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Power
THERMAL
Electricity consumption in India will double by 2040: Minister Pralhad Joshi
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Union Minister for Parliamentary Affairs Shri Pralhad Joshi pointed out that the International Energy Agency estimated that electricity consumption in India would double by 2040. “While the consumption of electricity is 12,071KW per hour in the United States of America, it is 4,475KW/ hour in China, while the figure is 1,171KW/hr in India. Life without electricity was unimaginable to children and youngsters, and the transformation that its invention had wrought in the world could not be expressed satisfactorily in words,” he said. The Minister rued that more than 18,000 villages in the country were without electricity even 75 years after Independence. “Under the Deendayal Upadhyay Gram Jyoti Yojana, 18,374 villages have been supplied electricity,” he said.
High demand to breathe life into private coal power plants integration
A third of the private sector coal-based generation capacity, estimated at about 25,000MW (megawatt), are expected to get a fresh lease of life in the current financial year as renewable capacity addition proves inadequate to meet the pace of expansion in electricity consumption.
A Crisil Ratings report said the plant load factor, PLF or the run rate, of India's coal-fired power plants will improve by 3 percentage points to a five-year high of 62% in the current fiscal, fuelled by strong demand growth and limited capacity addition in the thermal sector. To put things in perspective, a large number private coal-fired plants have been languishing in the face of rapid expansion in renewable capacity, currently at 1,01,532 MW estimated and availability of more affordable energy on the power exchanges due to lower demand till 2020. The annual coal-based capacity addition at 2% in the past five years against annualised demand growth of 3.4%. The capacity addition is expected to be 3.5% (7,000MW) this fiscal.
Clear your power dues, PM Modi reminds states; here is what they owe
Prime Minister Narendra Modi has urged state governments to pay the money they owe to power distribution companies (discoms) and generating companies (gencos). He added that the outstanding dues that stretch over several months threaten the financial stability of these discoms and gencos. According to the data from the power ministry, the states and the union territories (UTs) together owe over Rs 1 trillion to the gencos as of March 31, 2022. The total money owed to the discoms stands at Rs 1.3 trillion. Maharashtra owes a maximum of Rs 21,500 crore to the gencos. Tamil Nadu follows in second place with Rs 20,990 crore of dues to gencos, while Andhra Pradesh owes the third highest, Rs 10,109 crore. On the other hand, Telangana owes the maximum to the discoms, with Rs 11,935 crore worth of dues. Maharashtra owes the second highest at Rs 9,131 crore, and Andhra Pradesh comes a close third with dues towards discoms at Rs 9,116 crore. The delay in payments causes a shortfall in revenue for the power companies. The money that could have been used in upgrading the infrastructure of the distribution channel to reduce the wastage can then only be used to cover the operational costs. In India, the average transmission losses stand at over 20 per cent compared to 5-8 per cent in developed countries.
State gencos not keen on importing coal for blending purpose
State gencos were not too keen on imports because of the huge differential between domestic and international coal prices. Close to 3.03 million tonnes (mt) of coal imported by State generation companies (gencos) for blending purposes is lying at various ports in India as on August 17. Of this, public sector power utility NTPC alone accounts for nearly 73 per cent of the total stock at close to 2.2 mt. The Power Ministry had earlier directed generating companies to import at least 10 per cent of their total coal requirement for blending purposes in lieu of an anticipated shortfall in domestic supplies amid a sharp surge in demand. However, in early August, the Power Ministry relaxed the order for blending in the wake of improving supplies and left it to the discretion of gencos and independent power producers to import coal as per their requirement and decide on the percentage of blending they would like to do. The recent ban on import of Russian coal into Europe has pushed up thermal coal prices in the international markets. It is believed that some of the metallurgical coal from Australia is also being diverted to thermal coal due to the price economics. There is a huge price differential between domestic and international coal which is discouraging gencos from importing coal. Moreover, production and supplies by Coal India has been pretty robust and this has helped tide over any possible shortfall that could have happened during the peak monsoon months.
