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Nov 2017
The regulatory format is clearly getting tougher. Here are a few examples:
8Madhya Pradesh has proposed ranking of the available sources of generation based on the ascending order of prices, following the footsteps of Tamil Nadu and Rajasthan, which issued random backing down instructions.
8The move is not in line with the provisions of the Electricity Act, National Electricity Policy and National Tariff Policy to promote the use of energy from renewable sources by according it a “must run” status.
8Clearly, a shift to the merit order dispatch would push costly solar and wind power down the pecking order.
8In response to this, the Ministry of New and Renewable Energy (MNRE) issued fresh guidelines for competitive bidding for procuring solar power under which it proposed generation compensation for constraints and stressed on the “must-run” status for solar projects, alongside a stipulation that unilateral termination or amendment of PPAs for solar projects be disallowed.
8But states are not really listening.
8Due to the steep fall in solar tariffs in the past two years, UPERC issued letters to 15 solar power project developers with which contracts had been signed, to voluntarily agree to lower solar tariffs of INR7.02/kWh (US$10.8 c/kWh), the lowest price bid during the 2015 auction.
8Then again, a KERC order reduced wind tariffs from INR4.5/kWh (US$6.92 c/kWh) to INR3.74/kWh (US$5.75 c/kWh) for the 599 MW of signed wind projects pending before the regulator for approval. Of these, 273 MW have already been commissioned and supplying power to BESCO, HESCO and GESCO at the old tariffs.
8Andhra Pradesh, Tamil Nadu and Gujarat are the other states seeking to lower wind tariffs.
Click on Reports for more Details
8Madhya Pradesh has proposed ranking of the available sources of generation based on the ascending order of prices, following the footsteps of Tamil Nadu and Rajasthan, which issued random backing down instructions.
8The move is not in line with the provisions of the Electricity Act, National Electricity Policy and National Tariff Policy to promote the use of energy from renewable sources by according it a “must run” status.
8Clearly, a shift to the merit order dispatch would push costly solar and wind power down the pecking order.
8In response to this, the Ministry of New and Renewable Energy (MNRE) issued fresh guidelines for competitive bidding for procuring solar power under which it proposed generation compensation for constraints and stressed on the “must-run” status for solar projects, alongside a stipulation that unilateral termination or amendment of PPAs for solar projects be disallowed.
8But states are not really listening.
8Due to the steep fall in solar tariffs in the past two years, UPERC issued letters to 15 solar power project developers with which contracts had been signed, to voluntarily agree to lower solar tariffs of INR7.02/kWh (US$10.8 c/kWh), the lowest price bid during the 2015 auction.
8Then again, a KERC order reduced wind tariffs from INR4.5/kWh (US$6.92 c/kWh) to INR3.74/kWh (US$5.75 c/kWh) for the 599 MW of signed wind projects pending before the regulator for approval. Of these, 273 MW have already been commissioned and supplying power to BESCO, HESCO and GESCO at the old tariffs.
8Andhra Pradesh, Tamil Nadu and Gujarat are the other states seeking to lower wind tariffs.
Click on Reports for more Details
For reference purposes, the website is carrying here detailed calculations of projects costs of renewable energy projects
8The cost data is given here at different PLF and return on equity levels for a wind project with a tariff rate of Rs 2.65/kwh.
8Then again, the cost of a solar project at a tariff rate of Rs 2.64/kwh is also given here under different IRR and PLF levels.
8And there is a mis-match between solar and wind power costs.
8Also, the whole picture is not so bright for the faint hearted.
8The renewable energy industry has changed dramatically in the last few months. And perhaps for ever.
8Find our more on what is going on.
Click on Reports for more Details
8The cost data is given here at different PLF and return on equity levels for a wind project with a tariff rate of Rs 2.65/kwh.
8Then again, the cost of a solar project at a tariff rate of Rs 2.64/kwh is also given here under different IRR and PLF levels.
8And there is a mis-match between solar and wind power costs.
8Also, the whole picture is not so bright for the faint hearted.
8The renewable energy industry has changed dramatically in the last few months. And perhaps for ever.
