< style="color: #0069a6;">Oil News Commentary: October- November 2016

India

The ongoing project to make India good again touched a raw nerve this month. While the bad Indian did not mind the government teaching him not to throw garbage in public spaces or defecate in the open so as to make India good again, he was unnerved when the government started teaching him when, where and how much of his currency he can use. Thankfully he was allowed to use currency notes to buy petrol and gasoline as these are ‘essential commodities’ that do not lend themselves to moral interventions. The average Indian is said to be gulping down petrol and diesel at unpredicted rates that domestic refiners were forced to make multi-billion dollar investments to upgrade their refineries and produce more profitable refined products such as petrol and diesel. IOC, BPCL and HPCL were reported to have plans to spend $20 billion on refinery expansions to process fuel oil into gasoline and diesel, at the expense of less profitable heavy products to boost their output to meet growing local demand for transport fuels. Apparently this would require India to sharply raise imports of fuel oil which will not be produced in sufficient quantities as most of the fuel oil will be turned into higher grade products. Though India is currently a net exporter of fuel oil, traders were expecting India to become a net importer of fuel oil by 2017. This is expected to narrow down the price differential between diesel and fuel oil from its current $17.61 a barrel. The demand for fuel oil is expected to increase with the government’s thrust on inland shipping. IOC is reportedly has the largest plans for expansion with a budget of ` 500 billion to increase refining capacity by about 30 percent to 2.08 mbpd. HPCL and BPCL were reported to have plans to spend about ` 766 billion to expand refineries and install fuel oil upgrading units, halting fuel oil output in almost all plants. The effort to include all petroleum products under the GST regime continued this month because without this India cannot be good again.  Petroleum is currently under the state list for taxation. As per the GST Constitutional Amendment Bill, petroleum products like LPG, kerosene and naphtha would attract GST. However, other products such as crude oil, natural gas, petrol, diesel, high-speed diesel and aviation turbine fuel have been excluded from GST for initial years. This means that these products will continue to be taxed by states. According to experts, GST would have a negative impact on the oil and gas industry due to compliance with dual taxation regime and non-creditable tax costs. Among other news that grabbed the headlines this month was the grant of licence to BP to set up 3,500 petrol pumps in India.  BP is reportedly the tenth company to enter the fuel retailing sector.  BP has been granted the licence to market petrol and diesel. IOC has the maximum number of petrol pumps with 25,363 outlets followed by HPCL with 13,802 stations and BPCL with 13,439 outlets. For a licence to retail auto fuels petrol, diesel and ATF, a company should have invested a minimum of ` 20 billion in exploration or production of oil and gas, oil refining, gas or product pipeline or terminals leading to additionally to the existing assets or creation of new assets in the eligible activities. Haldia Petrochemicals Ltd is the other company that has got the licence to set up 100 petrol pumps, mostly in West Bengal.

< style="color: #163449;">Rest of the World

After a brief period of volatility after the announcement of US election results, oil prices fell back as oversupply concerns prevailed. The IEA warned of ‘relentless global supply growth’ after OPEC boosted production, and reiterated projections for a balancing at some point in 2017. OPEC annual World Oil Outlook predicted that OPEC’s basket price will not hit $60/bbl until the end of the decade. Beginning with an average price of $40/bbl this year, OPEC saw its basket price gaining $5/bbl each year over the medium-term, topping $60/bbl in nominal terms by 2020. The price forecast for 2020 is $20/bbl lower than last year’s prediction. It expected cheap prices to lead to higher demand than originally expected. OPEC revised up its oil demand figures, expecting demand to hit 99.2 mbpd by 2021, 1 mbpd higher than last year’s estimate. OPEC said that it originally thought that the past two years of low oil prices would stoke economic growth in consuming countries. But because that outlook has not played out, the rebound in prices is taking much longer than expected. According to the IEA, OPEC production increased to 33.8 mbpd in October, up 230,000 bpd from the previous month. This could mean that OPEC’s effort at cutting production to its stated 32.5-33.0 mbpd range will be much more difficult to achieve. Returning to the results of the US elections, Harold Hamm of Continental Resources that profited from shale oil and gas, particularly in North Dakota and Oklahoma was reportedly leading the nomination for Energy Secretary under Trump. If he is chosen, he would be the first Energy Secretary to come directly from the oil and gas industry since the agency’s creation in 1977. Such a move would indicate Trump’s intention to fully support oil and gas drilling during his term. US crude oil exports were reported to have risen to 692,000 bpd in September, the highest on record, from about 657,000 bpd the previous month. Most of the exports (243,000 bpd) went to Canada followed by Singapore at 99,000 bpd. Exports to Europe were also high, with Italy receiving some 81,000 bpd and Spain 41,000 bpd. US crude exports have increased since the lifting of a decades-old ban in 2015. Some of the world’s biggest oil companies were reportedly planning to invest $1 billion over the next 10 years to develop technologies to capture and store emissions of greenhouse gases and improve energy efficiency. The investment from 10 companies including Saudi Aramco, Shell, Total, BP, Eni, Statoil, Repsol, CNPC, Petroleos Mexicanos and India’s Reliance Industries aims to deploy low-carbon technologies on a large scale. These companies are part of the Oil and Gas Climate Initiative, which is seeking ways the industry can support a global deal to tackle climate change while continuing to produce their hydrocarbon reserves. The companies, which together account for about a fifth of the world’s oil and gas output, last year backed policies consistent with limiting the increase in average global temperatures to within 2°C.

