Electricals today dec13 lowres by Electricals Today

Total pages 52 Volume 1 | Issue 11| December 2013 | `50

ELECTRICALS TODAY

THE DECISIVE TOOL FOR THE POWER INDUSTRY

DISTRIBUTION ENERGY EFFICIENCY INITIATIVES BY COMPANIES

RENEWABLES ROAD AHEAD FOR WIND ENERGY IN INDIA

MONUMENTAL SHIFT RN NAYAK, CHAIRMAN AND MANAGING DIRECTOR, POWER GRID CORPORATION OF INDIA, ON PLANS TO ENTER MANUFACTURING OF PRODUCTS

Published by ITP Publishing India

CONTENTS

22 COVER STORY

RN Nayak, chairman and managing director, Power Grid Corporation of India Limited, on plans to enter manufacturing of products

PRODUCTS

Power segment products that recently entered the market

Electricals Today | DECEMBER 2013

DISTRIBUTION

Companies are taking energy effi ciency path

GENERATION

Is tariff moving back to government's control?

RENEWABLES

Lack of will power the main challenge for wind industry

Editor's Note

ET Electricals Today

the Decisive tool for the power industry

Volume 1 | Issue 11 | December 2013

ITP Publishing India Pvt Ltd

Reason to cheer?

Notan Plaza, 3rd floor, 898, Turner Road

Deputy managing director S Saikumar

he end of the year seems to be bringing in cheer to the otherwise beleaguered power sector. Or, to put it simply, little steps taken in the first half of the current financial year have started showing results – though at a minimal level. This brings a smile on the faces of stakeholders of the power sector, who have taken severe hits in the past two years. Thanks to the tariff revision and different mechanisms for ensuring fuel linkage resulted in the return of enthusiasm in the power sector. The capacity additions in the recent past also have yielded positive results. Clubbed with capacity addition, some of the power companies’ balance sheets limped back on to the healthy track during the half-yearly results. Analysts see this as a clear indication of a resurgence in the power sector. Though a cliché, I would like to borrow words from the power sector players that “we have hit the rock bottom; from here we will have to bounce back.” At the same time, fear of temporary recovery dominates in the minds of some sections. But the best part is that there is a sense of confidence growing across the board as the sector is picking up the bits and pieces thrown to them which serve their interests. However, the wait-and-watch game will continue till the country goes to polls. The sector is hoping that the stability will return with the next government.

Renjini Liza Varghese, Editor renjini.varghese@itp.com

Bandra (West), Mumbai - 400050 T +91 22 6154 6000

Publishing director Bibhor Srivastava Sales director Jyoti Agarwal Iyer Group editor Shafquat Ali

T +91 22 6154 6038 shafquat.ali@itp.com

Editorial Editor Renjini Liza Varghese

T +91 22 6154 6034 renjini.varghese@itp.com

Advertising Business head Nidhi Agrawal

T +91 9892 417 444 nidhi.agrawal@itp.com

Studio Head of design Milind Patil Senior designer Vinod Shinde

Production Deputy production manager Ramesh Kumar

ramesh.kumar@itp.com

Circulation Distribution manager James D’Souza

T +91 22 6154 6032 james.dsouza@itp.com Disclaimer The publishers regret that they cannot accept liability for error or omissions contained in this publication, however caused. The opinions and views contained in this publication are not necessarily those of the publishers. Readers are advised to seek specialist advice before acting on information contained in this publication, which is provided for general use and may not be appropriate for the readers’ particular circumstances. The ownership of trademarks is acknowledged. No part of this publication or any part of the contents thereof may be reproduced, stored in a retrieval system or transmitted in any form without the permission of the publishers in writing. An exemption is hereby granted for extracts used for the purpose of fair review. Printed and Published by Sai Kumar Shanmugam, Flat no 903, Building 47, NRI Colony, Phase – 2, Part -1, Sector 54, 56, 58, Nerul, Navi Mumbai 400706, on behalf of ITP Publishing India Private Limited, printed at Jasmine Art printers Pvt.Ltd., A-737/3, TTC Industrial Area, Mahape, MIDC, Navi Mumbai, India and published at Notan Plaza, 3rd floor, 898, Turner Road, Bandra (West), Mumbai - 400050 Editor Renjini Liza Varghese

december 2013 | Electricals Today

Bulletin

October Peak power deficit at 3%: CEA

Increase in capacity addition is bringing down the demand-supply gap.

The peak power deficit in the country shrunk to 3% in October, as against 9.4% in the same month last year. Thanks to higher hydel generation due to heavy rains and lower industrial demand growth. Peak power deficit or shortage in electricity supply when the demand is maximum for October stood at 3,845 MW of 3%, as per the Central Electricity Authority data. "Less agricultural load and more hydel generation due to heavy monsoon are the prime reasons for reduced peak power deficit. Also the industrial sector did not grow as expected leading to reduction in demand," a CEA official said. The total peak power demand in October 2013 was 1,30,022 MW of which 1,26,177 MW was met.

In October last year, the total peak power requirement stood at 1,34,045 MW of which 1,21,473 MW was met leading to a deficit of 12,572 MW or 9.4%, the data added. Western region emerged as the best performer in October this year, registering just 0.1% deficit. The peak power deficit of the western states was 1.5% in October 2012. For northern region it slid to 6.7% against 10.6% in October 2012. The shortage in the North-eastern region grew to 4.3% in this October, as against 3.3% last year. Southern region showed the most improvement by posting a deficit of 2.2% in October as compared to a whopping 18.7%, last year. Peak power deficit of the eastern region in October is 1.3%.

Five power projects of NHPC facing cost over-runs Five power projects of state-run NHPC are facing cost over-runs due to delays in receiving environment and other regulatory clearances. The expenditure on the projects -- Teesta Low Dam IV (West Bengal), Subansiri Lower (Assam), Parbati II

Electricals Today | december 2013

(Himachal Pradesh), Nimmo Bazgo and Uri II (Jammu & Kashmir)-which are in various stages of construction, has exceeded the amount that was initially sanctioned. These projects have a combined capacity of 3,345 MW. "In the case of

Subansiri (2,000 MW), the cost of the project may be nearly doubled," the official said. The original sanctioned cost of the plant was Rs6,285.33 crore which was revised to Rs10,667.09 crore and is now likely to touch Rs12,000 crore.

BULLETIN

p12

Power minsitry sends note on discom debt rejig Power Ministry has sent the note on financial restructuring of state discoms to the cabinet for final approval. As per the proposal, the state electricity boards of Jharkhand, Bihar and Karnataka will be allowed to convert their outstanding loans, till March 2013, into bonds as part of an amendment to the discom debt restructuring package. "We have sent the note to the (Cabinet) Secretariat for the final nod," Power Secretary PK Sinha said. Karnataka along with Jharkhand and Bihar had approached the Ministry seeking this special provision. Currently, under Financial Restructuring Package (FRP), which was approved last year, 50% of the accumulated debt of discoms till March 2012 can be converted into bonds. These bonds will be issued by the distribution companies to the participating lenders, backed by state government guarantees. Balance 50% loans will be restructured by providing moratorium on principal and best possible terms for repayments.

Under the financial restructuring plan more states are being included.

Alstom to supply energy management system to PGCIL

BHEL bags Rs1,300 crore NPTC order

Alstom T&D India won a contract for Rs100 crore from Power Grid Corporation for supply of energy management system (EMS). The scope of the two contracts covers EMS packages for India’s Southern and Western Regional Load Dispatch Centres (SRLDC and WRLDC). It is anticipated that the new EMS will enable PGCIL to make fast decisions using advanced visualisation, information storage and retrieval tools. Managing Director, Alstom T&D India Limited, Rathin Basu said “Since 2002, Alstom has been a pioneer in bringing in smart technology to India’s transmission grid. It has supplied equipment to India’s three out of five Regional Load Dispatch Centres and to the National Load Dispatch Centre. This second wave of upgrades for the regional centres will significantly improve the operational efficiency and increase power flow across the Indian grid, particularly after the integration of Southern grid into the national grid (expected in 2014).”

Bharat Heavy Electricals Limited (BHEL) has received order worth of Rs1,300 crore from the state-owned electric utilities firm NTPC. The order involves supply and installation of steam generator, steam turbine generator and electrics package for the upcoming 500 MW Feroze Gandhi Unchahar thermal power project. BHEL’s scope of work in the contract envisages design, engineering, manufacture, supply and erection and commissioning of steam generator, steam turbine generator and their auxiliaries.

december 2013 | Electricals Today

BULLETIN

RINFRA COMMISSIONS POWER TRANSMISSION LINE IN MAHARASHTRA Reliance Infrastructure, part of the 100% privately owned intra-state line operational. Anil Ambani-led Reliance Group, said that it has commissioned a power transmission line in Maharashtra. "Reliance Infrastructure announced the commissioning of transmission line in Maharashtra through its subsidiary Reliance Power Transmission Ltd (RPTL)," the company said in a statement. The 311 kms Pune-Parli line is part of the Western region system strengthening scheme project and will connect key industrial centres of Maharashtra like Pune, Aurangabad and Beed. "We are proud to announce commissioning of the Pune-Parli transmission line. This is India's ﬁrst ever 100% privately-owned inter-state transmission project of the National Grid and we at Reliance Infrastructure are proud to be implementing it," Reliance Infrastructure CEO Lalit Jalan said. On completion, the project would enable evacuation of surplus power of about 4,000 MW from the Eastern part of the country to the Western region, the statement said. The 1,500 kms long project, to be executed at a cost of about Rs1,700 crore, was awarded to Reliance Infrastructure through tariff based international competitive bidding process. The project has been executed under Build, Own and Operate pattern, it added.

NTPC SCRAPS TURBINE ORDER WITH ANSALDO State-run NTPC has terminated its Rs700 crore contract with the Italian company Ansaldo for sourcing turbines for its gas-based plant at Dadri in Uttar Pradesh. Finmeccanica is also the parent company of AgustaWestland, which is facing probe after bribery charges were levelled against it in the Rs3,600crore helicopter deal with India. The company wants to play safe and does not want to get into any controversy and therefore has decided to annul the contract. The tender, which was floated under the company's R&M (renovation and modernisation) programme, was terminated after seeking legal opinion. The bids were invited last year and Ansaldo emerged as the lowest bidder for the contract. NTPC's Dadri plant is a Rs960.35-crore gas-based power project that supplies electricity to Uttar Pradesh, Uttrakhand, Rajasthan, Delhi, Punjab, Haryana, Himachal, Jammu & Kashmir and Chandigarh. The plant also supplies power to railways.

