Issue13, August 2014 www.facebook.com/powersectoratglance

….The Power Newsletter

P O W E R S E C T O R P O W E R S E C T O R P O W E R S E C T O R at a G L A N C Eat a G L A N C Eat a G L A N C E

1 News at a Glan ce

India's wind power potential over one lakh MW: Piyush Goyal

An assessment by the MNRE has estimated that the total

wind power potential of India was over one lakh MW. A

wind resource assessment programme has been imple-

mented by the ministry through the Centre for Wind En-

ergy Technology ( C-WET) to estimate the wind potential

in the country and identify suitable sites of installation of wind power

programme.

A total of 790 sites have so far been assessed in view of wind potential

programme availability. A total wind power potential in the country

has been estimated at 1,02,788 MW at 80 M hub height. Source: ET, Dated: 31/07/2014

Rajasthan to become self-sufficient in power generation in 4

months: Gajendra Singh Kheenvsar.

Rajasthan govt. said the state will not only become self-reliant in power

generation but also provide electricity to neighboring states after 4

months from now.

A sum of Rs 1,852 cr granted under the 12th Plan would be spent for

giving power to village. The Minister said that the govt would strength-

en power distribution system by containing theft and losses so that

round the clock electricity could be provided to domestic consumers.

Kheenvsar said he was touring the state to review the power situation

and so far he has covered 15 districts out of 33. After the tour, a new en-

ergy policy and a master plan would be prepared. Source: ET, Dated: 01/08/2014

Target of 29,800 MW of electricity from renewable sources

The govt said it has set a target of capacity addition of 29,800 MW of

power from various renewable energy sources during 12th Plan period.

Piyush Goyal told the Rajya Sabha that Rs 19,113 cr has been provided

for promotion and generation of renewable energy during the Twelfth

Five-Year Plan period.

The target comprises of 15,000 MW from wind, 10,000 MW from solar,

2,100 MW from small hydro and 2,700 MW from bio-power. Source: ET, Dated: 04/08/2014

Piyush Goyal asks CIL for action plan to augment

output by 150 million tonnes

Piyush Goyal has directed state-owned CIL and its subsid-

iaries to submit an immediate action plan to augment their output by

150 MT within a year. The Minister has asked coal companies to evolve

a mechanism for augmentation of production and the requisite quantity

and quality to be supplied to the power stations, which has already

been set up. State-owned CIL, which accounts for over 80 % of domestic

coal production, achieved an output of 33.1 MT in July, missing its tar-

get of 35.80 MT.

CIL had missed its output target of 482 million tonnes for 2014-14, pro-

ducing 462 MT during the period. Production fell short of target be-

cause of various reasons, including lack of environment clearance to

coal mining projects. Source: ET, Dated: 05/08/2014

Centre must work in tandem with states in hydropower: PwC In order to achieve hydropower generation capacity target, the Centre

needs to work in collaboration with other Ministries, departments and

State Govt. PwC report titled 'Hydropower in India - Key enablers for

a better tomorrow', the sector is facing several challenges, including fi-

nancing, inadequate enabling infrastructure and regulatory hurdles.

Ministries, departments and State Governments need to work together

collaboratively and efficiently, in a coordinated way, to achieve policy

goals and capacity addition targets. Alignment of processes, structures

and institutional framework is necessary to achieve this.

Govt. needs to ensure that inter-state agreements for water-sharing

must be in place to avoid disputes. A National River Authority of India

may be constituted to improve river management, address inter-state

disputes and for integrated river basin development. Favorable tax

treatment, especially at the early stage of projects, will reduce project

cost and help secure cheaper financing. Source: ET, Dated: 05/08/2014

25-yr-old power plants to be replaced: Govt. All power plants which have completed 25 years of

operations will be replaced with modern and environ-

ment-friendly ones to enhance production capacity.

Centre has framed a guideline to replace all old power

plants in a phased manner as their production capacity has slowed

down.

Frequent breakdowns, inefficiency and pollution are the main reasons

behind the decision to replace the old power plants with modern and

environment friendly ones in a phased manner.

Out of these, 71 schemes aggregating to 38,740 MW were concurred and

the Detailed Project Reports of 27 of hydro schemes with an aggregate

installed capacity of 7,730 MW have been returned to the project au-

thorities for re-submission after compliance of various observations of

News At A Glance

07 07 POWER SCENARIO IN CHPOWER SCENARIO IN CHILEILE

08 08 SUPERCRITICAL CFBC TSUPERCRITICAL CFBC TECHNOLOGYECHNOLOGY

12 SMART GRID ROADMA12 SMART GRID ROADMAPP--INDIAINDIA

1010 OPEN ACCESS FEASIBILOPEN ACCESS FEASIBILITY IN BIHARITY IN BIHAR

14 POWER TRADING UPD14 POWER TRADING UPDATESATES

15 TESTIMONIALS15 TESTIMONIALS

2 News at a Glan ce

CEA, Central Water Commission, Geological Survey of India and other

appraising agencies.

Source: ET, Dated: 07/08/2014

Power Grid Corp to invest Rs 477 cr in two transmission projects Power Grid Corp has received approval of its board for investing Rs

477.24 cr in two transmission projects. The utility will invest Rs 288.49

cr for 'System Strengthening in Southern Regional Grid. Another Rs

188.75 cr would be put in for 'Transmission System for Connectivity for

NCC Power Projects Ltd (1,320 MW)'. Source: ET, Dated: 08/08/2014

Floating solar panel to come up at Rajarghat of Kolkata by No-

vember

The country's first floating solar power panel will

come up on a waterbody beside the Eco Park at Rajar-

ghat New Town. A 15KW solar power generating pan-

el would be set up on a waterbody located beside Eco

Park in New Town. The project will be implemented

under central funding by the Arka Ignou College of Renewable Energy.

It will be the country's first floating solar panel to be executed under

central government funding of Rs 40 lakh.

The New Town Kolkata Development Authority (NKDA), early next

year, will also set up a canal-top solar power panel on a link-up canal

flowing near Eco Park that will generate 500KW solar power every day. Source: ET, Dated: 11/08/2014

29 hydro power projects await CWC evaluation: Piyush Goyal

As many as 29 hydro power projects with an overall capacity of 10,000

MW are awaiting appraisal from the Central Water Commission. As per

the existing guidelines of CWC for multipurpose projects, appraisals

are to be completed within 6 months for the states where the Central

Design Organisation (CDO) exists.

It is 12 months for those states where CDO does not exist. Appropriate

compliance of observations issued on different aspects has to be com-

plied with by the concerned project developer.

Ten projects aggregating an installed capacity of 1159.5 MW are multi-

purpose water resource projects having both irrigation and power com-

ponent. Once all the aspects are approved by the appraising groups or

agencies, CEA endeavors to accord concurrence as far as practicable

within a period of 90 working days. Source: ET, Dated: 11/08/2014

Govt. aims to add 10,000 MW per year to lift wind energy sector

The govt. plans

to rapidly accel-

erate wind ener-

gy generation,

adding an am-

bitious 10,000

MW every year,

or five times the

total new capac-

ity that came up

in the last fiscal.

Wind energy,

which had been

overshadowed

by solar projects

in recent years,

got a big boost

as the govern-

ment has re-

stored key tax

incentives that had helped India emerge as one of the top countries in

the world in generating electricity from wind. The govt. feels that tax

incentives coupled with conducive environment will rapidly accelerate

wind energy. At a recent meeting with turbine makers and other stake-

holders Piyush Goyal suggested to add 10,000 MW of wind power in-

stallations annually. According to Indian Wind Turbine Manufacturers

Association (IWTMA) proposed target is achievable as the country has

capacity to manufacture close to 9,500 MW of wind turbines and it can

be expanded in short period.

