Power

India's actions in consonance with committed global average temperature targets: Energy minister R K Singh

India’s actions are in consonance with the target of holding the increase in the global average temperature to below 2°C above pre-industrial levels, power and renewable energy minister R K Singh said. Singh said India will finalise its energy compacts going forward based on its target of 450 GW renewable energy capacity by 2030, focusing on solar, wind and bio-energy; storage systems, green hydrogen and international cooperation through the International Solar Alliance. One of the key outcomes of the High Level Dialogue on Energy 2021 will be ‘Energy Compacts’. Energy Compacts are voluntary commitments from Member States and non-state actors like companies, regional/local governments, nongovernmental organisations (NGOs) and others. These stakeholders commit to an Energy Compact that includes the specific actions they commit to take to support progress on Sustainable Development Goal (SDG-7). With about ten years left for the global target for ensuring access to affordable, reliable, sustainable and modern energy for all under the SDG- 7, there is need for strong political commitments, and innovative ways of expanding energy access, promoting renewable energy and increasing energy efficiency, he said.

Govt, industry need to ensure regulations don't hamper investment: Power Secy

The government and industry must work together to ensure existing regulations are not unnecessary barriers to investment, Union Power Secretary Alok Kumar said at a virtual two-day

BRICS Green Hydrogen Summit, anchored by state-run power giant NTPC. He was of the view that trade will benefit from common international standards for safely transporting and storing large volumes of hydrogen and having appropriate certificate of origin. "India has launched an ambitious National Hydrogen Mission to introduce hydrogen purchase obligations for fertilizers, refineries involving private sector in transparent & competitive manner to produce green hydrogen," Kumar noted.

NTPC CMD Gurdeep Singh said, "Five BRICS countries share a common vision of sustainable development and inclusive economic growth. Strengthening energy cooperation and ensuring affordable, reliable, accessible and secure energy for all, has always been a strategic area of importance in the agenda of BRICS countries."

Power consumption sees 8.2 pc growth in May amid slow recovery in commercial, industrial demand

Power consumption in the country witnessed an 8.2 per cent year-on-year growth in May at 110.47 billion units (BU), indicating slow recovery in commercial and industrial demand of electricity, according to power ministry data. The power consumption in the entire month of May last year was 102.08 BU due to the impact of the lockdown imposed to curb the COVID-19. The slower pace of recovery in industrial demand of electricity in May can be attributed to local lockdown restrictions imposed by states to curb the spread of coronavirus amid the second wave of the pandemic, experts believe. Moreover, the two cyclones that hit the east and west coast of the country in May resulted in power outages and lesser consumption due to rains in different areas of the country during peak summer season, they said. They are hopeful that the commercial and industrial power consumption as well as demand would rise in coming days with many states easing local lockdown restrictions imposed to curb the second wave of coronavirus.

During May this year, peak power demand met or the highest supply in a day touched the highest level of 168.78 GW and recorded growth of over 1.5 per cent over 166.22 GW (peak met) recorded in the same month in 2020.

Average spot power price up 10% to Rs 2.83 per unit at IEX

Average spot power price has increased over 10 per cent in June to Rs 2.83 per unit compared to same month a year ago at Indian Energy Exchange (IEX) due to low base effect. The average market clearing price was Rs 2.57 per unit in day ahead market (DAM) in May 2020, as per the IEX data.

The market clearing price saw a steep decline of 24 per cent on MoM (month-on-month) basis since average monthly price was Rs 3.70 in the month of April 2021. The sell-bids at 2.2 times of the cleared volume during the month (of May) ensured ample availability of power and discovery of competitive prices thereby providing optimisation opportunities to the distribution utilities, it explained. According to the statement, IEX traded 6,540 MU of electricity volume in May 2021 achieving 9 per cent YoY (year-on-year) growth amidst continuation of the COVID-19 lockdowns as well the cyclonic disturbances which affected the overall power demand in the country. The real-time electricity (RTM) market witnessed a monthly volume of 1,436 MU with average monthly price at Rs 2.53 per unit seeing 28 per cent MoM decline, it stated.

With sell-side bids at 2.6 times of cleared volume, the market continued to have ample availability of power and competitive price discovery, it explained.

Dues & disputes: IPPs seek larger loan facility for discoms

With state-run electricity distribution companies’ over-dues to private power companies rising 8% on year to Rs 36,018 crore at April end despite the Rs 1.25-lakh-crore PFC-REC loan facility at the discoms’ disposal, even the latest package to bail out the power sector is threatening to come a cropper. Independent power producers (IPPs) have demanded an expansion of the loan facility, even as a large segment of their receivables are disputed by the discoms. The liquidity infusion scheme originally had a size of Rs 90,000 crore and it was meant to to cover the dues till March 2020; it was later expanded include overdue bills unpaid by discoms till the end of June 2020.

“Considering the unfolding burden on the states’ finances at present, the extension of time coverage of liquidity window to cover dues till March 31, 2021, will provide a fallback option to needy states to provide cash liquidity in the system,” Association of Power Producers (APP) said in a letter to the Union power ministry, requesting it to expand the ambit of the PFC-REC loan scheme.

