Low power generation capacity utilisation to continue in 2017
Low power generation capacity utilisation will continue in 2017 on higher generation capacity and only gradual recovery of state-owned distribution utilities, expects Fitch. Fitch Ratings believes sustained improvement in distribution companies’ financial profiles will hinge on the gradual reduction of network losses. Generation and transmission utilities will in turn benefit from timely clearance of dues and higher utilisation rates. It predicts that state distribution companies struggling with years of cash losses will have breathing space in 2017, with 16 states and a union territory signed up for voluntary financial and operational restructuring of their distribution utilities. Tri-partite agreements that allowed central government-owned utilities – NTPC, NHPC and Power Grid Corporation of India Ltd – surety to ensure collection of dues from the distribution companies lapsed in October 2016. There is no clarity yet when or which, if any, of the agreements will be extended. Any consequent increase in receivables for the utilities would be credit negative. Fitch expects state utilities to have large capex requirements in 2017. This will lead to only marginal improvement in their credit metrics. However, Fitch expect the ratings to remain stable. The linkages with the sovereign also provide a rating buffer for these entities. NTPC, NHPC and PGCIL will benefit from regulatory certainty under the current five-year tariff period through end-March 2019. Most of the investments in the next few years will be under the traditional cost-plus model, providing companies with greater security on returns. However, new projects – both thermal generation and grid – in India will be offered through a competitive bidding mechanism. Fitch also expects greater private-sector participation in grid assets as more projects are tendered, although PGCIL will account for more than two-thirds of new capacity investments. It expects rated companies – PGCIL, Adani Transmission Limited and NTPC – to bid prudently for new projects under competitive bidding. Interest and investments in renewable energy will continue, supported by government policy initiatives. However, bidding discipline – especially in solar – remains an issue. “We expect electricity prices to continue to hover at their low levels in 2017. This will be driven by high generation sent out from power stations, continued grid congestion and poor financial health of the distribution companies limiting off-take,” the Fitch report said. Fitch expects issuers, including smaller renewable players, to continue to tap offshore markets to diversify their funding sources and take advantage of potentially lower interest rates. This will free up bank facilities as well. Nevertheless, a failure to rehabilitate the distribution companies would be negative for the whole electricity sector. Any increase in receivable days for power generators and transmitters would be negative for the financial profiles of these entities. Shea Weber Womens Jersey
NITI Aayog CEO says discoms need to be privatised to increase efficiency
NITI Aayog Chief Executive Officer Amitabh Kant today said government owned power distribution companies were largely inefficient. Talking at the India Power Forum, Kant said in order to increase the efficiency, power discoms needed to be privatised. Kant also criticized the various policies launched by different governments to bail out the discoms for the acute cash crunch. “Many policies have come, Ujjwal, UDAY…But in order to increase efficiency, discoms need to be privatised,” Kant said. He further added efficiency of discoms will increase only when when there will be a reduction in aggregate technical and commercial (AT&C) losses. He said use of net metering could provide a solution to the problem of high AT&C losses. He, however, highlighted the issue of discoms not being able to charge users properly for the electricity they are consuming. He suggested introduction of direct benefit transfer (DBT) in the power sector for targeted electricity subsidy. Adding to that, Kant said with the growing installation of renewable energy across the country and a global pressure to cut use of coal, India should also give up using diesel. He said along with a push for renewables, cutting diesel usage would help the environment. Adam Lowry Authentic Jersey
NTPC’s Talcher plant achieves highest generation at 104.13 per cent PLF
NTPC Ltd’s Talcher thermal power station achieved its ever best highest single day generation of 11.496 million units of electricity at 104.13 per cent plant load factor (PLF) on Wednesday, the company said. The station had topped the national ranking for Highest Capacity Utilization among all power stations of the country during 2015-16. With an installed capacity of 460 megawatt, station has four units of 60 MW and two units of 110 MW each. First 60 MW unit of the station was dedicated to the nation on February 7, 1968 making it the oldest power station in the state of Odisha. The station shall enter 50th year of operation early next year. Talcher Thermal was taken over by NTPC from the erstwhile Orissa State Electricity Board in 1995 and had already outlived its prime. “Turnaround story of Talcher Thermal is a masterpiece of NTPC’s operation and maintenance practices which led to its life enhancement and spectacular journey from 19 per cent PLF in 1995 to a PLF of 90 per cent plus for the last eight years,” NTPC said. Andrus Peat Womens Jersey
