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THERMAL
Energy requirements of Indians expected to double in 20 years: PM Narendra Modi
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Energy requirements of the people of India are expected to double in the next 20 years, Prime Minister Narendra Modi said as he urged developed countries to fulfill their commitments on finance and technology transfer. "Denying this energy would be denying life itself to millions. Successful climate action also needs adequate financing. For this, developed countries need to fulfill their commitments on finance and technology transfer," the prime minister said. He said India believes in fulfilling commitments under the United Nation Framework Convention on Climate Change (UNFCCC). Calling India a mega-diverse country which accounts for eight per cent of the world's species, the PM said, "It is our duty to protect this ecology." "With 2.4 per cent of the world's land area, India accounts for nearly 8 per cent of the world's species. It is our duty to protect this ecology. We are strengthening our protected area network," he said.
Govt intends to ensure uninterrupted 24x7 power supply to all households: Power Minister
Power Minister R.K. Singh while speaking in the interaction said that the government intends to ensure an uninterrupted 24x7 power supply to all households. In the past 7 years, India has increased its installed capacity of 395,000 MW whereas our peak demand is 200,000 MW. India now has an integrated national grid. The Minister stressed that the two main requirements for an uninterrupted power supply are a better distribution system and the viability of Discoms. The Minister said that India is the most attractive destination for investment in the Renewable Energy sector. Shri Singh stated that the world needs an energy transition where there is a shift from fossil fuel to the non-fossil fuel systems. The transition will happen faster if the cost of energy storage devices goes down. Under the PLI scheme for high-efficiency solar modules, the Finance Ministry will grant an additional Rs 19,500 crore. The Minister emphasized that it is important to electrify the economy and increase the share of RE in the electricity mix. He added that the addition of more Electric Vehicles to the transport system will help in reducing pollution in NCR and is also the future of mobility. There is a need to replace the use of coal in small industries. Diesel pumps will be replaced by solar pumps in the agricultural sector by 2024. He said that the farmers can make use of PM KUSUM in this regard, He added.
Power bills may go up as govt. wants timely revision of tariff by discoms
The power ministry wants electricity distribution companies to hike tariffs timely and adequately to cover their rising costs, a move, if accepted in Toto by states, could put additional burden on households already reeling under high fuel prices. The parliamentary consultative committee identifies delayed or inadequate tariff revisions as a key factor that is keeping alive the vicious cycle of continued accumulation of unsustainable levels of losses and debt for meeting working capital needs. “Tariff petitions are filed late and most of the times not disposed off timely by the SERCs (state electricity regulatory commissions)… Many SERCs fix tariffs that are not reflective of the costs. The gap is shown as ‘revenue gap’ or ‘regulatory assets’. These are meaningless terms because the discoms cannot recover them,” the note says. Out of the 36 states/UTs (union territories) 17 issued tariff orders for 2021-22 before March 2021 and 12 in the April-November period of 2021, while seven have not. The note also blames the perpetual cash crunch faced by discoms on delayed payment of state government subsidies to discoms and their poor billing and collection efficiency of about 85% and 91%, respectively.
Govt. approved 112 crore outlay for R&D schemes in power sector
As per the information available in the “Report on Performance of Power Utilities? published by Power Finance Corporation (PFC), the cost of Power to Distribution Utilities increased from Rs. 4.21 / KWh in the year 2017-18 to Rs. 4.73 / KWh in the year 2019-20, in which time, the Aggregate Technical and Commercial Losses reduced from 21.50% to 20.93%. The Government is promoting Research and Development (R&D) for the Indian Power Sector through Central Power Research Institute (CPRI) and various R&D schemes. The Government has recently approved the proposal for continuation of R&D schemes in the Power Sector to be implemented through CPRI with an
outlay of Rs. 112 crore. A Standing Committee on R&D (SCRD) in Power Sector has been constituted under the Chairmanship of Chairperson, Central Electricity Authority to identify and prioritize important strategic areas of R&D, which are to be implemented under “R&D” schemes. The SCRD identifies leading Researchers and Domain Experts in diverse areas of Power Sector and engage them in the Research Schemes. Technical Committees in specific fields of power, namely, Thermal Generation, Hydro Generation, Transmission and Grid, Distribution & Energy Conservation, have also been constituted to assist the SCRD in evaluating R&D proposals and monitoring of the R&D projects till successful completion. The committees have representation from Academia, Industry, Utilities and Policy making bodies.
