Discom engineer death: Why power thieves fear no one
Monday’s incident in which a discom engineer lost his life and four others were seriously injured while fleeing a mob in west Delhi’s Jaffarpur is not a one-off case. A few weeks ago, a 15-member power theft detection team was roughed up in Mundka as well. Such attacks are on the rise and they are getting more brazen and organised, of late. Power pilferage is a common offence in India, which still loses over 14-15% of electricity to thefts. Jaffarpur alone has seen losses of around 60%. In the past five years, nearly 14,000 cases (33,000KW) have been detected in the area. “Since privatisation in 2002, the overall loss figures have reduced by 43%. However, many areas continue to witness 25-50% of the power supply being lost to such thefts,” said a BSES spokesperson. BSES Yamuna manages power supply in east and central Delhi areas while BSES Rajdhani caters to south and west Delhi. The notorious localities include Najafgargh, Jaffarpur, Mundka, Nand Nagari, Turkman Gate, Yamuna Vihar,Wazirabad and Shaheen Bagh. However, discoms officials clarify that the malpractice is not restricted to any particular consumer profile, but all types of people are equally involved in the theft of electricity. For Tata Power, which manages north and northwest Delhi, supply thefts are decreasing by 10-12 % every year, but it continues to face resistance in areas like Bawana, Narela, Kirari and Bhakhtawarpur besides JJ clusters of Jahangirpuri, Sultanpuri and Mangolpuri. “These pockets not only cause revenue loss but also overload the distribution network, thus impacting the reliability of power supply,” said a discom official. According to power companies, whenever enforcement teams reach these places, the unscrupulous elements “gherao” them and prevent them from checking their premises. Officials are threatened and attacked if they insist on inspecting their houses. Till 2009, power theft detection teams were accompanied by CISF personnel. The security arrangement was withdrawn in 2009 due to elections and hasn’t been resumed since. Power experts are of the view that a similar arrangement will help curbing attacks on its staff. Despite the use of tamper-proof meters and smart meter reading devices, the cat and mouse game between the power thieves and suppliers continues. Jason Witten Authentic Jersey
Government fears solar developers may delay projects to ‘gain’ from fall in tariffs
With the steep fall in solar tariffs in the last two years, the ministry of new and renewable energy (MNRE) has written to all states to ensure that solar developers do not get “undue benefits” from the development by insisting that solar projects meet the deadlines initially set for them without any extensions. Tariffs have fallen from Rs 7-8 per unit in mid 2015 to Rs 2.50-3.50 per unit at present. The lowest tariff was Rs 2.44 per unit at a solar auction conducted for projects at the Bhadla Solar Park, Rajasthan. The fall is largely due to the lowering of prices of solar cells and modules in the global market, especially in China, which has seen considerable overproduction. The MNRE is concerned that developers who signed power purchase agreements (PPAs) at fairly high tariffs while solar equipment prices were also high, could earn a windfall over the next 25 years – most solar PPAs are for 25 years – if they delayed buying their requirements and did so after prices had dropped. “One of the reasons of falling tariff is lowering of prices of solar cells/modules internationally,” said a letter from Dilip Nigam, adviser, National Solar Mission in the MNRE, to principal secretaries (energy) of all states. “Falling prices may give undue benefits to developers at the cost of the government if project duration is extended.” Developers take a completely different view. “When a developer is putting in a bid, certain assumptions about panel prices are made months in advance,” said one of them, not wanting to be named. “If that’s the way the MNRE wants it, it should allow developers to bid without considering panel cost and then add it later. You can’t have the cake and eat it too. If panel costs fall, developers will obviously want to take advantage of it.” Others feared the letter could be used by state distribution companies as a pretext to renegotiate earlier contracts at tariffs lower than already signed for. Recently, Uttar Pradesh reworked contracts it had signed with developers following an auction in September 2015 at prices between Rs 7.02 and Rs 8.60 per unit. It insisted that, since solar tariffs had fallen, all of them should sign fresh contracts at the lowest tariff reached during that auction ie. Rs 7.02 per unit. “The letter doesn’t say so, but states might take a cue from it and start renegotiating the way UP has,” said another developer. The construction period usually allowed for a solar plant can vary between 13 and 18 months, with stiff penalties for delays. But given the difficulties of locating suitable land, and other impediments, projects are often delayed and extensions usually allowed. “It is important that already awarded projects are commissioned on time,” the July 3 letter added. Alexandre Burrows Authentic Jersey
Mizoram to set up 20 Megawatt solar park