8Find our more on what is going on.
Click on Reports for more Details
Returns are getting lower and latest auctions are showing an increase in the cost of power for solar projects.
8On the wind side, this quarter marked an important milestone, with wind tariffs becoming comparable to solar tariffs — INR2.64/kWh (US¢ 4.06) during the SECI 1 GW wind auction.
8This wind auction came seven months after the first auction when tariffs were INR3.46/kWh (US$ 5.3c/kWh), implying a price reduction of 24% in a relatively short time.
8While the sector has seen technological improvements (around hub-heights, rotor diameter etc.) and softening of interest rates, the underlying economics have not changed so substantially to warrant such a steep fall in prices.
8So what really happened?
Click on Reports for more Details
8On the wind side, this quarter marked an important milestone, with wind tariffs becoming comparable to solar tariffs — INR2.64/kWh (US¢ 4.06) during the SECI 1 GW wind auction.
8This wind auction came seven months after the first auction when tariffs were INR3.46/kWh (US$ 5.3c/kWh), implying a price reduction of 24% in a relatively short time.
8While the sector has seen technological improvements (around hub-heights, rotor diameter etc.) and softening of interest rates, the underlying economics have not changed so substantially to warrant such a steep fall in prices.
8So what really happened?
Click on Reports for more Details
This website had written in its pages about how share brokers and real estate adventurers had jumped into the grid-connected renewable energy bandwagon earlier, all expecting that their 25-year old PPAs will provide them a life time of steady returns.
8Well, that is no longer going to be the case. If the cost of power is too high, it will probably go unsold, the PPAs notwithstanding.
8And that is the rude message coming through now
8So where do these kind of players now go?
8Well, they have to go elsewhere
Click on Reports to find out where the next layer of renewable energy plants can come up where smaller players can get involved. Details
8Well, that is no longer going to be the case. If the cost of power is too high, it will probably go unsold, the PPAs notwithstanding.
8And that is the rude message coming through now
8So where do these kind of players now go?
8Well, they have to go elsewhere
Click on Reports to find out where the next layer of renewable energy plants can come up where smaller players can get involved. Details
For reference purposes the website carries here the following tenders:
8Tender for Supply, Erection, Testing and Commissioning of C & P panels and SCADA Equipments for 220KV Substation Details
8Tender for supplying,installing,testing & commissioning of 12 km LT ABC cable of size 3C×95+ 1×16+ 1×70 sq.mm on proposed poles on turnkey basis in IPDS Scheme Details
8Construction of foundation for equipments,cable trench,pathway,road, and development of switch yard by spreading of crushed stone and other allied work at 33/11KV Sub-station Under IPDS Scheme. Details
8Tender for Procurement of 220 KV and 132 KV Bus Bar Differential Protection Scheme Details
8Tender for supply of 11 KV (69 Nos.) & 33 KV (32 Nos.) Outdoor Current Transformers Details
8Tender for Annual rate contract for works of Yard management and other Miscellaneous work of CHP by providing Pay Loader,Dumper,JCB & Stone and Boulder Removal from CHP Area Details
8Tender for Drawing 11.5 Km 11 KV Line using Aerial bunched cable along the east side of highway from changankulangara to Oachira under DDUGJY scheme Details
You can also click on Tenders for more.
