POWER THERMAL

Govt prepared to meet summer demand with assured and affordable electricity: Power Minister R K Singh

The government has put in place measures for meeting the country’s power demand, which in FY23 grew at over 10 per cent Y-o-Y, Power and New & Renewable Energy Minister RK Singh said. Singh emphasised that his confidence comes from the reforms unleashed by the government which have strengthened the financial and operational capabilities of the sector.

In FY24, power demand is likely to hit 229-230 gigawatts (GW). Though summers have been mild, barring a few days and not touching 40 degrees, it is expected to go up and demand to be in range of 225 GW. It’s the government’s duty to provide affordable and assured power supply.

Talking about the dues of discoms, he said the Centre has made energy accounting compulsory and laid norms for corporate governance and also analyse whether states are following the prescribed trajectory. The discoms not following rules will not get loans from PFC and REC nor get assistance from any central scheme, or the extra 0.5 per cent borrowing space. These steps are that tariffs have to be up to date and cost reflective. Secondly there are no regulatory assets and subsidy payments are kept up-todate.

Pooling of electricity from old plants to go live across India from July

The Ministry of Power has issued an order instructing all states, distribution companies (discoms), and generating companies (gencos) to implement a new scheme for pooling electricity from old power plants owned by the Centre, which are also known as Central Generating Stations. This scheme is set to begin on July 1 of this year. At present, the annual electricity demand and the peak demand in the country is around 1,400 billion units (BUs) and 215 GW, respectively, and the peak demand is growing at an annual rate of around 6 percent.

To meet India’s increasing electricity demand, the government is trying to first unlock its old and underutilised energy resources instead of building new ones. This is because setting up a new power generating station takes much longer and is more capital-intensive. At least 14 such power plants with a total capacity of 15,386 megawatts (MW) are likely to be tapped once the scheme comes into force.

As per the government's April 20 order, the beneficiaries who participate in the scheme will have to enter a PPA of minimum of 5 years. Discoms not finding value in pooling will be able to opt-out from the pool after 5 years..

India explores power links with Saudi, UAE

India is considering linking its power grid to those of Saudi Arabia and the United Arab Emirates through undersea cables, with India’s power ministry circulating Cabinet notes for interministerial consultation to initiate the process to expand access to reliable power and enhance the country’s energy security.

Further, India is also in talks with Singapore to link the city state with its power grid via an undersea cable link, Raj Kumar Singh, Union minister for power and new and renewable energy, said in an interview.

Once approved by the Union cabinet, bilateral agreements will be signed with Saudi Arabia and the UAE for the mega projects, which will be bid out after detailed project reports are created, Singh said, adding that the countries will assess the viability of each project before proceeding.

Rain cools down demand for power; coal stocks higher

The recent wet spells and comparatively cooler patches in April in north India, led to lower-thanexpected power demand on average. This lowered the fuel depletion rate at coal-based power plants, bringing much-needed relief to the stressed supply chain. Coal stock with power plants at the beginning of April was 36.9 million metric tonnes, including import, which fell to 35.8 million tonnes as on April 22. The depletion would have been higher if the weather hadn't turned cooler, said two senior government officials.

Temperature is expected to remain moderate for the rest of the month this year. Peak demand touched a record of 215.9 GW on April 17, coal consumption shot up and stock at power plants started reducing compared with an increase in the first week of April. It was anticipated that the demand would continue to increase.

The power ministry had earlier said it expects a peak demand of 231 GW in April. However, with the weather getting cooler, power demand dropped with peak demand at 184 GW as of April 23. The price at the day-ahead market of Indian Energy Exchange was at 5 per unit compared with 7.1 per unit as of April 21. Prices hovered between 3.5 and 4.7 a unit in the first seven days of the month due to favourable weather conditions.

Power plants use rail-sea-rail route to source coal

Power producers in western and northern states are using rail-sea-rail (RSR) route to get their coal supplies from eastern India to avoid rail congestion and also to reduce coal imports, an official in the coal ministry said. The three ministries of coal, power and railways are jointly guiding the gencos to develop their capacity of rail-sea-rail movement so that coal from relatively congested areas in Chhattisgarh and Odisha can be made available.

While the coastal route is expensive than the railways, coal procured through RSR still works out much cheaper than the imported coal. Typically, the cost of coal including transportation from Odisha to Gujarat is around 4,700 per tonne, coal via RSR is7,000 per tonne and imported coal of same grade is about Rs 12,000 a tonne, the officer said. As a result it will be more beneficial for consumers during peak demand seasons.