Source: ET, Dated: 12/08/2014

News at a Glan ce A

dve

rtise

men

t

3 News at a Glan ce

Monsoon reduces peak power shortage in July to 3.9%

Lower demand for electricity due to monsoons led to a fall in the coun-

try's peak power deficit to 3.9 % last month.

CEA provides assistance to the Ministry of Power in all technical and

economic matters. As monsoon picked up in July, electricity demand

moderated throughout the country by almost 3,000 MW. So with same

level of supply as in June, the July power deficit has come down. The

total electricity demand of the country during July was 1,45,014 MW, of

which 1,39,320 MW was met, leaving a gap of 5,694 MW. Source: ET, Dated: 12/08/2014

Adani Power buys Lanco Infratech’s Udupi thermal power plant Adani Power has acquired Lanco Infratech's 1,200 mw Udupi thermal

power plant in a Rs 6,000-cr transaction, marking the second mega deal

in two and-a-half weeks for the sector that is seeing a spurt of fund-

raising and M&A activity after being down in the dumps for years.

The deal, the largest in thermal power in terms of value and capacity,

catapults the Adani Group, already India's biggest private sector power

producer, to a bigger league with a capacity of nearly 10,000 mw while

helping Lanco reduce debt. Lanco Infratech, which has a market capital-

isation of Rs 2,054 cr, said it will receive Rs 2,000 cr in cash and transfer

debt of about Rs 4,000 cr to Adani. Source: ET, Dated: 13/08/2014

PM Narendra Modi dedicated Raichur-Solapur transmission

line to nation development

Narendra Modi dedicates to the nation the Raichur-Solapur transmis-

sion line in Maharashtra, which will augment inter-regional capacity

through synchronisation with the southern grid.

The commissioning of one 765kV Raichur-Solapur

transmission line by Power Grid Corporation and syn-

chronous interconnection of Southern Regional grid

with the rest of the grid was achieved in December

2014. The second 765kV Raichur-Solapur transmission

line implemented through private sector participation

has been completed on June 30, 2014, with guidance from Power Grid.

With both the transmission lines now in operation, the interconnection

has helped in achieving a pan-India synchronous grid of 2,49,000 MW,

one of the largest synchronous operating grids in the world. Source: ET, Dated: 14/08/2014

MERC grants 25-year power distribution licence to Tata Power

In a major decision, state electricity regulator MERC has granted 25 yrs

distribution licence to Tata Power for supplying power in city and sub-

urban areas. MERC in its order has allowed Tata Power Company

(TPC) to supply electricity in Mumbai city, parts of suburban areas in-

cluding Bandra to Dahisar in Western suburbs; Chunabhatti to Vikhroli

and Mankhurd in Eastern suburbs for 25 years.

It has also been granted licence to supply electricity in areas of Mira-

Bhayander Municipal Corporation, Chene and Versova which were ear-

lier not a part of its licence area. Source: ET, Dated: 15/08/2014

Welspun to invest Rs 15,000 crore in solar, wind energy seg-

ments

Welspun Group solar power is betting big on the sector and has plans

to invest Rs 15,000 cr to take its capacity to 1.75 GW over the next 3 yrs.

It has two subsidiaries in the energy space - Welspun Renewables Ener-

gy and Welspun Energy one for the solar and the wind respectively.

The private equity of the Asian Development Bank had recently picked

around 11 % in the latter for USD 50 million. Most of this fresh invest-

ment will be in solar space, the company will be focusing on Andhra

Pradesh, Maharashtra, Punjab and Rajasthan. On the wind side, the

company is planning to have 120 MW by the end of this fiscal itself. Source: ET, Dated: 15/08/2014

Power capacity addition nearly doubles in April-July 2014

Power generation capacity addition almost doubled to 4,998 MW dur-

ing April and July this year compared to year-ago period. During the

first four months of the last financial year (April-July 2014) 2,512 MW of

power was added, which rose to 98.98 per cent in the same period this

year at 4,998.44 MW. Source: ET, Dated: 17/08/2014

Piyush Goyal announces 2,000 MW solar project for Punjab The Centre has decided to set up a 2,000 MW solar power plant in Pun-

jab on the request of state's chief minister Parkash Singh Badal.

Goyal told the chief minister that REC and PFC will jointly provide Rs

400 cr to the state govt to install smart electricity meters in Punjab, add-

ing that the state will have to provide the remaining Rs 100 cr for the

project. He also asked the state government to give his ministry a com-

prehensive proposal for the use of imported coal with low ash content

in place of indigenous coal. Source: ET, Dated: 19/08/2014

Tata Solar to supply 1 lakh solar panels for Jawaharlal Nehru

National Solar Mission project in Rajasthan

Tata Power Solar (TPS) will supply 1 lakh domestically manufactured

solar panels to ACME's 20 MW Jawaharlal Nehru National Solar Mis-

sion (JNNSM) project in Rajasthan. TPS has won one of the largest DCR

orders of JNNSM phase-2 batch-1. The company will supply the entire

module requirement for the 20 MW (AC) project to be built by ACME

Solar, a leading solar power developer in India.

1,00,000 modules, constituting 60,00,000 cells, needed for the project

will be manufactured at TPS' state-of-the-art manufacturing facility in

Bangalore. Stating that ACME Solar, during the JNNSM bidding last

year, won projects totaling 100 MW, TPS said of this, 20 MW, under Do-

mestic Content Requirement (DCR) policy of MNRE, needs to be con-

structed using cells and modules manufactured domestically. ACME

Solar is a three-way joint venture between ACME, EDF Energies

Nouvelles (EDF EN), the renewable energy arm of French state-run

electricity utility Electricite de France S.A., and Luxembourg-based nat-

ural resources saving group EREN. Source: ET, Dated: 21/08/2014

PM Narendra Modi: Working to provide 24*7 power; responsi-

bility of citizens to conserve electricity

The govt. is working to ensure the provision of 24-

hour electricity for all. The effort is to ensure that in

the coming years the villages and poor of India have

access to 24 hours electricity.

Stressing on the need to focus on infrastructure devel-

opment, Modi said, "For any nation to develop, the focus has to be on

infrastructure. When we focus on infrastructure, the chances of devel-

opment increase." Source: ET, Dated: 21/08/2014

Piyush Goyal stays clear of issue of anti-dumping levy on solar

gear

Staying clear of the demand for imposition of anti-dumping duty on

solar equipment imports, Piyush Goyal said the ministry concerned

will take an appropriate decision on the matter. To protect the strug-

gling domestic industry, the Ministry of Commerce and Industry in

May had recommended imposing a restrictive duty in the range of

$0.11-0.81 per watt on solar cells imported from the US, China, Malaysia

and Chinese Taipei.

While the designated authority in the Department of Commerce recom-

mends the anti dumping duty, provisional or final, it is the Ministry of

Finance which acts upon such recommendation within three months

and imposes levies. Source: ET, Dated: 22/08/2014

News at a Glan ce

4 News at a Glan ce

Coal block allocations from 1993

‘illegal’ The Supreme Court on 25 August, 2014

declared 218 coal-block allocations made

between 1993 and 2010 as illegal and ar-

bitrary. The entire allocation of coal

blocks as per recommendations made by

the Screening Committee from July 14,

1993, in 36 meetings, and also the alloca-

tion made through the Government dis-

pensation route, suffers from the vice of

arbitrariness and legal flaws.