Mizoram’s Solar Power Project Approval Committee (SPPAC) has approved the proposal for setting up of a 20 MW solar park today. The project will be implemented by the state power and electricity department and Zoram Energy Development Agency (ZEDA), an official statement said. A meeting chaired by Secretary for Power and Electricity H Lalengmawia discussed wide ranging issues concerning generation of power through solar energy, it said. The Solar Power Policy of Mizoram, 2017 envisaged all government office buildings should harness solar energy in their building premises, the statement said adding, the committee decided to convene a meeting of all heads of departments to ensure implementation of the policy. Mark Barron Womens Jersey
Wind, solar do not harm power grid reliability-draft U.S. study
The growth of renewable power, including wind and solar, has not harmed the reliability of the U.S. electricity grid, according to a draft U.S. Department of Energy study, echoing the findings of grid operators across the country. The conclusion of the draft, dated July and viewed by Reuters, could ease fears in the renewable energy industry that the widely anticipated study would be used by President Donald Trump’s administration to form policies supporting coal plants at the expense of wind and solar. “Numerous technical studies for most regions of the nation indicate that significantly higher levels of renewable energy can be integrated without any compromise of system reliability,” the draft says. It added that growth of renewables could require the building of more transmission lines, advanced planning, and more flexibility to balance generation and meet demand. But it said that baseload power – coal and nuclear power – “is not as necessary as it used to be” given advances in grid technology. Shaylyn Hynes, an Energy Department spokeswoman, said the draft was “outdated” and had not gone through “any adjudication” from career or political staff. The final report had been slated for release in early July, but is now expected within a couple of weeks, she said. The draft can be seen at http://tmsnrt.rs/2v9PJ9l. Bloomberg first reported on it on Friday. Energy Secretary Rick Perry had called in April for his department to examine whether regulations backing renewable energy use imposed by former president Barack Obama and other administrations “threaten to undercut the performance of the grid well into the future.” Critics of wind and solar energy have argued that those technologies leave the U.S. power system vulnerable to shortages when the sun is blocked or the wind does not blow – meaning that coal, nuclear, and natural gas plants that do not depend on weather should remain the bulk producers. Renewable energy is seen by many state and local government as a cost-effective way to reduce emissions linked to climate change. Nuclear energy is virtually emissions-free but poses potential safety risks and the thorny issue of disposing radioactive plant waste. Renewables and natural gas have displaced a slew of coal and nuclear plants in recent years, due to lower prices, environmental regulations and government subsidies. The draft said this is “not yet a problem for grid reliability and resilience – but further study is needed,” to determine how much of this “baseload” power can be lost while still ensuring reliability. GRID OPERATORS SEE NO THREAT Officials at four grid operators, serving about 133 million customers, agreed renewables do not harm energy security or reliability. “I don’t see them as threatening, no,” said Woody Rickerson, vice president of the Electric Reliability Council of Texas. “We can perform reliably with renewable generation; there are just things you have to do with renewables that you don’t have to do with (conventional) power generation.” ERCOT, which serves Texas and a small part of Nevada, said the region got about 15 percent of its power from wind generation in 2016, and the region’s solar power will grow quickly. Grid operators said that as renewables become more common they depend more on weather forecasting. Storm fronts and cloud covers sometimes require grid operators to ensure that conventional power is readily available as solar and wind power generation waxes and wanes. Stu Bresler, senior vice president for operations at PJM Interconnection, which coordinates the movement of power in all or parts of 13 states from New Jersey to Tennessee, said renewables have not harmed reliability in his region. Steven Greenlee, senior spokesman at the California Independent System Operator, said on one day in May wind and solar served 67 percent of CALISO’s demand. “We don’t see the security at risk,” he said. Omar Infante Jersey
Low solar tariffs raise questions on viability of projects: Sajjan Jindal
Low solar power tariffs discovered in recent rounds of bidding for solar power projects has raised questions on the viability of projects, Sajjan Jindal, Chairman and Managing Director of private power producer JSW Energy, has said. “We are now seeing a lot of focus on solar power, with auction-based tariffs reaching all-time lows. Although a part of the reduction can be attributed to decline in equipment costs, it also raises questions on the long-term viability of projects at such low tariffs,” Jindal said in his speech at the company’s 23rd Annual General Meeting in Mumbai. He added the government has set ambitious targets for setting up renewable capacities and hence the viability of projects will be a crucial factor to achieve the long-term goal of energy security. “In this context, the recent draft proposal of the government to include hydropower as renewable energy and to stipulate a mandatory hydropower obligation is a welcome step,” he said. JSW Energy, part of the $11 