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November 2016

Volume 5 | Issue 7 | `100

www.InfralinePlus.com

The Complete Energy Sector Magazine for Policy and Decision Makers

CLIMATE CHANGE:
Can India move away from coal?

Lack of coal demand India needs to invest in


poses fresh challenge to Smart grid to be a
the Government low-carbon economy

Yoshiaki Inayama Anil Joshi Dr. U.D. Choubey Prashant Panda


Managing Director President Director General President, Solar Business
Toshiba JSW Power Systems Pvt Ltd GSPC LNG Ltd SCOPE ACME Solar
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Key Highlights
Sector Performance Review: FY 2015-16
Key Policy and Regulatory updates
Extensive Database of Sector specific Companies including
Manufacturers, Developers, EPCs, BFSIs and Consultants
Top management with contact details
Direct exposure to top decision makers and influencers

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Yearbook & Directory 2016 Oil & Gas

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Yearbook & Directory 2016 Roads
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InfralinePlus
The Complete Energy Sector Magazine for Policy and Decision Makers
November 2016 | Volume 5 | Issue 07

Editors Letter Editorial


Shashi Garg, Editor
Indias recent decision to ratify the Paris Agreement on Climate
Change has been applauded by one and all. India, which
accounts for 4.1% of the total global emission, now has a tough News Team
challenge ahead, that of balancing its growth needs and also Chetan Gupta
reducing its carbon emission intensity by 33-35% from what it
was in 2005, by 2030. The aim is to produce 40% of the total
electricity from sources other than fossil fuels. India is banking Analyst
on renewable capacity to meet its electricity requirement, and
Mohd. Arif
rightly so. However, it must not ignore other cleaner fuels in
the process, such as natural gas, hydro and nuclear, all of
which are currently grappling with various set of challenges.
Content Consultant
However, the moot question still remains - can India move away from coal? India has a News Monster
clear advantage when it comes to coal. The country has the 5th largest coal reserves in
the world and is set to surpass the US as the worlds biggest coal producer after China by
2020, as Coal India is in the process of ramping up output. Further, considering the fact
that India is one of the fastest growing economies in the world and more than 300 million
people are yet to receive power, India cannot afford to do without coal and needs to tread
cautiously as far as its long term energy strategy is concerned. Also, use of technology
in the form of ultra-super critical thermal power plants is an exciting option that needs Business Development
to be explored. Also to be taken into account is the growth in the manufacturing sector. Manoj Narang, Director
Manufacturing, currently, is undergoing slow growth. If the Indian economy gets back
Tel.: 0120-6799106 / 100
to the trajectory of 9-10 per cent annual GDP growth, electricity consumption could
see a sharp increase. This can lead to a catch-22 like situation as getting additional Email: manoj.narang@infraline.com
conventional capacity in time to meet power requirement might prove challenging, while
building hydel and nuclear power plants takes time.
Nonetheless, as India makes a transition from conventional to renewable generation, it
will throw up radically new challenges. Identification of the appropriate new technologies Advertisement
and their actualisation will be the need of the hour. Smart Grid is one such technology Ashwini Solomon
for the future. Smart Grids can turn out to be a key enabling infrastructure to develop
smart solutions to resolve Indias energy woes and address troublesome issues such Tel.: 0120-6799157/100
as massive transmission and distribution losses and power thefts. Expanding the use of Mobile: +91 9811708110
3
smart grid technologies will also be instrumental as India strives to increase generation Email: ashwini.solomon@infraline.com
from variable renewable sources. Smart grid systems can help integrate multiple, variable advertising@infraline.com
renewable energy sources.
Meanwhile, lack of coal demand continues to pose new challenges to the Government.
India had initially planned to increase its domestic coal production to 1bn tonnes by 2020
in light of the ever-increasing demand from the power sector. However, the demand from Circulation & Subscription
the power sector has declined significantly over the past one year due to falling demand Sneha Pandey
from state electricity distribution companies (DISCOMs). Owing to the bad financial Tel.: 0120 6799125
health of the DISCOMs, states have been resorting to power cuts and load shedding and
prefer to buy cheaper power from the Power Exchanges. The state DISCOMs have failed Email: sneha.pandey@infraline.com
to sign long term power purchase agreements since 2013 and the recent trend indicates
that the market is slowly but surely shifting to short term power purchase planning.
With a large proportion of the population still not having proper access to electricity, the
countrys large dependency on imported fuel and economic and social impacts due to Form IV
climate change has driven the Government to identify measures for harnessing renewable Periodicity of its Publication: Monthly
energy and energy efficient measures for improving the countrys energy security and Printers / Publishers /
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bring liquidity, fresh investments which could pave the way for a comprehensive market, Nationality Indian
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InfralinePlus

Contents
Editors Letter
3

Cover Story 33
Climate Change: Is India ready to move
away from coal?
On October 2, 2016, India made a strategic
decision to move away from coal as a source
of electricity in the long run by ratifying the Paris
Agreement on Climate Change. The deal aims to
cut greenhouse gas emissions by shifting away
from fossil fuels to limit global warming to well be-
low 2C compared with pre-industrial times. How-
ever, considering the fact that India is one of the
fastest growing economies in the world and more

31
than 300 million people are yet to receive power,
the decision to ratify the Agreement has raised
a question mark on the long term strategy of the
4 country to tackle the vital issue of energy security.

Power Coal
6 22
News Briefs p6 News Briefs p22
In Conversation: Yoshiaki Inayama, Managing Director, Expert Speak: Anil Attavar, Director, Way 2 India p25
Toshiba JSW Power Systems Pvt Ltd p10
In Depth: Lack of coal demand poses fresh challenge
In Conversation: PK Ranade, Chairman and Managing to the Government p28
Director, AMTL p13
Statistics p31
In Depth: India needs to invest in Smart grid to be a
low-carbon economy P16
Statistics p20

Topics Covered Topics Covered


Manufacturing Coal demand
Energy meters Thermal plants
Smart grids Coal pollution
November 2016
www.InfralinePlus.com

Oil and Gas Renewable


38 55
News Briefs p38 News Briefs p55
Expert Speak: Anil Joshi, President, GSPC LNG Ltd p41 Expert Speak: Prashant Panda, President, Solar
Expert Speak: Dr. U.D. Choubey, Director General, Business, ACME Solar p60
SCOPE p44 In Depth: RPO compliance by Obligated Entities need
Expert Speak: Neeraj Gupta, Director, iEnergy of the hour p63
Innovations Pvt. Ltd p47 Statistics p66
In Depth: Fourth consecutive reduction in Natural Gas
price p50
Statistics p53

Topics Covered Topics Covered


LNG terminals Energy storage
5
Natural gas pipeline infrastructure Grid stability
Natural gas prices RPO compliance

Expert Speak/Interview

PK Ranade Neeraj Gupta


Chairman and Managing Director Director
AMTL iEnergy Innovations Pvt. Ltd Off Beat
68
Expert Speak: Delhi Metro: A road map to sustainable
transport

Reports & Studies


73
People in News
Anil Attavar
Director
Harveen Kaur
PhD Scholar
74
Way 2 India University of Delhi
November 2016
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NewsBriefs | Power National


Government aims to achieve 100 percent power connectivity Centre tells state powers to push
reforms, unlock demand
or APL (Above Poverty Line) criterion when
it comes to providing power connections
in villages. During our deliberations, our
Power Secretary raised the issue of BPL
data, which according to him is not updated.
Upon learning about this issue, I have taken
a decision on the spot that States are free
to take into account any data they want to
implement rural electrification programme.
Do not discriminate between citizens, the
Stating that governments aim is to provide Minister of State for Power said. Stating The Centre has put the proposed amend-
electricity for all citizens irrespective of BPL that there is no need to discriminate among ment to the Electricity Act on the backburn-
or APL criterion, Union Minister Piyush Goyal poor, BPL, APL or any other type, he said, er, opting instead to work with state govern-
has said states are free to use any data they Our aim is to provide electricity to all. ments on measures to open up the power
want for implementing rural electrification Dont restrict yourself to BPL or APL. Once market and unlock latent demand through
project. Goyal stressed that there is no need electricity reaches to a village, electricity regulatory reforms. Do you see any work
to focus only on BPL (Below Poverty Line) should reach all houses. (reforms) suffer or stalled (in the absence of
the amendments)? Our initiatives are pro-
CERC panel pushes for customer-oriented transmission planning gressing well even without the (proposed)
amendments to the Act. We are working
A committee appointed by the Central with states on taking things forward, power
Electricity Regulatory Commission (CERC) minister Piyush Goyal said. The amend-
has suggested an overhaul in transmission ments seek to segregate the distribution
planning to facilitate the transfer of power that (carriage) and supply (content) businesses.
6 is going to take place, on economic principles. This is expected to bring competition by hav-
Further, transmission planning will have to be ing multiple distribution licences in an area,
aligned to meet customer aspirations rather giving consumers the freedom to choose
than sticking to the outdated model of plan- their supplier. The amendment Bill was in-
ning transmission system only associated with troduced in the Lok Sabha on December 19,
the long-term power purchase agreements 2014. It was referred to the Parliamentary
(PPAs). The committee said the transmission transmission corridor allocation be suitably Standing Committee on Energy. The panel
planning may be done on the basis of projected made. Five percent (5%) of each flow gate may submitted its report on May 7, 2015. The
load of the states and anticipated generation be reserved for day ahead collective transac- refreshed amendment Bill, incorporating the
scenario based on economic principles of merit tions which may be released for contingency committees recommendations, will have to
order operation. In a bid to promote power market in case of non-utilization of the corridor be cleared by the Cabinet before it can be
market, the committee has suggested that the by power exchanges. reintroduced in Parliament.
Power generation rises 2.1 percent in September, but demand remains low

Indias electricity generation for the month and 2014-15 is 9.3% compared to 4.6% for
of September rose about 2.1% year-on-year electricity procured from utilities, according
compared to flat growth in the month of to the Economic Survey notes released in
August compared with last year, shows data February 2016. Indias power demand is
from Central Electricity Authority (CEA). unlikely to grow beyond 6-7% over FY20,
This rise in generation, however, does not according to a MotilalOswal Securities.Indias
necessarily reflect a rise in demand for the power generation had remained flat year-
sector, which is hurt by over-capacity and a on-year in August hurt by improved rainfall,
lack of demand from distribution companies which slowed demand across the agriculture
(discoms). The slight rise in generation in sector. This has led to the overall sectors
September is not indicative of any rise in plant-load factors (PLFs) to decline by about
demand, said a brokerage analyst. The 2.1% 4.4% to 42.7% from same period last year, an
rise by itself does not mean anything, its a customers, who will pay on time. And this Emkay Global Financial Services Ltd report
marginal number. The basic problem still also impacts the volume growth, he said. said. With power deficit falling, merchant
remains that with the industry having shifted The compound annual growth rate (CAGR) of power tariffs are also down 23% year-on-year
to captive, there is a serious crisis of credible captive power generation between 2006-07 to Rs2.16 per unit.
November 2016
www.InfralinePlus.com

NewsBriefs | Power National


Transmission project worth Rs 50k crore to go under hammer in FY17 Govt likely to modify captive power
equity structure
said: Last year (2015-16), we bid out
transmission projects worth over Rs one
lakh crore out of which Power Grid Corp got
projects of Rs 56,000 crore and Rs 35,000
crore were awarded to private sector (on
tariff based competitive bidding). There has
been healthy growth of the transmission
sector during the 12th Plan (2012-17). After
April 2012, India has added 90,000 circuit
Transmission projects worth more than kilometres of transmission lines and 2.72 lakh
Rs 50,000 crore would be up for bidding MVA of transmission capacity. The auctioning Rules for captive power generating units
during the current fiscal to increase power of transmission projects assumes significance are likely to be made more stringent by
evacuation capacity in the country, Power in view of governments ambitious target of the government. The industrys worry is
Secretary P K Pujari said. Transmission adding 175 GW of renewable power capacity that this could mean higher costs. The
projects worth Rs 50,000 crore would be by 2022. The share of renewables in energy suggestion is on the equity structure of
auctioned. It could be even more than this mix, which is 6 per cent at present, will go up owners in such units. Most power produc-
during this fiscal, Pujari noted. He further to 40 per cent by 2030. ers own at least 26 per cent of the equity
and consume at least 51 per cent of the
Fuel surcharge increase makes power costlier power generated from a captive unit. The
rest is sold to entities in other states. The
Electricity consumers of Torrent Power Ltd structure, known as group captive, is to
will have to shell out a little more for the avoid the cross-subsidy charges levied on
power they consume. The private sector interstate sale. The modification proposed
company recently increased Fuel and Power is on the definition of ownership. Owner-
Purchase Price Adjustment (FPPPA), also ship in relation to a generating station 7
known as fuel surcharge, for October- or power plant set up by a company or
December quarter. The fuel surcharge has any other body corporate shall mean
been hiked by 10 paise per unit to 90 paise/ the paid-up equity share capital with full
unit from 80 paise per unit, which will rights, such as value, share of profit/divi-
translate into a burden of Rs 33 crore for dends, capital appreciation, voting rights,
30 lakh consumers of the company. Torrent transfer of shares, etc. In other cases,
supplies power to Ahmedabad, Gandhinagar (GUVNL) also received Gujarat Electricity ownership shall mean proprietary interest
and Surat. A power company is allowed to Regulatory Commission (GERC) approval to and control over the generating station or
offset any increase or decrease in fuel (coal recover additional fuel surcharge of 9 paise/ power plant; go the proposed changes, in
and gas) cost by way of FPPPA. Earlier, unit, which was due in January-March, 2016. the draft rules.
state-run Gujarat Urja Vikas Nigam Ltd
Banks eye takeover of debt-laden power plants

Lenders to several power projects have in Andhra Pradesh. Similarly, there is a


started talks with investors as well as possibility of Aadhunik (promoted by Ag-
state-run NTPC to take over these genera- garwals), which has a plant in Jharkhand,
tion units, in a stern message to promot- too being offered to the state-run power
ers who are reluctant to pay or want to producer. Apart from the public sector gi-
shift the burden of reviving the projects to ant, some global players were also looking
banks. The move comes at a time when at some of the generation assets, which
public sector unit SAIL is set to take over are troublesome for the lenders. The
the operations of Electrosteel Steels, lenders have approached us with some
which has massive debt. It is learnt that stalled projects and want us to complete
the plan has the backing of the finance or run them. We are open to the sugges-
ministry, which is keen to ensure that tion, said an NTPC executive. Although
banks be firm with errant promoters, while talks have been going on for taking over
showing flexibility wherever there is a pos- has been approached to take charge of stalled projects by NTPC for some time,
sibility of reviving projects if the manage- a few projects such as Athena Power in now firm proposals have been put forward
ment and lenders share the burden. NTPC Chhattisgarh in addition to some projects on the table.
November 2016
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NewsBriefs | Power States


MSEDCL to get state subsidy of Rs 992 crore for 5 years AP takes over Rs 7,376 crore debt
burden of Discoms
for next five years. The scheme primarily
aims at reducing the distribution losses, to
improve the quality of power infrastructure,
improve the billing efficiency, to reduce peak
load and to make provision for the required
power demand. Under the scheme, the
Maharashtra government will float bonds
of 75% amount of the midterm and small
The state government has signed a term debt of MSEDCL as on September 30
tripartite agreement with Maharashtra which comes to around Rs 4,960 crore in the Andhra Pradesh government has issued
State Electricity Distribution Company market. The amount collected from these special securities worth Rs7,376 crore
Limited (MSEDCL) power utility firm and bonds will be given as subsidy to MSEDCL under the UjjwalDiscom Assurance
Central government for the Ujwal Discom by the state. From this financial year to the Yojana (UDAY) Scheme to take over
Assurance Yojna. Under the scheme, next 5 year (till 2020-21), Rs 992 crore will the debt burden of power distribution
MSECDL will get state subsidy of around be given to MSEDCL as subsidy by the state companies (Discoms). The Union
Rs 992 crore to improve its infrastructure government in five installments. Government launched the UDAY scheme
in 2015 for operational and financial
turnaround of Discoms giving the States
Power charges up by 11 paise per unit in MP
a two year time time frame to take over
Get ready to pay more for electricity as the debt by 2016-17. The State tried to seek
energy charges have gone up by 11 paise more time but the Centre refused to
per unit from October in MP. This hike will extend the time-frame given under the
remain in force from October to December UDAY scheme. The government issued
2016 after which it will be revised for the bonds for an amount of Rs7,376 crores
8 next quarter. Madhya Pradesh Electric- based on competitive interest bids from
ity Regulatory Commission (MPERC) has the institutions.For the 70 per cent of
approved the increase in electricity tariff the amount, bonds were issued for an
from 4 paise per unit to 14 paise per unit. interest rate of 7.35 percent and the
In addition, consumers will have to pay one remaining at 7.35 and 7.37 per cent. For
paise as electricity duty. This means the consumers and a 1.48% rise for high-ten- the remaining amount of Rs880 crore,
power tariff will increase by 11 paise per sion supply line consumers which include the bids were rejected and they would
unit per month in the state and will cover industries. Till September, electricity cost be taken up later. The security bonds for
all categories of consumers domestic, from Rs. 3.65 per unit to 6.10 per unit to the above loan with six equated amounts
industrial, agriculture, rural etc. This is a domestic consumers while industrial con- would have to be redeemed at the end of
1.95% rise in electricity cost for domestic sumers paid 6.20 per unit. 10th, 11th, 12th, 13th, 14th and 15th year.

Demand from AP, Karnataka propels power purchase in southern region

The volume of power bought by Southern in September 2016. In the comparable


region in the Indian Energy Exchange period last year, they bought 184 million
increased 160 per cent year on year in units and sold 265 million units.Tamil
September 2016, driven by higher demand Nadu had good power availability helped
from Andhra Pradesh and Karnataka, data by wind power generation and supply
from the exchange reveals. Data from the from Kudankulam. That is why the buying
exchange shows that among the States volume was low. Because of higher
in the region, Tamil Nadu and Kerala sold power availability, the prices were also
more power, while Andhra Pradesh and low. Southern region power rates on the
Karnataka bought more power. Tamil exchange were Rs. 2.41 per kilo watt hour
Nadu and Kerala put together sold 77 during September 2016, down from Rs.
million units in September 2016 compared 6.18 per kilo watt hour in the same period
with 13 million units in the comparable last year. In September 2016, northern
period last year. Both the States in total the same period last year. Andhra Pradesh region rates stood at Rs. 2.73 per unit,
bought 70 million units in September and Karnataka bought 642 million units while rates of North-East, East and West
2016 compared with 88 million units in and sold 259 million units respectively stood at Rs. 2.35 per unit.
November 2016
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NewsBriefs | Power International


Australian alliance buys power grid;
Sri Lanka seeks investments from Qatar for power sector
Chinese bid blocked
on investment prospects in his country with
Qatar Minister for Finance HE Ali Sherif al-
Emadi. While apprising the Qatar Minister
of the areas where Sri Lanka is looking for
foreign investments, we gave him a picture
of the current economic position of our
country and also the sectors where invest-
ments could fetch good returns, Senaratne
explained. The Sri Lankan Minister said
he also spoke to the Qatar Minister on the Half of Australias largest electricity net-
Sri Lanka is exploring the possibility of at- prospects of attracting investments to his work has been sold to two local firms for
tracting investments from Qatari entrepre- countrys power sector. We have some A$16.189 billion (US$12.38 billion), after
neurs and government agencies in its health ambitious plans as well to capitalise on our Canberra blocked a Chinese bid citing na-
sector, Minister of Health Rajitha Senaratne favourable weather conditions to develop tional security. The Australian government
said. The Minister, who was on a two-day solar and wind energy projects to meet the has been concerned about investment
visit to Qatar, said he had held discussions growing power requirements. from Beijing and twice rejected the sale of
the countrys biggest private landowner
cattle firm S. Kidman & Co to Chinese-led
UAEs nuclear power project achieves $24.4 bln financing close
consortiums. The sale of 50.4 percent of
The United Arab Emirates nuclear energy Ausgrid, New South Wales (NSW) states
project has completed a $24.4 billion electricity network, for a 99-year lease
financing for its first plant with most of to the all-Australian consortium fund
the cash coming from state sources. In manager IFM and pension fund Australian
2009, Korea Electric Power Corporation Super means the transaction does not
(Kepco)-led consortium won a contract have to be approved by the Foreign Invest- 9
to build four 1,400 megawatt nuclear ment Review Board (FIRB). This is an
reactors that are being constructed at the outstanding result and it is great to see a
Barakah plant to meet the UAEs surging completely Australian consortium invest-
demand for electricity. Emirates Nuclear ing in this asset, NSW Treasurer Gladys
Energy Corp (ENEC) and Kepco jointly own Korea (Kexim). It also includes equity Berejiklian said. The NSW government
the Barakah nuclear energy plant project. commitments from Enec and Kepco is delighted to be entering into a partner-
The financing comprises direct loans of totaling $4.7 billion as well as a $250 ship with IFM and Australian Super given
$19.6 billion with $16.2 billion from the million loan provided by National Bank their demonstrated track record in the
Abu Dhabi government and another $2.5 of Abu Dhabi, First Gulf Bank, HSBC and management and long-term investment in
billion from the Export-Import Bank of Standard Chartered. infrastructure assets.

Bangladesh to build over 1,600 MW hydro projects

In a first major hydro investment deal and business. As per the agreement, the
between Nepal and Bangladesh, the two electricity produced from Sunkoshi river
countries have signed an agreement to would be evacuated to Bangladesh via
build two hydroelectric plants capable India through the BBIN economic corridor.
of generating over 1,600 megawatts Minister Thakali signed the agreement
of electricity in Nepal. Commerce after the Bangladeshi side expressed
Minister Romi Gauchan Thakali and his interest to invest in Nepals hydropower
Bangladeshi counterpart Tofail Ahmed sector, said Ravi Shanker Sainju, joint
signed the pact. The proposed projects secretary at the Commerce Ministry, who
are 1,110MW Sunkoshi II and 536MW had accompanied the minister to Dhaka.
Sunkoshi III located at Sunkoshi river Earlier, the Department of Electricity
in central Nepal. Both the countries have Development (DoED) had assumed the
agreed to develop the projects under responsibility of conducting the feasibility
the BBIN (Bangladesh, Bhutan, India, study of both the projects spread across
Nepal) initiative which was signed by four Kavre, Ramechhap, Sindhupalchok and
countries to facilitate the regional trade Sindhuli districts.
November 2016
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InConversation
Efficiency improvement of thermal,
nuclear expansion key for future
Yoshiaki Inayama, Managing Director, Toshiba JSW Power
Systems Pvt Ltd, feels that despite the surge in renewable energy
capacity, thermal sector will continue to maintain the lead in
Power Generation. Further, use of super critical technologies
would benefit India in providing more reliable and affordable
power. Excerpts:

What is your outlook on as projected by Government of India


the thermal sector in India we shall continue to develop and
considering that demand has apply Technologies such as Ultra
tapered off in recent times Super Critical (USC) and Advanced-
with no new capacity addition Ultra Super Critical (AUSC) that are
planned? efficient and environmentally friendly
Thermal power has always been the thus reducing carbon emissions. Yoshiaki Inayama, Managing Director, Toshiba JSW
main contributor to Indias energy We are confident that in near future Power Systems Pvt Ltd
10
requirement and would remain application of USC and AUSC
largest modality for ensuring Energy technology will be introduced by India target for next two decades, we
security. It continues to serve as to enhance the performance as well believe Thermal sector will continue
the cornerstone of the grid as it supporting capacity addition. to be maintaining the lead in Power
provides stable energy output and Generation because of instability
retains its position of providing How has thermal sector growth of renewable energy. Considering
reliable and affordable power. With been impacted by growth in environmental factor, efficiency
the introduction of Ultra Super renewable energy capacity? improvement of thermal, stability
Critical and forthcoming Advanced Indias power sector is one of the improvement of renewable and
Ultra Super Critical technology most diversified in the world with nuclear expansion will be keys for
having higher efficiency provides sources of power ranging from future. Toshiba group can contribute
environmentally friendly energy. conventional to renewable sources. in all these areas and TJPS can
To support Indias economic Today, of the 305.5GW installed contribute efficiency improvement
growth, the growth in electric power capacity, thermal power has the of thermal power generation by
is must and in consideration of largest contribution at 212.5GW, applying USC and AUSC technology
direct relation of GDP growth and followed by hydro 42.97 GW, for new construction including scrap
Power growth, the development of renewable energy 44.24 GW and and build and proper maintenance of
environment friendly fossil fuel based nuclear 5.8 GW. To cater to the operating plant utilizing Toshibas
power is necessary. increasing energy demand, the state of the art technologies. This
To keep the high quality Governments Twelfth Five Year Plan takes us a step further in our
equipment cost competitive, TJPS for 2012 to 2017 aims at boosting endeavor to contribute to Indians
is also continuously improving the generation capacity by 88.5 GW, of suitable power supply by its endeavor
manufacturing ecosystem for local which 80% of the capacity addition of continued innovations. We have
sourced components by developing is planned from Thermal Power capability and experience to apply
and expanding its vendor base in Generation. & execute such technologies for the
India. We appreciate and support In consideration of demand growth of industries for the next
increase content of renewable energy forecast to meet the GDP growth India.
November 2016
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What kind of new technologies


can India benefit from in the
thermal sector?
Since 2004, India applied use of
Super Critical technology and is now
at the advent of applying Ultra Super
Critical technologies with a vision
of applying Advance-Ultra Super
Critical technologies in near future.
This would benefit India to providing
more reliable and affordable power as
these technologies are more efficient.
We believe with application of such
technologies and development of
materials for such technologies, the
Make in India will get further boost.
In Japanese coal thermal plants,
the Operation and maintenance
is given high importance and
best practices are followed to
ensure that performance levels are
not deteriorated beyond global local chapters of Industrial Training
acceptance norms. We continue to Indias power sector Institute to impart on-site skill
bring plants very near to design is one of the most development training. In addition, 11
performance levels over the diversified in the many engineers at TJPS factory
designed life of plant by applying are trained by Japanese engineers
best techniques and practices. We
world with sources visiting India or are sent for a training
shall be applying similar practices of power ranging program at the Toshiba factory
ensuring better performance over the from conventional to in Japan. With our commitment,
designed life of Power equipment capability, and experience, we will
manufactured by us.
renewable sources. continue to contribute for the growth
Today, of the 305.5GW of industries for the next India.
What are your views on the installed capacity,
Make in India initiative of thermal power has the What are the key issues facing
the Government? How has it the power sector in India today?
impacted the power equipment largest contribution Please provide suggestions to
market? at 212.5GW, followed address them.
Governments Make in India by hydro 42.97 GW, While several initiatives have been
campaign has further reinforced taken by respective government
the conducive policies laid down to
renewable energy 44.24 agencies at Centre and also in
achieve a more reliable and stable GW and nuclear 5.8 GW States, we do believe that intent
power supply required for the of providing reliable, affordable
growth of critical industries. With Toshiba, long before the Power for All has not met the
this initiative, many multinational announcement of the Make in success as envisaged. We feel this
companies have set up base in India India campaign had identified and could be due to mismatch between
that not only will help in creating a established India as its manufacturing Generation capacity, Transmission
strong local manufacturing ecosystem base and development hub having network and Distribution network.
for components and equipments, but skilled manpower. Furthering our We also observe that Distribution
will also augment the technology commitment, TJPS started its own network is quite old which impacts
transfer and development of skills the Welding Training School at the the operation to large extent. We
youth of India deserves. Chennai factory, and tied up with the feel that integration of Generation,
November 2016
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InConversation

