Power

Coal's share in India's power mix hits highest in more than two years

Coal's share in India's electricity generation rose to the highest level in at least nine quarters during the first three months of 2021, government data showed, reversing a trend of renewable energy gaining at coal's expense. The share of renewable energy rose in 2020 when overall power demand was reduced by lockdowns to limit the pandemic. This year seasonal factors have limited output of renewables, including hydro electricity, which are weather dependent, helping coal's share to rebound. The share of coal and lignite rose to 78.9% during the quarter ending March 31, compared with 75.9% in the same period last year, a Reuters analysis of daily load despatch data from the federal grid regulator POSOCO showed. Coal's contribution to India's annual electricity generation fell for the second straight year in 2020, the data shows, marking a departure from decades of growth in coal-fired power. A consistent rise in the share of renewables culminated in coal's share in electricity generation falling below 60% for the first time in decades on Aug. 12. Just over five months later, coal's contribution to daily power output rose to more than 80% for the first time in at least 750 days on Jan. 20, a feat that was repeated nine more times to March 31, the data showed. Recovery in coal-fired generation coincided with India's overall electricity demand returning to growth: the country's power demand and share of coal-fired power rose for seven straight months starting September, POSOCO data showed. India's annual electricity demand fell for the first time in at least 35 years in the fiscal year to March, with electricity consumption declining for six straight months ending August.

India's power consumption grows nearly 45 pc in first half of April

Power consumption in the country grew nearly 45 per cent in the first half of April to 60.62 billion units (BU) over the corresponding period a year ago, showing robust recovery in industrial and commercial demand of electricity, according to power ministry data. Power consumption in the first half of April last year (from April 1 to 15, 2020) was recorded at 41.91 BU. On the other hand, the peak power demand met, which is the highest supply in a day, during the first half of this month remained well above the highest record of 132.20 GW in the same period in April 2020. During the first half this month, peak power demand touched the highest level of 182.55 GW on April 8, 2021, and recorded a growth of 38 per cent over 132.20 GW recorded in the entire month of April last year. Power consumption in April last year had dropped to 84.55 BU from 110.11 BU in the same month in 2019. This happened mainly because of fewer economic activities following imposition of lockdown by the government in the last week of March 2020 to contain the spread of deadly COVID-19. Similarly, peak power demand met also slumped to 132.20 GW in April last year from 176.81 GW in the same month in 2019, showing the impact of lockdown on economic activities.

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Discoms overdues falls by over Rs 151 bn to Rs 740 bn in Mar: Report

The outstanding overdues of power distribution utilities fell by over Rs 15,118 crore to Rs 74,510 crore in March this year, as compared to the preceding month, mainly due to the release of the second tranche of liquidity infusion package, according to PFC Consulting Ltd data. The overdue amount stood at Rs 89,628 crore in February. The power producers give 45 days to power distribution utilities (discoms) to pay bills for electricity supply. After that, the outstanding dues become overdue and generators charge penal interest on that in most cases. In May 2020, the government announced Rs 90,000 crore liquidity infusion for discoms under which these utilities would get loans at economical rates from Power Finance Corporation (PFC) and REC Ltd. This was a government initiative to help generation companies (gencos) to remain afloat. Later, the liquidity infusion package was increased to Rs 1.2 lakh crore and further to Rs 1.35 lakh crore. Under the liquidity package, the PFC and REC together have disbursed Rs 78,855 crore so far. Overdues of discoms reduced significantly in March 2021, after PFC and REC began releasing second tranche of disbursements under DISCOM liquidity package in February end this year, showed the data available on PRAAPTI portal.

Niti Aayog launches India Energy Dashboards Version 2.0

With an aim to provide single-window access to the energy data for the country, government think tank NitiAayog launched India Energy Dashboards (IED) Version 2.0, according to an official statement. While launching the IED, NitiAayog Vice Chairman Rajiv Kumar said that it is an endeavour to establish a central energy database of the country. "With the rise of renewables and many other new energy technologies, the interplays between energy supply and demand sectors are now becoming increasingly critical," he said adding that the scenario building exercise is the key as India needs to seize today's opportunities to build a sustainable tomorrow. Also speaking at the event, NitiAayog CEO Amitabh Kant said the goal is to turn data into information, and information into insights to inspire those in a position to make a difference.

CIL floats two new subsidiaries to pursue alternative energy projects

PSU miner Coal India (CIL) has added two more 100% subsidiary companies to its fold — CIL Navikarniya Urja and CIL Solar PV — to pursue its clean energy initiatives. It has also signed a power purchase agreement (PPA) with Gujarat Urja Vikas Nigam (GUVNL) for sale of solar power from its upcoming 100 MW solar power plant in Gujarat. The new subsidiaries, both West Bengal-based, will function as special purpose vehicles to carry out the coal miner’s green ventures, with the first project being the solar power plant won in the GUVNL-conducted reverse auction. This takes CIL’s total number of subsidiaries to 10, at a time when the government is reportedly planning to spin off CIL subsidiaries into independent coal producing companies. CIL CMD Pramod Agarwal told FE, however, that the company does not have any information about the government’s plans. A CIL executive said the PPA is for a tenure of 25 years with a stipulation that the power generated has to be supplied to GUVNL within 18 months from the date of signing the deal. The PPA was signed.

