Power

THERMAL

No Need To Panic: India Has Coal Stocks For Over 30 Days, Says Report

India has enough coal stocks to meet more than 30 days of demands and there is no need to panic, Government sources said. Sources said 72.5 million tonnes (mt) of coal stocks are lying with Coal India Ltd. On average, power plants in India is having coal stock of 22 mt and on an average daily 2.1 mt coal is replaced with plants. So no shortage of coal will arise in the country. Energy demand rose due to early summer and the recovery in the economy. Coal production has increased 20-22 per cent in the month of April itself. The Ministry of Railways also increased the availability of rakes by 20 per cent. Earlier All India Power Engineers Fedration has said that Thermal Power plants across the country are grappling with coal shortages, indicating a looming power crisis in the country. Shailendra Dubey, Chairman of AIPEF said that as per Central Electricity Authority's latest daily coal report, the coal stock at 81 out of a total of 150 thermal power stations using domestic coal is critical as per guidelines. The condition of the private sector thermal plants is equally bad as the coal stock of 28 out of 54 plants is in a critical stage. Andhra Pradesh, Tamil Nadu, Telangana, Madhya Pradesh, Maharashtra, Gujarat, Jharkhand and Chhattisgarh are the other states facing a coal crisis. The lack of railway rakes is also adding to the crisis. Presently, only 412 rakes are available as against the daily requirement of 453 rakes.

Govt working on electricity mission to cut oil import dependence

The government is planning a mission to increase electricity penetration from 17 % to 27% in the next 10 years to reduce oil usage and cut dependence on imported crude. The government is identifying areas with low to medium heating requirements where such a shift is possible. Activities in domestic and commercial consumer sectors such as cooking and transportation, and solarising agricultural pumps are areas where the maximum focus is expected. The electrification mission targets the maximum possible shift to electricity use electrification mission targets the maximum possible shift to electricity use from diesel, petrol and LPG consumption, a senior government official told ET. Increasing renewable energy capacity can ensure decarbonisation of the electricity sector, he added. The target is in the line with the transition goals of some of the developed nations. The EU, for instance, has made a significant transition with 24% electrification of its energy needs and has an ambitious 60% electrification target by 2050.

Demand soaring: ‘Tolling’ on the table as imported coal prices heat up

The Centre may soon ask states to use tolling to allow other thermal power plants to utilise their coal linkages and transmit power to reduce the need to transport coal, as per a senior government official. In a repeat of the post-monsoon shortage seen last October, high global prices have led to greater demand of domestic coal for power supply from thermal stations. Rising demand for power due to the onset of the summer season as well as the post-Covid economic recovery is also putting pressure on thermal plants. This has led to supply concerns. States, including Andhra Pradesh, Madhya Pradesh, Telangana, Punjab and Bihar, have already faced blackouts as a result of the crunch. 72 plants that utilise domestic coal had 22.7 million tonnes of coal, or 37 per cent of normative stock levels, with 72 plants classified as having critical levels of coal inventory. Union Power Secretary Alok Kumar said Power houses can give coal to some other plant through competitive bidding” where power can be generated and transmitted to the state with the original coal linkage. Kumar added there was no shortage of domestic coal but that logistics for coal delivery were designed for “a certain amount of imported coal”.

Coal supply to power plants rises 25% in FY22

Coal supply to electricity generating plants increased by 24.5 per cent to 677.67 million tonnes in FY22 compared to that of the preceding fiscal, the government data said. Despite increased supplies, there were reports of fuel shortage at various thermal power units due to soaring energy demand The data, however, showed that the supply of coal to power utilities stood at 544.07 MT in FY21, which was less than 567.25 MT recorded in FY20. "The power utilities despatch has grown by 19.47 per cent to 677.67 MT during FY22 as compared to 567.25 MT in FY20. Fall in import prices have been observed since the end of October 2021, however, import prices are still at high level to discourage coal import," it said. The coal dispatch to the power sector increased to 65.36 MT last month from 57.97 MT during the same period in FY21. The overall dispatch of coal also rose to 818.14 MT in FY22 from 691.39 MT in FY21.

