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C elebrating 65 t h R epublic D ay POWER

S E C T O R at a G L A N C E
January 26, 2014

INSIDE STORIES
Govt. relaxes norms for mega power projects Features of power tariffs in Delhi Buying hydro power may become mandatory for discoms Kudankulam nuclear plant commercial operation delayed further
SPOTLIGHT

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Capacity Addition of 21 GW During 2012-13 4 mines in Odisha to be allocated to power firms Electricity tribunal sets aside TNERC solar order Performances of Power Sector

Micro hybrid power plant Page : 06

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Photo: vipul kumar

POWER SECTOR AT A GLANCE 26 January, 2014

N E W S AT A G L A N C E

To boost supply, Govt relaxes norms for mega power projects


The Govt decided to further ease the Mega Power Policy in a move that will help nearly 25 projects with investments of more than Rs 1.6 lakh crore. This is expected to increase power availability in the country and also ensure that consumers are charged reasonably for electricity supply. Benefits Tie up sales with distribution utilities through long-term PPA . The amendment allows the developer to sell up to 35 % of installed/net capacity under regulated tariff as per the specific host State policy. It will also benefit supercritical projects that are awarded through international competitive bidding with the mandatory condition of setting up indigenous manufacturing facilities. Development fund The Cabinet also approved setting up of Power System Development Fund (PSDF). The projects taken up to strengthen the electricity transmission grid can source funding from this Rs 6,000-crore facility. Source: Business Line, Dated: 02/01/14

Southern States connected to national power grid


Tamil Nadu, Karnataka, Kerala, and Andhra Pradesh and the Union Territory of Puducherry will now have better electricity supply, as the region is being synchronised with the national transmission network of electricity. Synchronous integration of the Southern grid with rest of the national grid shall not only augment the inter -regional power transfer capacity of Southern region but also relieve the congestion being experienced in a few transmission corridors. This would be a boost for further economic growth of the country. It is likely to take a few months before power flow over this line is stabilised, the Power Ministry said in a statement. Since the Southern region was not connected, States in the region faced problems in importing electricity from the rest of the country. Also, they could not supply power to States outside the Southern grid, whenever there was excess supply. The integration of grids has been achieved after the commissioning of the Raichur -Solapur 765 kV single circuit transmission line by PGCIL. Source: Business Line, Dated:01/01/14

Grid integration may help check 2012-like power outages


Southern power grid to the national grid will reduce the possibility of the recurrence of the massive power outage in India a year and half ago, and also improve the quality of power in the country. The load flow will be smoother and overdrawal of power by individual States from the national grid can be controlled better. It was the overdrawal by certain States in the peak of summer that had led to the crash of the national grid and the two day outage in 2012. The southern power grid was synchronised with the national power transmission network on the New Years Eve, thus facilitating seamless flow of power across the five regional grids. Source: Business Line, Dated: 02/01/14

Power trading set to get a boost as


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India gets a national grid


In what may give a big boost to power trading business in the country, India has finally connected the southern region with rest of the country for unhindered electricity flow, achieving the goal of a national grid after a long wait. CTU Power Grid, has successfully commissioned the Raichur-Solapur 765-KV single-circuit transmission line, interconnecting the southern grid synchronously with the rest of the national power grid - a
Financial restructuring plan (FRP) that mandates timely tariff revisions, discoms in UP , TN Haryana and Rajasthan have cut their operational losses significantly and are on track to slash them further. Tamil Nadus discom has slashed its cash losses by a whopping 64% to Rs 2,887 cr from March 2012. During the same period, UP and Rajasthan discoms cut their respective losses by 46% and 42%. Their losses are estimated at R9,899 and R13,205 cr, respectively,. Similarly, the Haryana discom has reduced its operational losses by 56% to R2,018 cr. To comply with the FRP conditions, these states are now making upfront payment of subsidy to discoms on a monthly basis and also paying electricity bills of govt depts and agencies on time. Discoms generate 30 -40% of their revenues from these two sources. Source: The Financial Express, Dated:29/12/13
POWER SECTOR AT A GLANCE 26 January, 2014

Discoms slash losses, set to cut them further

move that would facilitate bulk transfer of power across regional boundaries. With this, the mission of One Nation One Grid One Frequency has been successfully accomplished. The national grid will help southern states, especially Andhra Pradesh, Tamil Nadu and Kerala, which are facing huge shortages, lift surplus power from other regions. Till now, four regional grids -- northern, eastern, western and north-eastern -- were connected synchronously and the southern region was connected to the other four grids via HVDC links.
Source: The Financial Express, Dated:02/01/14

N E W S AT A G L A N C E

AAPs New Year gift for Delhi: Power tariff halved for use up to 400 units/month
Ending 2013 by keeping yet another poll promise, the AAP State Govt announced a 50 % cut in power tariff for households using up to 400 units in Delhi. It also announced plans to order an audit into the finances of the 3 private power distribution companies BSES Yamuna, BSES Rajdhani (Reliance Infra companies) and TPDDL (a Tata company). The decision to subsidise power tariff involving a cash outgo of Rs 61 crore in the next three months. Reliance Infrastructure has 51 % stake in BSES, while the Delhi Government holds 49 per cent stake in the BSES companies, which run two utilities covering two-thirds of the National Capital. Source: Business Line, Dated:31/12/13

