Nuclear Power Sector Stirs in India as Liability Fears Ease
Optimism is building in India’s nuclear power industry as concerns ease that equipment suppliers would face crippling compensation costs in the event of an accident. Companies such as Larsen & Toubro Ltd., Bharat Heavy Electricals Ltd. and Mumbai-based Walchandnagar Industries Ltd. are preparing for a pick up in orders, after Prime Minister Narendra Modi’s government took steps to blunt the impact of a 2010 act governing liability for nuclear power mishaps. “The lull seen in this sector is almost over,” Walchandnagar Industries’ Chief Executive Officer G.K. Pillai said in an interview. “We’d be open to making dedicated investments toward enhancing manufacturing capacity in nuclear equipment.” The company plans to revive talks with Russia’s Atomenergomash OJSC to build a joint-venture factory in India’s western state of Gujarat that could supply nuclear power equipment for both Indian and export markets, Pillai said. For optimists, such developments, as well as progress on Westinghouse Electric Co.’s plan for six reactors in India, underscore ebbing liability fears. Pillai said Walchandnagar is open to discussions with Westinghouse Electric and Electricite de France SA for the factory if talks with the Russians fail. Global Protocol The Civil Liability for Nuclear Damage Act seeks to ensure compensation for victims of a nuclear mishap, and is a legacy of one of the world’s worst industrial disasters — the 1984 Union Carbide chemical accident in the central Indian city of Bhopal that killed more than 10,000 people. To address concerns about the implications of the act, India ratified the Convention on Supplementary Compensation for Nuclear Damage — a global protocol on nuclear liability — in February. The nation has also issued an addendum to clarify the interpretation of the domestic liability law, and started a nuclear insurance pool for operators and suppliers. That’s encouraged New Delhi-based Bharat Heavy, India’s biggest supplier of power plant equipment, to sharpen the focus on its nuclear business. “So far nuclear has seen slow growth, but now it’s set to move at a brisk pace, as most of the concerns have been addressed,” said P.P. Yadav, head of Bharat Heavy’s nuclear business. “As the sector grows, we’ll deploy more of our resources to this business.” Bulk Orders Walchandnagar Industries declined 0.6 percent as of 9:36 a.m. in Mumbai, while Bharat Heavy dropped 0.9 percent. Engineering and construction company Larsen & Toubro fell 0.6 percent. The S&P BSE Sensex slid 0.8 percent. Nuclear Power Corp., the monopoly nuclear energy producer, is discussing with the government if it can float bulk orders for domestic projects, Director Rohit Banerjee said. That will give vendors long-term visibility and will help them plan for the future, he said. Challenges remain to scaling up the sector, including keeping costs down so that nuclear-generated electricity is competitive in a market dominated by coal. India’s goal is nuclear power capacity of 63 gigawatts by 2032 from about 5.8 gigawatts now, part of a push to curb fossil-fuel emissions and diversify the nation’s energy mix. The plan includes using domestic pressurized heavy-water reactor technology as well as light-water reactors sourced from overseas. The South Asian nation has approved a number of reactor projects, according to the Department of Atomic Energy. “We built huge capacities for nuclear, but a part of that capacity has remained idle as India’s nuclear program didn’t provide sufficient load to the industry,” said Y.S. Trivedi, senior vice-president at Mumbai-based Larsen & Toubro. “Things are looking up now and a number of orders are in sight.” Ryan Miller Jersey
Discoms fail to curb power loss after two decades of reforms
Even after two decades of power sector reforms, power distribution companies (discoms) of the State have failed miserably to contain the high Aggregate Technical & Commercial (AT&C) losses. The overall AT&C loss of the four discoms – Central Electricity Supply Utility (Cesu), North Eastern Electricity Supply Company (Nesco), Western Electricity Supply Company (Wesco) and Southern Electricity Supply Company (Southco) in the low transmission (LT) sector in the last fiscal was 57.67 per cent. The average AT&C loss of the four discoms (both in LT and high transmission category) is nearly 39 per cent. The State Government had targeted to bring down the loss to 26 per cent by 2019. One per cent reduction of AT&C loss is expected to contribute `80 crore per annum to the State Government. With an AT&C loss of 52.79 per cent in 2015-16, Cesu was able to reduce the loss by 2.32 per cent from the previous fiscal. However, loss reduction by Nesco was very marginal. The company reduced its loss level by 0.76 per cent from 56.38 per cent in 2014-15 to 55.62 per cent in 2015-16. The LT loss of Wesco was highest among the four discoms. Despite having the advantage of highest number of HT consumers, the utility has utterly failed to bring down the AT&C loss in the LT category. The company’s AT&C loss was 72.69 per cent in the last fiscal as against 72.69 per cent in 2014-15. Having majority of its consumers in the LT category, Southco was able to reduce the AT&C loss by 1.95 per cent from 56.34 per cent in 2014-15 to 54.39 per cent in 2015-16. The discoms failed to bring down the AT&C loss despite infusion of fund from the State Government through various programmes including the ambitious Capex programme. The Capex programme was launched to cut AT&C loss by three per cent each year. Besides, the Government has also sanctioned fund for installation of 550 new 33/11 KV sub-stations in different blocks of the State for strengthening of distribution system, reduction of T&D losses and to ensure supply of quality power to consumers. The project estimated to cost `4,500 crore is still under implementation. Josh Doctson Jersey
