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Power
THERMAL
India to see biggest jump in energy demand globally: IEA
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India is likely to see the world's biggest rise in energy demand this decade, with demand climbing 3 per cent annually due to urbanisation and industrialisation, the International Energy Agency (IEA) said. While the push for renewable energy will see it meeting as much as 60 per cent of the growth in demand for power, coal will continue to meet a third of overall energy demand by 2030 and another quarter will be met by oil. Even though India continues to make great strides with renewables deployment and efficiency policies, the sheer scale of its development means that the combined import bill for fossil fuels doubles over the next two decades, with oil by far the largest component. In India, coal meets a third of growth with demand rising above 770 million tonnes of coal equivalent (Mtce) by 2030, and continuing thereafter before peaking in the early 2030s. Oil demand meets a further quarter of the energy demand growth and rises to nearly 7 million barrels per day by 2030 from 4.7 million bpd in 2021. Coal generation is projected to continue to expand in absolute terms, peaking around 2030, though its share of electricity generation falls from just below 75 per cent to 55 per cent over this period.
India’s power sector needs competitive bidding to maintain its growth momentum
The public sector companies – right from generation to transmission and distribution – have been the bedrock of India’s electricity sector for several decades. However, in the last decade or so, it is the private sector that has also made immense contribution with sizeable investments, timely execution of projects and research and development. The government has also ushered in efficiency and cost optimisation in the sector by doing away with archaic models like Regulated Tariff Mechanism or nomination route with Tariff Based Competitive Bidding, which has allowed private capital to participate in India’s energy sector’s growth story. Since the introduction of TBCB model in 2010, more than 65 projects amounting to Rs 85,000 crore have been awarded through the TBCB route with competitive bidding by both private and public sector companies. Many have successfully implemented transmission projects in strategically sensitive locations like North-East, J&K, and that too, within truncated timelines of 2-3 years. Even discovery of tariff from competitive bidding route is usually 30-40% lower as compared to cost-plus method, translating into government funds being efficiently utilized in the larger interest of consumers. This model has also led to the creation of a vast ecosystem of developers, technology providers, and financial products. Since the entire process is transparent, it also sends a positive signal to the investor community, thereby increasing India companies’ access to global debt and equity capital.
Thermal capacity build-up still key to energy security
Rising power demand following the post-covid opening up of the economy has brought thermal power generators into focus. While renewable capacities are growing at a fast pace, the dependence on thermal and hydropower will continue, considering that renewables contribute in low double digits, and may not be able to meet peak seasonal demand, said analysts. Hydropower generation is seasonal and gasbased generation has been impacted by rising natural gas prices. Hence, thermal power capacity addition is likely to continue, and even some stressed assets may find takers. Power-generation data reflects the significance of thermal power plants in the current scenario. While the overall power generation in India surged 11.9% from a year ago so far in FY23, coal-based power generation was up 12.8%, according to Elara Securities data. In September, coal-based thermal power generation rose 13.4% from a year ago against the 0.3% rise in September 2021. Thermal capacities can increase by 15-20 GW over and above those under implementation.
Govt mulls 233 GW new transmission capacity
The Ministry of Power has said the government is mulling electricity transmission for renewable energy capacity of about 233 GW, latest by 2030, across the country. "Planning of transmission system for integration of additional 52 GW potential REZ (renewable energy zone) by 2026-27 have been carried out...transmission schemes for another 181.5 GW... by 2030 have been planned and the same would be taken up for implementation in a progressive manner," the ministry told members of Parliamentary Consultative Committee. The initiatives for integration of non-fossil fuel energy are implementation of green energy corridors, transmission system for ultra mega solar power parks, transmission system for 66.5 GW renewable energy zones by 2022 and establishment of 13 RE management centres (REMCs) to address variability and uncertainty of RE (renewable energy) generation. The national grid transmission system has added transmission lines of 1,71,149ckm since 2014-15 and transmission capacity of 6,03,916 MVA since 2014-15. At present, the installed capacity of the national grid is 404 GW and the peak demand met is 216 GW.