Transmisison, and Distribution with subcritical steam turbines and Supercritical and Ultra supercritical
applications of technologies in all generators at Anpara B thermal power Turbine and Generator with unit
that compliment each domain would plant. Today, Toshiba JSW Power capacities in the range of 250MW
help in overcoming technological Systems Pvt ltd (TJPS), with its to 1000MW, has already established
bottlenecks and reduce the losses and state-of-art manufacturing facility at itself as a dominant player in the
this lost energy will be available to Chennai to manufacture Subcritical, supercritical steam turbines and
the consumers. generators (STG) in the 800MW
In addition to that, carbon dioxide category in India, having won orders
emission reduction will be one Carbon dioxide for ten sets in all.
of the most important issues for emission reduction In line with the Groups Make in
power sector in India. In order to India commitment and its business
will be one of the
respond this challenge, efficiency strategy to keep the high quality
improvement of thermal, stability most important equipment cost competitive, TJPS
improvement of renewable energy issues for power recently shipped its first Made in
and nuclear expansion will be keys sector in India. In India steam turbine generator. The
for future. Toshiba can provide 800-megawatt steam turbine generator
solution for this challenge. order to respond this (STG) for Unit 2 of the Kudgi Super-
The other area which needs to be challenge, efficiency critical Thermal Power Station in
addressed is infrastructure which improvement of Karnataka state is Toshibas first
needs to be available for rapid large-scale generation system to be
development of Projects and also for
thermal, stability manufactured and assembled with
effective operations. improvement of locally procured parts and systems,
renewable energy and and tested in India. Toshiba JSW
Please share your presence in is geared up to contribute to the
12 nuclear expansion will
the power sector in India. governments goal to provide 24x7
Toshiba has a pedigree of over 60 be keys for future. electricity for residential, industrial,
years of expertise in power and a Toshiba can provide commercial, and agriculture use for
strong lineage of association with solution for this the next India.
India, entering the thermal power
market by supplying two 500MW challenge
For suggestions email at feedback@infraline.com
November 2016
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InConversation
India to be a strong growth
driver in global energy demand
Advance Metering Technology Limited (AMTL) is on a growth
path. The Noida-based company recently formed a strategic
tie-up with Grasslin Gmbh a subsidiary of US electrical product
MNC Intermatic Inc to bring energy efficient technologies in
India. Speaking to InfralinePlus, AMTLs Chairman and Managing
Director, P. K. Ranade, talks of why India is expected to be a
big market for energy efficient technologies in future and the key
growth drivers. Excerpts:

What is your outlook on the driver in global energy demand and


energy sector in India? What are all modern fuels and technologies are
the key growth drivers according expected to play a role.
to you? With a major push towards cre- PK Ranade, Chairman and Managing Director,
Energy consumption in India has al- ation of new infrastructure and urban- AMTL
13
most doubled since 2000 and the sec- isation, Indias energy requirements
tor has high growth potential. Indias will also see an upswing. Initiatives A target of 175 GW to be achieved
per capita electricity consumption has like Power for All and Make in by 2022 and Indias global com-
been continuously increasing over India will also act as strong growth mitment to increase share of non-
the years. However, the countrys drivers. fossil fuels to 40% in its electricity
per capita electricity consumption generation by 2030 are strong growth
is about 1/3rd of the global average. The company recently entered drivers for the solar EPC industry.
Further, India uses only 6% of the the solar EPC business. What I feel the industry is on a major
worlds primary energy, even though kind of opportunities are you growth curve and there are numerous
its houses 18% of the worlds popula- looking at in this segment? opportunities in this segment for EPC
tion. This offers tremendous scope for The EPC business will be a strong players. With falling solar tariffs no
growth in future. Coal, however, is growth area for us. We recently longer an exception but a trend, the
the most dominant fuel in the energy bagged a contract in Noida to develop need of the hour is to have a strong
mix and there is a strong government green building for an IT company on and robust EPC industry in India
push to increase share of renewable turnkey basis. The entire package for which can sustain delivery both in
energy in the energy basket. India has the project will be executed by us such terms of time and quality. The Solar
also recently ratified the Paris Agree- as civil and electrical works, design- revolution in India can only succeed
ment which underlines its commit- ing, engineering as well as water treat- if it is adequately supported by a
ment to a growing role for low-carbon ment, waste disposal and Solar PV. We strong EPC segment.
sources of energy led by solar and have developed strong in-house exper-
wind power. tise to execute solar turnkey projects Please share your manufacturing
According to reports, India will be which will serve as a one-stop shop plans for energy meters and
a major contributor to global energy providing complete range of building panels. What is the capacity of
demand by 2040. While energy products and solutions. AMTL is now your manufacturing facility? Is it
use is projected to decline in other ready to offer turnkey and retrofit so- sufficient to meet demand?
developed countries including China, lutions to IT business buildings across AMTL has invested in production
India will emerge as a strong growth the country. capacity infrastructure over the past
November 2016
www.InfralinePlus.com

InConversation

few years and has been able to deliver


a double digit percentage year on year
growth consistently. We are currently
in a position to deliver more than 2
million meters annually and at the same
time more capacity is being added to
cater to the demand generated by the
aggressive electrification schemes
of the Government. We feel that the
demand in the short term is signifi-
cantly more than the supply capacity
available. However, this will reach a
saturation point when the electrification
schemes reach their peak deployment
rate in the medium term.

How can energy audit and


energy management benefit the
industry?
Energy audit and energy management
is a critical area for organisations and
utilities. Given the strong empha- What are the technological
sis of the Government on energy Energy audit and energy offerings of AMTL that can
14 efficiency and energy conservation, management is a critical help India in its quest for clean
it is imperative to conduct regular technologies?
audits to assess the trends in energy
area for organisations We are an energy-centric organiza-
consumption as well as provide solu- and utilities. Given tion with focus on ensuring a greener
tions to reduce energy usage through the strong emphasis and cleaner economy with a three
use of energy-efficient products and pronged approach, namely Genera-
of the Government on
solutions. tion of power from renewable sources,
Energy Audit is the key to a energy efficiency and manufacturing of world class energy
systematic approach for decision- energy conservation, it monitoring devices and Energy Audit
making process in the area of energy is imperative to conduct Services. Recently, we have entered
management. It attempts to balance into a tie-up with Grsslin Gmbh,
the total energy inputs with its use, regular audits to assess Germany, (a subsidiary of Intermatic,
and serves to identify all the energy the trends in energy USA) to expand our presence in the
streams in a facility. It quantifies consumption as well electrical equipment market. After this
energy usage according to its discrete tie-up, we are now distributing elec-
functions. Industrial energy audit is an
as provide solutions to trical products across India such as
effective tool in defining and pursuing reduce energy usage time switches, light and temperature
comprehensive energy management through use of energy control solutions.
programme. To give you an example, the time
efficient products and
We provide energy audit services switch technology is unique for it
to organisations in various sectors solutions makes life easier, safer and helps save
such as industries, hospitality, IT, energy efficiently in residential, office,
BPO & Malls and office buildings. In addition, Perform Achieve commercial and industrial buildings.
The scope of the audit includes elec- Trade (PAT) assistance, support DIN- rail and universal time switches
trical energy audit, thermal energy for energy efficiency enhancement offer diverse use options both indoors
audit, Thermography of LT & HT projects and trainings to improve and outdoors, for central switching of
System, Power Quality Analysis and Energy Efficiency are some of the different rooms, vacation programs and
Water Audit. other focus areas. universal switching tasks in switching
November 2016
www.InfralinePlus.com

stations, in machine controls or specific footprints, rising income and smart lighting industry. The Unnat Jyoti by
solutions such as swimming pool or city development are some of the Affordable LEDs for All (UJALA)
sprinkler system controls. Similarly, key triggers for the growth of LED scheme which aims at replacing all
light controls offer the highest pos- inefficient bulbs with energy-efficient
sible degree of functionality, switch lamps has been instrumental in
separately for the desired situation in There is no doubt that bringing about this change.
residential, office, commercial and India has witnessed a AMTL has been developing its
industrial buildings and outdoors and stellar growth in the portfolio of LED products and has been
at the same time ensure noticeably active in the B2B segment so far. Retail
improved energy efficiency.
LED market in the last has been a part of our plans and we will
few years. A strong be introducing products in the market
India is projected to become the government support as a part of our retail expansion.
largest market for LEDs in India.
Please share your outlook and
coupled with introduc- AMTL also has presence in
growth plans in this regard. tion of innovative LED generation of renewable energy.
There is no doubt that India has lighting products by Please outline your existing
witnessed a stellar growth in the manufacturers has portfolio and growth plans in this
LED market in the last few years. A regard.
strong government support coupled resulted in reduction in AMT currently owns and operates
with introduction of innovative LED prices of these prod- 11.7 MW of wind power.This supplies
lighting products by manufacturers ucts, thereby offering energy to the state grid. We are cur-
has resulted in reduction in prices rently evaluating options for expansion
of these products, thereby offering
consumers with more either via a greenfield project in Solar
consumers with more options to options to choose from or Wind or a strategic acquisition of an 15
choose from depending on their needs depending on their existing project.
and preferences. Increasing focus on
energy efficiency to reduce carbon
needs and preferences For suggestions email at feedback@infraline.com
November 2016
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InDepth
India needs to invest in smart grid
to be a low-carbon economy

16

Existing distribution grid infrastructure is primarily designed for one-way flow of electricity
Smart grid systems can help integrate multiple, variable renewable energy sources

By Team InfralinePlus

Indias journey from an ageing trans- infrastructure to develop smart solu- energy sources by 2030; electric
mission & distribution (T&D) to a tions to resolve Indias energy woes, vehicles (to combat air pollution); and
smart grid-enabled network infrastruc- and address troublesome issues such 24x7 power supplies to all citizens
ture can have several enabling drivers. as massive transmission and distri- (Power for All scheme).
Clearly transition from conventional bution losses and power thefts. Smart The challenges of climate change
to renewable generation will throw up grids are crucial to some of the key and the continued growth of elec-
radically new challenges. Identification projects of the Government of India tricity demand (albeit at tepid growth
of the appropriate new technologies (GoI): 100 Smart Cities; 175 GW of rate) are putting increasing stress
and move to actualisation of the same installed renewable energy generation on the Indias electricity network
will be the need of the hour. capacity by 2022; cumulative 40% of infrastructure. The existing distri-
Smart Grids are a key enabling the total generation from renewable bution grid infrastructure is primarily
November 2016
www.InfralinePlus.com

Expanding the use


of smart grid tech-
nologies will also be
instrumental as India
strives to rapidly in-
crease generation
from variable renew-
able sources. Smart
grid systems can help
integrate multiple, vari-
able renewable energy
sources by directing
the power efficiently to
designed for one-way flow of elec- Information and Communication Tech- electricity end users
tricity and limited consumption in nology (ICT), more than ever before.
the home. With the growing imple- Expanding the use of smart grid Side Management (DSM), Advanced
mentation of large-scale, inter- technologies will also be instrumental Metering Infrastructure (AMI), and
mittent renewable energy generation, as India strives to rapidly increase enhancing the grid operation.
distributed generation and electric generation from variable renewable 17
vehicles, the operational limits of the sources. Smart grid systems can help Policy and Regulatory
network as it is currently designed integrate multiple, variable renewable Intervention
will be reached. energy sources by directing the power Government of India launched Na-
India is now at the point of tran- efficiently to electricity end users. tional Smart Grid Mission (NSGM)
sition to a new era where power gen- Smart grid technologies can act on March 27, 2015. The mission is an
erated from clean sources (renewable as an enabler for better integration institutional mechanism for planning,
energy) will be at a premium, networks of renewable sources into the grid, monitoring and implementation of
will need to be flexible to the incor- given their ability to reduce the policies and programs related to Smart
poration of new low-carbon tech- variability in the system by allowing Grid activities.
nologies and customers will demand the integration of renewables Under this mission, the Forum of
greater insight and control over their into diverse electricity resources, Regulator (FoR) notified the model
own consumption with greater use of including load control (e.g. Demand regulation on the (Smart Grid)

Figure 1: Drivers for Growth of Smart Grid Market in India


November 2016
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InDepth

Regulations, 2015. The objective of improvement in generation,


the model regulation is as follows transmission and distribution Renewable energy
(Excerpts from the regulations): licensee operations, manage the based mini-grids can be
(1) The objectives of these transmission and distribution a possible solution to
regulations are to enable networks effectively, enhance
integration of various smart grid network security, integrate
meet the electricity de-
technologies and measures to renewable and clean energy into mand of vast rural popu-
bring about economy, efficiency the grid and micro grids. lation of India which
addresses the climate
Smart Grids in Urban context change issues. Vari-
Smart Distribution Smart City ous renewable based
Advanced Metered
Smart Buildings & Homes mini-grid models have
Infrastructure (AMI)
Outage
Smart
emerged in India. They
Management System
(OMS)
Mobility/Transportation have could set examples
Power Load
Management (PLM)
Water Management of how mini-grids can
Power Quality
bring an end to energy
Management (PQM) e-Security
poverty in India
Integration of RE
sources e-Medical
(2) The objectives also include
Micro Grid
enhancing network visibility and
Electric Vehicles
access, promoting optimal asset
18 utilization, improving consumer
service levels thereby allowing
Smart Cities, Smart Grids, Smart Meters!
for participation in operations of
The announcement of the National Smart Grid Mission (NSGM) and the release
transmission licensees, distribution
of the Model Smart Grid Regulations by the Forum of Regulators (FoR) in 2015
have set the stage for a paradigm shift in Indias electricity distribution system. licensees through greater technol-
One of the commitments under the government missions (NSGM) / schemes ogy adoption across the value
(UDAY) is to make the installation of smart meters compulsory for all consumers chain in the electricity sector and
using more than 200 units of electricity a month. particularly in the transmission and
The UDAY scheme envisages fast track rollout of 35 million smart meters by distribution segment.
the end of 2019.
Smart metering infrastructure is expected to be a long-term asset for the Smart Grids in Rural context
utilities in India, while smart meter technologies are dependent on the rapidly Renewable energy based mini-grids
developing electronics design and manufacturing industry.
can be a possible solution to meet the
electricity demand of vast rural popula-
tion of India which addresses the cli-
mate change issues. Various renewable
based mini-grid models have emerged
in India. They have could set examples
of how mini-grids can bring an end to
energy poverty in India.
But mini-grids developed so far in
the country are facing several chal-
lenges due to high capital and oper-
ating costs, high tariff and inconsistent
revenue collection, low demand in the
villages, and bureaucratic delays etc.
In some states with its unique
geography and the current state of
economy and village habitations, grid
November 2016
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connectivity is neither feasible nor cost options like solar home lighting also to commercial loads like mills
effective. Therefore, off-grid solutions systems and off-grid lighting and oil presses.
like Decentralized Distributed Gener- products, mini-grids (depending on 5. RE mini-grid developers have
ation (DDG) facilities stand as an ideal their size) can provide electricity strong incentives to pursue
mode for supply of electricity. to not only residential loads like demand-side management, to
DDG can be based on either lighting and phone charging, but keep capital cost of generation
conventional or renewable sources equipment low.
and is usually implemented in remote In some states with 6. Development and operation of
villages where connectivity to the its unique geography mini-grids can create local jobs.
grid is not feasible or cost effective. and the current state The development of a fully-fledged,
DDG enables electricity generation at low-carbon economy with increasing
the local level using locally available
of economy and vil- deployment of renewable sources
resources ensuring reduced dependence lage habitations, grid will require changes to the existing
on external resources. Local distribution connectivity is neither transmission and distribution infra-
networks or mini-grids are set up over feasible nor cost ef- structure. Smart technologies will be a
a cluster of villages and powered by fective. Therefore, vital component of this transformation.
a local generating plant which may off-grid solutions like Increasingly, consumers expect reliable
be based on conventional fuels such supply, clean energy, responsive
as diesel, natural gas, fuel oil or on
Decentralized Distrib- service, new facilities and cost effi-
renewable energy such as wind energy, uted Generation (DDG) ciency from their utilities. Smart grids
solar energy, hydro power, and biomass. facilities stand as an can enable all that and more.
RE mini-grids have distinct advan- ideal mode for supply
tages over central grid extension and of electricity
other decentralized energy options For suggestions email at feedback@infraline.com
19
in providing access to reliable and
affordable electricity.
1. Compared to central grid
extension, RE mini-grids can be
less expensive due to lower capital
cost of infrastructure (depending
on distance) and lower cost of
operation by avoiding transmission
and distribution losses.
2. In countries with power shortages,
electricity supply through the
central grid, especially in rural
areas, may not be reliable. In such
regions, RE mini-grids that can be
designed and operated effectively,
can be more reliable than the
central grid in providing electricity
access and can ensure local energy
security.
3. Mini-grid developers have the
potential to access capital beyond
the traditional power sector, and
may be able to provide quicker
access to electricity than central
grid extension that may be prone
to bureaucratic hurdles and slow
implementation.
4. Unlike other decentralized energy
November 2016
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StatisticsPower
State/Utilities wise Cross Subsidy Surcharge for 2016-17 (September, 2016)
S. No. Name of State Name of Discom Category of consumers Cross Subsidy Surcharge (CSS)
HT-I Industry (11 kV) 1.66 INR/kWh
HT-II - Others (11 kV) 2.03 INR/kWh
HT-I Industry (33 kV) 1.44 INR/kWh
TSNPDCL
HT-II - Others (33 kV) 1.78 INR/kWh
HT-I Industry (132 kV and above) 1.34 INR/kWh
HT-II - Others (132 kV and above) 3.55 INR/kWh
1 Telangana
HT-I Industry (11 kV) 1.65 INR/kWh
HT-II - Others (11 kV) 2.03 INR/kWh
HT-I Industry (33 kV) 1.48 INR/kWh
TSSPDCL
HT-II - Others (33 kV) 1.81 INR/kWh
HT-I Industry (132 kV and above) 1.35 INR/kWh
HT-II - Others (132 kV and above) 1.77 INR/kWh
CESU EHT 143.58 p/kWh
CESU HT 95.58 p/kWh
NESCO EHT 126.03 p/kWh
NESCO HT 65.82 p/kWh
2 Odisha
WESCO EHT 126.68 p/kWh
WESCO HT 83.45 p/kWh
SOUTHCO EHT 191.03 p/kWh
SOUTHCO HT 141.02 p/kWh
EHT General 180 p/kWh
EHT Commercial 210 p/kWh
HT-I Industry (B) 50 p/kWh
3 Kerala KSEB
HT II General (A) 10 p/kWh
HT II General (B) 180 p/kWh
HT-IV Commercial 230 p/kWh
HT industry 0.93 INR/kWh
Bulk Supply (other than DS) 1.54 INR/kWh
4 Haryana DHBVN & UHBVN Railways (Traction) 0.12 INR/kWh
LT Industry 0.57 INR/kWh
NDS (HT) 1.46 INR/kWh
20 5 Gujarat UGVCL, MGVCL, PGVCL & DGVCL HT Category 1.45 INR/kWh
89 paise/kWh
(85 paise/kVAh for Large Supply General
Large supply
Industry and 87 paise/kVAh for Large
Supply PIU/Arc Furnace industry)
92 paise/kWh
Domestic supply
(85 paise/kVAh)
6 Punjab PSPCL
107 paise/kWh
Non-Residential supply
(98 paise/kVAh)
55 paise/kWh
Bulk supply
(52 paise/kVAh)
82 paise/kWh
Railway Traction
(80 paise/kVAh)
LIP - EHV 0.18 INR/kWh
LIP - 33 kV 0.13 INR/kWh
LIP - 11 kV 0.05 INR/kWh
ML - EHV 0.15 INR/kWh
7 Rajasthan AVVNL, JVVNL & JDVVNL ML - 33 kV 0.09 INR/kWh
ML - 11 kV 0.02 INR/kWh
NDS - EHV 0.49 INR/kWh
NDS - 33 kV 0.43 INR/kWh
NDS - 11 kV 0.36 INR/kWh
Rs. 1.16 per kWh (which is 90% of the
For 220 kV/132 kV consumers
computed value of Rs. 1.29 per kWh)
8 Chhattisgarh CSPDCL
Rs. 1.21 per kWh (which is 90% of the
For 33 kV consumers
computed value of Rs. 1.34 per kWh).
Joint Electricity
Regulatory Com- HT & EHT 0.22 INR/kWh
mission
DNH Power Distribution
9 For the State of
Corporation Limited
Goa and Union
Industry
Territories,
Gurgaon
For 132 kV consumers Rs. 0.69/kWh
For 33 kV consumers (other than HTSS) Rs. 0.78/kWh
SBPDCL
For 11 kV consumers (other than HTSS) Rs. 0.77/kWh
For HTSS consumers (33 kV& 11 kV) Rs. 0.40/kWh
10 Bihar For 132 kV consumers Rs. 0.69/kWh
For 33 kV consumers (other than HTSS) Rs. 0.78/kWh
NBPDCL For 11 kV consumers (other than HTSS) Rs. 0.79/kWh
For HTSS consumers (33 kV& 11 kV) Rs. 0.40/kWh
November 2016
www.InfralinePlus.com

S. No. Name of State Name of Discom Category of consumers Cross Subsidy Surcharge (CSS)
LT-II: Non-Domestic/Commercial 2.54 INR/kWh
LT-III: Industrial 1.15 INR/kWh
LT-VII: General 0.49 INR/kWh
LT-VIII: Temporary Supply 3.1 INR/kWh
HT-I(A): Industrial 2.39 INR/kWh
HT-I(B): Ferro-alloys 0.29 INR/kWh
SPDCL HT-II: Others 4.6 INR/kWh
HT-III: APTs, BSTs and Rly. Stns. 2.53 INR/kWh
HT-IV(A):Lift Irrigation 1.29 INR/kWh
HT-IV(B):Composite Water Schemes 0.11 INR/kWh
HT-V: Railway Traction 1.21 INR/kWh
HT-VI: Townships & Colonies 0.27 INR/kWh
HT-VIII: Temporary 3.97 INR/kWh
11 Andhra Pradesh
LT-II: Non-Domestic/Commercial 2.79 INR/kWh
LT-III: Industrial 0.60 INR/kWh
LT-VII: General 0.00 INR/kWh
LT-VIII: Temporary Supply 2.42 INR/kWh
HT-I(A): Industrial 2.07 INR/kWh
HT-I(B): Ferro-alloys 0.12 INR/kWh
EPDCL HT-II: Others 4.22 INR/kWh
HT-III: APTs, BSTs and Rly. Stns. 2.36 INR/kWh
HT-IV(A):Lift Irrigation 1.88 INR/kWh
HT-IV(B):Composite Water Schemes 0.91 INR/kWh
HT-V: Railway Traction 1.22 INR/kWh
HT-VI: Townships & Colonies 0.63 INR/kWh
HT-VIII: Temporary 0.00 INR/kWh
HT I (A): HT - Industry (Express Feeder) 1.49 INR/kWh
MSEDCL
HT I (B): HT - Industry (Non-Express Feeder) 1.09 INR/kWh
HT I: HT-Industry 0.2 INR/kWh
12 Maharashtra R-Infra
HT II : HT- Commercial 1.19 INR/kWh
HT I: HT-Industry 0.81 INR/kWh
Tata Power
HT II : HT- Commercial 1.12 INR/kWh
Large Industrial Power Supply EHT Consumers 1.95 INR/kWh
Large Industrial Power Supply HT 2 Consumers 2.05 INR/kWh
Irrigation & Drinking Water Supply Category - EHT
2.56 INR/kWh
Consumers
13 Himachal Pradesh HPSEB
Irrigation & Drinking Water Supply Category - HT 21
1.83 INR/kWh
Consumers
Bulk Supply Category - EHT Consumers 2.59 INR/kWh
Bulk Supply Category - HT Consumers 2.01 INR/kWh
HV-1 (Supply at 11 kV) 2.8 INR/kWh
HV-1 (Supply above 11 kV) 2.16 INR/kWh
HV-2 (Supply at 11 kV) 1.05 INR/kWh
DVVNL, MVVNL, PuVVNL, PVVNL HV-2 (Supply above 11 kV ) 0.63 INR/kWh
HV-3 (Supply above 11 kV ) 1.52 INR/kWh
HV-4 (Supply at 11 kV) 2.17 INR/kWh
HV-4 (Supply above 11 kV ) 2.36 INR/kWh
14 Uttar Pradesh HV-1 (Supply at 11 kV) 3.04 INR/kWh
HV-1 (Supply above 11 kV) 2.57 INR/kWh
KESCO
HV-2 (Supply at 11 kV) 1.2 INR/kWh
HV-2 (Supply above 11 kV ) 1.26 INR/kWh
HV-1 (Supply at 11 kV) 4.84 INR/kWh
HV-1 (Supply above 11 kV) 4.40 INR/kWh
NPCL
HV-2 (Supply at 11 kV) 2.97 INR/kWh
HV-2 (Supply above 11 kV ) 2.82 INR/kWh
HT industrial consumers Rs. 0.47/kWh
15 Uttarakhand UPCL
Non-domestic consumers Rs. 0.74/kWh
16 Jammu & Kashmir JKPDD Nil
Industry (Injection & Drawal Voltage 230 kV) 350.69 (Paise/kWh)
Railway traction (Injection & Drawal Voltage 230 kV) 312.99 (Paise/kWh)
Government Educational Institution Etc. (Injection &
262.61 (Paise/kWh)
Drawal Voltage 230 kV)
17 Tamil Nadu TANGEDCO
Pvt. Educational Institutions etc. (Injection & Drawal
304.29 (Paise/kWh)
Voltage 230 kV)
Commercial and Other (Injection & Drawal Voltage
523.28 (Paise/kWh)
230 kV)
HT-2a (66 kV & above) 118 Paise/unit
HT-2a (HT level-11 kV/33kV) 86 Paise/unit
HT-2b (66 kV & above) 253 Paise/unit
HT-2b (HT level-11 kV/33kV) 222 Paise/unit
BESCOM, HESCOM, MESCOM, HT-2c (66 kV & above) 128 Paise/unit
18 Karnataka
GESCOM & CESC HT-2c (HT level-11 kV/33kV) 96 Paise/unit
HT-4 (66 kV & above) 45 Paise/unit
HT-4 (HT level-11 kV/33kV) 14 Paise/unit
HT-5 (66 kV & above) 709 Paise/unit
HT-5 (HT level-11 kV/33kV) 677 Paise/unit
19 Assam APDCL HT II Industry category 0.54 Rs/kWh
EHT 1.9 INR/kWh
20 Meghalaya MePDCL
HT 1.75 INR/kWh
November 2016
www.InfralinePlus.com