POWER MINISTRY DID NOT FAVOUR NHPC DISINVESTMENT VIA OFS The government shelved the offer for sale (OFS) route to sell 11.36% stake in NHPC after the Power Ministry said uncertain markets and a vacuum at helm in the hydro power producer were not conducive, ofﬁcials said. Earlier in August, the Cabinet had deferred a proposal for divesting government stake through the OFS route. The NHPC board has unanimously approved the buyback of up to 10% of fully paid-up equity shares of Rs10 each for an aggregate amount of nearly Rs2,400 crore. The government has set a target of raising Rs40,000 crore through disinvestment in (2013-14). The ofﬁcial said the Power Ministry had written to the Finance Ministry stating that conditions were conducive to disinvestment.

Electricals Today | DECEMBER 2013

NHPC is one among the other PSUs which are divesting.

BULLETIN

Sasan second unit to be commissioned soon

Total capacity of Sasan project is 4,000 MW.

Reliance Power Ltd (RPL), a subsidiary of the Anil Dhirubhai Ambani Group (ADAG), said that it will commission the second 660 MW unit in Sasan Ultra Mega

Power Project (UMPP) in Madhya Pradesh in December. Sasan is the one of the three UMPPs of 4,000 MW capacity each being commissioned by the company.

Coal production has also started from the 20 MTPA capacity Moher and MoherAmlohri mines allotted to the power project, the company said in a statement.

Power Demand to slide in exchanges

WEST Bengal to generate its own electricity: Mamata banerjee

Reflecting a sluggish trend, the demand for electricity at the Indian Energy Exchange declined in October even as availability of power for sale increased. The number of purchase bids stood at close to 3,596 million units last month, much lower than sale bids to the tune of 4,453 MUs during the same period. Compared to September, the purchase bids declined whereas the sale bids rose, according to IEX. In September, the purchase bids touched 3,809 MUs while bids for selling power stood at 4,386 MUs."The overall demand for electricity in the country lowered owing to seasonal variations and intermittent precipitation in most parts of the country which is uncommon for this time of the year."Similar trend was observed in the spot electricity market at IEX," it said in a statement. In the day-ahead market, average prices of per unit electricity hovered around Rs2.4/kWh.

West Bengal Chief Minister Mamata Banerjee said that the state will become "more than self-sufficient" in power generation in three years. Addressing industrialists at an event, the chief minister WB is aiming to achieve energy independence. conceded that there were some problems with regard to land availability for industrial projects, but said "it has been taken care of". "Within two and a half years (of taking the reins of the state) we have set up power banks," she said. Banerjee said there was no shortage of power in the state. "Within three years, the state will be more than self sufficient in terms of power generation," she added.

december 2013 | Electricals Today

BULLETIN

Coal regulatory to be operational soon.

Coal Regulatory Authority Bill likely to be introduced The Bill for setting up a coal regulatory authority is likely to be introduced in Parliament in the upcoming winter session. "It is moving forward. Most probably it (the Bill) should be introduced in the winter session. All depends on the calendar of schedule and priorities of Parliament," Coal Secretary SK Srivastava told reporters. The winter session of Parliament will be held between December 5 and 20. A decision to this effect was taken at a meeting of the Cabinet Committee on Parliamentary Affairs, chaired by defence minister AK

Antony. The Cabinet in June had approved the draft Bill on setting up a coal regulatory authority. A group of ministers had earlier approved the draft Bill which seeks to set up an independent regulatory authority for the coal sector to address contentious issues like supply and quality. It will also regulate methods for testing for declaration of grades or quality of coal, specify procedure for automatic coal sampling and adjudicate upon disputes between the parties, monitor closure of mines and approval of mining plans among others.

CIL hikes transportation charge; power cost TO go up Marginally

Govt Scrapping eleven coal mines

Coal India Ltd (CIL) has hiked the fare charges for transporting coal from mines to loading points, a development that may lead to a marginal hike of one paisa per unit in power tariff. Since 2009, CIL has not increased the transportation charges. The company has hiked the charges due to increase in diesel prices and Power tariff goes up due to increase in transportation charges. wage costs. "When the coal is transported beyond a distance of 3 kms to the loading point, the coal companies shall be entitled to charge additional surface transport costs from purchasers," Coal India said. The revised rates, applicable with effect from 14th November, are Rs57 per tonne for 3-10 kms. Earlier, the charge was Rs44 a tonne. For a distance of more than 10 kms and not more than 20 kms, the fares is Rs116.00 per tonne, CIL said.

Intensifying its drive against firms sitting idle on mines, the Inter-Ministerial Group (IMG) on coal blocks has recommended de-allocation of 11 blocks given to companies like JSPL and Monnet Ispat & Energy. "The IMG has recently recommended de-allocation of 11 coal blocks of companies like JSPL and Monnet Ispat & Energy Ltd. In the case of another 19 mines, the IMG has recommended either imposition or deduction of bank guarantee," a source said. Coal blocks which were recommended for de-allocation include Ramchandi Promotional block allotted to JSPL. These coal blocks were earlier issued show cause notices for delaying production.

Electricals Today | december 2013

BULLETIN

NHPC lost 550 MU power at Dhauliganga State-run National Hydroelectric Power Corporation (NHPC) has lost 550 million units in generation as its Dhauliganga hydel project in Uttarakhand is still undergoing repairs following landslides that had hit the hilly northern state in June. "Dhauliganga has given us less genera-

tion due to the flash floods. It is completely shut since June 16-17. Loss of generation has been to the tune of 550 million units in 3.5 months," ABL Srivastava, Director (Finance) NHPC told news agency. He added that the repair work is on at the project site and the company is hopeful of re-starting the project

by March, next year (2014). The 280 MW hydel project in Uttarakhand bore the brunt of rains followed by flash floods which devastated the state in June, this year. The project, which was commissioned in October 2005, generates 1,134.70 million units of power annually.

Natural disaster has forced shut down of hydel units.

UJVN takes Rs656 crore loan from REC State-run power generation company, Uttarakhand Jal Vidyut Nigam Ltd (UJVN), has taken a loan of Rs656 crore from Rural Electrification Corporation (REC) Ltd for the 120 MW Vyasi project through open tender process. â&#x20AC;&#x153;We have taken a loan of Rs656 crore from REC for Vyasi Project,â&#x20AC;? said UJVN managing director GP Patel. The rest of 30% equity in the project will come from the state government, he said. UJVN is now seeking time to restart the pending construction work of the much-delayed 120 MW Vyasi project with an investment of Rs1000 crore. The stage is set for completing the remaining works of the Vyai after the UJVN roped in National Project Corporation Limited (NPCC) for building the power house and selected Gammon for the construction of the dam.

Alstom bags orders AP Transco Alstom T&D India has bagged two contracts worth Rs130 crore from Transmission Corporation of Andhra Pradesh Limited (AP Transco). "Alstom T&D India has been awarded two air-insulated substation projects by AP Transco to strengthen the power supply in the state," the company, which is an Indian arm of French power equipment maker Alstom, said in a statement. The total value of the contracts is approximately Rs130 crore. The scope of work for both these substations includes the design, engineering, supply, erection, testing and commissioning of air-insulated substations. The first order worth Rs66.9 crore is to supply air-insulated substation at Suryapet in Nalgonda district. The second order is worth Rs63.3 crore and covers the supply of the Kamavarapukota air-insulated substation in the West Godavari district.

T&D companies are getting large orders from states.

december 2013 | Electricals Today

BULLETIN

Renewable energy roundup SUZLON ENERGY TO LAUNCH NEW OFFSHORE WIND TURBINE

SHRIRAM GROUP'S ENERGY ARM EXPECTS BUSINESS PROSPECTS TO IMPROVE

Offshore projects are gaining momentum in Europe.

Wind turbine maker Suzlon Energy has announced that, it will launch a new offshore turbine that will help in yielding more power. "Suzlon Group company Suzlon Energy will unveil its new offshore turbine REpower 6.2M152. With the new offering, the company once again sets standards in the cost-effective generation of offshore wind energy," the company said in a statement. "The new turbine features a rotor diameter of 152 metres, with the rotors sweeping an area larger than three football pitches. Bigger rotor increases energy yield by 20%," the statement added. Each 6.2M152 turbine with a rated power of 6.15 MW can supply electricity to around 4,000 homes. From 2015, 6.2M152 turbine will enter commercial production, the statement added.

The Shriram Group's renewable energy arm Orient Green Power Company Ltd (OGPL) said it is confident about the prospects of the business going forward as some of the strategies which the company has been working on will help to address most of the problems which had aff ected the functioning of the business. The company said it is closely working on completing its on-going projects in a time bound manner and this should result in improved sales and margines in the coming years. The company's immediate target is to complete the on-going 300 MW in the wind business and 46 MW in the biomass business. In addition to that, the company has undertaken few initiatives which should help to reduce to lower the interest outgo in the coming years. One such initiative taken has been to go in for ECB for Rs149 crore to part fund the expansion activities and this has been fully hedged at lower interest rate than that applicable for normally rupee borrowing.

UK PLANS FOR 39 GW OF OFFSHORE WIND BY 2030

There is an increase of 78% in UK's offshore wind share.

Electricals Today | DECEMBER 2013

UK Energy Secretary Ed Davey confi rmed plans for the development of up to 39 GW of offshore wind capacity in UK waters by 2030 at Renewable UK conference in Birmingham recently. The installed capacity of UKâ&#x20AC;&#x2122;s offshore wind sector has risen by 79% in an year. In the period from July 2012 to June 2013, capacity increased from 1,858 MW to 3,321 MW, boosted by four huge wind farms becoming operational â&#x20AC;&#x201C; Greater Gabbard, Gunfl eet Sands III, Sheringham Shoal, and London Array, which at 630 MW is currently the biggest offshore wind farm in the world.