Shri R.K Singh Union Minister for Power and MNRE has mentioned the step to address the financial health of DISCOMS. As per information stated by Power Minister the total outstanding dues owed by electricity Distribution Companies (DISCOMs) to Central Public Sector Generation Companies, Independent Power Producers (IPPs) and Renewable Generators as on 31.12.2021 are Rs.95,167 Crores. The requirement of either making prepayment or giving Letter of Credit (LC) with the entire cost of the power was relaxed to 50% during the period 24.03.2020 to 30.06.2020. Thus, Power Ministy suggested DISCOMs to either pay in advance or give LC for 50% of the cost of power they wanted to be scheduled; the remaining 50% was to be paid within the period given in the PPA, failing which the delayed payment surcharge would apply. This was not applicable for State Generators. Central Electricity Regulatory Commission (CERC), in accordance with the directions issued by the Government of India under section 107 of the Act, had issued an order to the effect that if any delayed payment by the Distribution Companies to the Generating Companies and inter-State Transmission Licensees beyond 45 days from the date of the presentation of the bills falls between 24.03.2020 and 30.06.2020, the concerned Distribution Companies shall make the payment with Late Payment Surcharge (LPS) at the reduced rate of 12% per annum.
Power & NRE Minister chairs 4th India - Australia Energy Dialogue
The 4th India – Australia Energy Dialogue was held on 15th February 2022. The dialogue was co-chaired by Hon’ble Minister for Power and New & Renewable Energy, Mr. R.K. Singh from the Indian side, and Hon’ble Minister for Energy and Emissions Reduction, Mr. Angus Taylor from the Australian side. Energy Transition was a major area of discussion in the dialogue and both the Energy Ministers spoke in detail about the ongoing Energy Transition activities in their respective countries with a focus on renewables, energy efficiency, storage, EVs, critical minerals, mining, etc. The need of Climate Finance was also highlighted by India for meeting the Energy Transition goals of developing countries. A Letter of Intent between India and Australia on New and Renewable Energy Technology was signed during the Dialogue. This LoI will pave the way for working towards reducing the cost of new and renewable energy technologies and scaling up deployment in order to accelerate global emissions reduction. The focus of this LoI will be scaling up the manufacture and deployment of ultra-low-cost solar and clean hydrogen.
CEA projections show no new coal energy project in 10 years
India is unlikely to build any new coal-based energy capacity over the next 10 years when the country's energy mix will tilt significantly towards cleaner sources with solar emerging the top source, the government's internal projections show. It projects coal and lignite generation capacity at 252 gigawatt (GW) in 2031-32 against the present capacity of 235 GW, with projects already under construction accounting for the slight increase. Renewable energy generation is seen well over the country's 2030 commitment of 500 GW against 104 GW at present. As per the proposed energy mix, 44 GW is targeted from grid-scale battery energy storage out of total capacity of 897 GW by FY32. Hydroelectric capacity is envisaged at 64 GW in FY32 and 52 GW in FY27, up from 47 GW now. Solar energy generation is likely to rise manifold to 334 GW by FY32 from 49 GW at present, and wind energy to 110 GW from 40 GW. Significant additional installed capacity over 10 GW is also expected from nuclear and pump storage stations.
RENEWABLES
Environment ministry proposes common emission norms for generator sets
The Ministry of Environment, Forest and Climate Change (MoEF&CC) has notified draft revised norms for emissions from generator that would be common for all fuels and even upcoming fuels, effective from July 2023. Currently, there are three different emission standards for the generator sets based on different fuel gasoline, diesel and dedicated CNG, dedicated LPG, dual fuels & Bi-fuels. "The revised standards are a single standard covering all available fuels and upcoming fuels viz producer gas, hydrogen gas etc," the proposal has said. The India Genset Emission Standards-IV+ given for gen sets in two categories mentions the limits NO (Oxides of Nitrogen); HC (Hydrocarbon); CO (Carbon Monoxide); PM (Particulate Matter) and also for CI (Compression Ignition) and PI (Positive Ignition). There would be certifications based on types of engines and there would be authorized agencies for certifications. The emission limits for new engines up to 800 kW used for power generating set shall come into force from July 1, 2023 with the draft also mentioning the transition provisions for Gensets and Genset Engines manufactured as per Central Pollution Control Board (CPCB-II) norms.
