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INDIAS FIRST SOLAR WA-
TER TREATMENT PLANT
2222
HOW BPCL HEDGES ITSOPERATING COST
2222
CHINAS TOP 5 FACE HUR-
DLES
3333
WORLDS LARGEST DAM
COMPLETED
3333
SELCO SOLAR: A SOCIAL
ENTERPRISE
4444
WORLDS FIRST GREEN
CRUDE FARM
4444
Inside this issue:
Newsletter DateVolume 1, Issue 1
Energy Times Energy Times
In This issue
P.1 Huge Investment in Power System P.2 Indian Industry Trends
P.3 Global Industry TrendsP.4 Start-ups
Volume 7
No.-3October 2012
India to connect the Southern
Electricity Grid to the na-
tional network. Currently, all
regional electricity grids are
inter-connected except the
Southern.
This would facilitate the crea-
tion of the All India Synchro-
nous National Grid when all
the five grids Northern,
Eastern, Western, North East-
ern and Southern are inter-connected.
The setting up of national
highway of electricity grid
would be beneficial to all
regions by augmenting the
inter-regional capacity of
Southern region with rest of
To prevent another grid fail-
ure like those on July 30 and
31 that kept more than half of
the countrys 1.2 billion with-
out electricity, government is
spending huge amount to
strengthen and stabilize the
power system by its expan-
sion and upgradation. These
Power cuts are common
across swathes of India as the
country battles outages thatthe government shaves about
1.2 percentage points off an-
nual economic growth.
Recently government has
announced the Rs 1,930-crore
project that is undertaken by
Power Grid Corporation of
the grid. For instance, after
the Southern Grid is con-
nected, it would allow im-
port of electricity from other
regions to the Southern re-
gion during peak demand as
well as export of surplus
power from the Southern
region during off-peak de-
mand.
In addition, due to the exist-
ing and planned renewablegeneration capacity, the
Southern region would get
access to bigger market.
Moreover, it would help in
preventing massive black-
outs, like the ones that hap-
pened on July 30 and 31.
Page 1 of 4
A Monthly Newsletter by Energy Management Executives
Further Govt. plans to
spend 13.73 trillion rupees
to expand and upgrade its
power systems in the next
five years, most of which
will be led by generators
i n c l u d i n g s t a t e -
owned NTPC Ltd. (Indias
largest producer), Tata
Power ltd., Reliance Power
Ltd. (RPWR), Adani Power
Ltd. (ADANI) and LancoInfratech Ltd. (LANCI).
R e f : B l o o m b e r g . c o m
(Naresh Gupta, EMP)
Blackout Spurs huge investment in Power System
the lack of energy access for a
large part of the population,particularly in rural areas.
TERI will facilitate the access
and use of solar lighting de-
vices among Pakistans rural
communities after successful
interventions in Africa, South
Asia and South East Asia.
According to an estimate,
nearly 2.2 billion litres of
kerosene are used each year
for lighting purposes, while
about 5.5 million tonnes of
The Energy and Resources
Institute (TERI) in collabo-ration with LEAD Pakistan,
the Alternative Energy De-
velopment Board (AEDB)
Pakistan and the Buksh
Foundation will launch
the clean energy Lighting a
Million Lives (LaML) cam-
paign in Pakistan on October
12. This according to R.K.
Pachauri will enhance bilat-
eral relation where we face
common problems such as
CO are emitted into the at-
mosphere by burning ofkerosene. On the other hand,
each solar lantern in its 10-
year life replaces about 500-
600 litres of kerosene, miti-
gating about 1.5 tonnes of
CO. Marking the culmina-
tion of these events, a benefit
concert will also be held in
Pakistans culture hub, La-
hore, on the evening of Octo-
ber 13.
Ref.-The Hindu, 10th Oct(Surobhi Deb, EMP)
Lighting a Million lives campaign by TERI
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Page 2 of 4
Energy TimesThink outside the Barrel
Cabinet approved bail-out to cash-strapped
power distributors torestructure Rs 1.9 lakh
crore of losses they have
accumulated due to lack
of periodic tariff revi-
sions and free power
schemes.