Govt allows 10 state discoms to buy and sell electricity on spot market
The power ministry on Saturday allowed three more states – Tamil Nadu, Madhya Pradesh and Rajasthan – to sell and buy electricity at the spot market after they cleared their dues to the power generators. Only three states – Karnataka, Jammu and Kashmir, and Mizoram -- are now barred from trading in the spot electricity market. These three states together have an outstanding of R801 crore. Jammu and Kashmir owes a maximum R 552 crore followed by Karnataka (Rs 223 crore) and Mizoram R26 crore. Power System Operation Corporation (POSOCO), a national grid operator invoking the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022 barred 27 discoms from 12 states and one UT from trading in power exchanges in India on account of non-payment on 18 August 2022. These states included Andhra Pradesh, Tamil Nadu, Telangana, Manipur, Mizoram, Karnataka, Bihar, Rajasthan, Jharkhand, Jammu and Kashmir, Madhya Pradesh, Maharashtra, and Chhattisgarh. Together they owe Rs 5085 crore to the power generators.
Proposed power bill will lead to ethical rivalry: DVC
The Electricity (Amendment) Bill 2022, if passed, will lead to “healthy and ethical competition” in the industry, said DVC chairman Ram Naresh Singh at an MCCI interactive session last week. Under the proposed Electricity (Amendment) Bill 2022, the Central government envisages to bring in the principle of open access by allowing consumers the right to choose their electricity provider, regardless of who controls the physical infrastructure. According to Singh, this would lead to the development of a consumer-driven market. The bill its presence in the T&D (transmission and distribution) infrastructure. The utility, which has so far been focusing on industrial users, is looking to attract residential consumers within its command area moving forward.
Kishtwar in J-K Set To Become Major Power Generation Hub of North India
Jammu and Kashmir’s Kishtwar district is set to become a major power hub in north India, as it will generate nearly 6,000 megawatt of power after the completion of the ongoing power projects, an official spokesman said. He said 1000 megawatt (MW) Pakal Dul Project, 624 MW Kiru Project, 540 MW Kwar Project and 930 MW Kirthai Project are all located in close vicinity of each other, along with 850 MW Ratle Project which has been revived as a joint venture between the Centre and the union territory. Pakal Dul HE Project (1000MW) is under active construction after river diversion was carried out. The project will generate 3230 MWs annually and expected to be completed by July 2025, the spokesman said. He said Kiru HE Project (624 MW) is also under construction. The river diversion was carried out recently and after completion it will generate 2272 MWs annually. The project is expected to be completed by July 2025.
India’s First Geothermal Power Project at 14,000 Feet to Light up Rural Ladakh Soon
Ladakh is all set to get India’s first geothermal power project soon to tap the potential of natural geysers dotting the Puga area, 170 km east of Leh and in Changthang plains. State-run explorer Oil and Natural Gas Corporation (ONGC) has embarked upon a journey to generate electricity on a utility scale by tapping steam gushing from the earth’s bowels at Puga, a remote valley located at an altitude of over 14,000 feet, off the road to Chumar on the de-facto border with China. Puga, and Chumathang area in general, are deemed as the most promising geothermal prospects. ONGC last week started drilling its first well for the project and encountered high-pressure steam at 100 degrees Celsius with a discharge rate of 100 tonne geothermal energy per hour. This has made the crew confident about the project’s viability. In the first phase, the company will drill 1,000-metre-deep wells to run a one-megawatt power plant as a pilot.
REC arm hand over project specific SPV to PowerGrid
REC's wholly owned subsidiary REC Power Development and Consultancy Limited (RECPDCL) handed over the project specific SPV (Special Purpose Vehicle) formed for construction of Transmission Project viz., ‘Neemuch Transmission Limited’ to Power Grid Corporation of India Limited. With the handing over of the above SPV, RECPDCL has thus far successfully handed over cumulatively 40 transmission projects costing around Rs 54,300 crores. The SPV has been handed over by Shri R. Lakshmanan, CEO, RECPDCL & Shri T.S.C. Bosh, ED & Jt. CEO, RECPDCL to Sh. A K Singhal, Executive Director from M/s Power Grid Corporation of India Limited in the presence of other senior officials of RECPDCL, PGCIL & CTUIL. Power Grid Corporation of India Limited emerged as the successful bidder of the Inter-State Transmission Project of the Ministry of Power, Government of India, and RECPDCL as the Bid Process Coordinator.