Demonetisation will lead to less taxation, lower inflation: Piyush Goyal
Demonetisation will increase India’s tax base and prepare the ground for less taxation, lower inflation and a fall in interest rates, Piyush Goyal, minister for power, coal, renewable energy and mines said, defending the Centre’s decision to scrap high-value notes. The government would like to charge lesser tax from the honest and extract much more from the dishonest, Goyal said in an interview with ET. He said the government will make sure rural areas get the cash they need, while people queuing up at ATMs should adopt electronic transfer of money. This will help India leapfrog in credit card adoption just like mobile phone usage raced ahead of landlines. Asked about prospects of relaxation in cash withdrawal limits, he said: “It’s an evolving situation. The lines have come down. Deposits are less than 50% than in the first day.” He said leaders opposing demonetisation are either feeling the pinch personally or want to support corruption and black money. Kevin King Authentic Jersey
Vietnam abandons plan for first nuclear power plants on lower demand, safety concerns
Vietnam’s National Assembly voted on Tuesday to abandon plans to build two multi-billion-dollar nuclear power plants with Russia and Japan, after officials cited lower demand forecasts, rising costs and safety concerns. The vote to scrap the country’s first atomic energy project deals a blow to the global nuclear business and to Japan’s drive to begin exporting reactors after the Fukushima disaster left its nuclear industry in a deep freeze. The Vietnamese government said in a statement that the decision, made in a closed session of parliament after discussion of a government proposal, was taken for economic reasons and not because of any technological considerations. Russia’s Rosatom and a consortium of Japanese firms led by private utility Japan Atomic Power were due to build the plants. The estimated investment needed for the projects had doubled since 2009 to nearly 400 trillion dong ($18 billion), state media Tien Phong quoted Le Hong Tinh, vice chairman of the National Assembly’s science, technology and environment commission, as saying earlier this month. The Vietnamese government is fiscally strapped as public debt lingers near the permitted limit, curbing its ability to maintain Vietnam as one of Asia’s fastest-growing economies through spending. Growth in power demand in Vietnam is also forecast to slacken. When the government approved plans for the two plants in 2009, growth in Vietnam’s annual power demand was projected at 17-20 percent. Duong Quang Thanh, chairman of state utility Vietnam Electricity group, was quoted by state-run Voice of Vietnam radio recently as saying that annual growth between 2016 and 2020 was now forecast at 11 percent, and 7-8 percent through 2030. Vietnam’s decision to scrap the project is a further setback for the nuclear industry as countries from Germany to Indonesia have decided to either pull out of nuclear energy or cancel development plans in the wake of the Fukushima nuclear disaster in Japan in 2011, the world’s worst since Chernobyl in 1986. Environmental campaign group Greenpeace, however, welcomed the decision to drop the nuclear plan, saying it would have been a waste of money when renewable energy alternatives are available. “The project could also pose an environmental threat, and Vietnam cannot afford to risk another disaster after a toxic industrial leak triggered mass fish deaths earlier this year,” Greenpeace Regional Campaign Coordinator Arif Fiyanto told Reuters. A toxic leak sullied over 200 km (125 miles) of coastline in April. The country’s worst environmental disaster, it killed more than 100 tonnes of fish and left thousands jobless. The Japanese and Russian nuclear plants were due to have been located in central Ninh Thuan province. They would have had a combined capacity of 4,000 megawatts. “We respect our customer’s position, and we are ready to provide the full support to Vietnam when the country continues the implementation of its national nuclear power programme,” Russia’s Rosatom said in an emailed comment. Rosatom, however, is not fully pulling out of Vietnam. The state-run company said it would continue taking part in developing nuclear technologies and infrastructure, which should support peaceful nuclear energy in Vietnam, it said without elaborating. Keyshawn Johnson Womens Jersey
Microsoft saves $10 million by reducing carbon dioxide emissions
