Electricals Today May issue

ETELECTRICALS TODAYMORE POWER TO THE INDUSTRY

HE KNOWS WHICH WAY THEWINDBLOWSWhen Ramesh Kymal, chairman, Gamesa India and IWTMA, says wind energy will scale new heights, you can take his word for it An ITP Publishing India Publication

SMARTENING UP TO SMART GRIDS

T&D

HYDROPROJECTS IN

TROUBLED WATERS

Total pages 48Volume 1 | Issue 4 | May 2013 | `50

DS_ADVT.indd 2 4/30/2013 2:19:01 PM

3APRIL 2013 | Electricals Today

CONTENTS

35

20

28

10 Column Sanjeev Aggarwal, MD of Amplus Infrastructure, on

competitive bidding in wind energy

12 Renewable Energy Ramesh Kymal, chairman IWTMA, speaks about policy paralysis and the road ahead for wind energy

PEOPLE

20 T&D Smart grid implementation gearing momentum

with the rolling out of pilot projects

25 Discoms The recent order by CERC allowing a compensatory

tariff to the generators to increase discoms outflow

28 Generation Delay in hydro electricity projects resulting in the

total capacity addition slippages

33 Distribution LED lighting changing the landscapes of street lighting in the country

35 International corner Middle East attracts close to $100 billion investments

in energy related projects

REPORTS

06 News, people & events Industry round-up, including news and events

37 Market column Overview of the performance of power companies

40 Market data A look at key industry trends and statistics

42 Ten things about Pocesses involved in cleaning coal

REGULARS

16By adding 15000 MW wind energy saves coal imports equivalent to Rs 50,000 crore." R

ames

h Ky

mal

03_ET_May13_Contents.indd 3 02-05-2013 12:33:42

COMMENT

Electricals Today | MAY 2013 4

ITP Publishing India Pvt Ltd

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Volume 1 | Issue 3 | May 2013

ETELECTRICALS TODAYMORE POWER TO THE INDUSTRY

Consistently, the country’s capacity addition is taking a hit, be it generation, transmission or distribution. On one hand, the generators are crying hoarse about the unforeseen circumstances leading to the negative performance but, on the other, the transmission segment is negotiating roadblocks owing to various reasons. In the recent past, it registered very slow progress in addition of evacuation facilities. This is creating problems for the entire sector. To overcome the stumbling blocks, the possible solutions widely touted by the stake-holders are allowing more private players into the transmission segment.

However, the government is upbeat about rolling out the smart grid project at the national level. The challenges are large for India in smart grids but there are set of positives as well. In many part of the country, the laying of the transmission lines and distribution network are happening for the first time. So the integration of a new technology will be easier. And, once implemented, smart grid application will transform the sector in a major way.

Though the country’s per capita consumption is in the sub 1000 kWh levels, the capacity addition in generation, transmission and integration of smart grids needs to develop simultaneously to achieve the desired goal set by the central government. Even though the ministry’s road map lacks clarity, the pilot projects have kick-started in different parts of the country.

The analysis of these pilot projects are expected to convince the half minds which are dilly-dallying at the decision-making levels. So, it is just a matter of time, before this is taken to the next level.

The last financial year was bad for the power sector. But good news is that the new financial year has brought with it a new spark of life with the CERC order in the Adani Power and Tata Power cases. The Generation Based Incentive (GBI) which was announced for the wind sector is also getting into the fine print. Also, the generation segment is expected to bounce back.

For sure, there will be slippage in capacity addition in the current Five Year Plan. But, as clichéd as it may sound, what is needed most now is political will to see results.

Renewed interest

Renjini Liza Varghese, [email protected]

04_ET_May13_Ed Letter.indd 4 02-05-2013 12:17:15

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ETELECTRICALS TODAY

MORE POWER TO THE INDUSTRY

ARE ENERGY-EFFICIENT

PRODUCTS REALLY

EFFICIENT?

‘SMART GRID IS NO

LONGER A CONCEPT,

IT’S A NECESSITY’

Even though Jyotiraditya Scindia

describes his current charge as

‘daunting’, the young power

minister is ready to take on the

challenges. But can he deliver?

ARUN MAIRA,

MEMBER, PLANNING

COMMISSION,

ON WHAT AILS

THE INDUSTRY

VIEWPOINT

07-01-2013 15:16:04


NEWS & PEOPLE

NORMS FOR DISCOMS' DEBT RECAST FINALISED

INDIAN POWER SECTOR GAINING GROUND IN SA

JNNSM PHASE 2 DRAFT GUIDELINES

The central government said that the bonds to be issued by states, backed by it under the debt recast plan for power distribution utilities, will attract about 0.5 per cent premium over the issue

price, yet to be determined. The deadline of the programmed has now been extended to July 31 for states to participate

in the power ministry's ambitious debt recast plan. The accumulated losses of the state power distribution

companies (discoms) are estimated to be about Rs1.9 lakh crore as on March 31, 2011. "Yes,

we have decided to extend the date for FRP (Financial Restructuring Package) from

March 31 to July 31," Power secretary P Uma Shankar said. He added that the power ministry,

in consultation with other ministries, has finalised the guidelines for calculating the rate of interest on bonds to be

issued by states and they will be guaranteed by the centre.

The Indian power sector is gaining ground in South Africa, where it's hoping to secure at least five per cent of global exports currently domi-nated by European exporters by 2020, said Sanjeev Sardana.

Sardana, chairman of Indian Electrical and Electronics Manufacturers' Association, led a delegation to the two-day 15th Power & Electricity World Africa 2013 expo in Johannesburg. Indian com-panies were out in force at as they try to boost the annual $2.5 billion exports to the African continent.

MNRE has established the Solar Energy Corporation of India (SECI) for handling the power procurement from the second batch of the JNNSM. SECI’s role will be limited in providing the subsidy known as Viability Gap Funding which is the part payment made to the project developer. In this scenario, the developer opting for the lowest amount of funding to bridge the gap would be chosen first. This is a new form of reverse bidding wherein the developer would no longer quote the electricity tariff but the quantum of money required to make the project “viable”. MNRE has released the draft guidelines for the first phase of second batch under JNNSM for setting up of 750 MW of solar capacity. The minimum capacity is 10 MW while the maximum capacity is capped at 50 MW.

8

Solar projects in JNNSM second phase

750 MW

06_08_ET_May13_News.indd 6 30-04-2013 15:49:37

7MAY 2013 | Electricals Today

NEWS & PEOPLE>>> COAL INDIA SIGNS FUEL SUPPLY WITH 60 POWER PLANTS

State-run Coal India (CIL) has so far entered into fuel supply pacts with 60 power plants even as the deadline set by the Prime Minister's Office for sign-ing of the FSAs expired in January. "So far only 60 power plants have entered into fuel supply pacts with CIL," a source close to the development said. India's largest power producer NTPC has refused to sign FSA with CIL as it feels the state-run firm was supply-ing inferior quality coal. NTPC feels the world's largest coal producer was supplying "rocks and boulders" just to meet its supply commitment. NTPC chairman and managing director Arup Roy Choudhury had said it has agreed on almost all terms and conditions of the FSAs and is ready to sign the agreements provided CIL promises to give a minimum calorific value coal.

8

If there is no water in the dam, how can we release it? Should we urinate into it? If there is no water to drink, even urination is not possible.”

We are finalising the policy of price-

pooling of coal which has already received Cabinet's in-principle approval.” Jyotiraditya Scindia, union power minister

Ajit Pawar, deputy chief minister, Maharashtra, on dip in hydro electric generation(later he apologised for the remark)

They are giving us poor quality coal ...

We don't want it."Arup Roy Choudhury,

NTPC chairman and managing director, on CIL supplying low quality coal

06_08_ET_May13_News.indd 7 30-04-2013 15:49:42


NEWS

RENEWABLE ENERGY WORLD INDIA 2013Venue: Bombay Exhibition Centre, Goregaon, MumbaiDate: May 6-8, 2013Renewable Energy World India 2013 shifts from New Delhi to India’s finan-cial hub, Mumbai. With this move, the high-level conference and exhibi-tion aims to expand its coverage from the northern part of India, which has been its main focus, to the west and south. Under the theme, Indian Power – Time to Deliver, the event brings together decision-makers and professionals from leading companies.

SOLARCON INDIA 2013Venue: KTPO Exhibition Complex, BengaluruDate: August 1-3, 2013The 5th edition of SOLARCON India 2013 will provide a framework to discuss the enormous role for solar in India. From power plants to rooftops and off-grid applications this will be the place to reaf-firm the need for investments and commitment in both R&D and manufacturing to address the next demand cycle.

COAL TRADING SUMMIT: INDIA 2013Venue: Crowne Plaza, Okhla, New DelhiDate: May 24, 2013With increased emphasis on developing strong coal trading and infra-structure platforms on national and global level, Indian organizations are rushing to secure their growing energy needs. This conference aims to bring together delegates from across the globe to deliberate on the emerging coal policy landscape, domestic coal scenario, global trends and demand-supply logistics.

ELECTRI EXPOVenue: HITEX Exhibition Centre, HyderabadDate: October 3– 5, 2013The first ever exposition in Hyderabad dedicated to low volt-age electricity devices. Organised by Hitex Exhibition Centre and supported by Andhra Industry department, he event will bring under one roof, energy efficient, environment friendly and sustain-able devices.

EVENTS

This time it is going to be Chennai city hosting the largest lighting fair Lii 2013, Light India International. The city has been chosen for the sec-ond time to host the event, as the market in the region is growing faster and also seeing the growth potential in the southern region.

Lii2013 will have a combination of domestic and international partici-pants. and it is expected to host over 250 manufacturers including 100 from countries like China, Taiwan, Korea, Italy, Germany and USA.

Organised by Indian Society of Lighting Engineers, the show will be held between13 and 16 September 2013 in Chennai Trade Centre. It will be a platform for participants to showcase developments taking place in the lighting industry. And this will provide excellent marketing opportu-

nities for all the products and services under the lighting industry seg-ment.

The exhibition will showcase a wide range of products over 16,500 sq.m. exhibition area, covering residential, commercial and retail light-ing; industrial lighting; street lighting; security lighting; environmental/landscape lighting; city beautification lighting; architectural lighting; railway / metro lighting; airport and runway lighting; refineries / mines lighting; LED lighting; intelligent lighting; lighting with non-conven-tional energy; specialty lighting; lighting accessories and controls; power saving solutions; and testing and measuring instruments.