Notice served to stop power supply to JBVNL from Oct 16
Patratu Vidyut Utpadan Nigam (PVUNL) today issued a notice to Jharkhand Bijli Vitran Nigam Limited (JBVNL) threatening to stop power supply from coming Sunday due to non-payment of energy bills by the discom. Patratu Vidyut Utpadan Nigam Limited (PVUNL) is a joint venture company of NTPC and Jharkhand Bijli Vitran Nigam Limited (JBVNL). The notice for regulation of power supply to JBVNL has been served due to non-payment of outstanding dues of Rs 44.23 crore beyond 60 days, Vishwanath Chandan Deputy Manager (PR), Eastern Region -1 Headquarters, Patna said in a statement. The cumulative pending amount from April 2016 to September 2016 is approximately Rs 82.44 crore from the date of presentation of bills and non-opening of LC for the requisite amount, he said. This is in line with CERC (Regulation of Power Supply) Regulations, 2010 and as per supplementary PPA signed between Patratu Vidyut Utpadan Nigam Limited and Jharkhand Bijli Vitran Nigam Limited on March 30, 2016, Chandan said. The power regulation would be implemented from October 16, 2016, he added.
Lack of reforms created huge NPAs in infrastructure, power sectors: Arun Jaitley
Finance Minister Arun Jaitley on Thursday blamed the successive governments’ inability to bring in reforms in the infrastructure and power sectors for the rising non-performing assets in the core segments. He said there are a number of sectors which have been impacted by the global slowdown, but some of these were hit more because of the absence of reforms. “There are at least two sectors – infrastructure and power- where we can’t blame external factors. Our own inability to bring in reforms adequately in these sectors, I think, caused the difficulty (in banks books),” Jaitley told the BRICS Economic Forum here. Elaborating further, the Union Minister said that in the infrastructure sector the key problem is the inability to adequately and quickly settle the disputes. “We allowed them to pester for an indefinitely long period and now we have taken a number of steps, including amending laws, setting up faster courts, among others. I do hope we are able to get out of it,” the minister said. While accepting that absence of reforms in state discom led to a stress in the power sector, Jaitley said, “I think the only silver lining is that the causes of the stress (in power sector) have been analysed quickly and correctly, and now we are addressing those problems.” He said bringing reforms in the country has become more easier now than it was some years back. “I think there is a lot of maturity, which has come into the country’s political system and this is noticed from the fact that reforming in India today is no longer as challenging as it used to be say 10 or 20 years ago,” he said. It can be noted that most of the over Rs 8.5 trillion of dud loans of banks, a large chunk are their exposure to infra and power sectors. He noted that even at the state level, there is an interest to bring in reforms to attract investment and to improve economic activities. Jaitley, however, said some of the challenges the country is facing today are due to high population and resource mobilisation. On the protectionist policies of the developed world, he said if this debate gets replicated in the developing economies or in the emerging markets, it probably would have extremely serious consequences. He said when the domestic economy was opened up, there were concerns that the country might be hit by protectionist policies of the developed nations, but those fears do not exist now. “As of now our economy has matured and we have got out of that (protectionist) debate. I can safely assume that today, in an economy like India, not even ripples of that debate are being felt, which you are otherwise witnessing in the developed countries itself,” he said. On the proposed BRICS Rating agency, Jaitley said the objective of setting up such an agency is to have a professional and independent entity and not to control it by a group of countries. Kwon Alexander Womens Jersey
Worried about power theft, police opt for underground cables
