Power

THERMAL

Foreign IPOs, M&As in plan to take power sector global

The power sector is going global as part of Vision 2047. Strategies being explored by the power ministry in this regard include initial public offerings (IPOs) in global markets, mergers and acquisitions (M&As) in more overseas strategic resources and expanding the global footprint of Indian firms, said two government officials aware of the plans.

The playbook includes peer-to-peer (P2P) energy trading to meet enhanced energy demand and drive economic growth while ensuring access to cheap, reliable and clean electricity. The proposed plan also involves improving corporate governance practices at state-owned electricity distribution companies, cutting tariffs, reducing cross-subsidies and shortening the power purchase agreement duration from 25 years.

The focus is also on building self-reliance in emerging technologies and promoting domestic production of critical equipment such as supervisory control and data acquisition (Scada), transformer and batteries amid mounting Chinese hacking attacks on Indian critical infrastructure such as power grids. Some of the other initiatives being explored are promoting competition by delicensing distribution, and increasing private participation through privatization and franchises.

It also involves promoting ease of living by enabling consumer choice and innovation at the grassroots with minimal institutional intervention. There are also proposals to facilitate consumer-centric business models and regulatory structure to ensure technical integration of decentralized grids.

India's Power Consumption Grows 17.2% To 134.13 Billion Units In June

Power consumption in the country grew by 17.2 per cent year-on-year to 134.13 billion units (BU) in June, amid severe heat and a spurt in economic activities. Power consumption in June last year was recorded at 114.48 BU, which was higher than 105.08 BU in the same month of 2020, according to power ministry data. Moreover, peak power demand met, which is the highest supply in a day, during June this year remained at an all-time high of 209.80 GW (on June 8). The peak power supply stood at 191.24 GW in June 2021, and 164.98 GW in June 2020. The power consumption and demand were affected in June 2020, due to the imposition of lockdown restrictions for curbing the spread of the coronavirus. According to experts, power consumption and demand rose mainly because of severe heat and spurt in economic activities, pushing commercial and industrial requirements for electricity in the country.

Gencos imported 9.2 mn tonne of coal in April-June period: Power Ministry

Power generating firms (gencos) have imported 92.07 lakh tonne of coal in April-June this financial year for blending purposes ahead of Monsoon season after Ministry of Power advised Central Gencos, State Gencos and Independent Power Producers (IPPs) to import coal for blending purpose during 2022-23. 92,07,000 tonnes of coal were imported by the gencos during April-June this fiscal year, which includes 57,17,000 tonne by central gencos, 28,85,000 tonne by IPPs and 6,05,000 tonne by state gencos. The state-owned power giant NTPC and NTPC-JV (joint venture) imported 49,39,000 tonne of coal in AprilJune this year. India has firmed up a plan to import around 76 million tonnes (mt) of coal to help plug a fossil fuel shortfall at its power plants in the current financial year. Imports are necessary in the backdrop of blackouts due to an increase in electricity demand exacerbated by an intense heat wave. India’s power plants are currently burning around 2.1 mt of coal every day.

Coal Based Power Generation Achieves 26.58% Growth in June 2022

The Power utilities despatch has grown by 30.77% to 64.89 MT during June this year as compared to 49.62 MT in June 21 due to an increase in power demand. Coal-based power generation has registered a growth of 26.58% in June 2022 as compared to June 2021. The overall power generation in June 2022 has been 17.73% higher than in June 2021. However, Coal-based power generation in the month of June 2022 has been 95880 MU in comparison to 98609 MU in May 2022 and registered a negative growth of 2.77 %. Total power generation has also decreased in June 2022 to 138995 MU from 140059 MU in May 2022 and registered a negative growth of 0.76 %.