For more information, log on to www.lii.co.in

Lii 2013 to attract international participation

06_08_ET_May13_News.indd 8 30-04-2013 15:49:43

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COLUMN

Competition is Hallmark for any capitalist economySanjeev AggarwalManaging director, Amplus Infrastructure

COMPETITIVE BIDDING FOR WIND

It �� t�� t �� t�� t �� p�t�t��. T�� d�� t��t ��g��, �p��t�� d fi�� fi�� ug�t �� d t�� u�t��t� ��u�� fit. T��t �� t� �� t�� d�� t�� t�� u��g ��d p�� t��ug� ��

p�t�t�v� ��dd��g �� t��t�d. R�j��t�� gu��t�� d��g t��t t��ug�t p��

t��ug� �t�� gu��t�� d t�� d�� M��t�� N�� d R�� E��g� (MNRE) ��v� �� d��t��g �� t�� pt. B�� u��g �� p�t�t�� fi��d, �� d t� �� u� �� t�� g��u�d��v�� tu�t�� d �v��u�t� ��t�� t�� p�t�t�� g��g t� �� t�� d �u�t�� g��t� �� t�� t��.

F�� p��p�� p�t�t��, �� d ��t�� t�� p��p�� p�t�t��, �� d ��t�� t�� g t�� tu�t��:

1. E�t�� u�t�p�� upp�� v� �qu��/�� t� t�� g��d��t� t� d��v�� t�� utput, �� t�� t�� d p��j��t�, �� d ��g�t� �� pp��p��t� (��d�) ��d, �v��t� �� d d�t� �� du��t�� t��t p��t��u�� t��, �v��u�t��

�pp��v��, ��v��t�� p��t�, ��g�t� �� d ��u��t� �u�� g �t�� t��g�.

2. A ��t� ��t� �� t�� v� ��t�� d� ��ptu��d ��, d�v��p�d �� t�� p��

�u�� t��t t�� IPP d�v��p�� d t�� t

t�� g��g �� t�� t��, fi��,

��d ��g�� fi��.

P��p�� t� t�� t�� t�� dd��g �� t� ��t� t��

��tu�t�� t� ��p�t�t�v� ��dd��g gu�d��

M��t�� P�� (�� d C�� – 1 �.�., PPA ��d� ��d C�� 2 �.�., P��j��t ��d� �� U�t�� M�g� P�� P��j��t�).

Ou� ��d ��gu��t�� t� �� p��g C�� 1 ��d�. I� t�� xp�� t�� p��j��t d�v��p�� t��g t� g� ��, �� t� �� t��g � v�� d��fi�u�t ��tu�t�� t�� d�v��p��, �� t�� xp��t�d t� �p��d �u��t��t�� u�t �� t�� d ��p�t�� g��g t�� p��j��t t� � ��v��, �� t �� d��v��d ��t�� du�� d ��t� �� u�t �� t��t�. M�� t�� p�� d�v��p�� v� �u�� t�� p�t�� t� d�v��p��g t�� p��j��t�, �u��g ��d, g�tt��g �pp��v��, t��g up �u�� upp�� d �� t��g �� d��t��ut�� p�� g t�� d�.

C��p�t�t�� d�� t �� u�� t�� p��du�� v� � �� t��g t�� u��. O�� gu� t��t t�� E��t��t� A�t p��v�d�� t�� u�� ut ��

Added in five years11,000 MW

In renewable energy, there are good site and not-so-good sites.

Every site can generate energy at a certain price. With the competitive bidding, only the best sites will be able to compete."

10_11_ET_May13_Sanjeev AgarwalJR.indd 10 30-04-2013 15:03:36


WIND ENERGY

t�� g��u�d p��t�� v��u� �t�t�� u�t��t� �p�� p��v��.

I� �� g�, t�� g��d ��t�� d ��t�� g��d ��t��. Ev�� t� �� g��t� ��g� �t � ��t�� p��. W�t� t��

p�t�t�v� ��dd��g, �� t�� t �� t�� t�� t� ��p�t� ��d �� d�v��p�� t ��d ��p�t�� t �� t t�� ‘��t’ ��t�.

W�t� t�� p��v��t �� d p�� t��g�, �v��g �u� ��g�t� ��d ��g�� d��t�� , t�� t�� t��t �� t �� v�� fiv� �� t�� d�v��p��t. D�v��p�� p��d �� t�� t�� u�� t�� t��t� �� F��d�� T��. O�v��u��, �� d� ��t ��t �� u��pt�� PLF ��t� �ut �� F��d�� T�� t��, t�� t� t�� d�v��p��.

C��p�t�t�v� ��dd��g �� d�v��p��t �� d ��PLF ��t�� d I�d��’� ��d p�� p�t��t�� d��t�� du�� t�� 100,000 MW p�t��t�� t��t �� t�� t�� ut. W� �� d�� d t� �� u�� p��t��t ��t �� u� ��g� ��t.

C�p��t� �dd�t�� d�fi��d t�� d �t �� t. I�d�� t��t� ��t�� u��t�� p��d��t

�� t�� , g��, ��d ��d��p�� p��j��t� �� fi�d��g �t d��fi��u�t t� �� t�� g�t �� t�� d��. T� ��t I�d��’� �� p��t��, ��p�d �dd�t�� p�� p��t� �� qu��d �� t��t t�� g� d�fi��t �� dg�d. T�� t t� �� v��t� �� p�� t� ��du�t�� t��t �u� 14 ��u�� d�� g��t�� t� �t R�15 p�� u��t.

At � �� v��, �t �� xt�� d��fi�u�t �� I�d�� t� ��t �t� R�� E��g� ��p��t�� v��g�d �� t�� N�t�� A�t�� P�� C��t� C��g�. I�d�� t �� t��u� t��g�t �� 15 p�� t �� t�� R�� pu�� g�t�� (RPO) �� t�� 2020. I� �dd�t��, I�d�� fi�d �t�� d �� t�d �� t�� g�� , �� u�t�� C�� g ��t �� t�� t�� t.

T�� F��d��t�� d ��d fix�d P�� Pu�� Ag��t (PPA) �� u��u� ��d�� t� ��t 11000 MW

��p��t� �dd�d du��g ju�t ��t fiv� ��. F��d��t�� v� g�t � ��t�� p��d ��t�d ��t� t�� d t�� p��j��t d�v��p�� v� � ��t��t� �� d�v��p��g � ��p��x p��j��t. T�� t �� g�v�� fi��p t� t�� d��fi�u�t ��t�� g��g �� t�� qu��d ��v��t��t�. W�� up��t ��t��g t��t �� u�d ��pt�� t� ��v��t�� t�u�tu�� t�� I�d�� t��t �� t�� u��d �� g�� v��t��?

N��u�� fi��g �� t�� d ��t�� t��t�d �� t�� d �� dd��g �t�u�tu�� t��t �� t�� gg��v� �� fi�d �t �xt�� d��fi�u�t t� �tt��t ��u�� fi��g.

Exp�� t�� u�t�� v� �� x�d. I� ��u�t�� t�� U��t�d K��gd�� d C��, g�v��t� ��v� ��v�d �� p�t�t�v� ��dd��g t� RPO��d ��t�� d F��d��T�� p��t�v��. T�� p��g�� S�ut� A�� d B��z��, t��t �� t�� d��d ��tt�� t�� t�� UK ��d C��, �� t�� t�� u�g t� d�� u�� ut �t� �u��.

I� B��z��, t�� v� �� v�� gg��v� ��d u��t�� dd��g. N�t v�� d��t �� t �� v� �� u� UMPP� – �gg��v� ��dd��g; ��gu��t�� t�pp��g �� d t�� g�� dd��g p��t�� v��t�d. W��t I �� t��t �� u�d�'t d� ��t��g �� t�� d��g �t.

10_11_ET_May13_Sanjeev AgarwalJR.indd 11 30-04-2013 15:03:38

Electricals Today | may 2013 12

rEnEwablE EnErgy


12_19_ET_May13_Cover story.indd 12 03-05-2013 10:14:47


RENEWABLE ENERGY

Lack of clarity on the Generation Based Incentive may mar the sector’s growth. What is required is political will to take the sector to the next level BY RENJINI LIZA VARGHESE

IT'S ALL INTHE WIND



RENEWABLE ENERGY

While the conventional power sector is severely hit with policy and regulatory issues, renewable energy seems to be on track, especially wind energy. The reintroduction of Generation Based

Incentive (GBI) is expected to inject a renewed momentum in the sector. However, sector experts point out that the lack of clarity on the disbursement of GBI is further delaying wind energy projects. Any further delay will prove costly to India, considering the power scarcity in the country.

In 2012-13, the sector had recorded a 50 percent dip in capacity addition. And the validity of GBI, which was in force for the past couple of years came to an end on March 31, 2012. As the 11th Five Year Plan period also ended on the same day, which brought the ongoing Accelerated Depreciation (AD) to an end as well.

After that, the sector started witnessing a major slide. From April 2012 to March 2013, wind energy was only able to add half of the capacity it added in the previous year. In 2011 - 2012 the country witnessed an addition of 3200 MW in a year, a record capacity. In comparison, the last year (April 2012-March 2013) was a disap-pointment for the sector as only 1704 MW was added.

“The was a decline of almost 50 per cent in the capacity addition. However, the sector will bounce back this year and the momentum is likely to continue in the coming years as well,” said Dileep Nigam, director, Wind Energy, Ministry of New and Renew-able Energy. He added that, the cabinet committee is expected to clear the GBI in another four to six weeks time. “The ministry is pushing for AD as well. As of now, GBI seems to be retrospective from 2012 April,” he pointed out. However, he said, till there is clar-

Despite a slow 2012, India still maintains its position as the fifth largest wind energy market globally and will continue to hold the forth in the coming years

BY SHRUTI SHUKLA, SENIOR POLICY ADVISOR GWEC Last year was a slow one compared to 2011 due to a lapse in policy in April 2012. However, India saw new wind energy installations reach 2,336 MW by the end of 2012, for a cumulative total of 18,421 MW. This pace of growth kept the Indian wind power market firmly in the top five rankings, globally. As of February 2013, total wind installations had risen to 18,634 MW bringing total renewable energy installations in the country to 27,294 (MNRE).