Big Brother may not be watching motorists all the time. Some of the CCTV cameras installed to monitor the traffic are defunct. And in other places, the power that keeps the cameras running is being stolen. A recent survey revealed that unidentified citizens are illegally tapping into the power lines connecting CCTV cameras installed at major junctions. There is only one way to stop this pilferage, say senior traffic police officers. “We have decided to go for underground connections with fibre optic cables for power and connectivity,” said Additional Commissioner of Police (traffic) R. Hitendra who headed the inspection team. Though pilferage was detected only at a few junctions, it is a matter of concern. According to him, Bescom has sanctioned supply for some CCTV cameras without a meter. The department pays a lump sum amount to Bescom every month. “However we have noticed that many illegal connections have been drawn from such power lines,” he said. In addition to this, around 25 cameras not functioning due to ongoing construction activities. “Because of this, the traffic department is unable to access the situation in these areas,” Mr. Hitendra added. Bengaluru has around 340 cameras installed at various junctions. By the end of this year, there are plans to add another 600 CCTV cameras. Tennessee Titans Jersey
NTPC’s regulatory woes increase Power Grid’s appeal
Among power utilities, public sector enterprises NTPC Ltd and Power Grid Corp. of India Ltd are viewed as safe investments. The companies work on a regulated business model and did not make oversize bets till now. This strategy by and large helped them avoid the pitfalls their private sector peers encountered and deliver superior stock returns. But changing market conditions and regulations are testing this thesis, especially for NTPC. After altering the incentive formula to actual utilization instead of power plant availability, regulator Central Electricity Regulatory Commission (CERC) is now proposing to change the fuel costs calculation mechanism. Against the current mechanism of “as fired” basis, CERC stipulates that NTPC calculate the gross calorific value (GCV) of the coal “on arrival” basis. Through this, the regulator wants to make NTPC accountable for the heat loss if any from the unloading point to the time coal gets fired. If implemented in the new format, the order can raise the company’s electricity production cost as the coal is said to see noticeable loss in GCV in transportation. The order right now does not apply to all plants. But if extrapolated, then NTPC’s earnings estimates may see significant cuts. The development comes amid a changing power sector landscape. Increasing availability of cheaper electricity in the spot or merchant power markets means states are no longer showing enthusiasm in signing long-term power purchase agreements (PPAs). In fact, some states are even said to be backing down on high-priced agreements and are meeting their electricity requirements through short-term contracts. These factors are raising questions about NTPC’s ability to recoup its returns from the earlier setback of the change in incentive calculation formula from plant availability to actual utilization method. According to Edelweiss Securities Ltd, this uncertainty can weigh on the NTPC stock and drive its underperformance vis-à-vis Power Grid, whose earnings are seeing no such risks. Power Grid gained 34% in the last one year, compared to NTPC’s 16%. “The bigger challenge is whether these orders mean that the regulator is incentivizing distribution/transmission vs generation, and if so NTPC’s elusive RoE (return on equity) pick-up may get pushed back,” Edelweiss said in a note. Of course, this is not to say NTPC is losing its competitive advantage. The order can be appealed. NTPC is still better off when compared with private electricity producers due to its strong financial position and profitable PPAs. But changing regulations and risk to returns mean NTPC’s earnings lack Power Grid’s certainty. Further the latter’s earnings are seeing positive momentum, thanks to high capacity additions the company is expected to see this year. Antonio Gates Authentic Jersey
Follow transparency or will cut financial aid: Goyal to UP
Union Power Minister Piyush Goyal warned Akhilesh Yadav-led state government that it would not receive any “financial help” in the future from the Centre if it doesnt follow transparency while implementing Central schemes. “As far as electrification is concerned, the states position is bad. If state government do not put board highlighting details of the work on websites, and transparency is not followed, the Centre will stop financial help to the state,” Goyal said while addressing the audience at a programme here. The minister said only 5 lakh houses were electrified as against the proposed target of 10 lakh under the 11th five-year plan. He said under the 12th five-year plan too the state government managed to electrify only 1.25 lakh houses against the proposed target of 32 lakh. “The state government is claiming that 4.97 lakh houses have been covered,” Goyal remarked. He said the state government has received Rs 12.707 crores for rural and urban electrification schemes before BJP-led NDA government came to power, but this amount was not utilised. Later talking to reporters, Goel termed Rahuls “dalali” jibe as “unfortunate” and said that “his statement has been hailed in an enemy country (Pakistan)”. “From coal allocation to other cases, Congress hand is infamous for dalali. People of the country will give a befitting reply to the Congress for the childish statements,” he said. “How can a country trust a leader, who cannot save his khat(cot),” he asked. Duke Dawson Authentic Jersey
BSES receives encouraging response to Solar Net Metering