State governments lead India’s journey to an electric future: CEO, Niti Aayog
India’s drive towards an electric future is being led by state governments, as large states such as Maharashtra and Uttar Pradesh formulate policies on EV adoption, and various metro cities convert their public transport fleets to EVs. “Twenty-seven states have moved forward in formulating their EV policies, and 18 states/ UTs have already notified their EV policy,” Amitabh Kant, CEO, Niti Aayog, said. Kant said while the pace of electrification of two and three-wheelers has been fast, electric buses are the real “low-hanging fruit” of India’s transport market. “States play a very proactive role in the procurement of e-buses,” he explained. The second phase of Faster Adoption and
Manufacturing of Hybrid and Electric Vehicles (FAME 2), which proposed e-bus aggregation for cities with a population of more than four million (Mumbai, Delhi, Bengaluru, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune) has been pursued actively, Kant said.
India installs 678 public EV charging stations in the last four months: Power ministry
India’s effort to expand public electric vehicles charging infrastructure gave a quick result as the country witnessed a 2.5 times growth in charging stations in nine mega cities in the last four months. It had installed 678 public EV charging stations between October 2021 to January 2022 in Surat, Pune, Ahmedabad, Bengaluru, Hyderabad, Delhi, Kolkata, Mumbai, and Chennai. “The Government has made 360-degree efforts to enhance public charging infrastructure by involving private and public agencies (BEE, EESL, PGCIL, NTPC, etc.). Many private organisations have also come forward to install EV charging stations to develop a convenient charging network grid to gain consumers’ confidence,” said the power ministry in a statement. To boost the electric vehicle infrastructure in the country, the power ministry revised its guidelines in January. It includes providing an affordable tariff chargeable by public EV charging station operators, enable owners of electric vehicles to charge EVs at their residences using their existing electricity connections. A revenue sharing model has been suggested for land use to make a public charging station financially viable from an operational perspective and technical requirements for public charging stations have been elaborated.
IREDA eyes Rs 2,749 Cr revenue in 2021-22
State-run Indian Renewable Energy Development Agency Ltd (IREDA) is eyeing Rs 2,749 crore revenue from operations in the ongoing financial year. IREDA has signed a Memorandum of Understanding (MoU) with the Ministry of New and Renewable Energy (MNRE), setting an annual performance target for the year 202122, an MNRE statement said. The government has set a target of Rs 2,749 crore revenue from operation under the 'Excellent' rating along with various performancerelated key parameters such as return on net worth, NPA to total loans, asset turnover ratio and earnings per share etc, it stated. In FY 2020-21, IREDA was rated 'Excellent' with a score of 96.93. The company as on date, has financed more than 2,900 renewable energy projects loan accounts with cumulative loan sanction and disbursement to the tune of Rs 1,08,606 crore and Rs 69,951 crore respectively. It has supported green power capacity addition of 19,463 MW in the country.
Govt. targets 5 MT green hydrogen; waives RE transmission charges for makers for 25 years
India announced plans to produce five million tonnes of green hydrogen by 2030 and announced a policy to enable manufacturers to set up renewable energy plants or source nonfossil electricity without transmission charges for 25 years. The policy provides that green hydrogen or ammonia manufacturers may purchase renewable power from the power exchange or set up renewable energy capacity themselves or through any other developer anywhere. It granted open access - or permission to procure the electricity from any source other than distribution company - within 15 days of receipt of application. It also provided that the
green hydrogen or ammonia manufacturer can bank his unconsumed renewable power, up to 30 days, with distribution company and take it back when required. Distribution licensees can also procure and supply renewable energy to the manufacturers of green hydrogen or ammonia in their states at concessional prices which will only include the cost of procurement, wheeling charges and a small margin as determined by the state commission. Waiver of inter-state transmission charges for a period of 25 years will be allowed to the manufacturers of green hydrogen and green ammonia for the projects commissioned before June 30, 2025.
India and Japan to hold joint seminars on attracting Hydrogen investments
The Embassy of Japan announced it has, in collaboration with Japanese organizations of the region, designated February-April 2022 as the “India-Japan Clean Hydrogen Month” in order to attract further investment and to resolve technical and economic issues obstructing the utilization of hydrogen. Under the initiative, the two sides will hold intensive hydrogen-related seminars during this period. The idea is to present the potential of hydrogen business in India and Japan’s advanced hydrogen technology to all the stakeholders in public and private sectors from both the countries. The series of seminars — that will promote public-private partnerships in the field of hydrogen energy — will begin with the “CIIJETRO Green Hydrogen Dialogue” on 24 February with speakers from Asahi Kasei, Toshiba, Mitsubishi Power, Marubeni, Adani, and Reliance. This will be followed by the 4th India – Japan Hydrogen and Fuel Cell Workshop on 4 March, with the theme – Hydrogen production and power generation technologies of both countries and International Hydrogen Supply Chain with India as a Hub.
