Tamilnadu won’t join UDAY scheme until Centre meets our demands: Minister
MINISTER for Electricity, P Thangamani on Thursday clarified that the State government won’t join the UDAY scheme of the Central government until the demands put forth by Tamil Nadu were met. Replying to the discussion on the demands for grants for his department, he referred to the statement of DMK president M Karunanidhi, raising doubts as to whether Tamil Nadu had joined the UDAY scheme since TNEB officials had held talks with the Centre. “Chief Minister J Jayalalithaa already made the stand clear and even requested the Prime Minister to make some alterations in the Scheme. She opposed revision of power tariff once in three months as envisaged in the UDAY scheme,” Thangamani said and asserted that Tamil Nadu would not join the scheme unless its demands were met by the Centre. The revenue deficit of TNEB was brought down to Rs 8,542.12 crore in 2015-16 and is expected to touch Rs 6,374.17 crore this financial year. Due to the incessant efforts to reduce the debt burden, TNEB would start earning profit within three or four years. Soon, Tamil Nadu would get an additional 563 mw from the Phase-II of Kudankulam atomic power project, he noted. Giving a detailed account on the State’s power scenario, he said the average requirement of power now ranges between 13,500 and 14,000 mw. This would go upto 20,000 mw within the next five years. To meet this demand, three power projects would be implemented at a cost of Rs 34,375 crore. These projects were expected to be commissioned between 2018 and 2020, and steps are being taken to set up projects to generate 12,720 mw. Haydn Fleury Jersey
UPERC asks discoms to increase CGRF meeting
The UP Electricity Regulatory Commission (UPERC) on Thursday directed that the number of meetings of Consumer Grievance Redressal Forum (CGRF) be increased to address the problems faced by the power consumers in the state. Commission issued the direction after it came to know that as against six sitting in each district headquarters, only meeting was held in districts like Hathras, Aligarh, Bulandshahar and Muzaffarnagar, three sittings at Mainpuri, Badaun, Shahjahanpur, Ambedkar Nagar and Hapur, and four to five sittings in the other districts. UPERC chairman Desh Deepak Verma said that the representatives of Discoms have been directed to widely publish the place, date and other details of Consumer Forums through Radio, TV, Pamphlets and by providing the details on billing stations and on the back of electricity bills, so that the benefits of the CGRFs may reach to the consumers. Reviewing the status of disposal of cases, the Commission came to know that Kanpur had 26 cases pending for over 6 months while Bareilly had 201 cases pending for over 6 months. Likewise, Faizabad had 17 cases pending for more than 6 months and 9 for more than 1 year and Varanasi 7 cases for more than 6 months and 6 for more than 1 year. Similar situation prevailed in many other districts, UPERC said. Jim Otto Jersey
UP’s energy deficit has reduced on increased power supply:Govt
Uttar Pradesh, where the power situation is “serious”, witnessed a steep decline in energy deficit as more electricity was supplied to the state from central generating stations, Union Minister Piyush Goyal said today. Around 6,544 million units of additional power was supplied to Uttar Pradesh in 2015-16. As a result, the state’s energy deficit came down from 15.6 per cent to 3.2 per cent, Goyal told the Lok Sabha during Question Hour. The Power Minister said this has happened in one year as electricity supply was increased about 20 per cent to the state from central generating stations. When a member asked why in certain places the name Deendayal Upadhyaya Gram Jyoti Yojana is not displayed, Goyal said despite directions it has not been done. After coming to power, the NDA government renamed the Rajiv Gandhi Grameen Vidyutikaran Yojana as Deendayal Upadhyaya Gram Jyoti Yojana. In a written reply, Goyal said the government has specified norms and standards for reduction in specific energy consumption for energy intensive sectors. Under the Perform, Achieve and Trade (PAT), 478 industries from eight sectors were given targets to reduce their specific energy consumption in the first cycle, which was from 2012-13 to 2014-15. “The cumulative target for energy saving for the first cycle was 6.68 million tonnes of oil equivalent (MTOE) to be achieved by the end of 2014-15, against which energy saving of 8.67 MTOE have been achieved which is about 30 per cent more than the target,” Goyal said. Alejandro Villanueva Authentic Jersey
Power tariff to go up by 7percent in Gr Noida from next week