CERC proposes buying balancing power from spot markets

The Central Electricity Regulatory Commission (CERC) has proposed a mechanism which allows load dispatch centres to procure a part of power to be used for ‘ancillary services’ from the spot market through electricity exchanges. In its latest draft ancillary services regulations, CERC said that for tertiary reserve ancillary service, the national load dispatch centre will have to notify power exchanges the quantum of electricity requirement on a day-ahead basis before commencement of the day-ahead-market or the real-time-market. According to experts, demand for tertiary ancillary services from the spot market will range between 1,500 megawatt (MW) and 2,000 MW, and in extreme cases, it can rise to around 5,000 MW.

Payment for the ancillary services will be made from the ‘deviation pool account’ where penalties are collected from power generators for supplying higher or lower than promised quantum of electricity. The ancillary services will be used for maintaining the grid frequency at close to 50 hertz in the event of sudden loss of power supply scheduled from a generator.

New system to cut discoms’ purchase cost by Rs 12,000 crore

To optimise the cost of power for state-run electricity distribution companies (discoms), the Union power ministry has proposed a new electricity market design which will accumulate demand requirements from all states in a central pool, and allocate power to them from the cheapest source available. Under the proposed market-based economic dispatch (MBED), the estimated annual savings is seen to be more than Rs 12,000 crore for the electricity consumers, the government said and has sought stakeholders’ comments on the new mechanism by June 30. Under the scheme a maximum of 10 companies will be selected in MSME category and a similar number in the non-MSME category. Of the 10 selected companies in the non-MSME category, at least 3 need to be domestic firms. The pilot phase of the MBED system is proposed to begin from April 2022 and will only involve NTPC’s power plants and is seen to bring in Rs 1,825 crore per year reduction in power procurement cost. The electricity market operations reform through MBED will move towards a “One Nation, One Grid, One Frequency, One Price” framework, the government said.

Scientists develop technique that can generate electricity from vibrations for self-powered devices

Scientists have fabricated a simple, cost-effective, bio-compatible, transparent Nano generator that can generate electricity from vibrations all around for use in optoelectronics, self-pow-

ered devices and other biomedical applications, the government said. “Some of the unconventional methods to generate electricity include piezoelectric, thermoelectric, and electrostatic techniques used in devices like touch screens, electronic displays, and so forth," the statement said.

The turboelectric Nano generators (TENG) make use of mechanical energy in the form of vibrations present everywhere in different forms to generate electricity. The energy harvesting TENG works on the principle of creation of electrostatic charges via instantaneous physical contact of two dissimilar materials followed by generation of potential difference when a mismatch is introduced between the two contacted surfaces through a mechanical force, the statement said.

New coal-fired power plants in India likely to end up stranded: IEEFA

Much of India’s 33 gigawatts (GW) of coal-fired power capacity currently under construction and another 29 GW in the pre-construction stage will end up stranded due to competition from renewables, according to the Institute for Energy Economics and Financial Analysis (IEEFA). “Coal-fired power simply cannot compete with the ongoing cost reductions of renewables. Solar tariffs in India are now below even the fuel costs of running most existing coal-fired power plants,” said Kashish Shah, research analyst at IEEFA and author of the report. He said that in the past 12 months no new coalfired power plants have been announced, and there has been no movement in the 29 GW of pre-construction capacity. Despite these headwinds, the Central Electricity Authority had projected that India would reach 267 GW of coal-fired capacity by 2030 which would require adding 58 GW of net new capacity additions – about 6.4 GW annually but the report said that it is ‘highly improbable’.

Power ministry extends timeline for transmission charges waiver for RE

The power ministry has announced the extension of timeline by two years for waiver on inter-state transmission charge for electricity generated from solar and wind sources. Now, the waiver would be available till June 30, 2025. Earlier, it was applicable till June 30, 2023. Besides, the waiver would now be available for Hydro Pumped Storage Plant (PSP) and Battery Energy Storage System (BESS) projects also. The order promotes the development of solar, wind, Hydro Pumped Storage Plant and Battery Energy Storage System, trading of RE in the power exchanges and seamless transmission of RE power across the states. The waiver of ISTS charges has also been allowed for Hydro PSP and BESS projects to be commissioned up to June 30, 2025.

The waiver of transmission charges has also been allowed for trading of electricity generated/ supplied from Solar, wind, PSP and BESS in Green Term Ahead Market (GTAM) and Green Day Ahead Market (GDAM) for two years i.e. till 30th June 2023.

Soon, industrial units can buy 100% renewable power

Industrial units and businesses across the country will soon be able to meet their entire power requirement via renewable energy (RE) sources, a move that could boost their goodwill image and help reduce their carbon footprint. Announcing a ‘green tariff mechanism’ towards this end, Union power minister RK Singh said the necessary guidelines would be issued shortly. Currently, in most parts of the country, discoms supply power to industries from a common pool created out of purchases that include thermal and hydel power too, besides RE. However, experts pointed out that green tariffs could vary from state to state, and for discoms which had contracted substantial quantum of

renewable energy in the earlier years — when solar and wind power tariffs were significantly higher than the current rates — the average RE power purchase cost could even be higher than purchase cost of conventional sources of energy. A provision for a separate green tariff is also seen to reduce the hesitation of discoms in going for power purchase from RE sources, as this mechanism will not impact general tariffs. In order to manage the infirm nature of RE power, discoms have to make alternative arrangements to procure balancing electricity for stabilising the grid.