< style="color: #0069a6;">NATIONAL: OIL

< style="color: #163449;">BPCL second quarter net profit jumps 26 percent on higher crude throughput

November 13, 2016. Bharat Petroleum Corp Ltd (BPCL) reported a 26 percent rise in its standalone net profit to Rs 1,305.18 crore for the quarter ended September 30, 2016 as compared to Rs 1,034.52 crore in the year-ago period. Its total in the quarter under review stood at Rs 55,935.54 crore, up by 4.9 percent from Rs 53,272.73 crore in the corresponding period last year. The oil marketing company's crude throughput which is the total amount of crude that goes into a refinery before it comes out processed increased to 6.39 million metric tonnes (mmt) in the quarter from 5.96 mmt in the corresponding period. The company also reported that its sales grew by 5.68 percent in the three month period ended September 30, as compared to a growth of 5.23 percent in sales during the same period last year. Source: The Economic Times

< style="color: #163449;">State oil firms to give away 10 mn free cooking gas connections by March

November 9, 2016. State oil companies have given away 10 million free cooking gas connections to poor households in the past six months and may give away an equal number by March, exceeding the target of 15 million connections for the year, Oil Minister Dharmendra Pradhan has said. State companies have received 18.1 million applications for fresh connections under the Pradhan Mantri Ujjwala Yojana (PMUY) since the launch of the scheme on May 1. Around 15.6 million applicants have been found eligible, of which about 10.1 million have already been handed fresh gas connection while the balance will be covered in the coming months, Pradhan said. Under PMUY, launched to take cleaner cooking fuel to more poor homes, the government gives state companies the refundable deposit customers must pay for fresh cooking gas connections. Pradhan said the programme has been rolled out across 638 districts in the country and the biggest beneficiaries have been some of the most populous and backward states. Uttar Pradesh has nearly one-third of all beneficiaries, while Madhya Pradesh and Rajasthan have about 1.3 million each. Bihar is fourth on the chart with about 1 million fresh subscribers and West Bengal has 760,000 connections. India plans to add 100 million cooking gas subscribers in three years by March 2019, of which half are targeted to come from poor households. This is expected to increase cooking gas consumer base by 60% and protect more and more women from the hazardous kitchen smoke. Source: The Economic Times

< style="color: #163449;">If petrol pump refuses to accept Rs 500 and Rs 1000, govt will rescue: Oil Minister

November 9, 2016. Oil Minister Dharmendra Pradhan said if the petrol pumps refuse to accept Rs 1000 and Rs 500 notes then government would coordinate in the dealings. In a bid to flush out black, caused chaos as gas stations and some retailers refused to accept the larger bills, and bank ATMs stayed closed. Petrol stations run by state companies will be punished for not accepting the larger denomination bank notes, even though they had been ordered to accept them. Pradhan said people can contact him on twitter (@dpradhanbjp) to complain about any gas stations breaking the rule. Source: Business Standard

< style="color: #0069a6;">NATIONAL: GAS

< style="color: #163449;">RIL’s partner Niko puts KG-D6 stake for sale

November 14, 2016. Reliance Industries’ partner Niko Resources of Canada has put on sale its 10 percent stake in the flagging KG-D6 gas block off the east coast. Financially strained Niko had in February last year announced plans to sell its 10 percent stake in the KG-D6 block to pay off $340 million debt. It had planned to sell off the interest by April 30, 2015 but later extended it to May 31 and then to September 15, 2015. It called the sale off apparently because it could not find a buyer. KG-D6 has several undeveloped gas discoveries. RIL is the operator of the KG-D6 block with a 60 percent interest, while BP plc of the UK owns 30 percent stake. Source: The Hindu Business Line

< style="color: #163449;">GAIL scraps $7 bn 'Make in India' LNG carrier tender

November 13, 2016. After dragging for more than two years, state-owned gas utility GAIL (India) Ltd has scrapped a $7 billion tender for hiring newly built ships to ferry liquefied natural gas (LNG) from United States (US) after bidders did not agree to 'Make in India' terms. GAIL, which was forced by the oil ministry to add the Make in India condition to its tender, will now hire the ships from the global spot or current market to transport liquefied natural gas (LNG). In the tender, GAIL sought to time-charter nine newly built LNG ships of a cargo capacity of 150,000-180,000 cubic meters to LNG it has tied up from Sabine Pass and Cove Point LNG projects in US, with supplies slated to start from December 2017. GAIL has tied up 5.8 million tons per annum of LNG from the US which the newly built ships will ferry. Source: Business Standard

< style="color: #163449;">Tamil Nadu farmers hail oil ministry's decision to cancel CBM project

November 13, 2016. The farming community has hailed the Centre's announcement cancelling the project to explore extraction of coal bed methane (CBM) in Tamil Nadu. They have also demanded that the government notify its stand immediately. Oil Minister Dharmendra Pradhan had said the widespread agitation by the farming community against the project while announcing the decision. He also stated that there was no activity in the state on the shale gas front either. Swamimalai R Vimalnathan, secretary, Thanjavur District Cauvery Delta Farmers Protection Association, said that following the people's intense struggle against the project, the state government had earlier ordered that no clearance would be given to coal bed methane exploration project in the delta districts of Thanjavur, Tiruvarur and Tiruvarur. The state government had also passed a resolution in the assembly in this regard, he said. Chief Minister Jayalalithaa had also announced in the party's Lok Sabha election manifesto that the project would not be allowed and also passed a resolution in the assembly in this regard, he further said. Source: The Economic Times

< style="color: #0069a6;">NATIONAL: COAL

< style="color: #163449;">MMC to protest coal pollution issue

November 12, 2016. The Mormugao Municipal Council (MMC) has decided to agitate against the coal-handling issue, which is causing massive pollution in the port town. The decision was made during the council meeting. Chairperson Deepak Naik requested the council and the public to support him when he comes out openly on the streets against the coal pollution issue. Source: The Times of India

< style="color: #163449;">CIL to take advantage of 60 percent rise in global coal prices