Battle between Tata, Anil Ambani discoms and Kejriwal's AAP govt intensifies over CAG audit
The face-off between Delhis three power distribution companies controlled by Tata Power Ltd and Reliance Infrastructure and the state government intensified with the three writing to the additional secretary, power, reiterating their stance there was no reason for a Comptroller and Auditor General check even as the government ordered a CAG audit of their finances, reports Bureau in New Delhi. Chief minister ArvindKejriwal said the CAG had said it could conduct the audit, adding that the lieutenant governors order on the audit would go to the CAG . The discoms have said the matter was subjudice and that their accounts were, in any case, being audited by a CAG -approved panel of auditors. They have also said that their purchases of power were subject to the scrutiny of the Delhi Electricity Regulatory Commission. Source: The Financial Express, Dated:02/01/14

Powering distribution reforms


Power distribution segment is the weakest link in the entire power sector value chain, unless structural reforms take place in this segment high AT&C losses, unsustainable cross-subsidy levels and pile up of regulatory assets have been a bane for the sector for a long time. The best way to undertake these reforms is to allow gradual transformation of present monolithic, monopolistic and opaque discom structure into a multi -buyer, multi-seller model for retail supply of power coupled with separation of the wire business. AT&C losses can be reduced to normative levels of 15% across the country by elimination of theft, improvement in billing and collection efficiency and improvement of T&D infrastructure at every voltage level & unsustainable cross -subsidy is also a key anomaly. A combination of declining AT&C losses and UC mechanism may reduce overall cross -subsidy entailing cost reflective tariffs across consumer categories. Source: The Financial Express, Dated:31/12/13

Power over drawl from grid made costly from Feb 17


The power over drawl by power utilities across the country has been made costly by CERC from Feb 17.These changes have been made to maintain the grid discipline through the commercial mechanism for deviation settlements. CERC has revised the power drawl charges by tightening the frequency band and enhancing the charges applicable

States can subsidise electricity but discoms should be revenue neutral: Scindia
It is the State Government's prerogative if it wants to subsidise certain group of customers on electricity tariff. But the discoms should be revenue neutral. Arvind Kejriwal, has announced reducing electricity rates by 50 % for consumers using up to 400 units a months. Political leaders have demanded a similar move for Mumbai too. This has started a debate over viability of electricity distribution utilities and participation of private players in the distribution sector. Many discoms are financially stressed and the Govt has unveiled a financial restructuring package to revive them. Source: Business Line, Dated: 16/01/2014

for power over drawl by utilities. The charges for deviation for each 0.01 Hz frequency step will change the power cost by 35.60 paise per unit in frequency range of 50.05 Hz to 50.00 Hz and 20.84 paise per unit in frequency range from 49.70 Hz to 50.00 Hz. At 49.70 Hz the over drawl charges has been increased to Rs. 8.2404 per unit and it is Rs.1.9884 per unit at 50.00 Hz and free power at frequency exceeding 50.05 Hz. No over drawl is permitted from grid when the system frequency is below 49.7 Hz. In case of over drawl by any utility at system frequency less than 49.7 Hz a very strong deterrent has been made as the over drawl charges shall be Rs. 16.4808 per unit .
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Source: Punjabnewsexpress.com, Dated: 14/01/2014

POWER SECTOR AT A GLANCE 26 January, 2014

N E W S AT A G L A N C E

SEEP initiative: World Bank to help slash your electricity bills


A World Bank-aided initiative of the Bureau of Energy Efficiency will soon be considered for approval by the Cabinet Committee for Economic Affairs, which will is expected to cause production and sales of super efficient electrical appliances in India. CCEA will consider the proposal to let govt of India provide Rs 100 cr, to supplement the Rs 250 cr from World Bank. These funds will be used to incentivize manufacturers of electrical appliances to make products that consume extremely low amounts of electricity compared with those in the market today. For starters, the Super Efficient Equipment Programme will cover the most ubiquitous of electrical appliancesthe ceiling fansthough over time, it will be extended to other appliances as well. Some 30 million ceiling fans are sold in India and most of them are of 70 watts. Super efficient fans that deliver the same amount of air but are twice as efficient (or, 35 watts) will be eligible for the incentive. Manufacturers on board Several appliances manufacturers are looking at super efficient technologies, and the SEEP initiative will help them get there quicker. Usha International, whose 43 W fan recently won the first prize at the National Energy Conservation Awards, 2013, is also looking to launch BLDC motor -based fans. Delay costs money Experts call for quick rollout of the programme and its extension to other appliances. In a paper prepared in April last year, Prayas has warned about the costs of delaying the SEEP initiative. If a refrigerator saves 100 kWh/year and it runs for 10 years, it will save 1000 kWh/year over its life. So, if a million refrigerators are sold per year, an opportunity of annual saving 1 billion units is lost if the program is delayed by a year Source: Business Line, Dated: 07/01/14