Finance Ministry grants additional Rs. 28,204 Cr. for undertaking power sector reforms to 10 States

The Department of Expenditure, Ministry of Finance, has granted additional borrowing permission of Rs. 28,204 crore to 10 States for undertaking the stipulated reforms in the power sector in 2021-22. States include Andhra Pradesh, Assam, Himachal Pradesh, Manipur, Meghalaya, Odisha, Rajasthan, Sikkim, Tamil Nadu, and Uttar Pradesh. The highest amount granted is Rs. 7,054 crores to Tamil Nadu. Ministry of Finance, based on the recommendations of the Fifteenth Finance Commission, had decided to grant additional borrowing space of up to 0.5 percent of the Gross State Domestic Product (GSDP) to the States every year for a four year period from 2021-to 22 to 2024-25 based on reforms undertaken by the States in the power sector. This was announced by the Finance Minister in the Budget speech of 2021-22. The objectives of granting financial incentives as additional borrowing permissions for taking up reforms in the power sector are to improve the operational and economic efficiency of the sector and promote a sustained increase in paid electricity consumption.

The power ministry has allowed IPPs to import coal to get over possible coal shortages

The power ministry has allowed independent power producers (IPPs) burning imported coal to pass on the higher fuel costs till December with a view to restarting stalled capacity as domestic coal-based generation stations across the country struggle to cope with rising demand because of low fuel inventories, sources said. The decision, taken at a meeting last week to take stock of the power situation, is expected to switch on 7,980MW of imported coal-based generation capacity of Tata Power, Adani Power, Essar Power, ILF&S Tamil Nadu, Coastal Energen, Udupi Power and GSECL Sika Ltd. Most of the capacity was shut primarily after consumer states refused to pay for the rise in global coal prices. The imported coal cost will be benchmarked to HBA (Harba Batubara Acuan) Index for Indonesian coal and the states will be free to exit the pass-through arrangement after December 31. The index has shot up more than 30% after the Russia-Ukraine conflict. States that fail to take steps to get the stalled imported coal-based capacity up and running will face reduction in domestic coal supply after two weeks.

IEX's trade volume jumps 38% in fiscal 2021-22

Indian Energy Exchange (IEX) clocked a 38 per cent growth in trade volume at 1,02,035 million units in financial year 2021-22. In the last fiscal, the total market volume stood at 73,941 MUs (Million Units). It achieved a volume of 9,605 MUs in March. The volume comprised 8,702 MUs in the conventional power market, 392 MUs in the green power market and 511 MUs (5.11 lakh certificates) in the REC market, registering 16 per cent Y-o-Y growth across all the segments. The Day-Ahead Market volume at 5,858 MUs recorded a 4.4 per cent month-on-month growth in March. The average market clearing price in March at Rs 8.23 per unit was higher by 85 per cent on a monthly basis and 102 per cent on a YoY basis. The price increase was mainly on account of early onset of the summer season leading to increased demand for power across all the states and low generation from the imported coal and gas-based generators due to record high imported coal and gas prices, the statement said.

.SCCL Board approves DPR of

800 MW thermal unit in STPP

The Board of Directors of Singareni Collieries Company Ltd (SCCL) has approved the detailed project report (DPR) of the 800 megawatt super critical thermal power generation unit planned to be established by the company on the prem-

ises of 2×600 MW Singareni Thermal Power Plant in Mancherial district. Approval for the DPR of 800 MW unit of STPP was given by the 561 st Board of Directors meeting held here. The unit is being planned to be established on the premises of 1,200 MW existing thermal power project at Pegadapalli in Jaipur mandal with estimated cost of 6,790 crore. The board has also also approved the local reservation in the recruitment of SCCL in tune with the Presidential Order being implemented by the State Government to ensure local people get maximum employment. As per the revised reservation to the locals of four erstwhile districts – Adilabad, Khammam, Karimnagar and Warangal – it would go up to 95% for both the officers and workers (others) categories against the existing quota of 60% and 80%, respectively.

Discoms' outstanding dues to gencos rise 17.3 pc to Rs 1,23,244 cr in April

Total outstanding dues owed by electricity distribution companies (discoms) to power producers increased by 17.3 per cent year-on-year to Rs 1,23,244 crore in April 2022, as per official data. Discoms owed a total of Rs 1,05,029 crore to power generation firms in April 2021, according to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators). On a sequential basis too, total dues in April 2022 increased from Rs 1,17,390 crore in March 2022. The PRAAPTI portal was launched in May 2018 to bring in transparency in power purchase transactions between generators and discoms. In April 2022, the total overdue amount, which was not cleared even after 45 days of grace period offered by generators, stood at Rs 1,04,885 crore as against Rs 84,376 crore in the same month a year ago. The overdue amount stood at Rs 1,03,331 crore in March 2022. Power producers give 45 days to discoms to pay bills for electricity supply. After that, outstanding dues become overdue and generators charge penal interest on that in most cases.