Coal India signs first 100 MW Solar power purchase agreement

In its maiden venture into solar power, stateowned miner Coal India Ltd (CIL) announced it had signed a first-of-its-kind power purchase agreement for the sale of 100 Megawatt (MW) solar power with Gujarat Urja Vikas Nigam (GUVNL). The company had won a 100 MW solar power project in March in a reverse auction conducted by GUVNL. The tenure of the agreement period is for 25 years. CIL said it is serious in its intent to pursue solar power as an alternative green energy source and for that it has rolled out a plan for 3,000 MW of solar power generation by 2024. The firm plans to invest around Rs 13,500 crore in solar power projects through company’s internal resources, Special Purpose Vehicles (SPV) and bank loans. “Solar will replace coal as a key energy provider in future and we are laying the groundwork to remain relevant in the country’s energy sector. We plan to venture into solar power generation in a big way,” a senior executive of CIL said. The miner secured the project work with a stipulation that it enters into a PPA for the establishment of a solar power project and supply the power generated to GUVNL within 18 months from the date of inking the PPA.

Solar industry seeks four-month extension for all ongoing projects

The solar industry is seeking an extension of four months on all ongoing projects from the government owing to further disruptions in labour and supply chain due to the resurgence of Covid-19 in many parts of the country. "Owing to the continued rise in COVID-19 cases and a re-surge in many parts of the country, solar power projects continue to face implementation issues due to the absence of Government officials, lockdowns, slow processes due to understaffed office being overly busy and preoccupied with pending works," said a statement by the National Solar Energy Federation of India (NSEFI), Without an extension, some projects might lead to cancellations, the solar body said. "[Non-extension] will lead to heavy liquidated damages to be paid by the developer on account of delayed project completion, or non-release of funds by financial institutions in absence of Financial Closure(FC) leading to extreme financial losses even for established players," the letter added. Projects in states such as Rajasthan, Maharashtra, and Madhya Pradesh have seen complete or partial lockdowns, disrupting the ongoing con-

struction. To help developers deal with the delays due to lockdown last year, the Ministry of New and Renewable Energy had granted a blanket extension of five months to all ongoing projects last August.

CSC, Tata Power to set up 10,000 solar micro grids in rural areas

The government's e-governance services arm CSC announced a collaboration with Tata Power to set up solar-powered micro grids and water pumps in rural areas across the country. To begin with, Tata Power has proposed to set up 10,000 micro grids to support rural consumers through Common Service Centres (CSCs). CSC e-Governance Services India Managing Director Dinesh Tyagi said the collaboration will amplify the government's ongoing campaign to provide clean and sustainable energy to households and businesses in rural areas. "This partnership will increase energy access and provide an economic opportunity to the company by providing off-grid or microgrid power. This will help rural customers move away from burning relatively expensive fuels such as kerosene and can provide basic energy services and meet economic needs," Tyagi said in a statement. Under the partnership, over 3.75 lakh CSCs will be involved in supplying solar water pumps to farmers and help in setting up micro grids in residential and commercial establishments in rural areas. The partnership is initially expected to create employment to a minimum two persons in each panchayat where microgrid are proposed to be installed, thereby leading to generation of 20,000 jobs for rural youth. CSC CEO Sanjay Kumar Rakesh said the association with Tata Power will help it reach out to farmers and rural enterprises with clean energy solutions and will not only create new employment opportunities for Village Level Entrepreneurs (VLEs) but also offer Tata Power a grasp over the potential rural market. The micro grids will be supported by CSC VLEs at the ground level. VLEs will help in providing connection to rural citizens, including MSME units for commercial purposes. The power available through these units would be affordable, qualitatively better, decentralized and serviced by a local entrepreneur, as per the statement.

Green energy deals deferred amid 2nd wave

With India facing a very severe covid-19 second wave, and states imposing lockdowns and travel restrictions, several green energy deals have been deferred, said two people aware of the development, seeking anonymity. With due diligence necessitating travel to remote locations where the solar and wind farms are located, several sale processes have been delayed, given the difficulties involved in arranging logistics. There is also a growing clamour from a few countries to impose travel bans to India due to the spike in covid-19 cases. This assumes significance, given that there is a large global investor interest in India’s green economy. “There are many sales processes for which the mandate has been given. However, there is a rethink happening regarding the timing of starting them, given the associated problems with the pandemic that hinders travel and necessary due diligence exercise," said one of the two people cited above. “We plan to start a sale process but are postponing it given that the investors or their advisors won’t be able to travel in the present circumstances to our sites that are located in remote locations," said the second person, overseeing the sale of large solar assets. While there is a growing interest in India’s green economy, there are concerns over inability of projects meeting commissioning deadlines, which will result in hefty penalties for developers. Considering the growing concerns in the wake of the pandemic, solar industry lobby group Solar Power Developers Association (SPDA) pitched for an additional three-month extension in project commissioning dates to the ministry of new and renewable energy. This is in addition to the five months extension already granted by the ministry. Power purchase agreements signed by developers specify strict commissioning deadlines and a failure to meet them can result in fines and encashment of their bank guarantees.