Gas price increase puts at risk under-construction plants


The govt has finally notified an increase in gas prices. While this is good news for gas producers, the collateral damage on the power and fertiliser sectors will be substantial. The new formula will push up gas prices from the current $4.2 a million British thermal units (mBtu) to $8.4 an mBtu. The new price regime will kick in from April 1 and be applicable for 5 years. Every quarter, prices will be reviewed and adjusted, depending on how global prices move. The obvious gainers of this are the gas producers. Analysts believe ONGC, Oil India and Reliance will benefit from this move and will be earnings -accretive for these. The market expects earnings to increase anywhere between 15 and 30 % for these, depending on how the subsidy burden is shared. Motilal Oswal Securities has been conservative in its estimates and has modelled a gas price of $6.3 an mBtu, assuming 50 % subsidy to the power and fertiliser sectors. However, if ONGC and Oil India do not have to bear the subsidy, the earnings estimates for these two companies will increase another 15 % . Reliance has to await a Supreme Court verdict, scheduled for hearing in March, before its path for higher gas prices is paved. However, the downside of this move will render gas-fired power plants unviable. India has a total capacity of 20 GW gas -fired power plants and another 9.5 GW of capacity is under construction. The overall PLF of these capacities is down to 25 % on lower gas availability. With the increase in gas prices, the disputes between SEBs and generators will increase, as these power producers will want to pass on the higher costs. Source: Business Standard, Dated: 13/01/2014

Buying hydro power may become mandatory for discoms

Centre moves to cut BESTs power in Mumbai


The BEST may soon lose its power supply monopoly in the island city. The Union power ministry is likely to issue a cabinet note to amend two sections of the Electricity Act, 2003, to provide "open access and multiple licensing for power distribution" in the island city. The move will not only end BEST's cross -subsidies for island city consumers and its transport wing, but could soon put the loss-making undertaking out of business. If the Act is amended, BEST will not be able to stop other discoms from poaching on its consumer base from Colaba/Cuffe Parade to Mahim/Sion. It could lead to large-scale migration of high-end consumers to other discoms, thereby affecting its subsidy regime. All members assured that they would take up the matter with Union ministers and MPs from Mumbai. "There was a similar move in the past, but we had challenged it in the Supreme Court, which ruled in our favour. But it seems the Centre now wants to amend the Act to facilitate the entry of private power players in the island city Source: The Times Of India, Dated: 07/01/14

The Union power ministry is planning to make it mandatory for companies discoms to buy electricity from hydel projects . The idea is to attract investments into the sector and raise the falling share of hydroelectricity in the countrys power mix. Since the proposal has the potential to increase discoms power purchase costs, the ministry has decided to consult electricity regulators and state governments on the. Specifically, the idea is to put in place a policy of hydropower purchase obligation (HPO) similar to renewable PPO . Under the mechanism, discoms in states lacking renewable resources can fulfil their obligation by buying renewable energy certificates from others . India has the potential to generate 1.5 lakh mw electricity from hydro resources, but it has harnessed only 40,000 mw. The Union power ministry had envisaged capacity addition of 8,237 mw in the hydropower sector during the 11th Plan. However, only half the targeted capacity could be added Source: The Financial Express, Dated: 10/01/2014

POWER SECTOR AT A GLANCE 26 January, 2014

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N E W S AT A G L A N C E

Kudankulam nuclear plant commercial operation delayed further


The commercial operation of the first 1,000 MW atomic power plant at Kudankulam got further delayed and is expected to happen in February. India's atomic power plant operator NPCIL is setting up two 1,000 MW Russian reactors at Kudankulam in Tirunelveli district. The total outlay for the project is over Rs 17,000 cr. The first unit attained criticality July 2013, which is the beginning of the fission process. In August 2013, the Atomic Energy Regulatory Board (AERB) gave its permission to generate power up to 50% (500 MW) of the rated capacity. Towards the end of December 2013, NPCIL said it had to carry out certain mandatory tests prescribed by AERB at the first unit before the reactor power is increased. The physical progress of the work is 99.81 % in the case of the first unit and 96.63 % in respect of the second unit in December 2013. Source: Business Today, Dated: 16/01/2014

Discoms knock on Delhi HC doors for reprieve from Arvind Kejriwals audit shock
Reliance Infrastructure-owned BSES Yamuna and BSES Rajdhani and Tata Power Delhi Distribution moved the Delhi High Court against order of the Arvind Kejriwal-led Delhi govt directing CAG to carry out an audit of the two discoms. Kejriwal had called for an audit of the 3 discoms alleging the trio has in the past manipulated accounts with an intention to hike power tariff. Earlier senior officials of the 3 discoms had requested the Delhi govt bureaucrats to desist from taking any action against them in a matter which will determine if the CAG has the requisite authority to audit accounts of private discoms. The Delhi govt, at present, has a 49% stake in these discoms. The accounts of the discoms are also approved by the Board of directors of the companies. After this, the approved accounts are then submitted to DERC, which undertakes a detailed prudence check. The companies have consistently maintained that they buy their entire power from generating stations that belong to state and central governments at the rates determined by CERC & DERC. Source: The Financial Express, Dated: 23/01/2014

NHPCs Myanmar projects deemed unviable, shelved


State-owned NHPCs proposed hydel projects in Myanmar, 880 MW Tamanthi and 880 MW Shwezaye, are unlikely to take off given their social and environmental implications and abnormally high tariffs. NHPC was asked by the ministry of external affairs (MEA) to develop the 2 projects to promote cooperation between India and Myanmar in the hydropower sector. Tamanthi, developing the project would require expenditure of at least 17,270 cr. That would entail minimum electricity tariff of Rs 6.46 a unit for the project. The cost economics of the Shwezaye is even worse, with tariff estimated at Rs11 a unit. Since hydel projects are prone to cost escalation due to the possibility of geological and hydrological surprises during implementation, further increase in project cost and tariffs cannot be ruled out. Source: The Financial Express, Dated: 22/01/2014