NITI Aayog to release State Energy & Climate Index on April 11

The NITI Aayog will release on April 11 a 'State Energy and Climate Index' that will be useful for the states and UTs to plan better policies and efficiently manage their energy resources in view of the changing climate. "The index can be used by the states and UTs to benchmark their performance against their peers, analyze the potential challenges to develop better policy mechanisms, and efficiently manage their energy resources," said a NITI Aayog official. The State Energy and Climate Index (SECI) Round-1 aims to rank states and UTs on six parameters: (1) Discoms' Performance (2) Access, Affordability and Reliability of Energy (3) Clean Energy Initiatives (4) Energy Efficiency (5) Environmental Sustainability; and (6) New Initiatives. These parameters include a total of 27 indicators. Based on the outcome of SECI Round-1 scores, states and union territories have been categorized into three groups: 'Front Runners', 'Achievers', and 'Aspirants'.

The State Energy and Climate Index Round 1 will be released in the presence of secretaries of various government departments and stakeholders from the energy sector that would be invited to the release event here.

RENEWABLES

IIT Guwahati, NTPC develop energy-efficient tech for CO2 capture from power plants

The Indian Institute of Technology Guwahati has partnered with NTPC Limited to design and develop a highly energy-efficient plant to capture carbon di-oxide from power plants. The premier institute claimed it has the potential to combat global climate change and will help natural gas and petroleum refineries among others. According to officials, the technology developed by IIT Guwahati researchers works on flue gas -- a mixture of gases produced by the burning of fuel or other materials in power stations -- using a newly-activated amine solvent (IITGS), consumes up to 11 per cent less energy compared to commercial activated MDEA (monoethanolamine) solvent and up to 31 per cent less energy compared to the benchmark MEA (monoethanolamine) solvent. After successful completion of test studies, the pilot plant has been shifted to NTPC's (National Thermal Power Corporation Limited) NETRA facility. IIT Guwahati team and NTPC Limited are in the process of patenting the technology. This development has the potential impact to combat global climate change. The next phase of the study will involve the testing of pilot-plant using industrial flue gas, Bishnupada Mandal, Department of Chemical Engineering, IIT Guwahati, said.

EVs present a Rs 3 lakh crore opportunity for India: Crisil

Electric vehicles (EVs) present an opportunity of almost Rs 3 lakh crore for various stakeholders in India in the five years through fiscal 2026, Crisil said. The opportunity includes potential revenue of about Rs 1.5 lakh crore across vehicle segments for original equipment manufacturers (OEMs) as well as component manufacturers and Rs 90,000 crore in the form of disbursements for vehicle financiers, with shared mobility and insurance accounting for the balance, a study by the ratings firm showed. EV adoption continues to surge as more people shift from internal combustion engine (ICE) vehicles. Data on the Vahan portal shows the share of electric three-wheelers (3Ws) increased to almost 5% of 3Ws registered in fiscal 2022 from less than 1% in fiscal 2018. For electric two-wheelers (2Ws) and buses, the percentages rose to almost 2% and 4%, respectively. The shift is not limited to large cities. Smaller towns are also entering the fray, driven by the government’s fiscal and non-fiscal measures. As per Vahan statistics, the contribution of the top 10 districts in nationwide sales of electric cars and 3Ws dropped from 55-60% in fiscal 2021 to 25-30% in fiscal 2022. For 2Ws, the percentage declined from 40-45% to 15-20%.

Prices of EVs to be equal of petrol cars in 2 years, says Nitin Gadkari

Prices of all electric vehicles (EVs) will be equal to the cost of petrol vehicles in the country within two years, Road Transport and Highways

Minister Nitin Gadkari said in Lok Sabha. Gadkari also said MPs can buy electric vehicles once a charging station is installed in Parliament premises. "I will assure all the honourable members that within two years the cost of electric twowheelers, electric three-wheelers and electric four-wheelers will be equivalent to the cost of electric two-wheelers, electric three-wheelers and electric four-wheelers will be equivalent to the cost of petrol vehicles and the country will change," he said. The minister said there is good development concerning charging stations and the Ministry of Power has issued charging infrastructure for electric vehicles. There are revised consolidated guidelines and standards to accelerate the e-mobility transition in the country, he said.