India's power demand is set to double by 2030, which will require capacity addition and this will entail huge capital investment, Minister for Power R.K. Singh said. He also noted that to achieve energy transition towards green hydrogen, distribution companies or DISCOMS across the country will have to follow prudent and sustainable financial practices to ensure that they are viable. Singh made these observations while inaugurating the state power ministers conference in Udaipur. "Capital investments would also be required for modernising the power systems and promoting new technologies like green hydrogen, storage, offshore wind etc. to help India achieve its energy transition trajectory. To this end, it is absolutely imperative that the DISCOMS across the country follow prudent and sustainable financial practices to ensure that they are viable," he said. He also highlighted the achievements made in the recent years in power sector in terms of surplus generation capacity, development of national grid, universal access to all households and improved supply to rural areas.
40 million tonne of coal stock will be available with thermal power plants by March: Coal minister
Union coal minister Pralhad Joshi announced that as much as 40 million tonne of coal will be available with thermal power plants (TPPs) by March next year, a feat which the government has not been able to achieve until now resulting in repeated power crises in several parts of the country during peak summer or monsoon season. The minister’s announcement is significant because as TPPs in India managed to have a combined reserve coal stock of only about 2425 million tonne, which is enough to generate power for about 10 days. India faced its worst power crisis in over six years in April this year due to higher electricity demand because of a sudden heatwave which spiked the country’s power demand to an all-time high of 210,793MW on June 9. This happened despite record coal production by CIL in fiscal 2021-22. The steep electricity demand caused widespread power cuts in April, as the authorities scrambled to manage demand amid dwindling coal supplies.
Coal India asked to enhance supply to thermal power plants
With the festival season round the corner, Coal India Ltd has been directed by the government to scale up dispatch to thermal power plants. Coal companies were advised to enhance supplies to thermal power plants to help them meet the growing electricity demand in the coming few weeks. During the first half of 2022-23, Coal India had dispatched 285.6 million tonnes of dry fuel to the power sector, which is a growth of almost 17 per cent over previous year. As a result, coal stock at thermal power plants is now three times more than last year's stock, official sources said. Coal India Ltd's (CIL) production during the first half of the current fiscal was 299 million tonnes. Though there is adequate coal supply with power plants this year, Government wants to ensure that there is no repeat of last year's situation and hence the meeting was held, sources said.
Regulator can’t revise power tariff payable to discom in the guise of prudence check: SC
The Supreme Court said the electricity regulator, DERC, cannot revise or re-determine the already fixed power tariff for discoms in the guise of “prudence check and truing up” as it would amount to amending the rates to be levied from consumers. Prudence check relates to scrutiny of reasonableness of capital expenditure incurred or proposed to be incurred, while a true up claim is the expenditure incurred by a utility over and above the annual revenue.
“Revision or re¬determination of the tariff already determined by DERC on the pretext of prudence check and truing up would amount to amendment of the tariff order, which can be done only as per the provisions of sub¬Section (6) of Section 64 of the 2003 Act within the period for which the Tariff Order was applicable,” Justice Nazeer, writing a 54-page judgement, said.
Power Grid acquires SPV to build transmission project
State-run Power Grid Corporation of India said it has acquired 100 per cent equity in a special purpose vehicle (SPV) to build an inter-state transmission project for eastern and northeastern regions. The SPV was acquired for an aggregate value of about Rs 7.04 crore, including 50,000 equity shares at par at Rs 10 each along with assets and liabilities of the company as on the acquisition date (October 10). However, the acquisition price is subject to adjustment as per the audited accounts of the company, it added. The inter-state transmission system comprises upgradation works at 400/132kV Banka (Bihar) with implementation schedule of 24 months and establishment of 220kV D/C transmission lines passing through Assam and Arunachal Pradesh and bays extension works with implementation schedule of 36 months.