NewsBriefs | Coal National


Government decides to factor in indexed imported coal prices into UMPPs Assocham seeks relaxation in long-
term PPA norm for coal

to use an index of prices of imported coal


from Indonesia, South Africa and other
coal exporting countries for calculation of
electricity tariff from such plants. While
the ministry has agreed to provide for the
escalation clause in bid rules, the final
go-ahead has to be given by the Cabinet,
it is learnt. This will safeguard companies
against unexpected changes in fuel costs
New ultra mega power projects (UMPPs) that have adversely impacted the existing Industry body Assocham has sought
based on imported coal may be insulated UMPPs based on imported coal. The relaxation in the norm that seeks
from uncertainties in fuel costs, with ministry had in December last year issued long-term power purchase agreements
the power ministry deciding to factor in draft bid guidelines for imported coal- (PPA) with distribution companies
indexed imported coal prices into tariff based UMPPs that contained provisions for (discoms) to get coal under fuel supply
for such plants. The ministry has agreed unforeseen events related to coal imports. agreement. In the current scenario,
CILs over capacity of coal production
India to overtake US as worlds biggest coal producer after China and thus removing the cap of long term
PPA would be beneficial for them and
India is set to surpass the US as the worlds also help increase the consumption
biggest coal producer after China by 2020, of coal as CIL may get the share of
as state-miner Coal India Ltd. ramps up demand of coal by the power plants
output to meet demand from domestic power who have not been able to sign a long
producers, according to BMI Research. The term PPA due to paucity of bidding
22 South Asian nations share of world output opportunities, Assocham Secretary-
will increase to 12.7% by 2020 from 9.8% General D S Rawat recommended in a
in 2016, BMI said in a report. It cautioned letter to coal secretary Anil Swarup.
that the country will still fall short of the He, however, did not highlight the
governments ambitious coal output target number of power plants or the capacity
and domestic demand will continue to exceed countries, including the US, are moving faster that was suffering from this issue.
production up to 2020. India, where coal toward replacing the fuel with cleaner energy Explaining the need for the same,
accounts for 61% of electricity generation sources such as natural gas to meet tougher Assocham pointed out that there was
capacity, is seeking to reduce imports of emissions standards. India plans to expand no such condition at the time when
the fuel by boosting domestic output. India coal output to 1.5 billion metric tons by 2020 such projects were conceptualized and
foresees coal as a dominant source of energy from an estimated 634 million tons in the investments were made in these power
at least for a couple of decades, while other year ended 31 March. plants.

JSPL reopens Mozambique mines to tap rising coking coal price

Jindal Steel and Power Ltd (JSPL) has as metallurgical coal, has risen by more
reopened its mines in Mozambique from 1 than 150% since August. JSPL expects
October as the price of coking coal, used access to own coking coal will also give
in steel production, has surged because of its steel output a competitive edge. India
supply cuts in China. The company, which has no coking coal reserves and the entire
is in the process of selling some of its requirement is imported from markets
assets in the power sector to reduce over such as Australia, Canada and Africa. While
Rs40,000 crore of debt, expects the rise ago period, mainly on account of nearly flat the increase in the price of coking coal in
in coking coal prices to help improve the demand for steel and high financing costs. world markets is welcome news for miners,
performance of its mining operations in Ravi Uppal, managing director and group passing on the increased cost of coal may
the second half of the year. JSPL, which chief executive officer of JSPL, said its not be easy for domestic steel producers in
has mining, steel, power and construction unit JSPL Minerale Mozambique LDA has the face of cheap steel imports from China
businesses, had reported a consolidated restarted mining operations at the Chirodzi and from countries with which India has
loss of Rs1,082 crore for the June quarter, Mines in Tete Province in Mozambique as free-trade agreements such as Japan and
double the loss it had reported in the year the global price of coking coal, also known South Korea.
November 2016
www.InfralinePlus.com

NewsBriefs | Coal National


Chhattisgarh registers fivefold increase in mineral revenue CIL coal linkage likely for NTPC
Pudimadaka power project

ore etc. According to the report of the


states mining directorate, Chhattisgarh
had produced minerals worth about Rs
20,000 crore in the financial year 2015-16
and earned a revenue of Rs 3,709 crore.
The revenue earned was almost five times
the revenue collected by the state from
minerals in 2005-06. With the increasing
Revenue from minerals in Chhattisgarh has graph of mineral production, the state has
increased by fivefold over the past decade. registered a growth of almost twofold in the
The mineral-rich state contributes 16 per past six years. Minerals valuing Rs 10,674 In a major boost to the 4000 MW NTPC
cent of the minerals produced in the country. crore were produced during 2008-2009. The thermal power project in Pudimadaka in
The state has been endowed with 28 types production of black gold tops the list. The Andhra Pradesh, the Union Power and
of minerals, which include diamond, coal, state has 16.36 per cent of the total deposits Coal Minister Piyush Goyal has assured
iron ore, limestone, bauxite, dolomite, tin of coal, with a 41,442 million tonnes reserve. fuel linkage from CIL for the project.
This project was earlier proposed to
Coal import declines 6 pc to 16 mn tonnes in September be developed by using imported coal.
This announcement comes following
Coal imports fell 6 per cent to 16.1 million a review meeting of various power
tonnes in September over the same month projects by Piyush Goyal and Union
last year owing to higher prices of the fossil Information Minister M Venkaiah Naidu.
fuel in the international market. Coal import While reviewing the progress of other
(all types of coal) in September 2016 stood projects, the Government said the
at 16.01 million tonnes (MT) (provisional) Mannavaram Power Projects Equipment 23
against 17.10 MT in September 2015, Vinaya Manufacturing Plant will not be shifted
Varma, the newly-appointed CEO of mjunc- and efforts would be made to ensure
tion services, an online procurement and more business, the Power Minister
sales platform floated jointly by SAIL and assured. Venkaiah Naidu convened a
Tata Steel, said. He further said that higher meeting with Goyal and Minister of
prices in international markets appear to be ficient stock of domestic coal is available in Heavy Industries Anant Geete, and
discouraging Indian buyers from importing the country. In addition, the demand for coal officials of NTPC, BHEL and NTPC
coal as they expect rates to soften and this in India is not rising as per expectation as BHEL Power Projects Ltd (NBPPL),
is the primary reason for falling inward ship- overall economy is not growing in the way it coming up at Mannavaram in AP to
ments in recent months, including September was expected to grow, leading to lower-than- review their progress.
2016, he said. Varma further said that a suf- expected demand for steel and cement.

World Coal Association exhorts India for sustainable use of cleaner coal

The World Coal Association (WCA) has technologies to reduce emissions. For the
urged India to work towards deployment international coal community, India is of
of cleaner coal. The global industry high strategic importance and therefore,
association for coal has said that in order WCA has decided to convene its annual
to support a sustainable development board meeting in New Delhi, this year.
of the resource, the worlds third largest According to the guidance given by the
energy consumer, India, will require partnership with Coal India, NTPC, and International Energy Agency (IEA), by
financial, technological and other support other public and private enterprises. As 2040, Indias energy consumption will
internationally. Benjamin Sporton, Chief India is going to rely on coal to power up surpass that of the Organisation for
Executive, WCA, said: We are excited its economy in the decades to come, I Economic Cooperation and Development
to be in India and have come here to think it is important to look for ways to (OECD) Europe, and would be rapidly
observe and take back key insights. As mine coal in a sustainable, efficient and approaching that of the US. Like other
an international organization, we can safe manner, as well as look for ways to countries before it, the countrys economic
support the sustainable development of utilize it through modern high-efficiency, growth will be still largely powered by
Indias coal, mining and power sectors in low-emission (HELE) power generation coal.
November 2016
www.InfralinePlus.com

NewsBriefs | Coal International


US power sector coal consumption to near 1984 levels in 2016: EIA Australian coal prices reach $100
per tonne since 2012

is projected to decline 21.7% from 2015. In


2017, the agency estimates US coal produc-
tion will climb to 754 million st, partly due
to higher natural gas prices. Growth is pro-
jected across all basins, led by growth in the
Interior region, at 7%. The Interior region
includes the Illinois Basin. Electric power
sector coal consumption is projected to total
Coal production in the US is projected to 673 million st in 2016, down 9% from last
total 725.9 million st in 2016, down 19% year, which would be the lowest annual total
from last year, according to the Energy since 1984. In 2017, power sector coal con- As Australian thermal coal prices hit
Information Administrations monthly Short sumption is projected to total 684 million st, $100 per tonne recently for the first
Term Energy Outlook. The agency expects up 1.7%. For 2016, the agency expects US time since 2012, the fuels rally is now
production to fall across all basins, particu- coal generation to total 30%, compared with among the commoditys top-three
larly in the western US, where production 33.2% last year. bull-runs on record. The bull-run rivals
the 2011 Fukushima nuclear meltdown
Indonesia says coal price rally to extend into Q1, boost mining revenues and Australian mining flood spike, and
the 2008/09 financial boom and bust.
The current rally in thermal coal prices With Australian New castle spot cargo
could extend through to the end of the prices for November, up almost 100
first quarter of 2017, an Indonesian mining percent since June to $100 per tonne,
ministry official said, helping cash-strapped their highest since 2012, traders and
miners boost revenues in Southeast Asias analysts say a bust is inevitable. Of
24 largest economy. Coal prices sank 70 course its not going to last. Rising prices
percent over 2011 and 2015 amid worries are encouraging Chinese miners to raise
imports by top consumer China had peaked output and the government, seeing how
on measures to combat pollution. However, much prices have risen, has backed down
contrary to expectations of further falls, somewhat and asked for an increase
prices have rallied by about 75 percent this coal and minerals sector this year, Coal in production, said Ralph Leszczynski
year with producers trimming supply due to and Minerals Director General Bambang of shipping brokerage Banchero Costa.
concerns over demand. Indonesia, where Gatotsaid. In 2015, the worlds top thermal However, many believe prices could keep
thousands of coal mines went out of busi- coal exporter had missed its target by 43 rising until the end of the year or possibly
ness as prices cratered, is now confident of percent. Right now were almost at 50 per- into early 2017 as the winter season fuels
achieving its target of 30.11 trillion rupiah cent. With the rise in coal prices hopefully demand and miners take time to bring on
($2.32 billion) in non-tax revenue from the well reach it, Gatotsaid. more production.

World Bank money is helping to finance Asias coal boom

A coal boom in Asia could destroy any boom Kim describes as a disaster has been
chances of meeting global climate goals, quietly enabled by the International Finance
World Bank Group President Jim Yong Kim Corporation (IFC), the private sector arm of
pronounced recently said. If all the new coal the World Bank Group. After two years of sift-
plants on the books earlier this year were ing through a commercial banking database,
constructed especially in Asia it would be researchers found the IFC has financial ties
impossible to stay below two degrees, he to 41 new coal projects launched since 2013.
said, referring to the temperature change tar- These projects include highly controversial
get set in the Paris Agreement. Slowing the power plants like the Mahan plant in India,
growth of coal fired power plants is perhaps the proposed Lanao Kauswagan power
the most urgent task for global leaders try- station in the Philippines and the Rampal
ing to curb climate change, Kim said, empha- coal plant in Bangladesh, each of which has
sizing the need for a greener finance sector. rare circumstances. Meanwhile, according prompted protests by local activists who fear
Since 2013, the World Bank Group limited to a report led by US-based NGO Inclusive the projects will cause severe environmental,
its own financing of new coal projects to Development International, the Asian coal social and human rights problems.
November 2016
www.InfralinePlus.com

ExpertSpeak
Oxygenation, Bioremediation set to
play significant role in water treatment
Anil Attavar, Director, Way 2 India, feels that as India moves
ahead on its plans on urbanisation, water treatment will be
a key concern. The country is grappling with the problems
encountered in maintaining, preserving and nurturing
water bodies that are under the onslaught of urbanization
and industrialization in the cause of economic growth. In
this regard, oxygenation and bioremediation can play an
important role in mitigating these problems.

A country can afford to neglect its Oxygenation and


water sources only at its own peril. Bioremediation
The overall scenario in Indian water It is in this backdrop that oxygenation
sector demands state of the art waste- and bioremediation can prove to
water treatment technology, achieving be an effective method to treat Anil Attavar, Director, Way 2 India
best results with ease of operation, and preserve water 25
economy and safety. Water, one of the stagnating in Rapid
most important substances on earth, lakes, tanks, urban- The treatment involves oxy-
sustains life. Natural resources like ponds and genation or bioremediation, or a
rivers, lakes, tanks, ponds and such other such
ization is combination of both, depending
other water bodies play a significant countless creating tre- on the quality of the water to be
role in our lives. The burgeoning water bod- mendous stress treated. The primary application
population of our country is increas- ies in our on existing in the treatment of wastewater is
ing pressure on the environment cities, towns infrastructure achieving 100% DO (Dissolved
water in particular - and the primary and villages. Oxygen). By achieving this, the
concern is to conserve and preserve, The technology BOD (Biological Oxygen Demand)and
in good condition, this most precious has been accepted COD (Chemical Oxygen Demand) are
natural resource. Rapid urbaniza- and shortlisted by National Mission for reduced, enabling the slurrys microbes
tion is creating tremendous stress on Clean Ganga, for its Namami Gange and solids to exist in a balanced atmo-
existing infrastructure. India is in dire project. This technology is all set to sphere resulting in a neutral effluent.
need of water management, with 17% play a significant role in water treat- One of the most significant con-
world population against 4% water ment, as the countrys water experts tributors to quality of life is air that
availability. Increase in water treat- grapple with the problems encountered does not stink, and the SAR reactor
ment facilities using efficient water in maintaining, preserving and nurtur- can achieve this with minimum fuss.
treatment technology is the only op- ing water bodies that are under the The process of treatment is simple. The
tion. Most of the water bodies in our onslaught of urbanization and indus- stagnant water is treated by aeration,
cities and towns are in a state of ne- trialization in the cause of economic in which nano bubbles carry oxygen
glect (see photographs). Many water growth. While the aerator alone would to the water, achieving full aeration in
bodies which were flourishing - and need to be imported (being patented), one pass through the unit. Given the
attracted people a few decades ago - all other components of the system simplicity of the equipment, very little
are in despicable condition, shunned would be procured locally, to maxi- operator training is required. Fish can
by general public - and are causing mize indigenization and give a fillip thrive and foul odours are removed,
health and hygiene problems resulting to the Government of Indias Make in eliminating negative community
in several diseases and ailments. India initiative. impact. The operation can if required,
November 2016
www.InfralinePlus.com

ExpertSpeak

achieved. Additionally, the power


consumption is very high as more
power is required to throw water into
the air than the other way round. In
SAR aerator, the aerator internally
disperses air immediately, reaching
up to 130% of oxygenation through
nano and microbubble contact with
the water in the SAR Aerator. Full
aeration is achieved in one pass
through the SAR Unit.
The aerator achieves high
throughput as the water is fully aerated,
passing through the aerator in frac-
Dead Fish at Ulsoor Lake, Bengaluru
tions of a second. The process requires
be monitored remotely, using wireless very low input pressures of water and
communication systems. The advantages to the air while achieving high throughput
The equipment comprises broadly, user are manifold. The capacity. Immediate and consistent
an aerator, a pump and a blower, apart equipment requires very oxygenation of the entire water mass
from an electrical panel, switches is achieved while being distributed
and interlocks. Efficiency of aeration
little maintenance, as throughout the water mass. The small
depends on bubble size and consis- there are no moving parts, size of the aerator requires minimum
tency. Smaller the bubbles, more adding to the safety of footprint and the equipment can be
26 efficient the transfer of oxygen. Nano the operating personnel, very easily retrofitted.
and micro size bubbles are pro- during operation. Con- The advantages to the user are
duced consistently, and much more structed with stainless manifold. The equipment requires
efficiently than traditional aeration very little maintenance, as there are
devices. Traditional aeration devices
steel and high density no moving parts, adding to the safety
like fountains, sprays and sprinklers polyurethane, possibility of the operating personnel, during
are grossly inefficient due to the large of corrosion, abrasion operation. Constructed with stainless
particlesize, having a small surface and contamination do not steel and high density polyurethane,
area, leading to less absorption of exist. The simplicity of possibility of corrosion, abrasion
oxygen. Moreover, the droplets of the equipment leads to and contamination do not exist. The
water fall locally in the immediate simplicity of the equipment leads to
vicinity of the fountain or the spray,
requirement of very little requirement of very little operator
and homogenous oxygenation is not operator training training. The process eliminates
anaerobic conditions and removes foul
odours, thus avoiding negative com-
munity impact. The system finds appli-
cation in areas of aeration, flocculation
and bio-remediation. The process can
be monitored remotely using wireless
communication systems.
The technology also finds application
in Bio-Remediation. Pollution has been
occurring in nature since the beginning
of time, and nature, has, in the past, been
able to mitigate pollutions detrimental
effects by producing an offsetting set
of circumstances so as to naturally
control the pollution. A babbling brook
A picture of neglect undergoes natural bioremediation. The
November 2016
www.InfralinePlus.com

physically abused, have lasted over nine


years of continuous use.

Case study - Calgary Airport


Several case studies are available,
prominent being the Calgary Airport
case where ethylene glycol, used for
de-icing aircraft during cold weather,
was accumulated in a pond upwind of
the main terminal, causing the pond to
become anaerobic in spring, emanating
foul odours. Removal of ethylene glycol
entails very expensive chemical and
mechanical methods like ozone treat-
ment and distillation. It was therefore
necessary to introduce a bacterium which
secreted surfactants in order to produce
A SAR 100 GPM Aerator
a froth cap on the pond. An oil eating
bacteria was introduced into the liquid
flow of the aerator through a dosing
pump, and a froth cap was produced. The
odour emitting from the pond was elimi-
nated. The froth cap covered the entire
oil slick. When the froth cap was pushed 27
aside where the oil slick had been, there
was no longer an oil slick. Professors of
Biology at the University of Calgary con-
curred that the oxygenation of the froth
Before: (using a traditional venture aerator) After: (using SAR Aerator after 30 days of operation) cap would greatly enhance bioremedia-
tion, as the largest inhibitor to aerobic
babbling occurs when small waterfalls, gallons of water per minute. Applications bacteria bioremediation is simply - lack
stones or any obstruction in the flow for this technology are endless as bacteria of oxygen.
break up the water into droplets exposing eat all sorts of pollution. Thus, SAR aeration, in conjunction
the water surface to air. These droplets Installation of the aerator requires no with aerobic bacteria addition, results in
absorb oxygen from the air. Microor- special skills other than a qualified elec- consumption of organic compounds by
ganisms (bacteria) of all kinds live in trician. Each unit comes skid mounted forming a froth cap, which is the most
the water. They need oxygen to live. As with an electrical panel containing all effective method of distributing biore-
long as the brook is babbling, the water is the relevant breakers, switches and mediation bacteria on bodies of water.
being oxygenated, and the bugs can live. communication devices. The assembly This technology has also been
These bugs eat the pollutants in the water. requires no special skills. Since there extremely useful in addressing odour
Without such babbling or movement are no moving parts to the aerator itself, problems in mushroom farms, resulting
of water, the oxygen is not replenished. service is extremely easy. The only in the added advantage of huge savings
Without oxygen the bugs die and the service required for the aerator itself in power costs, due to reduced power
pollutants build up, creating a high BOD is occasional cleaning of the internal consumption. Apart from thousands
(Biological Oxygen Demand) which liner. This requires removal of the liner, of dollars save in power, millions of
results in stagnation and odour, and con- replacing it with a clean one and putting dollars would have been spent had the
taminating drinking water sources. the unit back into use. This operation mushroom company been forced to
For the first time, by using this takes approximately 15 minutes. If con- relocate due to negative community
technology,large volumes of water can be tinuous operation is required, a second impact caused by its activities.
bio-remediated. 10 EBRs, which fit into liner should be on hand for immediate
a 10 foot by 10 foot space can oxygenate, replacement. The stainless steel liners The views in the article of the author are personal
add bacteria and nutrients, to 20,000 are cleaned periodically, and if not For suggestions email at feedback@infraline.com
November 2016
www.InfralinePlus.com

InDepth
Lack of coal demand poses fresh
challenge to the Government

28

SEBs of Maharashtra, Gujarat and Tamil Nadu have become power surplus
Around 21-22 GW of coal-based generation capacity is currently stranded without a PPA

By Team InfralinePlus

The Indian government seems to have Owing to the bad financial health of the advent of the Ujwal Discom Assurance
backtracked on its initial target of DISCOMs, states have been resorting Yojana (UDAY). UDAY seems a more
increasing 1bn coal production, seeing to power cuts and load shedding and comprehensive scheme than any other
the lack of demand from all sectors, prefer to buy cheaper power from the past schemes as it talks about bringing
including the power sector. India had Power Exchanges (PXs). The state efficiency and transparency in the
initially planned to increase its domes- DISCOMs have failed to sign long workings of DISCOMs. Various state
tic coal production to 1bn tonnes by term power purchase agreements (LTP- generating companies (GENCOs) have
2020 in light of the ever-increasing de- PAs) since 2013 and the recent trend been requesting Coal India (CIL) to stop
mand from the power sector, especially indicates that the market is slowly but the coal supply for their power plants
from the Independent Power Producers surely shifting to short term power due to less demand from the state and
(IPPs). However, the demand from purchase planning. their respective DISCOMs.
the power sector has declined signifi- Due to increase in DISCOM losses Coal Indias expansion plants are
cantly over the past one year, due to over the past two years, there have part of Indias overall efforts to ensure
falling demand from state electricity been definitive steps undertaken by energy security by cutting crude oil
distribution companies (DISCOMs). the Ministry of Power (MoP) with the imports by 10 percentage points over the
November 2016
www.InfralinePlus.com

the energy deficit and lift people out of


energy poverty.

