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Power
THERMAL
India power binges on coal, outpaces Asia
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India's coal-fired power output has increased much faster than any other country in the Asia Pacific since Russia's invasion of Ukraine, underscoring the challenges the world's third-largest greenhouse gas emitter faces in weaning its economy off of carbon. Coal fuels nearly threequarters of the power output of India. Use of coal globally, including in power generation, has grown since Russia's invasion of Ukraine in late February sent prices of other fossil fuels surging, derailing efforts to transition to cleaner fuels. But the increase in India's coalfired power output has outstripped its regional peers, data from the government and analysts showed. India's coal-fired power output increased more than 10 percent year-on-year from March to October to 757.82 terawatt hours, an analysis of government data shows, as electricity demand increased off the back of a heatwave and pickup in economic activity. The government expects this output to grow at the fastest pace in at least a decade in the current fiscal year ending March 2023. India is also the only major country in Asia, besides Japan, where the contribution of coal-fired power in overall electricity production increased in the six months since March, the data shows.
SHAKTI Scheme: New and more transparent coal linkage policy
The Ministry of Power launched a scheme for the procurement of aggregate power of 4500 MW for five years under B (v) of the SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy. The scheme is supposed to be beneficial not just for the infrastructure sector, but also for the public sector banks which have huge loans unpaid at the end of the power companies. The companies, which did not have coal linkages before the introduction of the Shakti Scheme, would benefit when they would get domestic fuel supplies through auction at competitive rates. The scheme also aims to reduce the dependence on imported coal and promote domestic industries. This scheme is expected to help the states that are facing power shortages and also help generation plants to increase their capacities.
The Ministry of Power has launched a scheme for procurement of aggregate power of 4500 MW on competitive basis or five years on Finance, Own and Operate (FOO) basis under B (v) of Shakti policy. PFC Consulting Limited (a wholly owned subsidiary of PFC Ltd) has been designated as the nodal agency by the Ministry of Power. Under the scheme, PFC Consulting Ltd has invited bids for the supply of 4,500 MW. The supply of electricity will commence from April 2023. The Ministry of Coal has been requested to allocate around 27 MTPA for this. The utilities that have evinced interest for the scheme are Gujarat UrjaVikas Nigam Ltd, Maharashtra State Electricity Distribution Company Ltd, Madhya Pradesh Power Management Company Ltd, New Delhi Municipal Corporation and Tamil Nadu Generation and Distribution Corporation Ltd. The last date for the bid submission is 21 December, 2022. It is for the first time that bidding is being carried out under B(v) of Shakti scheme. At the same time, the revised PPA for medium term is being used in this bidding. This scheme is expected to help the states that are facing power shortage and also generation plants to increase their capacities.
Central Electricity Authority projects 9 per cent jump in peak power demand to 235GW in April 2023
Central Electricity Authority (CEA) on Tuesday said peak power demand may shoot up by nine per cent to 235 GW in April 2023 and called for proper planning to avoid recurrence of energy crisis. In April this year, the peak power demand was around 215GW. The country had witnessed unprecedented coal demand from the power sector during the summer this year after COVID curbs were eased. Noting that the thermal power capacity of the country will go up till the transition period, he said the energy security for the country is the primary concern though India is committed to renewable sources. Despite the fact that the total coal-fired power capacity will rise, its share in the total energy mix will reduce to 50 per cent from 75 per cent now, and in terms of installed capacity, it will shrink to 30-35 per cent, he said. Prasad stated that plans are afoot for plants with a total 30 GW capacity to be installed at coal mine pitheads amid logistics and cost concerns.