November 10, 2016. Armed with a product mix of high and low energy coal, Coal India Ltd (CIL) is all set to take advantage of a 60 percent rise in international coal prices this year and has started targeting coastal power companies’ that heavily depend on imported coal. Many coastal plants source a mix of high and low energy coal. In most cases the high energy coal is sourced from the import market while low grade coal is either sourced from CIL or from the import market. Source: The Economic Times

< style="color: #163449;">CIL raises auction aim to stave off imports

November 9, 2016. Coal India Ltd (CIL) has dramatically increased the target for selling coal through auction to 120 million tonnes (mt) this financial year, which it hopes will help in import substitution and meet electricity needs. Last year, the miner had sold 66 mt of coal through auction. Coal secretary Anil Swarup had previously indicated that next financial year onwards, government-owned power plants would go for 10 percent domestic coal and private players will be encouraged to use more local fuel. CIL has been auctioning 10 mt of coal every month through auction to meet power demands of entities including power plants that either don't have fuel supply agreements with the state-owned coal miner or have lost their mines due to a Supreme Court order. This financial year, realisations so far have been 22 percent higher than the notified price. Last financial year, realisations were 33 percent higher than the notified price. CIL is offering discounts of 35 percent for lower grades and 20 percent for middle grades to power plants. ICICI Securities said September e-auction volumes came in at 20.5 mt, with realisation of Rs 1,570 per tonne, which is down by 28.1 percent year-on-year. CIL accounts for 80 percent of India's total coal production and has a domestic market share of 65 percent. Source: Business Standard

< style="color: #0069a6;">National: Power

< style="color: #163449;">UP power corporation's collections up owing to demonetisation

November 14, 2016. After the ban on notes of Rs 1,000 and Rs 500, Uttar Pradesh (UP) power corporation's collection has witnessed a sudden surge with the department in Bijnor district collecting a total of Rs 7.5 crore from consumers. Residents queued up outside the corporation's office to deposit their bills as the department is accepting old currency notes. While majority of the money was collected from people in towns, an amount of Rs 24 lakh was accumulated from rural areas of the district. Source: The Economic Times

< style="color: #163449;">Naxal-hit village in Jharkhand gets electricity for the first time

November 14, 2016. A Naxal-hit village in Jharkhand has celebrated Diwali in its "true sense" this year as electricity has reached the remote village for the first time. Garu village, about 1,400 kms from New Delhi and 175 kms from the state capital Ranchi, comes under the jurisdiction of Latehar district which is among the most Naxal-infested areas of the state. Source: NDTV

< style="color: #163449;">UP power department to accept old currency for bill clearance

November 11, 2016. The Uttar Pradesh (UP) power department is accepting old currency notes to clear consumer bills. However, no advance payments are allowed for the same. The move comes after directives were given by Piyush Goyal, minister of state with independent charge for power, coal, new and renewable energy and mines. Taking cognisance of the directive, the UP power department and consequently Noida power department, issued directions to its staff to accept old currency notes. Paschimanchal Vidyut Vitaran Nigam Ltd (PVVNL) said that the office of the power department will remain open till midnight to accept old currency against the bills. He also reiterated that old currency notes would be accepted only against current or pending power bills and not against any advance. Source: The Times of India

< style="color: #163449;">No power cut for delayed bill payment in Gujarat

November 10, 2016. The state finance department has issued a notification ordering that essential services like electricity, water, and gas not be suspended for non-payment of bills, till November 24. The notification comes a day after the PM's announcement that Rs 500 and Rs 1,000 currency notes were being withdrawn. The state government has also stipulated that no interest shall be recovered on late payments in the period in question. Source: The Economic Times

< style="color: #163449;">Noida promises to fix power snags in 15 minutes

November 9, 2016. The power distribution companies (discom) has formed a quick response team (QRT) to look into local faults in Noida and fix them. The team, which started functioning from November 1 and comprises 18 sub-divisional officers (SDOs) and about 50 junior engineers (JE), has to repair local or distribution faults in areas under them within 15 minutes of being informed. After the system is put in place, the entire Gautam Budh Nagar district will be put under QRTs by December this year. Mukul Singhal superintending engineer, PVVNL, said that he has been concerned about repeated complaints of power cuts because of local faults which have taken more than an hour to repair. According to Singhal, the SDOs and JEs would be assigning the sectors under their area to different teams to address faults. Under the measure, the QRT team will be expected to report to the problem spot within ten minutes of receiving the complaint and start work on fixing the problem. As of now, more than 20 sectors have been covered under such QRTs. They include sectors 22, 23, 24, 25, 32, 33 and 35. By and by, more sectors will be covered. Further, a log sheet will be maintained which will entail details of the complaint such as time taken to address the problem from the time it was reported. He said that if the system works fine, then the entire district will be placed under such QRTs by December. Source: The Times of India

< style="color: #163449;">Gujarat to get 11 new police stations to curb power theft

November 9, 2016. In a move to curb rampant power thefts, the Gujarat Urja Vikas Nigam Ltd (GUVNL) has decided to open 11 more electricity police stations across the state. GUVNL said that the process to start new police stations has already begun. GUVNL said that two police stations have already been started in Godhra and Jamnagar. GUVNL said that increase in the number of penalties will also help increasing the revenues. The state government has sanctioned 348 new posts including 22 women for the 11 proposed police stations that will come up in Bharuch, Valsad, Godhra, Kheda, Sabarkantha, Mehsana, Kutch-Bhuj, Jamnagar, Junagadh, Surendranagar and Amreli. The GUVNL already has five police stations in Vadodara, Rajkot, Ahmedabad, Surat and Bhavnagar that register about 200 cases of power thefts per day. The total number of theft cases average around 40,000 across the state every year and the revenue from penalties is estimated to be Rs 1.5 crore every day. The electricity police stations were started by the state government over a decade ago to penalize individuals and industries resorting to power thefts. Source: The Times of India