Sale of Fly Ash matter: NGT directs MoP not to enforce its advisory allowing auction
The National Green Tribunal (NGT) on Saturday directed the Ministry of Power (MoP), the Government of India, not to implement its advisory dated February 22, 2022, directing all the Thermal Power Plants
to provide fly ash to end users through a transparent bidding process. The Tribunal Bench of Justice Arun Kumar Tyagi and Dr Afroz Ahmad in an order passer on August 25, 2022 said that the Power Ministry advisory shall not be enforced and would be kept abeyance till further orders by this Tribunal to the contrary and the interim application is disposed of accordingly. It is said that the MoP advisory dated 22.02.2022 is not only against the environment laws but is also in violation of its full bench order dated 18.01.2022 whereby the full bench of NGT had stayed the earlier advisory of MoP which granted the power to Thermal Power Plants to auction their fly ash. The advisory is also counterproductive in promoting 100 per cent utilization of fly ash. Fly ash is consumed by user segment such as cement, concrete or brick manufacturers. In its reply, the Ministry of Power submitted that over the period of time from 1999 to 2021 in the period of 22 years, fly ash has now become a valuable commodity and it was felt necessary to monetize the sale of fly ash so that the tariff of electricity is kept as low as possible.
Centre issues fresh norms on bidding to procure power from grid-connected RE projects
Power Ministry has announced guidelines for a tariff-based competitive bidding process for procuring power from grid-connected RE power projects. Under the fresh norms, the ministry notified that the bids will be designed in terms of a package with a minimum size being 50 MW. Further, the RE Power Generators are free to operate their plants after the expiry of the PPA period in case the arrangements with the land and infrastructure owning agencies. The PPA period is notified to be not less than 25 years from the scheduled commissioning date. In its Gazette notification, the ministry said, the minimum size of a package should be 50MW, in order to have economies of scale. The bidder has to quote for an entire package. As per the guidelines, the procurer is allowed to invite the bids in (a) Power Capacity (MW) terms or (b) Energy Quantity (kWh or million units i.e. MU) terms. While procuring electricity, the ministry notified, that ‘Tariff as Bidding Parameter’ shall be applicable. Explaining further, the ministry said, the procurer may select either of the following kinds of tariff based Bidding: (a) fixed tariff in rupees per kWh for the term of PPA or (b) escalating tariff in rupees per kWh with the pre-defined quantum of annual escalations fixed in rupees per kWh and number of years from which such fixed escalation will be provided.
RENEWABLES
By 2030, 50% of power capacity will be from non-fossil source, India tells UN
India has submitted its updated Nationally Determined Contribution (NDC) - climate action targets - to the UN climate change body, promising that the country would achieve about 50% cumulative electric power installed capacity from non-fossil fuelbased energy resources by 2030. The updates are aimed at keeping India on track of its long-term goal of carbon neutrality by 2070. India’s other updated quantitative target under the new submission is to reduce emissions intensity (emission per unit of GDP) by 45% by 2030 from 2005 level. The NDC does not bind it to any sector-specific mitigation obligation or action, saying India’s goal is to reduce overall emission intensity and improve energy efficiency of its economy. The country’s submission has total eight goals which include three updates including its commitment to propagate a healthy and sustainable way of living based on "traditions and values of conservation and moderation", including through a mass movement for LIFE -lifestyle for Environment as a key to combating climate change. India’s submission shows that the country’s target of achieving 50% cumulative electric power installed capacity from non-fossil fuel-based energy will be a sort of conditional as it will be contingent on international support. India underlined that the country would achieve that target “with the help of transfer of technology and low-cost international finance including from Green Climate Fund (GCF)
Concerted efforts Needed from All Sectors, States to Achieve 500 GW Renewable Energy Capacity: Union minister
Concerted efforts from all sectors and states are vital for India to achieve the target of 500-gigawatt renewable energy capacity by 2030, Union Minister of
State for New and Renewable Energy and Chemicals and Fertilizers Bhagwanth Khuba has said. He lauded the role played by the states in the renewable energy sector by saying that their joint efforts with the Centre resulted in the country achieving the goal of 175 GW of clean energy capacity this year itself. The minister laid emphasis on the initiatives being taken by the Ministry of New and Renewable Energy for achieving the ambitious target of 500 GW by 2030 and the various product-linked incentive schemes it was going to roll out. He also lauded the efforts by AREAS in this sector by saying that because of it. .
