needs. In energy terms, if all vehicles in India were electric today , they would use up 15-20% of India’s electricity generated. If their batteries are charged intelligently , EVs could help overcome the intermittent nature of renewable-power generation. But are EVs in themselves economically viable in India today? The EV needs batteries to store energy needed for its operation. As battery prices fall steadily and the efficiency of motors grows to deliver higher mileage per unit of energy , there is a crossover point when EVs with sufficient range per battery charge become a more costeffective option than diesel, petrol or CNG based-vehicles. Left to itself, it may take three to five years for prices to fall enough in international markets for EVs configured for use abroad to emerge as a better alternative for consumers in India. This, however, implies that India would be importing EV subsystems from the start, and it will be difficult to establish any kind of technology leadership. We may later see local manufacturing of at least some of the subsystems. Nevertheless, there is the real possibility that the value of imports of EVs and EV subsystems will match the oil import bill today and leave us no better off than today . But there is another option towards large-scale EV adoption. The key elements of EV technology are available today at the right prices for several types of vehicles widely used in the Indian market. With an innovative, coordinated and market-oriented effort by industry and the government, certain EVs can be produced in India today .Adoption can be rolled out rapidly in a fully market-driven manner. In these specific segments, India could attain a globally competitive leadership position in three to five years. This effort will simultaneously encourage local intellectual property (IP) generation and the manufacture of most EV subsystems or substantial parts of them.India can move towards substitution of oil imports with locally produced energy and EVs including subsystems. Apart from these intrinsic benefits of early adoption of EVs, it forces the simultaneous growth of renewable energy production in India. This slew of reasons should drive us to single-mindedly pursue immediate efforts in a mission mode to enable early adoption of EVs in India. A laissez-faire attitude will negatively impact the indigenous manufacturing of India’s future automobiles and subsystems as well as India’s import bill.It will also slow down the integration of renewable energy sources into the grid at scale.Jhunjhunwala is adviser , minister of power , coal, new and renewable energy, and Ramamurthi is director , IIT-Madras Kyrie Irving Authentic Jersey
Govt says renewable energy capacity grew 26 per ccent in Apr-Jan
Generation of renewable energy grew 26 per cent in Apr-Jan 2017 as compared to that of previous corresponding period. Generation of power from renewable sources grew to 55,518.3 units in Apr-Jan as against 70,129.15 units during the same period last year. “Strong focus on renewables is driving up total electricity generation figures. In 2017 alone, for Apr-Jan 17, electricity generation growth was 5.04 per cent excluding generation from renewable sources. However, if renewable generation is included then total generation for the same period became 6.25 per cent,” the government said in a release. During the same period, generation from conventional sources grew over 5 per cent to 922,299.71 units from 968,780.44 units a year back. Conventional sources of energy account for over 70 per cent of India’s current energy mix. In February alone, generation from conventional sources of energy stood at 3.57 per cent. “February 2016 was a leap year with 29 days and February 2017 had only 28 days. The extra generation of 1 day in February 2016 affected the February 2017 figure by 3.57 per cent. Had February 2017 also had 1 extra day the increase in electricity generation from conventional sources would have been 3.52 per cent,” the release said. The government wants to take up the renewable energy capacity of the country to 175 Gigawatts by 2022 with solar alone accounting for 1 GW. Boog Powell Jersey
Haryana government proposes lower fuel surcharge on electricity bills
Haryana chief minister Manohar Lal Khattar has proposed to lower fuel surcharge allowance (FSA) on power tariff by 50-60 paise per unit. He said this at the assembly on Monday. An electricity consumer is paying Rs 1.24 to Rs 1.43 per unit as FSA levied by the electricity distribution companies (discoms) – Uttar Haryana Bijli Vitran Nigam (UHBVN) and Dakshin Haryana Bijli Vitram Nigam(DHBVN), revealed Khattar. FSA component forms one fourth of the electricity bills of the consumers, hence the announcement may bring relief to all sectors. Khattar also said the concerned officials had already taken appropriate steps to reduce the FSA. Nate Schmidt Jersey