Smart meters helping discoms improve revenue, cut losses
Rapid roll-out of smart meters for power consumers are leading to a sharp improvement in the financial parameters of discoms (distribution companies), initial reports on the implementation of the Centre's Rs 3.3 lakh crore scheme in states show. According to a power ministry presentation made at a recent brainstorming session of state power ministers, discoms showed a sharp improvement in billing efficiency, recovery of arrears and actual consumption getting recorded in states replacing old meters with smart meters in earnest. This resulted in average monthly collection per customer rising by up to 65%. At the same time, the consumption figure per consumer too spiked by up to 42%, indicating the quantum of losses suffered by discoms earlier due to slippage - or simply theft. Around 50 lakh conventional electricity meters have been replaced with the smart new-age prepaid meters across the country, according to official figures.
RENEWABLES
India urges utilities to expedite biomass co-firing
India's power ministry has reiterated that thermal power plants must meet a minimum of 5pc biomass co-firing, with non-compliance to result in penal actions. Indian utilities were required to have been co-firing at least 5pc biomass pellets by October this year. Under the power ministry's policy, co-firing should be raised to 7pc from October 2023 for two categories of power plants those with a bowl mill or with a ball and race mill. The policy for co-firing will be valid for 25 years or until the useful life of a power plant ends, whichever is earlier. The biomass pellets must be primarily made up of agricultural residue, and the policy encourages domestic sourcing. Only 39 thermal power plants with a combined capacity of 55.39 GW have started co-firing, and have used 83,066t of biomass so far. Tenders to source 106mn t of biomass are at various stages, while orders have been placed for 4.34mn t by a total of 35 power plants. Utilities should make efforts to complete the procurement process for existing tenders as soon as possible. Plants must arrange to source shortterm supplies until tenders are finalised, as the ongoing harvesting season will expand biomass availability, the power ministry said.
Melding non-fossil energy sources Govt to set up transmission system for renewable energy zones by 2022
The Power Ministry is setting up transmission systems for renewable energy zones (REZ) with 66.5 gigawatts (GW) capacity by the current calendar year to integrate non-fossil fuel energy sources with the national grid. Besides, it will also establish 13 RE management centres (REMC) to address the variability and uncertainty of its generation and is planning a transmission system to integrate an additional 52 GW potential REZ by 2026-27. During a meeting of the Parliamentary Consultative Committee attached to the Ministry, the Power Minister R K Singh apprised the committee members of the steps being taken by the government towards creating a ‘One Nation, One Grid, One Frequency and One National Load Dispatch Centre (NLDC)’, which will help create a single power market for the world’s third-largest energy consumer.
In a first, India could export green hydrogen to Singapore from 2025: MoU details
For the first time in our history, India could export green-renewable energy from 2025, with shipments going to Singapore. A Memorandum of Understanding (MoU) has been signed between India’s renewable energy company Greenko and Singapore’s Keppel Infrastructure to explore opportunities in green hydrogen from India. The two companies are reportedly working towards an annual contract of 2,50,000tonnes to be supplied to Keppel’s 600 Mw plant in Singapore. Greenko’sMoU with Keppel, follows the company’s September deal with South Korean steel and power producer, Posco, to supply one million tonnes of green ammonia per year. Delivery is expected to begin from 2025-26 only. The report states that Greenko plans to produce 3 million tonnes of green ammonia which will cater to both the domestic and export markets. This would also help india reduce its imports of ammonia and urea by almost six million tonnes.