Wind power accounted for about 69 per cent of total renewable

Blowing strongenergy capacity or about 8 per cent of the total installed capacity in India. With the acute need for electrification and rising power consumption in the country, wind energy will provide an increasingly significant share of India’s electricity supply.

The 2012 global wind power market grew by more than 10 per cent com-pared to 2011, and the nearly 45 GW of new wind power brought on line represents investments of about € 60 billion (BNEF, 2013). The new global total at the end of 2012 was 282.6 GW, representing cumulative market growth of more than 19 per cent, an excellent industry growth rate given the economic climate, even though it is lower than the annual average growth rate over the last 10 years of about 22 per cent.

At the end of 2011, the expectations for wind power market growth were mixed as continued economic slowdown in Europe and the political uncer-tainty in the US made it difficult to make projections for 2012. Nevertheless, 2012 turned out to be a record year for wind power installations in the traditional markets of North America and Europe.



RENEWABLE ENERGY

GWEC Market Forecast 2013-2017

600

500

400

300

200

100

0

Annual installed capacity growth rate [%]

Cumulative [GW]

[GW]

18.7%

10.8%14.1% 14.4%

14.0% 12.6%

13.9% 13.4%

10.2%

12.89%

8.90%

-11.6%

282.6

18.70

44.8

10.80 -11.60 14.40 12.60 10.20 8.90

Source GWEC

39.6 45.3 56.2 61.251

14.10 14.00 13.90 13.40 12.89

322.4 367.7 418.7 474.9 536.13

25

20

15

10

5

0

-5

10

-15

[ ]

Cumulative capacity growth rate [%]

Annual installed capacity [GW]

2012 2013 2014 2015 2016 2017

ity, we cannot be 100 per cent sure. In juxtaposition, the global wind energy scene was much more

encouraging. Record installations in the United States and Europe added to global installations of 44.8 GW of new wind power in 2012, up by 10 per cent from 2011. Global installed capacity has now reached 282.5 GW, a cumulative increase of almost 19 per cent. According to the Global Wind Energy Council, “The US regained the number one spot for global markets in 2012 for the first time since 2009, eking out China by 164 MW. However, the late extension of the US Production Tax Credit on January 1, 2013 means that the US market will drop precipitously in 2013, although with substantial recovery expected in 2014." According to the council's estimates, Europe’s record installations in 2012 are unlikely to be repeated in 2014, as a result of policy uncertainty and back-tracking. "The forecast is for a modest downturn in 2013, however, followed by a recovery in 2014 and beyond; with global capacity growing at an average rate of 13.7 per cent out to 2017, and global capacity nearly doubling to 536 GW,” said a council statement.

Despite the hitches, the Indian government is keen on lending its support to the sector. Encouraged by this, and the positive global movements, the industry is positive that the wind will soon start blowing in the right direction for the sector.

Ramesh Kymal, chairman of the Indian Wind Turbine Manu-factures Association (IWTMA) who is also the chairman and managing director of Gamesa India, in the following interview highlights the policy paralysis in the sector. He also spoke in detail about the plans of the wind sector in capacity addition, while contributing to the energy security of the country.



rEnEwablE EnErgyrEnEwablE EnErgy


17may 2013 | Electricals Today

rEnEwablE EnErgy

Harnessing wind energy will help future-proof power bills for the next 25 years as producing the energy doesn't entail fuel costs, says Ramesh Kymal, chairman, Indian Wind Turbine Manufacturers Associationinterviewed BY renjini liza varghese

the answer lies in the wind

Various studies show that India’s wind potential is more than two lakh Mw. Is the industry equipped to cater to such high demand?A study by the Lawrence Berkeleys National Laboratory shows that the potential is about six lakh MW. Further study shows that even a state like Tamil Nadu has a potential to generate two lakh MW. WISE has conducted the research along with Sakthi Foundation. The point is, are we ready for it? I don't

think so. The combined strength of 14 manufacturers, who are members of Indian Wind Turbine Manufacturers Association (IWTMA) is about 10,000 MW, per year. But today, our actual

installation is one third of that, which means we have spare capacity. First, let us start loading the spare capacity from 3,000 to 8,000 MW. We can easily ramp up our manufactur-

ing capacity. It doesn’t make sense to have a production capacity of one lakh MW and then generate only 3000 MW.

Today, we have over-capacity in our manufacturing capabilities.

what are the major challenges in the sector in addition to policy paralysis, and regulatory issues?

The major challenge is that electricity is a state sub-ject. Therefore, no central rule is able to overcome the state’s autonomy in the matter. We have the Electricity Act, but we have been pushing for a Renewable Energy Act. A renewable energy law will override these state prerogatives for electricity policy making. And that is our biggest challenge. Even now, SERCs are guided by state policy makers and are

really not under any obligation to follow the guidelines laid down by the centre or by the CERC. So each state makes its own rules in electricity, as per its convenience. National interest is not taken into consideration when firming up a policy in electricity. So it is not only for renewable energy, conventional energy projects also face the same problem. It's just that their problems are more magnified compared to ours.

Transmission is a big problem in our case. Thermal power plants have enough time to plan transmission as the project itself takes three to four years. But a wind energy project takes just two to three months to complete. Grid from the utility is not able to keep up with the demand. One way around the problem is to take plans from us to the manufacturers and explain to them what we have decided for the next three to four years and plan the grid accordingly. Around 10 years ago, such a system was followed in Tamil Nadu and there were no transmission problems. But the system was dispensed with. We have enough wind power, but are unable to feed it into the grid because there is no grid.

Do you think it will be effective if a turbine manufacturing company or an IPP is allowed to develop the transmission lines as part of the wind project? It will be very effective. And there is a provision for it under open access of the EA. The problem is , electricity system is owned by the utility, which in turn, is owned by state governments. As such, they are dictated by government policies in such matters. In different parts of the country, there have been dedicated private



RENEWABLE ENERGY

transmission corridors. However, the concept has not really taken off because of the particular state's antipathy towards it.

We have witnessed a paradigm shift in terms of technology say from gear to gearless machines, the hub heights have increased beyond 50 mts now. What else can we expect on the technology front? Geared and gearless are two different technologies and they coexist. A signifi cant shift has happened from small to large machines. People realised that the wind patterns in India are unique and not like those in Europe. Due to the higher tem-peratures, you need a larger rotor diameter to harvest the same amount of wind. This is because the density of the air is lower plus the wind patterns here are medium to low. The shift was from the 250 kW machines to the 750 kW machines with large rotor diameter. There was a lot of opposition from the other manufacturers but this machine changed the economics of wind sector in the country: large blades were made in India, the hub heights increased and the company effectively demon-strated that we require machines made for India to achieve

better effi ciency. So the software and the hardware were adapted

to meet Indian requirements of dust, tem-perature and grid instability. Plant Load

Factor (PLF) went up from 12 to 15 per cent earlier to about

19 to 22 per cent. Then came more adaptations on the

software side, further increasing the rotor diameter

and also to cater to different terrains. Then we saw the PLF going

further up from 22 to 32 per cent. This improvement in effi ciency is happening

consistently and will continue. The next big thing people

are talking about are things like predictability and storage. But I think with the kind of shortage of power we have, it is a little premature to talk about storage of electricity.

Whenever there is a technological improvement, cost effec-tiveness comes into play. But in wind, it has increased the total cost of the project. Your comment?The cost of the project has not gone up. These are fallacies spread by people who don’t really know what is happening. It's an attempt to divert attention from the real issue. In 1994 , the capital cost was Rs4 crore per MW, today it is Rs6.5 crore per MW. First, these are prices for a turnkey project. Second, the grid connection charges have increased substantially. Third, the machines are larger com-pared to before, which means that the equipment itself costs more. There is drastic reduction per kWh from 1994 to now because of the larger machines. The improvement is about 100 per cent. So if the price was X kWh at the time, today it is X/2. Hence, it is incorrect to say that the effi ciency has not improved and the cost has not come down. Because the real cost and the real return are in the price per kWh and not on the capital cost.

The target is to add 15,000 MW in the 12th Five Year Plan from wind. How realistic is the target?In effect, we have lost two years. The fi rst year was a complete washout because from 3,200 MW, the generated capacity is down to half. Even now, the GBI has formally not been implemented, even though it has been announced. Also, nobody knows the fi ne print, which is why people are not really investing. The wind season is starting. And we are already late for this year. So this year is not going to be signifi cantly better than the last. Perhaps, we will touch 2,000 MW. But the good news is that we are prepared for the com-ing years and if these policies fall in place, we can go up to 5,000 MW. Effectively, this gives us three years to meet the target.

What is the wind sector’s contribution to the energy basket? Can you highlight the savings in terms of foreign exchange?

Target for 20155,000 MW

Wind is the only form of power production where you don’t use water, not even a drop.


RENEWABLE ENERGY

We are aiming 15,000 MW in the next five years. The amount of coal imports we will save will be in the region of Rs50,000 crore. It will also contribute to the energy security of the nation. The wind is blowing anyway, and if not tapped, it will just flow across the country. It can be put up in small modules. You are future proof-ing the power bills. If we tap wind energy, the power bills will not go up for the next 25 years. Wind is the only form of power pro-duction, where you don’t use water. Looking at all these advan-tages, everybody is shocked that the government is still dragging its feet when it comes to renewable energy, especially wind. That wind power is cheaper than conventional power is an established fact. And then they throw these canards like wind energy is infirm power and that it's not predictable. Wind is not infirm power. In the wind season, it is assured power, it is predictable. The naysay-ers, in my opinion, are anti-nationals.

Chinese companies are entering India. How tough a compe-tition will they be for domestic manufacturers?We are not worried about the quality of the turbines because our quality is much superior to theirs. The worry is that they will assemble locally and then procure cheap financing through their banks, which are government owned. They have done that in the past with other sectors. Therefore, we want to leverage on what the finance minister said regarding provid-ing cheap financing through IREDA for wind sector from the National Clean Energy Fund so that our interest rates come

down and we are able to compete with Chinese companies on a level-playing field.

What is Gamesa’s future plan and how is the order book looking like?The company has already invested Rs1,200 crore in four factories in India. No other multinational or Indian company has done this till now. We have a very healthy pipeline of projects, which means our MW machine pipeline is also healthy. Last year was bad for everyone in India and Gamesa was no exception. Though we did better than some other companies, we couldn’t match up to the potential. This year will be different as our order books are already full, especially for the 2MW machines. This gives us confidence and makes us optimistic about our perfor-mance this year.