State-owned oil compa-nies IOCL, HPCL & BPCL
are working on a plan to
revise petrol prices once
every week or in 10days but the hike isunlikely to be more that
a rupee per litre.
For the first time an In-dian University, RGTU
will have low-cost and
most efficient solar-
based futuristic power
plant on Cross Linear
Concentrated Solar
Power (CL-CSP). This has
30% efficiency against
the conventional 15%. A 40-percent fall in wa-
ter inflow to the hydel
reservoirs due to 24-
percent deficit in mon-soon rainfall, skyrocket-
ing consumption and in-
adequate forecasting
have pushed Kerala into
a huge power crisis. CIL has refused negotia-
tions with regard to sup-
ply of 15 per cent of
imported coal on cost-
plus basis as part of fuelsupply agreement (FSA).
MNRE has identified fiveuser industries which re-
quire low and medium
temperature heat (60 to
250 degrees) for instal-
lation of 45,000 square
metres of solar collectors
-panels that generate
heat from suns rays-by
March 2017.
CESC and Tata PowerLtd. has taken over main-
tenance & billing opera-
tions of JSEB.
Headlines Scan India keen to set up Wave Power plants
How BPCL recovers its operating cost by Hedging?
mobile industry with an in-
tention to create wave
power plants with a total
capacity of 100 MW.
SDE says it has developed a
unique sea wave power
Alongside the Indian gov-ernment, SDE Is-
rael will work
with organizations
such as the Indian
Energy Develop-
ment Agency, the
Electricity Regula-
tion Committee
(MERC) and the
PTC amongst others.
As part of the project, SDE
Israel will create a string of
partnerships with Indian
companies including auto-
plant for generating electric-ity from wave power at a
cost of only two cents per
kWh. As per Company
source, essentially it consists
of a series of buoys posi-
tioned on top of a breakwa-
ter which moves up and
down with the motion of the
waves. This generates hy-
draulic pressure which is
then transformed into elec-
tricity.
Ref.-renewableenergyfocus.com(Rituraj, EMP)
shit and will
be operated
by NGO So-
cial Aware-
ness, Newer
Alternatives( S A N A ) .
Around 750
families from the economi-
cally weaker section living
near east Delhi's Surajmal
Vihar will soon be receiving
solar treated potable water.
The first water
treatment plant
that operates on
solar technol-
ogy was inau-
gurated at theR a j k i y a
Pratibha Vikas
Vidyalaya and will treat
5,000 litres of waste water
daily.
The project was inaugurated
by chief minister Sheila Dik-
Under this, waste water
from nearby areas will be
treated to meet World
Health Organization stan-
dards using solar powered
panels and micro-ionisingwater purification processes.
This will provide each of 750
family with five litres of po-
table water daily.
Ref.-The Times of India, 2nd Sept
(Rituraj, EMP)
Delhi gets first solar water treatment plant
BPCL currently operates
within the international over
-the-counter swaps markets.
Most corporate have been
dealing with forex for quite
some time. Petroleum hedg-
ing has begun to be used
much more recently. Over-
all commodity hedging is
slightly on the lower end
compared to other asset
classes. The reason for this is
major contribution of service
sector in the Indian econ-omy. Foreign exchange has
The purpose of hedging pro-
gramme is to ensure the op-
erating costs for the refiner-
ies are covered. Petroleum
Companies take a view on
what could happen in the
markets and ensure that
their product portfolio does
not fall below a specified
target. To do this, BPCL
trades derivatives tied to
Singapore prices for oil
product cracks, freight and
bunker derivatives andsome precious metals.
needed to be hedged for a
while since physical exports
and imports have been in
foreign currency. So natu-
rally, currency hedging had
previously taken priority.
BPCL only do bilateral con-
tracts. They dont engage in
any cleared derivatives
(OTC or exchange), nor do
they use brokers. Their en-
tire focus is on OTC bilateral
trade with their regis-
tered counterparties.(Mahendra Kumar, EMP)
A Typical Wave Power Plant
A Solar based Water Treatment Plant
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Chinas five largest powergenerators own half of that
countrys power generating
assets. Faulty policies and the
rapidly changing global
economy have made it diffi-
cult for these companies to
fulfill the high expectations
arising from enactment of
the Power System Reform
S c h e m e o f 2 0 0 2 .