Power Finance Corp provides Rs 2,703 crore to West Bengal’s first super critical project
State-run Power Finance Corp today said that it has sanctioned financial assistance of Rs 2,703 crore for West Bengal’s first super critical thermal power project in Murshidabad district. “PFC, a Non-Banking Financial Company (NBFC) in power sector, has sanctioned a term loan of Rs 2,703.88 crore to West Bengal Power Development Corporation Ltd (WBPDCL) for construction of Unit 5 (1 X 660 MW) under phase III of Sagardighi Thermal Power Station in Murshidabad,” the company said in statement. According to the statement, WBPDCL is a company owned by the West Bengal government for generation and supply of electric power in the state. The 660 MW Sagardighi Unit 5 is the first super critical thermal power plant being developed by WBPDCL in the state, which is expected to be commissioned by October 2020 at an estimated cost of Rs 3,862.69 crore. It will generate approximately 4,209 million units of energy to meet the future power requirement of West Bengal. The project is proposed to be funded in the debt equity ratio of 70:30 and the entire debt is proposed to be funded by PFC, it said. The loan agreement was signed between PFC and WBPDCL officials yesterday in Kolkata. State government officials and utilities and senior management of PFC were also present during the signing of the agreement, it added. PFC has a long standing relationship with WBPDCL and has sanctioned loans worth Rs 8,290 crore for various existing units of Kolaghat, Sagardighi, Santaldih and Bakreswar thermal power projects. Malcolm Mitchell Authentic Jersey
Cabinet’s nod to the MoU between India and the UAE in Energy Efficiency Services
Union Cabinet chaired by the Prime Minister Narendra Modi has given its ex-post facto approval to the Memorandum of Understanding (MoU) between the National Productivity Council, an autonomous body under the Department of Industrial Policy & Promotion, Ministry of Commerce & Industry, and Al Etihad Energy Services UAE, to provide various services in the field of energy management and conservation. Under the MoU, the NPC will provide the following services: 1. Energy Assessment Services 2. Training & Certification of Energy Auditors 3. Demand Side Management. Meanwhile, Al Etihad ES will provide the following services to all the relevant projects on a case by case basis: i) Customer Support with UAE Government and Private owned organizations in the United Arab Emirates ii) All local support for Field Auditing Professionals in the UAE iii) All local support for Training & Certification of Energy Auditors in UAE iv) All support related to Demand Side Management of industries based in UAE The MoU will enable NPC avail high value opportunities such as energy building and develop institutional mechanism in area of energy efficiency in Dubai and other Gulf Cooperation Council, (GCC) member countries. It will provide recognition and exposure to further build NPC’s capacities and competencies in rapidly changing international business scenario. MoU will be a precedent for engagements with other International collaboration partners and will enhance NPC’s visibility in arena. The MoU will help promote NPC in GCC member countries and will generate business for NPC in the area of energy. Team USA Womens Jersey
More green energy shrinks transmission projects’ timeline
In less than a year, the country’s renewable energy capacity has grown 29 per cent, to 50 gigawatt (Gw). Expansion here and the focus on developing wind and solar power is also shrinking the time frame to set up related transmission networks. At present, thermal power contributes 69 per cent to India’s total installed capacity. As the country planned capacity additions in the thermal and hydropower segment, it also allowed transmission companies a longer time frame. This is now changing. “The construction of new lines (for hydro and thermal) might take three to five years, while construction of a new solar photovoltaic (PV) power plant might only take a year or a little more,” said Vivek Sharma, director at CRISIL Infrastructure Advisory. Transmission companies are seeing this translate in the orders being placed by clients. “Almost all our clients are working towards reducing the project timelines,” said Manish Mohnot, managing director, Kalpataru Power Transmission. This has led companies to focus further on technology upgradation and personnel. “Cutting-edge technology and talent are two key elements to overcome the challenges of energy delivery. We are heavily investing in technology to plan and execute transmission projects