Greater Noida/Noida: The Noida Power Company Limited (NPCL) — a private company that provides electricity in Greater Noida — has decided to increase tariff rates by up to 7% for domestic consumers and up to 8% for commercial and industrial categories from August 10. The decision was taken following an order by Uttar Pradesh Electricity Regulatory Commission (UPERC) on August 1 to implement uniform tariff rates across Uttar Pradesh. However, there will be no retrospective charges. In Noida, which is already following the UPERC order of last year, there is no change in domestic tariff although a 6-7% increase is expected in the LMV 2 (low and medium voltage category used for commercial consumers) and in the industrial category when the relevant notification comes through, officials said. The UPERC tariff order of Monday is for financial year 2016-17 in which there is no increase in domestic and agricultural tariff rates. However, in the case of NPCL, since the domestic tariff rates of last year were not implemented, according to Sarnath Ganguly, general manager, NPCL (Operations), the company is implementing them from August 10 in order to comply with the UPERC order of August 1. “Last year, the tariff rates were lesser for the consumers of NPCL compared to the rest of UP including Noida,” Ganguly said. For example, while the tariff for Noida for domestic consumer was 4.40 for 0-150 units last year, the tariff for Greater Noida NPCL consumers was Rs 4.10 for 0-150 units (see box). Now from August 10, the uniform tariff of Rs 4.40 for 0-150 unit will be charged in Greater Noida as well. “The move is an effort to bring NPCL on par with other consumers of UPPCL as applicable across UP in terms of tariff rates,” Ganguly told TOI. Also, there will be no retrospective charges on new tariff, said Ganguly. The increased tariff ranging from Rs 4.40 to 6.20 per unit, is expected to affect nearly 60,000 consumers of Greater Noida and will be reflected in their September bills. Under the new tariff structure, NPCL has also increased the fixed charge on tariff which from Rs 80 per kWh to Rs 90 per kWh in the domestic category. In the commercial category, while the fixed charge earlier was at Rs 200 per kWh connection, it has now changed to Rs 225 for 2kWh connection, Rs 275 for 2kWh and 3kWh connections, and Rs 355 for connections above 5kWh. The change in fixed charge on tariff for small and medium industries by NPCL include Rs 245 for up to 4kWh connection, Rs 255 for 5kWh to 9kWh connections and Rs 275 for 10kWh and above connections. As for Noida, J K Gupta executive engineer, PVVNL (Distribution), said an increase of 6-7% in the LMV 2 and industrial categories is expected. “The notification for that is expected within a week,” Gupta said. DeVante Parker Jersey
No shutdown of transmission line without permission of SLDC
The Arunachal Pradesh power department on Thursday said that the proposed shutdown of the 132 KV Ranganadi-Ziro transmission line was not in the knowledge of the State Load Despatch Centre. Reacting to media reports about the proposed shutdown, the SLDC said that it was the nodal agency of the state to exercise supervision, monitoring and control of all grid-related operations and as such no shutdown of any element of the grid system could take place without its knowledge and consent. “Even if such shutdown is warranted due to urgency of the work, as stated by Power Grid Corporation of India Ltd, it should be coordinated by the SLDC to ensure minimum disturbance and after consultation with all stake holders to reduce difficulties to the consumers,” Chief Engineer A Perme in a statement in Itanagar said. Power Grid Corporation of India Ltd had informed about the likely shutdown of the transmission line for at least 15 days affecting power supply to Lower Subansiri, Upper Subansisri, Kra Daadi, Kurung Kumey, East Siang, West Siang, Upper Siang and some parts of Papum Pare. Taking a view on the media reports on the matter of shutdown affecting eight districts of central Arunachal, the issue would be discussed in a high level meeting to be chaired by the Commissioner at Pasighat on Thursday, Perme said. The matter would also be raised in the 124th OCC forum of North East Power Committee (NERPC) by the Department of Power on August 8 next in Meghalaya. Ibraheim Campbell Authentic Jersey
GST: Power firms left guessing
Power and renewable energy companies may have to reassess their viability as uncertainty looms over existing tax holidays in the goods and services tax (GST) regime. Most companies enjoy tax exemptions in several states. With the GST Bill being passed in the Rajya Sabha, all eyes are on the model guidelines and the state policies that will follow, particularly on exemptions. “The infrastructure sector will keep its fingers crossed, as there is no clarity on current indirect tax exemptions for this sector,” said Abhishek Jain, tax partner, EY India. The sector is hoping the government will allow existing exemptions to run their course. Jain said another area of concern was the clause in the model GST law that restricted credit on goods and services acquired for construction of immovable property other than plant and machinery. “This clause is interpretative, which may lead to litigation and result in denial of credits in certain situations,” he added. A major concern for energy companies is restrictions on passing on costs if tax exemptions are taken away. Power equipment, solar cell and wind turbine manufacturers fear there could be an increase in cost. “We are waiting for fine print of the GST regulations and how the states emulate these. As there is no electricity duty, wind and solar power companies cannot pass on the cost escalation due to removal of tax holidays,” said an executive with a renewable energy company. Experts expect a 15 per cent rise in the cost of equipment like solar panels and wind turbines if the tax holidays are removed.The ministry of renewable energy had sought from the finance ministry a zero GST rate for the sector. This is in the wake of the falling cost of renewable energy, especially solar power. Terrell Edmunds Authentic Jersey