Only 9% of renewables announced since 2018 currently being installed: Report

Among the 84,408 mega-watt (MW) of largescale renewable energy projects announced since the beginning of 2018, only 8,039 MW are currently under-construction and the remaining capacities are still under various stages of implementation, a report jointly released by Ficci and Ernst & Young pointed.

The report, which tracked the development of 332 renewable energy projects of 84,408 MW capacity announced since 2018, found out that tariffs have already been discovered through auctions for 57,154 MW renewable energy projects, but these are under various stages of signing power purchase agreement (PPA), getting approvals from regulators, completing financial closure, land acquisition and seeking permission for grid interconnection.

Currently the installed renewable energy capacity in the country is 95,656 MW, and the report says that cumulative capacity addition in 2021 and 2022 is expected to be 17,100 MW. This pace makes it impossible to achieve the target of 1,75,000 MW of renewable energy capacity by 2022-end.

IREDA invites bids for setting up solar manufacturing units under PLI scheme

State-owned Indian Renewable Energy Development Agency Ltd (IREDA) has invited bids from solar module manufacturers for setting up solar manufacturing units under the Centre's Rs 4,500-crore production linked incentive (PLI) scheme. The MNRE has appointed IREDA as the implementing agency for the scheme. The Union Cabinet had approved Rs 4,500 crore scheme to boost domestic manufacturing of solar Photo Voltaic (PV) modules. The last date for submitting applications is June 30. The selection process for the successful bidders is to be completed by July 30.

Domestic manufacturers cry foul; seek additional duties on solar imports

In yet another blow to the solar developers in India, the Directorate General of Trade Remedies (DGTR) under the Ministry of Commerce has launched a probe into the dumping of solar equipment by China, Thailand, and Vietnam, based on a complaint by domestic manufacturers.

This could currently put projects with a capacity of 53.6 GW that are currently under construction at stake, out of 7 GW are due for completion by the end of FY21.

Per industry estimates, a back-of-the-envelope calculation for solar projects in India says that $500 million is required to construct per gigawatt worth of projects. This would result in projects worth over $25 billion (over Rs. 1.8 lakh crore) at risk. Another 24.1 GW of projects were tendered, but auctions were pending as of Q1 FY21. Currently, a safeguard duty of 14.5% exists on solar imports coming into the country, which expires at the end of July. The Ministry of New

and Renewable Energy (MNRE) has also put in place a basic customs duty (BCD) of 40% on modules and 25% on cells, which will come into effect from April, 2022.

Hydro power major SJVN earns profit of Rs 1,633 crore in 202021

Chairman and managing director (CMD) of public sector SJVN Limited NandLal Sharma has said the company had earned a net profit of Rs 1,633.04 crore during the financial year 2020-21 against Rs 1,557.43 crore earned during the previous financial year 2019-20, registering an increase of Rs 75.61 crore. He said during the financial year 2020-21, SJVN had netted a total income of Rs 3,213.07 crore against Rs 3,095.24 crore during the past year registering an increase of Rs 117.83 crore. The Earning per share of a face value of Rs 10 has increased to Rs 4.16 against Rs 3.96. he said. The public sector SJVN had generated 9,224 million units of electricity from its five power stations comprising of two hydro power stations in Himachal Pradesh, two wind power stations and one solar power station in Maharashtra and Gujarat against design energy of 8,700 million units. Sharma also added that SJVN had entered into an agreement with Gujarat UrjaVikas Nigam for implementing a 70 MW solar power plant in Gujarat. He said SJVN’s financial performance during the fourth quarter of the previous financial year too had been excellent as the company had earned a total income of Rs 1,081.13 crore during the fourth quarter of the financial year 2020-21 against Rs 704.70 crore during the corresponding quarter of the previous financial year registering an increase of around 53.%.

India’s wind energy sector set to register 50 per cent growth over next five years: Report

market, is expected to add nearly 20.2 GW of new wind power capacity between 20212025, a growth of 50 per cent compared to the country’s current 39.2 GW installed capacity, according to a recent report. “The impact of COVID-19 lockdowns on India’s wind energy market was more severe than anticipated, with only 1.1 GW installed out of the 3.3 GW originally forecasted for 2020,” said the report published by Global Wind Energy Council (GWEC) and MEC Intelligence. It added that the pace of new installations was likely to double over the next two to three years compared to the average annual installations since 2017 when the market began to slow down.

India currently has a pipeline of projects of 10.3 GW in both Central and state tenders, which are expected to drive installations until 2023. It said that over the next five years, 90 per cent of new installed wind capacity would come from central tenders, followed by corporate procurements and state markets.Wind would be the central axis of renewable energy portfolios as the country moves from renewable energy making up less than 10 per cent of its energy matrix at present, to more than 30 per cent by the end of this decade.