Chinas State Council issued
the Power System Reform
Scheme (Scheme) on April
12, 2002. The Scheme called
f o r r e s t r u c t u r i n g
(generation unbundling)
state-owned power assets
owned by the State Power
Corp. into five major power
generation corporations and
two power grid corporations.
By the end of 2010, these five
corporations represented49% of Chinas power gen-
eration capacity. Today, the
Top 5 face seemingly insur-
mountable problems that
threaten their continued exis-
tence.
The predicament faced by the
Top 5 is caused by three prin-
cipal factors:
Soaring Coal Prices: Ther-mal power accounts for
about 73.41% of the coun-
trys installed capacity.
Similarly, the Top 5 relied
on thermal power generated
by coal for about 80% of
their installed capacity in
2010.
Fuel costs for those plants
accounted for more than
70% of the total cost of gen-
erating electricity. When
coal prices fluctuate wildly,the Top 5s cost to produce
electricity also quickly
changes.
The Chinese government
gradually deregulated coal
prices beginning in 2002
and completely relaxed the
regulation of coal prices in
2005. In recent years, the
continuing rise of domesticcoal demand and interna-
tional crude oil prices has
sharply pushed up Chinas
coal prices. Since 2009, coal
prices decreased some-
what, although the price
has been very volatile.
Stagnant Electricity Mar-
ket Reforms: The electric-
ity generation sector has
been unbundled success-
fully, but the electricity
price reform portion of the
Scheme, part of the core
market reforms, has stag-
nated.
All electricity generators
sell electricity to the power
grid corporations at a fixed
benchmark price deter-
mined by the government.
C u s t o m e r p r i c e s
(residential and industrial)are likewise fixed by gov-
ernment tariffs. However,
the mechanism to allow
competitive bidding for
electricity sales by genera-
tion companies is still not
in place.
The fixed generation price
means that the generation
Chinas Top 5 Generating Companies Face Business Hurdles
Page 3 of 4
Energy TimesWind, water, Sun: Energy for the long run
Worlds Largest Dam CompletedChina in early July installed
the 32nd and final turbine of
its mammoth Three Gorges
Dam, virtually completing
the 1994-initiated hydro-
power project on the middle
reaches of the Yangtze River.
All that remains is a ship lift,
which should be completed
by 2015, authorities say.
The worlds biggest power
project, the 22.5-GW dam
accounts for nearly 10% of
Chinas total installed hydro
capacity of 230 GW, and it
figures prominently in Bei-
jings future ambitions to
retain hydropowers 20%
share in Chinas overall gen-
eration mix as it vies with
i t s n e i g h b o r s
for coal imports and grap-
ples with pressure to tamp
down carbon emissions.Ref: powermag.com
companies cannot pass oncost increases, such as the
rapidly rising price of coal,
to the power grid corpora-
tions or consumers in a
timely manner.
Unfavorable Economic
Conditions: To deal with
rising inflation, The Chi-
nese central bank (the Peo-
ples Bank of China, PBC)
has raised the loan interest
rate and deposit reserve
rate since early October
2009. The undesirable side
effects of the PBCs actions
were reduced funds sup-
ply, limited credit, and
soaring capital project fi-
nancing costs. As capital-
intensive enterprises,
power generation compa-
nies are facing a soaring
interest expenditure one x i s t i n g l i a b i l i t i e s
(commercial bank loans)
and unprecedented diffi-
culties in finding a means
to finance construction of
new power generation fa-
cilities.Ref: powermag.com
(Ajay Rawat, EMP)
(Deepankar Sharan, EMP)
The Three Gorg es Dam, the w orlds largest capacity hydroelectric powerstation, was completed and fully functional this July. The $50 billion projecthas 34 generators: 32 main generators, each with a capacity of 700 MW, andtwo plant power generators, each with capacity of 50 MW, bringing its totalcapacity to a stunning 22.5 GW. The project uses Francis turbines.