billion JSW Group, is evaluating various opportunities involving next-generation technologies which are going to be disruptive in nature in the energy space, Jindal said. The current stress in the power sector could lead to consolidation which will offer good prospects for future investments, he added. Talking about the future of the energy sector, Jindal said India’s long-term energy appetite is enormous but a large proportion of the demand is latent. “The GST rollout is also likely to boost economic growth over the medium term as it improves efficiency of goods movement between states, avoids tax cascading as well as strengthens tax compliance and governance. This is likely to boost GDP growth rate to 8 per cent or above, consequently driving power demand,” he said. According to Jindal, the power sector is currently struggling with multiple issues including sluggish industrial demand, lack of long-term Power Purchase Agreements (PPAs) and ill financial health of distribution utilities. He, however, also noted the government has taken multiple policy initiatives and path-breaking measures to provide electricity for all at a fair and just price. Brad Richards Authentic Jersey
Hungarian renewable energy scheme wins European Union approval
EU competition enforcers approved on Tuesday a Hungarian support scheme for renewable electricity worth up to 45 billion forints ($166.3 million) yearly, saying it complies with the bloc’s state aid and energy goals. The state aid consists of a feed-in tariff limited to installations below 500 kilowatt or a price premium for those above that level. Hungary also pledged to partially open up the scheme to foreign producers as of this year. “The Hungarian support scheme will increase the share of green energy in Hungary’s energy mix, whilst preserving competition in the electricity market,” European Competition Commissioner Margrethe Vestager said in a statement. Andre Smith Jersey
Electricity investment overtakes oil and gas for the first time ever, IEA says
Fossils fuels are no longer the largest recipient of investment in the energy sector, the latest report from the International Energy Agency said Tuesday. Investment in the electricity sector received the largest level of investment for the first time ever, growing its share by 12 percentage points to 43 percent between 2014 and 2016. In comparison, over the same period, investments in upstream (exploration and production) oil and gas fell 44 percent. “The key finding is that (the) global energy industry spent last year 12 percent less than the previous year,” Fatih Birol, executive director of the IEA, told CNBC on Tuesday. “A big decline,” he described. According to the IEA, the global drop in energy investment was mainly caused by falling unit capital costs in upstream oil and gas but also due to reduced drilling and less fossil fuel-based power capacity. Geographically, China continued to be the largest recipient of energy investment, representing 21 percent of the global share. However, according to Birol from the IEA, the surprising story was India, jumping 7 percent from 2015 to 2016 in terms of energy investment. “India is moving to the center stage of global energy affairs,” he said. Despite the current drags on investment, the IEA is confident that global oil and gas upstream investment will come back to growth this year, by about 6 percent. This is due to the current OPEC-led deal to freeze production until March 2018, which should revamp prices and boost investment, as well as a 53 percent upswing in U.S. shale investment. However, the IEA warned that many of the largest oil and gas companies are still implementing a “cautious approach” and as a result have indicated their intentions to revise down their anticipated investment plans in case oil prices do not remain above $50 a barrel. “What we see is no major rebound,” Birol said about market prices in the aftermath of the OPEC deal. “Therefore what worries me a lot is, around 2020s, a major demand-supply gap with serious implications for the markets,” he said. Oil prices fell once again on Tuesday on the back of the IEA’s report and an ongoing fuel supply overhang, which has led several banks to cut their price forecasts. “I cannot talk about prices, but what I can tell you is that when I look at the investments, which are becoming more and more short-term focused, when I look at growing demand and (the decline) of existing oil fields to avoid major supply disruption problems 2020s, we need a miracle,” he said. Adrian Clayborn Jersey
BoA defers decision on Adani’s Mundra power transfer
The commerce ministry has deferred a decision on allowing Adani Power to transfer its Mundra power plant to a subsidiary. The board of approval (BoA) on special economic zones decided to defer the transfer proposal to ascertain whether the company has taken the approval of its lenders. The BoA approval is required as the thermal power plant falls in the Adani Ports SEZ, government sources said. “The Board of Approval, after discussions, decided to defer the proposal and directed the development commissioner to ascertain whether NoC of lenders had been taken as it was noted that the proposed transfer of the thermal power plant in Adani Ports SEZ, Mundra with Adani Power Ltd to its subsidiary was being done without transfer of liability of debt”,” a commerce ministry official said. Adani Power had on June 7 said that its board of directors approved transfer of the 4,620-mw imported coal based plant in Mundra to a separate subsidiary, Adani Power (Mundra) Ltd, through a slump sale. The company has offered a 51% stake in the project to Gujarat electricity generation company for Re 1. Jerry Hughes Womens Jersey