BULLETIN

CENTRE PLANS FOUR SOLAR UMPPS OF RS90,000 CRORE

EVENTS ELECRAMA-2014 Venue: BIEC, Bengaluru, Karnataka Date: 8-12 January, 2014 Elecrama-2014, the 11th edition of the world’s largest power T&D confl uence, will be hosted in Bengaluru this year. It is designed to maximise the participant experience by its multilateral approach. According to the organisers, the highlights of the show are: international reverse buyer/seller meet, conference on transformers, innovation day and students pavilion, CEO Nite with cross stakeholder debate and awards ceremony.

Solar UMPPs in the offi ng.

The Centre has proposed four ultra mega solar power projects (UMPPs). These would be in Rajasthan (4,000 MW), Gujarat (4,000 MW), Kargil (2,000 MW) and Ladakh (5,000 MW). These would cost Rs90,000 crore. Tarun Kapoor, joint secretary, ministry of new and renewable energy, said per mega watt cost has been estimated at Rs6 crore against the existing Rs7-7.5 crore and per unit rate is estimated at Rs5.50. '"The one in Rajasthan would be developed on an engineering procurement and construction (EPC) basis. For this, public undertakings Bharat Heavy Electricals, Solar Energy Corporation of India, Power Grid, Hindustan Salt and Satluj Jal Vidyut Nigam and Rajasthan Electronics & Instruments will form a joint venture company.”

GUJARAT TRIBUNAL NOTICES TO SOLAR ENERGY DEVELOPERS The Appellate Tribunal for Electricity (APTEL) has issued notices to 80 Gujarat-based solar project developers on an appeal ﬁled by Gujarat Urja Vikas Nigam (GUVNL), the state governmentrun utility. GUVNL is seeking a cut in the rate of power it will buy from the solar players on the grounds that the actual cost incurred by developers of these projects was 40 per cent less than initially assumed. The utility is seeking a proportionate cut in the rate to Rs9 a unit from the Rs12.54 agreed under the power purchase agreements (PPAs). GUVNL has signed PPAs with 80 players, including the solar arms of Tata, GMR Essar and Welspun. The dispute has put solar energy projects in Gujarat of Rs14,000 crore under a cloud. The tribunal admitted the appeal, with a rider on its maintainability. "Since the maintainability of the appeal as well as the petition fi led before the state commission is questioned, we deem it fi t to admit this appeal, subject to maintainability," Aptel said in its order. The hearing is set for December 11.

ENERTECH WORLD EXPO Venue: Bombay Convention & Exhibition Centre, Mumbai, Maharashtra Date: 10-12 February, 2014 EnerTech World Expo will be a three day event and will be an ideal platform to showcase products such as transmission and distribution equipment, rotating equipment, light fi xture and fi ttings, solar power equipment, pollution control equipment and control gears. The participants will share their views on the latest developments related to power sector. Product display, conference, networking opportunities and meeting with industry leaders will be some of the highlights of this show.

INTERNATIONAL POWER TRANSMISSION EXPO Venue: Bombay Convention & Exhibition Centre, Mumbai, Maharashtra Date: 27 February-1 March, 2014 International Power Transmission Expo show ranks high on the popularity count, with more than 2500 qualifi ed visitors attending the show on a regular basis. The latest developments and market trends from this sector are discussed upon during the show. On the side lines, topical business seminars are also organised. Exhibiting companies from as many as seven different countries participate in the event, showcasing a varied array of gear transmission products, oils and adhesives, belt drives, cutting equipment, processing tools and a host of other associated products.

POWER-GEN INDIA Venue: Pragati Maidan, New Delhi Date: 5-7 May, 2014 A landmark event in the Indian power sector, POWER-GEN India & Central Asia 2014 will return to New Delhi, India’s power hub, where the event was last held in 2012. This high-level conference and exhibition is excited to present for the fi rst time DistribuTECH India as a new co-located event along with Renewable Energy World India and HydroVision India ensuring complete coverage of the power sector from generation to transmission & distribution.

DECEMBER 2013 | Electricals Today

Products Thermax launches Combloc Thermax has recently launched a Combloc, a multifuel packaged steam boiler. Depending upon the availability of solid fuel, one can choose or switch to different fuels without making any modifications in the boiler. This rugged ergonomic design offers fully packaged, insulated equipment with highest thermal efficiency in a small foot print.  Features: The product features include combination of hybrid boiler like fuel flexibility as well as the inherent ruggedness and compactness of integral furnace boiler. Combloc comes with 1.5 TPH to 6 TPH capacities. It provides nine major parameters of fuel combustion - imported coal, Indian coal, pet coke, wood chips, rice husk, pettets, wood logs, dry biomass, etc.

Web: www.thermaxindia.com

Hillstar Development Kit from Microchip Microchip Technology Inc. introduced the new MGC3130 Hillstar Development Kit for 3D gesturing systems. The MGC3130 is the world's first single-chip 3D gesture/free space position tracking solution. The Hillstar Development Kit provides designers with a path to integrate Microchip's industry-leading technology in their applications, in the shortest possible time.  Features: Hillstar Development Kit is a complete MGC3130 reference system, consisting of a MGC3130 Module and one example reference electrode. With several additional reference electrode designs, the Aurea Graphical User Interface Software, and an I2C™ to USB Bridge Module, it enables an easy design-in of the MGC3130 into several different form factors.

Electricals Today | december 2013

Web: www.microchip.com

Products

Demag process cranes Terex Corporation is one of the world’s leading suppliers of crane technology with Demag industrial cranes and crane components. The company designs, develops and produces technically sophisticated cranes. These cranes are mostly used by generators in power sector. There is a rising demand for high capacity and high performance cranes in Indian power market. Recently, two Demag process cranes that have lifting capacities of 300 t and 60 t were installed for Bengaluru based TD Power Systems.  Features: The handling of bulky components, e.g. stators and casings, as well as the transport of completely assembled generators is handled by a Demag ZKKW double-girder overhead travelling crane. This crane, which has a span of 32 m, is fitted with a winch unit with a lifting capacity of 300 t. It travels on a 120 m crane runway. A second crane hoist with faster lifting and lowering speeds supports the personnel in the precise assembly of components weighing up to 10 t. A second Demag process crane, which has a lifting capacity of 60 t and a 10 t auxiliary hoist unit, was also installed. Web: www.demagcranes.co.in

Schneider's intelligent switchboards The ultimate goals of a switchboard are distribution, switching, current protection, and metering. Any LV switchboard is the product of a lengthy development process, to ensure quality. Failures or noncompliance can lead to energy loss, supply disruptions, fires, explosions, and personal injury. To this end, Schneider Electric offers the Prisma iPM, which is compliant with IEC 61439-1 and IEC 61439-2 parameters.  Features: Prisma iPM is available in two variants: System L, which is wall-mounted and System M, which stands on the floor. Flat packaging makes the switchboard easy to handle, reduced assembly time enables faster deployment. Modular by design, making modifications, adding functions, or new enclosures is easy. Web: www. schneider-electric.com

decemberber 2013 | Electricals Today

Products

Pharox 4’ LED tube light The Pharox LED tube lights from NTL Leminis are energy efficient and durable. They provides brightness with high power LEDs. These tube lights are easy to install and give uniform light diffusion.  Features: These tube lights are 50% more energy efficient with glare-free and uniform lighting. The system efficacy of the product is higher than 70 lm/W (for cool white). It has a wide operating voltage range – 110270 V AC, 50 Hz.

Web: www.ntl-lemnis.com

G97-2.0 MW from Gamesa Gamesa’s G-97-2.0 turbine is the most efficient and productive wind turbine and of largest size in operation in India. Since Gamesa started commercialising this model an year ago, the turbine has been generating about 6.2 million kWh, making it the most productive installation in the country.  Features: G97-2.0 MW wind turbine is a standard one with its low power density. This is categorised in the low and medium wind speed products and comes with a cost-effective tag. This turbine is part of Gamesa's 2.0-2.5 MW platform with five different rotors (G802.0 MW, G87-2.0 MW, G90-2.0 MW, G97-2.0 MW, G114-2.0 MW y G114-2.5 MW). And tower heights ranging from 60m to 125m. Web: www.gamesacorp.com

Electricals Today | december 2013

Products

SunEdison launches solar water pumps Solar technology manufacturer and solar energy service provider SunEdison has launched solar water pumps. These pumps are especially designed for agriculture and are solar PV-based. Rugged industrial design ensures reliable performance in the most adverse operating conditions and ensures reliable and safe operation for over 15 years.  Features: Intended for use in rural environments, these innovative pumps feature rugged structural design, and are available in 3HP (horsepower), 5HP, 7.5HP and 10HP variants. An intelligent pump controller continuously monitors power available from solar PV modules and drives a high-efficiency 3-phase AC pump at variable speeds to use every watt of power available and provide water through the day.

Web: www.sunedison.in

SKF's bearings SKF has inaugurated its second Solution Factory in Manesar, Gurgaon, which specialises in refurbishing bearings. The new facility at Manesar is key to SKF’s overall business plans to take SKF’s maintenance consulting and asset management services closer to customers, reducing time of delivery.  Features: The Manesar facility will serve as the local unit, and it will focus on spindle repair, reconditioning and maintenance services. It will also serve the automotive manufacturers, ancillary manufacturers and industrial machinery customers in the region with competencies across SKF’s five platforms and specific asset management and maintenance services. Web: www.skf.com/in

decemberber 2013 | Electricals Today

Products facilities

Luminous Inverter battery facility Luminous Power Technologies, one of the country’s top power backup solutions provider, unveiled its new inverter battery facility in Tamil Nadu. It is part of the company’s endeavour to strengthen its market standing in South India.  Features: Spread across an area of approximately 2.5 hectares, the Hosur plant will be invested in two phases to increase capacity.

Web: www.luminousindia.com

Actuant India's manufacturing facility Actuant India, a wholly owned subsidiary of Actuant Corporation USA, announced the launch of its manufacturing facility in Bengaluru. The facility will support the company globally by offering value-added capabilities to drive business growth and accelerate operational excellence.  Features: The new manufacturing facility spans over 25,000 square feet with the option of scaling up to 100,000 square feet. This fully-automated facility will initially start with assembling and manufacturing products for three of Actuant’s businesses namely Power-Packer, Enerpac, and Hydratight.

