Higher power purchase cost eats into profits at CESC
CESC registered a marginal 1.6 per cent growth in total comprehensive income under the new accounting standards – IndAs, for the first quarter of the current financial year against the previous corresponding period. Comprehensive income is the sum of net income (net profit) and other items that must bypass the income statement because they have not been realized. According to the new accounting standard – IndAs, total comprehensive income is a better indication of the company’s profits rather than net profit. Nevertheless, CESC’s net profit for the quarter under review was Rs 174 crore, against Rs 173 crore in the previous corresponding period. Profit growth was marginal despite a 11% growth in total income from operations at Rs 1,912 crore due to increased outgo on account of a 25 per cent rise in power purchase cost as well as rise in employee costs. The company sold 2,700 million units of power during the quarter against 2,550 million units in the previous corresponding period – a near 6 per cent growth in energy sales. Jack Crawford Womens Jersey
Kerala: State needs to augment power generation to tackle crisis
With the Union Power Ministry gearing up to scrap the firm allocation of power from the central generating stations (CGS) in non-competitive bidding mode, Kerala will have to immediately apprise the Centre of the consequences that are likely to arise on adopting a revised sharing methodology and also initiate steps to augment the generating capacity by 2,500 MW. As per the revised guidelines proposed by the Centre, States hosting power projects reserve the first right for 85 per cent of the generated power, after apportioning 15 per cent with the Central unallocated pool for meeting exigencies. Power sector sources told The Hindu here that the Central allocation during the past one decade had increased by 800 MW, but the State could add only 250 MW to its own power pool. None of the generating stations in South India would share power with Kerala from its unallocated 15 per cent. The State government would have to wake up to this reality and chart a strong course of action to tackle local resistance to inception of new projects. It would also have to apprise the Centre that the Ministry of Environment and Forests had been denying clearance for major hydel projects identified in the late eighties, citing the need for conserving the rich flora and fauna and a host of other environmental issues. The State does not have fossil fuel reserves such as coal or lignite and hence would have to drain its resources for purchasing power through competitive bidding from private generators. This would inevitable lead to a tariff hike and the consumers would have to bear the burden. Proposed methodology The proposed methodology is heavily balanced in favour of resource rich States and the State government would have to convince the Centre that it amounts to discrimination. Considering the easiness in carting power, almost all generators prefer to establish plants in resource-rich States, especially where coal is available in plenty. This would further push Kerala to the brink of a crisis soon and also runs against the Constitutional obligation for balanced development across the country through equal sharing of available resources. Whether the Centre would approve the arguments of the State government is a matter of concern, but it would take up the issues soon, sources said. Ron Greschner Womens Jersey
Discoms looking for new revenue streams
As Delhi Electricity Regulatory Commission (DERC) goes through a complicated phase with delayed orders of tariff revision and the appointment of chairman in jeopardy, discoms are looking at other avenues to increase their revenue. The capital’s power regulatory body has proposed changes in its regulations to allow the discoms and Delhi Transco Ltd (DTL), which claim to be under financial stress, to retain a larger share of their non-tariff income. As per the draft regulations floated by DERC, the power utilities may be allowed to retain up to 60% of the revenue earned from other businesses such as consultancy. Discom BSES has repeatedly asked the DERC to liquidate their regulatory assets which they claim have touched Rs 16,000 crore, pending dues that can be recovered by way of increased tariffs. This move by DERC is seen as an attempt to encourage non-tariff income. The proposed amendment in the DERC (Treatment of Income from Other Business of Transmission Licensee and Distribution Licensee) Regulations, 2005, also states that the utilities will be able to retain 40% of the revenue in case capital assets. David Harris Womens Jersey
Sri Lanka scraps NTPC’s plan to build coal plant
