power-news-world-wide

Delhi BSES discoms reach amicable settlement with NTPC

Tue, 31 May 2016 05:19:07 +0100

The two BSES distribution companies in the national capital have reached an amicable settlement with state-run generator NTPC on regulating of power to private discoms.

In a letter written to NTPC on Wednesday, a copy of which has been sourced by IANS, the BSES discoms said: "In view of the amicable settlement arrived at BRPL (BSES Rajdhani Power Ltd) and NTP, we understand that the Regulation Notice dated May 4, 2016, which was deferred by NTPC's communication dated May 9, 2016, stands withdrawn."

"Consequent to the Regulation Notice issued by NTPC, Delhi Electricity Regulatory Commission (DERC) had convened a meeting and directed the parties to amicably resolve and decide a payment schedule enabling NTPC to withdraw Regulation Notice," it said.

"Thereafter BRPL had proposed a payment schedule liquidating outstanding dues to NTPC till September 2016. During the meeting, NTPC informed DERC about the settlement reached regarding payment schedule and BRPL confirmed the same," the leter added.

The BSES discoms had written to the regulator last week that the money due to them is more than what they owe to NTPC.

The private discoms pointed out that since the undisputed regulatory assets due to them amounted Rs.16,000 crore, it will be more than enough to clear the power purchase dues of NTPC.

"As brought out in the meeting, the total approved and undisputed regulatory assets of BSES Discoms (distribution companies) amount to over Rs.16,000 crore, as against total overdues of about Rs.12,000 crore as on March 31, 2016," the letter said.

It also said that due to lack of a cost-reflective tariff, these assets have been growing -- from Rs.2,186 crore in 2009-10 to Rs.8,156 crore in 2013-14, which is more around Rs.5,970 crore.

It sought the watchdog's intervention to: "Provide a concrete and credible amortisation plan (principal and interest) for the admitted amount of regulatory asset of approximately Rs.16,000 crore, which will help BSES Discoms in raising finances."

It also requested tariffs that are cost reflective for the current fiscal.

"The above steps would help the BSES Discoms to discharge their payment obligations in a timely manner and allay any threat of regulation of power in future."

Source- Business standard

New Delhi railway station to produce electricity from garbage

Tue, 09 Feb 2016 14:30:41 +0100

In a major green initiative, New Delhi station will become the first railway premise in the country to produce about 2000 units of electricity from the "Waste to energy" plant.

The "Waste to energy" (Bio methanation) plant will be commissioned by June this year, Divisional Railway Manager of Delhi Division Arun Arora said adding "It is a first-of-its-kind project for disposal of solid waste in environmental-friendly manner and generation of energy from the garbage.

The Bio methanation plant is being set up at New Delhi station at 15,000 sq metre area to handle 15 tonne of municipal solid waste per day and the plant will produce electricity and manure.

RITES, a railways PSU, has floated the tenders inviting bidders for the project estimated to cost about Rs 15 lakh. The bid is slated to open in February 22.

Railways will bear the capital cost of the plant. After commissioning of the plant contractor shall operate and maintain it for the next 5 years. The expected life of the plant shall be minimum 12 years.

As per the plan, waste generated at New Delhi Railway station shall be segregated into biodegradable and recyclable waste. Biodegradable waste shall get converted into electrical energy and manure.

Approximately 2,000 Units of electricity will be produced in the plant per day and it will be purchased by the Railways from the contractor at a rate it is supplied to local municipal domestic users.

Additionally the Railways will also procure manure from the contractor.

Railways generate a substantial amount of solid waste by passengers, visitors, vendors and staff. The solid waste consists of biodegradable as well as non-biodegradable materials.

At present solid waste generated at stations are transferred to nearest designated location of municipality and in this process a considerable effort and physical transportation are required. However, the delay in transfer also causes early degradation leading to unhygienic circumstances within the railway premises.