Gridco seeks 32% hike for bulk power supply in Orissa


Gridco, the Orissa govt's sole bulk power trading company, has demanded a 32% hike in bulk power supply (BPS) in its price revision petition with the Orissa Electricity Regulatory Commission (OERC), projecting a revenue gap of Rs 2,252 cr for 2014-15. The average BPS price will increase from Rs 2.65 to Rs 3.48 per unit having a cascading effect on retail supply tariff If the regulator approves the proposed revenue requirement of Gridco. Anticipating an energy requirement of 27,145 million units for 4 DISCOMS CESU, NESCO, SOUTHCO and WESCO. After considering the dues from discoms on account of year -end adjustment bills and BSP bills, the actual aggregate revenue gap becomes Rs 5,972.71 cr, including Rs 1,505.78 cr defaulted by discoms towards BSP dues. Gridco has proposed to procure the total hydel energy of 5,764.16 MU at a cost of Rs 416.35 crore with an average rate of 72.23 paise per unit against average rate of 68.98 paise per unit approved for 2013 -14. Source: The Financial Express, Dated: 22/01/2014

Delhi discoms offer to surrender surplus power to state govt


Facing allegations of selling a surplus 1,000 mw to group companies at below -market rates to supress profits, BSES discoms have urged the Delhi govt to take over management of unused power Despite the Delhi High court quashing the regulatory order that said discoms could make profit of Rs 3,577 cr a year by selling surplus power alone, consumer groups continue to cite the order to bolster their case that discoms are manipulating electricity trading deals. Discoms maintain that power is surplus only during nonpeak hours when prevailing market rates are low. So, prices are usually lower than rates at which power is purchased from central generating stations under long-term PPAs. Surplus electricity are selled through transparent mechanisms like power exchanges, trading and banking arrangements and unscheduled interchange (UI), where all transactions are accounted by the SLDC in compliance with the guidelines laid down by the regulator. BSES discoms request the Delhi govt to take over the entire responsibility for ensuring adequate power to meet the peak demand and sell off-peak power in the most optimal manner. Source: The Financial Express, Dated: 20/01/2014

POWER SECTOR AT A GLANCE 26 January, 2014

I N N O VAT I O N

Micro hybrid power plant developed by Retired Engineer


Using a unique blend of technologies of the non-conventional energy sector, a Punjab engineer has developed a concept and designs of a micro hybrid power plant, which could not only make a village self sufficient in its power needs but provide organic manure as well as run chilling centres or cold storages. Mr.Bulwant Singh Brar, who retired from the Punjab Mandi Board said that he had the patents and trademark for the mathematical formula he had worked out to set up MHPP of 250 kilowatt through a combination of solar power, bio -gas and bio-mass technologies to produce electricity. Each plant can be set up on a 2.5 acre plot of land with an investment of approximately Rs. 3.00 crore and provide employment to about 20 persons, while the per unit cost of power generation would average around Rs. 4.29. Following his meetings at different levels, Mr. Brar said that Department of Science and Technology of the Union government had agreed to provide up to 80 per cent of the funds required to set up pilot plants, if a relevant proposal was processed and recommended by the respective State governments, some of which have initiated the procedure to identify at least one spot in every district. Mr. Brar said that one MHPP could come up in just six months as compared to the years spent on constructing the conventional thermal plants. A village with about 3000 cattle head could provide 27 tonnes of cow dung to produce biogas, three tonnes of farm residue like paddy husk, straw or cotton stalks as bio -mass raw material for such a plant. Coupled with the solar power that would be generated on the plants rooftop, the village could be assured of 24 hours power supply, for domestic use. The plant would daily produce around 2.7 tonnes of compost and about 15 quintals of ash, whose management or storage was a viable proposition. Mr. Brar said that these non-conventional energy sources set up singularly failed as alternate providers of power due to flaws in the design, availability of raw material and disposal of waste. A 250 KW Bio -gas power plant alone required 2.00 to 2.50 acres of land, an investment of Rs. 3.00 crore and manpower of up to 25 persons. It required 80 tonnes of cow dung as raw material and produced 8 tonnes of compost. The raw material could be collected from 8 to 10 thousand cattle head, spread over three to four villages. Collection of raw material and disposal of compost added to the cost of operation, where the average per unit cost of generation worked to be around Rs 6.00. Similar was the case in power plants based on bio -mass alone which produce 50 quintals of ash daily, while due to availability of sunlight the cost of per unit cost of generation at a separate solar plant worked to nearly Rs 10. The steam generated from these MHPP would be utilised in running cold storage and milk chilling plants at no extra cost, Mr Brar sought to remind that while the mixture of compost and ash used as manure would reduce the cost of farm inputs. Mr Brar emphasised that unlike the conventional power generation and distributions the MHPP, being the 24 hours local facility, would not be plagued by common problems of grid failure. Transmission losses would be negligible, while the stakeholders would receive quality power without any fluctuation in voltage. If operated on a co -operative mode, these plants would cover up their costs in 10 years, while 5000 such plants also provided a major employment avenue for engineers, technicians, laboratory attendants and semi skilled labour. Keywords: micro hybrid power plants,