Though the judgment implies that the

allocations should be cancelled, the

Bench said the consequences of declaring

them illegal would be considered on

September 1, taking into account the in-

vestments made by companies for vari-

ous projects and the procedure to be

adopted for cancellation.

Explaining the judgment, the Bench said:

“The Screening Committee has never

been consistent, it has not been transpar-

ent, there is no proper application of

mind, it has acted on no material in

many cases, relevant factors have sel-

dom been its guiding factors, there was

no transparency and guidelines have sel-

dom guided it.”

The Bench disposed of writ petitions

filed by advocate ML Sharma and Com-

mon Cause challenging the allocation of

218 coal blocks ( including 41 de-

allocations and re-allocations), of which

105 were to private companies, 99 were

to state-owned firms, 12 went to ultra

mega power projects (UMPP) and two to

coal-to-liquid projects.

Dispensation route criticised

The Bench said, “The Government dis-

pensation route whereby public sector

corporations and undertakings were al-

located coal blocks, and a Joint Venture

Company has been further allowed to

enter into Mine Development Operation

Agreements with other private partner

or sister concern... has virtually defeated

the legislative policy in the CMN Act

and winning and mining of coal mines

has resultantly gone in the hands of pri-

vate companies for commercial use. The

Bench clarified that coal block allocations

made through competitive bidding for

the lowest tariff for power for UMPPs

might not be cancelled. However, the

coal blocks allocated to UMPPs would

only be used for that purpose and no di-

version of coal for commercial exploita-

tion would be permitted. Business Line, August 25, 2014

N ews at a G lance

Coal block allocation: Chronology of events

5 News at a Glan ce

Gujarat power firm to get US support for renewable energy

The US Trade and Development Agency (USTDA) have signed a grant

agreement with Gujarat Energy Transmission Corporation (GETCO) to

support the integration of renewable energy sources into its power

transmission system. The agreement was signed in New Delhi at the

annual US-India Strategic Dialogue.

This technical assistance will allow GETCO to analyze its power system

through modeling and statistical techniques, and to develop strategies

to ensure appropriate load balancing and frequency regulation for its

transmission operations. This project will be carried out by Quanta

Technology. Source: The Financial Express, Dated: 02/08/14

Half of power plants have less than 7 days of coal stocks

Nearly half of the country's coal-based power plants are reeling under

fuel shortages and had stocks to last less than seven days as of July end.

Some of the power plants which are affected due to coal shortages are

Indira Gandhi STPP (Super Thermal Power Plant) in Haryana, Rajpura

TPP (Thermal Power Plant) and Ropar power plant in Punjab, Su-

ratgarh TPS (Thermal Power Station) in Rajasthan among others.

The supply has been short due to various factors like less lifting by

TPPs through captive modes and logistic constraints of the railways, he

said. Source: The Financial Express, Dated: 08/08/14

CERC passes order on Sasan UMPP of Reliance Power

CERC has said the first 660 MW unit of Reliance Power's 3,960 mw Sa-

san project in Madhya Pradesh could not achieve its "full load" in

March 2013 and rejected its plea to appoint an independent technical

panel to look into the readiness of that unit.

The latest order follows another CERC directive passed in June last

year, which was challenged by Reliance Power in the Appellate Tribu-

nal for Electricity (Aptel). The tribunal then directed the regulator to

pass a fresh order on the matter

As per provisions in the PPA, commissioning date cannot be declared

unless the results of the performance test show that the unit tested ca-

pacity is not less than 95% of its contracted capacity as existing on the

effective date. Source: The Financial Express, Dated: 10/08/14

Govt asks NTPC, NHPC to focus only on core areas of operation

In what may push state-owned power companies to alter their business

strategies, the govt has asked NTPC, NHPC, SJVNL and THDC to focus

only on core areas of operation and transfer their non-core assets

among themselves. Once this is implemented, the country's largest

power producer NTPC, which started operations as a pure thermal

N ews at a G lance

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6 News at a Glan ce

power player, will have to transfer its proposed hydro power projects

to the other three PSUs – NHPC, SJVNL and THDC — which are pri-

marily hydro power firms.

Power ministry has already asked the PSUs under its administrative

control not to look at broad diversifications (thermal players entering

large hydro projects and vice versa) and explore opportunities for trans-

fer of each other’s non-core assets between themselves. Source: The Financial Express, Dated: 20/08/14

Power firms losing captive mines may get tapering linkage

In a relief for the private power companies, such as Essar Power, JSPL,

Monnet Ispat, Sterlite Energy and Adani Power, which faced de-

allocation of their captive coal blocks, they may get tapering (or tempo-

rary) coal linkages wherever the end-use power plants are being set up.

Recently, the power ministry had circulated a note to be taken up by the

Cabinet Committee on Economic Affairs with several proposals for giv-

ing coal linkage to the power projects that do not have letter of assur-

ance (LoA) or fuel-supply agreement (FSA), but which are already com-

missioned or will be commissioned by March 2015 or up to the end of

12th Five-Year Plan period.

According to the ministry's proposal, wherever the linked coal blocks

are in the process of de-allocation and the end use power plants are

commissioned or are at an advanced stage of commissioning, the plants

should be granted tapering Source: The Financial Express, Dated: 18/08/14

All future transmission projects may be put up for private participa-

tion

Nearly all future power transmission projects in the country will be

available to the private sector if the govt accepts the recommendation of

a high-level panel — a move that would gradually undermine public-

sector Power Grid Corporation's dominance in the sector and bring

competition to this crucial segment.

The current practice of giving Power Grid projects on a nomination ba-

sis would end and it will now have to compete for projects like any oth-

er bidder, including those from the private sector.

Earlier, the govt had bid out some relatively small projects to build inter

-state transmission lines, but bidder interest was found to be almost non

-existent mainly because transmission tariffs are regulated by the

CERC. Cumbersome green clearance norms — with the onus of obtain-

ing them on bidders — also resulted in the projects not taking off.

The changes being considered by the group are aimed at faster develop-

ment of transmission networks as the benefit of rapid generation capac-

ity addition would not reach consumers unless a proper network for

evacuation of the power is created. Source: The Financial Express, Dated: 23/08/14

Time to clean up the coal sector

The Supreme Court ruling of declaring all coal mines allocated between

1993 and 2009 as illegal could be a double-edged sword for the indus-

try. It can either derail large investments and hurt prospects for eco-

nomic recovery in sectors such as steel and power, which account for

75% of allocations, or help clean up the process of allocation of natural

resources.

Banks are worried due to uncertainty created by the decision. They

have an exposure of more than R5 lakh crore to the sector, critical for

revival of the economy, which has slipped to below 5% growth in 2012-

13 and 2013-14. Even steel companies estimates peg the investments

riding on these captive mine allocations at anywhere between R.80,000

crore and R1 lakh crore. The steel sector will have to tap other sources

of coal which may not come cheap and could impact profitability if the

apex court decides to cancel the allotments. Source: The Financial Express, Dated: 27/08/14

Merger with NHPC not in national interest: SJVN, THDC

The power ministry's high-voltage idea of creating a state-run hydel be-

hemoth under the umbrella of NHPC has tripped even before it could

crystallise into a proposal. An assembly of top executives from SJVNL,

THDC, NEEPCO and NHPC has arrived at a "consensus" that their

merger would "neither serve national interest nor accelerate capacity

addition and raise tariff" for consumers.