We have spoken about the technological development in India. What is the scope for repowering in India?The scope for repowering in a state like Tamil Nadu is high. Having said that, we are talking about less than 1500 MW levels, but that will make a lot of difference as these places are in the best of wind regions and the transmission systems are already in place. The Government should encourage repowering. But the policies have not yet fallen in place.

Moreover, we still haven't figured out what to do with the old turbines that will be replaced with new ones; they still good to go for about 10 years.

Also, we need clarity on the old PPA. Those are at the old rates and now the PPAs are at the news rates. The government is still insisting that repowering should be at the old PPAs. This approach on the part of the government is not helping.

How far are we from offshore?In my opinion, very far. The potential in India is not that great. Even the known potential is only about 1,500MW. This is a drop in the ocean compared to the potential onshore. When we have not exploited the onshore potential fully, why would we go offshore? And offshore is going to be three times more expensive.

I don't think we have the technology, nor is India suited for offshore unless there is a big breakthrough in technology, wherein you have floating wind turbines. Then it makes sense, otherwise, the sea is very deep on the west coast with the ghats behind, which acts as a wall, preventing us from getting the full advantage. The east coast side is more suitable for offshore but it is cyclonic.

We estimate that in the next five years the sector will add a capacity of 15,000 MW. The amount of coal imports saving we will achieve, while adding this, will be in the region of Rs50,000 crore."

GENERATION DATA- STATE WISE FROM APRIL 2012-MARCH 2013 (IN MW)

States April May June July August September October November December January February March TOTAL

Maharashtra 2.95 20.15 15.9 17 12 125.05 0.25 14.4 28.1 31.65 20.55 288

Andhra 5.5 12.6 73 42 2.4 54.6 9 2.9 202

Rajasthan 1.25 3.95 3 72 6.3 37 25.85 20.6 23.05 91.2 31.9 298 614

Tamil Nadu 26.95 27.75 30.15 28 27.5 20.4 2.15 0.85 1.6 3.75 5.9 175

Gujarat 9.85 40.3 9 40.1 22.1 5.45 2.9 78.3 208

Karnataka 7.5 70.4 13.7 31 6.2 20.15 6.1 8 6.4 10.4 4 18.15 202

Madhya Pradesh 9.6 9.6



T&D

SMAR

TENI

NG GR

IDS

20_24_ET_May13_Smart Grid.indd 20 30-04-2013 15:31:56


T&D

A clear road map for smart grids is the need of the hour. And the stake holders welcome the sanction of 40 pilot projects as a step in the right directionBY RENJINI LIZA VARGHESE

India faces a shortfall of 15 per cent in power today, which impacts the overall GDP growth of the country. With the enhanced technology available, the move is to now curtail the shortfall in an effective manner by controlling the transmission

and distribution losses. According to the latest data available, the country is fighting a national average of close to 30 per cent in T&D losses. This includes losses in technical and accounting.

The question that strikes everyone is: should India look at smart grid application, when 30 per cent of the population still have no access to electricity? Yes, technology can help improve the situation. It can bring down the T&D losses by identifying the cause and point of loss. Smarter meter along with identifying the losses can also con-trol the flow of power in the system. A stable and IT-augmented grid will ensure the quality of power. There will be a vast transformation in terms of peak load management, carbon emissions and forecast-ing. To simplify it, any decline in the T&D losses means you have more power for disposal.

P Umashankar, secretary, ministry of power, wrote in one of his blogs, “Although Indian Smart Grid may look quite different from an American or European Smart Grid, but its value and impact are no less. Smart grids are an important option for sustainable develop-ment, but we must also recognise that it is not a miracle cure for the challenges that Indian power sector is facing today. Smart grids are not an overnight process, the details are impossible to predict, but the trends are easier to identify. Macro-economic pressure means there will be a need for much more capacity growth, and policy choices will push a more sustainable grid.”

A new technology will come with a cost, and for a price-sensitive market like our country, the initial investments can make some eyebrows rise. But one should understand that the country's GDP and growth in power sector are inter-connected. And it is a necessity to invest in technology, especially in the T&D segment; it is no longer a luxury, but a need of the hour.

Though the central government has been deliberating the implementation of smart grid application for quite some

time, it is yet to come out with a clear road map for the smart grids. But the good news is, the government has sanctioned pilot projects. “The road map is not clear yet. Smart Grid Forum has submitted the recommendations to the Ministry of Power, but there is no clear document yet on smart grid implementations.



T&D

All members of the ISGF are deliberating and articulating to give a structure to the smart grids. An appropriate policy and regulatory framework needs to be worked out for a smooth roll out. Total cost of a national roll out of the programme is Rs31,000 crore,” explained Reji Kumar Pillai, president, India Smart Grid Forum (ISGF).

Power Grid Corporation India Limited (PGCIL) has also approached CERC for guidelines on the implementation and an order is expected soon. “Rooftop solar installations are catching a momentum. For the rooftop, the standard of connectivity draft will be issued by the Central Electricity Authority (CEA) shortly that will give a structure and outline,” pointed out Pankaj Batra, chief engineer, CEA. He added that CEA is conducting a series of workshops on the national and the regional levels for the State Electricity Regulatory Com-missions (SERC) and the distribution utilities, highlighting the benefits of smart grid applications.

Though at a very slow pace, there is some progress in smart grid implementation. While Haryana has implemented smart metering, Puducherry has implemented the first smart grid city initiative in the country. The project was sanctioned in October 2012. A two-way metering system is being used and the meters distributed by the Discom are slightly costlier than the regular smart meters. The city has employed multiple technologies and project has sixty different stake holders involved. As a first step, the city installed around 200 meters and increased it to 2,000 meters by April 2013. The goal is to extend the scheme to all the 87,000 consumers in the city and it seems like a fairly ambitious goal, it seems attainable at the pace at which it is being executed. Puducherry carried out the smart grid application along the entire ecosystem of T&D. Starting from the substations (monitoring office) to the elec-tric poles and then to the smart meters at the consumers end.

In Puducherry, it enabled the utility to do same-day billing and increased the utility's capability to

respond to consumer demands. Also, power consumption could now be maintained

at a desired grid level. For both, the consumers and the distribu-

tion utility, smart grids enabled understand-ing the need of

power consumption optimisation.

In addition to this, 14 projects have been sanctioned. Once the results of

these pilot projects are analysed and studied, the SERCs will roll them out on a larger scale. As of

now SERCs are refraining from employing smart girds on a large scale to test the benefits vis-a-vis cost. For a country like ours, it is imperative to analyse the cost effectiveness. “There is a delay in kick-starting the pilot projects because of people’s inter-ventions in policy making. The total cost of the pilot projects are estimated to be Rs400 crore and out of which the 50 per cent will be grant and the rest 50 per cent will come from the utilities and central government,” added Reji Kumar.

As electricity is a concurrent subject, the implementation of smart grids falls under the state prerogative. According to sector experts, the grid conditions/standards are good enough. But the fiscal conditions of the Discoms or SEBs are the issue.

Standards are essential when putting a new technology into operation. "As India has not executed the smart grids, the

country’s participation in the global standard development is negligible. The geographical and the economical pattern are entirely different from the rest of the world. Humidity and temperature are high. So equipment tested in the

Rs400 crorethe total cost of pilot projects



T&D

Smart grids are an important option for sustainable development, but we must

also recognise that it is not a miracle cure for the challenges that the Indian

power sector is facing today. Smart grids are not an overnight process, the

details are impossible to predict, but the trends are easier to identify.



T&D

Europe or US may not work in the Indian conditions as those might have under gone a test at -40 degrees,” said Srikanth Chandra Shekar, senior regional programme manager, IEEE-

SA. According to him, all things regarding smart grids are moving in the right direction in the current Five Year

Plan. The announced pilot projects are expected to complete in 18 to 24 months. Technology is

evolving at a mind-boggling pace. A look at the mobile phones is testimony to that. In smart

grids too, the current technologies may give way to technology that may be developed

in the coming years, one that may be more suitable for the conditions here.

According to PGCIL, the transmission segment is witnessing large scale smart grid integration. The integration of all 400kV substations are on and the target is to amalgamate all 220 kV and above stations in the country to the smart grid. Phasor measurement unit (PMU) or synchrophasor is being implemented in a phased manner. The total cost is

estimated to be between Rs600 and Rs700 crore, and the completion period is

two years. This will help substations with real-time data. This data, in turn, will assist

the station to study the grid behaviour in the 24 hour cycle. The control mechanism will

be enhanced and the complexity in handling the load management will be made easier. It will

aid in generating accurate grid report. This will also help in forecasting the supply load on the lines,

effective management of the renewable energy grid integration. The best feature of the system will be the out-

age management support.

Integrating renewable energy with the grid will be vital. The Jawaharlal Nehru National Solar Mission aims to add 20,000

MW by 2022. There is heavy emphasis on Photovoltaic. “Through the solar mission the country is looking at creating island or micro-grids at this stage. But going forward, these micro-grids will eventually get augmented to the main grid. This is where the smart applications role comes handy. It will make sure a smooth operation of the connection and disconnection from the grid which is imperative,” added Shrikanth.

While one faction of the industry argues for net metering, the others argue for two-way metering. Experts say multiple technologies and different equipment can be adopted for smart grid according to the state governments’ requirements rather than looking at uniform equipment to roll out the programme.

To bring cost effectiveness in smart meter equipment, domes-tic manufacturing is encouraged. Smart meters, which were expensive to buy earlier, have now become affordable. What is really required now is policy support at state and national levels. Only then will there be substantial roll outs and the country will have a robust smart and sustainable electricity grid in place.

14 projects have been sanctioned. Once the results of these pilot projects are analysed and studied, the SERCs will roll them out on a larger scale. SERCs are refraining from employing smart girds on a large scale to test the benefits vis-a-vis cost.



DISCOMS

CERC's 'compensatory tariff' orders for Tata Power and Adani Power comes as a relief to the generators and offers hope to companies, bogged down by rising fuel prices. But the question is: how long will it take for these orders to materialise? And will these measures be enough to shore up their bottomline? BY RENJINI LIZA VARGHESE

The price of power

Power companies, which were wading through troubled waters in the recent past, have got a breather with the latest order from the Central Electricity regulatory Commission (CERC). The order allows two of the country's

leading power generators, Tata Power Ltd (TPL) and Adani Power Ltd (APL), “compensatory tariff.”