Power tariff to rise 60-70p per unit for blending imported coal: Minister

Coal import for 10 per cent blending for the electricity plants to avoid blackouts will result in a rise in power tariff by 60-70 paise per unit. This has to be done to avoid power shortage as domestic coal supply is unable to match the electricity companies’ demand for the dry fuel, Union minister RK Singh said. “We have asked power plants to blend 10 per cent

imported coal to avoid blackout as domestic coal production is not enough. Imported coal costs Rs 17,000-18,000 per tonne while domestic coal price is about Rs 2,000 per tonne. Due to this, it will result in a tariff rise of about 60-70 paise per unit,” Singh said. Speaking about coal imports, Singh said, it can be 2025 million tonnes this year for blending. The minister remained optimistic that peak electricity demand of over 2 lakh MW would continue in future due to the government’s huge transmission network that made India the world’s largest single frequency grid, delivering power to every village, and raising the average electricity supply from 12.5 hours to 22.5 hours a day.

CERC extends price cap on power exchanges till September 30

The Central Electricity Regulatory Commission (CERC) has extended Rs 12 per unit price ceiling in all market segments of power exchanges by three months. The earlier order lowering the price cap from Rs 20 was in force. The order said based on the assessment of demandsupply position in the power sector, it is felt that the high demand for electricity is likely to continue over the next few months due to increase in economic activity, high agricultural load on account of sowing of kharif crops, and increase in household demand. The peak demand has been fluctuating and touched 204 GW in May 2022 and 212 GW in June 2022. During the period from May 7, 2022 till June 28, 2022, the percentage of blocks in a day with maximum clearing price discovered at Rs 12/kWh ranged from 4% to 66% in Day Ahead Market (DAM) and from 2% to 53% in Real Time Market (RTM) at IEX, the order said.

Power plants can now sell surplus outside PPAs

The government has allowed imported coal-based power plants to sell any surplus electricity to states other than those with which they have supply tie-ups. The power ministry has issued a clarification to the emergency clause invoked in May this year that mandated non-operational imported coal-based plants to start generation amid a sharp rise in power demand. As per the dispensation issued last week, if the imported coal-based plants do not get requisition from their consumer states for supply three days in advance for the next week, they can sell the power to another distribution company at an energy charge determined by a government panel plus fixed cost, a government official said. The states having power purchase agreements (PPAs) with the projects would not be required to pay the fixed costs for such duration. The clarification has been issued since prices on power exchanges have fallen due to low demand and the power projects are not able to operate.

Discoms outstanding dues to gencos rise 4% to Rs 1.32 lakh crore in June

Total outstanding dues owed by electricity distribution companies (discoms) to power producers rose by 4 per cent year-on-year to Rs 1,32,432 crore in June 2022. Discoms owed a total of Rs 1,27,306 crore to power generation firms in June 2021, according to portal PRAAPTI (Payment Ratification And Analysis in Power procurement for bringing Transparency in Invoicing of generators). On a sequential basis, total dues in June increased from Rs 1,30,139 crore in May 2022. In June 2022, the total overdue amount, which was not cleared even after 45 days of grace period offered by generators, stood at Rs 1,15,128 crore as against Rs 1,04,095 crore in the same month a year ago. The overdue amount stood at Rs 1,07,636 crore in May 2022. Discoms in Maharashtra, Tamil Nadu, Telangana, Andhra Pradesh, Uttar Pradesh, Jammu & Kashmir, Karnataka, Madhya Pradesh, Jharkhand and Rajasthan account for the major portion of dues to gencos, the data showed. Overdue of independent power producers amounted to 53.17 per cent of the total overdue of Rs 1,15,128 crore of discoms in June 2022.

The proportion of central PSU gencos in the overdue was 22.4 per cent.

India On Track To Add 27k Circuit Km Power Transmission Lines By 2024: Official

India is poised to add 27,000 circuit kilometres of inter-state power transmission networks by 2024 as it has already added 6,500 circuit kilometres or almost one-fourth of the target. The power transmission network expansion has been planned keeping in mind the ultimate goal of having 500 GW of non-fossil fuel based electricity generation capacity in the county. 10,000 circuit kilometres lines are already under construction while 10,500 circuit kilometres are at various stages of bidding or tendering. The inter-state transmission link plays an important role in power generation capacity addition. The power ministry official also said that in addition to 27,000 circuit kilometres by 2024, India would need to build transmission lines to evacuate 180GW generation capacity, which will ultimately help the country to realise its gaol of having 500GW of renewable energy by 2030.