NTPC has started transporting coal from Paradip to two of its thermal power plants at Jhajjar in Haryana and Dadri in Uttar Pradesh. Bids for power plants in Kudgi in Karnataka and Unchahar in Uttar Pradesh are being finalised. Even Rajasthan, Gujarat and Maharashtra have also undertaken bids and are in different stages of approval. Whenever needed this additional capacity from MCL and South Eastern Coalfields (SECL) can be put to use, the official has explained.

Power Min asks states to withdraw any tax on generation of electricity, calls it illegal

Ministry of Power has asked states not to levy or impose tax or duty on generation of electricity especially from hydro projects for it being illegal and also exhorted them to withdraw any such levies promptly. "It has come to the notice of Government of lndia (Gol) that some state governments have imposed taxes / duties on generation of electricity. This is illegal and unconstitutional," said a power ministry communique to chief secretaries of all states and Union Territories.

The ministry said any tax / duty on generation of electricity, which encompasses all types of generation viz. thermal, hydro, wind, solar, nuclear, etc. is illegal and unconstitutional. In the light of constitutional provisions, the ministry stated that "no taxes or duties may be levied by any state - under any guise on generation of electricity and if any taxes or duties have been so levied, it may be promptly withdrawn."

Entry-53 of List-II (State List) authorizes states to put taxes on consumption or sale of electricity in its jurisdiction. This does not include the power to impose any tax or duty on the generation of electricity. This is because electricity generated within the territory of one state may be consumed in other states and no state has the power to levy taxes or duties on residents of other states, the ministry pointed out.

Ministry of Power Introduces Revised Day-Ahead National Merit Order Dispatch Mechanism to Reduce Electricity Prices

The Ministry of Power has finalized a revised structure of Day-Ahead National level Merit Order Despatch Mechanism with a view to lower the overall cost of electricity generation, which will translate into lower electricity prices for consumers. As per the revised mechanism, the Merit Order for cheapest generating resources across the country to meet the system demand, would be, finalized a day in advance as against 1.5 hours in the existing system. This will result in better planning for generating units and cost optimization.

The existing mechanism of merit order dispatch at real time was made operational in April 2019. This optimized the total variable cost of genera- tion pan-India, while meeting technical and grid security constraints. The existing mechanism resulted in reduction of variable cost on panIndia basis to the tune of 2300 Crore and these benefits were being shared with generators and their beneficiaries ultimately reducing the cost of electricity to consumers.

The gains out of the proposed Day-Ahead National Merit Order Dispatch Mechanism would be shared between generating stations and their consumers. This will result in increased annual savings for the electricity consumers. The Day-Ahead National Merit Order Dispatch Mechanism will be implemented by CERC through necessary regulatory process and it will be operated by GRID –INDIA at national level.

Power Ministry approves Rs 5200 Cr for J&K under RDSS to improve infra

The Union Power Ministry has sanctioned Rs 5200 crore for the Union Territory under Revamped Distribution Sector Scheme (RDSS), almost equally distributed between Jammu and Kashmir divisions, to improve power infrastructure to ensure that distribution of power doesn’t suffer during summer in Jammu and winter in the Valley. Official sources told the Excelsior that the RDSS will be valid for a period of three years and Jammu and Kashmir has been treated as Special Category State by the Union Power Ministry while granting a hefty amount of Rs 5200 crore.

“The amount will be specifically used for strengthening power infrastructure in Jammu and Kashmir including 33KV and 11 KV stations/HT/LTs and other equipment’s which form part of infrastructure,” official sources told the Excelsior. They said laying underground cabling has also been proposed in the RDSS but present focus of the Department is to strengthen existing infrastructure to avoid losses and ensure regular supply to the consumers.

Strengthening of infrastructure will reduce power losses, they said, adding it has been observed that infrastructure suffers mostly during summer in Jammu and winter in Kashmir when demand for electricity supply is at its peak in the two divisions.

Renewables

India to triple renewables auctions as 2030 green target looms

India will more than triple the capacity of auctions used to allocate renewable energy projects as the nation seeks more progress toward a 2030 clean power target. A new federal government timeline outlines plans to strike agreements on installations of a total of 50 gigawatts of solar and wind projects during the year through March 2024. That compares with an average of 15 gigawatts auctioned annually in the last five fiscal years, according to BloombergNEF. The nation is accelerating project installations to hit a goal to have 500 gigawatts of clean energy generation capacity in 2030, which will also include hydro and nuclear plants.

Delivering more renewables projects will also require sufficient land to locate the installations and long-term buyers for electricity generated, said RohitGadre, a BNEF analyst. Those factors are “critical to the success of the plan, failing which the tenders will likely end up being undersubscribed,” Gadre said. Rising energy demand is creating an incentive for some states to consider new long-term renewable power deals to supplement existing coal-fired capacity, while there’s also growing interest in contracts from the commercial and industrial sector.