TPL and APL had approached the regulator in separate instances citing that the PPAs they had signed with the distribution utilities for their respective Ultra Mega Power Projects (UMPP) were becom-ing financially unviable.

In their respective petitions to the regulator, both companies had sought relief on the account of the adverse effect owing to the unforeseen, unprecedented movement in the fuel cost. When they bagged their projects, both companies had entered the fuel supply agreement at $30-$40 per tonne. But within just five years, they started taking a hit on the margins as fuel costs had escalated to $70 to $100 levels. This was mainly because Indonesia imposed price rationalisation on par with the international price, which in turn saved the country from loosing on the tax. However, the new structure had a negative effect on Indian thermal producers as they were dependent on Indonesian coal to run the power plant. They

Both in the case of the Adani Power Limited and Tata Power Limited case, CERC member S Jayaraman dissented with the majority order passed by the five-member panel, headed by Pramod Deo. He called the matter a dispute outside the scope of CERC’s regulatory powers. “The decision will be a precedent to be followed in future. The exercise of regulatory power in such cases will have a cascading effect and the sanctity of competitive bidding will be lost. It is not the commission’s mandate to ensure the developer earns profit in every situation,” Jayaraman said in a separate order.

Dissented order

now found that the projects are becoming financially unviable. Hence, some of the major generators approached the apex body CERC for a relief. For the regulator it was a difficult issue to solve as the projects were awarded under competitive bidding and there was a signed contract between different parties. The apex body has

25_27_ET_May13_Focus CERC.indd 25 30-04-2013 15:09:18


DISCOMS

unanticipated increase in price of imported coal. This Commission cannot remain oblivious to the interest of consumers and lenders.

In the present case, the escalation in price of imported coal on account of Indonesian Regulation and non-availability of adequate fuel linkage from Coal India Limited for the project of the petitioner is a temporary phenomenon and is likely to be stabilised after some time. Therefore, the petitioner needs to be compensated for the intervening period with a compensation package over and above the tariff discovered through the competitive bidding. As and when the hardship is removed or lessened, the compensatory tariff should be revised or withdrawn. In our view, this is the most pragmatic way to make the PPAs workable while ensuring supply of power to the consumers at competitive rates.”

As per the order, the commission has directed the stake hold-ers and the respective States to constitute a committee to look into the impact of the price escalation and suggest a package for compensatory tariff. The base tariff will remain the same. However, the commission, through its order, has given a temporary relief in the form of compensatory tariff over and above the tariff decided under the PPAs to meet bridge the financial gap raised out of the new tax regime in Indonesia.

The order is seen as a landmark by power sector companies as well as sector experts. According to analysts it sets a precedent

in the power sector. Reacting to the order, Gautam Adani, chairman,

admitted the case as there were multiple parties involved and the different stake holders were unwilling to find a solution because

of the complexity of the matter. “While hearing the case, CERC has recognised the

issue as hard to predict. It also recognised that there is an economic imbalance created

and whether this has happened earlier in the coal traded

countries. The extra tax issue has always been an unfore-

seen problem. All involved should understand

the economic imbalance created because of the situation, which needs to

be addressed. CERC, through both orders, has done that,” said Kameshwar Rao, executive director,

PwC. He added that the matter would have been pushed ahead any longer, then the losses would have been higher and

the companies would have gone bankrupt.

T he CERC order states, “Accordingly, as a regulatory body, this Commission deems its responsibility to intervene in the

matter in the interest of the consumers, investors and the power sector as a whole to consider adjustment in tariff in view of the

The loss Tata Power suffers annually on account of the fuel cost hike

Rs1,873

TATA POWER

4,000 megawatt power plant in Mundra, Gujarat Gujarat, Maharashtra, Punjab, Rajasthan and Haryana

utilities signs PPA with the Coastal Gujarat Power Limited (a wholly owned subsidiary Tata Power) at Rs2.26 per unit for 25 years Coal requirement of 12 mtpa for project was met by

Indonesia coal Export regulations in Indonesia come into effect in 2011

resulting in an escalation of cost The new regulation makes the coal cost jump

from $42 to $72 Tata Power says it suffers a loss of Rs1,873 crore annually,

approaches CERC.

ADANI POWER

4620 MW plant in Mundra Gujarat on imported coal Two separate levellised tariff PPAs with GUVNL at Rs2.89

and Rs2.34 per unit Another PPA with Haryana Utilities at a rate of

Rs2.94 per unit The coal purchase agreement entered in 2008 with the

Indonesian coal mine was for $30-35 per tonne In 2010 Indonesia announced that all the coal exported

from the country should be on the bench marking international price This lead to a massive increase in power generation cost

which could not be passed on as there was no provision in the PPA Adani Power Limited filed a ‘Force Majeure’ or change in

law with CERC

Facts file



DISCOMS

Adani Group, said, “We welcome the CERC order, which will pave the way forward to bring back investor confidence into the Power Sector.”

In a statement, Tata Power Limited, said, “The Central Electricity Regulatory Commission (CERC) has notified CGPL of its decision for a compensatory tariff to be paid till the fuel situation stabilises. We welcome this positive development. The details of the proposed compensatory tariff will be finalised by a Committee to be set up as per CERC’s direction. This decision of the CERC is an important step in resolving the major impasse affecting imported coal based power projects in the country that got impacted due to extraneous factors well beyond the control of Developers. CGPL, has been delivering the full potential of Mundra across the five beneficiary states albeit with tremendous fiscal pain.”

Gopi Krishna P, AVP, Project Advisory and Structured Finance, SBI Capital said, “The compensatory tariff is a variable one. As far as I understand, the tariff once fixed by the committee, the time period perceived is from now to next 25 years. Discoms have to shell out a large chunk of money for procurement.” Rao of PwC also pointed out that, “This judgement is a temporary measure, which may get extended as a permanent measure.” Tata Power Limited, in another statement, said “We acknowledge that this order opens up oppor-tunity for the sector to use its imported coal based assets effec-tively, competitively and contribute to National economy. It unlocks value in several of the under-utilized or abandoned proposals, which will now contribute to the burgeoning Power demand.”

Experts believe that the implementation can take a long time as in many other instances in India. They are also not ruling out

the possibility of Discoms approaching the court with the CERC order. Any further legal entanglement can delay the committee recommendations on the compensatory tariff coming into existence. “The gcv of the coal, which we are getting from coal India is much lower than published. The cost of the domestic coal when normalised for use is much higher. Internationally, the coal price has fallen and continues to fall. So the difference between the domestic coal and the imported coal had shrunk from what it

was a year back. The difference now could be anywhere between 50 paise to Rs1 depending on the type of coal. To that extent, the Discom has to bear the burden of that difference,” says Hemant Joshi, Senior VP corporate finance and treasury, CLP India.

Any movement in the international coal market will affect the Indian power sector as the dependency on imported coal is on the rise. One one hand, the projections from Coal India Limited (CIL), the sole domestic coal supplier are showing a rise in input. On the other hand, the demand is also climbing. CIL, from time to time, has expressed its inability to meet the demand.

In short, the quantum of dependency on imported coal will see a considerable rise with the aggressive capacity addition plan that the country has in pipeline. In such a scenario, what is the possible solution to such unseen problems?

Both Rao and Joshi were okay with cost pass through as a solution. Joshi elaborated, “There should be mechanism

in place so that the fuel cost is a pass through. That is how it works internationally. You never know what factors affects the international coal prices. When it goes up or down then it is a pass through. If not, when the fuel price is low, then the consumers don’t get benefited. In oil it is done. This is a long-term solution/framework. India follows the fixed price bidding. The good developers are squeezed out and these artificially low bidders get the projects. On a later stage, when they realise that the projects are financially inviable, they approach the regulator to get relief. To avoid these things, the low cost bid (L1) should be done away with and the bids should be done with coal as a pass through.”

The order increases the burden on the Discoms. According to Rao, the PPAs are signed with different states. So when distributed among different states, the magnitude of the burden will be less.

Joshi feels that consumers don't mind bearing a difference of 50 paise to Rs1. Now, it is up to the political will wether they would pass on the burden to the consumer. Overall, the energy cost is going up and the consumer should be ready to shell out more for power from now on.



GENERATION

Long delays in completion of large hydro electric projects are adding to the country’s power woes. With less than 20 per cent contribution, hydro power is losing its due share in the energy mixBY PROFESSOR V K DAMODARAN

IN TROUBLED WATERS

GENERATION



GENERATIONGENERATION


28_32_ET_May13_Large hydro electric project.indd 29 30-04-2013 15:10:05


GENERATION

Growing energy demand in the country and the concerns about the environment compelled India to develop large hydro electric power projects. The total potential of the large hydro projects is pegged at 1,50,000 MW and that

of small hydro projects commonly known as SHP is estimated at 5,0000 MW. And the government has ambitious plans for capacity addition. Still, the country is far behind from achieving this goal—as on 28 February 2013, the total added hydro capacity was 3,9449.20 MW. (Table 1)

Around 400 million Indians still have no access to electricity. In 1947 the installed capacity was a mere 1362 MW, which has risen to 214,630 MW (February 2013), with another 31,500 MW of cap-tive power. The share of renewable power generation amounts to 27,480 MW. Compare this with over 1000,000 MW of China and USA, we are far behind. We produced 855 billion kWh (BU) in 2012, making our per capita consumption 778 kWh/year. Our electrical energy mix is 57 per cent coal, 9.5 per cent oil and gas, 18.7 per cent hydro and 2.3 per cent nuclear and 12.5 per cent renewable. The share of hydro has been steadily falling and the current installed hydropower capacity is 39,339 MW, against a potential of about 150,000 MW. (Table 2)

In addition to this, 94,000 MW of pumped storage hydro capac-ity is identified in the country. This is important when we look for larger share of solar PV power in our grid, for which storage other than chemical batteries like pumped storage would be ideal. From small, mini and micro hydro sources, through 1,512 identified sites, an installed capacity of 6,782 MW can also be realised easily (Total SHP potential estimated is 15,384 MW in 5,718 potential sites). All these total up to more than 250,000 MW of hydropower potential.