For reference purposes the website carries here the following Newsclips:
8Coal-based power generation may touch 441 GW by 2040: CIL chief Details
8Can Tata beat Adani in the renewable battle? Details
8Odisha show-cause notice for Rs 20,169 cr penalty on Coal India subsidiary Details
8Govt buildings in Goa to be solar powered by next year Details
8Coal India to take up clean coal technologies in a big way: Coal Secy Details
8Adani Transmission acquires RInfra WRSSS assets for Rs 1,000 cr Details
8EESL receives $454 mn funding from Global Environment Facility for energy efficiency programs Details
8JSW Energy net up 37% at Rs 297 cr in July-Sept Details
8Bihar seeks Rs 1,100 crore from Centre for power connections Details
You can also click on Newsclips for more Details
8Tender for Supply, Erection, Testing and Commissioning of C & P panels and SCADA Equipments for 220KV Substation Details
8Tender for supplying,installing,testing & commissioning of 12 km LT ABC cable of size 3C×95+ 1×16+ 1×70 sq.mm on proposed poles on turnkey basis in IPDS Scheme Details
8Construction of foundation for equipments,cable trench,pathway,road, and development of switch yard by spreading of crushed stone and other allied work at 33/11KV Sub-station Under IPDS Scheme. Details
8Tender for Procurement of 220 KV and 132 KV Bus Bar Differential Protection Scheme Details
8Tender for supply of 11 KV (69 Nos.) & 33 KV (32 Nos.) Outdoor Current Transformers Details
8Tender for Annual rate contract for works of Yard management and other Miscellaneous work of CHP by providing Pay Loader,Dumper,JCB & Stone and Boulder Removal from CHP Area Details
8Tender for Drawing 11.5 Km 11 KV Line using Aerial bunched cable along the east side of highway from changankulangara to Oachira under DDUGJY scheme Details
You can also click on Tenders for more.
For reference purposes the website carries here the following Newsclips:
8Coal-based power generation may touch 441 GW by 2040: CIL chief Details
8Can Tata beat Adani in the renewable battle? Details
8Odisha show-cause notice for Rs 20,169 cr penalty on Coal India subsidiary Details
8Govt buildings in Goa to be solar powered by next year Details
8Coal India to take up clean coal technologies in a big way: Coal Secy Details
8Adani Transmission acquires RInfra WRSSS assets for Rs 1,000 cr Details
8EESL receives $454 mn funding from Global Environment Facility for energy efficiency programs Details
8JSW Energy net up 37% at Rs 297 cr in July-Sept Details
8Bihar seeks Rs 1,100 crore from Centre for power connections Details
You can also click on Newsclips for more Details
8Generator manufactuter Cummins India faced a 11% fall in sales in Q2, 2017-18 while profits plunged 20% on account of the implementation of the GST. There were problems also from suppliers to Cummins. But the company claims that will be able to get over the bend quickly. Click on Reports for more
8Both coal production and coal-based power consumption has been going up over the last few months in the US. What could that imply? Click on Reports for the full set of data.
8There has been a reshuffle of portfolios in the Ministry of New & Renewable Energy. Click on Reports for more
8Tata Power Renewable Energy Ltd is growing rapidly using a mix of organic and inorganic growth. Click on Reports for more
8Chinese EPC companies backed by Chinese banks are powering in into the Indian mining sector. Click on Reports for more
8"India is back to growth. The dark clouds seem to have dissipated. But not entirely. Bureaucrats are still not taking timely decisions for fear of being charged with corruption. For the same reason some do not act expeditiously on even orders coming from the Union Cabinet. The administration of contracts by government agencies is still tardy, suffering from excessive dissecting to find reasons why not to act. And when action is forthcoming, it is often in violation of the contractual conditions. Contract administration needs reform. This needs support from the central and state governments if these are to be executed on time and with least cost overruns," claims the chairman of a big private sector power EPC company with an order book of over Rs 20,000 crore. Click on Reports for more Details
8Both coal production and coal-based power consumption has been going up over the last few months in the US. What could that imply? Click on Reports for the full set of data.
8There has been a reshuffle of portfolios in the Ministry of New & Renewable Energy. Click on Reports for more
8Tata Power Renewable Energy Ltd is growing rapidly using a mix of organic and inorganic growth. Click on Reports for more
8Chinese EPC companies backed by Chinese banks are powering in into the Indian mining sector. Click on Reports for more
8"India is back to growth. The dark clouds seem to have dissipated. But not entirely. Bureaucrats are still not taking timely decisions for fear of being charged with corruption. For the same reason some do not act expeditiously on even orders coming from the Union Cabinet. The administration of contracts by government agencies is still tardy, suffering from excessive dissecting to find reasons why not to act. And when action is forthcoming, it is often in violation of the contractual conditions. Contract administration needs reform. This needs support from the central and state governments if these are to be executed on time and with least cost overruns," claims the chairman of a big private sector power EPC company with an order book of over Rs 20,000 crore. Click on Reports for more Details
8Project Name: Thermal Power Station - FGD Addition
8Project Cost: Rs 500 crore
8Project Description: The owner is scheduled to install FGDs for Units 3 and 4 at it's 2000 MW (4x500 MW) thermal power plant. The company is expected to float tenders for the same. At present, feasibility studies and phasing plans are underway. The project is expected to kick off in late 2022. RFQs for supply and installation of FGDs are expected to be out by the fourth quarter of 2018.