IREDA committed to increasing participation of MSMEs in RE by offering more loans

The Indian Renewable Energy Development Agency (IREDA) said it is committed to increasing participation of MSMEs in the green energy sector by offering more loans, its Chairman and Managing Director Pradip Kumar Das said. Das said while MSMEs only represent 1.86 per cent of the company's total loan assets of Rs 33,884 crore (as of May 2022), the IREDA is attempting to address the issues of MSMEs in order to increase their participation in the renewable energy (RE) sector. He emphasised that the target of 500 GW of RE capacity by 2030 cannot be achieved without the considerable participation of MSMEs, and therefore, their efforts will be a crucial driver of Aatmnirbhar Bharat. A major barrier for MSME entrepreneurs is the inability to get loans with reasonable interest rates, but the IREDA has significantly improved the ease of doing business in terms of faceless loan sanctions and disbursements, reduction in loan sanction, documentation and disbursement cycle, and increased geographical footprint in the country.

RENEWABLES

India stays on track to be a solar and green hydrogen powerhouse

India is on track to become a global force in green hydrogen and challenge China’s dominant role in the solar energy sector, according to the nation’s power minister. Rapidly rising investments in renewables, including from overseas, are helping to position India as a key future supplier of clean energy technology and as an exporter of low-emissions hydrogen and ammonia. India has existing capacity of about 15 gigawatts of solar cell and module manufacturing and the addition of 50 gigawatts is already under way, according to Singh. Foreign investment in renewables is averaging about $9 billion to $11 billion a year, and is “going to go up exponentially. India currently accounts for only a fraction of production of solar cells and modules. Both sectors are controlled by China, which manufactured more than two-thirds of modules and 86% of cells in 2021.

Green Hydrogen will overcome challenges faced by fossil fuel industry: Minister Puri

Ministry of Petroleum and Natural Gas Shri Hardeep Singh Puri said that when allowed to flourish, Green Hydrogen will overcome the challenges that were

faced by the fossil fuel industry. He said that it will provide momentum to India’s journey towards energy independence by 2047. India has a huge edge in green hydrogen production, owing to its favourable geographic conditions and presence of abundant natural elements. The stakeholders deliberated upon ways to develop the entire green hydrogen ecosystem in a way that India is able to realise country’s full potential to create a $12-13 trillion industry by 2050. Describing the hydrogen as the fuel of the future, Shri Puri emphasized on accelerated timeframe for the sector. He said that the oil and gas PSUs have taken a number of pilot projects in the sector, some of which will start showing results this year itself. The Minister said that India, being the large growing economy, is going to be the hub of Green Hydrogen.

CESL begins deliberations on expediting deployment of 50,000 electric buses across India

State-owned Convergence Energy Services Ltd (CESL) with the help of World Resources Institute India (WRI India) has begun deliberations to expedite deployment of 50,000 electric buses on Indian roads by 2030. After the success of the Grand Challenge that helped discover the lowest-ever prices for electric buses (e-buses), CESL, supported by WRI India, kick-started deliberations to expedite the deployment of 50,000 electric buses (e-buses) on Indian roads by 2030, a statement said. Under the Grand Challenge, the CESL has begun the deployment of 5,450 e-buses across five cities: Bengaluru, Delhi, Hyderabad, Kolkata and Surat. This tender, based on a gross cost contracting model, discovered rates that were 27 per cent and 23 per cent lower than those of diesel and compressed natural gas (CNG) buses respectively (without national subsidy).