NHPC in particular drew sharp criticism from SJVN and THDC execu-

tives attending the assembly, for unilaterally appointing SBI Caps for a

concept paper, which was submitted to the power ministry without

running it past the chiefs of the companies that is proposed to be

merged with NHPC. Source: ET, Dated: 22/08/14

Centre to provide financial support to Jammu and Kashmir in gener-

ating power

The Centre will provide necessary financial support to Jammu and

Kashmir for realising the potential of generating 20,000 MW electricity

in the state.

The issues between the state and the Union Power Ministry can be easi-

ly resolved through the process of meetings and interactions.

The Minister said the huge potential of 20,000 MW of hydro energy

available in the state if harnessed will not only give significant boost to

the state's economy but also benefit the country.

He asked the officers of Union and state governments to draft detailed

project reports for all identified hydel projects so that no delay is caused

at the time of the launch of each project. Source: ET, Dated: 22/08/14

Reliance Power commissions 5th unit of its Sasan UMPP

Reliance Power announced that the fifth 660 MW unit of its 3,960 MW

Sasan UMPP has commenced generation. With this, the total operation-

al capacity of the Sasan plant in Madhya Pradesh has reached 3,300

MW.

Last unit is in advanced stages of construction and will be commis-

sioned over the next few months. Coal production has already com-

menced from the 20 million tonnes Moher and Moher-Amlohri coal

mines associated with the power project. Source: ET, Dated: 26/08/14

L&T inks contract with Bangladesh Power Development Board

L&T and Bangladesh Power Development Board (BPDB) have signed a

contract to set up a 225 megawatt, gas-based power plant in Sikalbaha,

Chittagong in Bangladesh. The contract, which is valued at about $200

million, was secured by L&T in May 2014.

Four development partners of Bangladesh govt. from the Middle East

(Saudi Arabia, Kuwait, the UAE and the OPEC Fund) will finance the

project with a fund of approximately $167 million.

The contract was signed between BPDB secretary M. Zahirul Haque

and L&T vice-president Saurabh Indwar at an event held in Dhaka on

Aug 24. Source: ET, Dated: 26/08/14

Reliance power approaches Andhra Pradesh government to revive

Krishnapatnam UMPP

Amid a fall in global coal prices and mounting demand for electricity,

Reliance Power has approached the Andhra Pradesh government seek-

ing to revive a 4,000 MW power project proposed at Krishnapatnam on

India's east coast. The proposal to revive the project comes nearly 30

months after its lead electricity procurer, AP Southern Power Distribu-

tion Company (APSPDCL), served notices on the local entity of Reli-

ance Power, threatening to terminate power purchase agreements for

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7 News at a Glan ce

defaulting on project implementation and supply of power as agreed

upon. Confirming the proposal, the company was committed to devel-

oping the Krishnapatnam project. Under the proposal, Andhra Pradesh

was to get 40% of the power generated by the so-called ultra-mega

power project (UMPP), with Tamil Nadu, Karnataka and Maharashtra

sharing the rest equally.

Source: ET, Dated: 27/08/14

Expensive capital keeps renewable costs high in India: IEA

India's diverse set of targets and financial incentives support growth of

renewable energy generation even as expensive capital keeps renewa-

ble costs high. According to IEA, stability of the policy environment

and implementation are key for determining the cost and availability of

financing for renewables over the medium term.

Renewables account for more than 70,000 MW of the country's total in-

stalled power generation capacity of over 2,50,000 MW. Current India's

renewable policy environment has strengthened in certain areas over

the past year, but remains complex, with overlapping initiatives at the

central govt. and state levels and challenges in policy implementation.

Source: ET, Dated: 28/08/14

Coal stocks at power plants lowest since 2012 blackouts

Half of India's thermal power stations have less than a week's supply of

coal on hand, the lowest level since mid-2012 when hundreds of mil-

lions of people were cut off in one of the world's worst blackouts.

Any grid collapse would cast doubt on the crisis management skills of

the new govt. led by Narendra Modi, whose achievement in ensuring

24-hour power supplies as premier of Gujarat state helped him to elec-

tion victory in May.

The shortage has come about as a fall in hydroelectricty generation due

to weak monsoon rains forced the government to ask coal-based power

stations to raise output.

Many of these regional state power companies have imported less than

required due to financial stress, having run up losses because they must

pay market prices for coal but can only sell power at regulated rates.

Indonesia expects to raise its shipments to India this year by 10 million

tonnes to around 100 million. Source: ET, Dated: 29/08/14

Rajasthan providing more electricity than other states

Defending the power shortage and phase wise cut to consumers for the

last two days, Rajasthan is providing more electricity to customers than

other states, including UP, Maharashtra, Punjab and Haryana. As

against 1,400 lakh units per day supply in 2013 during this time, the

state DISCOMs supplying 2100 units every day now (2014). Despite a

few hours of power cut, the farmers were getting power for 5 hours dai-

ly, and 18 hours in domestic sector.

The major power crisis was due to hike in imported coal prices and Su-

preme Court's intervention in the matter. Major power generation com-

panies Tata, Adani have reduced the power output causing serious cri-

sis and concern in power sector. Source: ET, Dated: 29/08/14

NTPC aims at 8,000-9,000 MW capacity takeover

NTPC is aiming at 8,000-9,000 MW capacity takeovers in stressed pow-

er plants but the recent Supreme Court ruling on coal mines may have

an impact on the move.

NTPC received 34 applications aggregating 55,000 MW generations.

But, on a realistic basis, expectation is to acquire plants worth 8,000-

9,000 MW capacity after due diligence

NTPC is looking at power plants which have achieved financial closure

or coal linkage, but were facing financial issues to start generation and

cost less than Greenfield power plants. Source: ET, Dated: 29/08/14

States asked not to overdraw from grid

The Northern Regional Load Dispatch Centre has sent an SOS to all

northern states to curtail overdrawing in Northern Grid. The alert is-

sued after high power demand in the northern region caused fluctua-

tions in grid frequency.

Delhi is one of the northern region constituents and has been seeing an

unusually high power demand in the second fortnight of August, as

compared to previous years.

NRLDC had tightened grid frequency bandwidth last year to ensure

grid stability, but reports came in that some states like UP, Rajasthan

and Jammu & Kashmir were overdrawing heavily from the grid to meet

the load demand. The situation has been aggravated because NRLDC

said some power units had pulled out from generation due to the ongo-

ing coal shortage. Source: ET, Dated: 30/08/14

INTRODUCTION

Chile is a South American country occupying a long, narrow strip of

land between the Andes

Mountains to the east and

the Pacific Ocean to the west.

Chile is today one of South

America's most stable and

prosperous nations. It leads

Latin American nations in

rankings of human develop-

ment, competitiveness, in-

come per capita, globaliza-

tion, state of peace, economic

freedom, and low perception of corruption. By the way GDP (nominal)

2013 estimate Total $277.238 billion (38th) Per capita $15,791(49th).

The electricity sector in Chile relies predominantly on thermal and hy-

dro power generation. Chile's electricity sector reform, which served as

a model for other countries was carried out in the first half of the 1980s.

Vertical and horizontal unbundling of generation, transmission and dis-

tribution and large scale privatization led to soaring private investment.

The 1982 Electricity Act was amended three times in 1999, 2004 and

2005 after major electricity shortages.