8The major requirement will be FGDs, stacker and reclaimer, earth work, cranes, pipes, installation, gypsum disposal, wet lime among others.
8Project Event: RFQs for supply and installation of FGDs are expected to be out by the Q4 2018.
8Expenditure Approval: Q2:2018
8RFQ Date: Q4:2018
8Release Date: Q1:2019
8Start Date: Q4:2022
8Completion Date: Q2:2025
Click here for more information
8Project Name: Hydroelectric Greenfield Project
8Project Cost: Rs 4900 crore
8Project Description: The owner is carrying out the contracting activities for the 560 MW (4*140 MW) Hydroelectric Power Station. The company has already floated the contract for civil works in August 2017. However, to encourage bidder participation in the civil works package, the last date was extended and the HM & EM packages will now come out after the civil contract order is placed.
8Project Event: RFQs for hydro-mechanical works are likely to be floated in the first week of November 2017.
8Expenditure Approval: Sep/2014
8RFQ Date: 4/Nov/2017
8Release Date: Jan/2018
8Start Date: Jun/2018
8Completion Date: Jan/2024
Click here for more information
Details
8Project Cost: Rs 500 crore
8Project Description: The owner is scheduled to install FGDs for Units 3 and 4 at it's 2000 MW (4x500 MW) thermal power plant. The company is expected to float tenders for the same. At present, feasibility studies and phasing plans are underway. The project is expected to kick off in late 2022. RFQs for supply and installation of FGDs are expected to be out by the fourth quarter of 2018.
8The major requirement will be FGDs, stacker and reclaimer, earth work, cranes, pipes, installation, gypsum disposal, wet lime among others.
8Project Event: RFQs for supply and installation of FGDs are expected to be out by the Q4 2018.
8Expenditure Approval: Q2:2018
8RFQ Date: Q4:2018
8Release Date: Q1:2019
8Start Date: Q4:2022
8Completion Date: Q2:2025
Click here for more information
8Project Name: Hydroelectric Greenfield Project
8Project Cost: Rs 4900 crore
8Project Description: The owner is carrying out the contracting activities for the 560 MW (4*140 MW) Hydroelectric Power Station. The company has already floated the contract for civil works in August 2017. However, to encourage bidder participation in the civil works package, the last date was extended and the HM & EM packages will now come out after the civil contract order is placed.
8Project Event: RFQs for hydro-mechanical works are likely to be floated in the first week of November 2017.
8Expenditure Approval: Sep/2014
8RFQ Date: 4/Nov/2017
8Release Date: Jan/2018
8Start Date: Jun/2018
8Completion Date: Jan/2024
Click here for more information
Details
The website carries here the most comprehensive set of global data on renewable energy growth over the last few years
8The data sets were released last week by a global research agency.
8The data is given in terms of
8Solar and concentrated solar energy growth across all countries of the world along with global solar resources mapping
8Wind energy mapping has also been carried out globally along with wind country-wise wind energy capacity growth.
Click on Reports for more Details
8The data sets were released last week by a global research agency.
8The data is given in terms of
8Solar and concentrated solar energy growth across all countries of the world along with global solar resources mapping
8Wind energy mapping has also been carried out globally along with wind country-wise wind energy capacity growth.
Click on Reports for more Details
Thermal power capacity addition has fallen dramatically when compared to target in Q2, 2017-18.
8The private sector somehow has been able to reach its target
8But both central and state sector promoters have performed miserably, with no capacity addition at all.
8So all the capacity addition in the quarter came in only from the private sector
Click on Reports for more Details
8The private sector somehow has been able to reach its target
8But both central and state sector promoters have performed miserably, with no capacity addition at all.
