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Power
Column: India's coal and electricity shortages ease
India's coal shortage and electricity blackouts have eased in recent weeks as the seasonal decline in power demand has enabled generators to rebuild depleted coal stocks and the grid to operate with greater stability. The grid's ability to meet power demand was stretched to breaking point in October by a combination of strong underlying growth in demand, the seasonal peak, and fuel shortages, which forced many generators offline. But the seasonal decline in power demand as temperatures have cooled since then has allowed generators to rebuild stocks and helped improve the grid’s margin of spare capacity. Coal stocks at power stations have climbed to 13.7 million tonnes, up from just 8.1 million at the end of September, though still far below the level two years ago of 21.2 million. Power generators' stocks are now sufficient for around 8 days of current consumption, up from just 4 days at the end of September, according to the Central Electricity Authority. Stocks are still rated critically low at 63 out of a total of 135 plants, but the number is down from 116 in mid-October, and those plants account for 75 Gigawatts of capacity, down from 142 GW last month.
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Indian power plants imported 47% less coal during April-August this year compared to the period last year due to high prices of the fuel in international markets. During FY 2021-22 upto August 21, the imports of non coking coal used mainly in the power sector decreased to 15.24 MT from 28.69 MT during the same period of FY 2019-20. Due to substantial reduction of import of Non Coking Coal in the current year, the total import of coal has also reduced to 94.15 MT in the period from April to August 2021 compared to 107.01 MT during the corresponding period of FY 2019-20, a decrease of about 12%. In the first five months of the financial year 2021-22 up to August 2021, the import of all varieties of non coking coal reduced to 70.85 MT from 84.44 MT during the corresponding months of the financial year 2019-20 representing a decline of about 16.09%.
Electricity provided in every village, home in India: Power minister R K Singh
Union power minister R K Singh claimed the government has provided electricity in "every village and every house" in the country and if any settlement or home remains untouched, officials should be informed about it. The Minister of Power and New & Renewable Energy said the Centre has set up 1.59 lakh km long power grid and provided electricity in every household. Madhya Pradesh is fast heading towards generating 50 per cent of the country's total energy requirement through solar source as per Prime Minister Narendra Modi's target of achieving that goal by 2030. He said MP is generating 22,000 MW of electricity per day. The government is generating power from all available sources, including water (hydro), coal ((thermal), air (wind) and sun (solar).
Peak power demand deficit almost wiped out, in 2020-21, says Union power ministry
The Union power ministry has said that peak power demand deficit in the country was almost wiped out in 2020-21 period. Providing statistics, the ministry said the deficit stood at 0.4 per cent in 2020-21 compared to 16.6 per cent in 2007-08 and 10.6 per cent in 2011-12. In the current year (2021-22) till October, the peak power demand has been (-)1.2 per cent and the marginal spike was attributable to the annual post monsoon pressure on power output. This is also likely to normalise by the end of the year, the ministry said in a statement. According to the statement, India had a massive power deficit of 16.6 per cent in 2007-08 and in 2011-12, it was 10.6 per cent. Through the multi-pronged, comprehensive and aggressive interventions of the government, this deficit is near about wiped out, consistently over the last three years -- 0.4 per cent in 2020-21, 0.7 per cent in 2019-20 and 0.8 per cent in 2018-19, the statement said. This transformation from an acutely power deficit country to a situation of demand being met, except for an extremely marginal shortfall of less than 1 per cent, has been made possible by the schemes brought in by the current government to address the unhappy situation, it noted.
R K Singh asks officials to focus on storage of surplus energy
Power Minister R K Singh has asked senior government officials central PSUs, renewable energy developers, PSP developers and battery manufacturers to focus on the storage of surplus energy in the country. The minister emphasized that the objective should be to ensure that no energy is lost. "For that, we need to be in a position to store all the energy, which is going to be surplus at any point of time." Singh stated that some storage needs to be added with the generation to ensure round-theclock renewable energy.
He further directed to prepare separate guidelines on the treatment of energy storage and resource adequacy. To meet the target of 500 gigawatt (GW) renewable energy by 2030, the minister directed to work out the requirement of storage capacity year-wise in keeping with the upcoming addition of solar and wind projects.
The Power Ministry has asked states to provide for automatic pass through in tariff change in costs on account of change-in law or power purchase costs. This will result in less working capital requirements by the discoms, leading to less costs of power for the consumers. The ministry also stated that state government have the powers to give subsidy in consumer tariff, by advance payment of subsidy to distribution companies under Section 65 of the Electricity Act. The state commissions are requested to place the mechanism in operation with immediate effect. Along with this, the ministry has asked all stakeholders in the power sector value chain to ensure timely recovery of cost, which involves the cost pass through by generating companies to the distribution companies, or discoms, and from the discoms to the consumer. Section 62(4) of the Electricity Act provides that tariff or part of any tariff can be amended more frequently than once in any financial year in respect of any changes expressly permitted under the terms of any fuel surcharge formulae as may be specified.