Cheyyur UMPP electricity to be unaffordable, say analysts
The 4000 megawatt coal-fired Cheyyur Ultra Mega Power Project is likely to be a non-starter at best, or a financial disaster for consumers, Tamil Nadu Generation and Distribution Company (TANGEDCO) and the state government if it actually gets built, according to a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA). The report assessed tariff rates and risks associated with the Cheyyur project after the government proposed revised bidding guidelines to make the project more attractive in response to the withdrawal of prospective bidders who said the project was too risky. “Even with revised guidelines, the risks of the project remained daunting enough to deter investors and lenders,” IEEFA said. “In the unlikely event of the project being awarded by end 2016, the report estimates that electricity from the power plant will have a levelised cost of Rs. 5.93 per unit – far higher than average cost of coal-based electricity. That is bad news for electricity consumers and tax-payers in Tamil Nadu,” it said. S. Gandhi, former TNEB engineer and president of Power Engineers Society of Tamilnadu said in the report: “Seen together with Tamil Nadu’s indebtedness, TANGEDCO’s hopeless financial situation and the political culture of extending freebies and heavily subsidised electricity, Cheyyur project’s expensive electricity will worsen the state’s financial situation,” IEEFA said following last year’s Cheyyur bidding fiasco, the ministry of power revised the bidding guidelines to allow promoters to pass on fuel cost and foreign exchange volatility to electricity consumers and own the project after the contract period. The guidelines also guaranteed that acquisition of “critical” land will be completed by the time of the bidding. However, there is little clarity on what is critical land and what is not critical. According to IEEFA at Cheyyur, land acquisition for the coal conveyor corridor, road and rail access and the ash pipeline have not even commenced. The potential land-losers, however, have indicated that they will not part with their farms. Regardless of whether or not these lands are seen as critical, the project cannot take off without roads or a means to bring coal from the port to the power plant. IEEFA’s report points out that the revisions help neither the consumers nor the investors. “The fuel-cost pass-through will expose consumers and the state electricity board to tariff volatility. Any future increase in coal cess would add on to this volatility. Moreover, the uncertainty over land acquisition would deter investors” said Jai Sharda, a financial analyst at IEEFA and one of the authors of the report. “The Cheyyur project is particularly irrelevant considering that Tamil Nadu is set to become power surplus, and has no need for such a massive baseload capacity enhancement,” he said. According to the report, “The real issue with the Tamil Nadu electricity sector is not the availability of power generating capacity, but the high indebtedness and grid transmission and distribution losses. The state’s power distribution company, TANGEDCO had accumulated losses of Rs. 650 billion over the decade to March 2015. One of the key drivers of this indebtedness is the loss incurred in transmission and distribution of electricity in the state. Aggregate Technical and Commercial (AT&C) losses in 2014-15 were at an exceptionally high 24.4% against an global grid average of 6-8% and best practice is Germany at 4-5%. The high debt and losses incurred by TANGEDCO prompted rating agencies to downgrade its rating to ‘C+’ in the annual integrated ratings of state distribution companies.” Greg Olsen Womens Jersey
5,200 MW solar capacity to be added in 2016-17: CARE
The country is set to add 5,200 MW solar capacity this fiscal with various states coming out with policies for the sector, CARE Ratings said. According to a study conducted by the ratings agency, out of total installed renewable energy capacity of 42,750 MW as on March 31, the share of solar energy increased to 15.82 per cent, as against 13.8 per cent in 2014-15. Various states such as Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Madhya Pradesh, Odisha, Punjab, Rajasthan, Tamil Nadu, Telangana and Uttar Pradesh have come out with policies for awarding solar power projects. Also, government entities like NTPC and SECI have come out with tenders of large capacities in GW size, including those in solar parks. “After witnessing record capacity addition of around 3 GW in FY16, 1,000 MW in the first quarter of this fiscal, and bids of around 6,000 MW awarded over the last six months or so, the solar sector is on a strong growth path. “Nearly 5,200 MW is likely to be added this fiscal and 8,000 MW in FY2016-17,” it said. Further, the Modi government’s ambitious target of 100,000 MW solar capacity by 2022 has