India adds record 7.2 GW solar capacity in Jan-Jun 2022: Mercom India
Solar capacity installations in the country rose by 59 per cent to record 7.2 gigawatt (GW) during first half of 2022, according to Mercom India Research. In January-June or H1 of 2021, the country had added 4.5 GW solar capacity, the research firm's 'Q2 2022 India Solar Market Update' said. The solar installations in April-June period of 2022 also increased by 59 per cent to over 3.9 GW compared to 2.4 GW installed in second quarter of 2021. India's cumulative installed solar capacity now stands at 57 GW. Cumulative large-scale solar PV installations in Rajasthan reached almost 13 GW as of June 2022, and the state accounted for almost 27 per cent of the total installations in the country. In the first half of 2022, Rajasthan and Gujarat were the top states for large-scale solar, accounting for 53 per cent and 14 per cent of installations, respectively, followed by Maharashtra with 9 per cent.
Rooftop solar installations fall 25 pc to 389 MW in Apr-Jun: Mercom India
Rooftop solar capacity installations in the country fell by 25 per cent to 389 MW during April-June 2022 compared to the year-ago period, according to Mercom India Research. In the second quarter of 2022, the rooftop solar accounted for 10 per cent of total solar installations. India's cumulative rooftop solar capacity was over 7.9 GW at the end of Q2 2022, the research firm's 'Rooftop Solar Market Report Q2 2022' said. Supply chain issues and higher component costs and the basic customs duty took a toll on the market in the second quarter. Rooftop project costs have risen for six quarters in a row. But the economic case for rooftop solar is stronger than ever, and we expect the market to show strength going forward, said Raj Prabhu, the CEO of Mercom Capital Group. The government has imposed a 40 per cent basic customs duty on solar modules and 25 per cent on solar cells with effect from April 1, 2022. As per the report, Gujarat was the top state for cumulative rooftop solar installations, followed by Maharashtra and Rajasthan.During the quarter, around 50 per cent of installations were in the industrial segment, followed by 35 per cent, 13 per cent, and 2 per cent in commercial, residential, and government segments, respectively..
India can add another 23.7GW of wind energy capacity in the next five years, according to a study by Global Wind Energy Council and MEC Intelligence (MEC). The wind energy outlook suggests that the country can add another 23.7 GW of capacity within the next five years, provided necessary enabling policies, facilitative instruments, and the right institutional interventions are put in place. To seize this enormous opportunity, India must focus on three areas: a dialogue between the central government and the states to foster consensus building; delivery to help match timelines and targets, and the potential for India to be a destination for the global wind manufacturers and suppliers, as per the study. Wind power constituted the majority of the renewable energy mix in India, with 37.7 per cent of cumulative installed capacity as of March 2022. However, the overall estimated potential dwarfs the current installed capacity. There is over 600 GW of onshore capacity at 120m hub height, with another 174 GW of fixed-bottom and floating offshore wind potential. These statistics demonstrate that there is a huge untapped wind energy potential that will be crucial for advancing the country’s clean energy transition which is pivotal for achieving COP26 goals.