< style="color: #0069a6;">NATIONAL: NON-FOSSIL FUELS/CLIMATE CHANGE TRENDS

< style="color: #163449;">India and US launch $ 95 mn clean energy projects under OPIC financing

November 15, 2016. The United States (US) announced two financial projects worth $95 million in India to bring more energy-efficient appliances to rural sector, as part of its efforts to continue the global transition to zero-and-low carbon energy sources. The US has committed $70 million in Overseas Private Investment Corp (OPIC) financing for renewable energy projects in India; and announced to launch a $20 million partnership with the philanthropic sector to bring more efficient appliances to rural Indian villages. The $75 million OPIC financing is for a utility-scale PV project in Telangana. It is sponsored by ReNew Power Ventures. This commitment represents the rapid mobilisation of financing under a $ 250 million facility to support up to 400 MW of new solar power projects in India across multiple states, the White House said. Further the OPIC and Indian Government will this week formally launch a $20 million distributed solar facility in partnership with leading philanthropies, it said. Known as US-India Clean Energy Finance program (USICEF), it will address a key financing gap in the Indian distributed solar market by funding early-stage project preparatory work, it said. USICEF is anticipated to unlock up to USD 400 million in long-term debt financing from OPIC and private sector investors, the White House said. Source: The Economic Times

< style="color: #163449;">Purti Group co develops bio-CNG for vehicles

November 15, 2016. Manas Agro Industries and Infrastructure Ltd (MAIIL) of the city, an extension of Purti Group of Industries, has developed a process of producing bio-CNG (compressed natural gas) that can be used as fuel for vehicles. MAIIL is planning to set up fuel stations or bio-CNG dispensing units in the city in about 8-9 months. The fuel will be produced from molasses and will be carried in cascades to the fuel stations unlike other CNG which is transported through pipeline. MAIIL said that the bio-CNG would cost Rs 40-45 per kg and a scooter can run 65 km in one kg. The idea for bio-CNG came from Spectrum Renewable Energy Pvt Ltd of Hyderabad which is testing the use of this new fuel in commercial vehicles. Bio-CNG is being produced at Warna Nagar near Kolhapur. Considering the benefits, government needs to make changes in rules and infrastructure so as to allow use of bio-CNG as fuel. The government should allow converting existing vehicles like scooters or three wheelers into CNG-friendly vehicles by attaching a conversion kit in it. Old vehicles too can be permitted to be converted into bio-CNG vehicles. An Israeli company I Tuk is learnt to have developed a kit that is already being used in Gujarat. Source: The Times of India

< style="color: #163449;">India's carbon emissions increased by over 5 percent in 2015

November 14, 2016. India's carbon emissions from burning fossil fuels increased by 5.2 percent while China's decreased by 0.7 percent in 2015, according to new research which found that global CO₂ emissions remained nearly flat for three years in a row. India contributed 6.3 percent of all global CO₂ emissions, with emissions increasing 5.2 percent, in 2015 continuing a period of strong growth, according to researchers at the University of East Anglia (UEA) in the UK and the Global Carbon Project. Source: Business Standard

< style="color: #163449;">Lightsource to invest Rs 65 bn in India in 2-3 yrs

November 14, 2016. UK-based Lightsource Renewable Energy will invest Rs 6,500 crore over the next 2-3 years to set up 1000 MW solar energy projects in India. Lightsource recently won a 50 MW solar project in Maharashtra under the Centre’s ambitious solar programme. This is the maiden solar project secured by the company in India. Earlier last year, Lightsource had announced tie-up with SREI Infrastructure Finance Ltd as its the first partner for foraying into Indian solar energy space. In the last 5 years, Lightsource has deployed over 2 billion pounds to develop and operate 1300 MW of solar PV plants in the United Kingdom. Source: The Indian Express

< style="color: #163449;">Rajasthan villages realizing 'Digital India' dream on solar power

November 13, 2016. People in remote villages of Rajasthan's Alwar district are catching up on the 'Digital India' trail as many of them, including women, have started using internet being provided through unique solar-run telecom towers. The advantage of these telecom towers are manifold, noting the biggest being their ability to run on low power which too is taken from solar energy. Source: The Economic Times

< style="color: #163449;">Govt to promote solar powered charkhas, rickshaws under off-grid solar scheme

November 13, 2016. The government is looking at promoting solar powered charkhas as well as rickshaws in the country and has invited views from stakeholders on design and costing of the products. Ministry of New & Renewable Energy (MNRE) said that manufacturers and developers of solar powered charkhas and solar rickshaw have been requested to send their comments on the technical specifications with design by November 22. Since the charkha is a small machine, it is feasible to operate the charkha using solar energy. A commercially viable solar system for the operation of 8-10 spindles charkha has been developed by many institutions. The technology is now well proven. To revive the large numbers of charkhas going out of operation in villages, solar energy could be easily harnessed. Solar charkha kit attachment has been developed to operate the existing 8-10 spindle charkhas which are normally used for manual operation in practice. A motorised mechanism ensures an even power supply, which in turn ensures a better quality of yarn. The government has ambitious plans for deployment of 175 GW renewable power capacities by 2022, including 100 GW of solar and 60 GW of wind. Source: The Economic Times

< style="color: #163449;">NTPC's Tapovan power plant to be commissioned by 2019

November 13, 2016. NTPC's 520 MW Tapovan Vishnugad hydroelectric power plant in Uttarakhand, involving a project cost of around Rs 4,000 crore, is likely to be commissioned by March 2019. The project is facing inordinate delays mainly due to flash floods in 2012 and 2013. NTPC's Tapovan Vishnugad project involves setting up a hydel power plant across the river Dhauliganga in Chamoli district of Uttarakhand. The project was originally scheduled to be commissioned in the year 2011. The project had recently come for review through Pragati platform. Prime Minister Narendra Modi reviews vital infrastructure projects through Pragati. Source: Business Standard