A plan by NTPC to build a power plant in Trincomalee in Sri Lanka’s Eastern Province, has been scrapped following the country’s decision to switch from coal to renewable energy sources. Sri Lanka’s Ministry of Power and Energy on Tuesday told the Supreme Court that it would drop its plan to build a coal power plant in Sampur, Trincomalee, after environmentalists raised serious concerns. Officials at the Indian High Commission said they had not heard from the Government of Sri Lanka on the matter yet. The decision is a virtual blow to the National Thermal Power Corporation’s (NTPC) first international joint venture, in which it holds a 50:50 stake with the Ceylon Electricity Board (CEB). Following concerns over the environmental impact of a coal plant, Sri Lanka has decided to look at options such as Liquefied Natural Gas (LNG), solar and wind power, according to Sulakshana Jayawardena, director-development in the Power Ministry. The Sampur Coal Power Plant was proposed as a joint venture following a 2006 agreement among the Government of Sri Lanka, CEB and the NTPC. In 2011, the partners formed the Trincomalee Power Company Limited, with the aim of setting up two coal-based power plants with a total capacity of 500MW in the strategically crucial coastal town on the island’s east coast. Though the coal-powered plant has now been shelved, the Ministry is engaging with the NTPC to explore partnerships using other sources of energy. “If the NTPC is willing, we are open to considering that option,” Mr. Jayawardena told The Hindu on Tuesday. A Reuters report in May 2016 quoted Sri Lanka’s Petroleum Minister Chandima Weerakkody as saying: “We do not want to hurt India. So President Sirisena in his visit has offered an LNG plant instead of the coal plant,” referring to President Sirisena’s visit to India at that time. Speaking to The Hindu on Tuesday, a senior official of the TPCL said a joint working group formed by the two countries a few months ago was exploring alternatives. “Sri Lanka has expressed its view. We will abide by what the joint working group decides,” he said. Sri Lanka’s total installed power generation capacity is currently about 4,050 MW. This includes 900 MW of coal power, 1,335 MW of oil burning thermal power, 1,375 MW of hydro power and nearly 450 MW of non-conventional renewable energy sources. The country aims to increase its capacity to 6,400 MW in another decade to meet its growing demands. Tony Dorsett Jersey
Andhra now second state to achieve 100% electrification
Andhra Pradesh has become the second state in the country after Gujarat to achieve 100 per cent electrification of households, a latest report has said. JM Financials published the report based on a national -level survey on electrification in various states. Discussing this through a tele-conference with top officials of the Energy Department today, Chief Minister N Chandrababu Naidu said, “We achieved 100 per cent electrification by June-end. Now, you have to set a target of ensuring uninterrupted world-class quality power supply.” He said access to electricity was a key socio-economic development indicator, but this was an area where there was still a significant gap in India. About 35 per cent rural households in states like Uttar Pradesh, Madhya Pradesh, Bihar, Odisha and Assam still lacked access to power supply, he claimed. The Chief Minister asked the Department officials to chalk out an action plan to be implemented from the grassroots level so as to make the power sector self-sufficient in the long run. “Whatever we have achieved in the power sector in the last two years is no doubt very significant, but is not sufficient. “We have to render world-class services to the consumers by providing uninterrupted power supply on par with global standards, at affordable prices,” he said. Yu Darvish Jersey
New technology to help thermal power generation companies quickly switch source
A new technology will enable thermal power plants to start up in as little as an hour, a fraction of the 24 hours currently needed, allowing for greater integration of renewable energy sources in the national electricity production system, which now runs primarily on coal. Thermal plants retrofitted with this equipment can start generation as soon as power from solar units starts to reduce with decreasing sunlight, replacing it with coal-fired electricity. It will balance power flow into the network and keep it stable. Such flexibility isn’t possible now since thermal power plants need 24 hours to start and cannot replace a fall in solar generation at a short interval. Last week, India Power Corporation Ltd (IPCL) and Germany-based Uniper floated an equal joint venture company, India Uniper Power Services, which will source this proprietary technology from Uniper and offer it to Indian plants. “It is being successfully used at Uniper power station at Ratcliffe in the UK. Ratcliffe daily uses start and stop cycles in response to renewable generation. It is commonly used across EU countries, both for coaland gas-fired plants,” said Hemant Kanoria, Chairman of IPCL. “The technology is a complete approach involving upskilling of people, modification of procedures, training, modification of systems and rigorous risk assessment.” The government has set a 100 gigawatt capacity addition target for solar power, which cannot yet be gainfully used to supply electricity to towns and cities because such plants cannot operate continuously. If stored in batteries, solar power will increase costs manifold and make it uneconomical. The Central Electricity Authority and other government agencies have been looking for a solution and this new technology could help at marginal additional cost. Analysts said if this technology is successfully installed in