India wants to become a solar powerhouse without China’s help
India is pressing ahead with plans to curb reliance on China, the dominant producer of solar power equipment, even as it seeks to add huge volumes of renewable energy. A pair of measures in recent budget will help Prime Minister Narendra Modi’s efforts to extend his government’s made-in-India campaign to the clean power sector, in which about 80% of all solar hardware is imported from the nation’s northern neighbor. Grants of 195 billion rupees ($2.6 billion) are being added to spur local equipment production, while there’ll also be a 40% tax on imports of solar modules and 25% on cells from the next fiscal year. India, the world’s third biggest emitter of greenhouse gases, plans to more than quadruple its renewable power generation capacity to 450 gigawatts by 2030, including 280 gigawatts of solar. That total will continue to rise sharply as the nation seeks to zero out its emissions by 2070.
Strong demand outlook for domestic solar OEMs aided by policy measures: ICRA
Business prospects of domestic solar original equipment manufacturers (OEMs) will remain strong aided by several policy measures over medium-term, rating agency Icra said. As a result, many domestic OEMs have announced sizeable capital expenditure to augment the cell and module capacity, including
the capex for integrated facilities under PLI scheme by the winning bidders. However, it stated that timely commissioning and ramping up of ongoing capex in module manufacturing value chain remains a critical factor in the near to medium-term. As a result, adequacy of the modules from the domestic OEMs to meet the demand in utility & non-utility segment as well as quality of such modules remains a monitorable. Further, ALMM list has only domestic solar OEMs and there remains an uncertainty for inclusion of foreign solar OEMs as of now. Given the strong response for the PLI scheme for solar modules, the scheme outlay has been further increased to Rs 24,000 crore from Rs 4,500 crore earlier, Icra said.
THDC India signs LoI to set up 10,000-MW solar projects in Rajasthan
State-owned THDC India Ltd (THDCIL) has signed a pact to build 10,000-megawatt (MW) solar power projects entailing an investment of Rs 10,000 crore in Rajasthan. "THDC India Limited (THDCIL) signed the letter of intent (LoI) of 10,000 MW in Rajasthan with an estimated investment of Rs 40,000 crore for the establishment of renewable energy parks/ projects of 10,000 MW in the august presence of the chief minister, Rajasthan, and the Minister for Industry, Revenue and Energy, Government of Rajasthan," the company said in a statement. On behalf of THDCIL, its Director (Finance) J Behera signed the LoI in Jaipur, which was accepted by Rajasthan Additional Chief Secretary Subodh Agarwal, who is also the CMD of RRECL. The land bank will be allocated by the Government of Rajasthan through RRECL. The RE parks will be implemented through a special purpose vehicle in the term of a joint venture with RRECL in the ratio of 74:26. With the above intent of investment in the energy sector by THDC India Ltd, it is expected that around 10,000 direct and indirect employment opportunities will be created during the peak time of construction, which will boost the local economy.
Hydro power developers can now access a new fund for performance assessment
Hydropower project developers and operators can apply for funding to help finance an independent assessment of a project’s sustainability performance. A sustainability fund backed by the Swiss government - and supported by the International Hydropower Association (IHA) and the Hydropower Sustainability Council - has now become available for companies to assess their environmental, social and governance (ESG) performance. "As of February 2022, the fund is now open to applications from projects in over 40 countries across the world. Hydropower projects of all sizes and at any stage of development can apply for the funding to help conduct an independent assessment using an ESG tool," IHA said in a statement. This initiative, funded by the Swiss Government’s State Secretariat for Economic Affairs (SECO), is now in its fourth round of funding and recently awarded six grants across six countries in Africa and South America.
ReNew Power has commissioned Gujarat's first wind-solar hybrid project of 17.6 MW at the Chlor-Alkali unit of Grasim Industries Ltd in Vilayat, Bharuch. The first phase of the
hybrid project, with 17.6 MW commercial-scale wind-solar, commenced operations last week and is expected to generate 80 million units of renewable energy every year, mitigating 75,000 tCO2e (carbon emissions) annually, the company said in a statement. The partnership will expand further with an additional 16.68 MW, which will be commissioned in the next financial year (FY23), as part of the second phase. The project is being developed by ReNew Green Solutions (RGS), the B2B arm of ReNew Power. Both the parties have entered into a 25-year PPA (power purchase agreement), which will see the project supply power for the plant at Vilayat, Bharuch, via an open access mechanism. Once both phases are commissioned with a combined capacity of 34.28 MW, the partnership is expected to generate a total of approximately 160 million units of renewable electricity annually, mitigating a cumulative 150,000 tCO2e (carbon emission) a year.