Centre denies project import benefit for solar projects
The union government has shut the project import route used by solar project developers to circumvent the basic customs duty on solar modules and cells and pay lower duties. In a notification dated 19 October, the union ministry of finance announced an amendment to the Project Imports Regulations, 1986 to exclude solar power projects from the purview of the norms. The project imports scheme is meant to facilitate import of machinery, instruments and apparatus among others required for setting up a new unit or for substantial expansion of an existing unit. These can be imported at a concessional duty of 7.5%. India imposed basic customs duty (BCD) of 40% on solar modules and 25% on cells with effect from 1 April in a bid to cut imports from China and boost domestic manufacturing. But several solar developers were tapping something called “project import scheme to avoid paying high duties on cells and modules. Several solar power developers seeking ways to avoid paying the duties came up against the union government that appears to be determined to plug any such circumvention.
India, France re-elected as President, Co-President of International Solar Alliance
India and France are re-elected as President and Co-President of the International Solar Alliance (ISA) at the fifth general assembly of the body. Union Power and New & Renewable Energy Minister R K Singh will be the President of ISA while ChrysoulaZacharopoulou, France's Minister of State for Development, Francophonie and International Partnerships, will be copresident of the International Solar Alliance, ISA Director General Ajay Mathur said. ISA's mission is to unlock USD 1 trillion of investments in solar by 2030 while reducing
the cost of the technology and its financing. It promotes the use of solar energy in the Agriculture, Health, Transport and Power Generation sectors. The ISA will soon operationalize Solar Facility to crowdsource investments from various donors across the globe and proposed projects in Africa will be able to purchase payment guarantees or partial insurance premium from these funds. The ISA Assembly also approved the SolarX Grand Challenge, which is planned to focus on innovation and start-ups, particularly decentralized solar energy applications that contribute to livelihoods, such as agriculture, health, and small-scale industrial applications.
Meghalaya signs agreement with NEEPCO to commission hydro power plants
The Meghalaya government signed an agreement with the state owned North Eastern Electric Power Corporation Limited (NEEPCO) for developing three hydro electric projects. These projects will be of 235 MW. Deputy Chief Minister PrestoneTynsong, who also holds the Power Department, after the agreement signing ceremony, said that the NEEPCO under the agreement would set up the Umiam stage 1, stage 2 and stage 3 hydro power plants. The Umiam stage 3 is in the final stage and NEEPCO is expected to start the implementation process soon. Both Stage-I and Stage-II would cost around Rs 1,750 crore with 70 per cent loan.
The Ministry of New and Renewable Energy (MNRE) recently issued the revised draft of the National Repowering Policy for Wind Power Projects, 2022, as the majority of old wind power projects with sub megawatt scale wind turbines are yet to be empowered. With the objectives of the Repowering Policy are optimum utilization of wind energy resources by maximising energy yield per sq km of the project area and utilising the latest onshore wind turbine technologies. The National Institute of Wind Energy (NIWE) has estimated the repowering potential of the country to be 25.406 gigawatt (GW) considering wind turbinesbelow capacity 2 MW, added the Ministry circular in this regard.It said that NIWE will issue a repowering potential map of the country considering below 2 MW capacity wind turbines. The policy lays out conditions for developers to go for repowering of their old wind turbines. The eligibility criteria for wind turbines for repowering includes – all turbines identified under the relevant BIS Act, wind turbines with capacity below 2 MW, turbines that have completed their design life, and a set of existing wind turbines over an area.
NLC India inks MoU with National Institute of Wind Energy for onshore, offshore wind power projects
NLC India Ltd., a Public Sector Undertaking (PSU) under the Ministry of Coal, has entered into a memorandum of understanding with the National Institute of Wind Energy (NIWE), an autonomous Research and Development institution under the Ministry of New and Renewable Energy (MNRE), for strategic collaboration in developing onshore and offshore wind power projects in the country.
NLCIL has taken the initiative to contribute towards national green energy targets and energy transition goals. The MoU is aimed at synergising the technical expertise of NIWE and the project development capabilities of NLCIL. The MoU also envisages reaping the benefits of repowering operating wind turbines and better operation and maintenance practices in upcoming, as well as operating wind power projects. In addition, NIWE will offer competency-based training for NLCIL in the recent developments in the renewable energy sector.