State discoms to pay higher power tariffs if fuel costs spike
In a move aimed at ensuring timely compensation to power generating companies for any post-contract spike in fuel costs, the Union power ministry has asked state electricity regulators to adopt an ‘automatic pass-through model’, which will require the state-run power distribution companies (discoms) to pay higher tariffs to power plants as soon as the cost of fuel escalates. The move is seen to cut the delays traditionally seen in the process of vetting power costs and improve the liquidity position of power generators. However, a fallout of the move could be a further rise in discoms’ losses, if the end consumers are spared from the burden, under political pressure. The step was taken by the power ministry after assessing the recent coal crisis scenario in the country, when many power plants had run short of the fuel. Private power plants have to pay for the fuel in advance to coal companies, and low liquidity prevents them from keeping adequate stocks at the generating stations.
8,982 crore released for payment of subsidies to DISCOMs
The State government has informed the Legislative Assembly that it had released 8,982 crore for the 2020-21 and 2021-22 financial years (4,230 crore and 4,752 crore respectively) towards the subsidies payable to the power distribution companies (DISCOMs). A sum of 13,390 crore is due to the DISCOMs towards subsidies on power connections to the agriculture and aquaculture sectors and Scheduled Castes and Scheduled Tribes (SCs and STs) and arrears. In total, 12,812 crore has been sanctioned to them through budget release orders for 2020-21 (6,709 crore) and 2021-22 (6,103 crore). The government said that 74.75% of the headworks of the Polavaram irrigation project and 20.19% of the land acquisition and relief and rehabilitation works were completed. The government pegged the total expenditure incurred on Polavaram project till November 16, 2021 at nearly 18,341 crore and the total funds released by the Centre through the Polavaram Project Authority was put at approximately 11,493 crore.
PM Modi welcomes US to International Solar Alliance
Prime Minister Narendra Modi welcomed the US joining the International Solar Alliance (ISA) and said this will further strengthen the alliance in its shared quest of harnessing solar energy for a sustainable planet. The United States became the 101st member country of the India-led International Solar Alliance (ISA), as US Special Presidential Envoy for Climate John Kerry signed the ISA framework agreement to catalyse global energy transition through a solar-led approach. This will further strengthen the alliance in our shared quest of harnessing solar energy for a sustainable planet, Modi said. Ministry of External Affairs Spokesperson Arindam Bagchi said on Twitter, "More power to solar! A very warm welcome to USA as it joins the International Solar Alliance at COP26. With this, USA becomes the 101st country to sign the framework agreement of the solaralliance.”
No transmission charge waiver for green power projects from July 2028
In a move that can be seen to expedite the installation of renewable energy projects in the next few years, the Union power ministry has said that 100% inter-state transmission (ISTS) charge will be waived off power supplied by solar and plants commissioned on and after July 1, 2028. Currently power distribution companies (discoms) do not have to pay ISTS charges for solar and wind-based electricity, and the waiver was used as an incentive to encourage renewable power capacity addition. The government has also relaxed the norms for availing ISTS charge waivers for hydro pumped storage plant (PSP) and battery energy storage system (BESS) projects. Earlier, these projects were eligible for waiver benefits only if at least 70% of the electricity used by these systems are supplied from wind or solar power plants. Now, they can get the benefits even if they source if at least 51% of the electricity from wind or solar projects. ISTS transmission charges shall be waived for solar, wind and PSP projects for 25 years from their commissioning, while BESS projects can avail the waiver for 12 years only. Green hydrogen plants, commissioned within July 30 2025, will also receive ISTS charge waivers for the first eight years of their operation. Renewable energy-based electricity being traded in the spot power markets (green dayahead and green term-ahead) will also be entitled to ISTS charge waiver till July 30, 2025.
India's state coal companies target installing 5.56 GW renewable power by 2030
India's state-run coal companies are aiming to install 5.56 GW of renewable power capacity by 2030 and take other measures designed to cut CO2 emissions in line with recent pledges made at the UN Climate Change Conference in Glasgow, the Ministry of Coal said in a statement. The renewable capacity additions planned by India's largest coal miner Coal India Ltd. and its subsidiaries, along with other state-run coal miners Singareni Coal Company Ltd. and NLC India Ltd., will see an investment of over Indian Rupees 150 billion ($2.02 billion) by 2030, taking their combined installed renewable capacity to 7 GW. India's zero-carbon generating capacity renewables, nuclear and hydro power -- stood at 156.35 GW at the end of October, representing 40% of national capacity of 390.79 GW, according to the New and Renewable Power Ministry. India had a solar power capacity of 45.61 GW and wind power capacity of 39.69 GW at end August. India has pledged to raise its renewable capacity target from 450 MW to 500 GW by 2030 and cut its emissions intensity per unit of GDP by
45% by then from 2005 levels. It has also set itself a net zero target for 2070
Indian government expands budget for PV manufacturing scheme
Bidders who failed to win projects under the Indian government’s production-linked incentives scheme for solar manufacturing still stand a chance to secure funding, because the authorities are providing US$3.2 billion (AU$4.3 billion) of additional funding for the subsidy program. Power Minister RK Singh said that the government has approved the ministry’s proposal to expand funding. The additional funds will help more manufacturers under the incentives scheme, paving the way for India to become a solar panel manufacturing hub and exporter. Jindal India Solar, Shirdi Sai Electricals and Reliance New Energy Solar have already secured funds under the incentives scheme to support gigawatt-scale production of high-efficiency solar modules. Other companies – including Adani Infrastructure, First Solar, Coal India, Larsen & Toubro, Renew Solar, Tata Power, and Waaree Energies – are on the waiting list to obtain similar support. Singh said that at present, India has a solar module production capacity of 8.8 GW and cell capacity of 2.5 GW. The incentives scheme tender drew bids for 54.5 GW of solar equipment production capacity.