Web: www.actuant.com

Electricals Today | december 2013

EMPOWER

YOURSELF ET

Volume 1 |

of pages 52 Total number ry 2013 | `50

Issue 1 | Janua

? Y A L E D WHY

S TODAY

ELECTRICAL

ST TH E IN DU WE R TO MO RE PO

R U O Y R ORDE ODAY. COPY T

IENT GY-EFFIC ARE ENER REALLY PRODUC TS EFFICIENT? ID IS NO ‘SMART GR NCEPT, CO LONGER A SSITY’ CE IT’S A NE

EWPOINT

ia ditya Scind gh Jyotira Even thou ge as rrent char cu his s describe g power ’, the youn ‘daunting e on the ready to tak er? minister is can he deliv t Bu s. ge challen ishing India

An ITP Publ

07-01-2013

15:16:04

Publication

ver.indd

n2012_Co

01_ET_Ja

VI , ARUN MAIRA NNING MEMBER, PLA , ION ISS MM CO S ON WHAT AIL THE INDUSTRY

Subscription

Duration

You Pay

1 Year (12 Issues)

Rs 1000/-

Please use BOLD / CAPITAL LETTERS ONLY Mr/Ms: ________________________________________________________________________________________________ (First Name) (Middle Name) (Last Name)

Address1_______________________________________________________________________________________________ Address2_______________________________________________________________________________________________ Address3_______________________________________________________________________________________________

Email: _________________________________________________________________________________________________

Please use bold & capital letters only The mode of payment should be cheque/demand draft favouring ‘ITP Publishing India Pvt. Ltd’ Please write your name and address on the back of the cheque/demand draft Orders once placed will not be terminated or transferred Please allow a minimum of 4 weeks to process the order. Subscribe to ELECTRICALS TODAY by completing the form and sending it to: Subscription Department ITP Publishing India Pvt. Ltd, Notan Plaza, 3rd ﬂoor, 898, Turner Road, Bandra (W), Mumbai-400 050. For further queries write to: james.dsouza@itp.com | Tel:+91 22 6154 6032 / 6000

COLUMN

RENEWABLE ENERGY: STORAGE IS THE FUTURE Improvement in battery efficiency is important not only for renewable energy but also for electric vehicles to take off Sanjeev Aggarwal Managing director, Amplus Infrastructure

ost of the critics of the renewable technology have one argument, that this power is not available when needed. Indeed, that is the nature of this power that the renewable plants are integrated in the grid as ‘must run’ plants. This leads to possible scenarios where some of the fossil fuel plants need to be ramped down or even stopped for short durations. The fossil fi red plants are not necessarily amenable to this kind of operational ﬂexibilities particularly the coal-ﬁred plants. As an example, solar plants in Germany can produce more than 50% of the electricity requirement during the peak generation periods of afternoon, potentially impacting the grid. This is the situation that the utilities across the world are most worried – grid stability and stranded assets. The only ways to avoid wasting any power – renewable or fossil fi red is to go the energy storage route and store renewable energy. The ability to store that energy and feed it into an electric grid as dictated by demand could revolutionise the power generation, of Germany's demand can be met by transmission and solar during peak generation hours distribution sectors. There is huge amount of research underway in countries like USA, Germany, Israel, Spain, and China to develop commercially viable storage technologies. Battery storage is one of the oldest and most common storage technologies being used. The space requirements and the cost of the batteries often make these systems unwanted to tackle the issue of extra generation. Significant amount of research is going to improve the materials

used in making these batteries more effi cient, lighter, and cheaper. The battery improvement is important not only from the perspective of renewable generation but also for the future of electric vehicles, so that they can run longer without the need for a recharge.

50%

Electricals Today | DECEMBER 2013

Pumped storage is one of the widely used storage globally.

COLUMN

ENERGY STORAGE MARKET POTENTIAL Grid-Scale Energy Storage ($B) Lux Research - $114 B by 2017

$150 $114

$120

Boston Consulting Group - $400 B market by 2020

$90

EPRI/DOE - annual savings of $50 billion/year via energy storage

$60

PLENTY OF MARKET POTENTIAL... FOR THE RIGHT PRODUCT AT THE RIGHT PRICE

$30 $2.8

Piper Jaffery - $600 B Market over 10-12 years

2012

2013

2014

2015

2016

2017

The other commonly used storage system is pumped storage that has been used on a gigawatt scale worldwide. Though it remains as the most widely used storage technology, the issues are related to environmental as well as location/ transmission with respect to the location of renewable generation.

Source of chart: www.cleantechnica.com

A hybrid generation/ storage system being considered is Compressed Air Energy Storage (CAES) technology that is based on conventional gas turbine technology and uses the elastic potential energy of compressed air. Energy is stored by compressing air in an airtight underground storage cavern. To extract the stored energy, compressed air is drawn from the storage vessel, heated, and then expanded through a high-pressure turbine that captures some of the energy in the compressed air. The air is then mixed with fuel and combusted, with the exhaust expanded through a low-pressure gas turbine. However, considering the underground cavern requirements and its reliance on fossil fuel, the technology is less than preferred at this stage. The US has just recently brought online a solar power plant that can produce electricity for the grid, even during the night. The 280 MW Solana solar power plant located in Arizona, uses a molten salt thermal energy storage system to allow it to continue generating energy six hours after the sunset thus meeting the evening peak requirement. The plant uses parabolic mirrors to focus the sunâ&#x20AC;&#x2122;s rays onto a system of pipes containing a synthetic oil. The hot oil then boils water, and the steam drives the turbines to produce electricity. During the day, the heat reflected onto the tower is also used to heat molten salt, which holds its temperature for a long time. When the sun goes down the molten salt is used to heat the water and create the steam. On the distributed generation front, Germany is taking the lead again with subsidy for storage. The scheme with a budget of $33 million for 2013, was established in May this year and will cover up to 30% of the cost for residential storage equipment when added as apart of a new residential PV system. Let us hope that the German magic works for storage as well as it did for solar!

NOVEMBER 2013 | Electricals Today

cover story

Monumental

shift RN Nayak, Chairman and managing director, power grid corporation of india Limited, on plans to enter manufacturing of products

BY RENJINI LIZA VARGHESE

ith a cumulative existing capacity of 1,02,540 circuit kilo metres (ckm), Power Grid Corporation of India (PGCIL) backed the countryâ&#x20AC;&#x2122;s dream of ensuring a healthy electricity infrastructure. It has 173 substations operational at this point of time. And has 23,000 sq km of transmission lines under implementation. The state-owned PGCIL has targeted a dispersal of Rs100,000 crore till the end of the current Five Year Plan (2017). The transmission sector has witnessed consistent increase in demand for the past few years in transmission segment. Year

Original target for disbursement

Amount disbursed

Rs20,000

Rs17,000 crore

2010-2011 2011-2012

Rs12,000 crore

2012-2013

Rs20,000

Rs20,000 crore

2013-2014

Rs20,000 (revised to Rs23,500 crore)

Rs11,000 crore (disbursed in the first half)

cover story

december 2013 | Electricals Today

cover story Target for the current Five Year Plan is Rs1,00,000 crore.

Electricals Today | december 2013

cover story

PGCIL is considering different mechanisms to mobilise these funds. This year the company is hitting the markets with a FPO to the tune of Rs7,400 crore. The FPO is expected to begin in the first week of December 2013. This will comprise 13% fresh equity by the company and 4% stake sale by the central government. This will be the second time the company is raising funds from the market. The first FPO was in 2010, three years after the IPO in 2007. The changing equations in the power market instigated the need for diversification in PGCIL’s main business. The evolving markets of energy efficiency and smart grids have paved a new path for the company to explore. RN Nayak, managing director of PGCIL is leading from the front by setting an example. Under his able guidance, PGCIL is actively breaking new grounds by partnering with several companies for the production of such equipment. While generation and distribution companies continue to face challenges, transmission segment is upbeat with fresh capacity addition. Some of the private companies that have taken the contract also were successful in completing the lines

Once the research centre is established, the endeavour is to bring best quality products in large scale and reduce cost. In the recent past, we have seen there are companies which launched products but could not sustain them because of high cost. (the latest being the line between Pune and Parli). The 311 km Pune-Parli line is part of the Western Region System Strengthening Scheme (WRSSS) II project, which is 1,500km long and to be executed at a cost of about Rs1700 crore. This is country’s first 100% private owned inter-state line. In an exclusive interview Nayak spoke in detail about PGCIL’s key role in the integration of country’s national grid. He also shared the lessons learned from the 2012 near blackout in northern parts and the responsibility of the utilities to draw within the allocated limits. PGCIL is looking at manufacturing equipment for smart grid application. Have you entered into an agreement with any manufacturing company for this? We are in the process of tying up with two manufacturing companies. It is too early to divulge either the details of the understanding or the company names. The target we have

december 2013 | Electricals Today

COVER STORY

Consumers are more receptive towards regular tarrif hikes. Top management of PGCIL during the half yearly result announcement.

in mind is to enter into manufacturing of smart meters and smart home management systems among other things. These are products used in effi cient running of home equipment, controlling systems and so on. In addition, we at PGCIL are exploring the option of manufacturing conductors and towers through joint ventures. The company is also setting up an energy effi cient arm.

Elaborate on PGCIL’s plan to establish a research centre to support manufacturing. We already have research centres, but they are all scattered. What we are aiming at is Allocation for green setting up a research corridor centre on a large scale. The intention is to support the energy effi ciency movement, establish facilities to test meters and facility for calibration. The proposed centre will integrate all these.

43,000 CR

Once it is established, we want to produce best quality products on a large scale, thus bringing cost effectiveness. What we have seen in the recent past is that some companies had launched similar products, but could not sustain. Perhaps that’s because the products are not sellable, owing to their high cost. PGCIL will not only ensure products of high quality

Electricals Today | DECEMBER 2013

but also those that are affordable. The products will be reliable. How much will you be investing in setting up the centre? The centre that will be in Maneswar, Gurgaon, which is close to the company’s headquarters, will be set up at an initial cost of Rs150 crore. The research and development (R&D) cost will be separate and close to the opening of the centre, there will be clarity on allocation. To make this centre operational, we are looking at two years from now. What are the challenges you face in transmission? There are three main challenges in transmission. First and foremost is Right of Way (RoW). This is the case with majority of the transmission companies, the world over. It is natural to face objection when you put a pole in someone's land. And the objections are justifi ed—once a transmission pole comes up on a piece of land, its price goes down as one cannot build anything under the tower. So overcoming the objections is the greatest challenge. Second challenge is getting suitable land for setting up sub-stations. Over the years, land has become scarce. Once a land is chosen for setting up a substation, there is a requirement for bilateral agreement. For instance, a single piece of land could have 15 owners, out of which two may be opposed to transferring the land. If the patch of land they own happens to be right in the middle of the plot, the entire project can get indefi nitely stalled.

cover story

The main challenge in the transmission segment is Right of Way (RoW). This is not just in India but it is the case with majority of the transmission companies the world over.

