Solar power rate touches record low
Solar power rate touched a record low in Madhya Pradesh with per unit tariff coming down to as low as Rs 3 per unit. Auction for world’s biggest solar power park in Rewa district of the state, which began at 10 am on Thursday, was going on till the time of writing this story. The lowest bids received for all three units till 11.30 pm was Rs 3.13 per unit. Eighteen bidders, including 5 foreign firms, are participating in auction. The project will be given to developer that offers lowest bids. The unit-wise base prices at which the auction started are Rs 3.59 for first unit, Rs 3.61 per unit for second unit and Rs 3.62 per unit for the third unit. Within hours, the rates became lower than Rs 3.23 per unit. The entire team of officials of Madhya Pradesh Urja Vikas Nigam was present at meeting hall of Nigam since 10 am, keeping a close eye on auction on a big screen. Sources said as the auction did not stop and bidders continued to bid. The auction is expected to continue till late in night. Arrangements for taking rest were also made . Earlier 20 bidders, both national and international, submitted proposals for developing the park. The bids closed on January 23 and the proposals were evaluated and two of the bidders were dropped. The park is being developed by Rewa Ultra Mega Solar Limited, a joint venture of Solar Energy Corporation of India and Madhya Pradesh Urja Vikas Nigam (MPUVN). The 750-MW park being developed in three segments of 250 MW each is spread over 1,500 hectares of land in Gurh tehsil of Rewa and is to cover five villages of Barseta. Once completed, it will generate clean energy, overtaking 648 MW solar power plant at Kamathi in Tamil Nadu, the largest plant in the country so far. Joel Eriksson Ek Jersey
Rewa Ultra Mega Solar Power Project receives sub Rs 4 per unit bids
Madhya Pradesh government’s Rewa ultra mega solar park has received the lowest bid of Rs 3.59 per unit. The tariffs are set to reduce further as the reverse e-auction for the 750-mw solar project are set to start on Thursday. Manu Srivastava, principal secretary, new and renewable energy, Madhya Pradesh government told ET that Rs 4 per unit barrier has been breached by Rewa project even before auction. According to the bidding rules, the lowest initial tariff would be the base price for the reverse auction. Rewa ulta mega solar, a 50:50 joint venture of Madhya Pradesh Urja Vikas Ltd and Solar Energy Corp of India will sell the electricity produced to Madhya Pradesh utilities and Delhi Metro Rail on an open access basis. Mark Gastineau Jersey
Renewable energy companies’ viability under threat as Maharashtra discoms fail to pay Rs 2300 cr dues
Maharashtra State Electricity Distribution Company (MSEDC) has failed to pay dues worth R2,300 crore to renewable energy companies hitting their viability, people familiar with the development told FE. A spokesperson for MSEDC said some payments had been made in April. “However, we have R2,300 crore worth of payments pending as the financial health of the discom has deteriorated in the last one year on account of non payment of dues by customers,” the spokesperson told FE. Continuum Wind Energy, which has not received its dues since November 2015 was on the verge of default, Arvind Bansal, CEO and founder told FE. “The non- payment of dues by discoms created a near-default situation for us. But we were saved by our shareholders,” Bansal said. Renewable power producers such as Renew Power, ACME Solar, Hindustan Cleanenergy, Indo Rama and Panama Wind Energy, among many others, were not paid since April, the Maharashtra state discom spokesperson confirmed. The Power Finance Corporation’s report on the performance of state utilities noted that MSEDCL had accumulated losses worth R7,087 crore as of March 31, 2015. Wind energy projects have been the worst affected among the lot of power producers where the payments have been delayed by over one year, said Parag Sharma, COO at Renew Power, which has around R400 crore worth of dues pending with MSEDC. “We have a presence in eight states and have hedged our revenues in such a way that not more than 20% comes from any one state. This helps us to meet our debt obligations on time,” Sharma added. Marcus Allen Jersey
Grid integration impeding solar power segment
Solar power producers in Telangana urged the government to resolve the issues such as grid integration and inter-state transmission system. Such measures will enable the state to achieve solar photovoltaic power generation capacity of 5,000 MW by 2018-19. Telangana energy department has assured the solar power segment that all the possible help from the government. Several representatives from the solar power industry and government departments participated in a seminar on ‘solar power’ organized by Federation of Telangana and Andhra Pradesh Chambers of Commers and Industry (FTAPCCI) here on Wednesday. In this context, Kishor Nair, COO, Avaada requested Telangana government to invest more into transmission system and also build inter -state transmission system/green corridor to generate solar power in Telangana and export to other states. “Improving grid stability to evacuate solar power would need large investment in utility infrastructure,” said Nair. Matt Bryant Womens Jersey