Coal Demand-Supply/
Power Purchase
Agreements/Stranded
Capacity: A conundrum!
Several state DISCOMs are already
facing financial stress due to accu-
mulated losses to the tune of INR 3.8
Lakh Crores (as on March, 2015) and
increasing @ 12% p.a. as reported by the
ministry. Such financial stress does not
allow DISCOMs to make fresh power
purchases and prevents them from float-
ing new tenders for Long Term Power
Purchase Agreements (LTPPA) for ther-
next six years the country now imports mal power which will have a negative
80% of the crude oil requirement and Over the past four impact. Backing down long term thermal
boosting production of natural gas. The years, PPAs of only 12 firm must run power for accommodating
demand for coal from the power sector infirm power is unsustainable technically
GW have been signed
has seen tremendous decline in the and financially and will be a big chal-
past one year. Government has set the under the competitive lenge for system operators to deal with.
2016-17 coal production target for Coal bidding route (Case 1 Over the past four years, PPAs of 29
India at 598 MT. While the production bids). Leading state only 12 GW have been signed under the
has been increasing continuously there competitive bidding route (Case 1 bids).
has not been many takers of coal. Coal
electricity boards Leading state electricity boards (SEBs)
demand has remained subdued during (SEBs) of Maharashtra, of Maharashtra, Gujarat and even Tamil
2016-17. Gujarat and even Tamil Nadu have become power surplus and
Despite being a regional energy may not require additional contracts
giant, India has a low per-capita
Nadu have become for the next couple of years. Other
consumption (1075 kilowatt hours power surplus and may utilities who need power are taking full
(kWh) per person per year) compared not require additional advantage of the prevailing low spot
to China (4,034 kWh per person) and power prices in exchanges (less than
contracts for the next
the US (13,532 kWh per person). The INR 2.5/unit), rather than entering long-
low per-capita energy consumption in couple of years term contracts. Currently, around 21-22
India is primarily due to the fact that GW of coal-based generation capacity
a vast majority of population does not inability to access sufficient energy is is stranded without a PPA. The plant
have access to modern energy sources one of the reasons for the low levels of load factor (PLF) of the existing coal-
to deliver basic energy needs. One development in some regions, as energy based capacity for private independent
in four Indians does not have access deprivation has significant health, power producers with a contract was
to electricity; about two-thirds of the social, environmental and economic less than 60% in FY 2015-16 and has
population use traditional biomass implications. The government is relying been consistently hovering well below
for cooking. Energy poverty the on coal-fired power plants to reduce 60% during 2016-17 (up to September
2016). While Coal Indias stellar per-
King Coal! formance over the past two years has
Indias dependence on coal can be seen in its electricity generation mix. As of September taken away fuel-related worries to some
2016, 187 GW (approximately 61% of the total installed capacity) came from coal-powered extent, legacy issues such as new coal
thermal generation. The balance consists of a combination of hydro (15%), other fossil
fuel (9%) nuclear (2%) and non-hydro renewable energy sources (13%). In recent years,
block auctions at aggressive prices still
Indias electricity sector has grown at a rapid pace. Installed generation capacity has haunt some generators.
grown phenomenally post-independence from some 1.4 GW in 1948 to about 306 GW by Further, there is a huge amount of
September 2016. generation capacity lying undispatched
November 2016
www.InfralinePlus.com

InDepth

due to unavailability of coal which is it difficult to sign Fuel Supply Agree- before 2020, there are several private
due to the policy that only plants with ments (FSAs), despite constant prodding sector plants that are facing financial
long term contracts will get coal linkage, by the government. It had struggled to issues leading to delays in or stoppage
thereby rendering installed transmission accept the FSA obligations even in case of the construction work.
capacity underutilised. On the other of power plants with long-term PPA In 2013, apart from identifying plants
hand, state distribution companies and slated to be commissioned before for short-term supply contracts, CIL
are not pursuing long term contracts March, 2015. The government at that was also issued a presidential directive
resulting in a Catch-22 situation for the time identified two groups of plants with to sign FSAs with certain power plants
generation and transmission capacity an aggregate capacity of 14,600 MW holding valid LoAs. For this purpose,
addition and a utilization mismatch. and asked CIL to supply fuel to them on a list of power plants totalling around
a short-term MoU basis as they lacked 78,000 MW capacity was finalized by
Historical and future trend LoAs from the company. Although, the Central Electricity Authority (CEA)
Coal has always been the mainstay most of the central sector plants in this and approved by Cabinet Committee on
of the Indian power sector and it is a category are likely to be commissioned Economic Affairs (CCEA). However,
view shared by most policymakers that only about 58,000 MW of this capacity
it must remain the primary source of The dominance of coal has been commissioned till date with
electricity generation for at least the around 54,000 MW having long-term
next three to four decades. This view
in Indias energy con- PPAs and are therefore eligible to draw
is based on the belief that a centralised sumption basket can coal from CIL under FSAs.
electricity system based on an ever- be attributed to its ex- Amid an improving trend in
expanding coal power generation base domestic coal production and the mea-
will ensure energy security, provide af-
tensive use in produc- sures being taken by CIL to augment
fordable energy for all and, importantly, ing electricity in the domestic coal output, the dependence
30 address the issue of energy scarcity in country. Coal powered on coal imports is likely to remain
India. The dominance of coal in Indias high in the near to medium term (till
thermal power plants
energy consumption basket can be at- FY19) and moderate gradually after
tributed to its extensive use in produc- (TPPs) account for that, due to the overall challenges in
ing electricity in the country. Coal 70% of total electricity coal mine development along with risk
powered thermal power plants (TPPs) generated in the coun- of delays in ramping up of coal output
account for 70% of total electricity by the allottees of schedule II and
generated in the country and represents
try and represents 61% schedule III mines.
61% of the installed power capacity. of the installed power
The current scenario contrasts with capacity Conclusion
the one in 2013 when CIL was finding The financial position of state power
distribution companies (DISCOMs)
Figure 1: Coal Indias growth production and offtake levels during
is being cited as a key impediment to
last five years (in %) w.r.t to demand from the power sector
demand growth. Over-investment in
CIL's growth production and offtake/consumption transmission is desirable for a country
by power utilities (FY11-FY16) like India because the sources of
Year-on-year growth (in %) energy lie either in the central/eastern
coal belt or hydro resources in north
Coal consumption by power while demand centers are in the plains
8.8
utilities: 530.4 MT (15-16) 8.6
of north, west and south. Stranded
7.4
6.9 Coal consumption by power power capacities of 22-28 GW
utilities: 545.9 MT (15-16)
(industry estimates) may have to wait
Coal consumption by power
3.8 utilities: 489.4 MT (13-14) 3.8 for 2-3 years for securing PPAs. During
2.1 2 2.3 the present period, both government
0.01 1.1 1.4
and industry are relying on UDAY
FY11 FY12 FY13 FY14 FY15 FY16 scheme for the demand to pick up and
Production Offtake
kick-start the growth in the sector.

Source: Coal India (CIL), Central Electricity Authority (CEA), media reports For suggestions email at feedback@infraline.com
November 2016
www.InfralinePlus.com

StatisticsCoal
Power Generation - Role of Coal (Aug16)

(Apr-Mar) FY. 16-17 FY. 15-16 Growth


(Apr-Mar)
(2015-16) Aug-16 Aug-15 Apr-Aug16 Apr-
(2014-15) Abs. %age
(Prov.) (Prov.) Aug15
1. Power Generation (In Billion Units)
Total 1048.673 1107.386 95.261 95.12 486.442 460.266 26.18 5.70%
Hydel 129.244 121.341 17.738 17.779 63.652 67.659 -4.01 -5.90%
Thermal 878.32 943.407 72.929 73.515 403.856 373.097 30.76 8.20%
Coal 800.334 861.714 65.839 66.854 368.384 340.304 28.08 8.30%
based
Oil 1.407 0.394 0.009 0.033 0.132 0.174 -0.04 -24.10%
Gas T. 41.075 47.053 4.403 3.854 20.995 17.802 3.19 17.90%
Lignite 35.504 34.246 2.678 2.774 14.345 14.817 -0.47 -3.20%
Nuclear 36.102 37.292 3.515 2.834 15.873 16.269 -0.4 -2.40%
Import (Bhutan) 5.008 5.245 1.08 0.992 3.06 3.242 -0.18 -5.60%
II. PLF %
Cumulative
Thermal 64.25 62.28 52.03 58.1 59.28 60.74 -1.46 -2.40%
Coal based 63.86 62 51.72 57.91 59.04 60.39 -1.35 -2.20%
Lignite 75.23 70.93 61.43 63.62 66.67 70.73 -4.06 -5.70% 31
Nuclear 80.74 73.65 81.73 65.91 74.79 76.65 -1.86 -2.40%
III. Specific Coal 0.671 0.645 0.685 0.67 0.66 0.675 -0.02 -2.20%
Consumption* (Kg/KWH)
IV. Coal Despatches(ln MT)
CIL 385.393 409.132 27.3 30.2 157.8 160 -2.2 -1.40%
SCCL 39.175 47.332 3.661 4.043 18.81 19.433 -0.62 -3.20%
Total 424.568 456.464 30.961 34.243 176.61 179.433 -2.82 -1.60%
V.Coal Receipt * (In MT)
INDIG- 451.158 480.948 33.328 36.067 192.822 187.761 5.06 2.70%
ENOUS
IMPORT 91.288 80.716 5.116 6.868 28.877 34.804 -5.93 -17.00%
TOTAL 542.446 561.664 38.444 42.935 221.699 222.565 -0.87 -0.40%
Coal Consumn.*(ln MT) 531.477 545.674 42.911 43.562 232.018 217.959 14.06 6.50%
VI. Coal Stock (In MT)* (As on (As on (As on (As on (As on (As on
1.04.14) 01.04.15) 01.08.16) 01.08.15) 01.04.16) 01.04.15)
20.082 26.104 30.256 30.417 38.875 26.104 12.77 48.90%
(As on (As on (As on (As on (As on (As on
01.04.15) 01.04.16) 01.09.16) 01.09.15) 01.09.16) 01.09.15)
26.104 38.875 28.424 30.082 28.424 30.082 -1.66 -5.50%
VII. Decr./lncr. 6.022 12.771 -1.832 -0.335 -10.451 3.978

Note(*): 1. Receipt, consumption and coal stock includes coal from all sources.

2. Specific coal consumption calculated as per April-August Generation & Consmn. Figs provided by CEA.

3. Coal stock is for Power plants monitored by CEA on daily basis.


November 2016
www.InfralinePlus.com

StatisticsCoal
Indonesian Coal Prices - HBA - FY 2016-17 (till Oct16)

HBA 6322 HPB MARKER (kcal/kg GAR) (USD/Ton)


Month kcal/kg Gunung Pinang Indominco Melawan
(USD/ton) Prima Coal Envirocoal Jorong J-1 Ecocoal
Bayan I Coal IM East Coal

7000 6700 6150 5700 5400 5000 4400 4200

16-Apr 52.32 55.87 57.84 52.29 43.06 43.25 41.6 33.45 30.87

16-May 51.2 54.66 56.7 51.26 42.16 42.44 40.89 32.88 30.35

16-Jun 51.81 55.32 57.32 51.82 42.65 42.88 41.28 33.19 30.63

16-Jul 53 62.42 63.97 57.8 47.95 47.6 45.45 36.57 33.64

16-Aug 58.37 56.61 58.53 52.9 43.61 43.74 42.04 33.8 31.18

16-Sep 63.93 68.45 69.61 62.87 52.45 51.6 48.99 39.43 36.18

16-Oct 69.07 74.01 74.82 67.55 56.6 55.3 52.26 42.07 38.53

FOB Thermal Coal Prices - Australia & South Africa - FY 2017


Australia (FOB Newcastle South Africa (FOB Richards Bay
Month
6700 kcal/kg) (USD/Ton) 6000 kcal/kg) (USD/Ton)

16-Apr 50.8 52.7

32 16-May 51.2 53.7

16-Jun 53.4 57.3

16-Jul 62.3 62.5

16-Aug 67.4 66

16-Sep 72.9 67.4


November 2016
www.InfralinePlus.com

CoverStory
Climate Change: Is India ready
to move away from coal?

33

Make in India and Digital India to lead to a significant increase in electricity demand
Need to expedite capacity addition in hydro, nuclear and gas-based generation

By Team InfralinePlus

On October 2, 2016, India made a strate- people are yet to receive power, this generating capacities if its electricity
gic decision to move away from coal as development has also triggered a debate demand spikes.
a source of electricity in the long run by on how it will impact Indias long term According to BP Statistical Review,
ratifying the Paris Agreement on Climate strategy to address energy security. India witnessed 5.3 per cent increase in
Change. The deal, approved by nearly The pace of reduction in Indias emissions in 2015 -- the highest in the
200 countries in Paris last December, carbon intensity has slowed in the past world. India is apparently banking on
aims to cut greenhouse gas emissions decade due to heavy dependence on renewable capacity to meet its electricity
by shifting away from fossil fuels to coal to meet electricity requirement. requirement and not much attention is
limit global warming to well below But by signing up to the Paris climate being paid to harnessing potential of
2C compared with pre-industrial times. pact, the country has taken on binding cleaner and reliable energy sources like
However, considering the fact that India commitments to reduce emissions, hydro, gas and nuclear, which does not
is one of the fastest growing economies which means in the future it cannot fall seem to be a credible strategy to ensuring
in the world and more than 300 million back on the dirty fuel to fire its new countrys long-term energy security.
November 2016
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CoverStory

India has committed to reduce its because the country faced domestic cent in 2012. That slowed the pace
emissions by 33 to 35 per cent over shortage of uranium and was barred of reduction in the countrys carbon
the baseline of 2005 by 2030 under from accessing international market for intensity (emissions per unit of GDP).
the Paris climate agreement. Power the fuel. While harnessing hydropower According to BP Statistical Review,
sector accounts for 35-40 per cent of resources has always been a tricky prop- Indias coal consumption grew by 4.8
the countrys total emissions. India has osition for the country given the risks per cent in 2015 and accounted for
targeted to raise share of renewable involved in it, domestic gas shortages 58 per cent of the countrys primary
energy in its power mix to 40 per undermined the prospect of generation energy consumption. India also
cent by 2030. However, as we know, capacity addition based on the clean fuel. accounted for more than 10 per cent of
capacity utilisation of renewable power The net result was that India added coal- global consumption during the year.
plants is much lower at 15-16 per cent based generation capacity at a frantic According to a study undertaken
compared to conventional generating pace of capacity from 1990 onward in by the Global Commission on the
stations which can be easily run at the absence of credible alternatives. Economy and Climate, the pace of
80-90 per cent plant load factor (PLF). According to official data, the share decline in Indias energy intensity in the
That means a 100 MW solar plant will of coal in Indias total primary energy 2000s worked out to 2.7 per cent, which
generate the same quantum of elec- rose from 33 per cent in 1990 to 45 per was higher than the 1.5 per cent median
tricity as a 20 MW conventional plant. pace of energy intensity decline across
If the Indian economy gets back to Capacity utilisation all countries in this period. But Indias
the trajectory of 9-10 per cent annual of renewable power energy intensity fell at a slower pace of
GDP growth, electricity consumption 1.9 per cent between 2006 and 2013.
could see a sharp increase. Then getting
plants is much lower According to the International Energy
additional conventional capacity in at 15-16 per cent com- Agency, Indias per capita energy
time to meet power requirement might pared to conventional consumption is just a third of global
34 prove challenging. Building hydel generating stations average and 24 crore people still lack
and nuclear power plants takes time. access to electricity. Besides, the Modi
Developing natural gas-based gen-
which can be easily run governments flagship programme like
eration capacity is also not an option at 80-90 per cent plant Make in India and Digital India are also
given the domestic shortage of the fuel load factor (PLF). That expected to lead to a significant increase
and the issues of affordability involved means a 100 MW solar in the countrys electricity demand. So
in using imported LNG. If India tries to there is a tremendous scope for increase
add coal-fired capacity, it could run the
plant will generate in Indias electricity consumption. That
risk of defaulting on emission reduction the same quantum of could have serious implications for the
commitments. electricity as a 20 MW countrys energy intensity if India does
Prior to 2007, nuclear capacity conventional plant not shift to conventional but cleaner
addition was not an option for India energy sources like hydropower, nuclear
and gas-based plants.
According to the IEA, Indias
energy consumption would more than
double by 2040, accounting for 25
per cent of increase in global energy
consumption. Strong growth in Indias
manufacturing and an additional 58
crore consumers will boost electricity
demand by 4.9 per cent per year,
reaching almost 3300 TWh in 2040.
Installed capacity will surge to nearly
1 100 GW in 2040 about the same as
Europes current capacity, the IEA says
in its World Economic Outlook 2015.
According to analysts, energy
intensity of GDP is also affected by broad
structural changes in the economy. The
November 2016
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income elasticity of demand for energy The Paris Agreement


tends to vary with income per capita.
The agreement calls on countries to combat climate change and to accelerate
This elasticity the percentage change
and intensify the actions and investments needed for a sustainable low
in per capita energy consumption for a carbon future. Specifically, it seeks to limit global temperature rise to well
given change in per capita GDP tends below 2 degrees Celsius, and to strive for 1.5 degrees Celsius.
to rise as countries go from low income Developed countries are expected to come up with $100 billion in climate
to middle-income status, they add. To financing each year, with half of that going to help countries adapt to green
keep carbon intensity from rising, India energy and the other half to mitigating the effects of climate change.
will have to expedite harnessing non- The agreement will enter into force 30 days after at least 55 countries,
renewable sources of cleaner energy too, accounting for 55 per cent of global greenhouse gas emissions, deposit
which would help reduce the countrys their instruments of ratification or acceptance with the United Nations
India accounts for 4.1 percent of global emissions and is the worlds third
coal-generated electricity.
largest emitter of greenhouse gases
India has not agreed to cap or cut its emissions outright like some countries,
Paris Agreement not to but will boost its use of green energy and reduce its emissions relative to
jeopardise Indias energy its gross domestic product by up to 35 percent by 2030 from 2005 levels
security plans
On the other hand, some experts including renewable energy. The gov-
believe that signing of the Paris Indias nuclear ernment had planned addition of 5,300
Protocol will notpose threat to Indias generation capacity is MW nuclear capacity during the cur-
energy security. Climate control, it is 5,780 MW, which works rent 12th Five year plan (April 2012-
claimed, is not an impeding factor for March 2017). Against that, it has added
coal-based power plants. Rather it is
out to 1.8 per cent of its just 1,000 MW as of August 2016.
the sluggish growth of manufacturing total installed capacity India has chalked out ambitious plan
sector. Even if the growth manufactur- including renewable to meet 25 per cent of its electricity from 35
ing sector picks up, the idle capacity of energy. The government nuclear plants by 2050, which appears
current installed total capacity will be had planned addition to be an optimistic target given the
sufficient to meet the requirement. public resistance against nuclear power.
India has an installed capacity of 3
of 5,300 MW nuclear Acquiring land for nuclear plants is also
lakh MW and another 1.75 lakh MW is capacity during the not going to be easy as there is no con-
to be added from the renewable sector current 12th Five year sensus on amendments proposed by the
by 2020-22. Currently India is using plan (April 2012- March Modi government in the land acquisition
just around 1.5 lac MW with major coal 2017). Against that, it act passed by the previous UPA regime.
based power plants operating at around The land acquisition bill tabled by
40% Plant Load Factor. As of now,
has added just 1,000 the Modi government in parliament
manufacturing sector is not picking up mw as of August 2016 provides certain exemptions for five
and that is the cause of more than half categories of projects from going
of installed capacity lying idle. Experts also feel that role of tech- through the process of getting consent
Further, the existing capacity plus nology will be critical in addressing of 80 percent of land owners when land
the capacity from renewable shall be Indias climate change goals. It is is acquired for private projects, and the
together around 5 lac MW by 2020-22, claimed that as a policy, from 14th consent of 70 percent of land owners
and looking at the growth pattern of plan onwards, all power plants based is obtained when land is acquired for
Indian manufacturing sector, even at on coal shall be following the super public-private partnership projects.
the peak performance of this sector critical/ ultra-super critical technology These changes were introduced in the
under Make in India push, India shall which almost nullifies the emissions as Right to Fair Compensation and Trans-
be using just around 3.5 lac MW, it increases efficiency by 8-10 percent parency in Land Acquisition, Reha-
leaving again surplus capacity unused. vis-a-vis sub critical sets and drastically bilitation and Resettlement Act, 2013.
Considering a 7% GDP growth y-o-y, reduces the amount of coal to be burned. However, consent of landowners is not
the requirement in 2022 would still required for government projects.
be around 400 GW, leaving further a Nuclear push required Nuclear power projects require
surplus of 100 GW, which the Gov- Indias nuclear generation capacity significant areas of land due to the
ernment is already planning to export is 5,780 MW, which works out to 1.8 additional requirement of a 1.5-km
to neighboring countries. per cent of its total installed capacity exclusion zone around the plant in
November 2016
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CoverStory

India. According to the Atomic Energy


Regulatory Board (AERB) code, an area
in the radius of 1.5 km, called exclusion
zone, around the reactors is established
where no human habitation is permitted.
This area forms the part of the project
and included in the land acquired.
The future of nuclear energy in India
hinges on the outcome of parliamentary
debate over the bill. Should it be passed,
it will boost NPCIL plans of devel-
oping nuclear energy parks that could
each supply 10 GW of power. On the
other hand, failure in passing the bill
could badly undermine the prospects
of nuclear power in the country, say
analysts. There has been significant
opposition and local protests to the Hydropower capacity Bleak outlook on Natural
government plans of land acquisition addition remains slow Gas
to develop these nuclear energy parks, The share of hydropower in Indias India has nearly 25,000 MW capac-
potentially delaying their development power mix has come down to 14 per ity based on natural gas. However,
and forcing the Nuclear Power Corpo- cent from 40 per cent in 1960 and is due to domestic gas shortages, these
ration to search for alternative locations. expected to fall further in coming days plants are operating at less than half of
36 Indian Prime Minister, Narendra due to slow pace of capacity addition. their installed capacities. These plants
Modis trip to the US in June cleared The private sector which bagged major- are also unable to use imported LNG
the hurdles for Westinghouse to ity of new hydel projects in the past is because of affordability issues. The
building nuclear reactors in India. unable to undertake capacity addition. demand-supply gap for gas is projected
NPCIL and Westinghouse signed a deal So there is a pile-up of languishing to further widen in coming years as
to set up six AP 1000 nuclear reactors hydel projects. industrialisation picks up pace. In such
in India. The AP 1000 is Westing- Most of the unrealised hydropower a scenario, investors are unlikely to bet
houses flagship new-generation PWR potential is located in areas which are on gas-based generation capacity.
with a net electrical output of 1,100 inaccessible due to lack of physical Government has implemented a
MW. The project site has been shifted infrastructure. The previous UPA gov- scheme for utilisation of gas based
to Kovvada, Andhra Pradesh, after ernment had taken initiatives to build power generation capacity in the
the original site selected in Gujarat roads and highways to expedite har- country through supply of spot RLNG
met with protests and faced delays. nessing of hydel projects in Arunachal (e-bid RLNG) but PLF still remains
Contracts between NPCIL and West- Pradesh. It had also mooted the idea very low. However, if LNG prices
inghouse are likely to be finalised by of hydropower purchase obligation to rise again, the government could find
2017 while engineering and site design promote hydel power. But UPA lost it difficult to implement the scheme
work will begin immediately. An power before these initiatives could which requires subsidy payout.
inter-agency committee has been set come to fruition.
up to work out financing structure for The Modi government has yet to come Coal-fired generation
the reactors. US-based Exim Bank will out with policies that would expedite har- dominant
provide financing for the project. But nessing of hydropower resources. India Coal-fired plants account for over 60 per
costs of reactors to be purchased from has potential to generate nearly 1.5 lakh cent of Indias total installed generation
the US have yet to be finalised. MW electricity from hydro resources. capacity. In terms of generation,
Indian private sector can play an Against that, it has so far harnessed coal-based plants contribute about 75
important role in ramping up nuclear just 42,000 MW. The government has per cent of countrys total electricity
generation capacity through supply of envisaged adding 10,897 MW capacity consumption despite drastic fall in
components, equipment and works con- based on hydropower during the current their average PLF. As the power sector
tracts. However, it is barred by law from Plan. Against that, it had added just 3,996 is the biggest contributor to countrys
participating in the capacity addition. MW as of August 2016. emissions, the government has started
November 2016
www.InfralinePlus.com

levying cess on coal as environment million tonnes, say experts. targets and compliance with policies
cost of the dirty fuel. Finance Minister The Central Electricity Authority such as Renewable Purchase Obli-
Arun Jaitley doubled the cess on coal to announced plans in May 2016 to close gation (RPO). According to analysts,
Rs 400 a tonne in the budget 2016-17. up to 37GW of obsolete coal plants Indias renewable targets are ambitious
Jaitley justified the increase as a way based on outdated subcritical technology and delivery on ground in terms of
to internalise some of the cost exter- about 20 per cent of Indias installed new deployment has gathered consid-
nalities that result from the use of coal. coal-fired power generation capacity. erable pace. The ambitious targets are
This is a significant cost increase for Our first concern is emissions ... We now further backed by Indias global
coal-fired power plants, with the revised also want plants to be more efficient in commitment under a formal multi-
cess amounting, for example, to about 10 use of resources, the CEA had said. national agreement. Despite several
per of the price of 6,000 Kcal/kg GCV India has also signed pact to strengthen key concerns that remain, this should
imported coal, say analysts. The money cooperation with Japan in advanced help focus government policies for the
is used by the government to finance ultra supercritical coal technology. sector, attract domestic and interna-
capacity addition in renewable power. tional capital into the sector and assure
The government has also offered Strong growth in growth for all stakeholders.
incentives to replace more than 25 year renewables
old, obsolete sub-critical units with As part of its Intended Nationally Conclusion
supercritical technology based plants Determined Contributions (INDCs), Analysts feel that clean coal technolo-
in a bid to bring down emissions of India has committed that at least 40 per gies can help resolve Indias dilemma
coal-fired plants. As of today, more cent of its installed power generation over usage of coal. However, India has
than 90 per cent of Indian coal plants capacity will be non-fossil fuel to make a timely decision on whether
use sub-critical boiler technology with based by 2030. The current number it should wait for commercialisation
operating efficiencies close to 30 per is 30 per cent, if hydro and nuclear of advance super critical technology
cent. India has committed to ramping power are included. A big share of or should it work on more credible 37
up its currently low penetration of High the commitment will be achieved, if option of expediting capacity addition
Efficiency Low Emission (HELE) tech- India meets its 175 GW of renewable in hydropower, nuclear and gas-based
nologies such as super-critical and ultra power capacity target by 2022. The big generation to ensure long-term security
super-critical boilers, which can increase imponderable here is Indias insistence of electricity supply.
efficiencies to as high as 46 per cent. that it will achieve the targets only if Even if India gets advanced ultra-
Every percentage point increase in developed countries give it money and supercritical technologies in a couple
boiler efficiency results in a 2.5 per discounts on new technology. of years and starts their large-scale
cent reduction in GHG emissions. Experts say that ratification of deployment, there is no guarantee
If half of Indias coal boilers were climate accord would attract a much that it will be able to make intended
HELE-based by 2030, this could lead larger global scrutiny on the countrys reductions in power sector emission
to avoided emissions of roughly 400 ability to achieve yearly renewable while also adding coal-fired generation
capacity freely.Anyway, this tech-
nology will be costly and put upward
pressure on electricity tariff if deployed
on a massive scale.
So, it would be advisable for the gov-
ernment to promote capacity addition in
hydropower and nuclear. The gov-
ernment can build roads and highways
to help in expeditious harnessing of
hydro resources in remote and inac-
cessible areas.To ensure expeditious
capacity addition in nuclear, the gov-
ernment can think of roping in private
sector participation, which would entail
amending the existing law.