Source- TOI

BHEL commissions 5,000 MW power generation in April-December

Fri, 22 Jan 2016 12:09:45 +0100

State-run power equipment maker BHEL said that it commissioned power generation capacity of 5,010 MW during the first three quarters of the fiscal, which is highest-ever done by the company.

"BHEL has once again demonstrated its project execution prowess with the capacity addition of 5,010 MW of utility power projects in the first three quarters of the current financial year (2015-16)," the company press release said.

According to the statement, this is the highest-ever capacity addition achieved by BHEL for the corresponding period in any financial year.

In addition to this, projects aggregating to 2,270 MW have also been synchronised by BHEL during this period and are available for capacity addition, the company said.

In the same (April-December) period, BHEL has also commissioned 524 MW of industrial sets and 125 MW of overseas projects, resulting in the highest ever overall capacity addition/synchronisation of 7,929 MW, in the first nine months of a financial year (April-December 2015).

The utility sets which have been commissioned by BHEL at power stations are spread all over India. These include one unit of 660 MW at Bara and one unit of 500 MW at Anpara in Uttar Pradesh in Northern India.

One unit of 500 MW at Sagardighi has been commissioned in West Bengal in Eastern India. In the South, BHEL has commissioned one 600 MW unit at Kakatiya, a 520 MW unit at Vizag and a 500 MW unit at Tuticorin.

Besides, one 500 MW unit at Vindhyanchal in Madhya Pradesh and a 250 MW unit at Sikka in Gujarat in Central and Western India respectively were also commissioned during the first three quarters of 2015-16.

A significant contribution has also been made in the North-East with the commissioning of one unit of 250 MW at Bongaigaon.

Continuing the momentum achieved in the commissioning of hydro power plants in the last year, BHEL has already commissioned hydro sets totaling to 730 MW till date, which is almost the same as the total hydro capacity addition of 736 MW in the country during the entire financial year 2014-15.

BHEL is the market leader of power equipment in the Indian Power Sector. BHEL's formidable strength of an installed base of over 150,000 MW of power plant equipment coupled with its vast experience makes it an ideal choice of utilities in the country.

Source -ET

Environmental Standards Revised For Coal-based Power Plants

Sun, 10 Jan 2016 07:06:25 +0100

The Ministry of Environment, Forest & Climate Change has notified the revised standards for coal-based Thermal Power Plants in India, with the objective of minimizing pollution. These standards are proposed to be implemented in a phased manner.

Thermal power plants are categorized into 3 categories - (i) Installed before 31st December, 2003 (ii) Installed after 2003 up to 31st December, 2016 and (iii) Installed after 31st December, 2016.

The new standards are aimed at reducing emission of PM10(0.98 kg/MWh), sulphur dioxide (7.3 Kg/MWh) and Oxide of nitrogen (4.8 kg/MWh), which will in turn help in bringing about an improvement in the Ambient Air Quality (AAQ) in and around thermal power plants.

The technology employed for the control of the proposed limit of Sulfur Dioxide - SO2 & Nitrogen Oxide - NOx will also help in control of mercury emission (at about 70-90%) as a co-benefit. Limiting the use of water in thermal power plant will lead to water conservation (about 1.5 M3/MWh) as thermal power plant is a water-intensive industry. This will also lead to a reduction in energy requirement for drawl of water.

The standards have been made stringent for recent plants, compared to earlier ones and most stringent for those plants to be set up in future. These standards are based on the recommendation of the Central Pollution Control Board (CPCB) after consultations with stakeholders.

Source- ET

Environmental Standards Revised For Coal-based Power Plants

Tue, 29 Dec 2015 11:31:07 +0100

Thermal power plants are categorized into 3 categories - (i) Installed before 31st December, 2003 (ii) Installed after 2003 up to 31st December, 2016 and (iii) Installed after 31st December, 2016.