8So all the capacity addition in the quarter came in only from the private sector
Click on Reports for more Details
EPC+O&M is the new trend in infrastructure projects
8The EPC industry has transformed from being a handful of large and complex projects to a multitude of small projects and sub contracts
8But EPC companies in India are extremely vulnerable to risks and there is no protection for them in the current Indian paradigm
8EPC business models are client specific, but new trends have emerged, away from the conventional approaches.
8New project monitoring technologies have come to the fore.
8The point to note is that local EPC companies are competent and cost-effective as compared to their foreign counterparts but there is a need for a lot of fine tuning to remain relevant in increasing competitive environment.
Click on Reports to know more about the state of the Indian EPC industry. Details
8The EPC industry has transformed from being a handful of large and complex projects to a multitude of small projects and sub contracts
8But EPC companies in India are extremely vulnerable to risks and there is no protection for them in the current Indian paradigm
8EPC business models are client specific, but new trends have emerged, away from the conventional approaches.
8New project monitoring technologies have come to the fore.
8The point to note is that local EPC companies are competent and cost-effective as compared to their foreign counterparts but there is a need for a lot of fine tuning to remain relevant in increasing competitive environment.
Click on Reports to know more about the state of the Indian EPC industry. Details
Here is an uplifting story of small time share trading company which set up a 5 MW solar power plant and jumped into another league altogether.
8To the company's good fortune, it has a good 25-year old PPA going with a solvent utility
8While the turnover is steady, profits are up and the gearing has improved too.
Click on reports for more Details
8To the company's good fortune, it has a good 25-year old PPA going with a solvent utility
8While the turnover is steady, profits are up and the gearing has improved too.
Click on reports for more Details
The survey has found that there is indeed a minimum average spend on cooking fuel among the poor.
8The figure, however, is lower than the refill price of an LPG cylinder.
8If the government finds the cost of plugging the subsidy gap too high or finds it problematic to put the distribution infrastructure in place, going electric through distributed renewable energy systems can be an ideal solution.
8If carbon footprints are also taken cognizance of, green energy can be a better solution than going through the LPG route.
8Policy planners are still drawing a blank when handling data on energy consumption at the disaggregated level in India.
8The country is too vast and measurement tools are still very antiquated.
8Household energy usage data is rare to find and there are not many policy makers working to figure out how to keep kitchen fires burning in a safe and cost effective way among India's beleaguered poor.
Click on Reports for more Details
8The figure, however, is lower than the refill price of an LPG cylinder.
8If the government finds the cost of plugging the subsidy gap too high or finds it problematic to put the distribution infrastructure in place, going electric through distributed renewable energy systems can be an ideal solution.
8If carbon footprints are also taken cognizance of, green energy can be a better solution than going through the LPG route.
8Policy planners are still drawing a blank when handling data on energy consumption at the disaggregated level in India.
8The country is too vast and measurement tools are still very antiquated.
8Household energy usage data is rare to find and there are not many policy makers working to figure out how to keep kitchen fires burning in a safe and cost effective way among India's beleaguered poor.
Click on Reports for more Details
The largest ever government-sponsored field study on LPG coverage across India has come out with a startling set of facts:
8Bulk of the rural poor access a lot of free fuel such firewood and cow dung to keep the kitchen fires burning
8A lot of them find the initial cost of acquiring LPG and the renewal cost to be far too high
8Then again, all of them say that the distribution infrastructure is not in place to ensure time refills.
8The point to note is that the poor in India cannot afford LPG even at current subsidized prices
8Subsidies have to be raised further, instead of bringing them down. That is the startling truth.
8The survey also nails the lie that the oil marketing companies have adequate distribution infrastructure in place.
8These findings fly against the government's assertion that it will be able to eventually universalize LPG cover across its vast population.
8It will not happen soon. Not in the way it is planned and implemented today.
Click on Reports to download the full survey. Details
8Bulk of the rural poor access a lot of free fuel such firewood and cow dung to keep the kitchen fires burning
8A lot of them find the initial cost of acquiring LPG and the renewal cost to be far too high
8Then again, all of them say that the distribution infrastructure is not in place to ensure time refills.