Power companies tap smart meters to change consumer behaviour pattern
Consumers will soon start getting messages from local power utility companies to switch off an air-conditioner or any other high power consuming appliance to avert a power cut during peak hour. For instance, Tata Power Delhi Distribution Ltd (TPDDL), which supplies power in the north and north-western parts of the national capital region, is set to install smart meters for 20 lakh customers that will detect their usage pattern and help in managing the load. TPDDL has selected Landis + Gyr Ltd., a unit of Toshiba Corp. for building the communication network and to install smart meters on the premises of customers, said TPDDL chief executive officer and managing director Praveer Sinha. The investment in smart metering will help the company save 25 mega watt (MW) peak power requirement, said Sinha. To meet the peak demand in mornings and early evenings, distribution firms have to get into ‘take or pay’ deals with power generation companies and have to pay a part of the power tariff even if the agreed power is not lifted. With data on usage pattern of consumers, distribution firms will be able to modulate the load and flatten the peak power demand by requesting consumers to use some of their appliance at non-peak hours. A mall, for example, could be requested to switch off some of its escalators for some time, explained Sinha. “Smart metering will facilitate two-way communication between the consumer and the utility, reduce losses and help in delivering better service,” Sinha said. It will also help in detecting attempts at tampering with the meter and address the issue of power pilferage. TPDDL will make an initial investment of Rs200 crore, which will cover roughly 2 lakh smart meters. The cost will get built into the power tariff to the consumer. For consumers, shifting some of the power consumption to non-peak hours will bring savings as utilities will charge a lower tariff in those hours. At present, this facility is available to large consumers who use 10 kilowatt per hour (kwh) is expected to be extended to those using 5kwh or more, said Sinha. Sandip Mukherjee, chief executive officer of Landis + Gyr Ltd. India, said the company is in discussions with other utilities too to install smart meters and to build the wireless communication network required to operate it. That include Reliance Power Ltd-owned BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd, which supply electricity to about 3.5 million residential, institutional and business consumers in Delhi and some of the state-owned utilities which are able to invest in smart metering, he said. The BSES companies are in the process of covering consumers who use more than 500 units a month by the end of this year in the first phase installing smart metering. The government’s revised power tariff policy announced in January 2016 recommends use of smart meters. Jim McMahon Womens Jersey
UDAY discom revival plan: States not able to meet targets
Though Tamil Nadu, the latest state to sign on to the UDAY discom revival package, is confident of being able to break even in FY18 without increasing tariffs, the performance of most signatory states is disappointing. According to an analysis by Motilal Oswal, based on data for 12 states in H1FY17 on the power ministry’s UDAY website, ATC losses have widened for 10 of the 12 states—ATC losses, by and large, are the fulcrum of the UDAY package since, if these fall fast enough, even without a significant hike in electricity tariffs, state electricity boards (SEBs) can start breaking even; at an aggregate level, ATC losses were projected to fall over 3 percentage point every year to reach 15% by FY19 from the current level of 22% . While it is early days yet, as Motilal points out, the gap between the cost of supply and the revenues earned has increased in seven states and could go up even more with the increase in cess and Railway freight on coal (the two would add 15-20 paise per unit of power). In the case of Gujarat, from an already low 14.9%, ATC losses fell further to 13.7% (the target was 14%) and, as a result, the SEB generated a profit of 94 paise per unit of power as compared to the baseline of 3 paise and the target of 2 paise. Things were hardly as rosy in other states—for Uttar Pradesh, one of the biggest loss-making states, the data is not even available on the UDAY website, presumably due to the poor progress in achieving targets. In the case of Rajasthan, the state has more or less achieved its ATC target of 28.26%—it achieved 28.79%—but the gap between costs and revenues was as high as 83 paise as compared to the target of 35 paise. Punjab’s gap rose from the baseline of 60 paise to R1.05 per unit while the target was 37 paise. All of which means the states will need to do a lot more to achieve their goal of financial stability. In the case of Rajasthan, for instance, to use Motilal’s term, Uday’ing the gencos will be important—once NTPC acquires the state’s Chhabra power plant, financing costs will reduce considerably and this will reduce fixed costs from R1.64 per unit to R1.39. A larger challenge for all states is that, with demand slowing down in most states and new capacity coming up, the gap between costs and revenues will only increase. While renewable energy obligations are important from the point of view of the environment, they represent a higher cost for SEBs, a cost that can be prohibitive when, in any case, the utilities have a lot of catching up to do in terms of tariff. While the onus of this lies on the states since, over a period of time, SEB losses will have to be taken onto their books, PSU banks—and RBI—need to be careful to ensure that they don’t end up financing bankrupt SEBs all over again; had banks not been so willing to lend in the past (possibly due to political pressure as well), SEBs would never been able to build up the kind of debt they have. Ben Bishop USA Authentic Jersey