During the initial restructuring of the electricity industry Endesa, a state

-owned company since 1944, was divided into 14 companies. Before the

division Endesa had extensive generation, transmission and distribu-

tion assets throughout the country. The companies generated from

Endesa's division included 6 generation companies (including Endesa

and Colbun), 6 distribution companies and 2 small isolated generation

and distribution companies in the South. Chilectra, privately owned

since 1970, was split into 3 firms: a generation company (Gener) and

two distribution companies.

Generation

Installed capacity (2012): 17.61 GW, of the installed capacity, 64.9% is

thermal, 34% hydroelectric and nearly 1% wind power, with nuclear

absent.

Chi le

Power Scenario in Chile

8 Chi le

Imports and Exports

In 2003, Chile imported 2 TWh of electricity (mainly from Argentina)

while it did not have any exports.

Demand

In 2007, the country consumed 55.2 TWh of electricity. This corresponds

to 3,326 kWh per capita, which is still low by developed country stand-

ards. It grew rapidly (6% per year) until 2006, but since then it has been

stagnant.

Demand and supply projections

It is expected that electricity demand will increase at 5% per year in the

period up to 2030. In that same period, the share of natural gas in the

generation mix will increase to 46%. The installed capacity of natural-

gas-fired electricity generation is expected to reach 14 GW in 2030 (this

will be achieved by the construction of 10 new combined-cycle gas-fired

power plants), while coal-fired and hydroelectricity generation will

each account for about 26% of the total electricity generation mix.

Since the privatization of the Chilean electricity sector in 1980, all gener-

ation have been in private hands. There are 26 companies that partici-

pate in generation, although three main economic clusters control the

sector: Endesa group, AES Gener and Tractevel (Colbún).

Policy and regulation

The National Energy Commission (CNE), created in 1978 to advise on

long term strategies, is responsible for advising the Minister of Econo-

my on electricity policy and for setting of regulated distribution charg-

es. The Energy Superintendence (SEC) is responsible for supervising

compliance with laws, regulations and technical standards for genera-

tion, production, storage, transportation and distribution of liquid fuels,

gas and electricity

Renewable Energy Resources

In January 2006, new legislation was passed to apply the benefits in-

cluded in Short Laws I & II (see Recent Developments section below for

details) to renewable energy production. The new regulation provided

for exemptions in transmission charges for new renewable energy

sources (i.e. geothermal, wind, solar, biomass, tidal, small hydropower

and cogeneration) below 20 MW of capacity. It also simplified the legal

procedures for projects below 9 MW.

In 2008, a special law for non-conventional renewable energy was ap-

proved ,which requires that, from 2010 onwards, at least a 5% of the en-

ergy produced by the medium and large generator sector be from non-

conventional renewable energy sources. This quota will increase by

0.5% per year from 2015 onward, to reach a 10% requirement in 2024.

Transmission

Responsibility for transmission is Transelec. here are 5 players. In the

Central Interconnected System (SIC), the most important player is Tran-

selec, a pure transmission company which controls almost the entire

transmission grid that serves the SIC. In the other interconnected sys-

tems, the large companies generation or the large clients are the owners

of the transmission systems.

Distribution

in the distribution sector, with approximately 25 companies, in which

the major companies include CGE Distribución S.A., Chilectra S.A.,

Chilquinta Energía S.A., and Inversiones Eléctricas del Sur S.A. (Grupo

SAESA).

Interruption frequency and duration

In 2002, the average number of interruptions per subscriber was 9.8,

while the total duration of interruptions per subscriber was 11.5 hours

in 2005. Both numbers are below the weighted averages of 13 interrup-

tions and 14 hours for the LAC region.

Distribution and transmission losses

Distribution losses in 2005 were 6.52%, down from 8% a decade before

and well below the 13.5% LAC average.

Tariff

In 2005, the average residential tariff was US$0.109/(kWh), while the

average industrial tariff was US$0.0805/(kWh). These tariffs are very

close to the LAC weighted averages of US$0.115 for residential consum-

ers and 0.107 for industrial customers.

Subsidies

Electricity subsidies in Chile aim to temper the impact of rising electrici-

ty tariffs on the poorest sectors of the population. In June 2005, Law

20,040 established an electricity subsidy for poor Chilean families. As

mandated by the law, the subsidy will be triggered when electricity tar-

iffs for residential, urban or rural users face an increase equal to or

above 5% during a period equal to or below six months.

Private participation in the electricity sector

Activity Private Participation (%)

Generation 100%

Transmission 100%

Distribution 100%

AUTHORS:

Introduction

The target for high efficiency in modern power plants is set not only be-

cause of economic reasons but also for enhanced environmental perfor-

mance in terms of reduced fuel needs, quantity of ash generated and

pollutants emitted. As coal will remain an important source of energy,

the focus has been set to improve the efficiency of coal fired power

plants. To achieve this goal, supercritical steam parameters have been

applied. Most of the upcoming thermal power plants in India prefer su-

percritical steam parameters and have been based on pulverized coal

(PC) fired once-through boiler technology. Circulating Fluidized Bed

(CFB) boiler technology has been growing in size and number over the

past three decades and it has established its position as utility scale boil-

er technology.

One remarkable milestone in the development of the circulating fluid-

ized bed (CFB) technology was achieved when the world's largest and

first supercritical circulating fluidized bed (CFB) boiler is at Lagisza

power plant Poland, was successfully come into commercial operation

in 2009.

If light is put on Indian power scenario, India enters its 12th five year

plan (2012-17), around 80-90-GW of additional power from all sources

will be required and for 13th five year plan (2017-2022), more than this

capacity has to add to meet the requirement. Keeping this in mind the

advantages of once through supercritical technology now becomes op-

tion for coal based thermal power generation in India. To meet the de-

mand of power, next two five year plan majority of upcoming power

plants are based on supercritical technology and expected that 6% of

C hi le

N PONRAJA, MBA (Power), B.Tech (Electrical)

KARTHIK V, MBA (Power), B.Tech (ECE)

Once Through Supercritical CFBC Technology

An Option for Indian Power Sector

9 Arti cle

coal consumption has to increases and only 2.5% domestic reserve of

coal is proven. Now this supply shortfall of coal may be met by import-

ed and Indian coal is blending of coal with ratio as technology permits.

The Central Electricity Authority (CEA) stipulated in 2011 that all fu-

ture indigenous coal based power plant boilers are to be designed for

utilization of coal ratio of 30% imported and 70% indigenous coal. Thus

Fuel flexibility and Higher Efficiency will be the measure for adaption

of CFBC & OTSC in India, so the option comes Once Through Super

Critical Circulating Fluidized Bed Combustion (OTSC CFBC) Technolo-

gy. Recent developments in OTSC CFBC have already qualified to be

offered for commercial purpose and competing the pulverized fuel

OTSC technology.

This article highlights the advantages by adoption of CFBC with super-

critical technology in Indian perception.

Circulating Fluidized Bed Combustion (CFBC)

During the 1970’s and also 1980’s it is proven that conventional pulver-

ized coal fired power plants had received an optimized thermal efficien-

cy of order of 40% in the world and in India it is 36-37%. CFBC technol-

ogy was developed to raise the efficiency level. In this technology high

pressure air is blown through finely ground coal. The particles become

entrained in the air and form a fluidized bed. This bed behaves like a

fluid in which the constituents’ particles move to and fro and collide

with one another, the process employs a circulating fluidized bed com-

bustor that operates at a temperature of 800-900°C. The fuel (crushed

coal < 10mm) along with the sorbent (lime stone <1mm) is fed to the

lower furnace where it is kept suspended and burnt in an upward flow

of combustion air. The sorbent is fed to facilitate capture of sulfur from

the coal in the bed itself resulting in consequent low sulfur emission.