Maharashtra waives Rs. 572 crore electricity dues of JSW steel ‘by mistake’

Tue, 03 Nov 2015 16:30:40 +0100

A week after being caught in a controversy over waiving the Rs.572-crore electricity bill of a steel company, the Bharatiya Janata Party (BJP)-led State government on Wednesday claimed that the decision was taken "by mistake". The government had to reverse its decision after it was revealed that the due procedure was not followed before taking the decision.

The Opposition had alleged that State Power Minister and BJP leader Chandrashekhar Bawankule was involved in favouring JSW ISPAT Steel Limited Company in Raigad district.

"It was by mistake that it was sanctioned and following which orders were issued on August 26, 2015," said Mr. Bawankule.

Asked about the loss to the exchequer as a result of this "mistake" by government officials, the Minister said that the order was withdrawn as soon as it came to the authority's notice and the State treasury had not suffered any losses.

The government will initiate a departmental inquiry against officers, including the Principle Secretary (Power), involved in the decision.

The Hindu had reported on October 22, 2015, how the government was caught in an embarrassing situation after it had to reverse its decision to waive the electricity bill of the steel giant.

On August 26, 2015, the Power Ministry issued an order waiving the power charges of JSW Ispat Steel Limited from 2012 to 2019, without discussing the matter in the Cabinet.

The company has been a beneficiary of it since 1998 till 2012.

It had then asked the government to extend the concession period. The matter was pending for three years.

The Finance department, in its letter on June 11, 2014, had said that such an extension could not be given as the State had changed its industrial policy in 2013.

"Since JSW will not be eligible under the 2013 policy, the energy department's proposal cannot be accepted," noted the then Additional Chief Secretary (Finance).

sc:-kesoba

Electricity Amendment Bill 2014: Overlooking rural energy access

Tue, 30 Jun 2015 17:45:29 +0100

The Electricity Amendment Bill, 2014, claims several laudatory objectives such as the promotion of competition through segregation of carriage and content, increased renewable energy development, and enhancing open access to power producers and consumers for unhindered access to transmission and distribution networks to transmit power to any part of the country in a non-discriminatory manner. But issues pertaining to energy access for 75 million rural households or around 300 million people haven't gotten the attention they deserve. On the proposed amendments to the Electricity Act, 2003, we examine the overlooked issue of rural energy access and suggest potential solutions that may be incorporated in the Act.

With growth rates of 8-10% in the first decade of the century, the overall energy pie has kept getting bigger, but the share of non-electrified households has remained stagnant. The current ruling party in its political manifesto highlighted "24×7 power supply to all households by 2017" as a primary objective. However, this intention is not reflected in the proposed amendments.

The state of affairs in rural electrification is making it increasingly clear that while grid extension is required and is taking place, a large number of households are not getting connected to the grid. Further, even where grid extension and household electrification has taken place, the utilities are not able to supply sufficient amounts of power. To make matters worse, power is supplied when it is available and not when it is required. Problems exist on both fronts—household electrification as well as availability of electricity. This calls for some innovative thinking.

Since most rural communities consume small quantities of electricity, extending grids may not be a viable option as costs are spread over small consumption, resulting in very high per-unit costs. In 2008, the Forum of Regulators estimated that the cost of supplying electricity in remote rural communities in Uttar Pradesh and Bihar could be in excess of R20 per unit. Under such circumstances, decentralised energy production and distribution may provide opportunities for rural development and encourage local institutions to manage their own energy needs.

Decentralised energy resources using locally-available renewable energy resources would solve the problem of supply shortage. This is critical considering the large spikes in energy demand forecast in the coming years. The attraction of renewable energy technologies lies in their abundance and local availability. Interventions in this field have the potential to bring about drastic changes not only for access to basic energy services but also to the economic prosperity of the rural landscape.

Section 43 of the Electricity Act, 2003, imposes universal service obligations on distribution utilities. In compliance with Sections 4 and 5 of the Act, the central government notified the Rural Electrification Policy in 2006. Though the objective of the policy is to provide access to all households, it fails to identify the institutional set-up for rural electrification in cases of discrepancy, stakeholder disagreement, etc. Conferring power rather loosely on an 'Appropriate Commission', the policy fails to clearly define the authoritative institutional set-up that will play this role of 'Appropriate Commission'.