WHY INDIA IS BETTING BIG ON SOLAR POWER


The electricity-hungry country is flipping the switch on huge new solar energy projects to fuel its growing economy, using cheap - mainly Chinese - foreign technology to reduce once sky-high generation costs to competitive levels. Since 2010, the country has hiked installed solar power capacity from a meagre 17.8 megawatts to more than 2,000MW, as part of Prime Minister Manmohan Singh's aim to make 'the sun occupy centre -stage' in the country's energy mix. Key to the progress has been a rapid fall in the cost per unit of solar electricity to close to what is known as 'grid parity' - the cost of conventional electricity generated by carbon -gas emitting coal. Charanka, in the salt plains of the western state of Gujarat, is currently Asia's biggest solar plant, producing 214MW. Other projects are under way in a string of states from Andhra Pradesh to Madhya Pradesh, Chhattisgarh and Tamil Nadu. What excites solar energy experts about India's prospects is that it is geographically ideal to harness the sun's power because of its abundant sunshine. Also, solar parks are far faster and easier to construct than nuclear plants. Charanka, for instance, took just 16 months to build. The drive to harness the sun's power began in earnest with the 2010 creation of the Jawaharlal Nehru National Solar Mission. It set a target of generating 20,000MW of grid-connected solar power and 2,000MW of off-grid generation, such as roof panels, by 2022. The next stage of expansion will see India build the world's largest solar plant to generate 4,000MW on the shores of a saltwater lake in the northwestern desert state of Rajasthan, which should drive solar power costs even lower. Operators believe economies of scale from the Rs 280 -billion ($4.4 billion) Sambhar plant to be constructed over the next seven years will reduce prices to Rs 5.0 -5.5 a kilowatt-hour. Greater economies of scale, better technology and progressively cheaper panels and modules that turn sunshine into electricity have hammered down prices. The price fall was also greased by the global financial crisis, which cut demand for equipment in developed nations, and vast Chinese expansion that created an equipment glut.
Source: The Economic Times

POWER SECTOR AT A GLANCE 26 January, 2014

HIGHLIGHTS

Historical Power Generation Capacity Addition of 21 GW During 2112-1


Bids for Odisha & Cheyyur UMMP to be Opened on 26th February

Minister of Mines meets Minister for Mineral Resources of Mozambique


A bilateral meeting between a five member delegation of the Republic of Mozambique led by Her Excellency Mrs Esperanca Bias, Minister for Mineral Resources of Mozambique and Shri Dinsha Patel, Honble Minister of Mines, Government of India was held today. They discussed various issues to promote further mutual cooperation for the development in the mining sector of both the countries under the Memorandum of Understanding (MOU) on cooperation in the field of Mineral Resources signed between Republic of Mozambique and Republic of India on 30th September, 2010 at New Delhi. Present on the occasion were, Shri R. Sridharan, Additional Secretary, Ministry of Mines, Shri Arun Kumar, Joint Secretary, Shri D.S. Mishra, Joint Secretary and other senior officials of the Ministry.

An historical 21 GW of capacity addition took place during the financial year 2012-13 and more than 8700 MW of capacity addition has been achieved by December, 2013 for the financial year 2013-14. The total installed capacity in the country at present stands at 236 GW. This was stated by Shri Jyotiraditya Scindia, Union Minister of State [I/C] of Power while addressing the media in New Delhi. The Minister disclosed that total installed capacity of 400 GW will be required by 2022 to meet the power demand, which is a huge challenge for the country.

SJVN's Khirvire Wind Power Project Commences Generation


Mr. Scindia opined that availability, adequacy, and affordability have to be the crux of power sector strategy in India. For this, the emphasis of power sector development should be on capacity addition, transmission and last mile connectivity. In a major achievement, the southern grid connectivity was achieved three months ahead of schedule with the commissioning of 765 Kv Raichur-Sholapur Transmission lineon 31st December, 2013. With this the power system has stepped into a new era i.e., One Nation, One Grid, One Frequency, the minister added. He said that the country will have the largest transmission capacity in the world in the next four to five years. Mr. Scindia said that the RGGVY scheme has been extended to the 12th Plan and for the balance of the 13th Plan, covering habitations with the population of 100 and above. More than Rs. 35000 cr have been approved for the completion of the scheme in the 13th Plan. After achieving great success in hydro power generation, Satluj Jal Vidyut Nigam Limited (SJVNL) has successfully commissioned 15 Wind Power turbines of its 47.6 MW Khirvire Wind Power Project in Ahmednagar District of Maharashtra. Each of the 15 Wind Power turbines has a capacity to generate 850 kV energy. The project will have a total 56 turbine units and will have annual energy generation of 85.65 MU of electricity. The 15 turbine units commissioned are located in village Khirvire/Kombhalane. The project has been linked to a 132 kV Transmission Line from Akole 132 kV Grid Sub Station to 2 x 50 MVA, 33/132 kV Wind Farm Pooling Station connecting 33 kV Line for Inter connecting the Maharashtra Grid. As per the execution schedule, the project will be fully commissioned during current financial year.