The combustion air is fed in two stages – Primary air direct through the

combustor and secondary air above the fuel feed point as shown in Fig-

ure.

The circulating bed is designed to move a lot more solids out of the fur-

nace area and to achieve most of the heat transfer outside the combus-

tion zone - convection section, water walls, and at the exit of the riser.

Some circulating bed units even have external heat exchanges.

Similar to Pulverized Coal (PC) firing, the controlling parameters in the

CFB combustion process are temperature, residence time and turbu-

lence. Today, there are around 80 CFB units of over 200 MWe capacity

are in operation all over the world. . The first high efficiency CFB power

plants to utilize the supercritical steam parameters in coal firing with

once-though steam cycle technology are Lagisza, 460MWe in Poland,

Novocherkasskaya, 330MWe in Russia and Samcheok Green Power, 4 x

550MWe in South Korea with a net efficiency of 45% (LHV).

CFBC OTSC Parameters

Basic OTSC CFB concept is based on proven and efficient CFB process

with high plant efficiency and supercritical steam parameters. With

Benson vertical tube technology, heat transfer rate is very low and uni-

Arti cle

form. Concept is based on in-line boiler arrangement. Furnace and sep-

arators form a compact hot loop package. The convection pass consists

of a steam-cooled enclosure containing the convection super heaters

and reheaters. This is followed by the economizer and rotary regenera-

tive air heaters. The design of the convection pass follows the same

principles employed in large two-pass PC boilers. Hot loop and convec-

tion pass are connected with steam cooled cross over ducts (CODs).

The fuel specifications in table 1. And design steam parameters in table

2. ( 460 MWe CFB OTSC Boiler are mentioned below)

Advantages of CFBC Boilers

High Efficiency

Reduction in Boiler Size

Fuel Flexibility

Ability to Burn Low Grade Fuel

Ability to Burn Fines

Pollution Control

Low corrosion and erosion

Easier ash removal – No Clinker Formation

Less Excess Air – Higher CO2 in Flue Gas

Simple Operation, Quick Start-Up

Fast response to load fluctuations

No slagging in the furnace-no soot blowing

Provisions of Automatic Coal and Ash Handling System

Provision of Automatic Ignition System

High Reliability

High efficiency of power generation

An Ideal Option for India - OTSC and CFBC Technologies

As per the Indian power sector growth rate, around 6 to 7 GW power

generation capacity has to add every year to meet the increased de-

mand with high efficiency, more reliability and minimum pollution.

Addition to that main constraint is availability of fuel and calorific val-

ue. In India available coal has low calorific value. So the imported coal

Process Flow of Circulating Fluidized bed boiler

. Fu

el S

pe

cifica

tion

- Bitu

min

ou

s Co

al

Design Steam Parameters at 100% Load

10 Arti cle

having high CV may blend with available Indian coal is better option

with combining OTSC and CFB technology for power generation.

OTSC CFBC with lower combustion temperature and substantially in-

creased particle residence time has the capability to burn a wider blend

of fuel combinations compared to the narrow band of blends associated

with OTSC PC. CFB covers the complete range of ratios (0-100%) of do-

mestic/ imported coal.

Conclusion

For a developing nation planning to meet the rising demand with ca-

pacity additions, use of technologies, which are environmental friendly

and minimize the impact on environment, is necessary. CFBC is one of

such Technologies that operates under low combustion temperatures

and has facility to add sorbent. It effectively minimizes the SOx and

NOx emissions. It can also use poor quality fuels for effective, efficient

combustion minimizing emissions and impact on environment and for

High efficiency; means lower fuel consumption, and lower levels of ash

and air emissions, including lower emissions of carbon dioxide (CO2).

To achieve these goals, supercritical steam parameters have been ap-

plied.

Integration of supercritical one-through boiler technology with CFB

technology provides the best combination of features for efficient, cost-

effective, and environmentally responsible power production. The gase-

ous emissions are further reduced with improved efficiency in view of

supercritical parameters since the amount of pollutants decrease on an

absolute level. So for Indian perception OTSC CFBC Technology offers

excellent solution.

References:

“Towards new milestone in CFBC boiler technology CFBC-800MWe”. Ar-

to Hotta, Kari Kauppines, Ari kettunen. Foster Wheeler, Finland.

“FBC Boilers” Bureau of Energy Efficiency.

Conference by Ashish Rai, Dr.Mukesh Pandey and Dr.Prasant Baredar on

CFBC Technology.

AUTHOR

Open access

As per Electricity Act, 2003 Open Access has been defined under Sec-

tion 2 (47) as follows:

“The non-discriminatory provision for the use of transmission lines or

distribution system or associated facilities with such lines or system

by any licensee or consumer or a person engaged in generation in ac-

cordance with the regulations specified by the Appropriate Commis-

sion”.

Open Access is one of the most important features of the EA 2003

wherein, distribution companies and eligible consumers have the free-

dom to buy electricity directly from generating companies or trading

licensee of their choice and corresponding the generating companies

have the freedom to sell to any licensee and to the eligible consumers.

Bihar Snapshot

In Bihar, from transmission front, Bihar State Power transmission Com-

pany Limited (BSPTCL) is the state transmission utility (STU). From

distribution front, Bihar has two distribution companies, they being,

North Bihar Power Distribution Co. Ltd.(NBPDCL) and South Bihar

Power Distribution Co. Ltd. (SBPDCL). It has one Holding Company-

Bihar State Power Holding Co. Ltd. (BSPHCL).

Open Access Regulation in Bihar 20th May 2006

Eligibility to seek Open Access

Open access shall be permissible to the consumers having load of 1

MW and above connected through independent feeder.

The Commission may allow Open Access to consumers with de-

mand of less than 1 MW at such time as it may consider feasible

having regard to operational constraints and other factors.

Metering

The Open Access customer shall provide Availability Based Tariff

(ABT) compatible Special Energy Meters at the point of injection and

point of drawl.

The Open Access customer shall provide Main Meters and Check

Meters as may be specified by State Transmission Utility.

Open Access Charges and Losses

Transmission Charges or STU Charges

Wheeling Charges or Distribution Charges

Cross Subsidy Surcharge or Addition Surcharge

Addition Surcharge

Scheduling and System Operation Charges

Reactive Energy Charges

Unscheduled Interchange( UI) Pricing

Transmission Loss

Wheeling Loss

Landed Calculation:

Arti cle

SOURADEEP MUKHERJEE

MBA (Power Management)

BTech (Electrical Engineering)

Open Access Feasibility in BIHAR

Open Access Charges and Losses

Charges in Rs/

kWh 11kV/22kV/33kV Losses in % 11/kV/22kV/33kV

Transmission 0.17 Transmis-

sion 4

Wheeling 0.18 Wheeling 5

Cross Subsidy 0.53

11 Arti cle

…...continued

Conclusion

Bihar is one of fastest growing states in India. According to Indian

Brand Equity Foundation, the Gross State Domestic Product of Bihar in

the year 2012-13 was $56.8 bn and CAGR reported was 18.8%. The total

outstanding investments in Bihar were $53.5 bn out of which 70% was

for electricity industry. Here in the table, in which we have taken only

the energy charge at 132 kV and the Quantum of power is 3MW, the

fixed charges will be beard by the consumers.