successfully,” said Pratik Agarwal, chief executive officer, Sterlite Power. In the past one year, India’s renewable energy capacity increased to 50,018 megawatt (Mw) from 38,821.5 Mw. In February, the country doubled its solar park power capacity target to 40 Gw by 2020, from 20 Gw. The 2020 target for wind power is set at 60 Gw. “It is logical, with a centrally planned approach, to commence grid construction some time before the PV power plant. Recent initiatives have endeavoured to add to this approach with more proactive, long-term planning, such as the Green Corridors Report which has identified key renewable pockets. Accordingly, PowerGrid had started the exercise for developing associated transmission infrastructure well in advance to the actual development of solar projects,” said Sharma from CRISIL. Officials from PowerGrid are confident that transmission lines would be ready in time for evacuation of power, as the renewable energy capacity goes onstream. “This is being achieved through two ways. One is the Green Corridor programme, which has planned for transmission lines in advance. Second, by executing projects in a modular system, taking the transmission project phase by phase with the generation project,” said I S Jha, chairman of PowerGrid. However, transmission companies could face challenges beyond their control. “The total time from planning to commission of a transmission project is largely dependent on various external factors such as land acquisition, access to infrastructure needs, financing availability etc. Unless these external challenges are mitigated, the time available to set up transmission lines is unlikely to shrink,” said Sharma. Mukund Sapre, managing director, IL&FS Engineering and Construction, added: “Towards the end of 2015, the ministry of power issued guidelines for uniform compensation (for land acquired). This is still to be adopted at all projects.” Lost in Transmission: * At present, thermal power contributes 69 per cent to India’s total installed capacity * In the past one year, India’s renewable energy capacity increased to 50,018 Mw from 38,821.5 Mw * In February, the country doubled its solar park power capacity target to 40 Gw by 2020, from 20 Gw. The 2020 target for wind power is set at 60 Gw Alex Tuch Jersey
Solar energy helps boost power generation to 10GW
Green power is driving the growth in India’s electricity generation as total installed solar capacity , including rooftop and off-grid projects, has crossed 10 gigawatts (gW), latest government and market data show. Generation from conventional sources showed an annual growth rate of over 5 per cent in the 11-month period of 2016-2017 financial year, while output from renewable power projects rose more than 26 per cent during this period. Together, the total growth in generation is in excess of 6 per cent from a year-ago period, government data show. Power ministry officials say the net growth figure will be higher as generation data from renewable power projects come with a time lag, and therefore, does not reflect in the Central Electricity Authority’s latest report The officials said the total generation this February showed marginal decline than the year-ago period due to the effect of 2016 being a leap year. A day’s extra generation in February 2016 affected the February 2017 figure by 3.57 per cent. Had February 2017 also had one extra day, the increase in electricity generation from conventional sources would have been 3.52 per cent, the officials said. Market watchers see renewables continuing to carve a bigger space in the country’s generation sphere on the back of the Narendra Modi government’s funding push. After coming to power in 2014, the government revised the target for renewables from 20 gW to 175 gW, including 100 gW of grid-connected solar projects, by 2022. Last month, the government announced an ambitious scheme to double solar power generation capacity under the solar parks scheme to 40,000 mega watts (mW) by 2020, with Rs 8,100 crore assistance to fund 30 per cent of the initial project cost of developers. India is expected to add new solar capacity of 5.1 gW this year, which is a growth of 137 per cent over last year, a recent report by Bridge To India, a green energy-focused consultant, said. It expected an annual capacity addition of about 8-10 gW in 2017. “India is expected to become the world’s third biggest solar market from next year onwards after China and the US,” it said. Tamil Nadu has the highest installed solar energy capacity , followed by Rajasthan, Andhra Pradesh, Guj arat, Telangana, Madhya Pradesh and Punjab. These seven states collectively accounted for more than 80 per cent of total installed capacity as of mid-November. Marko Dano Authentic Jersey