Further, by incorporating an apparently innocuous proviso to section 14 that exempts an entity generating and distributing electricity in rural areas from licensing requirements, the Act is not providing any benefit to disadvantaged rural populations but actually letting distribution companies off the hook in terms of the responsibility under the universal service obligation of state utilities to supply electricity to consumers within its area in a non-discriminatory and time-bound manner. This exemption doesn't create a strong policy and regulatory environment for mini-grid operators, resulting in the absence of a commercial model for rural electrification. It is important that the rural energy system operator be provided with a stable framework that would enable it to access the markets for commercial finance.

The need of the hour then is to look beyond current simplistic policies and focus on formulating a rural energy access model providing a one-stop solution—supplying low-cost power to consumers, meeting energy demands, facilitating positive returns to the service provider, and fulfilling universal service obligations. In such a model, the role of the distribution company is important. Given the success of the time-tested concept of power purchase agreements and feed-in tariffs, the Forum of Regulators adopted a business model in 2010-11, which facilitated the development of local mini-grids using locally-available renewable energy-based generation, and stresses on parity of grid tariff to ensure its sustainable operation over a lifetime.

Under this model, the project developer would operate as a generator as well as distributor of electricity. The project developer would be compensated by the distribution licensee for units generated at Feed-In Tariffs (FIT)—preferential tariff for renewable energy based on its cost of generation—determined by the State Electricity Regulatory Commission. The same project developer would sell electricity to consumers at consumer tariffs determined by the state regulator. This would ensure parity with licensee tariff while the project developer is compensated for costs using FIT. Assured FIT for the lifetime of a plant will provide improved commercial sustainability to project developers, helping to attract the needed private sector investment in supporting community-level off-grid renewable energy-based power plants to enhance electricity access in rural areas. The proposed model brings about a paradigm shift from the traditional rural electrification models. It is important that this model be incorporated in the proposed amendments.

One of the proposed amendments in the Electricity Amendment Bill, 2014, is to define a Renewable Energy Service Company (RESCO); however, it has not been subsequently mentioned anywhere in the Bill. A waiver of a licence to generate and supply renewable energy could have facilitated such RESCOs operating and selling distributed renewable power through small-scale plants such as rooftop systems.

Source - Indian Express

Coal block auction: Centre likely to cap costs of power plants

Sun, 15 Mar 2015 08:59:22 +0100

The government plans to cap costs of power plants that can be passed on to electricity consumers, to prevent rise in tariffs as all power firms have agreed to forego mining costs for winning the blocks.

The move will hit power firms as they will have to absorb the mining costs throughout the life of the block and will not be able to pass on the high coal costs under different heads.

Companies said the move was unfair and the government should have indicated such plans before coal block auctions. The government had earlier said it will revise existing power contracts between generating and distribution companies to lower electricity tariffs from plants that will run on coal from auctioned captive blocks.

It now plans capping the fixed costs of the plants to prevent tariff increase in new contracts as most companies that have won the mines with aggressive price bids do not have power purchase agreements (PPAs).
Through the move, the government is ensuring that companies do not pass on the burden of high coal cost in new PPAs. "We are pretty clear that the companies will not be able to smuggle the costs to tariffs," a senior government official said requesting anonymity. The power ministry may issue advisories to the state power distribution companies to check the tariff pass through when they call for the bids. As per the norms, the companies which won the blocks will have to sign PPAs with distribution utilities to be able to mine the coal.

The government has already made it clear that the existing PPAs will be re-opened to bring down the tariff, the official said. The power ministry is soon expected to issue advisories to the state and central electricity regulatory commissions to revise the existing PPAs. The government is also amending the National Tariff Policy to enable the electricity regulatory commissions to open the legally binding PPAs to revise the fuel cost.