Govt plans to install 6,000 charging stations across 9 expressways: Mahendra Nath Pandey
The government is planning to install 6,000 charging stations for electric vehicles across nine expressways in the country, said Dr Mahendra Nath Pandey, minister of heavy Industries at Automotive Research Association of India (ARAI). He also asked ARAI to develop technology to reduce charging time.
According to the minister, the sale of EVs in India has increased drastically in the last few months due to various schemes and subsidies provided by the government. “However, there are various challenges that we have to counter, including the price and the charging infrastructure. Pandey emphasised on the government’s FAME (Faster Adoption and Manufacturing of Hybrid and EV) scheme I and II which has been extended by another two years to March 31, 2024. “The production-linked incentive (PLI) scheme will lead to an investment of ₹42,500 crore and will further accelerate manufacturing of components and batteries in India. Considering the increase in the usage of drones in the coming years for various applications, the ministry of heavy industries has sanctioned 120 crore for research and other related work in this regard
Gujarat Chief Minister Bhupendra Patel has said that the state will consolidate its position as the renewable energy (RE) capital of India by 2025. Pointing at the development initiatives taken by the state government, Patel said, "Gujarat's development will witness many mega infrastructure projects and one such megaproject is Dholera, India's First Greenfield Smart City. A fin-tech hub is being set up and incentives for aircraft-leasing companies are being given. Gujarat will soon become a renewable energy hub. By 2025, Gujarat will consolidate its position as the renewable energy capital of the country." As per the estimates by the state government, Gujarat's renewable energy power generation
capacity, carried by policy initiatives and support from good investors is expected to escalate to 38,466MW by 2025. As per the state Energy and Petrochemical Department, Gujarat's present cumulative installed power generation capacity from renewable energy sources like solar, wind, biomass, and bagasse is about 13,152 MW
Government issues list of modules & manufacturers eligible for its projects
In yet another boost for India's domestic solar manufacturing industry, the government has issued an all-Indian list of modules and manufacturers to be used for its projects. This approved list of models and manufacturers (ALMM) released by the Ministry of New and Renewable Energy (MNRE) comes a day after the announcement of the much-awaited basic customs duty on Chinese solar imports. Only the 23 manufacturers and their vetted modules included in the list will be eligible for use in government and government-assisted projects, schemes, and programmes for projects bid-out on or after April 10, 2021, the notification said. The basic customs duty (BCD) will be imposed on solar modules and cells, which will attract a 40 per cent and 25 per cent charge respectively. Already bid-out projects will not be exempted from the BCD, the ministry had clarified
Gas-based power plants to be allowed in coastal regulation zone in Andaman & Nicobar Islands
Seeking to meet energy requirements of the islanders while reducing the dependency of Andaman & Nicobar Islands on highly polluting diesel-based power generation, the Centre has proposed allowing gas-based power plants within 'Island Coastal Regulation Zone' in bigger islands with geographical areas of more than 100 sq. km. The environment ministry has, to this effect, issued two draft notifications. Final decision would be taken on this after mid-January next year after analysing suggestions and views of stakeholders including environmentalists and local residents in the next two months. Besides providing cleaner energy to islanders at a low cost, the move also assumes significance in view of India’s attempt to augment its strategic capabilities by improving infrastructure in the region against the backdrop of China’s 'One Belt One Road initiative' and its naval outreach.
India needs to tap hydro resources to achieve 500 GW RE capacity target: R K Singh
In a bid to achieve the target of installing 500 GW (giga watt) renewable energy capacity by 2030, India needs to tap its hydro resources, Union Minister R K Singh has said. The Minister has directed NHPC to exploit hydro resources in the country to become one of the largest hydro power companies in the world. The Minister said that the projects which were stalled for long before being resumed recently. The 2,000 megawatt Subansiri lower hydroelectric project (in Assam and Arunachal Pradesh) is progressing well. In Dibang (dam), all hurdles have ended and 3,000-MW project will also begin. NHPC Ltd presently has an installation base of 7071.2 MW from 24 power stations including 2 projects in JV mode. Besides, the company is also making progress in the solar and wind energy sectors. It has commissioned 103.13 MW of solar, rooftop solar and wind energy projects at various locations in India.