It is well known that around 32 per cent of all electricity produced is not reaching the consumer as billed consumption. Though

government aims at bringing this down to 17 per cent, many State Utilities are still accounting percentage losses in the 20 plus

range. According to Central Electricity Authority statistics, the available capacity to serve the consumer is

around 110,000 MW against a demand of 122,000 MW and Installed Capacity of

over 200,000 MW. Add to this, the inadequacy of our

grid structure, which became evident

during the Black out (grid failure) on July 30 and

31, 2012, which affected 620 million people (half of India and 9 per cent of

world population for several hours). Lack of modernisation of the grid is a weakness to contend

within India.Government of India, on being advised by energy experts,

decided that for power grid stability, the ideal mix of hydro and thermal power will be 40:60. In August 1998, for the first time, and later in November 2008, the Government announced its Policy on Hydropower Development. Wanting to help project-affected peo-ple, it announced 1 per cent free power for local area development to be supplemented by 1 per cent State contribution. However,

these incentives still not adequate for people to support hydro-power development in the country.

Large hydropower requires having large inundation of forest lands, adversely affecting the natural environment in the region. It is often associated with submerging pockets of rare species of flora and fauna. Further, families are to be relocated from the submer-gence areas and project construction areas. Such families suffer loss of shelter, jobs and their uprooted children are often denied educa-tional facilities. The largest such relocation in the world is associated with the Three Gorges HE project on the Yangtse in China, with 1.13 million people being moved to new locations in three stages of res-ervoir filling. The project, with an estimated cost of US$21.7 billion had set apart 45 per cent of it for rehabilitation and environmental protection. When the project was completed, this component of the cost touched to 52 per cent of the outgo. The money was used to provide every family with a house (not free), work and admission for children in educational institutions wherever they were, to get the full support of the public. Even though Central Electricity Authority has issued several guidelines on how to proceed with hydro electric projects, in many projects in India, the State Utilities are seen to withhold information from the public. And the projects are forcefully pushed through. This often leads to cost escalation,

per capita consumption778 kWh/year



GENERATION

time overruns and nonfulfilment of full project objectives. Paying attention to the real problems can only ensure acceptance of projects by the locals. At the same time, the environmental aspects are also to be covered reasonably satisfactorily.

It is well known that the hydro power projects in India are beset with myriad problems. At the international conference on Advances in Civil Engineering (ACE-2011) held at KL University, Guntur (October 2011), Murari Ratnam, Chitra R and Manish Gupta of Central Soil and Materials Research, New Delhi, in their paper on 'Current Status and Future Scenarios of Hydropower Development in India, 'cite the following as the issues impeding the development of hydropower: difficult and inaccessible locations, land acquisition problems, resettlement and rehabilitation issues, law and order situation, geological surprises, interstate disputes, issues of appor-tionment of project cost among various beneficiaries, cumbersome procedures for environment/forest/wildlife clearances, and exces-sive burden on account – Net Present Value.

In almost all cases, these lead to cost and time overruns and execution related problems. As a result, the final project outcome tends to be unsatisfactory. There are other impediments as well. The remoteness of project locations makes power evacuation difficult to organise. There is unavailability of long-term finances,

The generation has been diminishing steadily over the years – dropped by 23.17 per cent from that of 1993-94. The possible reasons cited are: Unviable projects, unprofitable installed capacities, over-optimistic hydrological assumptions, over-development (beyond the carrying capacity of the basin), catchment area degradation, higher rates of sedimentation and inadequate repair and maintenance.




GENERATION

projects in India for the last 18 years from 1993-94 to 2010-11 (www.sandrp.in), has brought out the fact that the generation has been diminishing steadily over these years – a drop of 23.17 per cent since 1993-94. This cannot be attributed only to vagaries of monsoon. As per the study the reasons include unviable projects, unviable installed capacities, over-optimistic hydrological assumptions, over-development (development beyond the carrying capacity of the basin), catchment area degradation, higher rates of sedimentation, inadequate repair and maintenance. The study looks at MU generated per MW of installed capacity, based on CEA statistics and suggests that detailed state wise, basin wise, type wise and age wise analysis has to be undertaken to find out the exact reasons. It also warns that pushing large hydro projects without considering these factors will lead to an avoidable social, environmental, economic and opportunity losses.

While we are unable to maintain even the 40:60 ratio for hydro-thermal balancing, the climate change impacts require us to be going for more hydro to compensate for various other unantici-pated situations. India has a history of 115 years in hydropower development, starting with the first 130 kW hydro power station commissioned in Sidrapong, Darjeeling in 1897. The largest hydro-power station in India, as of now is the 1500 MW Naptha Jhakri hydro project in Himachal Pradesh. Considering environmental issues, it will be unwise to expect all the hydropower potential to be developed effectively and economically. Yet, it may be possible for India to aim at 150,000 MW out of the 250,000 MW of potential that we were talking of. But, we are still at 39,339 MW.

The Five Year Plan period-wise progress in power development, and in particular of large hydropower reveals the woes that we face. Almost in every plan, the power targets have slipped con-siderably. Many hydro power projects spill over to the next plan period as a result of persistent delays. (Tables 3)

During the last decade (11th and 12th Plan periods), hydro power capacity achieved a compound annual growth rate of only about 4 per cent . The average annual net capacity addition dur-ing the 10th Plan period was around 1,700 MW and during the 11th Plan was below 900 MW. The CEA expects to add hydro capacity of 11,897 MW in the 12th Plan period, including a contribution of 3,534 MW by private companies. The Working Group of Power for the 12th Plan of Planning Commission has however set a capacity addition target of only 9,204 MW for this period. The majority of these projects (7,428 MW) were planned to be completed during the 11th Plan.

A large scale push in hydropower development necessarily should start with finding solutions for the impediments. We have excellent geological investigation expertise in the country. Why then project after project, should we meet with ‘geological sur-prises’? Can we convert hydropower projects as people’s projects, instead of trying to fight and win over the public resistance? With 4,711 large dams, India is the world’s third largest dam builder, next only to China and USA. Can we come up with up-to-date codes on dam building practices, taking into consideration, local geography, seismicity, ecological protection and least disturbance to the living world around? A new paradigm and strategy for hydropower development in India is a must, if we are to go ahead and develop our still unutilised benign hydropower resources.

LIST OF HYDRO ELECTRIC STATIONS IN THE COUNTRY WITH CAPACITY ABOVE 25 MW

As on 28.02.2013

REGION / SECTOR NO OF STATIONS NO OF UNITS CAPACITY IN MW

NORTHERN 61 206 15523.25

WESTERN 28 101 7392.00

SOUTHERN 67 240 11387.45

EASTERN 16 58 3946.70

NORTH EASTERN 10 28 1200.00

ALL INDIA TOTAL 182 633 39449.4

INDIA - HYDROPOWER CAPACITY

NO: RIVER BASIN/RIVER SYSTEM POTENTIAL IN MW

1 Brahmaputra Basin 66,065

2 Indus Basin 33,832

3 Ganga Basin 20,711

4 East flowing rivers of Southern India 14,511

5 West flowing rivers of Southern India 9,430

6 Central Indian river system 4,152

Total for India 1,48,701

PLAN WISE GROWTH OF HYDROPOWER IN INDIA

PLAN PERIOD INSTALLED CAPACITY HYDRO AS PER CENT OF TOTAL

1ST PLAN (1951-56) 1061 36.78

2ND PLAN (1956-61) 1917 41.19

3RD PLAN (1961-66) 4124 45.68

3 ANNUAL PLANS (1966-69) 5907 45.58

4TH PLAN (1969-74) 6966 41.8

5TH PLAN (1974-79) 10833 40.6

ANNUAL PLAN (1979-80) 11384 40.01

6TH PLAN (1980-85) 14460 3.96

7TH PLAN (1985-90) 18307 28.77

2 ANNUAL PLANS (1990-92) 19194 27.79

8TH PLAN (1992-97) 21658 25.24

9TH PLAN (1997-02) 26269 25

10TH PLAN (2002-07) 27969 21

11TH PLAN (2007-12) 28869 21

TOTAL (INCL. PRIVATE) 39449 18.7

especially in the face of long gestation periods. There are high production risks as projects are planned based on historical data, as a result the execution tends to be widely off the mark. In addition, other less frequent issues involve unavailability of adequate stor-age due to failure of rain or other forms of inflow. Increased rates of siltation due to neglect of environmental factors in the upstream region is another factor that affects projects.

A study by the South Asia Network on Dams, Rivers and People (SANDRP) to appraise the performance of large hydro power

Table 1

Table 2

Table 3



DISTRIBUTION

WHAT MAKES LEDS THE PREFERRED OPTION FOR LIGHTING UP STREETS AND OTHER PUBLIC SPACES IN INDIABY BABITA KRISHNAN

DISTRIBUTION

An LED street light or solid-state lighting tech-nology (SSL) is an integrated light because, in most cases, the luminaire and fixture are not separate. Different designs have been cre-ated that incorporate various types of LEDs

into a light fixture. The shape of the LED street light in India depends on several factors, including LED con-figuration, the heat sink used with LEDs and aesthetic design preference.

SSL technology uses semiconductor light-emitting diodes (LED), organic light-emitting diodes (OLED) or polymer light-emitting diodes (PLED) rather than electrical filaments, plasma, or gas to create light. When it comes to street lighting, LEDs have several distinct advantages over traditional lighting technologies. The light output of indi-vidual LEDs is low compared to incandescent and compact fluorescent bulbs. However, the compact size of diodes means that multiple diodes can be clustered together into an LED array. Individual LEDs are also becoming more powerful, with a higher lumen output. As a result, LED arrays have the potential to have a much lower profile than other lighting technologies while using less energy.

LEDs light are very durable as they do not contain delicate glass enclosures or filaments. LEDs are made of polycarbonates which are vibration resistant, making them ideal for road-side applications.

SSL products do not emit UV or IR radiation. UV radiation can damage fabrics and cause eye and skin damage. IR radiation can potentially cause burns to materials or skin with excessive contact. Traditional lights emit light in all directions while LEDs emit light in a specific direction. This reduces the need for reflectors and diffusers, resulting in less wasted light and more efficiency.

In spite of the improvements in the efficiency of lighting technologies, outdoor public lighting systems in India can still account for as much as 40 per cent of a municipal government’s total electricity use. Lighting manufacturers are responding to cities’ concerns for reducing costs and greenhouse gas (GHG) emissions by developing more effi-cient lighting products integrated with sensor technolo-gies, control systems, artistic accessories, and renewable energy components.