8The point to note is that the poor in India cannot afford LPG even at current subsidized prices
8Subsidies have to be raised further, instead of bringing them down. That is the startling truth.
8The survey also nails the lie that the oil marketing companies have adequate distribution infrastructure in place.
8These findings fly against the government's assertion that it will be able to eventually universalize LPG cover across its vast population.
8It will not happen soon. Not in the way it is planned and implemented today.
Click on Reports to download the full survey. Details
For reference purposes the website carries here the following tenders:
8Tender for Supply of 220 kV, O/D type CT of 5 Core having 0.2 Accuracy class & Ratio 800-400 Amp (77 Nos) & 600-300 (02 Nos) Details
8Tender for Supply,Drawing,Testing and Commissioning of 5.1 KM HT Aerial Bunched cables at various Locations under RAPDRP Scheme on turnkey basis Details
8Tender for supply of 100A (Qty.-915 Nos) & 200A (Qty.-4260 Nos) LT re-wirable type porcelain fuse unit with ALCO washer Details
8Tender for supply of 6 KM 33 kV 3×300 Sq.mm XLPE UG Cable Details
8Tender for work of overhauling and servicing of 220kV DB isolators and 400kV Pantograph Isolator at 400kV substation & other works Details
8Tender for Fabrication, Galvanizing, Supply & Erection of Tower parts of Narrow base suspension (A-type) 220 kV Towers with GI nuts & bolts and strengthening of Chimney Details
8Tender for Supply of 220 kV, 1600Amp isolator with earth switch (Min.43 Nos) for 220kV Sub-station. Details
You can also click on Tenders for more.
For reference purposes the website carries here the following Newsclips:
8Maharashtra: Amnesty scheme to recover power dues from farm sector Details
8Return Seven Hydel Projects to J&K to Make State Self-Reliant, RTI Activist Demands Details
8Decline in installation cost to drive growth of renewables Details
8High GST rate on batteries to hit government's e-vehicle drive Details
8Core sector growth hits 6 month high of 5.2 per cent in September Details
8India must encourage hydro power projects development: R K Singh Details
8Tata Power Renewable Energy commissions 30 MW solar plant in Maharashtra Details
You can also click on Newsclips for more Details
8Tender for Supply of 220 kV, O/D type CT of 5 Core having 0.2 Accuracy class & Ratio 800-400 Amp (77 Nos) & 600-300 (02 Nos) Details
8Tender for Supply,Drawing,Testing and Commissioning of 5.1 KM HT Aerial Bunched cables at various Locations under RAPDRP Scheme on turnkey basis Details
8Tender for supply of 100A (Qty.-915 Nos) & 200A (Qty.-4260 Nos) LT re-wirable type porcelain fuse unit with ALCO washer Details
8Tender for supply of 6 KM 33 kV 3×300 Sq.mm XLPE UG Cable Details
8Tender for work of overhauling and servicing of 220kV DB isolators and 400kV Pantograph Isolator at 400kV substation & other works Details
8Tender for Fabrication, Galvanizing, Supply & Erection of Tower parts of Narrow base suspension (A-type) 220 kV Towers with GI nuts & bolts and strengthening of Chimney Details
8Tender for Supply of 220 kV, 1600Amp isolator with earth switch (Min.43 Nos) for 220kV Sub-station. Details
You can also click on Tenders for more.
For reference purposes the website carries here the following Newsclips:
8Maharashtra: Amnesty scheme to recover power dues from farm sector Details
8Return Seven Hydel Projects to J&K to Make State Self-Reliant, RTI Activist Demands Details
8Decline in installation cost to drive growth of renewables Details
8High GST rate on batteries to hit government's e-vehicle drive Details
8Core sector growth hits 6 month high of 5.2 per cent in September Details
8India must encourage hydro power projects development: R K Singh Details
8Tata Power Renewable Energy commissions 30 MW solar plant in Maharashtra Details
You can also click on Newsclips for more Details