existing plants, electricity exchanges could offer power in the hour-ahead market, depending on the day’s demand surges. Trades in Indian power exchanges are settled on a dayahead basis – buying and selling commitments are made a day earlier and power is supplied the next day. This cycle could be bought down to an hour. “It will also allow idle plants to start generation as soon as they see a fall in supply or a rise in demand during a day. At present, a number of independent power producers are idling their plants due to lack of power demand. These plants generally start only after demand has been on the rise for a day or two. With this technology retrofitted, this cycle can shorten and it can help them get relatively better returns on their investment,” said an analyst. An official from NTPC said it needs to verify if this technology works with equipment provided by Bharat Heavy Electricals Ltd., which has built a majority of its thermal power plants. Kanoria of IPCL said it can be retrofitted on all plants, both coal and gas based. ET View: Boost R&D investment The development is welcome as it allows coal power plants to serve as ancillary units, stepping in when there is a dip in renewable energy supply. It also signals the need to invest in cutting edge research. Public and private entities and the government would do well to invest in and work with research institutes. Logan Forsythe Womens Jersey
Urja app shows power cuts far graver than suggested by Centre
Power deficit and theft have long been India’s woes but state-wise data recently put up by the power ministry on Urja app paint an even grimmer picture. On an average, the country goes without power for about 17 hours in a month, with wide disparity among regions: for example, Haryana faces power cuts to the tune of ten times the national average and Uttar Pradesh, 8 times. These figures controvert the power deficit data which the Central Electricity Authority (CEA) puts out. The CEA, for instance, estimates the power deficit in Haryana to be nil and that in UP just 0.3%. Similarly, pan-India power theft is now 22% whereas it is over 35% in Bihar, Jharkhand and Uttar Pradesh, Urja app discloses, indicating that despite focused efforts to cut pilferage, India’s power-sector entities continue to suffer heavily from the scourge of theft. The UDAY scheme for reviving the debt-burdened state-run power distribution entities envisages the aggregate technical and commercial losses, the jargon for theft, at 15% by FY19. Although the power ministry has said it takes no responsibility for the accuracy of the Urja app data provided by state discoms, the divergence of the data with the CEA statistics is a cause for concern. It may be recalled that based on the inputs from the state, the CEA, a technical arm of the power ministry, had reported that the country would be power surplus in the current fiscal. Shedding light Wide disparity between CEA’s deficit data and power cuts reported on Urja app Not just Urja app, anecdotal evidences such as reports of widespread load shedding in several cities, including Noida and Gurgaon in the national capital region, also question the CEA claim. “We have suggested that the government and the CEA should not use the ‘power deficit’ criteria in its annual reports, as the definition varies from state to state,” Rajesh Mediratta, director of business development at Indian Energy Exchange (IEX), told FE. The exchange provides the country’s biggest platform for spot trade of power. Power cuts, Mediratta said, can be a function of weak distribution network where old substations and transformers aren’t able to carry the current load, forcing the discoms to regulate power in such areas during peak hours. The other reason could be the lack of financial prowess among discoms to buy more power to meet demand. Some states also regulate power to areas where losses are huge. However, power outrages due to these reasons are not covered under the CEA’s ‘power deficit’ data. “The CEA should create a category of ‘unserved demand’ which would encompass all the scenarios that lead to the curtailment of power supply. This will represent the power supply scenario in the the country more accurately,” Mediratta added. The Urja app provides the ranking of states on their performance in the sector on six parameters, including power theft. The other parameters include average power cut per month and pending consumer complaints. Although the data is taken from roughly 1,200 IT-enabled towns covered under the integrated power development scheme, it is fairly representative. The usual suspects namely Bihar, Uttar Pradesh, Haryana, Rajasthan and Jharkhand feature at the bottom of the pile on nearly all parameters. The performance of these states are symptomatic of the large debt accumulated by their discoms over years. However, despite high debt levels and accumulated losses, states like Tamil Nadu, Madhya Pradesh and Punjab fare rather well on most parameters. Experts say that such states would find it much easier to break even, as their fundamentals are not as weak. Curiously, Karnataka, which houses the country’s IT capital Bengaluru, features among the states where e-payment by consumers is yet to pick up. Just a little over 2% of Karnataka’s consumers pay their power bills online, while the pan-India figure is 7%. Bernie Parent Jersey