Government unable to recover cost of electricity from Baglihar II
The Jammu and Kashmir State Power Development Corporation (JKSPDC), a fully-owned government company, is facing a tough time in getting buyers for electricity produced in its 450-MW Baglihar II power project. The rate of its power unit is much higher than the available market rate in India, Kashmir Reader has learnt. One of the top officials of JKSPDC, wishing anonymity, told Reader that the power project has been getting rates not more than Rs 3.5 from buyers while its production cost, which includes taxes and water charges, is more than Rs 4 per unit. The official said that amid the ongoing slump in markets, the company is selling the project’s entire power to the Power Development Department (PDD) since September 2015 at Rs 3.6 per unit. He said that although the power plant is set to sell electricity in the open market from March this year as per the agreement, the company has failed to lure any buyer. “As of now, we sell the entire power to PDD, but the company cannot afford to continue it. As per the agreement, we are ready to give 40 percent of the generation to PDD, but for the 60 percent we have to find buyers in the open market,” he said. “Although selling the entire power to PDD seems good, but there are issues involved. PDD cannot pay us at a time because it does not generate revenue in one go. In such circumstances, it suits us to sell electricity to another buyer. But if we cannot get the rate as per our requirement, we have to sell it anyway and bear the losses. There is no alternative,” the top official said. The 450-MW Baglihar II is one of the main assets of the company that is the second largest producer of energy in the Valley after National Hydroelectric Power Corporation (NHPC). The state-run company that is set to become the second listed company from the state also produces revenue from other small projects and the 450-MW Baglihar I. Director of JKPDC Shah Faesal told Kashmir Reader that the company is handling the issue with dexterity. “It is not a very serious issue because there is a slump in the market right now. I am aware that rates are going down but hydropower has one advantage over other sources of energy, which is that it gives quality power during peak demand,” Faesal said. Asked how the company will tackle the slump if it continues, Faesal said that the company will be exempted from many taxes and water charges. “If this is done, I am sure the cost of power will come down and we will have effective buyers,” he said. Johnny Unitas Womens Jersey
Adani group appoints Jennifer Purdie as CEO for renewable energy unit in Australia
Indian energy giant Adani Group has appointed Jennifer Purdie as the Chief Executive Officer (CEO) for its renewable energy business unit in Australia in a bid to drive its plans to become the largest renewable energy player in the country. Adani Australia country-head and CEO, Jeyakumar Janakaraj, said the appointment of Purdie is a significant step for the company in Australia. “Adani’s aim is to become the largest renewable energy industry participant in Australia with a total capacity of 1,500MW in the near term,” Janakaraj said. “To help us realise this ambition, Adani has established the Adani Australia Renewable business unit, and appointed Purdie as its CEO, he said. “Adani is the largest solar power generator in India with plans for 10,000MW by 2022. Adani already has commissioned the world’s largest solar plant on one site, Kamuthi Solar Plant in Tamil Nadu, with a 648MW capacity. Indeed, Adani will commission an additional 2,000MW in solar generation in India by the end of this calendar year,” Janakaraj said. Purdie, who will report directly to Janakaraj, has extensive global experience in the resources and engineering sector, and is recognised as one of Australia’s leading engineers. Purdie has worked for rail freight group Aurizon (Executive Vice President, Enterprise Services), Rio Tinto (Chief Advisor Projects; Global Practice Leader, Technology Delivery, Innovation; Diamonds and Minerals Executive), and has Board experience with a number of companies and institutions including the Solar Flagships Panel which advised the Commonwealth Government on solar generation. Her most recent position was Executive Director of Nexion, a technology solutions provider for the mining industry. Stating her new role presented an exciting challenge, Purdie said, “Renewable enery presents great opportunities for Australia, particularly for remote communities but also as a key component of balanced energy supply solutions across the nation.” Adani has announced two solar generation plants will be built this year in Australia – one at Rugby Run, near Moranbah in Central Queensland, and the other on the northern outskirts of Whyalla in South Australia. The projects will generate 150MW each and other similar sized projects are being planned for Queensland and South Australia. The solar projects are in addition to its USD 21-billion investment in the planned Carmichael coal mine in Queensland’s Galilee Basin a well as rail and port facilities. Justin Houston Jersey