Piyush Goyal urges states to clear arrears of renewable energy companies
The central government is persuading states to clear their arrears to renewable energy companies, which are faced with the challenge of repaying debt amid muted cash flows, power minister Piyush Goyal said The government’s thrust on clean energy enthused private players and lured big corporate houses like the Tata and Mahindra and several independent power producers into the sector. But state-run power distribution companies have been delaying payments, sometimes due to their own financial constraints but in some cases also because of their unwillingness to pay for renewable energy which is not as stable in supply as that from conventional sources, power producers told ET. “One or two discoms have been delaying. We are working with them to resolve the issue. It is a state issue and we can only persuade them,” Goyal told ET. ET spoke to green energy companies which said while the delays by state discoms have reduced, that continues to be high, making cash management difficult. Sector players list Tamil Nadu, Maharashtra, Madhya Pradesh, Andhra Pradesh and Rajasthan among the ones delaying payments. “States like Rajasthan and Tamil Nadu are delaying payments due to their inherent financial stress. Counterparty credit risk is anyway high for renewable energy companies and cash flow problems make it worse,” said Sabyasachi Majumdar, group head for corporate sector ratings at ICRA. In a recent interview to ET, Tata Power Renewable Energy’s chief executive, Rahul Shah, said while the government was pushing for more renewable energy, there were “subtle pulls” from state discoms discouraging these generators. He had said given the financial constraints these discoms operate with, they were “prioritising” payments to generators who offered firm supply of electricity, which meant the thermal power generators, over the renewable energy. Two other industry executives agreed with him, adding that wind energy makers were worst hit as some discoms contracted power at higher tariff and as electricity prices fall, they were not keen to buy power. “Maharashtra was an outlier last year with delays of 12 months but it has improved somewhat now. In general, payments from discoms have improved since March with average overdue being around two to three months. “Only in worst case the delays are around six months. This too may not be to discriminate against a particular class, for instance wind power, but more due to their own financial constraints,” said Sumant Sinha, chairman of ReNew Power, a solar and wind energy company. Johnny Bucyk Jersey
No nuclear power for states that oppose it: Power minister
States where governments or people oppose nuclear power projects are unlikely to get it, said Union power minister Piyush Goyal, toughening the Union government’s stand against opposition to nuclear power reactors. Tamil Nadu will get more power from the upcoming units 3 and 4 of the nuclear power reactor in Kudankulam in Tirunelveli district of Tamil Nadu, the minister told reporters on Monday after meeting chief minister K Palaniswami at the secretariat. “We are working on a new power allotment formula for states. When the Kudankulam units 3 and 4 are ready, Tamil Nadu will get more power. This was discussed during the meeting with the chief minister,” said Goyal. The minister assured the chief minister of allotting a separate coal block for Cheyyur thermal project. A special purpose vehicle will be floated for setting up an ultra mega thermal power project in Cheyyur with a total capacity of 4,000MW. There will be four units of 800MW each. The total cost of this project is Rs 18,000 crore and Tangedco will get 1,600MW once all four units are up and running. The other issues which were discussed between Goyal and Palaniswami include a separate corridor for green power. “The green corridor was discussed and I can assure you Centre will do everything to extend cooperation for setting up a separate corridor for green power. I am happy to know that Tamil Nadu has surplus green power,” said the minister. In the last three years, a transmission capacity of 3,450MW has been added and in 2020, the total transmission capacity for south India will be 18,000MW so that states can either evacuate power to other states or get power from other states. “Due to goods and service tax (GST), the coal tax rate has come down to 5% and because of this NLC will save Rs 508 crore each year. Similarly, Tangedco must also save money on purchase of coal. NLC will be allowed to use its old thermal unit till 2018,” said Goyal. On solar pumps for farmers, the minister said discussions were on with various people to provide solar pumps for farmers. The minister said the meeting with the chief minister was fruitful and recalled that he sat on the “same chair in the same room” when he met former chief minister J Jayalalithaa last year. “It is only after my meeting with her, Tamil Nadu decided to join the Uday scheme,” said Goyal. The minister said barring one state in the eastern region, all other states in the country have joined the Uday scheme. “The losses of Tangedco has fallen from Rs 14,000 crore to Rs 3,500 crore. This will help Tamil Nadu power consumers to get quality power,” said the minister. Carlos Santana Womens Jersey