For suggestions email at feedback@infraline.com


November 2016
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NewsBriefs | Oil & Gas National


OMCs losses on subsidized sales to fall 30 per cent to Rs 19,100 crore Govt to part-finance GAILs Rs
13,000-crore pipeline project

on an average Indian basket crude oil price


of $45 per barrel and a Rupee-Dollar ex-
change rate of 68 for the full financial year
2016-17. Apart from lower crude oil prices,
the GURs would fall due to the steps taken
by the government like Direct Benefit Trans-
fer for domestic LPG (DBTL), leading to the
cancellation of 35 million fake accounts,
surrender of LPG subsidy by 10 million
customers under the GiveItUp campaign
The Gross Under-Recoveries of Oil Market- and a gradual monthly increase in prices of The government has agreed to partly
ing Companies (OMCs) on subsidized sales kerosene and LPG, said K Ravichandran, Se- fund the Rs 13,000-crore natural gas
of petroleum products is likely to fall 30 per nior Vice President at research and ratings pipeline from Jagdishpur in Uttar Pradesh
cent to Rs 19,100 crore in the current finan- agency ICRA. He added any sharp recovery to Haldia in West Bengal, state- owned
cial year from Rs 27,570 crore last fiscal. in crude oil prices would be the primary gas utility GAIL India has said. The
The estimated reduction in losses is based sensitivity for GURs going forward. government will provide Rs 5,176 crore
or about 40 per cent of the project cost
Pradhan pitches for subsidy withdrawal on petro products after the state-owned gas utility found it
difficult to commercially justify the huge
Making a case for free market economy to investment of Rs 12,940 crore in absence
boost investments, Oil Minister Dharmendra of either a firm source of gas supply or
Pradhan has said the market price of petro- customers. The ministry of petroleum
leum products should be commensurate and natural gas vide letter dated October
38 with production rate to augment output and 7, 2016 has communicated the Cabinet
subsidies on such items must be for poor Committee on Economic Affairs (CCEA)
households only. The market price should approval for 40 per cent capital grant
be near to production price. We have to adopt (limited to Rs 5,176 crore) of the total
a market mechanism. Government should estimated project cost of Rs 12,940 crore
not control prices (of petroleum products), cannot augment production of petroleum to GAIL for the execution of Jagdishpur-
the minister said. The minister was also products in the country. He also stressed that Haldia/Bokaro-Dhamra natural gas
of the view that freeing price of petroleum the subsidies should be targeted and should pipeline projects, it said. The 2,539-km
products is necessary to boost the inves- not be available to everybody for increasing long pipeline from Jagdishpur in Uttar
tors confidence and increase private players investors confidence. At present, the govern- Pradesh to Haldia in West Bengal and
participation in energy sector. He suggested ment still provides subsidy on kerosene and also Bokaro in Jharkhand and Dhamra in
that the without removing subsidies India cooking gas (LPG). Odisha will be completed by 2020.

Centre to invest Rs 15,000 crore to expand Panipat refinery

The central government will invest Rs 15,000 up to 72 per cent. Pradhan said that efforts
crore to increase the capacity of Panipat were being made to have the downstream
refinery from existing 15 million tonnes of petro chemical hub in Haryana so as to
(MT) to 25 mt to create huge employment attract maximum investment in the state.
opportunities, Union Minister Dharmendra This would attract about 100 big or small
Pradhan has said. Also, an ethanol plant industries thus generating maximum revenue
would be set up at a cost of Rs 500 crore and employment in the state, he said. The
by the Indian Oil Corporation in Panipat to Union Minister also appreciated the state
generate alternative fuel from agricultural government for digitization of ration cards
residue which would boost agriculture sector, under public distribution system, which
the Petroleum Minister said. The Union revealed that five lakh beneficiaries were
Minister said that the expansion of refinery would also help in raising quality of fuel in getting dual benefit of both subsidised LPG
would raise specifications of fuel quality from the country by the year 2020, he said. As per and kerosene.This has saved Rs 100 crore
BS-4 to BS-6. This would not only create scientific research, he said that ethanol made subsidy being granted by the Centre to
employment opportunities for the people, but from crop residue can produce fuel or energy Haryana government, he pointed out.
November 2016
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NewsBriefs | Oil & Gas National


Indian Oil to lay Indias longest LPG pipeline Rosneft sign agreements to acquire
98 percent in Essar Oil

Gorakhpur via Ahmedabad (in Gujarat),


Ujjain, Bhopal (in Madhya Pradesh), Kanpur,
Allahabad, Varanasi and Lucknow (in Uttar
Pradesh). The pipeline will carry 3.75 million
tons per annum of LPG. LPG will be fed
into the pipeline at Kandla port as well as
IOCs Koyali refinery in Gujarat. This will
be the biggest LPG pipeline in the country. Essar Energy Holdings Limited, the
GAIL currently operates a 1,415-km line exploration and refining arm of Essar
State-owned Indian Oil Corp (IOC) plans from Jamnagar in Gujarat to Loni near Energy, and Mauritius based Oil Bidco
to lay the nations longest LPG pipeline here. The line carries 2.5 million tons of Limited the controlling shareholders
from Gujarat coast to Gorakhpur in eastern LPG annually. GAIL also has a 623-km of Essar Oil Limited (EOL)announced that
Uttar Pradesh to cater to growing demand Vizag-Secunderabadpipeline. IOC also has a they have entered into separate definitive
for cooking gas in the country. IOC plans to 274-km pipeline from Panipat in Haryana to agreements for the sale of 98% of EOL.
import LPG at Kandla in Gujarat and move Jalandhar. The demand for LPG is increas- The first sale and purchase agreement
it through the 1,987 kilometer pipeline to ing consistently in recent year. envisages the sale of 49% to Petrol Com-
plex Pte. Ltd and the second envisages
Niti Aayog rejects Oil Mins Rs 10K crore demand to build new reserves the sale of the remaining 49% to Kesani
Enterprises Company Limited at a valua-
The governments think-tank NitiAayog tion of Rs 72,800 crore. An additional Rs
has shot down petroleum ministrys 13,300 crore ($2 billion) will be paid for
demand for nearly Rs 10,000 crore of the acquisition of Vadinar Port, which has
public money for building more strategic world-class storage and import/export
crude oil reserves as the proposal strays facilities. The all-cash deal encompasses 39
from the agreed plan to rope in private EOLs 20 million tonne refinery in Gujarat,
sector investments for crude storage India, and its pan-India retail outlets.
beyond the existing 5 million tonnes. While The closing of the Transaction is condi-
pointing out that there was neither plan tional upon receiving requisite regulatory
fund allocated for the project nor any approvals and other customary condi-
funding tie-up for it from other resources, crude oil majors to create storages to tions. The Parties expect to obtain the
NitiAayog said that during the preparation secure markets and also on arbitrage relevant approvals before the end of this
of the 12th Five Year Plan the ministry had on fluctuating prices. As regards energy year. Indian markets will witness robust
agreed to private sector involvement in security, as long as the crude is stored on demand growth for petroleum products
building and operating strategic storage. our mainland, we will always have the first in the long term.
There is significant interest in global right, it commented on the proposal.

OIL achieves all-time highest natural gas production during 2015-16 fiscal

Oil minister Dharmendra Pradhan recently national seismic programme, we are carrying
launched the national seismic programme to out a reassessment of hydrocarbon data of
carry out assessment of unappraised areas existing sedimentary basins. The third big
across the country for potential oil and natural thing is the single platform where all the data
gas reserves. The massive 2D seismic survey, is being brought together, or the national data
which will cost the government more than Rs repository, which we will be dedicating to the
5,000 crore, has been launched on Mahanadi nation very soon, the minister said. Pradhan
basin (onshore) in Odisha. Our governments said he was hopeful the survey work would
is giving a lot of focus to hydrocarbon data. eventually lead to enhanced exploration and
Pradhan said at the launch at Tarang village. production (E&P) activities in Odisha. Work
As much as 48% of the Indian sedimentary in most parts of the country while Oil India on such surveys in these parts in the 80s had
basin remains unappraised, and there has Ltd will undertake the project in northeastern even resulted in some evidence of onland gas
been no major finding in new sediments in states. NSP will cover an estimated 48,243 findings, he said. The presence of gas has
the last 25 years, he added. ONGC will carry line kilometre, covering 26 sedimentary been established about 30 km offshore of
out the national seismic programme (NSP) basins divided into 11 units. In addition to the Dhamra in a discovery by Reliance in the past.
November 2016
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NewsBriefs | Oil & Gas International


Shell said to consider sale of US$1b Malaysia LNG stake Pakistans LNG imports set to surge
to 3bcf/day by 2018

Malaysias state-owned Petroliam Nasional


Bhd, which holds 60 per cent of MLNG Tiga,
has pre-emptive rights on the stake. The
disposal is part of the Anglo-Dutch energy
giants plan to raise US$30 billion from as-
set sales in the three years through 2018 to
help cut borrowings after its acquisition of
BG Group Plc prompted Fitch Ratings Ltd to
Royal Dutch Shell Plc is considering a sale of lower its credit rating. The companys total
its stake in a Malaysian liquefied natural gas debt ballooned to US$90.3 billion at the end
export plant, which could fetch more than of June, from US$52.9 billion a year earlier,
US$1 billion (RM4.19 billion). Shell is gaug- data compiled by Bloomberg show. The Pakistan, largely dependent on imported
ing interest in its 15 per cent stake in MLNG pressure is on Shell to slim down its global fuels for its energy needs, will be
TigaSdn, which owns an LNG terminal in footprint following the BG acquisition, Saul importing a cumulative of 3.0 billion cubic
Sarawak on the island of Borneo. The sale Kavonic, a Perth-based analyst at energy feet (bcf) per day of liquefied natural
may draw interest from private-equity firms. consultancy Wood Mackenzie Ltd, said. gas (LNG) by 2018 to bridge the demand
supply gap, which has already crossed
Iran to invite foreign companies to bid on oil and gas 4.0 bcf mark. The countrys current
natural gas production is around 4.0
Iran will invite foreign companies to bid for bcf/day, while the demand had crossed
oil and gas projects for the first time since already crossed 8.0 bcf/day mark, said
last years landmark nuclear deal with world ShahidKhaqanAbbasi, minister for
powers, the Oil Ministry said recently. The Petroleum & Natural Resources. One
40 ministry did not say how many projects would LNG terminal is already operational, while
be involved but said they include exploration another would be ready by January 2017
and production in oil and gas fields. It will and third by July 2017, while two private
be the first time Iran offers an international sector terminals would be operational by
tender for oil and gas projects since the 2018, Abbasi said. He said the country is
nuclear deal went into effect in January. The already importing 0.6 bcf of LNG, another
ministrys website said foreign companies neighboring countries with which it shares 0.6 bcf will come by January 2017 to be
should submit their applications by Nov. 19, border fields. The country has 28 joint offshore followed by 0.6 bcf in July 2017, taking
and that successful companies would be and onshore gas and oil fields with those the LNG imports to 1.8 bcf per day. As
announced on Dec. 7. Iran had previously said countries. Iran has already upgraded its model two private sector terminals would be
that priority for exploration and production for oil contracts, allowing for a potential full commissioned in 2018, the countrys total
for foreign companies would be given to recovery of costs over almost two decades. gas imports would reach 3.0 bcf per day.

Singapore joins IEA as Southeast Asia oil demand set to rise 80% by 2040

Singapore joined the International Energy creating across the world, said Fatih Birol,
Agency (IEA) as an association country. The executive director of the IEA. The Interna-
island state, which is the Southeast Asian tional Energy Agencys objective is to ensure
hub of the oil trade, is the fourth country to reliable, affordable and clean energy and
join the influential agency as an association help member countries handle disruptions in
country after China, Indonesia and Thailand. oil supply. Singapore is the fourth country to
Singapore has key strategic importance made up of 29 member countries which are join the IEA under the association country
in the energy sector as energy demand in net oil importers and have committed to a initiative after China, Indonesia and Thailand
the region is expected to rise by 80 percent demand-restraint programme for reducing last November. As an Association country,
in the next 20 odd years, driven by robust national oil consumption by up to 10%. We Singapore will work with the IEA on a broad
population growth and economic expansion. are going to create different programs and range of energy security issues. To become
The inclusion of Singapore in the IEA also activities with Singapore in order to make the a full member, countries should be net oil
marks the rising importance of Asia in the decision makers in this region understand the importers with a crude reserve that is equiva-
global economy and energy landscape. The benefits of using energy more efficiently and lent to around 90 days of the previous years
IEA, an autonomous group set up in 1974, is the opportunities that renewable energies are average net oil imports.
November 2016
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ExpertSpeak
Mundra LNG Terminal: Indias
next energy gateway
Anil Joshi, President, GSPC LNG Ltd., feels that given Indias global
commitment to reduce carbon emissions, the country will have to
significantly increase the share of natural gas in the energy basket.
The state of Gujarat has emerged as the natural gas capital in India,
and the upcoming 5-MMTPA LNG Terminal at Mundra, shall further
add to this landscape.

Indias GDP is poised to grow between India where natural gas business
7.5 to 8% in the coming few years. A and infrastructure is thriving
country aspiring towards tremendous across the entire value
growth needs a lot of infrastructural sup- chain with
port in terms of power, energy, roads, exploration Moving
ports etc. Infrastructural support is key blocks, LNG towards gas-
to growth that can never be discounted import based economy Anil Joshi, President, GSPC LNG Ltd.
41
in any growing economy like ours. terminals by increasing the
In Paris 2015 UNFCCC, 196 and share of Natural eliminates the requirement of break-
countries came together to deal with developed Gas can help water. The location of the Mundra Port
the issue of climate change. World gas India meet its is well placed for bringing the LNG
leaders pledged to cut carbon emissions transmission objective vessels especially in view of the short
to restrict the increase in global and distribution distance for voyages from the Middle
average temperature below 2C. At this business. Gujarat East and African LNG exporting coun-
forum, India has committed to reduce with its vast coastline (1600 kms) tries. This provides immense opportu-
its emissions intensity of its GDP by 33 already has two fully operational nity for LNG import at this terminal,
to 35 per cent by 2030 from 2005 level. LNG import terminals (Dahej and with savings in LNG transportation
Moving towards gas-based economy by Hazira) as well as an excellent cost. Further, the Mundra Port is well
increasing the share of Natural Gas can network of pipelines and inter-pipeline connected with the vast hinterland of
help India meet its objective. Recent connectivity. western and northern Indian states,
initiatives of MoPNG like #Gas4India which have huge potential for demand
also aim to increase the share of Strategic advantage of regasified LNG.
Natural Gas in Indias Energy Basket GSPC LNG Limited (GLL) is set-
from current level of 6.5% to 15%. ting up a 5-MMTPA LNG Terminal at Components and facilities
As of August 2016, Indias Natural Mundra, Kutch. Mundra port offers a Mundra LNG terminal is aimed to
Gas (NG) consumption was around 140 strategic location as it is an all weather import LNG to meet the growing
MMSCMD. For the first time, the share operating port with natural draft suit- energy demand. The LNG terminal will
of Regasified LNG (RLNG) stood more able for 24x7 safe berthing of all size comprise of receiving, storage and re-
than domestically produced NG. The LNG vessels. The port already has gasification facilities of LNG with state
additional gas demand in the economy operational facilities for all the requi- of the art technology. Mundra Terminal
is constantly being met through higher site services for LNG ship pilotage, project has been conceptualized to be
levels of imported LNG, making India berthing and un-berthing. No capital developed in three phases. In the Phase-
the 4th largest importer of LNG. or maintenance dredging is envisaged I, single jetty with unloading facilities,
The state of Gujarat has already for the project. The Gulf of Kutch acts two LNG storage tanks and regasified
emerged as the natural gas capital of as a natural shelter for the port and LNG send out capacity of 5 MMTPA
November 2016
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ExpertSpeak

(peak capacity of 6.25 MMTPA) are


being executed. The Phase-II of project
envisages one additional LNG storage
tank and enhancing regasified LNG
send out capacity to 10 MMTPA (peak
capacity of 12.5 MMTPA). The ultimate
phase envisages addition of one ad-
ditional jetty with unloading facilities,
three LNG storage tanks and augmenta-
tion of regasified LNG send out capacity
to 20 MMTPA.
In the current phase of project
being developed, the 5 MMTPA
LNG terminal has 1 Km long jetty
designed for handling LNG tankers of
sizes 75,000 M3 to 260,000 M3, two
full containment LNG storage tanks
of net capacity 1,60,000 M3 each, are installed considering the LNG
facilities for LNG regasification, and In the current phase unloading rate of 15000 m/h and
fiscal metering. Terminal is designed of project being minimum send-out rate requirements.
considering several different operation These two BOG reciprocating
developed, the 5
scenarios i.e. send-out without LNG compressors can be operated as per the
ship unloading, send-out with LNG MMTPA LNG terminal capacity modulation requirements i.e.
42 ship unloading, minimum send-out has 1 Km long jetty 25/50/75/100%.
with and without ship unloading. The designed for handling In order to serve customers not
process and equipment are designed for connected with natural gas pipeline,
nominal send-out of 5 MMTPA with a LNG tankers of this terminal has LNG truck loading
peak at 125% of the nominal send-out sizes 75,000 M3 to facility consisting of a single truck
to cater peak load. 260,000 M3, two full loading bay with provision for future
The Terminal has two LNG storage expansion to 4 loading bays.
tanks of full containment type and
containment LNG The terminal is self sufficient for
tank boil-off rate is 0.08% per day. storage tanks of net requisite utilities to run LNG terminal
The storage tanks consists of primary capacity 1,60,000 M3 i.e. Nitrogen generation and storage,
inner container of 9% nickel steel Plant & instrument air system, fully
each, facilities for
mounted in a secondary pre-stressed equipped fire fighting system including
concrete steel-lined outer tank and a LNG regasification, fire-water tanks & fire station, diesel
reinforced concrete domed roof and a and fiscal metering storage and distribution system, 6.6
support deck suspended from the outer KV emergency diesel generator having
container roof over the inner container. free of cost. ORVs have lower carbon capacity to run the terminal at 25%
The tank bottom, annular space and foot-prints owing to no CO2 emission load in case of power failure. Electrical
suspended deck are insulated in order for regasifying the LNG. ORVs require power supply to the terminal is through
to limit the ambient heat ingress. Tank lesser space compared to alternative two 66kV dedicated transmission lines
filling lines are designed for LNG regasifcation equipments and saves sourced from different sub-stations
unloading rates of 15000 m/h through land cost for the project. The LNG to meet the power demand in case of
both top and bottom filling pipes. unloading facility is designed for LNG failure of any of supply line.
The process facilities include unloading rates of 15000 m/h. LNG
regasification system, unloading unloading facility comprise of four 20 Strong connectivity with
system and BOG handling system. unloading arms with emergency release pipeline grid
Open Rack Vaporisers (ORV) uses coupling. Three arms shall be used for The Mundra LNG terminal shall be
seawater as its heat source to convert LNG unloading and One unloading connected with the existing natural
LNG into natural gas. Heat from the arms shall be used for vapour return gas grid of GSPL which is also con-
seawater for vaporisation of LNG is to the vessel. Two BOG compressors nected to all major pipelines in India.
November 2016
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This shall provide unhindered access to consortium of Toyo Engineering company having vast experience in
to natural gas markets of western and India Limited & Toyo Engineering executing international LNG projects.
northern India. Corporation (Japan), and Sea water Since the start of construction of the
The project is implemented intake & outfall facilities to Coastal terminal in August 2014, Mundra LNG
through different packages, namely Marine Construction & Engineering Terminal has achieved many significant
Storage Tanks, Regas facilities, Sea Limited (COMACOE), while marine milestones progressively. GLL has
water intake & outfall, and Marine facilities are being undertaken given highest priority to safety and
facilities to optimize costs, through separately. EPCC Contractors for quality in the works. All the packages
seamless integration of different LNG storage tanks and Regasification of the project are in advanced stages of
facilities by managing interfaces facilities are leading global contractors construction and the terminal shall be
among Engineering, Procurement, and have executed similar LNG completed by next year.
Construction and Commissioning projects in India. Globally LNG industry is at cross
(EPCC) Contractors at different stages GLL has appointed Whessoe roads today. A lot of projects are
of the project life cycle. Engineering Ltd, UK as its Project getting commissioned; increasing
EPCC contracts were awarded Management Consultant (PMC). global supply of LNG. Spot LNG
for Storage Tank facilities to IHI Whessoe Engineering Ltd, UK is prices have reduced significantly
Corporation, Regasification facilities a globally acclaimed engineering in line with oil price crash and
with the availability of abundant
The project is implemented through different supply of LNG. In addition to
conventional LNG, many countries
packages, namely Storage Tanks, Regas facilities, are experimenting with Small Scale
Sea water intake & outfall, and Marine facilities to LNG concept and foraying the usage
optimize costs, through seamless integration of of LNG as marine bunker fuel, road
transport fuel etc. This is indeed a
different facilities by managing interfaces among moment of reckoning for Indias LNG
43

Engineering, Procurement, Construction and industry. GLL aims and aspires to be


Commissioning (EPCC) Contractors at different ready with its infrastructure to serve
the nation.
stages of the project life cycle
For suggestions email at feedback@infraline.com
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ExpertSpeak
Natural gas infrastructure
requires cautious approach
Dr. U.D. Choubey, Director General, SCOPE, feels that even
though natural gas is the future for energy sector, it is important to
ensure that the infrastructure creation for the same is not done in a
haphazard manner. Realistic demand and supply estimates should
be taken into account toa void excessive capacity which can lead to
be a drain for the companies.

The global energy sector has Key elements of natural gas


experienced a paradigm shift over past infrastructure consist of pipelines
two decades. 21st century witnessed for transportation of gas from
natural gas as a green alternative to oil source and distribution
and it was exploited extensively for of natural gas
It is
commercial use. It helped development to various
imperative
of the economy but has become end users Dr. U.D. Choubey, Director General, SCOPE
44 that natural gas
a matter of concern that the share and also
infrastructure is
of natural gas in the energy mix in creation the maximum. Key reasons for the
built in a planned
India has come down from 11% in of R-LNG above are shortage in source of gas
way with back-
2009-10 to 6% as of now. Therefore terminals. and also price sensitivity of demand
to-back firm
the projected share of natural gas It is also of gas. Proper coordination between
contracts
increasing to 20% by 2030 attracts integrated source, transportation and users require
uncertainty if not impossibility. with creation improved and coordinated approach.
It is a paradox, rather ironical fact, of user facilities. All There are three players involved in
that all projections whether supply these activities are highly capital- monetisation of gas through pipeline.
or demand of natural gas has not met intensive and high-risk areas. Even They are - supplier of gas from source,
reality in the past. Total demand of though our country has recognised the the transporter and the buyer (i.e.
natural gas in India in 2012-13 was need for investing in a strong natural the end user of gas). Therefore, there
projected at 242.66 MMSCMD, going gas infrastructure so as to develop free must be a firm gas supply/ purchase
up to 378.06 MMSCMD in 2016-17. flow transmission and distribution of contract on back-to-back basis i.e.
This needs to be examined in the light natural gas across the country, past between supplier and transporter as
of the present supply-demand sce- experience shows that the investment well as transporter and end user. But
nario. Also, the demand for natural has taken the nature of unplanned off late, the practise has undergone a
gas in India alone has been pegged at expenditure leading to blockage of shift. Pipelines are being constructed
746 MMSCMD by 2029-30 (Vision funds and under-utilisation of the in absence of any firm purchase supply
2030 Natural Gas Infrastructure in natural gas infrastructure. As of 31st contract with the end users resulting
India, Report by Industry Group for March 2016, India has around 17,000 in underutilisation of the laid down
PNGRB). Further, on supply side it kms of pipeline with capacity to carry pipelines. This results in loss to the
has been projected at 384 MMSCMD 390 MMSCMD (data by PPAC) of utility provider as its investment is
in 2018-19, which is more than 100% natural gas. However, the average irrecoverable due to underutilization. It
of the present supply, that too within flow of gas as of now is around 132 needs caution in creating further infra-
less than two year period. Exaggerated MMSCMD. This implies that on an structure. Construction and execution
supply and demand projections are not average, the pipelines capacity is being of pipelines entails heavy capital
achievable in the near future. utilised to the extent of 35%-40% at outlay (around INR 3- 5 crores per
November 2016
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km of pipeline depending upon size). LNG exporters. As of January 2016, and of course political unrest in key
Any unplanned investment on creating the nominal liquefaction capacity exporting nations.
pipeline infrastructure as a result would stood at 301.5 MTPA. This is likely
lead to blockage of investment and a to increase by 141.5 MTPA given Regasification terminals
drain on resources of the company(s). the plants under construction are With respect to regasification, the
Hence, in order to start with any commissioned. The capacity utilisation global capacity as of 2015 stood at
fresh investment in infrastructure, it of liquefaction stood at approximately 757 MTPA (IGU World LNG report
should be based on realistic supply and 50%. The world has seen more or less 2016) and new capacities are being
demand of natural gas and, above all, flat capacity utilisation from previous planned to be added very shortly. 55
a firm gas supply contract on back- year primarily due to global fall in gas MMTPA new regasification capacities
to-back basis. Optimal utilisation of prices, diversion of export of LNG by were under construction for the quarter
infrastructure would lead to recovery countries for domestic consumption ended 31st March 2016. However, the
of cost of pipeline and in turn ensure utilization levels for the receiving LNG
maximum utilisation of infrastructure. terminals at world level stands low and
This would lead to win-win situation
In order to start with is not more than 40% in any case. The
for all parties involved- seller, utility any fresh investment utilization levels have remained flat
provider and buyer. in infrastructure, it during 2014 and 2015 primarily due
should be based on to diversion of domestic production
LNG liquefaction and by many countries for self-use by
gasification facilities realistic supply and the country and falling price of gas
It would not be an exaggeration to say demand of natural gas internationally.
that LNG has driven globalisation by and, above all, a firm At present, India is the 13th largest
connecting distant markets thereby gas consumer and 5th largest LNG
making natural gas accessible even
gas supply contract importer in the world. India has four 45
to resource deficient/ absent areas. on back-to-back basis. LNG terminals with a total regasifi-
Hence, at present, LNG is the driving Optimal utilisation of cation capacity of about 33 MT of
force behind the worlds energy map. which only 24.5 MT is operational
infrastructure would (Petroleum Ministry). However, oper-
With the growing dependence on
natural gas, LNG presents itself as lead to recovery ating LNG gasification terminals are, by
a viable alternative. As per IGU, the of cost of pipeline and large, being operated on their full
global LNG trade reached 244.8 MT and in turn ensure capacity. Crowding of regasification
in 2015-16 earmarking the said year terminals is likely to put pressure not
as a historical period for LNG trade. maximum utilisation of only on utilisation levels but also on
As of 2015-16, there are 33 LNG infrastructure returns of investment in constructing
importing countries as against only 17 the terminal. Construction of LNG
terminal entails a heavy capital expen-
diture of approx. INR 6,000 crores (for
5 MMTPA LNG receiving capacity).
Hence, the same should be done after
giving serious consideration of all
related factors such as sourcing and
supply of regasified LNG to consumers.
Utmost care would be required
when we go for long term tie-up for
imported LNG in the country. High
price tie-up, unpredictable falling
price of gas and affordability of
consumers in India (which is yet to
see mature market of gas) may create
serious problems in times to come
and hence it would be difficult for the
utility provider to find takers in the
November 2016
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ExpertSpeak

Indian market for imported LNG if it existence of the company. The only high capital expenditure for the same
is tied-up at high price on long-term olive line being the country as energy is equally irrational. Utility providers
basis. In such a case, take or pay deficient and consumers/ government create facilities at their own cost and
liability on the utility service provider may, under compulsion, be required to capitalise the infrastructure as project
may be very high, adversely affecting consume high priced LNG to produce investment in the financials. Any unde-
the economic health of the company. essential input for economic growth, be rutilization of the utility whether being
To avoid any such situation, there it power, fertilisers and others. pipeline, LNG or regasification terminal
should be firm gas supply contracts on would result in loss to the utility
back-to-back basis from suppliers to Way Forward provider and hence negative return on
transporter and to end-users. Though natural gas is the future for investment. This would lead to financial
Market intelligence and researchers energy sector, it should be ensured and resource loss to the company(s) and
have larger role in LNG trade as the that the infrastructure creation for the the country as well.
price of gas has been highly buoyant. same is not done in an unplanned way. Excessive infrastructure not aligned
Long term tie-ups of LNG at higher Arguments can be presented against with realistic demand and supply can
price may create enormous problems this point by pleading that a develop- lead to be a drain for the companies
for company(s) as marketing of high ing country like India needs to develop and hence it is imperative that natural
price gas would be difficult. Liability infrastructure in order to create demand gas infrastructure is built in a planned
under take or pay may create for gas. Contradicting this thought way with back-to-back firm contracts.
liquidity problems for the utility may not be completely rationale but At least two of the loose ends must
company which may affect the very expecting individual companies to incur be tied up with firm contracts from
source of gas to transporter and again
Utility providers create facilities at their from transporter to end users. If we
do not evolve a clear policy, we shall
own cost and capitalise the infrastructure
46 be building yet another Taj Mahal
as project investment in the financials. Any and discussing strategic sale (or even
underutilization of the utility whether being closure) of the financially stressed
pipeline, LNG or regasification terminal would sick PSE in next five to ten years time.
Humko kitne Taj Mahal Hai Aur
result in loss to the utility provider and hence Banane?
negative return on investment
For suggestions email at feedback@infraline.com
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ExpertSpeak
Oil & gas companies need to
develop a risk analytics engine
Neeraj Gupta, Director, iEnergy Innovations Pvt. Ltd., feels that
oil and gas is a high-risk industry and hence requires timely risk
mitigation to avert crisis. As a solution, he recommends that oil and
gas companies should adopt a step-by-step approach to build a
decision support enabled risk framework.