< style="color: #163449;">Ethanol use can reduce India’s fuel imports: PM Modi

November 13, 2016. Prime Minister (PM) Narendra Modi said the use of ethanol can reduce India’s fuel imports and cited Brazil’s example in successfully replacing gasoline to a large extent. Ethanol is a renewable fuel made from corn and other plant materials. Source: The Indian Express

< style="color: #163449;">IIT-Delhi shows how Punjab can re-use farm waste to produce sustainable energy

November 13, 2016. An IIT-Delhi team has provided technical support to Asia's first biogas-based power plant which is now operating on paddy straw for large-scale biogas production in Fazilka, Punjab. The system is based on 100 percent use of paddy straw and has been generating nearly 4,000 cubic metres per day of biogas from 10 tonnes of straw. This is in turn generating 1 MW power. This sounds like welcome way out of the pollution mess that the capital has found itself in. Going by reports, 70 percent of Delhi's air pollution is due to stubble burning in Punjab, Haryana and other parts of north India. Centre for Rural Development and Technology (CRDT) of IIT-D said paddy straw, if not burnt, could yield 2.181 million tonnes of oil equivalent or 25,365 GWh per year. Source: The Economic Times

< style="color: #163449;">Maharashtra taps solar energy to power agriculture sector

November 12, 2016. Maharashtra government has drawn up a scheme to ensure power supply to the agriculture sector for 12 hours a day through feeder-based solar energy, Chief Minister Devendra Fadnavis said. So far, 10,000 solar agricultural pumps have been set up across the state, he said, adding 16 renowned companies dealing in these instruments from across the world have approached the government to facilitate their installation. Giving statistics, Fadnavis said 94,303 pumps were cleared for installation in the last two years in Vidarbha followed by Marathwada (66,790), Western Maharashtra (48,000) and North Maharashtra (18,000). Under the scheme, farmers can use feeder-based solar pumps instead of individually buying pumps. Source: Business Standard

< style="color: #163449;">Telangana has commissioned 3.8 GW of solar power

November 11, 2016. Telangana has so far commissioned 3,800 MW of solar power and 100 MW of wind power, NITI Ayog Advisor Anil Jain said. Jain met Arvind Kumar, Principal Secretary (Industries, Commerce and Energy), of Telangana to discuss the integration of renewable energy into electricity grid by promoting coordination between the Centre and states. They also discussed interventions required to promote India as a renewable energy investment destination for achieving national renewable energy targets. NITI Aayog has been assigned the task of promoting India as a renewable energy investment destination so that its target of achieving 175 GW can be met by 2022. Kumar said the State Government is planning to actively encourage renewable energy and go for Hybrid (wind and solar) generation in the Hyderabad Pharma City and National Investment and Manufacturing Zone (NIMZ). Kumar asked the NITI Aayog to look into infrastructure constraints and suggest models which would encourage renewable energy and serve as a sustainable model for discoms (distribution companies). Jain said the NITI Aayog would assist the States in achieving their renewable energy targets. Source: Business Standard

< style="color: #163449;">International body pats India for its transition to combat climate change

November 11, 2016. India's growth story in renewable energy sector is being monitored globally and organisations are confident that India will exceed its National Determined Contribution (NDC) targets. International bodies feel that the rapid growth in renewable energy, combined with sustained reduction in coal imports and increasing challenges to the viability of new coal-fired power plant construction - with ultra mega coal projects cancelled, gives an indication of the transformation that is beginning in India. Climate Action Tracker (CAT) estimates that if governments were to fully implement their NDC global warming in 2100 of 2.8 degree Celsius above pre-industrial would result i.e there is a likely chance of holding warming below 3.1 degree Celsius. CAT analysis found that developments in India were among the most important underway globally. India's ambitious targets of increasing renewable energy capacity to 175 GW by 2022, with nearly 58% expected to be generated from solar energy. By 2022, India is expected to generate 175 GW of power via renewable sources, out of which 100 GW will be from solar energy, 60 GW from wind energy, 10 GW from bio energy and 5 GW from small hydro power projects. And out of the 100 GW of solar energy, it is anticipated that 40 GW will be generated via rooftop solar installations, 30 GW from Solar Parks and the rest 30 GW from other government/state and private schemes. Analysts feel that India's Paris Agreement NDC commitment is weaker than actions resulting from current policies. Neither the NDC nor current policies are ambitious enough to limit warming to below 2 degree Celsius, let alone the Paris Agreement's stronger 1.5 degree Celsius limit, unless other countries make much deeper reduction and comparably greater effort. Source: The Economic Times

< style="color: #163449;">PM Modi heads to Japan to seal nuclear deal amid uncertainty over US policy

November 10, 2016. Prime Minister (PM) Narendra Modi headed to Japan to seal a landmark nuclear energy pact and strengthen ties, as China’s regional influence grows and Donald Trump’s election throws United States (US) policies across Asia into doubt. Officials in New Delhi and Tokyo said a deal that will allow Japan to supply nuclear reactors, fuel and technology is ready for signing after six years of negotiations to find a way around Tokyo’s reservations about such an agreement with a country that has not signed the nuclear Non-Proliferation Treaty (NPT). India says the NPT is discriminatory and it has concerns about nuclear-armed China as well as its long-time rival Pakistan. Indian foreign ministry said the two sides had reached a broad agreement on nuclear collaboration as early as last December and had since been trying to finalise the document. The nuclear agreement with Japan follows a similar one with the United States in 2008 which gave India access to nuclear technology after decades of isolation. India hopes to lift ties with the United States to a new height, Modi said in a message to US President-elect Donald Trump. India is in advanced negotiations with US-based Westinghouse Electric, owned by Japan’s Toshiba, to build six nuclear reactors in southern India, part of New Delhi’s plan to ramp up nuclear capacity more than ten times by 2032. Source: Livemint