More than $10 million has been saved every year and emissions reduced by the equivalent of 7.5 million tonnes of carbon dioxide through investments in energy efficiency, green power and carbon offset community projects, software giant Microsoft says in a new report. The company, which set a voluntary internal carbon fee four years ago, says its carbon-neutral initiatives have impacted more than 3.2 million people in emerging nations. It has purchased more than 10 billion kilowatt-hours of ‘green power’ for lighting up its offices since July 2012. These facts came to light in its white paper that was released at the just concluded COP-22 United Nations Climate Change Conference in Marrakech in Morocco. “We seek to serve as a model in our commitment to environmental sustainability by delivering on our carbon neutrality commitment and uncovering new ways technology can help us better understand our planet,” says the paper, quoting Microsoft CEO Satya Nadella. It says the company’s goal is to reach a point where all greenhouse gas emissions are safely absorbed by healthy forests, soils, and other natural or nature-based infrastructure. “Since we implemented the carbon fee (July 2012), we have reinvested a portion of the carbon fee investment fund into our company through a range of internal carbon reduction initiatives, such as lighting equipment upgrades and e-waste recycling,” says the paper. “Specifically, part of the cost of energy that we consume from carbon-based sources is ultimately redirected to invest in projects that reduce the environmental impact of our operationally controlled facilities.” The paper says that since the launch of the programme, the company has funded over 60 projects in 23 countries by investing more than $2 million. To establish the price on carbon, the company has a Carbon Neutral Council, a cross-corporate group that provides feedback on and buy-in to the programme. To retire its e-waste appropriately, the company has recycled over 400,000 assets and reused over 350,000 assets in the US alone. The programme also supports additional recycling and reuse in Europe, the Middle East and Africa, Asia Pacific and Latin America. To light up its offices, the company is switching over to renewable sources. In November 2013, the company signed a long-term agreement with RES Americas to purchase 100 percent of the energy from the Keechi Wind Project, a 110-megawatt facility in Texas. Similar pacts were also signed with other renewable companies. Joshua Dobbs Womens Jersey
Flatlining global carbon emissions highlight slowdown in power demand: GlobalData
Global carbon emissions caused by energy production remained steady in 2015 and posted the lowest growth in the past 25 years excluding 2009, when there was a decline in the aftermath of the economic crisis, said GlobalData in a statement on Monday. Its latest report states that this stall in global carbon emissions can be attributed to a slowdown in demand for power and a shift in fuel mix from coal to low carbon fuels such as natural gas. Ankit Mathur, GlobalData’s practice head covering power, said: “Global installed power capacity reached 6,241 Gigawatts in 2015 from just over 5,000 GW in 2010, increasing at a compound annual growth rate of 4.3%. At present, the global power industry is characterized by heavy dependence on thermal fuel sources for power generation, as several major power-generating countries have abundant coal reserves.” Although thermal power will remain a dominant feature in the global power market for the foreseeable future, the share of thermal power in the overall installed power capacity will witness a declining long-term trend. The share of thermal power is expected to fall from its current level of 62.6% to 53.6% by 2025. “Market uptake for clean coal technology is expected to increase in the coming decade as countries such as China and the US are adopting it to improve efficiency and reduce emissions in comparison to conventional coal-fired plants. The outlook for conventional power in the US looks positive with the change in regime as the new government is considered to be pro oil and gas. “Countries which have abundant coal reserves, such as the US, China, Japan, Russia, and India, are developing coal power plants, whereas those dependent on imported coal are curbing their imports to reduce emissions.” In terms of renewable power, installed capacity other than hydro increased from 321.6 GW in 2010 to 787.5 GW in 2015 at a CAGR of 19.6%, and it is expected that this will reach 2,150 GW by 2025. Indeed, renewables now present a credible challenge to fossil fuels in terms of global investments and remain the fastest growing market segment. The share of renewables in global installed power capacity increased from 4.6% in 2010 to 12.6% in 2015, and is expected to reach 23% by 2025. Henri Richard Authentic Jersey
Gujarat state distribution companies collect Rs 2,000 crore in power bills
With state-run electricity companies accepting demonetized currency notes from its customers for payment of electricity bills, four Gujarat government owned power distribution companies (disoms) have registered increase in their collections as on November 19, 2016. In order to ease the burden on customers, these state discoms have been permitted to accept old currency notes for both outstanding dues and advance payments for future consumption of power. Discoms will accept old currency notes till November 24, 2016. According to the data provided by Gujarat Urja Vikas Nigam Ltd (GUVNL), the cumulative power bill collections of its subsidiaries, as on November 19, stood at Rs. 2,002 crore as against Rs 1,849 crore in October 2016 and Rs 1,665 crore in November 2015. “There has been an increase in our revenues as we are accepting demonetized notes as well. Many customers made advance payments too,” said a senior GUVNL official. While Pachim Gujarat Vij Company Ltd (PGVCL) collected Rs 666 crore and Dakshin Gujarat Vij Company Ltd (DGVCL) Rs 671 crore, the power bill collections of Uttar Gujarat Vij Company Ltd (UGVCL) and Madhya Gujarat Vij Company Ltd (MGVCL) stood at Rs 331 crore and Rs 279 crore respectively. Gujarat Energy Transmission Corporation Ltd (GETCO) and others mopped up Rs 55 crore as on November 19. According to sources, many customers offered to make advance payments of higher amounts, but according to the Gujarat Electricity Regulatory Commission (GERC) norms, discoms were limited to receiving cash payments of up to Rs 20,000. Any amount above Rs 20,000 has to be paid through cheque. Jonathan Marchessault Authentic Jersey