Have energy needs, no cut for coal phase-down: Power minister R K Singh
Asserting that it was wrong to expect India to start reducing its coal capacities, Union Power Minister R K Singh said the country will continue
to set up new coal-fired power plants to meet its growing electricity needs — making it clear the promised phase-down of coal will happen in terms of its declining share in the overall fuel mix and not as an absolute cut in existing capacities. “As per the targets we have set for 2030, the fossil fuel capacity (in electricity generation) would come down from the current about 60 per cent to about 35 per cent. This is the phase-down. If you are talking in absolute terms, the numbers (installed capacity of coal) will go up because our demand (for electricity) is going up (between now and 2030). In percentage terms (as share of overall production), it will come down,” Singh said
PFC Consulting invites bids for supply of 4,500 MW power to state utilities
State-owned PFC Consulting Ltd has invited bids for supply of 4,500 MW power for five years beginning April 2023 to different utilities in states, including Delhi, Maharasthra, Madhya Pradesh, Gujarat and Tamil Nadu. The document seeking request for proposal floated by PFC also showed that five utilities have evinced interest for procuring as much as 3910 MW. The utilities that have evinced interest for scheme are Gujarat UrjaVikas Nigam Ltd (1000MW), Maharashtra State Electricity Distribution Company Ltd (500MW), Madhya Pradesh Power Management Company Ltd (660MW), New Delhi Municipal Corporation (250MW), and Tamil Nadu Generation and Distribution Corporation Ltd (1500MW), it showed. An official said that more states are likely to join the scheme and therefore the quantum of power supply has been kept higher at 4,500 MW. The supply of power under the power purchase agreement for medium term or five years must begin in April, 2023. The last date for the bid submission is December 21, 2022. After completing the bidding procedure the letter of award for supply of power would be given in January, 2023.
India is discussing a plan to keep old power stations running for longer, arguing that they’re needed to meet demand until enough energy storage can be built. Continued operation of the plants which have already completed 25 years of operation will be in the interest of the electrical grid, the Power Ministry said in a note for consultation. Power companies would keep their aging plants in a separate “pool" if the plan goes ahead, according to the ministry’s note. States wishing to buy electricity could then request supplies from the pool. The power plan would help plants that produce expensive electricity -- such as gas-fired units and coal generators located far from mines -- by pooling them with those supplying cheaper energy. It would also allow the government to revive some gas-power capacity that will be key to keeping the grid stable as we inject more solar and wind energy.
SC directs all state electricity regulatory panels to frame norms for fixing tariff
The Supreme Court has directed all state electricity regulatory commissions to frame regulations under the law prescribing terms and conditions for determination of power tariff within a period of three months. The important direction from the top court came in a verdict by which it dismissed the appeal of TATA Power Company Limited Transmission (TPC-T) against a judgement of the Appellate Tribunal for Electricity (APTEL) which had upheld the grant of electricity transmission license to Adani Electricity Mumbai Infra Limited (AEMIL). "We direct all State Regulatory Commissions to frame Regulations under Section 181 of the (Electricity) Act on the terms and conditions for determination of tariff within three months from the date of this judgment," the court said.
While framing these guidelines on determination of tariff, the Appropriate Commission shall be guided by the principles prescribed in Section 61, which also includes the NEP (National Electricity Policy) and NTP (National Tariff Policy 2006), it said. The MERC and APTEL have arrived at concurrent findings that the 1000 MW HVDC (High Voltage Direct Current) Aarey-Kudus project is an 'existing project' for the purpose of the applicability of the GoM's GR (Government of Maharashtra's Government Resolution) 2019. This Court deciding a statutory appeal under Section 125 of the Act cannot interfere with the concurrent findings on a question of fact. Nonetheless, even on an independent assessment of the facts, the HVDC project is an existing project," Justice Chandrachud, writing the judgement for the bench, said.