While LED technology offers a wide range of unique potential benefits, industry researches find that most cities across the country are primarily interested in the energy-reducing promise of LEDs for street lighting and traffic light applications with little focus on the perfor-mance issues or aesthetic and place-making opportunities presented by LEDs and street lighting in general. While older technologies are concurrently being improved, LED lighting sources are expected to continue to surpass other technologies in terms of efficacy.

The following special characteristics of LEDs:Lower operating costs resulting from energy efficiencyLower operating costs due to longer lifeHighly modifiable control systems No toxic metals or chemicalsMonochromatic light No burn out as they dim over time Near instant-on and rapid cyclingGood performance in the colder temperatures.

WHAT MAKES LSTREETBY BA

Ainto a light fixture. The shape of the LED street light in India depends on several factors, including LED configuration, the heat sink used with LEDs and aesthetic design preference.

diodes (LED), organic light-emitting diodes (OLED) or polymer light-emitting diodes (PLED) rather than electrical filaments, plasma, or gas to create light. When it comes to street lighting, LEDs have several distinct advantages over traditional lighting technologies. The light output of individual LEDs is low compared to incandescent and compact fluorescent bulbs. However, the compact size of diodes means that multiple diodes can be clustered together into an LED array. Individual LEDs are also becoming more powerful, with a higher lumen output. As a result, LED arrays have the potential to have a much lower profile than other lighting technologies while using less energy.

delicate glass enclosures or filaments. LEDs are made of polycarbonates which are vibration resistant, making them ideal for road-side applications.

can damage fabrics and cause eye and skin damage. IR radiation can potentially cause burns to materials or skin with excessive contact. Traditional lights emit light in all directions while LEDs emit light in a specific direction. This reduces the need for reflectors and diffusers, resulting in less wasted light and more efficiency.

ONE

FOR

THE R

OAD



DISTRIBUTION

Nikhil Malhotra, country manager, GlacialTech, on why LEDs are now the leading solution for street lights in India

INTERVIEWED BY BABITA KRISHNAN How successful and advisable is the use of LEDs in public spaces, stadiums, airports and the like in India?LED lights are at the forefront of the new trend in lighting technol-ogy. LED Technology is being globally recognised as an extremely efficient and eco-friendly technology. The market for LED-based lighting is evolving very quickly. LED outdoor lights have afforded architects an array of new options, as well as energy savings, when it comes to illuminating public areas like airports. Long life of the LEDs makes it a more reliable lighting source for public spaces because it’s not easy to change lights in public spaces. A normal LED is rated to have a 50,000 hour-lifespan. In this same amount of time, you will buy over 15 regular traditional lights. Secondly, they are more efficient than the traditional light sources and will give better light while saving about 85 per cent of the energy. The efficiency of LEDs is increased by using switching power supplies.

In these active power sources the quenching of electrical power is not used. Third is durability - LEDs have no filament or tube that can break, thus they are far more durable. Even if you happen to drop or mishandle one, you will not be left with a mess of broken or shattered glass. Fourth, LEDs are today’s most environment-friendly light source other than sunlight. There are far less hazardous substances used inside LEDs compared to other lighting. Fifth, economy - when calculating the cost of lighting, the life-cycle cost needs to be considered. LED technology possesses benefits superior to other alternatives on the market in terms of energy efficiency and life span. Last but not the least is flexibility - LEDs offer more flexibility and control when it comes to their aesthetic properties. Do you have any products specifically for this use?Glacial Light offers advanced outdoor lighting solutions to cater the commercial sector. A few examples are our advanced design 110 and 220 W High Bay lights, which are specifically designed with Philips Lumileds LEDs that use thermal module technology to design heat sink. Our

Lighting matters

thermal module technology prevents the junction temperature from increasing when it reaches a certain level which guarantees the qual-ity of our high bays lights and extends their lifespan, while reducing atmospheric heat. There is an inbuilt system for controlling the temperature with no ultraviolet rays or toxic substances such as lead and mercury. Another is our flood light series which is also designed with Philips Lumileds LEDs. Our intelligent designs offer maximum light output by using 70 per cent less energy than typical high pres-sure sodium or metal halide light. Glacial Light’s Flood Light produces natural looking light for over 40,000 hours. We use a multi-chip technology with advanced lens technology, whereas other suppliers use COB (which has heat sink problems).

What percentage of your revenue comes from these avenues?Around 30-35 per cent of our revenue comes from these avenues.

Can you share some specific spaces where your products have been installed?We have done a lot of projects around the world. We have done High Bay110 and Flood Light installation at Colombo Airport, Sri Lanka and BL110 installation at the Emirates Airlines office, Dubai Airport, UAE.

Share of revenue comes outdoor lighting solutions

35%

33_34_ET_April13_Trends LED.indd 34 30-04-2013 15:34:52


INTERNATIONAL CORNER

The MENA region, through its planned energy related projects will attract $100 million to $20billionBY TEAM ET

POWER UP

As the Middle East Electricity exhibition held in Dubai in February rolled out of town for another year, there seemed to be plenty of cause for optimism in what was on the horizon for the industry in the region. Those involved in

power infrastructure had particular call for cheer with the news that a capital injection of $250bn was required in the MENA region’s power sector by 2017, if it is to meet projections for rising electricity demand.

A report published by the Arab Petroleum Investment Corpora-tion entitled MENA Energy Investment Outlook: Capturing the Full Scope and Scale of the Power Sector, stated that over the next five years power capacity in the MENA region will increase by 7.8 per cent annually, translating to a capacity increment of 124 gigawatts (GW). The total amount of required capital investment includes power Generation, Transmission and Distribution (GTD), and accounts for more than 200 planned and announced energy-related projects in the MENA region valued between $100m and $20billion.

Countries in the Gulf Cooperation Council (GCC) hold the lion’s share of investment growth, accounting for 42 per cent ($105bn) of total required expenditure, while Iran alone will require $49bn (20 per cent of total value) worth of investment for power GTD by 2017.

“A young, urbanising and fast growing population combined with the massive diversification and industrial expansion plans across the MENA region has led to a spurt in the demand for power,” said Anita Mathews, exhibition director of Middle East Electricity. “Some MENA countries have been struggling to keep up with the escalating demand amid political turmoil in parts of the region. By catching up with power demand being perceived as socially, economically and politically desirable, however, we see a concerted private and public sector effort to ramp up investment in power-related industries,” she added. Most likely the biggest spender in this power-rush will be Saudi Arabia, which is planning an “aggressive” programme of investment in its power sector, according to research from Kuwait Financial Centre, Markaz. Its 2012 report said that power consumption within the Kingdom has grown at a rate of 6 per cent a year over the last five years and is expected to continue growing as its population soars. IMF esti-mates state that numbers within the Kingdom are set to grow from 28 million this year, to 31 million in 2015 and 37 million by 2020.

Demand from a growing private sector is also likely to put pres-sure on the existing network as efforts are made to diversify the economy away from a reliance on oil.

The research estimates that state provider Saudi Electricity Com-

35_36_ET_May13_Case study Dubai power investments.indd 35 30-04-2013 15:11:33


INTERNATIONAL CORNER

pany will make fresh investments of up to $100bn by 2020 in order to meet demand. It currently has capacity to produce 40,000MW a year - an increase of over 70 per cent in the last decade - but plans to add a further 30,000 MW by 2020. Much of this generation will come through major, privately-developed schemes.

Markaz’s report added that this represented “a huge invitation to foreign players to invest in the Kingdom”, leveraging opportunities presented by potential GCC and pan-Arabian power grids.

“We also foresee huge investments in the alternative energy space,” it said. The Kingdom is planning to build a series of nuclear power plants, which would be capable of generating 20 per cent of requirements by the end of 2030. “Saudi is also aiming to have 41,000 MW of solar power capacity in the next two decades,” it added. Similar levels of investment per capita over the next decade

is also expected from Kuwait, with power consumption rates in projected to increase at 5.3 per cent a year until 2015 in

the country despite the fact that it already has one of the highest per capita usage rates in the

world, according to Markaz..The low pricing of power in

the country - underpinned by heavy rates of government subsidies,

had fuelled consumption rates alongside a population

increase that had increased demand for desalinated water. IMF forecasts predict

that Kuwait’s population will grow from its cur-rent rate of 3.68 million to 4.34 million by the end of

2017, and Kuwait’s Ministry of Electricity and Water (MEW) estimates power demand to grow from the current 11,000 MW to 25,000 MW by 2030. Markaz predicts that a spend of $25bn on building new power plants and infrastructure will be required in order to meet that demand, as the country’s seven current plants have a combined capacity of 13,233MW.

It also argues that demand for power will hit oil exports unless alternative sources of energy are found.

Saudi Arabia is expected to invest $100bn in power by 2020. MENA’s young population will see energy demand increase.

“Currently, 71 per cent of the total electricity generated in Kuwait is by burning liquid fuels. With growing demand, Kuwait will have to forego its future revenue from oil exports, if it is not altering its energy mix,” the report states.

“As per estimates, Kuwait uses an average of 200,000 to 300,000 barrels of oil and refined products each day to generate power.”

Markaz said that the government has set a target of generat-ing 2-3 per cent of its power from alternative sources by 2030. It has also been encouraging private sector investment through the Partnerships Technical Bureau (PTB) launched in 2008.

One project to emerge as a result is a gas-fired plant at Al-Zour North which is expected to cost around $5.86bn and generate 4,800MW of electricity when it completes by the end of 2017. A sec-ond independent project with a value of $2.5billion at Al-Khairan is set to cost $2.5bn and deliver 2,500MW of energy.

Other governments around the MENA region will undoubt-edly be following suit with comparably-sized projects, all of which should ensure that those involved in the power infrastructure sec-tor enjoy a promising few years ahead.