India joins CERN as an associate member
India becomes Associate Member State of CERN. India and European Organisation for Nuclear Research (CERN) signed an agreement today. This follows CERN Council’s adoption of the resolution to this effect on September 15, 2016. The agreement was signed by Dr. Sekhar Basu, Chairman, Atomic Energy Commission and Secretary, Department of Atomic Energy and CERN Director General Dr. Fabiola Gianotti in Mumbai today. CERN is the world’s largest nuclear and particle physics laboratory, where scientists and engineers are probing the fundamental structure of the Universe by using the most sophisticated scientific instruments and advanced computing systems. CERN is based in Geneva on the French-Swiss border. Presently CERN has 22 member states, four associate member states, and the observer status is given to four states and three International Organisations. In recent years, Indian scientists have been involved in all pioneering activities at CERN. Reilly Smith Authentic Jersey
J&K fails to meet deadline for achieving 1st milestone under UDAY scheme
Jammu and Kashmir Government has failed to meet the deadline for achieving the first milestone fixed by the Union Power Ministry under its Ujwal DISCOM Assurance Yojana (UDAY) Scheme as feeder metering has yet not been completed particularly in rural parts of the State. Moreover, the Power Development Department has not ensured compliance to the directives of State Electricity Regulatory Commission (SERC) on furnishing action plan for implementation/achievement of operational milestones agreed to by it in a Memorandum of Understanding (MoU) signed with the Government of India. The J&K Government had entered into a Memorandum of Understanding with the Union Ministry of Power on March 15, 2016 under UDAY Scheme for operational and financial turnaround of the State’s Power Development Department, official sources told EXCELSIOR, adding under the scheme the PDD has committed to achieve 11 operational milestones within the timelines fixed by the Ministry of Power. The foremost milestone was pertaining to 100% feeder metering in urban and rural areas of the State so as to ensure effective power supply maintenance and focused reduction of Aggregate Technical and Commercial (AT&C) losses and for completion of this vital exercise the timeline agreed to by the Power Development Department was June 30, 2016. However, the State has failed to meet the deadline for 100% feeder metering and even four months beyond the fixed timeline this vital exercise has not been completed in many rural parts of Jammu and Kashmir. “This has raised many doubts about Power Development Department’s efficiency in meeting timelines for other operational milestones”, sources said. It is pertinent to mention here that the main aim of signing this MoU is to restructure high interest rate of the total DISCOM debt thereby improving financial condition of PDD. The MoU under UDAY would enable Jammu and Kashmir to raise funds at cheaper rate to clear the outstanding dues of around Rs 3538 crore of CPSUs, which would entail an annual saving of Rs 1200 crore (over 4 years) towards interest cost to the State. As per the MoU, J&K is required to ensure 100% Distribution Transformer Metering by June 30, 2017; energy audit up to 10 KV levels in rural areas and feeder improvement programme by March 31, 2017; physical feeder segregation by March 2018; smart meters for consumers consuming above 500 units per month by December 2017; smart meters for consumers consuming above 200 units per month by December 31, 2019; implementation of ERP systems by March 2017 and providing 80 lakh LED bulbs for domestic and other categories under DELP during the financial year 2017-18. What to talk of meeting the timeline fixed by Union Power Ministry, the Power Development Department has also failed to ensure compliance to the directives of the State Electricity Regulatory Commission on furnishing detailed action plan for implementation/ achievement of operational milestones agreed to by the department under UDAY Scheme. For this, the SERC vide its order dated October 7, 2016 had given one month time to the PDD but like so many other directives of the Commission this one has also met the uncertain fate because of the non-serious approach of the concerned authorities, sources said while disclosing that detailed action plan is imperative so that SERC is also able to monitor the performance of the PDD in implementation/achievement of operational milestones fixed under UDAY Scheme. Meanwhile, metering of all the installations across the State will be completed during the Financial Year 2018-19 as per the plan submitted by the PDD to SERC. The PDD has conveyed to the Commission that it will install 344709 meters during 2017-18 financial year and 348103 during 2018-19 financial year. For 100% metering the PDD requires a total of 1,147,723 meters. Jon Halapio Authentic Jersey