According to the government’s calendar, India plans to auction 15 gigawatts of projects in each of the first two quarters of the fiscal year that began this month, with about 10 gigawatts offered in both of the subsequent quarters. State-run power companies Solar Energy Corp. of India Ltd., NTPC Ltd., NHPC Ltd. and SJVN Ltd. will be conducting the auctions for the government. The schedule “will give developers visibility,” said SubrahmanyamPulipaka, chief executive officer of the National Solar Energy Federation of India, an industry group. “There’s bound to be greater traction.”

SECI records over 59% jump in RE power trading volume during FY 2022-23

Solar Energy Corporation of India Limited (SECI) has traded over 35 Billion Units, a jump of over 59% in its Renewable Energy power trading volume during FY 2022-23 over the previous year. Likewise, the revenue from power trading has crossed Rs. 10,000 Crore mark for the first time since its inception.

India is witnessing an energy transition towards sustainable sources at an unprecedented pace and SECI is striving hard to have the maximum contribution in nation’s journey towards 500 GW of non-fossil fuel by 2030, as announced by Hon’ble Prime Minister. Entire team of employees and management of SECI is tirelessly working towards this goal.

Solar Energy Corporation of India Limited (SECI) is a Miniratna Category-I Central Public Sector Enterprise (CPSE) incorporated in the year 2011, SECI is the primary implementing agency of the Ministry of New and Renewable Energy, Govt. of India for Renewable Energy schemes/projects towards fulfilment of India's international commitments.

Till date, SECI has awarded Renewable Energy (RE) project capacities of over 56 GW. SECI is also active in setting up of projects through its own investments as well as for other public sector entitites as Project Management Consultant (PMC). SECI enjoys highest credit rating of AAA by ICRA

MP’s Sanchi set to become first solar city of India next month

Sanchi, a world heritage site located in the Raisen district of Madhya Pradesh near Bhopal is all set to become the first solar city of India in May.

Madhya Pradesh Chief Minister Shivraj Singh Chouhan reviewed the ongoing works in the Sanchi town to transform it into a solar city. He said the use of solar energy is being continuously promoted in MP and many solar power projects are operational across the state.

At a review meeting in Bhopal yesterday, the chief minister was informed that the completion of various works to transform Sanchi into a solar city was almost complete and by next month Sanchi, a world heritage site of Buddhist Stupas, would be known as the country’s first solar city.

Goa’s solar portal one greener step ahead: PM Narendra Modi

PM NarendraModi on Sunday lauded Goa for launching the solar rooftop online portal goasolar.in, developed by the Goa Energy Development Agency (GEDA), in collaboration with the department of new and renewable energy and the electricity department. “Good step towards harnessing solar energy and furthering sustainable development,” said the PM, sharing Goa chief minister PramodSawant’s tweet announcing the launch of the portal.

While announcing the new initiative, Sawant tweeted, “The entire process of application, processing of application, installation of solar project, and the release of subsidy will be done online through the portal”. Any consumers who want to avail a rooftop solar connection for their premises can now apply online through this new portal, by simply entering information available in their monthly electricity bill. The portal provides the consumer with the quantum of solar power that can be generated within the premises, along with the subsidy.

“I congratulate ‘Aha Solar’ of Ahmedabad, Gujarat, for the development and training of GEDA personnel to use the portal. I am sure the portal will be useful to people and organisations who shall adopt rooftop solar power generation.

3,110 MW hydro power units to go on stream this fiscal

India will add 3,110 MW hydro power generation capacity built at an investment of about Rs 45,000 crore this fiscal, expanding the current installed capacity of 46,850 MW by 6.6%, an official said. These hydropower projects are in Uttarakhand, Himachal Pradesh, Arunachal Pradesh and Kerala. Uttarakhand has two central sector projects – Tehri pumped storage project (PSS) of 1,000 MW and Naitwar Mori of 60 MW. Subansiri Lower 2,000 MW project in Arunachal Pradesh, of which 1,000 MW will be commissioned this fiscal, is the oldest project kicking off in FY24. It was started about decades ago and faced issues related to displacement.

Himachal Pradesh is likely to see one central project (Parbatti-II of 800 MW) and one private project (Tidong-I of 150 MW) coming up this year. Kerala has two state sector projects – Pallivasal (60 MW) and Thottiyar (40 MW). Hydropower projects generally take 6-8 years for completion but usually get delayed due to agitations related to land acquisition. But once constructed, it is one of the cheapest source of green energy and is not intermittent.

The country’s biggest hydropower station of 600 MW (Kameng in Arunachal Pradesh) was inaugurated by Prime Minister NarendraModi last November. India stands fourth globally in renewable energy, including large hydro.