PGCIL was not affected by the slowdown.

The third problem is meeting with the completion schedule of transmission projects. There is problem in RoW, land scarcity and delay in sealing the deals. All of this delays the projects. There are instances of large contracts going nowhere, some of the companies entering transmission have succeeded but many have failed. All these problems put tremendous pressure on the sector. In countries like the US, it takes close to 15 years to build transmission lines. But in India, we build them in two years, which makes it all the more difficult. We have to do cross country projects and for transmission, there are no boundaries. How has the slowdown affected your business? In the last year, we have enhanced our Capex. The slowdown has not affected us in any way. Transmission projects are awarded and continue to get implemented. What are some of the most noteworthy technological advances in transmission? The most important technological step in the recent past has been the higher voltage 765 kV lines. These lines have become the backbone of a grid now. If you put together constructed and under construction lines in 765 kV, they will be around 23000 sq km. If you add up the transmission lines in 765 kV, the world over, they will be just as much. That means what you do in India is the sum of the rest of the world. Hence, it is massive expansion. High voltage means increasing the voltage by four times. For instance, 400, 765 kV means 400 kV line will be able to carry 2,000 MW and 765 kV will carry 5,000 MW.

december 2013 | Electricals Today

cover story

National grid to be completed by 2014.

Once the integration of South grid to the national grid in 2014 is completed, then the total electricity connected to the grid will flow freely from one end to the other. Second significant step is that the work on smart grid has already started. Smart grid can be compared to a medical diagnostic centre, which employs different methodology in identifying problems. Like ECG, there is similar equipment to identify the problems in transmission by sending signals. If there is a difference in signals, it means that there is a problem in the grid, which requires attention. Last year a grid failure plunged North India into blackout. What are the lessons you learned from the incident? Lot of work has been done post the grid failure in 2012, the

Electricals Today | december 2013

most noteworthy being sensitisation. Towards this, we held a series of meetings at various levels in the ministry of power that involved the top people from the ministry and the secretary. The gist of the meetings is that all regions and utilities have been asked to draw within the allocated limits. Going forward, this sensitisation hopefully will show the right results. Elaborate on Indiaâ&#x20AC;&#x2122;s national grid and green corridor plans. Currently, there is 5,000 MW of inter-state transmission capacity available. Once the integration of South grid to the national grid in 2014 is completed, then the total electricity connected to the grid will flow freely from one end to the other. Green corridor is planned for the current Plan Period. The initial estimate was for Rs43,000 crore, but now it is estimated that the spend will be around Rs38,000 crore. Out of this, Rs13,000 crore is for intra-state and Rs22,000 crore is for interstate. What are the overseas plans? PGCIL has taken over the management control of a grid in Ethiopia. We have presence in Kenya, Nigeria and continue to look aggressively for taking more work. Other than these countries, we are looking at project work and management control in Central Asia.

DISTRIBUTION

FFICIENT FFORTS

Many energy intense companies are opting for ways to bring down their energy consumption BY RENJINI LIZA VARGHESE

DECEMBER 2013 | Electricals Today

DISTRIBUTION

wenty year’s back, work energy effi ciency and energy savings got added to the vocabulary of many Indians. Today, many of us are ambassadors of energy saving initiatives in our own right. Technology, increased awareness, the fear induced by media reports of depleting energy resources, all culminated into our new role as crusaders of energy effi ciency. For any country’s growth, infrastructure plays a crucial role by improving the standards of living. Progress in infrastructure refl ects how the per capita income of the country is growing and what the country’s contribution to the global economy is. Energy is at the foundation of infrastructure development and that's why it's crucial for the energy sector to grow. Various studies have showed that if you invest Rs1 into energy, it translates into Rs10 equivalent cycle of growth in infrastructure. Energy remains the main contributor to the overall growth of a country. If one looks at the various growth stories in the last 20 years, be it in IT, aerospace, pharmaceuticals or tourism, every industry has gone through its own cycles -- from highs to lows before stabilising. But in case of energy, despite the challenges, there has been consistent growth. And the CAGR growth of this sector, in the past two decades, has been close to 2 - 2.5%, the world over.

Energy effi ciency movement has picked up well in the past decade.

Electricals Today | DECEMBER 2013

However, 20 years ago, few would have spoken about energy savings or energy effi ciency—words that are dominantly heard in many of the conversations especially in the corporate circle. Energy, though available, is also scarce. The resources are limited and are expensive as well. The depleting resources are a concern, and at the same time, point out to the dire need of implementing energy effi ciency into practice. Companies present in the energy segment are more aware of the impending danger if steps are not taken in time. “That is why we have started this whole journey of energy effi ciency drive from Schneider. It has become a thumb rule for the company to stress on enhanced energy effi ciency while launching products or improving on the existing models of products,” explained Anil Chaudhry, country president and managing director of Schneider Electric. Schneider started operations in India as a JV in 1963 and is celebrating 50 years of business in India. As part of the celebrations, it has launched a campaign to save 50 billion units in 100 days. "We have mobilised all entire network of stakeholders to achieve the target. This means not only will be monitor our usage but also our stakeholders will. These could include consumers, general public, utilities or industrial units," he said. The idea was shared with all connected with Schneider Electric and

XXXXX

distribution

in the first few weeks of launching the initiative itself, they managed to save 20 to 22 million units. So we are hopeful that by the end of 100 days, we will not only be able achieve our target but even exceed it.” The initiative will continue beyond the 100-day mark. It will be taken to tier-II, tier-III and tier-IV cities along with the sales expansion plans. The awareness programme will continue as Schneider sees growth there.

n electricity, it is widely understood that one unit saved is equal to two units generated. So the quantum of energy saved can be utilised productively in some other part of the country. It gains more importance as India still is a power-starved country. At the same time, energy saving also contributes financially to the economy. The average cost of one unit of electricity currently is priced at Rs8. Chaudhry was quick to explain the matrix “If you calculate, 50 billion units at the rate of Rs8, the saving would Rs40 crore. This huge amount can be fuelled back into the economy.” Energy efficiency results in energy savings. People adapt different ways to implement energy efficiency with sustainable ways. Chaudhry pointed out with an example, “I am keeping out the industrial usage of power. Let us take the example of a building. Typically, a building consumes 300 - 350 units per square meter per year. With energy efficiency solutions, we can bring down the energy consumption to 100 -120 units. In the

"Energy saving also contributes financially to the economy. The average cost of one unit of electricity is Rs8. If 50 billion units are saved at the rate of Rs8, the saving would Rs40 crore," says Anil Chaudhry, managing director, Schneider Electric long term, the target would be to bring it down to 80 units. Typically, before offering the solutions Schneider does energy audit of the premise. To set an example and encourage people to adopt energy efficiency, the company is going in for ISO 50001 certification for all its plants. Schneider has 70 buildings that fall in this category, out of which, five are already 50001 certified and two others are in the process.

december 2013 | Electricals Today

distribution

The new directive puts the burden of fuel supply on to distribution utilities.

The maximum load in a hotel is from HVACs (ACs). Normally, the temperature is kept at 20 degree Celsius. If the temperature is increased to 23 degrees form 20, you will be able to maintain the same level of comfort. However, an increase of 3 degrees can decrease the overall electricity consumption by 15%. “These are real time programmes, the effect and savings are clearly visible. This is what we are trying to pass on to the consumer,” he added. Children are the best ambassadors of the energy efficiency movement in India. Catch them young and they carry the right message forward. Awareness makes them grow as responsible citizens. The students are also given information about the services and solutions in this regards. Industries / companies that are dependent on captive power to meet its demand have started looking for options to effectively utilise energy. Though there are captive power plants that run on coal, gas and on heat recovery mechanism, many of them use DG sets. While the grid power costs Rs7-8, running the DG set escalates the running cost to Rs14 per unit. If one has to run the DG set for 10 hours a day, the additional cost adding to the operations cost would be huge. So, it has become imperative to activate energy efficiency services to bring down the operations cost. Energy efficiency tools/services can bring down the industrial consumption up to 30%.

Adjusting temperature of AC from 20 to 23 degrees can bring down the electricity consumption by 15%.

Electricals Today | december 2013

n the past decade, there had been a lot of initiatives that brought in changes to the pattern the way one uses energy in day-to-day life. To start with, bulbs are being replaced by CFLs and now by LED lights. It has resulted in significant energy savings. “We at Schneider are going beyond that. We are making automated solutions available. While there is savings with these kinds of movements, one needs to plug the energy leaks. Until that is put in place, you will continue to consume the same level of electricity,” he added. So, identifying the problems and leaks is important. The solution should be user dependent and not on the habits of user. If you are in a hotel room, and if the rooms are fitted with sensors based on movements of people, the energy savings will be higher. The consumption with the help of automated systems is regulated here. It is a win-win: the customer is satisfied and as a service provider, the hotel saves a lot of energy. “I see a lot more of demand emerging from energy efficiency management segment. So what we are currently doing is making almost

distribution

Digitisation of products is the first step in smart grid application.

What we are currently doing is making almost all our products digitally connected which is the foundation of smart grids. From mcbs in the distribution board, transformers and all other products are being made with digital options and connected on open platforms all our products digitally connected, which is the foundation of smart grids. From mcbs in the distribution board, transformers and all other products are being made with digital options and connected on a open platforms. We are also working on a suite of applications, which can be connected to these platforms to make them smart. This is being developed in India by people who have access to global technologies of Schneider addressing the domestic challenges,â&#x20AC;? added Chaudhry.