Annual incremental increase in power capacity in MENA region over next five years

124 GW

The MENA region will need to pump $250 billion into its power sector in the next five years to meet regional electricity demand growth, according to a report released ahead of Middle East Electricity 2013.Source: Arab Petroleum Investment Corporation

TOTAL INVESTMENT IN MENA POWER SECTOR FOR PERIOD 2013-2017 ($BN)

GENERATION (G)

TRANSMISSION (T)

DISTRIBUTION (D)

TOTAL (G,T,D)

Maghreb¹ 17.6 3.9 9.7 31.2

Mashreq² 36.8 6.3 18 61.1

GCC³ 63.1 10.7 30.9 104.7

Rest of Arab World* 2.3 .5 1.3 4.1

Iran 27.8 6.1 15.3 49.2

MENA Total 147.6 27.5 75.2 250.3

35_36_ET_May13_Case study Dubai power investments.indd 36 30-04-2013 15:11:36


MARKET COLUMN

Power companies in the third quarter have reported negative owing to the fuel supply issues. However, the annual results are expected to be in a healthier trackRupesh SankheSr. Research Analyst (Power & Capital Goods) Karvy Stock Broking

BETTER TIMES

In terms of generation the power companies have showed improvement in the first two months of this year. The third quarter was marred by fuel supply constraints. This directly reflected on the balance sheet of the com-panies, Tata Power is one such example. However, we

have seen though in a small quantum, there is improvement in the performance of the power generation companies.

The recent order from the Central Electricity regulatory Com-mission (CERC) in Adani Power case which is favourable to the generation company has also set a positive ground for the power companies.

Total power generation increased 1.7 per cent YoY in January-February’13; where as the coal-based genera-tion rose up 13 per cent. In terms of units the generation was 147 billion units (BU) in January-February’13 due to decline in generation by 3.6 per cent in February’13. The decline in generation can be attributed to lower gen-eration from hydel and gas-based plants. The generation from coal-based thermal projects rose 13 per cent YoY, while gas-based generation dipped 28 per cent YoY. India’s power generation by thermal-based plants grew 7.6 per cent YoY in April’12-February’13. Capacity addition stands at 13,594 MW in April’12-February’13 vs. target of 16,049 MW. All India PLF for thermal power stood at 69.9 per cent in April’12-February’13.

The average prices of RB Index coal stood at $85.5 per tonne in Q4FY13 vs. $85 per tonne in Q3FY13 and $105 per tonne in Q4FY12. However, it was offset by 8.9 per cent YoY depreciation in INR. The average forward contract prices stood at Rs. 4.6 per unit vs. Rs.4.2 per unit in Q3FY13 and Rs. 3.8 in Q2FY13.

Revenues of the power companies under our coverage set to rise 7.9 per cent YoY & profits by 5.6 per cent in Q4FY13E,

owing to new capacity additions and increased tariffs.

Adani Power is expected to post healthy top-line 82 per cent. However, it would continue to report loss on higher fuel costs and fixed PPA.

JSW Energy is likely to show lower revenue growth on fall in PLF from Ratnagiri and Barmer plants.

NTPC is likely to report 4 per cent growth in net sales & 4per cent YoY growth in PAT on lower generation.

Tata Power’s standalone revenues may rise by 1.6 per cent YoY owing to lower generation of Mumbai license area. On con-solidated numbers net sales to increased on higher capacity at Mundra and Maithon. However, its profits would be impacted by higher coal costs in Mundra project.

CESC’s revenue is likely to decrease by (6.1 per cent) YoY on lower generation. Its PAT would decrease by 25 per cent YoY on higher base. However, profit is set to post sequential

Total power generation increased 1.7 per cent YoY in January-February’13; where as the coal-based generation

rose up 13 per cent.

increase by 98 per cent.PGCIL is likely to report 15.9 per cent growth in top-line and

20 per cent growth in PAT on the back of higher capitalization (Rs. 26 billion in Q4FY13).

Coal India is likely to register higher PAT led by higher volume owing to higher rake availability. However, higher wage bills and diesel cost expected to offset its revenue growth.

37_ET_May13_Market Data Column.indd 37 30-04-2013 15:13:37

Announcing the 3rd Constr uction Week India Awards

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SEPTEMBER

2013

CW awards2013.indd 18-19 30-04-2013 15:05:24

Announcing the 3rd Constr uction Week India Awards

For details, visit www.constructionweekonline.in/awards

For sponsorship: Indrajeet Saoji +91 93202 85997 [email protected]

Abhijeet Desai +91 90040 49744 [email protected]

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Nominations now open.

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For nominations: Pallavi Joshi +91 022 6154 6015 [email protected] +91 9769711350

SEPTEMBER

2013

CW awards2013.indd 18-19 30-04-2013 15:05:24


MARKET DATA

Negative news emerging from all segments of power generation, registered slippages at the end of the year. While, in thermal, the reason for the stated decline was due to fuel supply constraints

SLIPPAGE CONTINUES

Generation

Plant Load Factor

Overall, the generation segment continued to register much less than the programmed capacity through February and March 2013. However, in February, the northern region has shown a slight improvement by adding more than what was pro-grammed during the period. In March, the southern and North-ern region also showed improve-ment in capacity addition.

The plant load factor both in the nuclear and thermal power sector has shown improvement in February and March. While in nuclear achieved much better PLF than planned, thermal registered a per cent dip.

ALL INDIA REGION Feb-13 April- 2012- feb 2013 March 2013 APRIL 2012 - MAR-2013

program actual Actual Program Actual Actual

THERMAL 64508 59842.12 691563.55 71976 68492.39 760366.43

NUCLEAR 3025 2697.4 30160.34 3462 2707.21 32870.86

HYDRO 6857 5857.69 104936.47 7997 8677.77 13626.2

BHUTAN IMP 142 77.71 4775.1 167 51.52 4788.82

TOTAL 74532 68474.92 831435.46 83602 79928.89 911652.31

REGION WISE Feb-13 April- 2012- feb 2013 March 2013 APRIL 2012- March 2013

program Actual Actual program Actual Actual

NORTHERN REGION 19614 17293.14 240091.66 22243 21043.75 261077.43

WESTERN REGION 25221 23470.43 274627.02 28168 27093.98 301976.81

SOUTHERN REGION 16959 15617.49 173580.63 18822 18081.32 191754.11

EASTERN REGION 12068 11473.92 130461.75 13634 13108.43 143610.7

NORTH EASTERN REGION 528 542.23 7899.3 568 549.89 8444.44

PLANT LOAD FACTOR March -2013 in (%) Actual sasme month in 2011-12 APRIL 2012 - MAR-2013

program Actual program Actual Actual same period 2011-2012

Thermal 71.6 72.21 78.16 69.95 69.95 73.47

Nuclear 81.92 76.12 80.41 77.59 78.5 76.9

PLANT LOAD FACTOR Feb 2013 in (%) Actual same month in 2011-12

APRIL 2012 - FEB-2013

program Actual program Actual Actual same period 2011-2012

Thermal 71.17 71.12 79.01 69.78 69.97 73.03

Nuclear 79.25 83.97 81.59 77.15 78.71 76.57

40_41_ET_May13_Market data.indd 40 30-04-2013 15:14:39


MARKET DATA

Electrification Chart as on 31-01-2013

Sl. No. States/Uts

Total inhabited villages as per 2001

census

Villages electrified as on 31-03-2012 as per new definition

(Provisional)

Cummulative achievement as on 31-01-2013 as per new

definition

%age of villages electri-fied as on 31-01-2013

Unelectrified villages as on 31-01-2013 (V)

Numbers %age

Andhra Pradesh 26613 26613 100 26613 100 0

Arunachal Pradesh 3863 2917 75.5 2917 75.5 946

Assam 25124 24156 96.1 24156 96.1 968

Bihar 39015 35062 89.9 36056 92.4 2959

Delhi 158 158 100 158 100 0

Jharkhand 29354 26190 89.2 26190 89.2 3164

Goa 347 347 100 347 100 0

Gujarat 18066 18031 99.8 18031 99.8 35

Haryana 6764 6764 100 6764 100 0

Himachal Pradesh 17495 17466 99.8 17480 99.9 15

Jammu&Kashmir 6417 6304 98.2 6304 98.2 113

Karnataka 27481 27468 99.95 27468 100 13

Kerala 1364 1364 100 1364 100 0

Madhya Pradesh 52117 50678 97.2 50863 97.6 1254

Chattisgarh 19744 19181 97.1 19181 97.1 563

Maharashtra 41095 41059 99.9 41059 99.9 36

Manipur 2315 1997 86.3 1997 86.3 318

Meghalaya 5782 4589 79.4 4940 85.4 842

Mizoram 707 661 93.5 661 93.5 46

Nagaland 1278 896 70.1 896 70.1 382

Orissa 47529 37500 78.9 37500 78.9 10029

Punjab 12278 12278 100 12278 100 0

Rajasthan 39753 38246 96.2 38482 96.8 1271

Sikkim 450 450 100 450 100 0

Tamil Nadu 15400 15400 100 15400 100 0

Tripura 858 611 71.2 611 71.2 247

Uttar Pradesh 97942 87086 88.9 87086 88.9 10856

Uttaranchal 15761 15593 98.9 15593(^) 98.9 168

West Bengal 37945 37819 99.7 37841 99.7 104

Total(States) 593015 556884 93.9 558686 94.2 34329

Union Territories

A & N Island 501 339 67.7 339 67.7 162

Chandigarh 23 23 100 23 100 0

D & N Haveli 70 70 100 70 100 0

Daman & Diu 23 23 100 23 100 0

Lakshadweep 8 8 100 8 100 0

Pondicherry 92 92 100 92 100 0

Total(UTs) 717 555 77.4 555 77.4 162

Total 593732 557439 93.9 559241 94.2 34491

40_41_ET_May13_Market data.indd 41 30-04-2013 15:14:39


10 THINGS ABOUT...

It is also known as Coal Handling and Preparation Plant

Coal Preparation Plant (CPP) washes the incombustible material from the coal and prepare it for the end user

The demand for coal washing is expected to increase as the requirement for clean coal is on the rise

Earlier only cooking coal was being washed because steel making needs cooking coal

Washed coal reduces fly-ash disposal burden

Run of the Mine is the common washeries system that works in India which is part of the mines

More is the energy effi ciency of the washed coal is higher and are used by Thermal Power Plants

Coal Washing

The demand for coal washing is expected to increase as the The demand for coal washing is expected to increase as the The demand for coal washing

requirement for clean coal is is expected to increase as the requirement for clean coal is is expected to increase as the

on the riserequirement for clean coal is on the riserequirement for clean coal is

Coal passes through di�erent process before it is readied as a fuel for power production

Clean coal technology being practised in coal washeries in India, as pre-combustion clean coal technology, mainly focus on cleaning of coal by removing ash from coal

Use of washed coal in thermal plants increases the PLF from

Coal sampling, an integral part of the CPP, is done periodically either with equal intervals or per shipment basis

50%

70-90%

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