Centre issues largest tender on battery storage for solar power

The Solar Energy Corporation of India Limited (SECI), a public sector body under the Ministry of New & Renewable Energy, has issued the tender for setting up 500 MW/1000–MWh Standalone Battery Energy Storage Systems (BESS). A first–of–its–kind tender in the country, it will provide power distribution companies with storage facilities to be used on an “on–demand” basis. The tender marks the first tranche of the government’s immediate target of setting up 4000 MWh of Battery Storage Capacity to inject more renewable energy in the national grid. The Central Electricity Authority (CEA)/MoP has recommended that a battery energy storage capacity of 27,000 MW/108,000 MWh (4–hour storage) ought to be part of the installed capacity in 2029–30. A BESS system is made up of batteries that can be charged by solar power during the day and then making that power available in the evening or night. As evening power demand is fulfilled by coal plants, having a battery system integrated with a solar power plant will mean that the dependency on coal can be reduced and more renewable energy can be supplied to homes and establishments. India, as part of Prime Minister Narendra Modi’s commitments at the United Nations Conference of Parties in Glasgow last year, has committed a target of 500 GW (gigawatts) of renewable energy (RE) capacity by 2030. This hinges on solar–BESS.

Tata Power gains after subsidiary commissions 300 MW solar plant

Tata Power Company rose 2.51% to Rs 251.55 after the company announced that its wholly owned subsidiary, Tata Power Renewables Energy (TPREL) has commissioned a 300 megawatt project in Dholera, Gujarat. The project will generate 774 million units (MU) annually along with this it will reduce approximately 704,340 metric ton per year of carbon emission. Speaking about the commissioning of the project, Dr. Praveer Sinha, CEO & MD of Tata Power said, Commissioning of India's largest single-axis solar tracker system of 300 MW Solar plant at Dholera in Gujarat within the set timelines is a proud moment for Tata Power. With this addition, the renewables capacity in operation for Tata Power now stands at 3,400 MW with 2,468 MW of solar and 932 MW of wind. Tata Power's total renewable capacity is 5,020 MW including 1,620 MW of renewable projects under various stages of implementation.

Rajasthan again tops in green energy capacity among states

As per the latest report by the Union ministry of new and renewable energy, Rajasthan has topped in the green energy capacity combining solar, wind, and smaller bio-power sector.

By the end of March 31 Rajasthan will have a total installed renewable energy capacity of 17,040 MW followed by Tamil Nadu (16,099MW), Karnataka (15,904 MW), Gujarat (16,587 MW) and Maharashtra (10,657 MW). While it has lagged states like Tamil Nadu, Gujarat, Karnataka, Maharashtra in wind power coming at fifth position in the country with 4,326 MW, its leadership position in solar energy has taken its overall renewable contribution to top position in the country.

JSW Group to develop 900 MW hydel, rolling mill projects in Bengal

The JSW Group has expressed interest to develop a 900 MW pumped storage hydel power project and a state of the art rolling shop for steel in West Bengal, company chairman Sajjan Jindal said. He announced the projects while addressing the inaugural session of the Bengal Global Business Summit. The Jindal Group had shown interest to set up a pumped storage energy project in West Bengal in 2019. The West Bengal government has decided to develop the third pumped storage power plant at Bandhunala project in Purulia in PPP model.

SJVN achieves financial closure for 66-MW hydro power project in Himachal

State-owned SJVN said the Himachal Pradesh State Co-Operative Bank will provide a loan of nearly Rs 500 crore for setting up a 66 MW hydro electric project in Himachal Pradesh. In a regulatory filing, SJVN said it "has achieved financial closure by signing of loan agreement amounting to Rs 494 crore with Himachal Pradesh State Co-Operative Bank for development of 66 MW Dhaulasidh REP (DSHEP) coming under Hamirpur and Kangra District of Himachal Pradesh." The total project cost of Rs 688 crore is to be financed through a debt equity ratio of 80:20, it added. The project has already commenced construction activities since May 2021 and will generate 304 million units on completion at a tariff of Rs 4.46/kwh (kilowatt hour).