< style="color: #163449;">Centre, state governments failed to provide better air quality: Environmentalist

November 9, 2016. In the wake of rising levels of air pollution in the national capital, environmentalist Vimlendu Jha said both the Centre as well as the state government have failed to provide better air quality in Delhi. Expressing displeasure over the fact that the Supreme Court and the National Green Tribunal has to actually intervene on day to day issues of governance, Jha said the situation that we are in today is the responsibility of respective state governments and the Central Government and they all have totally failed and that's why the air pollution levels have peaked. The Supreme Court defined pollution in Delhi as "dreaded", "severe" and "disaster", and asked Centre to response on its policy to tackle pollution. Delhi Lieutenant Governor Najeeb Jung ordered to de-registrar old diesel vehicles to counter smog levels that touched an alarming level after Diwali celebrations. Source: Business Standard

< style="color: #163449;">Karnataka pitches for UK investment in renewable energy

November 9, 2016. Karnataka Chief Minister Siddaramaiah pitched for investment from United Kingdom (UK)-based firms in renewable energy and for creating smart cities, saying that UK's strength in research and innovation and the implementation capability of his state can forge a unique partnership. Source: The Times of India

< style="color: #0069a6;">International: Oil 

< style="color: #163449;">Africa Oil, partners to begin drilling new Kenya wells in December

November 15, 2016. Africa Oil and its partners in Kenya will drill up to eight exploration and appraisal wells starting from December to boost proven resources and improve financing prospects for field development and an export pipeline. The group, which includes Tullow Oil and Maersk, initially planned to build a single pipeline to connect Ugandan oil fields and the Kenyan project to Kenya's coast, but Uganda opted to build its own pipeline via Tanzania. The South Lokichar Basin in north Kenya is estimated to have 766 million barrels of recoverable contingent oil resources. Kenya plans to start small-scale production in 2017, involving trucking about 2,000 barrels per day to the coast. Source: Reuters

< style="color: #163449;">Shell plans $10 bn investment in Brazil over the next 5 yrs

November 15, 2016. Shell plans to invest US$10 bn in Brazil over the next five years, as the country is expanding the role of the private sector in the oil industry. The company is already active in Brazil, as a partner of Petrobras in the large Libra oil field and through BG Group's assets in the country. Source: Enerdata

< style="color: #163449;">Europe sends oil as far as Cuba and Australia as glut grows

November 15, 2016. The Mediterranean is rapidly becoming the world's most oversupplied oil market, as exports from Organization of Petroleum Exporting Countries (OPEC) heavyweights Iraq and Iran, rising star Kazakhstan and the return of Libyan crude force traders to get creative in marketing their barrels. Exports of CPC Blend, a light, sweet crude, rose to 1.0 million bpd in October, compared with an average of 600,000 bpd in recent years, largely driven by the first shipments from Kazakhstan's Kashagan field. As Kashagan is ramping up output, CPC will be shipping around 1.4 million bpd in the next few years. Data shows a vessel with Algerian Saharan crude sailing as far as Australia and Cuba, while trader Glencore booked a cargo of Libyan crude for the 20,000 km trip to Hawaii and Sweden bought Kurdish oil for the first time. Source: Reuters

< style="color: #163449;">OPEC cut likely, $70 in sight for 2017: Andurand

November 15, 2016. The Organization of Petroleum Exporting Countries (OPEC) is still likely to agree on an output freeze this month and prompt a sharp rally in oil prices, despite disputes among its members, Hedge fund manager Pierre Andurand said. The years-long supply glut that hammered oil prices is gone with no sign that production will grow next year, Andurand said. The founder Andurand Capital Management, which oversees $1.4 billion in its main strategy, put the chance of an agreement by the OPEC at 70 percent. Saudi Arabia, OPEC’s biggest producer, wants a deal to boost prices and head off a long-term shortage in supply, Andurand said. A freeze could bump up prices to $55 to $60 a barrel by year’s end, he said. Even without an agreement, prices will “slowly trend upward" towards $60 to $70 by the end of 2017. Source: Bloomberg

< style="color: #163449;">China October crude oil output drops to lowest since May 2009

November 14, 2016. China's daily crude oil production in October fell to the lowest in more than seven years, statistics bureau data showed, as producers remain reluctant to drill new wells amid tepid oil prices and as output drops from aging wells. Oil output last month in China, the world's second-largest crude consumer, dropped 11.3 percent from the same time a year ago to 16.05 million tonnes, the National Bureau of Statistics reported. The figure is up slightly from September's 15.98 million tonnes. On a daily basis, October production was 3.78 million barrels per day (bpd), the lowest since May 2009, and down from 3.89 million bpd in September. Prices for international crude benchmark Brent climbed to as high as $53.73 a barrel in October though prices ended the month 1.5 percent lower than at the end of September. For the first ten months of 2016, domestic supply dropped to 166.82 million tonnes, or 3.99 million bpd, compared with 4.30 million bpd in the same period last year, the bureau data showed. For natural gas, China produced 10.8 billion cubic meters (bcm) in October, down 1.4 percent from a year ago. Year-to-date natural gas production reached 111.2 bcm, up 1.9 percent from the same period a year ago. Source: Reuters

< style="color: #163449;">China October crude oil output down 11.3 percent on year

November 14, 2016. China's October's crude oil production was down 11.3 percent from the same period last year to 16.05 million tonnes, or 3.78 million barrels per day, data from the statistics bureau showed. October crude oil runs rose 5.5 percent on year to 47.05 million tonnes, or 11.08 million barrels per day, the highest level since at least 2011, the data showed. Source: Reuters

< style="color: #163449;">Chinese companies will build a 120k bpd refinery in Russia