Open Access in Bihar according

to above analysis is cost benefi-

cial at every level of voltage at

drawl point. For a 33kv draw-

ing industry, per unit saving for

open access consumer is about

Rs. 2. This makes around 40

lakhs per month for the con-

sumers of electricity through open access on the basis of IEX. For larger

industries, which draw the power at higher level of voltage, this

amount escalates further. Power from open access at every level is ben-

eficial for consumer; Consumer can do bilateral trading as tariff is low

compared to the Discom tariff.

Industries in Bihar are interested in open access but due to poor trans-

mission lines and distribution lines and lack of technology in SLDC, so

implementation of Open Access in Bihar will take some time. NoC is

granted to independent feeder at 132 kV. Bihar is a deficit state it has a

minimum deficit of 3.9%. It has highest deficit of 11.7% in the month of

April. So, Power Banking is mostly done by the Discom. Moreover,

news of identification and evaluation of a site for an UMPP in Bihar

may attract many industries to the state. There is no open access in Bi-

har, no generator and no consumer is accessing open access due to

transmission and technical constraint.

AUTHOR:

Arti cle

SUNNY SULTANIA

MBA (Power Management)

BTech (Electrical and Instrumentation)

Landed cost (Rs./

unit)

IEX( at 132kV) 3.75

Bilateral(CTU Connect-

ed) 4.67

STU Connected 4.28

Basis of Discom 6.3

12 In novati on

With the aim of providing India with safe clean drinking water, Dr

Vibha Tripathi with her team member developed Swajal . It’s a ma-

chine that is capable of providing safe drinking water with nine stages

of filtration. It is capable of producing water at quality less than 60 TDS

(total dissolved solids) and acceptable limit by WHO is 100 TDS. It can

dispense both hot and cold water according to the requirement and it

can serve the communities having contaminated underground water.

The best part of this machine is that it’s self-powered by clean ener-

gy , which means it is not

grid connected and can be

used disaster prone region.

Not only by solar ,it can be

powered by hybrid power

also.

To test the Swajal proto-

type, Tripathi has picked

five of the 900 villages in the

area that comprises Delhi

and the National Capital

Region to install solar water

purifiers. Besides these,

Swajal has just installed two

5,000 litres per day purifiers

in Chandankhera and Karinabagh villages in UP's Unnao district, areas

which have high fluoride content in their ground water. Allocated

amounts of the purified water are auto-dispensed to each consumer via

a smartcard issued by the non-profit organization that has commis-

sioned these purifiers. "When the capital expenses are paid for, we can

supply the water at 30 paise per litre," says Tripathi. Even when the

capital expense is self sponsored by Swajal, as in the case of the five

prototypes, purified water from the ground can be made available at as

low as Rs 1 per litre, she says. Tripathi feels Swajal can begin by helping

schools and hospitals in rural areas. Dr.Tripathi is looking for funding

for the venture. "We are asking for $1.2 million to scale up operations,"

she says and is willing to divest 20-25% of Swajal's equity for that in-

vestment. "We would use this money for R&D, marketing, hiring more

people — basically scaling up the venture," she adds

The Swajal machine is designed with the capability of nine stages of fil-

tration and installed with proprietary GSM software that continuously

monitors whether the machine is working at its installation point.

Moreover, Swajal won the India Innovation Growth Award for 2014, a

joint initiative of the Indian government's Department of Science and

Technology, Lockheed Martin Corporation, the Indo-US Science and

Technology Forum, the Federation of Indian Chambers of Commerce

and Industry, Stanford Graduate School of Business and the IC2 Insti-

tute at the University of Texas.

The aim of Swajal is to protect 5,000 people dying because of dirty

drinking water and provide clean drinking water in rural and disaster

prone areas of India.

Author:

Advanced Metering Infrastructure What is Advanced Metering Infrastructure?

AMI (Advanced Metering Infrastructure) is the collective term to de-

scribe the whole infrastructure from Smart Meter to two way-

communication network to control center equipment and all the appli-

cations that enable the gathering and transfer of energy usage infor-

mation in near real-time. AMI makes two-way communications with

customers possible and is the backbone of smart grid. The objectives of

AMI can be remote meter reading for error free data, network problem

identification, load profiling, energy audit and partial load curtailment

in place of load shedding.

Building Blocks of AMI

AMI is comprised of various hardware and software components, all of

which play a role in measuring energy consumption and transmitting

information about energy, water and gas usage to utility companies and

customers. The overarching technological components of AMI include:

Smart Meters- Advanced meter devices having the capacity to collect

information about energy, water, and gas usage at various intervals and

transmitting the data through fixed communication networks to utility,

as well as receiving information like pricing signals from utility and

conveying it to consumer.

Communication Network- Advanced communication networks which

supports two way communications enables information from smart me-

ters to utility companies and vice-versa. Networks such as Broadband

over PowerLine (BPL), Power Line Communications, Fiber Optic Com-

munication, Fixed Radio Frequency or public networks (e.g., landline,

cellular, paging) are used for such purposes.

Meter Data Acquisition System– Software applications on the Control

Centre hardware and the DCUs (Data Concentrator Units) used to ac-

quire data from meters via communication network and send it to the

MDMS

Meter Data Management System (MDMS) - Host system which re-

ceives, stores and analyzes the metering information.

Home Area Network (HAN) - It can be an extension of AMI deployed

at consumer premises to facilitate the communication of home applianc-

es with AMI and hence enable a better control of loads by both utility

and consumer.

Smar t G ri d

Smart Grid Roadmap-India

INNOVATION SWAJAL—Making the clean water available to everyone

YOGESH, B.Tech (Power System Engineering)

13 Smart Gri d

Figure-1: illustrates the components that make up AMI, including advanced electric,

gas and water meters a data transmission network and a data management system.

Benefits

The benefits of AMI are multifold and can be generally categorized as:

Operational Benefits – AMI benefits the entire grid by improving the

accuracy of meter reads, energy theft detection and response to power

outages, while eliminating the need for on-site meter reading.

Financial Benefits – AMI brings financial gains to utility, water and gas

companies by reducing equipment and maintenance costs, enabling

faster restoration of electric service during outages and streamlining the

billing process.

Customer Benefits – AMI benefits electric customers by detecting meter

failures early, accommodating faster service restoration, and improving

the accuracy and flexibility of billing. Further, AMI allows for time-

based rate options that can help customers save money and manage

their energy consumption.

Security Benefits – AMI technology enables enhanced monitoring of

system resources, which mitigates potential threats on the grid by cyber

-terrorist networks.

Challenges Despite its widespread benefits, deploying AMI presents three majors

challenges that include high upfront investments costs, integration with

other grid systems, and standardization.

High Capital Costs: A full scale deployment of AMI requires expendi-

tures on all hardware and software components, including meters, net-

work infrastructure and network management software, along with

cost associated with the installation and maintenance of meters and in-

formation technology systems.

Integration: AMI is a complex system of technologies that must be inte-

grated with utilities' information technology systems, including Cus-

tomer Information Systems (CIS), Geographical Information Systems

(GIS), Outage Management Systems (OMS), Work Management (WMS),

Mobile Workforce Management (MWM), SCADA/DMS, Distribution

Automation System (DAS), etc.

Standardization: Interoperability standards need to be defined, which

set uniform requirements for AMI technology, deployment and general

operations and are the keys to successfully connecting and maintaining

an AMI-based grid system.

AMI in the Indian Context

Modernizing India's grid system by investing in AMI promises to miti-

gate a number of strains placed on the grid due to growing demand for

electric, gas and water resources. In particular, AMI will improve three

key features of India's grid system including:

System Reliability: AMI technology improves the distribution and

overall reliability of electricity by enabling electricity distributors to

identify and automatically respond to electric demand, which in turn

minimizes power outages.