7/29/2019 energy times vol 3
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nergy Times Team
Welspun Energy Limited(WEL), leading renew-
able energy company
and IPP, has been se-
lected for the Asian
Power Award for being
one of the most innova-
tive power producers in
Asia for their 15 mega-
watt (MW) solar power
project at Anjar in Kutch
district of Gujarat.
Union Government isplanning to cancel nearly3 crore LPG connections
on the basis of report
submitted by Oil compa-
nies after identifying
names having two or
more gas connections.
Under fire for failing tomeet its production tar-
get, Coal India has
stepped up its supply to
the power sector in the
last six months and met
90% of the 173 million-tonne supply target for
the power sector.
India and Japan havereconfirmed the impor-
tance of civil nuclear
cooperation, on the occa-
sion of the 6th India-
Japan Energy Dialogue.
Kerala State ElectricityRegulatory Authority has
asked industrial consum-
ers to voluntarily observe
austerity in consumptionof electricity, reducing HT
& EHT consumption to
75% of peak and re-
stricted people from us-
ing power for displays &
hoardings, etc.
Headlines Scan
Page 4 of 4
Energy TimesCleaner Energy For a Cleaner World
Path of success always brings
with it difficult situations as
well and the success story of
SELCO has not been different
from this natures phenome-
non. But despite of initial
difficulties today SELCO
employs more than 170 peo-
ple across 28 energy service
centres in Karnataka and
Gujarat and have sold over
1,35,000 solar home
lighting panels.
SELCOs Life
Changing Model:
Busted Myth 1:
The seed came
from a street ven-
dor who once said
to Mr. Harish Hande (MD,
SELCO) Rs. 300 a month is
expensive, but Rs.10 a day is
fine. This inspired Mr.Hande to understand the
problem was more of financ-
ing for poor. Today SELCO
works along with Grameen
Banks, Cooperative Societies,
Commercial Banks & Finan-
cial institutions with innova-
tive loan schemes to suit the
In todays world the basic
needs of human being have
increased to four from ear-
lier count of three namely
Food, Shelter, Cloths and the
fourth being ENERGY.
SELCO Solar Pvt. Ltd. was
established in 1995 with its
headquarters in Bangalore,
Karnataka. They provide
sustainable energy solutions
to under-served people and
businesses. This Social En-
terprise was established to
counter a few myths:Myth 1 : Poor people cannot
afford sustainable technolo-
gies
Myth 2 : Poor people cannot
maintain sustainable tech-
nologies.
Myth 3 : Social ventures can-
not be run as social entities.
poor.
Busted Myth 2: They provide
training to the members of
family/business about how to
maintain the system. Apart
from that two visits in 6
months at each installation
helps to keep the systems
healthy.
Busted Myth 3: SELCO is a
for-profit organisation. They
achieved breakeven in 2001.
For their commitment to-
wards sustainable energy
solutions for poor, SELCO
has been awarded with Ash-
den Awards ( Green Oscars)
for sustainable energy in
2005 & 2007. Mr Harish
Hande has also been
awarded at various levels.
He received the Social Entre-
preneur of the year awardfrom Schwab Foundation.
Even after much accolades
and success SELCO remains
committed to Energy for
Poor.
(Nikhil Bhat , EMP)
SELCO Solar: A Social Energy Enterprise
ergy is turning algae intorenewable, low-carbon
green crude. Sapphire
has already developed
technology to produce
transportation fuels, in-
cluding 91-octane gaso-
line, 89-cetane diesel and
jet fuel. By 2014, the facil-
ity hopes to produce 100
barrels of green crude
per day.
Sapphire hopes its commer-
Worlds first Algae basedgreen crude oil production
developed by Sapphire En-
ergy Inc. is now operational.
When completed, the facility
will produce 1.5 million gal-
lons per year of crude oil
and consist of approximately
300 acres of algae cultivation
ponds and processing facili-
ties.
With only sunlight and car-
bon dioxide, Sapphire En-
cial dem-onstration
project will
m a k e
g r e e n
crude a
viable al-
t e r n a t i v e
fuel.
R e f : S a p p h i r e e n e r g y . c o m
(Shourabh Roy, EMP)
Worlds First Commercial Algae to Energy Green Crude Farm
Algae Farm atNew Mexico, U.S.