November 14, 2016. The Canadian company Genoil has signed a US$50 bn Letter of Intent (LoI) to develop oil fields and construct clean technology upgraders, refineries and pipelines in Russia. The scope of the project is to produce 3.5 mn barrels per day (bpd) of oil. As part of the LoI, GenOil, along with a large consortium of Chinese engineering and services companies, will construct a greenfield 120,000 bpd (6 million tonnes per year) oil refinery in the State of Chechnya, South Est of Russia. The finance will be provided in full from Chinese banks to the Russian companies involved. The project will be listed in a trade agreement, pact or cooperation agreement between Russia and China. Source: Enerdata

< style="color: #163449;">Russia expects oil production to rise to 555-560 mn tonnes by 2020

November 14, 2016. The Ministry of Energy of Russia expects crude oil production to increase from the current 532 million tonnes (2015) to 555-560 million tonnes by 2020. The Russian market share on the global oil market would remain stable, at around 12%. Source: Enerdata

< style="color: #163449;">Iraq plans to export 3.163 mn bpd of Basra crude in December

November 14, 2016. Iraq plans to export 3.163 million barrels per day (bpd) of Basra crude from its southern ports in December, slightly lower than in this month. The allocated December volume will be the lowest in four months, although Iraq exported more than what it had planned in October, seeking to be exempt from OPEC's plan to limit supplies. Basra Light crude exports in December are set to edge up to 2.437 million bpd. Basra Heavy exports are expected to fall to 726,000 bpd in December, from 900,000 bpd in November. Source: Reuters

< style="color: #163449;">Kazakhstan's Kashagan produces 201k tons of oil in October

November 14, 2016. Kazakhstan's Kashagan oil field produced about 201,000 tons of oil in October, its first full month of operation, data from the Energy Ministry's analytical centre showed. The October output figure is the equivalent of daily production of 52,600 barrels, while Kazakh officials have said that in order to reach commercial output the field needs to achieve stable production of at least 75,000 barrels per day. The field off Kazakhstan's Caspian coast has cost about $55 billion to develop, according to analyst estimates. It first started production in 2013 but output was suspended shortly afterwards because of technical problems with the gas pipelines. Source: Rigzone

< style="color: #163449;">ICE proposes limit on Dubai oil futures positions in 2017

November 14, 2016. Intercontinental Exchange Inc (ICE) has proposed limiting the size of positions investors can hold next year when trading Dubai futures, a document issued by the exchange to its members showed. The proposed measure is aimed at securing the reliability of the contract, as trade volumes and open interest for the Asian crude oil benchmark have grown since 2012, ICE said. ICE has proposed a position limit of 6,000 lots, or 6 million barrels of oil, that will apply from the first to the final trading day of the expiry month. Source: Reuters

< style="color: #163449;">Iran opens 3 new oilfields as it boosts output

November 13, 2016. Iran opened three oilfields with a total production of more than 220,000 barrels per day (bpd), as the country ramps up its production after the lifting of sanctions. President Hassan Rouhani launched the first phases of the Yadavaran and North Azadegan fields as well as the North Yaran field, which are shared with neighboring Iraq. Yadavaran will have a production of up to 115,000 bpd in its first phase and North Azadegan's output is 75,000 bpd. North Yaran will initially produce 30,000 bpd. Source: Reuters

< style="color: #163449;">OPEC consensus 'imperative' on output cut: Saudi Energy Minister

November 13, 2016. Saudi Energy Minister Khalid al-Falih has said it was imperative for OPEC members to reach a consensus on activating a deal made in September in Algiers to cut oil production. Source: Reuters

< style="color: #163449;">Russian oil major Rosneft has cash for deals despite profit fall

November 11, 2016. Russia's top oil producer Rosneft reported strong cashflow, strengthening its position for a continuing acquisition drive despite a worse than expected 77 percent decline in third-quarter net profit. Rosneft, which bought a controlling stake in mid-sized oil company Bashneft for 323 billion rubles ($4.9 billion), has been looking for ways to increase its global exposure and become a leading international oil major. Rosneft said that it had generated free cashflow of $4.1 billion in the first nine months of the year in contrast to negative cashflow at several rival oil majors. Rosneft said it would have to redeem debt of $3.8 billion in the fourth quarter and $12.9 billion in 2017. Source: Reuters

< style="color: #163449;">Japan passes law to allow JOGMEC to invest in foreign oil, gas firms

November 11, 2016. Japan's parliament passed a bill to allow Japan Oil, Gas and Metals National Corp (JOGMEC) to participant in purchases of foreign oil and gas companies by Japanese firms or buy into foreign state-owned oil companies on its own. The move will provide more financial muscle for Japanese companies to compete for global energy assets, just as other resource-hungry Asian economies such as China and India are also looking to snap up depressed oil assets. Previously, JOGMEC was restricted to involvement in purchases of foreign natural resource assets by Japanese companies. Source: Reuters

< style="color: #163449;">US drillers add oil rigs for 21^st week in 24: Baker Hughes

November 11, 2016. United States (US) oil drillers increased rigs this week for a 21^th week in the last 24, as energy firms follow through on plans to add rigs made months ago when crude was still trading over the key $50 a barrel level analysts said should lead to more drilling. Drillers added two oil rigs in the week to November 11, bringing the total count up to 452, the most since February, but still below the 574 rigs seen a year ago, energy services firm Baker Hughes Inc said. Source: Reuters

< style="color: #163449;">Nigeria proposes broad oil sector overhaul, sale of stakes in NNPC

November 11, 2016. Nigeria outlined a plan to overhaul state oil company Nigerian National Petroleum Corp (NNPC) and eventually list it on the stock exchange in a bid to modernize and streamline an industry known for graft and mismanagement. The ministry of petroleum released a draft to underpin industry reform stalled for a decade amid disagreements and political infighting over how best to manage the nation's energy resources. The West African nation has been mulling a sale of oil assets to raise hard currency as a slump in vital oil revenues has eroded the budget. Source: Reuters