RENEWABLES
India’s electricity shortage erased by renewables growth: Kemp
India’s electricity transmission system passed the difficult post-monsoon period this year with far less stress than in 2021, following a major effort to improve coal stocks and a big expansion of renewable generation capacity. Grid frequency fell below the minimum target of 49.9 cycles per second (Hertz) just 5% of the time in October 2022 compared with 11% of the time a year earlier. There was no repeat of the widespread blackouts which plagued many parts of the country in late September and early October last year when coal-fired power plants ran short of fuel and were unable to keep up with demand. The result was less pressure on coal, gas and diesel generators, leaving more reserves to meet daily peaks and temperature-related variations in demand. Hydro, wind and solar supplied 25.4% of all electricity consumption in October, up from 22.8% twelve months earlier. Total installed solar and wind generation capacity increased to 119 Gigawatts (GW) from 103 GW over the period. It can be said that renewables are starting to bend the curve of coal consumption for power generation and reduce the future trajectory.
India to develop SMR with up to 300 MW capacity for Clean Energy transition: Singh
India is taking steps for development of Small Modular Reactors (SMR) with up to 300 MW capacity to fulfill its commitment to Clean Energy transition, said Union Minister of state for Science and Technology, Jitendra Singh. He added that the exploration of new clean energy options is in tune with Prime Minister Modi’s roadmap for clean energy transition through bold climate commitments. He said that India has already taken steps for clean energy transition with penetration of nonfossil-based energy resources and achieving net-zero by 2070. “Nuclear in terms of base load power can play a big role in the de-carbonization strategy. It is in this context that the role of nuclear energy will be critical for clean energy transition of not just India but for the entire world." The minister added that an impressive number of measures have been taken to promote renewable energy in the country. “India today stands at number four in the RE installed capacity across the world, after China, Europe and United States. “These measures also conform to the Prime Minister’s ‘Aatmanirbhar Bharat’ goal, where India contributes significant value to global value chain."
India ranked 8th on Climate Change Performance Index 2023
India, the world’s third largest energy consumer, has jumped two positions higher and is now ranked at the eight spot in the Climate Change
Performance Index (CCPI) 2023. India rose two spots to rank 8th in this year’s CCPI and earns a high rating in the greenhouse gas (GHG) emissions and energy use categories, with a medium for climate policy and renewable energy. It is on track to meet its 2030 emissions targets (compatible with a well-below-2°C scenario). Power Minister RK Singh highlighted that India’s CCPI ranking is a testimony to the leadership shown by Prime Minister NarendraModi towards addressing global climate change despite pandemic and tough economic times.However, the index pointed out that India’s renewable energy pathway is not on track for the 2030 target. Since the last CCPI, India has updated its Nationally Determined Contribution (NDC) and announced a net-zero target for 2070.
India wants solar manufacturers to bid for $2.4 billion in aid
India is looking for takers for $2.4 billion in government aid it’s offering to stimulate domestic manufacturing of solar power equipment. The state-run Solar Energy Corp. of India is seeking bids from solar manufactures for 195 billion rupees of financial incentives, according to documents published on the agency’s website. The government is seeking to grow the country’s module- making capacity to as much as 90 gigawatts, enough to meet its own requirements and serve export markets. Reliance Industries Ltd. and Adani Group, industrial giants run by billionaires MukeshAmbani and GautamAdani, were winners in a previous round of solar manufacturing incentives and are eligible to apply again for building additional capacity, the bid documents show. The financial assistance is part of Prime Minister NarendraModi’s plan to turn the nation into a manufacturing powerhouse, creating jobs and reducing imports. The focus on local production also helps India position itself as an alternative to China amid a global push to diversify supply chains in the in the wake of the pandemic
.Rooftop solar capacity installa-
tions fall 29 pc to 320 MW in JulSep: Mercom report
Rooftop solar capacity installations in India fell 29 per cent to 320 megawatt (MW) in July-September 2022, according to Mercom Research India. The country added 448 MW rooftop solar capacity in the same quarter a year ago. During January-September, the installations at 1,165 MW were also down 11 per cent compared to 1,310 MW in the corresponding ninemonth period of the last year. In the third quarter of 2022, 46 per cent of rooftop solar capacity was installed in the industrial sector, followed by 32 per cent in residential, commercial 21 per cent and the remaining in the government sector. According to the report, at the end of Q3 2022, cumulative rooftop solar installations reached 8.3 GW. The tendering process increased 46 per cent year-on-year to around 311 MW of rooftop solar projects in July-September 2022, of which 33 per cent were announced by the Uttar Pradesh New and Renewable Energy Development Agency, 16 per cent by Solar Energy Corporation of India (SECI) and 51 per cent by other state agencies. Gujarat became the leading state with the highest rooftop solar installations, followed by Maharashtra and Rajasthan. The top 10 states accounted for approximately 73 per cent of cumulative rooftop solar installations.