The point of evaluation starts where energy reaches the home from the grid. Automations have been largely done in generation, transmission and in distribution. All the substations are remotely controlled. But until the consumer side also migrates to smart applications, the leverage of smart applications wonâ&#x20AC;&#x2122;t be 100%. Everyone has to think of ways to make his habitat per unit smarter. The industry has to captive power cost find more ways to use energy more efficiently. The questions now facing us are: On real time basis, how the demand- supply can be managed? And how we can optimise the available resources? The challenges in India are different. While Germany will look at integrations of more distributed generation to the grid, in India the focus would be on bringing down the AT&C losses clubbed with availability and reliability of power in the grid. With initiatives like R-APRDP, APDRP phase 1 and Smart Grid roll out, the country is poised to attract more energy efficient services. For this, the country needs to overcome the major challenge of putting in standardisation. However, the stake holders are optimistic above the growing opportunities.

Rs14

december 2013 | Electricals Today

generation generation

Electricals Today | december 2013

generation

move for more

The proposed amendments to the Electricity Act 2003 appear to be an attempt at putting the tariff control back in the hands of the Central Government BY Arijit Maitra

fter a gap of six years, the Electricity Act, 2003 (EA 2003) is up for amendments as recently proposed by the Ministry of Power. Content & Carriage Separation: proposed amendments: Sec. 2 (70b); 42; Section 14 - 2nd Proviso read with section 131 (4A)(a)(b) From a common man’s perspective, one provision proposed to be included for the first time is to separate network and wire operations from supply of electricity. This is so that the general public gets some of the benefits of competition. Firstly, if these provisions, filed under the heading “reorganisation of Board” / “vesting of property of Board and State Government”, are made applicable to a private distribution company, then it will militate with the headings of the section. Secondly, if one reads chronologically, sub-section wise, section (4A) has been made applicable only after there has been a second transfer scheme. That is, after the State Electricity Board (SEB) has been disaggregated and its distribution functions have been vested with the distribution companies. Thirdly, if every distribution company, including a private distribution company, is mandatorily stripped of supply functions and is kept as network operator only, this will lead to an entirely different level of business situation. If a distribution licensee is mandated to sell off its supply undertaking to another entity, there may be enormous complications from labour perspectives and union agreements. However, if the network operator is allowed to set up another company in which it can vest its supply undertaking and is permitted to become the supply licensee, then there may be some level of mitigation to the foreseeable disastrous consequences. Next, the proposed amendment under the newly added section (4A) is totally silent on the financial basis of the transfer of the supply business. Also, why should the state government be given the power to draw a transfer scheme as regards private

december 2013 | Electricals Today

GENERATION

Currently, consumers are supplied electricity by distribution companies.

If every distribution company, including the private distribution companies, is mandatorily stripped of supply functions and is kept as network operator only, then obviously this will lead to an entirely different level of business situation. distribution licensees for separating the supply functions? There is no clarity as to the criteria on which a supply licensee would be chosen for vesting on it the supply functions taken out from an existing distribution licensee. However, today, consumers are supplied electricity by distribution companies, which own and operate the distribution network and procure electricity from generating companies, trading licensees, power exchanges and other diverse sources, and supply the electricity to the last mile retail consumers. That

Electricals Today | DECEMBER 2013

electricity tariffs are increasing is a known reality. Among others, one relevant factor that contributes to the woes of the consumers is that they are stuck with the distributor, with no option to procure electricity at competitive rates. When the 2003 Act was enacted, it did contain the provision of non-discriminatory open access, whereby consumers could request their distribution company to allow them to use the latterâ&#x20AC;&#x2122;s network so that electricity could be supplied by a supplier at competitive rates. For big consumers such as factories, industries and other big establishments, some parts of India have favourably enabled choice to them under the open access route, whereas some other parts of India have been stuck with the notion of â&#x20AC;&#x2DC;not in my backyard syndromeâ&#x20AC;&#x2122;. For the smaller and domestic consumers, an experiment is ongoing in suburban parts of Mumbai, where most of the population that was always connected to the wires of Reliance Power, have now the option to switch over to Tata Power for the supply, while the carriage still remains with Reliance Power. However, the rest of the country is yet to see such kind of competition in the retail segment for at least several decades to come. Therefore, in the draft amendment, the Ministry of Power has proposed that every distribution company in India be stripped of its supply business, which will be vested in some other electricity supply company. This has been done with a view to operationalise the choice of retail suppliers. There is also a provision to allow more than one supplier in an area of supply. However, power to divest a distributor of its supply undertaking and sell the same to a contender has been kept with the State Government. The proposed amendments are silent on details such as the basis on which the supply business assets would be valued at

generation

and how such a process would continue to protect the interests of the general consumer. Will the compulsory divestment of supply functions not make consumers and the Discom workers insecure? If the concern of the government is the elimination of monopolies, then it is only a question of converting the existing provision of open access into a reality. As long as there exists a deficit in power availability, letting in a whole new bunch of suppliers may simply result in an exercise that is merely on paper. The proposed omission of Section 42(3) in this round of amendments is a good thing. The upshot is that BEST (BMC) and such other municipalities will no longer be able strangle competition on the one hand and consumer choice on the other as the protection to “local authority” from allowing consumers the right to use their network (wires) has been removed. So South Mumbai will see some real competition now. Section 51A (2) How can the State Government decide on the separation of wire and supply of a private distribution licensee? Moreover, the reference to section 131 is in apposite as the section is only with respect to state electricity boards and government companies. Where is the question of the state government taking the approval of the central government in the separation of the network and supply?

a matter of common law principle that policies do not have a binding effect. The Statement of Objects and Reasons of the 2003 Act inter alia confirms the independence of the Regulatory Commissions. Hence, the proposed amendments are likely to conflict with these fundamental principles because the Regulators would be under attack from segments within the governance structure who have still not been able to reconcile themselves to the ingress of independent regulation in the power sector. In fact, the amendments, as proposed, are symptoms of “Paranoid Imperium” and are based on a biased and misplaced adherence to the theme that only the Government knows what is the best for the people; and other stakeholders –consumers, IPPs, the Regulator, FOR, APTEL, the Courts- have no role to play. The Electricity Act, 2003 has been enacted to distance the governance structure from the tariff setting exercise and remains the thrust of National Sovereignty as defined by the National Parliament. To negate it by using amendments implies that the fundamental basis of the Act’s structure is being demolished without a thought to the consequences emerging from such an action.

It is proposed that wire operations will be separated from supply of electricity.

Proposed amendment to Section 14 – 7th proviso The addition of the words “to consumers having specified load profile” indicates a possible situation where there may be competing suppliers for the domestic, industrial and agricultural categories. Such a scenario appears to be quite complicated. Proposed amendment to Section 14 – last proviso It appears that this newly added proviso is fraught with some legal infirmities, viz., it states that an intra-state trader shall be deemed to be a supply licensee. If so, then it should have universal service obligations for the consumers in its area of supply. There is no question of limiting its obligation to supply to only those consumers who have been provided open access. This also begs a question as to whether it is mandatory for consumers to obtain open access in order to seek supply from a supply licensee. Binding nature of Policies: Proposed amendments to Section (3a) read with the first proviso to clause (i) of section 61, read with section 79(4) and read with section 86(4). Throughout the amendments, what resonates is lack of confidence between the Central and the State Governments. Although electricity is in the concurrent list of the Constitution, most of the amendments proposed by the Ministry of Power give an overriding empowerment to the Central Government to decide matters. So much so, if the Central Government decides that some portion of the National Electricity Policy and the Tariff Policy are binding on the Regulators, the Regulators will no longer be guided by the said policies but will necessarily and mandatorily follow what has been stated by the Central Government in the National Electricity Policy and the Tariff Policy. It is

december 2013 | Electricals Today

GENERATION

Open access is yet be a reality for Indian consumers.

The proposed amendments are silent on how and on what financial basis the supply business assets would be valued and how such a process would continue to protect the interests of the general consumer. If the Regulatory Commissions are to perform a statutory function or have to discharge a statutory obligation, how can they do so if they follow any such direction that takes away their basic function from them? It is well-known that directions issued to a quasi-judicial authority that place a fetter as to how that authority is to be exercised, would be ultra vires and therefore, void. Since, however, this militates against the independence of the State Commission, which is the basis of the Act, places fetters in the working of a Quasi Judicial Authority and uses the amendments as a means to revert the tariff setting process back to the ` Government, it is not justiﬁ-

Electricals Today | DECEMBER 2013

able and any such action is ultra vires. This also evidences a callous indifference to the Rule of law and the basic fundamental tenet of a National Act. It also dilutes the basis for the setting up of the Regulatory Commissions and is an attempt by the Central Government to turn the clock back to the ‘Paranoid Imperium’ of yore. Captive Power: Proposed amendment to Section 2(8) Now, the Central Government has the sole power to decide the terms and conditions on which a captive power plant can be set up. The earlier wordings contained in the unamended version at least indicate that a power plant that is set up primarily for its own use is a captive power plant. Many industries have set up captive power plants based on the extant provisions of the 2003 Act and it is likely that their investments will be disturbed, if any untoward terms or conditions are “prescribed by the Central Government from time to time”. The concern is that an entity that wishes to set up a captive power plant would have no idea on the date of enactment of the present proposed amendments as to on what conditions its power plant could be eligible to be a captive generating plant. Also, the leeway provided to the Central Government may also result in different eligibility criteria for power plants set up by using conventional fuel; non-conventional technologies and renewable energy sources. Therefore, instead of leaving Central Government to device the base eligibility criteria, the statute itself should retain at least the fundamental base eligibility so that there is some certainty and clarity in the minds of all concerned. (This is the ﬁrst of a two-part series. The second part will appear in the next issue.)