NTPC posts record output of 866.47 mn units in a day
State-run NTPC has recorded its highest-ever power generation capacity 866.47 million units in a day from sources like coal, solar, gas and hydro. “Powering India: Accounting for a quarter of India’s power generation, NTPC achieves its highest ever electricity output on 9th September,” Power Minister Piyush Goyal said in a tweet today. NTPC has produced 866.47 million units of electricity from various sources like coal, gas, solar and hydro on September 9, 2016, a senior official said. NTPC Ltd, on standalone basis, produced 782.32 million units, including 741.32 million units generated from coal based power plants on September 9. Earlier, NTPC had touched its peak power generation on June 3, 2016, at 846.1 million units. NTPC Ltd’s standalone production stood at 767.54 million units including 730.58 million units from coal based power plants. NTPC’s present installed capacity is 47,228 MW (including 6,966 MW through JVs/Subsidiaries) comprising of 44 NTPC stations (18 coal-based stations, 7 combined cycle gas/liquid fuel based stations, 1 hydro-based station), 9 joint venture stations (8 coal-based and one gas-based) and 9 renewable energy projects. The company’s gross power generation during the quarter ended June 30, 2016, rose almost 10 per cent to 64.55 billion units (BUs), over 58.69 BUs year ago. NTPC Ltd’s had reported 4 per cent rise in standalone net profit to Rs 2,369.53 crore for the first quarter of this fiscal due to increased power generation and better utilisation of coal-based plants. The plant load factor or proportion of capacity utilisation of the NTPC Ltd’s coal-based power plants was 81.35 per cent in April-June quarter of the ongoing fiscal. New York Giants Authentic Jersey
Promise of free power to farmers raises concerns in Punjab
Experts and social bodies have objected to Aam Aadmi Party (AAP) announcing free electricity to farm sector for 12 hours and have asked the party to review the decision in the larger interests of Punjab. The decision, if implemented, would have far-reaching consequences especially on the fast depleting groundwater in Punjab, they warned. NGO Safal Bharat Guru Parampara has asked AAP not to go for the political populist measure, but to ensure judicious use of groundwater to save it for future generations. The NGO had approached the National Green Tribunal (NGT) in February 2014 to stop the government from releasing tubewell electricity connections to save the groundwater. Safal Bharat Guru Parampara chairman P K Rana said, “Out of 145 blocks in Punjab, 110 have been put in the overexploited category where drawing of groundwater is not in the interest of future generations. While granting permission for releasing tubewell power connections in July 2015, the NGT had asked the government to use groundwater very cautiously. Now AAP has gone further in robbing the coming generations of precious groundwater. We will approach the Supreme Court against this decision.” Punjab has nearly 14 lakh tubewell power connections and its water table is falling by 80-88 centimetres per year. Gurbir Singh Dhillon, former chief engineer with irrigation department, termed the action of AAP as highly objectionable. He said, “Punjab is passing through very tough times on the groundwater issue. Not only 110 out of 145 blocks are in dark zones, but 45 blocks have been notified under red zone, where as per law water only for drinking purposes can be pumped. More free electricity will further aggravate the situation.” AAP MP Bhagwant Mann said, “We have studied the issue. Farmers need electricity for farm sector to survive. If the experts have negative opinion, we will further approach them to know more about it.” Otis Sistrunk Jersey
Mohali to get 5 new power grids, updated transformers
To address the problem of low voltage and power fluctuations in Mohali, five new grids would be set up by end of next year. Five grids of 66KV capacity would be installed at several locations in town to enable an even and sufficient electricity supply. Besides installation of new grids, more than 250 transformers would be replaced with new equipment. A senior official from the power department said that the central government has approved a grant for upgrading, replacing the old transformers and installation of new ones under the Accelerated Power Development and Reforms Programme (APDRP). An amount of Rs 40 crore has been approved for Mohali district for upgrading the electrical system and Rs 300 crore was approved for improving the basic infrastructure. In this project, all cables will be laid underground for a distance of over 40km in town and work is expected to complete by start of next year, said sources. As of now, Mohali district has a demand of over 59,000 units per day but the supply is barely over 35,000 units. Anandpur Sahib MP Prem Singh Chandumajra from SAD said, “The grant has been approved by the central government and has been issued for power reforms. I shall oversee the work. With reformation of the electric grid system, the gap between demand and supply would be reduced.” Jerry Rice Authentic Jersey