attracted serious interest from various players, domestic as well as overseas. The sector is witnessing increased participation from large overseas investors and developers, such as ADIA, CLP, EDF, ENEL, Engie, Fortum, First Solar and Goldman Sachs, while large domestic business houses have also laid down ambitious plans for solar capacity addition. “According to various estimates, India is set to become the fourth largest solar market globally in 2016 behind only to China, USA and Japan, primarily on account of government’s thrust on significantly enhancing the installed solar capacity to 100,000 MW by 2022,” the report said, adding that the recent M&A activity is also reflective of the growing confidence of bigger players in the sector. CARE Ratings further noted that solar PV project costs have witnessed a sharp decline over the years which has led to shift from preferential feed-in-tariffs to competitive bidding. “Apart from decline in solar PV project costs, entry of various players has led to significant increase in competition which has led to significant decline in solar tariffs as visible from the trends in the completed bids over the last 9-12 months,” it said. The ability to manage cost efficiently, secure longer tenure and cheaper debt are the key factors which will have bearing on the bids, returns and viability of the projects, CARE said. It further noted that the capital cost for setting up a solar PV project has been coming down over the years. CERC’s benchmark project solar PV cost has come down from Rs 6.1 crore per MW for 2015-16 to Rs 5.3 crore per MW for this fiscal, with cost of modules declining marginally while civil and other costs have witnessed a steeper fall. Julius Nattinen Womens Jersey
Disgruntled discoms plan to go to court
The latest policy directives issued by the Delhi government coupled with delay by the Delhi Electricity Regulatory Commission’s (DERC) in notifying the new Multi-Year Tariff (MYT) order has left the city’s power distribution companies a disgruntled lot. After the penalty scheme for unscheduled power cuts, the discoms are now miffed at the government’s latest directive to DERC seeking discoms to pay 10 times the compensation amount to consumers for falsely charging them with power theft. “At first it was the amnesty scheme of the government, which was extended thrice. During that scheme, although the three discoms earned Rs. 83.22 crore through resolution of grievances, we had to shell out much more in the form of waivers given to consumers. This amounted to over Rs. 100 crore. Now, we hear about this new policy of compensating consumers 10-times more than the usual amount,” said a discom official. Meanwhile, the delay in notifying MYT regulations is pushing the process of this year’s tariff revision by the DERC. What is also worrying the discoms is that the regulator is unlikely to make an upward revision in tariffs this year. “Our regulatory assets until last year only had climbed up to Rs. 25,000 crore. And this year power demand has been more than 6,000 MW on more than one occasion. Non-reflective tariffs have resulted in incurring losses,” explained an official of another discom. The discoms also highlighted the penalty scheme introduced by the DERC in May this year. “Although the order has been issued. It can be implemented only if the final gazette notification comes. Once it comes, it is likely that the discoms will fight it in the court,” said a source in the discoms. They have also demanded equal penalty clauses for failure on the part of the Delhi Transco limited (DTL), which is under the Delhi government. Patrik Nemeth Jersey
Eight Arunachal districts likely to face power crisis
Heavy landslides triggered by incessant rains in Arunachal Pradesh have damaged Ranganadi-Ziro transmission line at tower no 12. which is likely to cause power shortage in eight districts. Ziro-based Power Grid Corporation of India Ltd (PGCIL) Chief Manager Nani Kojin said that the likely shutdown of the 132 kv transmission line could be for at least 15 days from the date of notice, to be issued shortly. The districts likely to be affected are Lower Subansiri, Upper Subansisri, Kra Daadi, Kurung Kumey, East Siang, West Siang, Upper Siang and some parts of Papum Pare. During the shutdown period, all feeder districts would have to make alternative power arrangements from their own ends, he said. The districts may face power supply problem without any intimation in the event of casualty like collapse of the transmission tower due to unpredictable bad weather condition despite best effort being made by the agency to shift the tower, he said. Tower no 12 located at Hoj-Potin area of 132kv Ranganadi-Ziro transmission line is in a vulnerable condition since long due to the road widening activities carried out by PWD (Highway) for the construction of Trans Arunachal-Highway. Meanwhile, restoration work is going on in war footing for immediate shifting of the tower to safer location and to avoid power interruption to the eight districts. The Power Grid has sought the cooperation of the people and administration to bear the inconveniences and provide all necessary administrative support in case of any emergency needs. Shelby Miller Authentic Jersey