Energy Costs: Increased reliability and functionality and reduced pow-

er outages and streamlined billing operations will dramatically cut costs

associated with providing and maintaining the grid, thereby significant-

ly lowering electricity rates.

Electricity Theft: Power theft is a common problem in India. AMI sys-

tems that track energy usage will help monitor power almost in real

time thus leading to increased system transparency.

Source: ISGF

“Smart Grid Pilot Projects in India” In continuation….

Electricity Department Of Government Of Punducherry

Division 1 of Puducherry

Project Summary

Project proposes covering 87031 no. of consumers with dominant being

domestic consumers (79%). The area has around 367 MU input energy

consumption. The proposed project area is also covered under RAPDRP

Scheme for IT implementation and system strengthening which is likely

to be completed in 2013. The module of Automated Metering Infra-

structure (AMI) for Residential Consumers and Industrial Consumers

are proposed to be implemented to assist with consumer issues like

event management & prioritizing, billing cycle review and revenue col-

lection efficiency for Energy auditing and AT&C loss reduction.

Benefits

Reduction in Distribution Losses

Reducing cost of billing

Increasing revenue collection efficiency

Key facts

Project Type: Smart Grid Pilot in Power Distribution Sector

Total cost of project: Rs. 46.11 C r

MoP Share: Rs. 23.05 Cr

Funding Programme: RAPDRP, Part-C

Project timeline: 563 days, approx. 19 months

Update:

RfP is ready, but has to be finalized by PED. The state government is

now testing a grid-interactive rooftop scheme with technical assistance

from Auroville Consulting. PED has also proposed an extension of

Smart Grid Pilot Project to the entire UT of Puducherry at an estimated

cost of around Rs186.67 Cr. The proposal for extension of Pilot to entire

UT would be placed before the Steering Committee for appropriate dis-

cussion.

Himachal Pradesh State Electricity Board Limited, Himachal Pradesh

Location

Industrial town of KalaAmb

Project Summary

The pilot project covers 650 consumers and having annual input energy

of 533 MUs. The functionality of peak load management and outage

Smar t G ri d

14 Power Tradi ng Updates

management is proposed by implementing Automated Metering Infra-

structure (AMI) for Industrial Consumers, Distribution Automation and

Substation Automation and power quality management by deploying

Power Quality meters at HT consumers.

Benefits

Shifting peak load

Reduction in penalties

Reduction in outages

Key facts

Project Type: Smart Grid Pilot in Power Distribution Sector

Total cost of project: Rs. 17.84 C r

MoP Share: Rs. 8.92 Cr

Funding Programme: RAPDRP, Part-C

Project timeline: Not Mentioned

Update:

The last date of submission of bids is July 1, 2014. Award of contract is

likely by September 30, 2014.

AUTHOR:

PRAKHAR CHAUDHARY MBA( Power), B. Tech (CSE)

Power Trading in Month of August

As regards the price of the power, the average market clearing price

(MCP) at IEX is Rs.4.49 per unit, about 14% higher than Rs.3.76 per unit

in the previous month. However MCP showed wide variation through

the month with lowest being at Rs. 1.73 per unit & highest at Rs. 10.8

per unit.

The average market clearing price (MCP) at PXIL is Rs.3.78 per unit,

about 8% higher than Rs.3.46 per unit in the previous month. However

MCP showed wide variation through the month with lowest being at

Rs.2.24 per unit & highest at Rs.5.88 per unit.

Prices at IEX

With reduction in demand of electricity across States owing to the rains,

area prices fell across all the States except in the Southern States where

the prices instead increased by about 6-7%, largely due to unavailability

of transmission corridor.

Volumes

With total Purchase Bids of 4785.68668 KWh (IEX = 472.0249 KWh &

PXIL = 65.43768 KWh) and total Sell Bids of 3099.49375 KWh(IEX =

3062.889 KWh & PXIL = 36.60475 KWh), almost 2720.931 KWh were

cleared in August in Spot market KWh. The table below gives region

wise details of the power bought (in KWh) and sold (in KWh) at IEX:

REC Trading

A Renewable Energy Certificate (REC) is a market based instrument

which provides evidence that a generator has produced a certain

amount of electricity from a RE resource. A Renewable Energy Certifi-

cate signifies the environmental attribute of the renewable energy. PXIL

achieves 68.9% Market Share. Clearing price for Solar REC is 9300 Rs/

REC and for Non Solar REC is 1500 Rs/REC.

Author:

TANIMA AGGARWAL

MBA(PM)

(BSc. Hons, DU)

Power Tradi ng Updates

Power Trading in India: Updates

REGION BUY(MWh) SELL(MWh) NET

AUGUST'14 JULY'14

CHA

NGE

(%) AUGUST'14 JULY'14

CHAN

GE(%)

A1 9911.85 11244.85 -13 87051.2 60375.17 31 SELL

A2 67784.36 98789.94 -46 20364.88 8100.01 60 BUY

E1 498961.45 129947.9 74 221155.39 254689.34 -15 BUY

E2 45.99 30892.51 -67 193976.38 52302.45 73 SELL

N1 80865.17 124977.37 -55 615720.88 713210.56 -16 SELL

N2 694123.58 645117.01 7 133106.42 102742.57 23 BUY

N3 117428.49 179024.47 -52 39.56 NIL NIL BUY

S1 265799.38 277609.09 -4 103885.77 146272.52 -41 BUY

S2 89709.56 27573.12 69 1764.3 3410.4 -93 BUY

W1 89007.57 62949.91 29 44969.99 14180.44 68 BUY

W2 519215.28 681679.37 -31 376116.24 265042.97 30 BUY

W3 63056.57 49074.42 22 697757.82 698552.2 0 SELL

CLEARED

VOLUME 2495906.53 2318876.3

2495906.5 2318876.3

MCV 2695904.25 2541698.2 2695904.3 2541698.2

BID AREAS AVERAGE PRICES(/ KWh)

August'14 JULY'1

4

CHAN

GE

NORTH EAST

(A1,A2)

4.19 3.38 19%

EAST(E1,E2) 4.19 3.35 20%

NORTH(N1,N2) 4.19 3.35 20%

PUNJAB 4.23 3.63 14%

SOUTH(S1) 5.53 5.17 7%

SOUTH(S2) 5.63 5.38 4%

WEST(W1,W2) 4.15 3.22 22%

WEST(W3) 4.15 3.22 22%

REC Trading During Aug 2014 (no.)

Buy Bids Sell Bids Total Volume

Traded

IEX Solar 367 150091 367

Non Solar 15736 3949016 15736

PXIL Solar 796 185744 796

Non Solar 34945 47,66,759 34945

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CORE TEAM Po we r Sector a t a Glan ce . . . The Powe r N e wslet te r

Founder & ManagerFounder & ManagerFounder & Manager

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Designing & DevelopmentDesigning & DevelopmentDesigning & Development

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EditorialEditorialEditorial

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Vote Of Thanks. . .Vote Of Thanks. . .

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Prof MOHD. YAQOOT

The Power Sector at a glance is The Power Sector at a glance is an initiative by the students of an initiative by the students of

Power Management, UPES, DehradunPower Management, UPES, Dehradun . . The main objective of

Power newsletter is to provide a digital collection of all power

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Vote of thanks, Vote of thanks,

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Supported By : N Ponraja, Yaswanth K, Karthik V , Tanima Aggarwal, Prakhar Chaudhary

16 News at a Glan ce

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