Section 63 of the Electricity Act, which relates to tariff-based competitive bidding, limits the role of electricity regulators to adopting the tariff and notvetting. "The government is exploring ways to pass on benefits of low coal cost to consumers. The government can revise the tariffs downwards under the change of law provision in the PPAs," another government official said.

SC:- http://www.kseboa.org/news/coal-block-auction-centre-likely-to-cap-costs-of-power-plants-11033708.html

Uttarakhand dams: Six new projects await apex court review

Tue, 17 Feb 2015 06:09:41 +0100

In August 2013, the Supreme Court (SC) asked the government to find out if existing and under-construction hydroelectric projects had contributed to the June 2013 disaster in Uttarakhand, where thousands had perished. It banned the Centre and the state government from clearing any new projects till this assessment was done.

In contrast, on Tuesday, in the same case, the apex court will, instead be reviewing how six proposed projects can be built on the Alaknanda and Bhagirathi tributaries of the Ganga in Uttarakhand.

How did the case, which was about the impact of existing and under-construction hydro projects on the upper Ganga basin in the aftermath of the Uttarakhand tragedy and the future impacts of proposed projects, come to this turn?

In August 2013, the SC ordered that no comprehensive study had been carried out to assess the cumulative impact of all the dams in Uttarakhand in the Ganga basin. It noted the existing studies looked at some bits of the big picture. "Deeply concerned", it ordered the "environment ministry as well as the state of Uttarakhand not to grant any further environmental clearance or forest clearance for any hydroelectric power project in the state of Uttarakhand, until further orders."

Additionally, it tasked the Union environment ministry to constitute an experts body to assess if and to what extent "hydroelectric power projects existing and under-construction have contributed to the environmental degradation" and to "the present tragedy that occurred at Uttarakhand in the month of June 2013."

It asked the government to examine a Wildlife Institute of India report, which had said 24 proposed projects should be banned because these would significantly impact the biodiversity of the Alaknanda and Bhagirathi basins.

The government formed a 13-member panel headed by environmentalist Ravi Chopra, with government and non-government experts on board. Eleven members, including some government officials, took a strong stand against the 24 projects. But two government members, one from the Central Water Commission and another from the Central Electricity Authority, differed.

In May 2014, the Supreme Court recorded that the environment ministry wanted to set up another committee to review existing reports — four by now. The court asked the ministry to justify their move and ordered the stay on the 24 proposed projects to continue.

But in a August 2014 hearing, the court's focus shifted. It asked the government to present a report on each specific project, "so that the report can be appreciated from proper perspective".

In October 2013, the environment ministry had done a u-turn. It said it had never wanted to set up a fifth committee and was reviewing the matter on its own with the help of a consortium of Indian Institutes of Technology, engaged to prepare the Ganga River Basin Environment Management Plan. It summed up the recommendations of this consortium to suggest the 24 banned projects could be revised to reduce their impact on biodiversity and river continuity.

Three interveners in the case with projects in the upper Ganga basin — NTPC, NHDC and Tehri Hydro Development Corporation — said the Union government should provide details of specific changes in their projects. They said they were willing to meet the government across the table on these changes.

The court agreed. It also asked the central government to file "a detailed report in respect of other projects which are suffering due to order of stay passed by this court".

The matter now focused on the suffering due to banned projects; the focus was shifted away from the Uttarakhand tragedy.

Before the next hearing, two private project developers, whose three projects were among the 24 that were held up, intervened too. One was GMR, with its 300-Mw Alaknanda Project, and the other was Super Hydro with two small power projects. The court asked the government to review the three state units' projects and these three private ones as well.

December 2014 came with another twist by the government. It now cited the plethora of committees that had warned against the damage caused by existing and under-construction dams and potential damage that could be caused by future projects. It said it wanted to provide the existing Ravi Chopra committee, along with five more experts, another 12 months for a comprehensive and critical examination of all the projects.