RENEWABLES

A ROLLER COASTER RIDE Lack of policy support and withdrawal of subsidies has stalled the growth of the wind energy sector. However, reintroduction of generation-based incentives are expected to bring in favourable winds BY RENJINI LIZA VARGHESE

Electricals Today | DECEMBER 2013

renewables

november 2013 | Electricals Today

renewables

ind turbines spinning with the back drop of a setting sun near the shores of the Arabian Sea near Lamba, Porbandar in the late ’80s was indeed an enchanting sight for any traveller cruising the coastal highway. These sights capitalised the imagination of few businessmen during that period to foray into a relatively unknown area of wind energy not knowing that they would have to brazen out a rough rollercoaster ride in the coming decades. The start of this adventure was pretty smooth with incentives and support close at hand indeed saw a large number of companies taking up wind energy as a key business option in the renewable energy sector. This was also vitalised by demonstration projects by the central government in Lamba, Porbandar, and in Kathayar near Tirunelveli. The success of these two projects involved many stake holders in India and abroad marked the beginning of the great ride in wind energy and also brought along decades of experience of European companies so that the sector got a jump start. Development through the 90’s happened in various states predominantly in Tamil Nadu and Gujarat. There were a large number of wind turbine technologies which were brought into the country and one of the main challenges was streamlining of technology to the country’s requirements of atmospheric, terrain and grid conditions. Incentives available to the sector spurred the growth and also led a large number of untested or poorly designed turbines reaching high wind potential sites. The sector started to have its birth pangs with the large number of wind turbines under-performing and also shut-down due to various techno-commercial issues. Since there was a large amount of focus on the incentives doled out in the form of accelerated depreciation and not on technology of the wind turbine or its performance, the sector did have its share of misfortunes. The government realised the need for regulation of this sector and set up an institution called Centre for Wind Energy Technology (CWET) in Chennai in 1998. CWET took up the challenge of testing and certification of wind turbines. It also looked into the various technological challenges thereby restoring some order to the sector, which was the need of the hour. This shaped the orderly growth of the sector through the late 90’s and further. Therefore, wind energy, which started up with a few turbines, mushroomed in strength, settled issues within its growth and looked set to take on the challenges of climate change and degrading environment, is finding itself on a roller-coaster ride. This ongoing ride is definitely causing pains to the sector and also to the country. It would be interesting to take a peek at the growth pangs of the wind energy sector after around 25 years or more of its existence in India and dig deeper into the reasons for this cycle of pain and gain rather than a sustainable development which was initially envisioned.

he wind resource mapping programme was started in year 1986 wherein the first wind monitoring station was commissioned. In 2005, a wind resource land map was developed by CWET for the country, assuming 1% land availability. The potential has been mapped with course spatial resolution

Electricals Today | december 2013

Wind turbines remained three bladed though there was technology advancement.

renewables

Incentives were not the only driving factors but factors like the technology of wind turbines, social acceptance, global impetus, employment, etc. also played significant roles. from the data of 400 monitoring stations around the country identifying zones in different wind potential classes. The potential at a 50 m level was found to be around 48,581 MW. Since the technology and hub heights of the wind turbines were on good course, the re-assessment of the potential was undertaken with an assumption of 2% land availability at an 80 m level which was found to be 1,02,788 MW. This was indeed a good effort but failed in its objective of estimating the realistic wind energy potential in the country. This was also compounded by estimates from other reputed institutions in India and abroad which set the potential many times the estimates of CWET. The estimates of CWET have not factored in the parameters of land use/land cover, electrical grid infrastructure, socioeconomic and environment factors, but only the wind resource in terms of its wind power density. This comprehensive effort takes time but should have been in place after 25 years to enable various stake holders driving technology and policy to synergise so that the growth is sustainable. Currently few players estimate the capacity that could be added year on year which is not based on firm recorded and proven estimates, as reliable unchallenged data is not available for the country. This is one of the underlying uncertainties that the sector faces. It is also a little hilarious to note anxious enquiries about what capacity has been added in a year when what could be have added is not known in the first place.

n the late 80â&#x20AC;&#x2122;s wind turbines were predominantly upwind, three-bladed, geared and stall regulated with hub heights and rotor diameters of around 30 m. The current turbines are still three-bladed, but pitch regulated with hub heights and rotor diameters of around 80 m and 100 m respectively. They also have permanent magnet generators rather than conventional induction generators and are connected indirectly to the grid, making them more grid friendly. This can also be seen from the collaboration/joint ventures of the 13 wind energy companies which are listed in the revised list of models and manufacturers (RLMM) published by CWET. The wind turbines have definitely grown in size but not proportional in its efficiency and this is one of the challenges the industry has to overcome.

december 2013 | Electricals Today

renewables

The new directive puts the burden of fuel supply on to distribution utilities.

India is far from offshore wind farms as onshore capacity is yet to be tapped fully.

The power curves along with the coefficient of power are two parameters indicating the efficiency of wind turbines. The power curve is being mandated by investors to be third-party verified and is a good way forward for insisting the predetermined output of the wind turbine initially envisaged and guaranteed by the manufacturer. The power curve and the annual energy production are different but definitely connected. The power curve along with the wind distribution of a site will give the annual energy production of a wind turbine at that particular site. There are guarantees provided on a power curve by manufacturers but results for the guarantee are demonstrated in terms of its annual energy production. The coefficient of power has been overlooked over the years and there has been no significant improvement of this parameter for many models of wind turbines. This is also one of the bench marks of the wind turbine’s overall performance and the rotor extraction efficiency plays a significant role as extracted energy by the rotor passed on to the mechanical torque is turned out as electrical power.

Electricals Today | december 2013

The wind turbine’s efficient aerofoil design along with innovative pitching strategy determines the maximisation of energy units per unit of installed capacity (kWh per kW). This will involve improved effort for research, design and development of aerofoils that are innovative and more efficient. The current designs of available aerofoils deployed in wind turbines are capable of an efficiency of 42% to 45% and this need to improve.

n the 80’s and further into the early 90’s, the utilities enthusiasm in supporting the wind energy sector was very evident. There was a slump in the installations during the late 90’s. There are large numbers of factors giving impetus to the sector such as Renewable Purchase Obligations (RPOs), National Action Plan on Climate Change (NAPCC), global mandate for reduction of CO2 emissions, environmental degradation from fossil fuels and therefore a “must take” status was accorded to the energy generated from wind. Even though these factors resulted in enabling policies and programmes of various insti-

renewables

There were a large number of wind turbine technologies which were brought into the country and one of the main challenges was the streamlining of technology to the country’s requirements of atmospheric, terrain and grid conditions.

tutions, the ground realities are a stark contrast which gives a portrait of serious distress and the ride may get tougher if stake holders do not get their act together. The stress started showing up a few years back when utilities voiced their opinion on the management of wind energy due to its penetration level and infirm nature. The same utilities who were very enthusiastic about the development of wind energy are now the strongest adversaries with the shutting down of wind turbines during peak wind season in resource-rich states like Tamil Nadu. The evacuation of energy needs infrastructure of substations and transmission lines that was not developed with the capacity addition of wind turbine installations and the blame for this mishap cannot lie only on the utilities, but also on other stake holders. Further, the Indian Electricity Grid Code 2010 (IEGC-2010), struck a blow to the already bleeding sector in terms of its requirements for forecasting which was to be implemented from 3rd May 2010 for wind farms having an aggregate capacity of 10 MW and above and injecting into a 33 KV level. The mandate of the IEGC-2010 for forecasting was intended to ease the pain of system operators for managing the grid for scheduling and dispatching. There is also a Renewable Regulatory Fund (RRF) mechanism for incentives and penalties to be maintained by National Load Dispatch Centre (NLDC) and has its basis on the IEGC-2010. However, the activities on the ground have ensured that this mandate has not been implemented fully till today. The most important centre piece of this overall mechanism is the wind forecaster. Currently, there are a number of wind farm owners who are taking the services of various renowned forecasters in India and abroad, which are being submitted to the State Load Dispatch Centres (SLDC’s). The methodology of submission of forecasts by huge number of wind farm owners to their respective SLDC’s would jam the resources and furthermore the SLDC’s would find it difficult to foot the bills for use of these resources. The SDLC’s would like AD was withdrawn an aggregate of the forecast to be submitted to them and this information made available by a third entity who interacts with the wind farm owners, the forecaster and SLDCs and who will also assist in the RRF mechanism for incentives and penalties under the management of the NLDC. This would enable the full thrust of its operational efficiency for implementing forecasting. The mechanism for the third entity, which could also be a government entity, would involve equipment for data transfer, models for forecasting and a financial model for sharing various expenditures involved for setting up the whole system. The piece meal approach of forecasts submitted by wind farm owners to SLDC’s would definitely have its pains vis-à-vis the gains of an aggregate forecast submitted by a third entity to the SLDC.

2012

december 2013 | Electricals Today

renewables

CWET puts country's wind potential at 1, 50,000 MW.

ven though various incentives were available for the wind energy sector from the central and state governments, there were ups and downs faced by the sector over the decades. So incentives were not the only driving factors but factors like technology, social acceptance, global impetus, employment, etc. did play their roles. However, the incentives do play a strong role in financial viability of the project. The pains were mainly contributed by the poor performance of some of these turbines and gains contributed by the sustainable viability of these projects. The incentive which played a crucial role was the accelerated depreciation (AD) and withdrawn with effect from 1st April 2012. There are ongoing arguments for and against this incentive. This incentive was seen as a deterrent in the past for a number of projects. Therefore, to ease the pain, implementation of AD should come with checks and balances in the interest of the sector. However, the government has walked the talk by implementing the Generation Based Incentive (GBI) scheme with effect from 4th September 2013 with focus on the quality and quantity generation. It is imperative that all stake holders, including the manufacturers, walk hand in hand the last mile to a successful reinvigoration of the sector. This can be by improving quality of the wind turbines in terms of efficiency, reducing imports, generation of skill sets for design and development domestically, reduction of overall costs, collective and realistic assessment of availability of wind resource and land availability. It is important to understand that sustainability of any sector does not depend only on the incentives doled out, but on the overall quality within the sector.