Majority of the oil & gas enterprises -- Over 90% did not have any enter-
implement ERM (Enterprise Risk prise risk monitoring dashboards
Management) as a compliance Board and CEO give utmost
requirement. It means they will importance to the following factors:
develop risk registers and governance -- Measure performance against the
framework but lacks a robust day key risk indicators
to day monitoring and integrated -- Periodic mea-
reporting and alerts framework. surement for Neeraj Gupta, Director, iEnergy Innovations
47
Oil Pvt. Ltd.
The ultimate objective of any ERM appropri-
& gas com- tional, financial and legal
framework is to mitigate risk before ateness
panies should 3. Develop key risk indices and
it happens, avoid black swans and -- Deviation
adopt a step-by-step control measures
identify some of the uncontrollable from a
approach to build a 4. Transform it into a decision
risks, monitor them on day to day basis risk per-
decision support support system using analytical
and implement ERM as a decision formance
enabled risk engines
support system. The root cause plan
framework Risk Taxonomy is an important
analysis reports of some the recent -- Periodical
disasters in oil industry also point review of risk stepping stone in the entire risk
towards this by stating that risk control governance policy, framework. It is not possible to
failure is one of the primary reasons. controls, and mitigations build a high rise building on a weak
Risk Management has to be integrated -- Evaluate changes in internal or foundation and same is true for a risk
in day to day business activities of a external environment management program. A risk taxonomy
company. Its ultimate objective is to -- Monitor risk progress report an outlines are risk categories, their
maximize shareholders value. variance following the policies drivers, key performance areas and
Based on some secondary research it -- Periodic review of risk control risk indices across entire organization.
can be said that framework robustness Post taxonomy creation, it is important
-- Over 80% use industry trends and -- Use structured scientific and ana- identify inter-relationships across risk
peer analysis to identify risks lytical tools sub-categories and drivers. There is no
-- Over 80% values importance of As a result, following step-based point in having a thousand risk indices
internal audit reports approach needs to be considered in when all of them are related to each
-- Over 70% think key risk indices order to facilitate transition from an other. All risk drivers which are related
and performance indicators are elementary risk control framework to a to each other should be part of same
same more robust one. risk indices. At a board level it is not
-- Over 80% believes there is a lack of 1. Build the Risk Taxonomy advisable to have more than ten risk
integration is the key issue 2. Develop inter-relationships between indices at the maximum.
-- Nearly 40% have some unstructured various risk drivers across different Even tree methodologies were
risk taxonomy in place risk domains like strategic, opera- used to develop relationships between
November 2016
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ExpertSpeak

Fig 1, Identifying risk Inter-relationships (Boleslaw et.al 2015)


It is recommended that
oil & gas companies
adopt a step-by-
step approach to
build a decision
support enabled risk
framework. There is
a need to develop
a comprehensive
taxonomy across
four areas of risk
i.e. strategic,
operational, financial
and compliance and
map it across all the
business units of an
organization. It is the
48 foundation of the entire
risk framework

Fig 2, Developing Risk event tree triggers events of a particular risk,


assigning a likelihood percentage
based on number of similar events in
the past (Fig 2.0). Even tree helped
in prioritization of key risk indices as
once you complete your analysis, one
Fig 1, Identifying risk Inter-relationships (Boleslaw et.al 2015) can easily find out the top five or ten
indices that have relatively more chance
of occurring and not necessarily based
on past events but also on the existing
processes as well.
It is recommended that oil &
gas companies adopt a step-by-step
approach to build a decision support
enabled risk framework.
-- Develop a comprehensive tax-
onomy across four areas of risk i.e.
strategic, operational, financial and
compliance and map it across all the
business units of an organization. It
is the foundation of the entire risk
framework.
-- Explore inter-connectivity between
Diagram (Fig 2.1) shows how key risk indices were prioritized and converted into various risk drivers identified
a decision support system. in taxonomy to create a risk
November 2016
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Fig 2.1, Decision Model for Risk Control Framework

49

historical data can be used to build


Companies need to perform regular monitor analytical engines.
of key risk indices. Frequency of monitoring -- Perform regular monitor of
may vary. E.g., for high risk field operations, all key risk indices. Frequency
compliance data should be monitored on daily of monitoring may vary. E.g.,
for high risk field operations,
(or even hourly, if required). And a probabilistic
all compliance data should be
consequence analysis should be performed. For monitored on daily (or even
other strategic decisions like bidding decisions, hourly, if required). And a
cost and schedule simulations can be used probabilistic consequence analysis
whenever required should be performed. For other
strategic decisions like bidding
connectivity map. It helps in to assign weightages by looking decisions, cost and schedule
identifying the common risk drivers at historical data or susceptibility simulations can be used whenever
affecting multiple risks to avoid of a business unit based on annual required and a probabilistic
duplication of monitoring efforts probabilistic analysis performed. estimate may be obtained using
across multiple business units. -- Develop synergies with other previous risk drivers or new
-- Use existing key performance existing data systems (ERP, compliance requirements.
indices to derive key risk indices. SCADA etc.) to have one version
Event tree should be used in order of truth. These systems or other For suggestions email at feedback@infraline.com
November 2016
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InDepth
Fourth consecutive reduction
in Natural Gas price

50

Gas prices have been reduced by nearly 50% in the past two years
Biggest beneficiary of this price cut is CGD sector which has higher exposure to retail

By Team InfralinePlus

Recently domestic natural gas price has Previous to this, the domestic gas of Oil and Natural Gas Corporation
been cut to $2.50 per million British prices was reduced by 20 per cent in (ONGC) on an annual basis. The
thermal unit for the period of October April 2016. The prices have reduced current price reduction would hit its
1, 2016 to March 31, 2017 from the by nearly 50% in the past two years revenue by about Rs 1, 000 crore.
previous price of $3.06 which is since new gas pricing formula has been All gas of ONGC as well as that of
reduction by 18 per cent. The price cut introduced. ONGC is the countrys Oil India Ltd and private sector RILs
is in line with the fall in gas prices over biggest gas producer, accounting for KG-D6 block is sold at the formula
the reference period July 2015 to June some 60% of the 90 million standard approved in October 2014. This formula,
2016. This is the fourth consecutive cubic meters per day current output. however, does not cover gas from fields
reduction since the implementation Every dollar dip in gas price results like Panna/Mukta and Tapti in western
of the domestic gas pricing formula. in about Rs 4,000 crore hit in revenue offshore and Ravva in Bay of Bengal.
November 2016
www.InfralinePlus.com

cubic metres) in Mumbai. This is the


Gas Price ($ per million British thermal unit (mmBtu))
first big drop in CNG and piped gas
6
price in recent years.
5.05
5 4.66 The reduction in natural gas prices
would help stimulate the gas share in
3.82
4 the energy basket as discounted gas
3.06
3
would mean lower raw material cost
2.5
for compressed natural gas (CNG) and
2 piped natural gas (PNG) to households
and would translate into reduction in
1
retail prices.This will also benefit the
0 government since it will lower the
1st Nov 2014 - 31st 1st April 2015 - 30th 1st Oct 2015 - 31st 1st April 2016 - 30th 1st Oct 2016 - 31st fertiliser subsidy burden.
March 2015 Sep 2015 March 2016 Sep 2016 March 2017

Gas Price ($ per million British thermal unit (mmBtu)) New domestic gas pricing
policy 2014
With the cut in domestic gas prices, to Rs 1.5 per standard cubic meter in Gas is one of the cleanest fuels with
relative attractiveness of downstream price of PNG for domestic customers less carbon dioxide per joule deliv-
companies - which are involved in and Rs 0.8-1.7 per kg cut in CNG ered than either by coal or oil and far
distribution of gas over the upstream prices. Following this price cut, MGL fewer pollutants than other hydro-
companies which are involved in reduced CNG price by Rs 1.60 per kg carbon fuels. The share of gas in the
production of gas are likely to accen- and the price of piped gas has been energy basket of the country figures
tuate as this help in earnings growth reduced by Rs1.01 per unit (standard poorly compared with the global
of downstream companies such as 51
Indraprastha Gas (IGL), Mahanagar
Gas (MGL), Gujarat Gas and GAIL. The biggest beneficiaries of this price cut are
This price cut puts further pressure on city gas distribution (CGD) companies which
finances of upstream producers such
have higher exposure to retail. As price reduction
as ONGC, Oil India, and RIL who do
not find the current rate incentivizing will help in improving gas consumption and
enough to invest more in oil and gas increasing conversion to CNG-driven vehicles.
hunt. These upstream companies are These CGD companies tend to retain a portion of
expected to report subdued revenue
from gas. It is assumed that every $0.5
the price cut, which improves operating margin
drop in gas price reduces earnings of
ONGC and Oil India by 5-6%. ONGC
had earlier requested the government to
relook at the gas price formula as this
does not leave them with any money
to carry out more projects and makes
exploration unviable.
The biggest beneficiaries of this
price cut are city gas distribution
(CGD) companies which have higher
exposure to retail. As price reduction
will help in improving gas con-
sumption and increasing conversion
to CNG-driven vehicles. These CGD
companies tend to retain a portion
of the price cut, which improves
operating margin. The price cut
should result in a reduction of Rs 0.5
November 2016
www.InfralinePlus.com

InDepth

Global Benchmarks for current share of 6.5% in next three According to the formula approved
Domestic Gas Price to four years. This is to promote a in October 2014, the domestic gas
Calculation gas-based economy, which is part of price is calculated as the weighted
the nations commitment to cut carbon average price of four global bench-
emission levels. Indian Government marks the US-based Henry Hub,
has undertaken various initiatives and Canada-based Alberta gas, the
policy interventions across the natural UK-based National Balancing Point
gas value chain, which can shape the (NBP), and Russian gas. While Henry
nations natural gas future. Hub has a weight of 38.1 per cent in
Pricing of gas is a politically the pricing formula, NBP accounts
sensitive issue as it is a key input in for 42.9 per cent, Alberta Hub 4.9 per
important sectors such as fertilizer cent and Russian gas 14.1 per cent.
and power. Keeping in view market- Europe and Russia jointly account for
determined pricing for gas can be the 57 per cent of the weight and a steep
best policy going forward in order decline in prices in these two regions
to ensure greater investment, com- will influence domestic rates substan-
petitiveness and transparency in the tially. Amusingly, the pricing guide-
sector, the new domestic gas pricing lines do not take into account the
average of 23.8%. The Government policy was approved by the Cabinet price of gas imported. The formula
is aiming to raise the share of gas in Committee of Economic Affairs on mandates a price revision once every
the energy basket to 15% from the 18th October 2014. six months.

According to the formula approved in October Concerns on new gas


pricing policy
52 2014, the domestic gas price is calculated as Despite the perceived benefits of
the weighted average price of four global bench- the new gas pricing policy, there are
marks the US-based Henry Hub, Canada-based several concerns that come along
with it. The first is to do with how
Alberta gas, the UK-based National Balancing
the formula is constructed. The price
Point (NBP), and Russian gas. While Henry Hub in India is pegged on the benchmark
has a weight of 38.1 per cent in the pricing for- prices of the previous year, and takes
mula, NBP accounts for 42.9 per cent, Alberta Hub effect after a time-lag of a quarter. For
example, the price applicable in the
4.9 per cent and Russian gas 14.1 per cent period April 1-September 30, 2016
was based on the average benchmark
prices over January-December 2015.
This means Indias gas prices follow
the global cues with a good time-lag
of six months.
Another important concern with
the price of domestic gas being
pegged to global benchmarks is that
any gains could be offset by losses
on account of the Rupee movement.
According to various research
agencies, almost 6 per cent depre-
ciation of the Rupee over April-Sep-
tember 2015 will mean the net impact
of the fall in the price of gas will
actually be significantly lower.

For suggestions email at feedback@infraline.com


November 2016
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StatisticsOil & Gas


Natural Gas Production in India, 2016-17 (As on September, 2016)

State April May June July August September Total

I) Gross Production :

A) Onshore:

(i) Assam / Arunachal Pradesh 265.63 255.11 259.31 273.59 264.21 262.29014 520.73

(ii) Rajasthan 118.84 120.09 112.2 116.48 111.99 103.103864 238.93

(iii) Gujarat 125.81 113.11 107.34 126.28 129.83 132.694574 238.92

(iv) Tamil Nadu 84.33 78.02 74.59 74.49 77.95 75.160096 162.35

(v) Andhra Pradesh 55.03 57.67 68.32 73 75.66 77.280003 112.7

(vi) Tripura 99.79 121.08 116.65 119.53 120.04 114.68374 220.87

(vii) West Bengal, MP, Jharkhand (CBM) 37.24 42.65 43.67 46.86 48.24 47.816 79.89

Onshore Total (A) 786.67 787.72 738.42 783.37 779.67 765.212417 1574.38

B) Offshore: 1701.4 1868.37 1816.32 1874.42 1846.25 1787.070596 3569.77

Total (A+B) 2488.1 2656.1 2598.4 2704.7 2674.15 2600.099013 5144.2

II) Net Production 2400.7 2573.6 2513.4 2621.3 2578.59 2503.13987 4974.3

Consumption of Natural Gas in the domestic market (As on September, 2016) 53

Month April May June July August Sept Total

Natural Gas 2400.66 2573.61 2513.42 2621.31 2578.59 2503.14 15191.44


(including CBM)

LNG Import 2142.02 2081.67 1908.49 1960.19 2144.19 2374.65 12722.29

Total 4542.68 4655.28 4421.91 4581.5 4722.78 4877.79 27913.73

Domestic Crude Oil Production (September, 2016) (Million Metric Tonnes)


September April-September
2015-16
Details 2014-15 2016
(P) 2016
2015 (P) 2016 2015 (P) 2016 (P)
(Target)
Target)*

ONGC 18.6 18.5 1.5 1.8 1.5 9.3 11.2 9.1

Oil India Limited 3.4 3.2 0.3 0.3 0.3 1.6 1.6 1.6

Private/Joint Ventures 11.7 11.3 0.9 0.9 0.9 5.8 5.5 5.4

Total Crude Oil 33.8 33.1 2.7 3 2.6 16.8 18.3 16.2

Condensate 3.7 3.8 0.3 0.3 1.9 1.9

Total (Crude + 37.5 36.9 3 3 2.9 18.7 18.3 18.1


Condensate) (MMT)

Total (Crude + 274.7 270.8 22.3 22 21.4 136.9 133.9 132.4


Condensate) (Million
Bbl)
November 2016
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StatisticsOil & Gas


Refineries Installed capacity and crude oil processing (September,2016) (MMTPA / MMT)

Crude Oil Processing


Installed
Com- September April-September
Refinery Capacity 2014-15 2015-16 (P)
pany
1.4.2016) 2015 2016 2015 2016
2016(P) 2016 (P)
(Actual) (Target) (Actual) (Target)
IOCL Barauni (1964) 6 5.9 6.5 0.5 0.5 0.5 3.2 3.1 3.3
Koyali (1965) 13.7 13.3 13.8 1.1 1 1.1 6.5 7.2 7.3
Haldia (1975) 7.5 7.7 7.8 0.5 0.6 0.7 3.8 4 4
Mathura (1982) 8 8.5 8.9 0.7 0.6 0.7 4.3 4.4 4.6
Panipat (1998) 15 14.2 15.3 1.3 1.1 1.2 7.4 7.6 7.7
Guwahati (1962) 1 1 0.9 0.1 0.08 0.07 0.52 0.5 0.44
Digboi (1901) 0.7 0.6 0.6 0.04 0.06 0.05 0.28 0.3 0.25
Bongaigaon(1979) 2.4 2.4 2.4 0.2 0.2 0.2 1.3 1.2 1.2
Paradip (2016) 15 - 1.8 0 1.1 0.4 0 3.6 2.8
IOCL TOTAL 69.2 53.6 58 4.4 5.3 5 27.3 31.9 31.7
HPCL Mumbai (1954) 6.5 7.4 8 0.7 0.7 0.6 3.7 4 4.1
Visakh (1957) 8.3 8.8 9.2 0.8 0.7 0.7 4.3 4.3 4.4
HMEL Bathinda (2012) 9 7.3 10.7 0.9 0.8 0.9 5.5 4.7 5.5
HPCL-TOTAL 23.8 23.5 27.9 2.4 2.1 2.3 13.5 13 14

54 BPCL Mumbai (1955) 12 12.8 13.4 1 1.2 1.2 6.5 7 7.1


Kochi (1966) 9.5 10.4 10.7 0.9 0.9 0.9 5.5 5.3 5.5
BORL Bina (2011) 6 6.2 6.4 0.6 0.3 0.5 3 2.9 3.3
BPCL-TOTAL 27.5 29.4 30.5 2.5 2.4 2.6 15.1 15.1 15.9
November 2016
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NewsBriefs | Renewable International National


Renewable energy project returns face counter party risks Solar module exports rises 116
constraining the credit profile of renewable percent in April-July
energy developers, raising debt costs and
crimping potential returns for project
developers, ratings agency India Ratings
and Research said. According to India
Ratings, discoms in Madhya Pradesh,
Rajasthan, Maharashtra and Tamil Nadu,
which have large installed renewable
energy capacities and more in the pipeline,
are taking more than four to eight months
Falling component prices and project costs to release payments. Maharashtra State Indian exports of solar modules and
may have vindicated renewable energy Electricity Distribution Co. Ltd is said to cells rose 116% during April-July 2016
developers bets on low tariffs. But their have delayed payments to wind projects and touched $41 million. During that
returns are seeing risk from an unexpected by about a year. The payment delays and same period India imported modules
quarter---power distribution companies or uncertainties are raising the credit risk and cells worth $580 million, up 52 %
discoms, the buyers of renewable energy. profile of the developers, driving up the compared to the same four-month period
The weak financial health of discoms is finance costs. (April-July) of 2015. China is the single
largest exporter of solar modules and
Govt gives 600 MW stranded power projects second wind cells to India, accounting for 82% of
Indias total solar imports. Malaysiais
A clutch of wind power units with a combined the second largest exporter to India,
capacity of 600 MW that has never been put accounting for a 12% share of Indias
to use for the want of long-term buyers have overall imports. Currently, United States
been offered a ray of hope by the government, accounts for only 1% of Indias total
by allowing them to participate in the first ever solar imports and it remains to be seen if 55
auction for wind power. As the government imports from U.S. will increase after the
is set to invite tenders for 1 gigawatt (GW) of recent ruling from the World Trade Orga-
wind power in order to help states without nization (WTO) is enforced, which found
natural wind advantage meet non-solar Indias domestic content requirement
renewable purchase obligation, along with the discriminatory against U.S. manufactur-
potential investors, these existing units can power units in crisis had come up on promises ers, said Priyadarshini Sanjay, managing
also bid. This is a break from convention as by some states that the power would be pur- director Mercom Communications India.
usually auction for long-term power purchase chased by them on a long-term (20-25 years) The United Kingdom imported the largest
agreements which has so far happened only basis. But that was not to be and investments amount of Indian solar modules and
in the thermal power sector is confined to of Rs4,000 crore are on the verge of being cells, accounting for 34.1% of Indias
new players, not existing ones. These wind declared non-performing assets. total solar export.

India says future phases of solar mission will be WTO compliant

India has assured the World Trade the WTO three years ago for the domestic
Organisation (WTO) that future Indian content requirements under the JNNSM.
solar programmes will comply with It subsequently won the case as India
the multilateral bodys rules on the was not able to prove that the sourcing
sourcing of local equipment. India hopes of the equipment was part of government
to continue with the present set of procurement where there were no
provisions in the ongoing second phase restrictions on localisation. New Delhi said
of its Jawaharlal Nehru National Solar while it did not agree with all the findings,
Mission (JNNSM), but introduce WTO it would inform the DSB of its intentions
compliance from the third phase onwards. to implement the ruling within 30 days, as
The assurance was given at a meeting of per WTO rules. BRICS countries needed
the multilateral bodys Dispute Settlement to jointly figure out how to continue with
Body (DSB), which adopted the Appellate local sourcing policies without flouting
Bodys findings that Indian norms for cells and modules were inconsistent with WTO rules.
mandatory domestic sourcing of solar WTO rules. The US had dragged India to
November 2016
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NewsBriefs | Renewable National


Government takes up Rs 1,000 crore slum lighting project MNRE to seek Cabinet nod to classify
another Rs 500 crore is under consider- hydro power as renewable
ation, said S P Gon Chaudhuri, chairman of
Kolkata-based Renewable Energy College
that invented the sunlightcapturing gadget.
Installed on the rooftop, the gadget sends
sunlight into rooms where even windows
dont let in sunlight during the day, using
a special dome and a reflective cylinder.
In night the gadget falls back on batteries
The Centre may spend Rs 1,000 crore in charged with solar panels to light LED bulbs
subsidies to offer a new solar lighting solu- installed in homes. Poor families can buy
tion to one crore families living in shanties this gadget for Rs 1,100 after subsidy. If the
and slums where rooms are poorly lit all government approves the additional subsidy New & Renewable Energy Ministry will
through the day. The ministry of new and of Rs 500 crore, then the cost of the gadget seek Cabinet approval to a proposal to
renewable energy has already committed for the poor will come down to Rs 600, reclassifying large hydro power plants
Rs 500 crore for the two-year project while Chaudhuri said. as renewable projects, a move which
can help India achieve clean power
India witnessed $16 billion shortfall in renewable energy investments in 2015 capacity of 230 GW by 2022. I have a
study carried out by Power Secretary
India needs a total annual investment $26 and his team which demonstrates that
billion to achieve its targeted renewable except 4-5 countries almost univer-
capacities and meet committed reduction in sally in the world, hydro power (large
emissions. In comparison, the investment project) is considered renewable. We are
made into the renewable sector in India almost on the verge of finalising that
56 was $10 billion in 2015 a shortfall of report, which should shortly be taking
$16 billion. According to data compiled up to the Cabinet (for approval), Power,
by the Institute of Energy Economics Coal, Mines and New & Renewable
and FinancialAnalysis, Indias electricity Energy Minister Piyush recently said.
generation from renewable sources is Removing the distinction between small
estimated to be 17 per cent and is projected project (up to 25 MW) and large hydro
to rise to 25 per cent by 2022, and an addition targets aiming to increase the project can help India projecting that
impressive 40 per cent by 2030. As part installed renewable energy capacity, its installed renewable energy capacity
of its targets, India aims to reduce its including large hydro, to 225GW from 97GW would be 230 GW by 2022. Goyal further
emissions intensity by 33-35 per cent in August 2016.This transition would require said, I do believe that hydro power of
over the 2005 levels, by 2030. In 2014, it an additional investment of $128 billion, or all sizes and shapes should be consid-
announced aggressive renewable energy an annual investment of $21 billion. ered part of renewable energy.