Nathpa Jhakri Hydro Power Station Awarded for Meritorious Performance


Consecutively for the 3rd year in a row, SJVN's flagship 1500 MW Nathpa Jhakri Hydro Power Station has been selected for 'Silver Shield' for the year 2012-13, and 'Bronze Shield' for the year 2011-12, while for its meritorious performance in the year 2010-11 it had been awarded 'Gold Shield' by the Ministry of Power, Govt. of India. The prestigious awards will be presented by Minister of State for Power (I/C), Shri Jyotiraditya Scindia, at a function at Vigyan Bhavan, New Delhi on 4th February, 2014. The Power Station, in operation since 2003-04, had established a new record of power generation at 7610 MU during the year 2011-12 while during the year 2012-13 it had generated 6777 MU. During the year 2011-12, the power station had exceeded its design energy of 6612 MU by 1000 MU and established an all time high record of generation while during the year 2012-13 too it had exceeded the design energy despite all odds of extremely low flow in river Satluj. The power station had also crossed the 50,000 MU generation mark in October, 2011 with a Plant Availability Factor of 104.26% in 2011-12 and crossed 60,000 MU in June 2013 with a PAF of 105.9% in the year 2012 -13. Shri R.P. Singh, CMD, SJVN informed that successive records of power generation were being achieved by the Power Station as a result of optimum machine and water management. The generation by the power station during 2011-12 had registered about 50% increase (from 5104 MU to 7610 MU) since commencement of full operations in the year 2004-05. The power station is since supplying valuable power to the nine northern grid states namely Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand,Chandigarh & Delhi. Shri Singh also informed that the Company's 412 MW Rampur H.E. Project in Himachal Pradesh was nearing completion is likely to be commissioned during the current financial year.

Speaking about the supply of gas to the coal sector, the Minister said that after the latest decision of the Govt. to cap the supply of domestic gas to the fertilizer sector, nearly 9 MMSCMD of additional gas will be available to the power sector over the next three years. The Minister admitted that the shortage of gas supply has become a matter of concern since nearly 20 GW of capacity is tied up in gas based power projects. With respect to the supply of coal to the power sector, the Minister said that a remarkable achievement has been signing of 157 FSAs with total capacity of 72 GW out of a total of stipulated 78 GW in a record time of 2 and half months. Mr. Scindia disclosed that 9 applications have been received for Odisha UMPP and 8 for Cheyyur [Tamil Nadu], the bids for which will be opened on 26th February, 2014. The Minister elaborated that several level of redundancies have been put in place and these mechanisms are now institutionalized to ensure grid security. Frequency band has been tightened which is now closer to international norms and congestion charges have been imposed to ensure that everybody follows the guidelines. Similarly, autonomy to POSOCO is also under process.

The Ladakh region of J&K will be connected with the National Grid soon since the Cabinet has approved the transmission project between Srinagar and Leh along with the associated transmission lines as well as sub stations. This will enable remote areas of Leh and Kargil to benefit from the much needed power supply during winter as well as allow evacuation of excess power in summer from NHPC Power Plants of Nimmo Bazgo, and Chutak recently commissioned in the Leh/Kargil area. The Minister added that his Ministry has been working closely with the Ministry of Environment and Forests for speedy clearances. More than 4800 MW of Hydro Capacity received wildlife/environment/forest clearances recently as a result of these efforts. Similarly, E-GoM has been set up to expedite Hydro Projects in Arunachal Pradesh. Speaking on the issue of subsidy on power, the Minister said that if the states wish to give subsidy on electricity, then they must re-imburse the subsidy amount to the concerned DISCOM immediately to ensure revenue neutrality of the DISCOM. The Financial Restructuring of DISCOMs is doing well in the four states of Tamil Nadu, Rajasthan, UP & Haryana with an FRP amount of Rs 95,247 cr finalized and bonds worth Rs 46,707 cr already issued, the Minister added.

POWER SECTOR AT A GLANCE 26 January, 2014

COAL IN NEWS

Coal Ministry to seek CCI nod to fast-track mine development


The Coal Ministry will seek approval from the Cabinet Committee on Investment (CCI) to fast -track development of allocated mining blocks where no cases are pending. The development follows concerns expressed by the Odisha govt on granting approvals for development of coal mines in the wake of the CBIs investigations into alleged irregularities in allocations of blocks. Approval of the CCI is being sought so that the ministry may go ahead with captive coal block development and continue to accord statutory approvals in respect of allocated blocks where no cases or FIRs have been filed by the CBI The CBI has registered 3 preliminary enquiries since May 2012 regarding alleged irregularities in allocation of coal blocks and has filed 14 FIRs. Of the 218 coal blocks allocated to public and private firms, holding estimated geological reserves of about 50 billion tonnes, 47 have been deallocated. Source: Business Line, Dated:01/01/14

4 mines in Odisha to be allocated to power firms

Source: Business Line, Dated: 08/01/14

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Jindal Seeks Protection of Industries Coal Blocks


After deallocation of several coal blocks, Chairman of JSPL Naveen Jindal has requested the State Govt to protect coal blocks allocated to industries in the State. Asked about its Angul steel project with a production capacity of 6 MT per annum, progress of the project is on schedule and it will start production by the end of January next year. JSPL would have an agreement with the State-run Odisha Mining Corporation to procure iron ore.The Ministry of Coal deallocated coal blocks allocated to JSPL in Jharkhand and Madhya Pradesh last week for delay in its development. Source: The Indian Express, Dated: 31/12/13

Coal Ministry identifies mines for tariff-based bidding


Coal Minister SriprakashJaiswal has informed the Bihar govt that the ministry has identified some coals blocks to be allocated to the power producers through tariff-based competitive bidding. Centre shall identify the area containing coal to a company or corporation awarded a power project on the basis of competitive bids for tariff. Source: Business Line, Dated: 02/01/14