India looking to merge hydro power units to create single company –Minister

The Indian government is considering selling state-owned NTPC Ltd's two hydro power firms to NHPC Ltd to create a single hydro power company that would improve efficiency and cut costs, power minister R K Singh told Reuters. One large hydro power company would help meet high demand at night when solar projects do not run, he said. Solar power projects meet nearly a-fifth of India's peak-hour energy demand during the day.

NTPC, the country's largest power producer, acquired the two hydro companies -- THDC India Ltd (THDCIL) and NEEPCO -- three years ago for about $1.34 billion under a consolidation plan by the Indian government. The power ministry's proposal to create a single company is aimed at better management and expertise, besides reducing costs and managing related challenges. Hydropower plants in India take decades to come on stream as they face opposition from environment and religious groups.

Hydro power's share of India's energy has fallen to 11% from 49% 15 years ago due in part to protests by different groups and land clearances. The combined entity after the merger of THDCIL and NEEPCO with NHPC would have 20 GW of hydro assets. NHPC, which is also stateowned, currently has 12 GW of hydro assets. Solar and wind power plants are intermittent and need support from thermal, nuclear or hydropower plants.

Gas-based power plants ready to meet peak demand

Gas-based power plants are ready to meet any power deficit during the peak demand period this summer, and availability of natural gas is being ensured by state-owned GAIL India and country’s top gas importer Petronet LNG Ltd. Both GAIL and Petronet have issued several tenders to import liquefied natural gas (LNG) for deliveries in May and June. Sector analysts believe the underutilised gas-based power plants will be used to fill any shortage.

“Idea is to improve the energy generation so as to meet the spike in the energy demand that we are anticipating because of the heat wave… You may see some improvement in capacity utilisation of gas-based power plants. “To meet the peak deficit, respective utilities can tap this (gas) power on high price day ahead basis from the power exchange market,” said GirishkumarKadam, senior vice president and co-group head, ICRA.

India’s electricity demand saw an all-time of 218 GW last week on April 18, of which the power sector could meet record demand of 216 GW, leaving a deficit of 2,021 MW. Last year, the highest demand met was 212 GW on June 10.

EVs account for 4.4% of 2-wheeler registrations, shows VAHAN data

The penetration of electric two-wheelers in the country has hit 4.4 per cent in FY23, a 2.5x jump over the previous year, when it was at 1.74 per cent, thus heralding the inflexion point for a quick takeoff of the segment that EV makers were hoping for. Data from VAHAN, the government’s e-portal for automobile registration and other services, reveals that in FY23 (till March 31), 670,000 electric two-wheelers were registered — an over threefold growth from 220,000 in FY22.

Over 60 per cent of the registrations in March came from Ola Electric, TVS, and Ather Energy. In the four-wheeler market, the penetration of EVs in FY23 has crossed 1 per cent market share for the first time. At present it is at 1.1 per cent, with 39,445 registrations, compared to only 0.61 per cent in FY22 . This segment is dominated by the Tatas, which commands over 79 per cent of the market share. MG Motors comes at a distant second, with 11 per cent share.

Ola Electric, with 22 per cent of the total market (151,294 units) is far ahead of its rivals, with no one even crossing the 100,000 mark in FY23. In FY22, the company was fifth in the pecking order, with a registration share of 6.5 per cent. What’s more, nearly a third of its registrations have taken place in the first three months of 2023. In FY 22 Hero Electric dominated the segment, with a 30 per cent share of the electric two-wheeler market. The two companies have been facing challengers as they are being audited for alleged violations of localisation norms on the basis of which subsidies are given. In fact, the government has suspended subsidies to these two firms.

Statiq wins order from HPCL for 500 EV chargers in 12 states

EV charging network provider Statiq on Monday said that it has won a contract from public sector oil marketing firm HPCL for setting up over 500 EV chargers across 12 states. As per the contract, the firm will install over 500 chargers, for all types of electric vehicles including two and four-wheelers, at HPCL's outlets spread across Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu and West Bengal, the company said in a statement.

Of the total 500 chargers, over 400 chargers will be of 3.3 kw capacity each while a few more than a hundred chargers will be of 7.7 kw capacity each, it stated. "With HPCL undertaking a major and country-wide exercise in terms of setting up EV charging stations at their petrol pumps, we have won this tender and become a part of their EV infrastructure building-up journey," said AmanRehman, head of government relations at Statiq.

Statiq last year had installed nearly 200 chargers some 130 chargers of 3.3 kw and 75 chargers of 7.7 kw capacity at HPCL's outlets in cities such as Gorakhpur, Kanpur, Lucknow, Patna, Agra, Meerut, Dehradun, and Varanasi.