PM Narendra Modi said to plan $3.1 billion boost for Indias solar factories

Prime Minister Narendra Modis the country by 2026. The policy, which is
government is planning a 210 billion-rupee being developed by the ministry in charge
($3.1 billion) package of state aid for of renewable energy and industrial policy,
Indias solar panel manufacturing industry. along with the NitiAayog government
Modi wants to raise renewable capacity to research group, will be presented to the
175 gigawatts by 2022 from 45 gigawatts Finance Ministry within a month before
at present. In addition to meeting its own going to the cabinet for final approval.India
energy targets, which Bloomberg New has become one of the biggest clients of
Energy Finance estimates may cost $200 Chinese photovoltaic manufacturers and in
billion, India wants to emulate industrial the absence of its own domestic capacity
developments in neighboring China, that reliance could potentially grow. In the
where solar manufacturers have created part of Modis Make in India campaign, first six months of 2016, India imported
a world-leading export industry. The is intended to create 5 gigawatts of 18 percent of Chinas production worth
Prayas program (Pradhan MantriYojana photovoltaic manufacturing capacity from $1.1 billion, according to Bloomberg New
for Augmenting Solar Manufacturing), 2019 and build 20 gigawatts of projects in Energy Finance.
November 2016
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NewsBriefs | Renewable International States


Chandigarh, Himachal, Uttarakhand to get cheapest power, Gujarat to costliest
Jharkhand loses steam for solar
a penny. The solar panels will be set up by power purchase agreements
third parties, which will sell power at these
prices in the two states and two Union
Territories. The Solar Energy Corporation of
India, a government-owned company that
has the mandate to develop the renewable
energy sector, had sought bids for setting
up 200 MW of solar panels on rooftops in
the country to sell power to residents of
buildings. Bids in Himachal and Uttarakhand
and the Union Territories of Chandigarh and
Residents of Chandigarh, Himachal Pradesh, Puducherry were the cheapest, while they
Puducherry and Uttarakhand will be able to were the costliest in Gujarat. The subsidy is Developers who won an auction of solar
buy solar poweratRs 3 per unit the lowest to the extent of Rs 52.5 per watt of installed project contracts in Jharkhand are still
tariff in India from panels installed on capacity for the special category states, waiting for the states government-run
their rooftops without having to shell out including the four regions. electricity distributor to sign power pur-
chase agreements (PPAs), six months after
Kerala to tap renewable energy to increase power production they emerged the successful bidders. The
March auction, with contracts for 1,200 MW
Annually spending a whopping Rs 6,000 of projects in 45 places up for grabs, was
crore to purchase power from outside, one of the largest single auctions to have
Kerala has decided to step up power ever been held in the country. Companies
generation through renewable energy that won the projects are waiting for the
sources like solar and windmill, a state Jharkhand BijliVitaran Nigam to sign the
minister has announced. State Minister for PPAs which they will need to arrange funds 57
Electricity KadakampallySurendran said from lenders and other sources. We have
in three years the state will generate 600 submitted all the necessary documents but
MW power through solar projects. Sixtyfive PPAs have not been issued, said one of the
per cent of the annual power requirements developers. The auction saw winning tariffs
of the state is sourced from outside the between Rs 5.08 and Rs 7.95 per kwH. This
state and with the Centre coming out with MW solar park is getting ready in Kasargode was fairly high compared with auctions in
new rules that 85 per cent of the power district and by January next year the first other states, where the winning tariffs this
generated in a state has to be utilised in the phase of 30 MW will become ready. We have year were Rs 4-5 per kwH. Solar radiation
state, we will now have to think of alternate identified a suitable land also in Kasargode in Jharkhand is relatively low and land
sources. And the best bet is going to be district and the proposal is to set up another prices high, which prompted the cautious,
solar and windmill, said Surendran. A 200 200 MW solar park. high bids, developers claimed.

Chhattisgarh to procure 700 MW renewable energy by 2018

Chhattisgarh will procure additional power energy sources. The agency will be installing
from renewable energy sources to the tune of a total of 10,000 submersible and surface
approximately 700 MW by FY 2018. With this, solar photo voltaic (SPV) irrigation pumps in
the average power purchase cost for Chhat- farm lands soon across the State. The SPV
tisgarh State Power Distribution Company Pumps shall be provided with lightening and
Ltd (CSPDCL) based on the above power over voltage protection. The principal aim in
availability will increase from 2.58 Rs/kWh this protection is to reduce the over voltage
in FY 2015-16 to 3.12 Rs/kWh in FY 2018. to a tolerable value before it reaches the
The rates have been derived based on cost PV or other sub-systems components. The
of power at existing rates and considering no source of over voltage can be lightening or
escalation in power purchase cost since it is any other atmospheric disturbance, officials
passing through for the distribution company. informed. Notably, the State government has
Notably, Chhattisgarh Renewable Energy ing infrastructure for solar power generation already commenced preparation for setting
Development Agency (CREDA) has invested which had resulted in 40 MW of electricity up 51,000 solar powered irrigation pumps in
Rs400 crores during last 11 years in develop- being generated from non conventional a span of two-and-half-years in the State.
November 2016
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NewsBriefs | Renewable International


IEA set to raise solar forecast
Brazil ready to help Pakistan in
installations will be significantly increased generating renewable energy
in the report, as it tries to accurately reflect
the renewed global efforts to cut carbon
emissions. The IEA has underestimated
growth in the renewables sector for over
ten years, which has seen a fair amount of
criticism aimed at the agency, which acts as
the worlds number one energy forecaster.
However, its annual mid-term report, which
is due at the beginning of November, will
Historically conservative in its forecasting increase previous estimates, and should Brazil Ambassador Claudio Raja
for the growth of renewable energies, the hopefully more accurately reflect the Gabaglia Lins has said that Brazil was
IEA appears to be ready to put an end genuine outlook for the sector. The main meeting 42 per cent of its energy needs
to that trend with its upcoming World reason for the change in the forecast is the through renewable resources and was
Energy Outlook report. The agency has recent developments in energy policies ready to help Pakistan in generating
revealed that estimates for solar and wind around the world. energy through wind, solar, ethanol,
biomass and other sources. Brazil was
Wind could supply fifth of world electricity by 2030 seventh largest economy of the world
and second largest in Latin America and
Wind power could supply as much as 20 Pakistan could achieve beneficial results
percent of the worlds total electricity by for its economy by enhancing coopera-
2030 due to dramatic cost reductions and tion with Brazil. The ambassador said
pledges to curb climate change, the Global that Brazil had achieved robust growth
Wind Energy Council (GWEC) said in a report. in agriculture and livestock sectors and
58 If last years Paris climate accord leads to Pakistan could improve its agriculture
a worldwide commitment to the decarbon- productivity by increasing coopera-
ization of the electricity sector, total wind tion with Brazil in this particular field.
power capacity could reach as much as 2,110 Many Pakistani products have excel-
gigawatts (GW) by then, nearly five times its lent potential in Brazilian market and
current level, the industry group said. Such pling its current capacity. The group said total Pakistani businessmen should step up
an increase in capacity would involve annual global wind power installations stood at 433 efforts to promote trade with Brazil, he
investment of 200 billion euros ($224 billion) GW by the end of last year, up 17 percent from added. He said that promoting direct
and would reduce carbon dioxide emissions a year earlier, and are set to rise by around 60 contacts between the private sectors of
by more than 3.3 billion tonnes per year, it GW in 2016. Much of the increase was driven both countries was the best approach to
said. It forecast that Chinas share of the total by China, which accounted for 145.4 GW at explore all untapped areas of potential
would reach 666.5 GW, more than quadru- the end of 2015, 33.6 percent of the total. cooperation.

Taiwan moves toward opening renewable energy market

A two-stage draft amendment to the Electric- The amendment is set for review by the
ity Act aimed at opening Taiwans renewable Legislative YuanTaiwans highest lawmaking
energy market and putting in place related bodybefore year-end. Lin Chuan-neng, direc-
regulatory and management measures was tor-general of the MOEAs Bureau of Energy,
approved Oct. 20 by the Executive Yuan. Dur- said liberalizing Taiwans renewable energy
ing the first stage, the nations energy industry market is key to fostering the emergence of a
will transform into a decentralized, localized viable green power industry. The government
and community-based one characterized by will maintain this momentum by implement-
a thriving green power production sector. The ing policies spurring private participation
second stage, which is to be implemented and investment, as well as streamlining
step-by-step, will see renewable and tradi- production and supply. According to Lin, the
tional generation facilities selling electricity to business unitsone for power generation and amendment is not expected to affect the rate
public power utilities, and consumers select- the other for delivery, distribution and sales for average electricity power consumption
ing their providers. Requiring state-owned is another central plank in the legislation per household, currently calculated at 330
Taiwan Power Co. to establish two separate proposed by the Ministry of Economic Affairs. kilowatt-hour by Taipower.
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ExpertSpeak
Energy storage to play key
role in grid stabilization
Prashant Panda, President, Solar Business, ACME Solar, feels
that as India expands its power capacity addition, both thermal
and renewable, it will need energy storage solutions to guard
against challenges arising out of grid stability. According to
Panda, Energy Storage can play key role in grid stabilization
through operations such as Frequency response, peak shaving
and time shifting.

Today, we can witness the change India seems to be on track to


in the countrys power sector. India achieve its ambitious target of
is expected to have surplus power having 40% of the
supply in financial year 2016-17 power gen- Grid
60 with the continuous addition of new eration from stability
power generating sources including renewable becomes a major Prashant Panda, President, Solar Business,
ACME Solar
renewable sources and also an sources by issue when there is
improved supply of coal to thermal 2030. substantial addition financing cost to reduce the debt
power plants which have a lions The of energy through burden and make more investments
share in total power generation game renewable in upgradation of infrastructure
scenario of our country. However, a changer for sources for transmission and distribution of
large populace of the country is still this transfor- power, and purchase more power
bereft from continuous supply of mation can be from renewable energy sources to
electricity and load shedding is still grouped into three broad categories. fulfill their renewable purchase
a perennial problem in many areas. First, the improved supply of fuel to obligation under the new National
Many rural localities are still waiting thermal power plants with an increase Electricity Policy.
to be connected to the main Grid. But of around 11% in coal production ACME has been an industry leader
with the impetus being given by the and the reverse auction of gas supply in solar power generation with an
government, to 24/7 supply to all, through price pooling of domestic operational capacity of 514 MW and
these ills will soon be overcome. produced gas and imported LNG more than 1.1 GW of power project
When we look back and see the to the once idle gas-based plants to under various stages of construction
transformation in the sector in the last generate power at affordable price. and implementation in different parts
decade where the country was reeling Second, the addition of new capacity of the country. We have committed to
under severe power crisis and the spot in both thermal and renewable energy the Government at the Re-invest 2015
price of power at exchanges touched sectors by giving clearances to Mega/ to develop 7500 MW of Solar Projects
a new height and the current scenario Ultra Mega thermal power projects during the five year period of 2015-19.
where the cost of power procurement and setting national goal of having Besides, generating 12000 Million
at exchanges is cheapest of the entire 175 GW of installed renewable Units of green and clean power
available power supply contract chain. energy capacity by 2022. And third, annually, these projects will also
India has an installed power by policy and regulatory support, create employment for nearly 4000
capacity of more than 305 GW, of where distribution companies which persons, directly and indirectly and
which renewable energy has a share were making high losses can make prevent Carbon Emissions of around
of more than 14%. At current pace, a turnaround by reducing their 10000 MT per year.
November 2016
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Today ACME is recognized as


the leading solar power developer in
India and expanding rapidly for global
footprint. We have been able to add
nearly 1100 MW of new Solar Projects
through bidding in various tenders
since April2015.

Energy storage technology


Energy Storage is one of the key
focus areas of ACME and we are
developing various customized solu-
tions to meet application specific
requirements. Growing level of inte-
gration of Renewable energy sources
on to the main Grid and given their
intermittent nature makes it impera-
tive to bring in Energy Storage solu-
tions (ESS) in Indian context. Grid
stability becomes a major issue when
there is substantial addition of energy
through renewable sources, which are
intermittent in nature. Energy Storage
can play key role in grid stabilization right solution for right application.
through operations such as Frequency
Energy forecasting Energy storage in this context is
61

response, peak shaving and time which could become not just a back-up power source that is
shifting. a major requirement used only when grid is not available.
Energy forecasting which could with increased level Storage element is not going to be
become a major requirement with operated in floating applications as
increased level of Renewable can
of Renewable can it is being used presently with the
be made possible by having ESS be made possible conventional storage technologies.
in place. Apart from the large scale by having ESS in However, Energy storage unit is
grid level storage systems, equal place. Apart from the subjected to a daily cycling when it is
importance has to be given towards used in conjunction with renewable
distributed storage systems at
large scale grid level sources or Electric Vehicles. This
residential and micro grid level that storage systems, brings a challenge of cyclic life for an
can also bring energy independence equal importance has energy storage unit. ESS shall have
to individual users. to be given towards the capability to be used either as an
Another important segment where Energy source for applications such
energy storage brings value is EV
distributed storage as grid and also as power source for
to building or EV to Grid. With systems at residential applications as in Electric Vehicle.
aggressive plans across the world to and micro grid level In this context, we see Lithium ion
introduce Electric Vehicles (EV), this that can also bring battery clearly emerging as a favorable
segment is going to clearly influence choice. Growing use of Lithium
the Energy storage markets. Energy
energy independence Battery in Electric vehicle is driving
storage uses various methods to to individual users the demand worldwide and bringing
store excess energy to be used at a its cost down. Benefits out of Electric
later time which in turn allows the depends primarily on the source of Vehicle industry can be utilized for
energy providers to balance between energy and the intended use. There Grid scale storage also.
the demand and supply. A number are a lot of competing technologies It is very important for the country
of devices and media are used to that are available to store the energy. to initiate few pilot projects, gain
store energy, while their selection However, it is important to choose a experience to deal with the grid scale
November 2016
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ExpertSpeak

storage systems. Though large scale frame regulations and policies around falling in line with the Governments
storage systems are already installed this segment. vision of creating smart cities. While
and operational in countries like It has also been observed that there are handful of applications and
Germany and Japan, we do not have distributed energy storage systems numerous advantages with Energy
any thing operational in India. While are already being considered for Storage solutions, it is important for
it is helpful to learn from what has ancillary services, particularly as a the authorities and industry to clearly
been installed already elsewhere in Primary Control Reserve, in some define the use cases, frame guidelines
the world, it is important to establish countries like Germany. This gives an and standards so that the segment can
proof of concepts in India. This helps additional facility for individuals to grow as an organized segment.
the industry to learn what challenges participate in ancillary services. This Realizing this impending need
are there in Indian context and also needs a smart grid to be available, of Energy Storage, ACME has
already installed Lithium Ion battery
Though large scale storage systems are already based Energy storage systems, and
established working examples in
installed and operational in countries like various segments like rural micro
Germany and Japan, we do not have any thing grids, Renewable integration at high
operational in India. While it is helpful to learn altitude areas and building solu-
tions. It is also giving that extra
from what has been installed already elsewhere push towards localizing PCS, EMS
in the world, it is important to establish proof and battery assembly in India under
of concepts in India. This helps the industry Make in India initiative.
to learn what challenges are there in Indian
context The views in the article of the author are personal
62 For suggestions email at feedback@infraline.com
November 2016
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InDepth
RPO compliance by Obligated
Entities need of the hour

63

A total of 9 states out of 16 reported a compliance level of less than 70 per cent last year
Questions of capital costs and consumer level prices need to be answered

By Team InfralinePlus

Ministry of New and Renewable Energy Honble Supreme Court (SC) of India of 9 states out of 16 including Uttar
(MNRE) along with all the State Renew- while upholding the applicability of Pradesh, Bihar, Madhya Pradesh and
able Development Agencies are speedily RPO regulations, put a greater thrust on Delhi reported a compliance level of
moving towards achieving the target of the fundamental duties of the citizens of less than 70 per cent (RPO compliance)
175 GW of grid connected RE power by India enshrined under the Constitution and have not met even half of their
2022 as part of Indias global commit- of India to protect and improve the RPO targets in the past two years. More
ments to the United Nations Framework natural environment (Hindustan Zinc recently, state electricity regulatory
Convention on Climate Change (UN- Ltd. vs. Rajasthan Electricity Regulatory commissions (SERC) in states such
FCCC) to combat climate change. Commission case). The SC empha- as Maharashtra and Tamil Nadu have
The Renewable Energy Certificate sized the impacts of global warming recently amended solar RPO norms
(REC) scheme in India aims to boost and securing environment for larger with upward revision and extension in
energy generation from renewable public interest in the realm of Article trajectory period. SERC in Tamil Nadu
sources and enable states (state dis- 51A(g) & Article 21 of the Constitution, has significantly increased solar RPO
tribution companies, DISCOMs) to provisions of Electricity Act, 2003, the norm from 0.5 per cent in 2015-16 to
cost-effectively meet their renewable National Electricity Policy of 2005 and 5 per cent in 2017-18, while SERC in
purchase obligations (RPOs), set by the National Tariff Policy of 2006. Maharashtra has gradually increased the
respective State Electricity Regulatory As per a study conducted by Indian RPO norm from 0.5 per cent last fiscal
Commissions (SERCs). Last year, the Energy Exchange (IEX) last year, a total to 3.5 per cent in 2019-20 fiscal.
November 2016
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InDepth

RE Targets for 2022 in capacity terms: State-wise Solar RPO


RE Source Solar Wind Small Hydro Biomass Total
requirement (as on 2021-22)
Capacity in MW 99,533 60,000 5,000 10,000 174,533 Solar RPO Solar RPO
State Required Required
(2021-22) (2021-22)
(%) (MW)
Domestically, there are questions of capital costs and Andhra Pradesh 8% 5357
consumer level prices that need to be answered. The Arunachal Pradesh 8% 42
governments ballpark figure suggests that $100 billion Assam 8% 801

of investment would be required to meet this solar pow- Bihar


Chhattisgarh
8%
8%
2969
2171
er capacity addition. Another number being bandied out Delhi 8% 1870
is INR 10 Lakh Crore of investment for 100 GW of solar Goa 8% 369
and 60 GW of wind power capacity addition by 2022 Gujarat 8% 9403
Haryana 8% 4030
Himachal Pradesh 8% 521
Current context Renewable Purchase Obligation Jammu & Kashmir 8% 1319
Indias renewable energy (RE) genera- (RPO): 8% of total consumption of Jharkhand 8% 500
tion capacity is around 43 GW (8.5 GW electricity, excluding hydro power, shall be Karnataka 8% 5961
from solar energy by March 2022 Kerala 8% 1429
- solar, 28 GW - wind, 4.3 GW - small-
To further support the ambitious of 100 Madhya Pradesh 8% 5636
hydro and 4.8 GW - biomass). There GW solar by 2022, the amendment Maharashtra 8% 12611
is increasing realization that RE can proposes an increase in solar RPO to 8%. Manipur 8% 118
be a major contributor in Indias future The increase could potentially support Mizoram 8% 76
80 GW of capacity addition between FY
energy mix. (Total installed capacity, as Meghalaya 8% 182
2016-2022 assuming an annual average Nagaland 8% 60
of September 30 2016: 306 GW; Coal: electricity demand growth of 8%. The Odisha 8% 2200
187 GW, Gas: 24 GW, Nuclear: 5.7 GW, present RPO regulations (EA 2003 and Punjab 8% 3917
Hydro: 44.2 GW, RES: 43.1 GW) NTP 2006) require RPO estimations
64 to be based on consumption, which
Rajasthan 8% 6556
Domestically, there are questions of Sikkim 8% 5
might have issues with the RPO
capital costs and consumer level prices Tamil Nadu 8% 8903
implementation. The amendment
Telangana 8% 4457
that need to be answered. The govern- needs to address the contradictions
Tripura 8% 123
ments ballpark figure suggests that $100 with EA, 2003. The amendment also
Uttarakhand 8% 561
exempts electricity sourced from
billion of investment would be required Uttar Pradesh 8% 13248
hydro sources from RPO obligations.
to meet this solar power capacity How the DISCOMs will get impacted
West Bengal 8% 4603
addition. Another number being bandied Chandigarh 8% 50
is yet to be understood. Also, it may
Daman & Diu 8% 189
out is INR 10 Lakh Crore of investment trigger another issue for discoms
under Ujwal Discom Assurance Yojana Dadar & Nagar
8% 502
for 100 GW of solar and 60 GW of wind Haveli
(UDAY) scheme.
power capacity addition by 2022. This Puducherry 8% 229
Total 100,000
does not include large costs of providing solar energy from the date of notifica-
Source: Ministry of New and Renewable Energy (MNRE)
grid evacuation and stability for the tion of this policy which shall be such
intermittent power supply. that it reaches 8% of total consumption July 22, 2016) enlists the yearly RPO
of energy, excluding Hydro Power, by trajectory for both non-solar and solar
Renewable energy March 2022 or as notified by the Cen- power purchase from the current year
provisions in the revised tral Government from time to time. till 2018-19. For non-solar, the targets
Tariff Policy: Provisions The calculation is based on certain are from 8.75 per cent to 10.25 per cent
related to Solar RPO assumptions on capacity utilization and solar is 2.75 per cent to 6.75 per
Under the amended provisions of the factor (CUF) including rooftop solar cent during same period. The target
National Tariff Policy (Para 6.4 1(i)), and growth in the total energy con- is to reach 17 per cent of total energy
it is stated that Long term growth sumption. This may further change consumption as listed above.
trajectory of Renewable Purchase depending on the actual growth in the
Obligations (RPOs) will be prescribed total consumption of energy in the Challenges
by the Ministry of Power in consulta- respective States. REC mechanism essentially seeks to
tion with MNRE and within the However, the order titled Guide- address the mismatch between availabil-
percentage so made applicable, to start lines for long term RPO trajectory of ity of RE sources and the requirement
with, the SERCs shall also reserve a Renewable Purchase Obligations (RPO) of the obligated entities to meet their
minimum percentage for purchase of for non-solar as well as solar (dated renewable purchase obligation across
November 2016
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states. However, experiences of REC Present Scenario of REC market


transactions in the past two years have No. of REC Redeemed
indicated that the some of the impedi- Opening RECs Closing
REC RECs retained Total
ments faced by the mechanism are due Month, Year Balance Redeemed Balance
Issued (B) by RE E=(C+D)
(A) through Power (F=A+B-E)
to procedural shortcomings in the exist- Exchanges (C)
Generators (D)

ing mechanism. RPO compliance is the September,


15926429 883041 193619 31129 224748 16584722
2015
biggest challenge facing the mechanism.
October,
State owned DISCOMs are mostly 16584722 522245 225293 36150 261443 16845524
2015
absent from the market; most of the November,
16845524 613071 319312 33484 352796 17105799
2015
participating DISCOMS, though small, December,
17105799 582625 960041 39019 999060 16689364
are mostly private. Lack of compliance 2015
and price uncertainty has also resulted January,
16689364 779010 401939 36707 438646 17029728
2016
in lenders shying away from financing February,
17029728 616491 676737 42330 719067 16927152
REC based projects. 2016
The main problem is that though March,
16927152 1005441 1266385 74240 1340625 16591968
2016
there is enough supply of RECs in the
April, 2016 16591968 367123 316110 52224 368334 16590757
energy exchanges, there is not enough May, 2016 16590757 687577 181941 30094 212035 17066299
demand as states are not forcing their June, 2016 17066299 508895 468441 2213 470654 17104540
utilities and industries to meet their July, 2016 17104540 139609 272980 13615 286595 16957554
RPOs. The trading has been lackluster August,
16957554 8456 - 0 16966010
2016
as there is no urgency for states to buy
Total 33287083 15610753 710320 16321073
REC until the end of the fiscal year in
March when they must meet their com- Table 1: REC Summary from Sep15 to Aug16
Source: Renewable Energy Certificate Registry of India website
pliance targets. This delay has led to low 65
trading of REC, which has made price
discovery difficult.

Conclusion
Energy policy development in India at
present is focused largely on improving
energy security in the country. With a
large proportion of the population still
not having proper access to electric-
ity, the countrys large dependency
on imported fuel and economic and
social impacts due to climate change
has driven the Government of India to
identify measures for harnessing renew-
able energy (RE) and energy efficient
measures for improving the countrys
energy security and efficiency. RPO
compliance by Obligated Entities (DIS-
COMs, CPPs, Open Access Consumers)
is the need of the hour to bring liquidity,
fresh investments and ultimately for the
promotion of a comprehensive market,
which will allow the government to
achieve its objective of declaring India
as a green powered economy in near
foreseeable future.