POWER SECTOR AT A GLANCE 26 January, 2014

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R E N E WA B L E S

Renewable Energy Prospects Bright: Report


Kerala can meet over 95 % of its energy demand using renewable energy sources by the year 2050, The Energy Report - Kerala, prepared by WWF-India and the World Institute of Sustainable Energy (WISE) Pune, is a state-specific report that provides a vision for a 100 % renewable and sustainable energy supply in another 3 decades. One significant contributor to the future renewable energy mix - and for the moment unpopular, at least in the current political scene - is solar power. The estimation of solar power potential in Kerala, as per the report, is around 44,456 MW. Out of this, 31,145 MW alone can be got from rooftops of households and commercial establishments. Source: The Indian Express, Dated:01/01/14

Tata Power Solar launches Dynamo


Solar power solutions provider Tata Power Solar has launched Tata Dynamo, a 1 KVA solar power pack system to its solar product line-up. The power pack, which is a combination of solar PV panels, inverter and battery, is expected to help consumers enjoy uninterrupted power supply for up to 8 hour The Dynamo works like a regular inverter, but has solar as its primary source of power. The system charges itself while powering all the connected appliances through free solar energy. When sunlight is unavailable it automatically shifts to regular electricity. It will be useful in both urban as well as rural areas where power cuts are frequent and help people manage their power requirements better, while reducing the dependency on grid supply. Source: Business Line, Dated: 10/01/2014

Renewable energy - The answer to India's emission woes


Discussion, debate and deliberation on climate change and what it entails is just about picking up. Even on a global front, move to restrict or commit its own CO2 emissions. It's about time the world's fourth largest CO2 emitter capped its own emissions , Per capita basis, India's CO2 emissions were much lower than those of most developed countries and China, the sheer increase in population has been a big factor in increasing the emissions. Source: www.moneycontrol.com, Dated: 03/01/14
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India is now being painted as a climate villain, a polluting villain that under the name of climate -commons opposes any

Electricity tribunal sets aside TNERC solar order


The Appellate Tribunal for Electricity (APTEL) has set aside the TNERC solar order. Solar purchase obligation On October 19, 2012, the Tamil Nadu Govt came out with its solar policy, which sought to create 3,000 MW of solar power capacity in the State by 2015. TN Govt's policy directive The TN Governments policy directive was issued under Section 108 of the Electricity Act, 2003, which empowers state governments to issue such directives in matters of policy involving public interest'' Consequent to this, TNERC issued a suo moto order, entitled Issues relating to Tamil Nadu Energy Policy, 2012', which in effect, technically expanded the State Governments solar policy. Implications Last year, the Tamil Nadu Govt-owned electricity generation and distribution utility, TANGEDCO, came out with a tender, calling for bids from those who are interested in putting up solar power projects in the State and selling the power to TANGEDCO at prices determined in the bidding process. Signing of PPAs TANGEDCO has dithered in signing the PPAs, because in the meantime consumer associations such as TASMA went to the courts against the order, mainly against the solar purchase obligation. Source: Business Line, Dated: 21/01/2014

REC mechanism not being honoured by most States; Rays Power taps APTEL
Most States are still not honoring the REC mechanism available for solar photovoltaic power plants subjecting them to financial strain. A turnkey solutions provider for solar PV projects having set up 3 solar parks in Rajasthan, the company has knocked at APTEL (Appellate Tribunal for Electricity) seeking justice making various regulatory commissions respondents. A perfect business model of projects based on REC mechanism, which the Govt had promised has been put to test as most State regulators are yet to implement the mechanism. The company has mentioned that a similar petition filed by the Indian wind power association. There is immense potential in harnessing the potential of the solar power provided all the regulatory commissions meet and enforce renewable purchase obligation. This would provide much needed boost to the new and renewable energy sector in the country making it cost effective. Source: Business Line, Dated: 07/01/14

POWER SECTOR AT A GLANCE 26 January, 2014

10

NEWS BRIEFS

Providing succour for the power starved South, the region is expected to have access to additional electricity flow of about 1,500 MW once the all India national power grid becomes fully operational.

Maharashtra State Power Generation Company Ltd (Mahagenco) has closed down the unit No 5 of the 1330MW Parali thermal power station (TPS) due to shortage of coal.

As part of its diversification programme, the NHPC inked a deal with the Kerala government to set up an 82 MW wind farm in the state's Palakkad district. Welspun Energy Limited, 100 per cent owned subsidiary of Welspun Group, is looking to invest Rs 1000 crore inPunjab to for 160 MW solar power plants. Infrastructure major L&T has secured an engineering,

Prime MinisterManmohan Singh laid the foundation stone for a 2,800 megawatt nuclear power plant near Gorakhpur village in the Fatehabad district of Haryana. The Goa government has launched round the clock call centre for power consumers in its efforts to streamline the complaint mechanism. The call centre is available at a dial of 135. Power equipment maker BHEL has renovated, modernised and uprated a 200-MW thermal power unit at Obra in UP . This is a Russian machine .

procurement and construction (EPC) order from a Saudi Arabian Oil Company - Saudi Aramco. This order has been secured for the construction of 55 km of Double Circuit Overhead Transmission line and Underground Cabling. NTPC has signed an initial agreement with the Geological Survey of India to set up a geothermal power project at Tattapani in Chhattisgarh. The government will launch its first wind energy mission this year to give a boost to the renewable source and putting it in the same league as the high-profile solar mission. The 'National Wind Energy Mission (NWEM), which would be launched around the middle of the year, would give incentives to invest, east land clearances and regulate tariffs. But unlike the flagship 'National Solar Mission' it would not involve projects for bidding. It would act as a "facilitator". The government has finally decided to start implementing the 220 -kv power transmission line that would link the arid Ladakh desert with the national grid. ThePGCIL will implement the Rs 2076.56 crore project that will be jointly funded by the centre and the state government but will eventually become property of the J&K state. CCEA has approved the project. The power ministry is expected to finalise the Cabinet note by this month-end on the proposal of hiving-off POSOCO, an arm of state-run Power Grid Corporation, into a separate entity.