BSES, part of the Rs 1,000 crore Reliance Infrastructure, today annouced it has installed 206 net metering connections with a sanctioned load of over 7 Megawatt across the country. BSES after realizing its orders becomes the first discom in the country to install over 200 net metering connections, according to a company press release. Net metering is a billing device that shows solar energy system owners the electricity they add back to the grid. A customer with a PV rooftop system can monitor the electricity generated during daylight hours and can also observe the electricity fed back to the grid, using a net metering system. “Consumers have begun to see the benefits of roof stop solar and how it reduces their electricity bills due to which the response to Net Metering has been incredibly encouraging,” said a BSES official. Both Government of India and the Delhi Government have very ambitious renewable energy plans and the potential of roof top solar in BSES area is in excess of 250-300 MW, the media statement added. “Consumers opting of solar net metering save between Rs 1000 per month to around Rs 10 lakh per month,” added the official. Forty schools and educational institutes have opted for ‘Net Metering’ connections from BSES with a total sanctioned load of over 1600 KW. These schools include Vasant Valley, Tagore International, New Era Pubic School, Father Agnel School, Venketeshwara School, Bhatnagar International School, and M S Mukerjee Memorial School. BSES further has nearly 50 connections with a sanctioned load of over 1.5 MW are under various stages of commissioning at the consumer’s end. Christian Jones Womens Jersey
Discoms embrace solar energy in a big way
Delhiites are finally beginning to take to green energy production in a big way. The BSES discoms reported that they have energised 206 net metering connections with a sanctioned load of over 7MW (over 7,000 kW). Apart from this, nearly 50 connections with a sanctioned load of over 1.5MW are under various stages of commissioning at the consumer’s end. Some of the recent takers for green energy generation are Delhi Cheshire Home, Vasant Valley School, East Point School, Dayal Singh College, DMRC, a Church in Mayur Vihar, Kohli Imports and Exports, Spartan Management Services and the Delhi Secretariat. The BSES discoms claimed they were the first power distribution utility in the country to have such a large number of net metering connections. “Consumers across categories have warmed up to rooftop solar net metering. An interesting trend that has emerged is that Educational Institutions (and schools), Commercial Establishments and Domestic Users have taken to Net Metering in a big way,’’ said a spokesperson. Many prominent schools and educational institutes have opted for net metering connections with a total sanctioned load of over 1,600kW (over 1.6MW). These schools include Vasant Valley, Tagore International, New Era Pubic School, Father Agnel, Venketeshwara, Bhatnagar International, St Cecilia’s Public School, East Point, Vivekanand Public School and M S Mukerjee Memorial School. “The response to net metering has been incredibly encouraging. Consumers have begun to see the benefits of rooftop solar and how it reduces their electricity bills. BSES has energised net metering connections ranging from a sanctioned load of 1kW to 1,000kW. These consumers save between Rs 1,000 to around Rs 10 lakh per month,” said a BSES official. Both Centre and Delhi government have very ambitious renewal energy programmes and are actively pushing for green energy generation. The potential of rooftop solar in BSES area is in excess of 250-300MW, said officials. Net metering regulations were notified by the DERC in 2014 and outline how people can generate renewable energy on their premises and reduce their electricity bills through the amount of power they supply to the grid. “With this, consumers can set up their own solar panels and either supply directly to the grid or use it partially. Whatever you supply to the grid, you can draw back whenever you need it,” a DERC official said.
Murray Energy CEO calls Tesla a fraud and musk tweets it
The head of the biggest privately owned US coal producer on Monday called electric-car maker Tesla Motors a “fraud” for failing to turn a profit despite subsidies. Elon Musk, the billionaire chief executive officer of Tesla, fired back at Murray Energy CEO Robert Murray within hours on Twitter. In his post, Musk said Tesla gets “pennies” on the dollar in subsidies compared with the coal industry, and that climate science denial is the “real fraud”. The verbal sparring between Murray and Musk comes as seismic changes in energy policy and competition from natural gas have pummelled coal miners, leading to bankruptcies and record production cuts. In his interview with CNBC on Monday, Murray said Tesla was an example of the many companies collecting subsidies through energy policies supported by Democratic presidential nominee Hillary Clinton. “Here again, it’s subsidies, and Hillary Clinton said they need government help,” he said. Murray added that such policies were about Clinton “supporting her friends” rather than protecting the environment, and that the shutdown of all US coal plants would do nothing to fight climate change. Charley Taylor Jersey