The project proponents argued the environment ministry violated court orders, which had asked for project-specific reports. But the Union government said the projects had to be assessed cumulatively. The court ordered, "Be that as it may, we would like to hear learned counsel for the parties further."

At the next hearing in December, the apex court ordered, "It is directed that the cases of six projects of NTPC, NHPC, THDC, GMR and two projects of Super Hydro shall be considered in a cluster." The court had asked for a cluster review of projects falling on the tributaries. The court said, "The ministry of environment and forests shall see the date on which the licence have been granted, regard being had to the law prevalent at that time. If there be any deficiencies, that shall be pointed out to them and their responses called for."

The SC will next hear the case on Tuesday. The order for cumulative impacts of hydropower projects in the wake of the Uttarakhand tragedy is history, for now.

Source- Business standard

SC:- http://www.kseboa.org/news/uttarakhand-dams-six-new-projects-await-apex-court-review-17023676.html

Kudankulam power cheaper than U.S. proposals: Russia

Wed, 04 Feb 2015 06:11:09 +0100

A week after U.S. President Barack Obama's visit cleared major hurdles in the Indo-U.S. nuclear deal, Russian officials say the power generated under the agreements will be much more expensive than the negotiated deals with Russia for the "Kudankulam series."

An official statement from the Russian Embassy said the rates for electricity from units 1&2 of the Kudankulam Nuclear Power Plant, being constructed with Russian technical assistance (in Tamil Nadu), were almost half the price that power from proposed American designs would cost. According to unconfirmed reports, U.S. company Westinghouse has proposed Rs.6 per kWh in initial discussions with India, while French company Areva had spoken of Rs.6.50 per kWh, both of which would be far higher than the estimated price of power at Kudankulam 1&2 at Rs.3.50 per kWh. Added to this is the projected raised costing for insurance after India agreed to set up a $240-million (Rs. 1,500 crore) "insurance pool" to be funded equally by state-owned insurance companies and the government.

Significantly, the statement was issued on a day External Affairs Minister Sushma Swaraj met Russian Foreign Minister Sergei Lavrov at the RIC trilateral in Beijing. Indian government officials called the Russian statements premature. The costs in both the cases of U.S. and France "are still to be worked out," they told The Hindu.

However, the costing of U.S. nuclear companies is becoming the next big issue, even as India and the U.S. overcame the major hurdles of supplier's liability and administrative arrangements. In a letter to Prime Minister Narendra Modi this week, CPI leader D. Raja pointed out that the cost of U.S. reactors and the insurance pool could result in the rate exceeding Rs.15 per kWh. "This is much higher than the tariff from competing sources," wrote Mr. Raja. "I am concerned that the government has not adequately examined the cost of electricity from the proposed American reactors."

The Russian statement quoting nuclear officials indicates that Moscow is unhappy, and feels competitive about the spotlight on the U.S.-India deal, even as Russian President Vladimir Putin had in December signed a strategic agreement for constructing 12 new nuclear power units.

The Indo-U.S. deal announced by Mr. Obama and Prime Minister Narendra Modi was welcomed last week by Westinghouse CEO Daniel Roderick, who called it a "breakthrough." The deal hinges on a "memorandum" to be submitted by the Indian government to the U.S. that will outline the Indian understanding of the clauses that the U.S. nuclear suppliers find problematic.

Sources told The Hindu that the memorandum would be shared with U.S. officials "this week."

Russian nuclear officials, however, made unfavourable comparisons between their negotiations for nuclear reactors that began in 1988 and the proposed American deals.

"The Russian side had offered the Indian government credit for the construction of the new Kudankulam 3&4 plants with similar terms as for the construction of Kudankulam 1&2, regardless of the fact that 30 years had passed since the agreement on the first unit," they said. They also pointed out that the Kudankulam reactor now operational "meets the latest safety requirements." It was connected to the national grid in 2013 and the next one was due to be commissioned shortly.

Source- The Hindu