Bhagyanagar India Ltd has commissioned a 5 MW solar power photovoltaic plant at Munipally in Medak district of Andhra Pradesh, taking its installed solar power generation capacity up to 10 MW.This unit has been set up with an investment of Rs 29 cr.

Civil works of Rahughat Hydropower Project, a priority project of the govt, have finally started, 3 yrs after the Nepal Electricity Authority (NEA) awarded contract to IVRCL Infrastructure of India.

Adani Power has fully commissioned the 1,320 -MW coal-fired power project in Rajasthan taking its overall electricity generation capacity to 7,920 MW.

The second unit of the Kudankulam Nuclear Power Plant (KKNPP) will start generating electricity from September. 95 % of the work for second unit of the plant has been completed and commercial operation startsfrom the unit by Sept14

Adani Power Ltd has set a record by surpassing it and attaining the highest generation of 4,644 MW. This makes it the only power station of such a size to reach a significant milestone in electricity production.

The average price of electricity sold on IEX rose to Rs 3.22 per unit in December even as volumes remained mostly flat in the same month. The total purchase bids stood at 3,800 million units while the sale bids touched 3,812 million units.

NTPC has signed an agreement with the Geological Survey of India to set up a geothermal power project in Chhattisgarh.

POWER SECTOR AT A GLANCE 26 January, 2014

11

PERFORMANCES OF POWER SECTOR

Capacity Addition (Generation and Transmission)

Re-structured APDRP in 11th & 12th Plan


Under Part-A projects worth Rs. 5233.65 crore covering all the eligible towns (1398) in the country have already been sanctioned. So far,
70 Supervisory Control and Data Acquisition (SCADA) projects worth Rs. 1574.71 crore have also been sanctioned for Eighteen States/ UTs (Maharashtra, Uttar Pradesh, Gujarat, Rajasthan, Tamil Nadu, Andhra Pradesh, Madhya Pradesh, Kerala, Bihar, Punjab, West Bengal, Assam, J&K, Chhattisgarh, Uttarakhand, Haryana, and Puducherry) Under Part-B : So far, 1229 projects worth Rs. 30381.46 crore have been approved to Twenty-five States/UTs (Andhra Pradesh, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh Maharastra, Punjab, Rajasthan, Sikkim, Tamil Nadu, Tripura, Chhattisgarh, Uttar Pradesh, West Bengal, Bihar, Assam, J&K, Uttarakhand, Manipur, Meghalaya, Jharkhand, Mizoram, Pudducherry)

Thermal capacity of 1560 MW has been added during the month of November, 2013 after commissioning of Dhariwal TPP Unit -I (300 MW), Shree Singaji TPP Unit-I (600 MW) and Barh STPS St:-II, Unit IV (660 MW).

Hydro capacity of 75 MW has been added during the month of November, 2013 after commissioning of Nimmo Bazgo, HEP, Unit-I (15 MW) in J&K by NHPC and Uri-II, HEP, Unit-II (60 MW) in J&K by NHPC

In the transmission sector 286 ckm of 220 kV AC Lines and 940 ckm of 400 kV AC Lines have been laid during the month of November, 2013.

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No Nuclear capacity has been added during the month of November, 2013.

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Generation Performance
The overall generation during the month of Nov, 2013 was 77,254.18 MUs as compared to 72,965 MUs generation achieved, a growth of 3.34% in thermal generation, 29.18% in hydro generation, 1.86% in nuclear generation and 70.78% in the imported power from Bhutan have been achieved in the month of Nov, 2013 in compare to the corresponding month of the last year. During the month 5.88% growth was registered in generation as compared to the generation performance of November, 2012. There was a shortage of 3159 million units in supply as compared to demand during November, 2013* whereas the shortage was 7274 million units during the same period last year i.e., while shortage was 9.3 per cent in November, 2012, it was only 4.1 per cent in November, 2013. Shortage of peak power demand was 2.9% in November, 2013 as compared to 9.1% in November, 2012. CONTACT US : mail@ : newsletter.psag@gmail.com

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POWER SECTOR AT A GLANCE TEAM: Power Sector at a glance


The Power Sector at a glance is an initiative by the students of Power Management, UPES, Dehradun . The main objective

CORE TEAM Yashaswi Gyanpuri Shivam Gupta Komal Agrawal ADVISOR

of publishing newsletter weekly is to provide a digital collection of all power sector news in one newsletter, this will help all power sector professional to update themselves without loosing time & money, and that can be referred anywhere, anytime & can be kept for future reference.

Vipul Kumar Rohit Pratap Singh

Vote of thanks, The Team, Power Sector at a glance would like to thank Prof. Anil Kumar (Head of Department), Prof. Mohd. Yaqoot (Asso. Professor) Power Management, University of Petroleum and Energy Studies, Dehradun, and other faculty members for their extreme support and guidance in publishing the newsletter.

Status of RGGVY in 11th & 12th Plan


As on 30 November, 2013, 1,07,782 villages have been electrified and free electricity connections have been provided to 213.88 lakh BPL households under RGGVY.
th

Prashant Dudi

POWER SECTOR AT A GLANCE 26 January, 2014