For suggestions email at feedback@infraline.com


November 2016
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StatisticsRenewableEnergy
1) Programme/ Scheme wise Physical Progress in 2016-17
FY- 2016-17
Cumulative Achievements
Sector Achievement (April -
Target (as on 30.09.2016)
September, 2016)
I. GRID-INTERACTIVE POWER (CAPACITIES IN MW)
Wind Power 4000.00 1305.50 28082.95
Solar Power 12000.00 1750.38 8513.23
Small Hydro Power 250.00 49.40 4323.35
BioPower (Biomass &
Gasification and Bagasse 400.00 51.00 4882.33
Cogeneration)
Waste to Power 10.00 7.50 115.08
Total 16660.00 3163.78 45916.94
II. OFF-GRID/ CAPTIVE POWER (CAPACITIES IN MWEQ)
Waste to Energy 15.00 2.24 162.40
Biomass(non-bagasse)
60.00 0.00 651.91
Cogeneration
Biomass Gasifiers 2.00 0.00 18.15
-Rural
8.00 2.40 166.64
-Industrial
Aero-Genrators/Hybrid systems 1.00 0.20 2.79
SPV Systems 100.00 48.13 361.98
Water mills/micro hydel 1 MW + 500 Water Mills 0.10 MW + 100 Water Mills 18.81
Total 187.00 53.07 1382.68
III. OTHER RENEWABLE ENERGY SYSTEMS
Family Biogas Plants (in Lakhs) 1.00 0.17 48.72
Source: MNRE
66

2) REC Trading Volume and Price for October 2016


Through IEX
Cleared
Buy Bids Sell Bids Cleared Price No. of Month of
REC Type Volume
Participants Auction
(Rec) (Rec) (Rec) (Inr/Rec)
Solar 19,932 2,300,940 19,932 3,500 477
October 2016
Non-Solar 157,273 8,269,834 157,273 1,500 847
Source: IEX

Through PXIL
Buy Bid Sell Bid MCP MCV
Month of
REC Type (No. of (No. of (INR / Certificate) (No. of certificate)
Auction
certificates) certificates) Qty. (MWH)
Non Solar 98048 4743346 1500 98048
October 2016
Solar 15676 1347938 3500 15676
Source: PXIL

3). Commissioning Status of Grid Connected Solar Power Projects as 30-09-2016


Total cumulative capacity Capacity commissioned in Total cumulative capacity
Sr. No. State/UT
till 31-03-16 (MW) 2016-17 till 30-09-16(MW) till 30-09-16 (MW)
1 Andhra Pradesh 572.97 374.08 947.05
2 Arunachal Pradesh 0.27 0.27
3 Bihar 5.1 85 90.1
4 Chhattisgarh 93.58 34.88 128.46
5 Gujarat 1119.17 17.14 1136.32
6 Haryana 15.39 15.39
7 Jharkhand 16.19 16.19
8 Karnataka 145.46 143.67 289.13
November 2016
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9 Kerala 13.05 13.05


10 Madhya Pradesh 776.37 34 810.37
11 Maharashtra 385.76 385.76
12 Odisha 66.92 66.92
13 Punjab 405.06 166.14 571.2
14 Rajasthan 1269.93 24.67 1294.6
15 Tamil Nadu 1061.82 493.59 1555.41
16 Telangana 527.84 433.95 961.79
17 Tripura 5 5
18 Uttar Pradesh 143.5 143.5
19 Uttarakhand 41.15 41.15
20 West Bengal 7.77 4 11.77
21 Andaman & Nicobar 5.1 5.1
22 Delhi 14.28 9.59 23.87
23 Lakshadweep 0.75 0.75
24 Puducherry 0.03 0.03
25 Chandigarh 6.81 6.81
26 Daman & Diu 4 4
27 J&K 1 1
28 Himachal Pradesh 0.2 0.2
29 Mizoram 0.1 0.1
27 Others data from rooftop 58.31 42.61 100.92
division cumulative
TOTAL 6762.85 1863.33 8626.18
Source: MNRE

4. State-Wise Waste Generation, Collection and Treatment Details


Quantity
S.No. States Generated Collected (TPD) Collected % Treated (TPD) Treated % 67
(TPD)
1 Andaman & Nicobar 70 70 100 5 7
2 Andhra Pradesh & Telangana 11500 10656 93 9418 82
3 Arunachal Pradesh 110 82 82 74 74
4 Assam 650 350 54 100 15
5 Bihar 1670 NR NR NR NR
6 Chandigarh 340 330 97 250 74
7 Chhattisgarh 1896 1704 90 168 9
8 Daman Diu, & Dadra 85 85 85 Nil 0
9 Delhi 8390 7000 83 4150 49
10 Goa 183 182 99 182 99
11 Gujarat 9227 9227 100 1354 15
12 Haryana 3490 3440 99 570 16
13 Himachal Pradesh 300 240 80 150 50
14 Jammu & Kashmir 1792 1322 74 320 18
15 Jharkhand 3570 3570 100 65 2
16 Karnataka 8784 7602 87 2000 23
17 Kerala 1576 776 49 470 30
18 Lakshadweep 21 - 0 - 0
19 Madhya Pradesh 5079 4298 85 802 16
20 Maharashtra 26,820 14900 56 4700 18
21 Manipur 176 125 71 - 0
22 Meghalaya 268 199 74 98 37
23 Mizoram 552 276 50 Nil 0
24 Nagaland 270 186 69 18 7
25 Orissa 2460 2107 86 30 1
26 Puducherry 495 495 100 Nil 0
27 Punjab 3900 3853 99 32 1
28 Rajasthan 5037 2491 49 490 10
29 Sikkim 49 49 100 0.3 1
30 Tamil Nadu 14532 14234 98 1607 11
31 Tripura 407 407 100 Nil 0
32 Uttar Pradesh 19180 19180 100 5197 27
33 Uttarakhand 1013 1013 100 Nil 0
34 West Bengal 8674 7196 83 1415 16
Total 1,43,449 1,17,644 - 32,871 -
Source: CPCB Report
November 2016
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OffBeat |ExpertSpeak
Delhi Metro: A road map to
sustainable transport
The Delhi Metro which is the worlds 12th largest metro
system in terms of both length and number of stations
is leading the way in sustainable transport. In this article,
Harveen Kaur, PhD Scholar, University of Delhi, discusses
various green and sustainable initiatives taken by Delhi Metro
and how it can serve as a role model for public transport
across the country.

Since metro transport systems are network has now crossed the bound-
quite capital-intensive projects, the en- aries of Delhi to reach Noida and
vironment sustainability of such sys- Ghaziabad in Uttar Pradesh, Gurgaon
tems is an important issue that needs and Faridabad in Haryana. It is
to be explored. This article examines important to highlight that Delhi
the sustainable approaches (conserv- Metro is the First metro
ing resources, energy security, and en- train system in the Harveen Kaur, PhD Scholar, University of Delhi
68 ergy efficiency) and green initiatives world to receive Delhi
taken by Delhi metro to build a low the Envi- metro Road map towards
carbon and an environmental friendly ronmental has been com- sustainable development
rail transport in India. Standard mitted towards the The DMRC contributes positively
ISO 14001 objectives spelt out towards Sustainable development
About Delhi Metro Project EMS under the National of India. The project activi-
The Delhi Metro Rail Corporation during the Solar Mission and ties thereby contribute towards
(DMRC) is headquartered in New construction sustainable use of sustainable development of the
Delhi, India. It was registered (in the phase itself. solar energy country.
year 1995) under Companies Act 1956 It has created
with equal equity participation from local skilled and DMRCs Solar Initiative
the Government of the National Capital semi-skilled employment opportunities Delhi metro has been committed to-
Territory of Delhi (GNCTD) and the for number of people in the capital. wards the objectives spelt out under the
Central Government. The Delhi Metro
has been instrumental in escorting Key highlights of Delhi Metro:
masses as a means of urban transporta- It carries 2.7 Million passengers a day
tion in India. Delhi Metro introduced
It is known to be most energy intensive (energy is being used for traction,
high-class, comfortable, air-condi-
i.e., for carrying passengers and maintaining conditioned air in the
tioned and environmentally sustainable
services for the first time in India and coaches) but very sustainable transport system
completely revolutionized the mass 56 % of energy is consumed by traction and the remaining 44 % by other
transportation scenario not only in the services
National Capital Region but in the The concern for sustainability is manifested in its Mission and Culture
entire country. DMRC today stands out statement itself i.e. to make Delhi Metro self-sustainable and during con-
as an outstanding example of Green struction it should neither cause inconvenience nor endanger public life
Metro over globe. nor should their work lead to ecological or environmental degradation.
Presently, the Delhi Metro network According to a study, Delhi Metro has helped in removing about 3.9 lakh
consists of about 213 Km with 160
vehicles from the streets of Delhi.
stations along with seven lines. The
November 2016
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DMRCS SUSTAINABLE POLICIES AT A GLANCE study for installing solar panels on the
Foot Over Bridges (FOBs) providing
connectivity to the commuters across
the National Highways has also been
Quality undertaken. It has already commis-
Policy
sioned 3 MW Solar Power Plants and
Waste aims to achieve 20 MW by 2017 and
Water
Managem 50 MW by 2021.
Policy
ent Policy
DMRCs Water Conservation
Initiative
S us tainable Delhi Metro is taking all possible
Policies of measures to rationalize its use of water
DMR C
Environmental Solar and recycle and reuse water as much
Policy policy as possible. In order to streamline the
water conservation measures of the
organization, a detailed water policy
has been put in place since 2013. In ad-
Swacch Energy dition to this, in 2014-15, Delhi Metro
Metro Manageme
also added 99 Rain Water Harvesting
Compaign nt Policy
pits at 37 locations with capacity of
990 CuM. Rain water harvesting struc-
tures have been installed at elevated
National Solar Mission and has been used for the lighting and other auxiliary stations, viaducts and depots. 69
proactively working towards sustain- requirements of the station and depot
able use of solar energy to harness buildings. In total, DMRC has so far Rain Water Harvesting
electricity for its operations. It has set commissioned solar power facilities Structures at Shastri Park
up roof top solar power plants at many with generation capacity of approx. Depot
of its stations. It has installed nine 2,800 kWp with plants at Dwarka Sec-
new solar power generation facilities tor 21, Anand Vihar, Pragati Maidan,
in the stations and the depot of the Metro Enclave, Yamuna bank station,
Badarpur Faridabad Metro corridor Yamuna bank depot, Faridabad RSS,
for partial fulfillment of the energy ITO, Ajronda depot and the Faridabad
requirements. The power generated is metro stations. In addition to this, the

S OC IAL INDIC ATOR


It has increased employment opportunities for semiskilled, skilled labour and professionals in the
Delhi Metro Rail Corporation (DMRC) in various capacities . The project activity thus contributes to
social well being Source: http://www.delhimetrorail.com/
watermanage.html

E C ONOMIC INDIC ATOR


It has reduced total energy consumption because of the increased efficiency achieved through Currently DMRC has 84 rain water
regenerative brakes system . It also reduces the dependence of host country on imported fossil
fuels. The job opportunities generated by the project activity also helps in improving the harvesting structures with 464 pits
economic status of those recruited for the project activity.
which have a total capacity of 8607.08
cum. In the FY 2016-17, DMRC
E NVIR ONME NTAL INDIC ATOR
It regenerates electricity which aids in reduction of CO 2 emitted to the atmosphere . The project had planned to install 24 new RWH
activity has also resulted in reducing SOx emissions and associated environmental degradation.
Replacing an equivalent amount of grid electricity by regenerated electricity, results in fossil fuels
systems with 107 pits with a total
conservation and increased availability of power from the northern grid for other needful
purposes .
capacity of 1350 cum. DMRC is also
exploring more possibility of mini-
TE C HNOLOG IC AL INDIC ATOR mizing fresh water consumption by
The technology being used in the project activity is environmentally safe and sound technology
for the application. The project activity by providing an environmental friendly technology for the
treating and reusing the waste water.
Delhi Metro Rail System in the country would serve as an example for other upcoming metros in
the country.
Waste water treatment is an
important initiative to be taken for the
November 2016
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OffBeat | ExpertSpeak

Installation of Solar Panels by Delhi Metro


Waste water treatment
is an important initiative
to be taken for the bet-
terment of the society
and for future genera-
tions. Treating waste
water and reusing the
treated water is an
important part of water
conservation effort.
Waste water treatment
is a process, wherein
the contaminants are
betterment of the society and for future DMRC has also taken a new step
generations. Treating waste water and towards recycling of waste water
removed from waste
reusing the treated water is an important by installing bio-digester tanks. In water to produce efflu-
part of water conservation effort. Waste bio-digester tank, a consortium of ent suitable for reuse
water treatment is a process, wherein the anaerobic bacteria acts as inoculum or discharge in waste
contaminants are removed from waste (seed material) to the bio-digester water drain
water to produce effluent suitable for and converts the organic waste into
reuse or discharge in waste water drain. methane and carbon dioxide. zation- Sustainable Green Initiative
70 It has installed Sewage Treatment Plants for carrying out plantation drives in
(STP) and Effluent Treatment Plants DMRCs initiative for different parts of the city. DMRC
(ETP) in depots & colonies resulting Conservation of Ecology plans to plant over 25,000 saplings
in reuse of water for horticulture and DMRC has a policy to plant 10 saplings voluntarily in the years to come. Tree
flushing of toilets.An Effluent Treatment for every tree that it removes. In order to plantation by DMRC has potential
Plant treats the waste water to remove ensure that the correct type of saplings capacity to sequester approximately
any toxic and non-toxic materials or are planted and maintained, DMRC has 5,500 t of CO2 and produce 12,400 t
chemicals from the waste water. A engaged the services of Forest Depart- of O2 per year.
Sewage Treatment Plant (domestic ment, Govt. of Delhi. All the expenses
waste water treatment) removes contam- for this are borne by DMRC. In order Tree Plantation Data for
inants from waste water and household to further expand the green cover in the DMRC Construction Phase 1,
sewage. Five depots of DMRC (namely National Capital, DMRC handed over 2&3
Sarita Vihar, Shastri Park, Yamuna a land area measuring 15 hectares (near Conservation of Ecology
Bank, Sultanpur and Khyber Pass along Shastri Park) to the Forest department Trees Trees Trees Trans-
with the residential colonies at Shastri for plantation activities. felled/cut Planted planted
Park, Sarita Vihar and Yamuna Bank) In addition, DMRC has also tied 31855 344251 6636
have been equipped with these plants. up with a non-governmental organi- Source: http://www.delhimetrorail.com/
otherdocuments/cop21.pdf
Tree Plantations done by DMRC
Going Green Initiative for
Buildings - Green Metro
Green Buildings are known to be
most environmentally efficient build-
ings. In India, Indian Green Building
Council (IGBC) certifies building as a
Green Building. Until now, there was
no norm in place that could certify a
Mass Rapid Transit System (MRTS) to
Source: http://www.delhimetrorail.com/enviroment.aspx be green. In order to develop a rating
November 2016
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Initiatives to Conserve Ecology


In order to develop
a rating system ap-
plicable to all metros,
DMRC and IGBC joined
hands and came up
with a Green Certifica-
tion norm for the very
Sources: http://www.greening.in/2013/05/delhi-metro-celebrates-world.html first time in the world,
Concept of Green Building for rating a MRTS to
Green Standards. This
MRTS Rating System
was launched by IGBC
on 4th September 2014
exclusively for Green
certification of Metro
System

the adverse health effect and


improve quality of indoor air, only
Low VOC paints, adhesives and
sealants are being used in the 71
buildings.
Water Efficient Fixtures: Low
water consuming fixtures like
Dual-flush WC, low flow taps etc
are installed at the stations.
Energy Efficient Equipments:
All the lift and escalators are
equipped with Variable Voltage
system applicable to all metros, DMRC materials or/and landscaped with Variable Frequency drives which
and IGBC joined hands and came up vegetation. consume less energy compared
with a Green Certification norm for the Landscape Plant Species: to conventional lift & escalators.
very first time in the world, for rating a The plant species used for the Faridabad metro stations have received
MRTS to Green Standards. This MRTS landscaping (wherever possible) highest green building rating and
Rating System was launched by IGBC of the stations are either native awarded the highest possible rating
on 4th September 2014 exclusively for or adaptive which consume less (platinum) for adherence to green
Green certification of Metro System. water and help in increased water building norms, by the Indian Green
All the upcoming Metro stations efficiency of the building. Building Council (IGBC), which has
under the Delhi Metro as part of its Insulated Building Envelope: To devised a rating mechanism for Metro
third phase are designed and being reduce heat gains in the stations stations and buildings on a scale of
constructed as Green Buildings with and improve energy efficiency, platinum, gold, silver etc for following
specific provisions for the conservation the walls, roof and windows are the green building specifications. Two
of energy as well as better CO2 saving, insulated. new recently opened Metro stations of
water saving and waste management Adequate Fresh Air: The Metro Delhi in Phase 3 Janpath and Mandi
arrangements. These station buildings stations are being designed to House, have also been awarded the
have following specific features: provide adequate fresh air as highest possible rating (platinum) for
Reduced Heat Island Effect: per ASHRAE 62.1-2004 through adherence to green building norms,
The roofs of the stations are ventilation system. by the Indian Green Building Council
either finished with high reflective Low VOC Paints: To reduce (IGBC).
November 2016
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OffBeat | ExpertSpeak

Operations in Green Building Metro has been certified by the United


Nations (UN)under the Kyoto Proto-
col as the First Metro Rail and Rail
based system in the world which will
get Carbon Credits for reducing Green
House Gas Emissions as it has helped
to reduce pollution levels in the city
by 6.3 lakh tons every year henceforth
helping in reducing global warming. It
has earned carbon credits worth about
Rs.47 crore annually for the next seven
years and with the increase in number
of passengers, this figure shall increase.
No other Metro in the world could get
the Carbon Credit for the above because
of the very stringent requirement of the
United Nations Body to provide con-
clusive documentary proof of reduction
in emissions. It is difficult to give docu-
mentary proof of the difference of energy
consumption of two scenarios, i.e. With
Source: www.masterspmc.com
Metro and Without Metro. Today about
18 lakh people travel in the citys Metro
72 Green House Emissions from different Modes of transport at Rail system which is completely non-
glance polluting and environment friendly and,
but for the Metro these people would
have traveled by cars, busses, two/three
wheelers etc which would have resulted
in emission of green House Gases such
as CO2, CO, HC, NOx, PM and SO2.

Conclusion
Delhi Metro is committed to energy
conservation, environment protection
and sustainable development which
is visible from its positive approaches
and efforts. It can be concluded that
every passenger who chooses to use
Metro instead of car/bus contributes
in reduction of emissions (approx. 100
gm of carbon-Co2for every trip of 10
km and therefore, becomes party to the
reduction in global warming). It has
set a bench mark performance against
worlds best Metros. In addition, DMRC
Source: http://www.delhimetrorail.com/greeninitiative.aspx
has taken initiatives for intermodal
last mile connectivity like Feeder Bus
Reduction in GHG Emission Had the Metro not been there, these Service, Grameen Seva from Metro
initiative people would have travelled by cars, Stations, Bicycle Service and Battery
Currently, about 25 lakh people travel buses, two- and three-wheelers, which Operated Taxis from stations.
by the Metro, which is a non-polluting would have resulted in higher emis- The views in the article of the author are personal
and an environment friendly system. sion of greenhouse gases. Thus, Delhi For suggestions email at feedback@infraline.com
November 2016
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Reports & Studies


Discom losses to halve by FY19: CRISIL

Ratings agency CRISIL estimates the are expected to fare better in UDAY
aggregate gap or loss of power distribution implementation and likely to be the biggest
companies (discoms) in the 15 states that beneficiaries. UP, Bihar and Jammu &
have joined the Ujwal Discom Assurance Kashmir are expected to be laggards. These
Yojana (UDAY) would more than halve to three states would account for almost
28p a unit by 2018-19. The gap, calculated two-thirds of the gap in FY19. Concerted
as average revenue realised minus average effort by them will be critical to narrowing
cost of supply, was 64p a unit in FY16. feeder separation, feeder and distribution the future gap. CRISIL says the energy
Consequently, aggregate losses of these transformer metering, and a poor record requirements of discoms are expected to
discoms are seen declining by 46 per cent, on other efficiency parameters. Also, with increase at a compound annual rate of
to Rs 20,000 crore from Rs 37,000 crore elections due in some within 12 months, seven per cent by FY19, compared with
now. The gap will still be well above the their room to raise rates is restricted. around four per cent till FY16. New signing
nil envisaged under UDAY, as some states Cross-subsidisation is also high. Says of long-term power purchase agreements
with very high aggregate technical and Gurpreet Chhatwal, business head, large (PPAs) seems unlikely, with 25,000 Mw of
commercial losses arent well prepared to corporates, at CRISIL: Rajasthan, capacities with already-signed PPAs to be
reduce it. The reasons include inadequate Haryana, Chhattisgarh, and Uttarakhand operational by FY19.

BRICS need additional $51 billion annually to meet renewable targets

finance institutions to channelize sufficient in catalysing funds. Overall, BRICS


private funds to meet the renewable countries have announced targets to add
energy capacity targets of BRICS nations. renewable capacity of nearly 500 GW over
Brazil, Russia, India, China and South time horizons ranging from 2020-2030.
Africa make up the grouping. The current Meeting these targets would require an
renewable energy targets of BRICS annual investment of around $ 177 billion. 73
countries require an additional annual In comparison, the investment in the
investment of USD 51 billion on average, renewable sector in BRICS countries in
BRICS countries will require additional which highlights the gap that may be 2015 was $126 billion, leaving an average
annual investment of $51 billion on filled by blended finance mechanisms, shortfall of USD 51 billion, the report
average to meet their current renewable IEEFA said. IEEFA said there are pockets said. With respect to India, IEEFA said
energy capacity addition targets, says in the renewable energy space such as the country requires around $26 billion
a report. The Institute for Energy residential rooftop segment that are riskier each year to meet its renewable capacity
Economics and Financial Analysis (IEEFA) and less attractive for private investments targets by 2022, including $5 billion
said that overall nearly $10 billion would and entities like the New Development annually to build a smart grid to handle
need to come in annually from public Bank (NDB) can play a crucial role higher production from renewable sources.

Increased coke prices to hurt steel makers: Fitch

A sharp increase in coking coal prices in Chinas Shanxi province, that reduced
since August 2016 could squeeze Indian supply, and a number of unplanned mine
steelmakers profitability and deepen their outages in Australia also supported the
financial risks, Fitch Ratings said. The risk, price rise. Increase in raw material costs
according to Fitch, will increase if high cok- for Indian steel producers could shrink
ing coal prices persist and domestic steel margins, if the cost rise is not passed on to
demand growth remains weak. Leverage consumers. For example, we estimate that
for producers such as Tata Steel and JSW a $ 50 per tonne increase in Tata Steels
Steel jumped in the financial year ending coking coal cost in 1QFY17 would have
March 2016, mainly due to poor profit- reduced consolidated EBITDA by around
ability, and sustained pressure on margins according to data from The Steel Index. 35%, if all else stayed the same. Similarly,
would hamper financial risk mitigation. A 125% hike in process. Prices rallied fol- JSW Steels 1QFY17 consolidated EBITDA
Prices for hard coking coal for export by lowing Chinas decision to limit coal mines would have fallen by around 25%. The
Australia as of 30 September 2016 were operating days to 276 a year, from 330 impact of higher coal costs would be offset
$100 per tonne higher than the average to restructure the sector and improve its if we assume price realisations for the two
in the quarter ended June 2016 (1QFY17), profitability. Others issues such as flooding companies were 5%-10% higher.
November 2016
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People in News
Cyrus Mistry removed as Tata Sons chairman, Ratan Tata returns New CMD for TSNPDCL
comprising Ratan Tata, Venu Srinivasan,
Amit Chandra, Ronen Sen and Kumar Bhat-
tacharyya was given the mandate of finding
a replacement for Mistry, 48, who became
chairman of the $103 billion conglomerate
in December 2012, at the end of Tatas over
two-decade tenure at the top. The board
was given four months to complete the task.
In the interim, the board has requested me
to perform the role of chairman and I have The Telangana Government recently
The board of Tata Sons Ltd has replaced agreed to do so in the interest of and reassur- appointed A. Gopal Rao as Chairman and
Cyrus P. Mistry as chairman, less than four ance to the Tata group, Ratan Tata, 78, said. Managing Director of Northern Power
years after he took the helm, and named his The development, which portends at least Distribution Company of Telangana Lim-
predecessor Ratan Tata interim chairman short-term turmoil, comes at a time when ited (TSNPDCL) Warangal. He will relieve
for four months.Tata Sons in its collective the conglomerate, whose business interests the incumbent K. Venkata Narayana from
wisdom and on the recommendations of the range from tea to telecom and salt to soft- the post. According to the orders issued
principal shareholders decided that it may be ware services, has been trying to recast or by in-charge Principal Secretary (Energy)
appropriate to consider a change for the long- dispose of the key UK steel business, which it Sunil Sharma, the appointment has been
term interest of Tata Sons and Tata group, acquired in a $12.9 billion purchase of Corus made following the resignation submit-
a spokesperson said.A selection committee Group Plc. in 2007 under Ratan Tata. ted by Mr. Narayana on health grounds.

Tata Group appoints Padmanabhan as HR head

from EY, had resigned following Mistrys Engineers (TCE), a wholly owned subsidiary
74 ouster as chairman of Tata Sons.The exit of Tata Sons. Under Rajan, the group had
of an HR head from an organization, which announced 27 weeks maternity leave policy,
is undergoing turbulence following the six months paid adoption leave and 15 days
sudden ouster of its chairman, can hit the paid paternity leave, in addition to other
morale of its people. For the Tata Group, policies around diversity and inclusion. Pad-
which employs over 6,60,000 people, manabhans experience in the field of HR
Padmanabhans appointment is thus critical comes mainly from a stint he served in Tata
at this juncture. Padmanabhan, who chairs Consultancy Services (TCS) as HR director.
the Tata Business Excellence Group, or His career with the Tata Group at senior
In a quick move to perhaps assuage anxiet- TBExG (earlier Tata Quality Management executive positions began with TCS in 1982,
ies among employees following the spat Services), had kick-started the process of and spans over 33 years. He was executive
between Ratan Tata and Cyrus Mistry, the taking the group towards overall business director (operations), Tata Power Company
Tata Group has appointed S Padmanabhan, excellence from the initial focus on quality. since 2008, and was responsible for the
a stalwart within the Tata ecosystem, as TBExG had set itself a target of enabling at profitable and sustainable operations of all
the new group chief of HR (CHRO). This least 25 Tata companies to achieve industry thermal and hydro generation plants across
was after Tata Groups former CHRO, N S leadership by 2025. Padmanabhan is also India and transmission and distribution
Rajan, who was brought in three years back chairman on the board of Tata Consulting systems in Mumbai.

Tata veteran S Ramadorai resigns from NSDA, NSDC


Tata veteran S Ramadorai has resigned former Tata Consultancy Services (TCS)
as chairman of the governments skill chief was appointed chairman of the skill
development agencies NSDA and NSDC development agencies in May 2013 with
sparking speculation that he might be a Cabinet rank. He is also the chairman
headed back to Indias largest conglomer- of Tata Institute of Social Sciences and
ate. Rohit Nandan, vice-chairman of the AirAsia India.His resignation triggered
governing body and secretary, ministry talk that he might be headed back to the
of skill development and entrepreneur- Tata Group where a search committee is
ship, has been appointed interim head of looking for a full-time chairman after the
the National Skill Development Agency board of Tata Sons ousted its first non-
till a full-time chairman is appointed. The family chairman, Cyrus Mistry, last month.
e T r ial!
Fre lable
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