Electricals Today | december 2013

ndian wind sector is at cross roads, wherein there is disconnect between the heart and mind of many stake holders including the government. The intent is to have a vibrant wind energy sector by enabling policy and programmes for the overall development of renewables. But, the implementation lacks strength to achieve it. The research and development activities in wind energy do not match global standards. It may be argued that the manufacturers do not participate in such research programmes, which could be due to lack of confidence. The grid infrastructure disables the wind turbines instead of enabling evacuation. RPOs are not being met by the states which is evident from the huge stack of unsold renewable energy certificates (RECs). Implementation of the RRF is racing against many road blocks and methodology for forecasting need requires more clarity. Wind energy has a mix of many disciplines of engineering leading to the development of a sound matrix of skill sets for the youth and their empowerment. It is important that a sound renewable energy policy should have a firm legal standing which is enforceable. The enforcement of this policy does not mean to push it down the throat, but an enabling environment with clear methodologies that is able to enforce the policy without major road blocks ensuring a win-win for all stake holders. It is imperative that India should move forward in the wind energy sector where its heart and mind are focused on overcoming challenges with a strong hand and in a designated time frame otherwise it will seem to the world that India has a heart for the development in the renewable energy mix but definitely not a sound will to implement them.

data marketmarket data

better generation in october In the month of October, thermal generation capacity on the all India basis could meet only 95% of the planned addition. Owing to higher monsoon, hydro generation registered more than 100% in all four regions. With more capacity coming on stream, nuclear power generation also registered more than 100%. Thermal could achieve only 90% of the planned capacity. ENERGYWISE - PERFORMANCE STATUS ALL INDIA - REGIONWISE PERIOD: OCT-2013 VIS-A-VIS OCT-2012 AND APR-OCT-2013 VIS-A-VIS APR-OCT-2012 SUMMARY - REGION WISE GENERATION (GWH) Category / Regions

Monitored Capacity (MW)

Target APRIL 2013 - MAR2014

October 2013 Program

Actual

Actual same % of month 2012program 2013

NORTHERN REGION THERMAL

36284.26

207657.00

17479.00

15754.56

16638.03

90.13

NUCLEAR

1620.00

10664.00

799.00

1052.76

1070.27

131.76

HYDRO

15661.25

61597.00

4437.00

4702.81

4274.64

105.99

TOTAL

53565.51

279918.00

22715.00

21510.13

21982.94

94.70

WESTERN REGION

An overview Country's total power generation crossed 2,30,000 MW, with thermal touching more than 1,50,000 MW and hydro crossing 40,000 MW. Nuclear continues to add capacity. Production from Kudankulam has added to nuclear power generation. In renewable energy, solar capacity additions are faster. Put together, RE is hovering around 30,000 MW capacity.

Unit-MW

THERMAL

61122.31

292416.00

25582.00

23387.07

24331.06

91.42

NUCLEAR

1840.00

12363.00

1114.00

1302.07

944.14

116.88

HYDRO

7392.00

15843.00

1650.00

2387.38

1698.09

144.69

TOTAL

70354.31

320622.00

28346.00

27076.52

26973.29

95.52

SOUTHERN REGION THERMAL

29852.80

157021.00

12504.00

12755.08

13063.07

102.01

NUCLEAR

1320.00

12173.00

1278.00

774.00

743.11

60.56

HYDRO

11417.45

29454.00

2882.00

3263.51

1840.41

113.24

TOTAL

42590.25

198648.00

16664.00

16792.59

15646.59

100.77

THERMAL

27345.05

150503.00

13185.00

11244.33

11612.26

85.28

HYDRO

4078.70

11191.00

1158.00

1310.53

903.01

113.17

TOTAL

31423.75

161694.00

14343.00

12554.86

12515.27

87.53

EASTERN REGION

NORTH EASTERN REGION THERMAL

1259.00

5140.00

494.00

342.37

400.70

69.31

HYDRO

1242.00

4178.00

453.00

484.88

517.88

107.04

TOTAL

2501.00

9318.00

947.00

827.25

918.58

87.35

4800.00

579.00

680.02

490.26

117.45

83594.00

79441.37

78526.93

95.03

BHUTAN IMP. REGION 0.00 ALL INDIA REGION TOTAL

200434.82 975000.00

Decemberber 2013 | Electricals Today

market data

Power trading data The Day-Ahead Market (DAM) at the Indian energy Exchange (IEX) traded 85.3 MUs (Million KWh) of electricity on an average daily basis in the month of October 2013. On a cumulative basis, 2.65 BUs (billion KWh) were traded in DAM across the month. The average unconstrained price (price discovered before accounting for transmission congestion) for the month stood at Rs 2.71 per KWh, almost 11% below the previous month’s unconstrained price of Rs 3.04 per KWh

In the transmission segment, in the 765 kV catagory, 98 lines were added against the planeed capacity of 1098. In the 400 kV segment, no additions happened in October. The the number of lines in the 220 kV segment stood at 313. Executive summary of Target and Achievement of Transmission Lines during 2013-14

400

HVDC ± 800 kV "Programme / Achievement"

Up to Oct, 2013

Central Sector State Sector

Central Sector

765 kV

Total

Central Sector

JV/Private Sector

Total

Central Sector State Sector

Total

PGCIL

DVC

Total CS

2585

426

3011

3892

311

4203

Programme

1098

1776

Achievement

Programme

2028

426

2454

2144

Achievement

1549

898

138

1036

Programme 2013-14 Oct, 2013

± 500 kV

Electricals Today | november December 2013 2013

market data

IEX continues to be a market leader in the Non-Solar REC Market, consistently clocking a higher share of the total volume traded on both the power exchanges. Poor Non-solar RPO compliance by the obligated entities manifests in the form of excess supply and low demand in the market, which has been trading at floor price since August last year.

IEX Non-Solar REC Market: Trade Details

IEX continues to be a market leader in the Solar REC Market, consistently clocking a higher share of the total volume traded on both the power exchanges. Poor Solar RPO compliance by the obligated entities reflects in the form of excess supply and low demand in the market, which has been trading at floor price since June 2013.

IEX Solar REC Market: Trade Details

220 kV

400 kV State/Private Sector

Central Sector

Total Central, State & JV/ Private Sector State/Private Sector

Central Sector

l CS

State Sector

JV/Private Sector

203

4756

2486

11445

406

462

3756

776

957

2795

763

Total

PGCIL

DVC

Total CS State Sector

JV/Private Sector

Total

State/Private Sector Total CS State Sector

JV/Private Sector

Grand Total

PGCIL

DVC

4218

6533

717

7250

8938

2486

18674

763

2874

1720

4656

313

411

144

2229

1616

5989

2289

2345

4228

4944

1616

10788

036

1003

474

2513

2332

2447

138

2585

3335

474

6394

Novemberber Decemberber 2013 | Electricals Today

last word last word

Come September

Finally, there are green shoots in power sector. But will it flourish according to stakeholders' expectations? Salil Garg, Director-corporates, India Ratings & Research

h, then you must be familiar with woes of power sector”, was the first reaction I got from the promoter of an independent power plant recently when I introduced myself as a power sector analyst. Woes! Hmm. That’s when I realised that ‘woes’ is what we have started identifying power sector with. Every kind of investment — be it thermal, hydro or renewable is facing its own kind of problems or woes so to speak. To dwell upon the woes would be recanting an old story which most of us have been hearing since 2011 when the boom turned into gloom and everyone waited with bated breath fearing, if this would turn into doom. Come September and we have something to cheer about. As the popular song goes,“Come September/Everything wrong gonna be alright/Come September”, well, if not everything, something was alright this September. CEA monthly report for September 2013 proudly declared “All India generation for the month was 82.51 BU compared to 73.27 BU last year giving a growth of 12.61% and it is 103.86% of the target.” The half yearly number for April-September 2013 was not as heartwarming with a mere 5.7% increase at 481.85 BU of generation as compared to 455.75 BU in H12013. The PLF for thermal power plants was also modest at 61.41% in H1 2014 but the number for September 2013 was higher by 324 basis points at 64.65%. The modest PLF is understandably an outcome of large capacity additions during the last three years - 46 GW of coal based capacity alone in FY09-FY13 - but not enough fuel to run the plants.

e know that 82.51 BU of total electricity generation is not the highest ever monthly generation, as the monthly generation of 83.94 BUs in May 2013 was higher than September 2013. But what is significant is that normally in the past three FYs, September used to be a lean month for power generation as compared to previous two months with electricity generation dropping in September over July and August of the same year. Thus, while the September generation of 73.27 BUs was higher than August 2013, it was still lower than May 2013. Lower generation in September 2013 is explained by backing down in

Electricals Today | december 2013

many states due to prolonged monsoons. Coming back to the original point, the 12.61% YoY growth in power generation in September 2013 is no mean task when there is an environment of fuel scarcity all around. A little break-up of numbers shows that two sub-categories - nuclear and Bhutan import - actually witnessed a small de-growth in September, growth in hydro was modest at 3.09% and it was the thermal segment which surprised with a growth of 16.41%.

ithin thermal the story gets even clearer if one looks at the break-up into coal, lignite, gas, liquid fuel and diesel. The last three categories for gas, liquid fuel and diesel witnessed sharp declines of 29%, 90% and 38% over same month in last year. This was predictable given the high cost of liquid fuel and diesel and decline in availability of gas. Growth in lignite based electricity was good at 11% but it was the sharp jump of 21.9% in coal based electricity generation that led to an overall 16.41% higher September 2013 numbers. Coal based power generation as such accounted for 70% of total electricity generation in September 2013. Out of the ownership segments, the central government owned coal based power stations achieved a PLF of 73.09% in September 2013 as against 68.22% in September 2012, the private sector IPPs improved their PLF to 62.02% from 55.6% in September 2012 and state government owned coal based power plants improved their PLF to 58.4% from 56.9%. Thus, the central government and private sector owned coal based power plants were leading the improvement in generation. The state government owned coal plants are doing better than last year but the improvement is not as good as in other cases. Further, private sector owned coal based IPPs recorded 126% of target production in September 2013. Is there a direction in all this statistics – are we looking at a turnaround story? Are the efforts to solve the coal problems bearing some fruit? Is coal supply to power sector improving finally? Are the IPPs looking at a situation where they can avoid a doom? Can the newly set up IPPs facing the fuel crunch touch the magical 80% PLF number sometime next financial year? What will be yoy growth in electricity generation in September 2014? I am keeping my fingers crossed.

INDIA MAGAZINES

Electricals Today (English) www.itp.com

etcontact@itp.com, etsales@itp.com

Launched in January 2013, Electricals Today presents a brand new perspective to the Indian electrical industry and its associated sectors. The industry is going through a dynamic phase and it needs an

Download Media Pack Current Issue

equally vibrant platform where policy-makers, technocrats, decisionmakers as well as all key stake holders can come together. As a lively B2B magazine with pan-India reach, Electricals Today aims to serve this purpose by connecting information, intelligence and insights through useful content, latest news and inspiring interviews.

For more information click here to download the Media Pack

NOW AVAILABLE FOR FREE ON

DOWNLOAD YOUR DIGITAL ISSUE TODAY

Go to Apple App Store or Google Play and search for Electricals Today