Solar power to ease cash woes
Solar power expert and scientist S P Gon Chaudhuri is developing a prototype of a biometric solar-powered ATM, which would enable users to withdraw cash just by getting their fingerprints scanned. The ATM, if successfully designed and implemented, would be of great help to unlettered users, as it would do away with the practice of having to provide a PIN, which is challenging for many, especially in rural areas. The model would just require the linking of Aadhar numbers with a user’s bank account, said Gon Chaudhuri, adding he especially had the rural populace in mind. “This is the major part of the country’s population, of which many are unlettered and have to withdraw money from banks and post offices using thumb prints. They are unable to use ATMs, which work by using a card and inputting a four-digit PIN, and are in desperate need of an ATM that would be compatible with their level of understanding,“ said the scientist who has come up with several innovations that have been recognized by the ministry of new and renewable energy . He felt the device would be equally effective in urban areas. “The biometric touch interface-based ATM that I am developing will also be user-friendly and, at the same time, avoid the use of cards, PIN and paper. The ATM will also be energy-efficient and environment-friendly , as it requires only solar energy to operate. Various security measures are being implemented. This ATM could be used by anyone having an Aadhar-linked bank account,“ Gon Chaudhuri said. The procedure to withdraw money using this device would be very simple, the scientist said. “One would only have to press his or her finger on the scanner installed in the machine, following which the person’s bank account would automatically be linked through Aadhar linking. Pictures of various currency notes would then come up on screen, and the user would have to touch the onscreen picture one or multiple times, depending on how much heshe wants to withdraw. After the notes come out, the balance would be read out,“ Gon Chaudhuri said. The device will have a solar panel on the top. Gon Chaudhuri plans to complete setting up the first prototype by March, following which he plans to show the device to the Government of India. “ As of now, each unit costs Rs 4 lakh. But the price will come down once mass-production starts,“ he said. Mark Bavaro Jersey
India’s solar power capacity crosses 9,000 Megawatt with TN leading the pack
Country’s solar power generation capacity stood at over 9 GW as on December 31, 2016 with Tamil Nadu having the largest output capability followed by Rajasthan and Gujarat, Parliament was informed today. Total power generation capacity was 9,012 MW as on December 31, 2016. Tamil Nadu led the chart followed by Rajasthan and Gujarat, Power Minister Piyush Goyal informed the Rajya Sabha. “As on December 31, 2016, Gujarat (1.16 GW), Rajasthan (1.32 GW), and Tamil Nadu (1.6 GW) have crossed 1 GW solar installations…, while Andhra Pradesh (0.98 GW), Telangana (0.97 GW) and Madhya Pradesh (0.84 GW) are close to these states,” he said in written statement. The minister said solar power development varies from state to state depending on solar irradiance, availability of conducive state policy for the sector, availability of land, cost of financing and business environment such as willingness of DISCOMS to purchase the solar power, power evacuation infrastructure, etc. On falling solar tariff, the minster stated in another statement to the Rajya Sabha that the tariff determined by the Central Electricity Regulatory Commission (CERC) in case of solar photovoltaic projects is Rs 5.68 per kWh and Rs 5.09 per kWh without and with accelerated depreciation benefit, respectively. He further said that in Rajasthan, the tariff after bidding came to Rs 4.34 per kWh. The government is promoting solar energy through fiscal and promotional incentives such as capital and/or interest subsidy, tax holiday on the earnings for 10 years, generation- based incentive, accelerated depreciation, viability gap funding (VGF), financing solar rooftop systems as part of home loan, concessional excise and custom duties, preferential tariff for power generation from renewables, and foreign investment up to 100 per cent under the automatic route, etc. This apart, the government has been supporting solar manufacturing by way of various mechanisms such as Modified Special Incentive Package Scheme (M-SIPS) of the Ministry of Electronics & Information Technology (MeitY), the minister said. Andre Johnson Authentic Jersey