PSUs under Govt invest in Energy Storage Technologies along with Solar PV Projects: R. K Singh

The Public sector undertakings of the Government have invested in commercial scale implementation of Battery Energy Storage Systems along with Solar PV Projects. The Government of India is also supporting some of the storage projects through grant support said, Shri R.K Singh, Union Minister for Power and New and Renewable Energy in a written reply in Rajya Sabha. Solar Energy Corporation of India (SECI), a CPSE under the Ministry of New and Renewable Energy has undertaken the implementation of these three projects 1.4 MW Solar PV Project with 1.4 MWh Battery Energy Storage System in Kavaratti Island, UT of Lakshadweep (supported through MNRE Grant). 50 MWp SPV Project with 20 MW/50 MWh BESS at Phyang, Leh, UT of Ladakh (supported by GoI grant under the PMDP 2015). 100 MW SPV Project with 40 MW/120 MWh BESS at Rajnandgaon, State of Chhattisgarh. Ministry of Power has notified Bidding Guidelines for Procurement and Utilization of Battery Energy Storage Systems as part of Generation, Transmission, and Distribution assets, along with Ancillary Services on March 11, 2022. Energy Storage Projects at grid scale are currently under the implementation stage.

India’s largest Floating Solar Plant commissioned at NTPC Ramagundam

NTPC Ltd, India’s largest integrated energy company, has declared the COD of the last part capacity of 20 MW out of 100 MW Ramagundam Floating Solar PV Project. Ramagundam Floating Solar PV Project is India’s largest Floating Solar Plant commissioned by NTPC. With the successful commissioning, the last part capacity of 20 MW out of 100 MW Ramagundam Floating Solar PV Project at Ramagundam, Telangana is declared on Commercial Operation w.e.f. 00:00 Hrs. of 01.07.2022. The total installed capacity of the company is 69,134.20 MW having 23 coal based, 7 gas based, 1 Hydro, 19 renewable energy projects.

Electrolyzer firm Ohmium to lift India output fourfold

Ohmium India, an arm of US-based renewable energy startup Ohmium International plans, aims to increase its production capacity fourfold to 2GW a year by December. The India unit, which runs the company’s only facility manufacturing electrolyzers, is also exporting to the US and aims to ship electrolyzers to Europe soon. The company has a 500MW capacity facility in Karnataka and is ramping up the factory there. The company would be able to increase its production capacity fourfold as most of the components and technology are in-house. The expansion would be largely funded from the Series B funding round of $45 million, Chatila said. In April, the company announced the closure of the Series B funding round led by existing investor Fenice Investment Group with participation from other existing investors and a new investor, Energy Transition Ventures.

GE commissions 180-MW Bajoli hydro project

GE Renewable Energy's Hydropower business, part of GE Power India Ltd (GEPIL), has commissioned the 180-MW Bajoli Holi Project, in Himachal Pradesh. Three units of 60 MW each have been generating electricity since the project was connected to the grid in March 2022, a company statement said. According to the statement, the 180-MW run-of-theriver power facility has a head race tunnel of more than 16 km and has been constructed on the river Ravi in Chamba district of Himachal Pradesh. The completion of this project is a step towards using the power potential of the state to support both Himachal Pradesh and the entire northern region of India, the statement said. The Bajoli Holi Hydropower Plant generates 94 per cent of energy required by the Delhi International Airport Limited -- the last 6 per cent coming from on-site solar power plants. As an engineering and manufacturing supplier of the Bajoli Holi Hydropower Plant, GE Hydro Solutions has cooperated in overcoming challenges and difficulties during the

Centre considers incentives for offshore wind energy

The union ministry of new and renewable energy (MNRE) is considering giving incentives to companies in the offshore wind energy space including the waiver of transmission charges, renewable energy credits, carbon credits benefits and viability gap funding (VGF) among others.16 zones have been identified in total, off the coasts of Gujarat and Tamil Nadu for harnessing offshore wind energy. The ministry has proposed to take three approaches or models for development of offshore wind energy projects. The first model would be followed for demarcated offshore wind zones for which the ministry has carried out detailed studies and surveys. Currently, one zone off the coast of Gujarat shall be initially considered under this model. Under this model, MNRE or its designated agency will enter into a lease agreement for 30 years with the successful bidders. The offshore wind power developer shall be required to pay the annual floor lease fee of 1 lakh per square kilometre per year for the entire lease period.