Centre to approve Rs 32K cr investment for 2,880 MW Hydropower project in Arunachal Pradesh
Union Power Minister R.K. Singh assured Arunachal Pradesh Deputy Chief Minister Chowna Mein that the Union government would soon approve an investment of Rs 32,000 crore for the 2,880 MW generation capacity Dibang hydroelectric project in the state, officials said. Through interventions like local area develop-
ment, associated economic activities and liberal relief and rehabilitation policies, these projects would bring in an all-round development of the area. These projects would also ensure a major flood moderation in Arunachal Pradesh, thereby avoiding damages worth hundreds of crores. A clear timeline was fixed to develop these projects. The memorandum of agreements with central PSUs for five projects with 2820 MW capacity would be ready for signature in a month's time. In addition, six projects with 6063 MW capacity would be ready for investment in the next one year. If well planned and supported, Arunachal Pradesh has a potential to contribute 10 per cent of this target through its hydro potential. The free supply of power to the state, coming from the 600 MW Kameng project which was dedicated to the nation by the Prime Minister on November 19. 2000 MW lower Subansiri hydropower project would be commissioned soon through which the state will get Rs 400 crore per year and Rs 70 crore in local area development, the statement said.
India to pitch for international biofuels alliance at G20: Hardeep Singh Puri
India at the upcoming G20 meeting plans to pitch for a global alliance on biofuels on lines of the highly-successful international solar alliance, Oil Minister Hardeep Singh Puri said. India, the world's third largest oil-consuming and importing nation, is now pushing for greater use of biofuels extracted from sugarcane, cereals and agri waste as a means to cut reliance on crude oil.
With nations from Brazil to the US producing biofuels, the alliance would look to develop an ecosystem for fuel standards and engines and collaboration on technology for faster adoption. Puri said India is already using petrol mixed with 10 per cent ethanol extracted from sugarcane and other agri products (90 per cent petrol, 10 per cent ethanol). India imports 85 per cent of its oil needs and doping ethanol with petrol is aimed at reducing the import dependence. Also, biofuels have lesser emissions and aid in meeting carbon goals. Puri said India is diversifying its oil import basket, tapping newer supply regions. From buying oil from 27 nations, the basket has now expanded to 37, he said.
The Union Ministry of New and Renewable Energy (MNRE) has published the draft tender document for offshore wind energy projects in Tamil Nadu, and has invited comments from prospective bidders before November 18.
According to the tender document prepared by the National Institute of Wind Energy (NIWE), offshore wind power developers (OWPD) will be selected for leasing of sea-bed areas equivalent to 4,000MW of offshore wind power projects off the coast of Tamil Nadu through international competitive bidding. “Specific identified offshore wind sub-blocks B1, B2, B3, B4 and G1 off the coast of Tamil Nadu in the Gulf of Mannar will be leased out for offshore wind project and the selected developer will have the exclusive rights over the allocated sea block to carry out required study survey and subsequent project development in accordance with this tender and lease agreement,” reads the draft tender.
A Tangedco official said that it will take at least six years to complete the project. “The MNRE wants to evacuate the energy generated from off-shore wind mills to the central grid, but we have been objecting to it. We want it to be linked to the state grid,” said the official.