< style="color: #163449;">Iraq oil ministry postpones upstream bidding round to mid 2017

November 10, 2016. Iraq's oil ministry is postponing a bidding round for 12 small and medium-sized oil fields across three provinces from November 30 to the middle of next year, the ministry said. The ministry announced the tender, pre-qualifying 19 bidders including six Japanese firms, the UAE's Dragon Oil, Mubadala Oil and Crescent Petroleum as well as Glencore Exploration Ltd and companies from China, Russia, Italy, Kuwait, Indonesia, Vietnam, Thailand and Romania. Source: Reuters

< style="color: #163449;">Global oil output could be frozen at November level: Russia

November 10, 2016. Russian Energy Minister Alexander Novak said global crude oil output could be frozen at November levels if the world's leading oil producers reach an agreement on November 30. Novak said he saw higher chances of reaching the agreement than before. Russia will take part in any meeting between OPEC and non-OPEC countries if such a meeting takes place. Novak reiterated that it was highly important to reach the agreement on output on November 30. He said Russia would prefer the output to be frozen. Source: Reuters

< style="color: #163449;">IEA sees global market awash with oil in 2017 if no OPEC cut

November 10, 2016. The oil market risks running another surplus in 2017 without an output cut from OPEC, as producers around the globe ramp up supply and demand growth falters, the International Energy Agency (IEA) said. In its monthly oil market report, the group said global supply rose by 800,000 barrels per day (bpd) in October to 97.8 million bpd, led by record OPEC output and rising production from non-OPEC members such as Russia, Brazil, Canada and Kazakhstan. Source: Reuters

< style="color: #163449;">China company signs MoU with BP on Caribbean oil project

November 9, 21016. Commodity trader Guangdong Zhenrong Energy Co. Ltd has signed a Memorandum of Understanding (MoU) with BP Plc for commercial cooperation on an oil refinery in the Caribbean, according to the Chinese company. Guangdong Zhenrong, with support from China's oil majors, plans to upgrade the Isla refinery on the Caribbean island of Curacao and also to build a gas terminal, at a total estimated cost of $5.5 billion. That would give China, the world's No.2 oil consumer, a foothold in a strategic hub for energy supply. Under the MoU signed, BP would supply crude oil to the 335,000 barrel per day refinery, located just 30 miles (48 km) northwest of Venezuela, and also take all refined fuel from the plant, the company said. Source: Reuters

< style="color: #163449;">Protests shut flow station on Nigerian Escravos oil line: Shell

November 9, 2016. Royal Dutch Shell has shut down an Escravos crude oil flow station in Nigeria's Niger Delta after villagers demanding aid staged a protest, the firm and residents said. The Niger Delta Avengers (NDA) militant group said it had attacked the Forcados crude export line. Shell said it was "engaging" the Delta state government and local leaders to discuss the grievances. Demanding a greater share of oil revenues in the Niger Delta region, militants have made a number of attacks on crude and gas pipelines this year. One of the most active militant groups, the NDA, confirmed that it had attacked Shell's Forcados export pipeline. An attack forced the closure of the Trans Forcados Pipeline, cutting the OPEC member's oil production by at least 200,000 barrels per day. Before attack, Oil Minister Emmanuel Ibe Kachikwu said oil output had risen to 2.1 million barrels a day. Before that, a wave of attacks had caused production to plunge to just 1.37 million barrels per day in May, the lowest level since July 1988, according to the International Energy Agency, from 2.2 million barrels in January 2016. Source: Reuters

< style="color: #0069a6;">International: GAS

< style="color: #163449;">Obama administration completes rule to curb methane from federal oil, gas production

November 15, 2016. The United States (US) Interior Department finalized rules aimed at preventing methane leaks from oil and gas production on federal and tribal lands. Interior's Bureau of Land Management (BLM) said the rule, updating 30-year-old regulations that govern flaring, venting and natural gas leaks from oil and gas production, could avoid wasting up to 41 billion cubic feet of natural gas per year. An Interior Department fact sheet said that between 2009 and 2015, oil and gas producers vented, flared and leaked 462 billion cubic feet of natural gas on federal and Indian lands, wasting as much as $23 million annually in royalty revenue. The rule would phase in a limit on flaring over several years affecting 16 percent of oil wells, which account for 87 percent of gas flared, the BLM said. Oil and gas operators can comply by expanding gas-capture technology or connecting wells to existing infrastructure through gathering lines. BLM could also set and adjust royalty rates for oil and gas drilled on federal land to at or above 12.5 percent. Source: Reuters

< style="color: #163449;">AGL mulls importing LNG to Australia's southeast

November 14, 2016. AGL Energy is considering importing liquefied natural gas (LNG) to southeastern Australia from 2021, in a move that could ease the grip on supply that four producers led by ExxonMobil Corp hold in the region. Australia is on track to become the world's top exporter of LNG, but that is paradoxically creating a shortage at home as gas is pulled away from local markets in the southeast. AGL said it was running a A$17 million ($13 million) study on building an LNG import terminal and aimed to make a final investment decision in 2018-19 on a project that it estimated would cost between A$200 million and A$300 million. The Australian Energy Market Operator sees a shortfall in domestic gas looming after 2019. Source: Reuters

< style="color: #163449;">Putin tells Merkel gas piped to EU could be siphoned off in Ukraine

November 14, 2016. Russian President Vladimir Putin warned Germany's Chancellor Angela Merkel of the risk of Ukraine siphoning off Russian gas destined for Europe, the Kremlin said. The two leaders agreed that talks would be held involving the Russian energy ministry, gas giant Gazprom and the European Commission on the issue. Putin said the risks of unsanctioned gas siphoning by Kiev had increased because of expectations of a cold winter. Most of the gas sold by Russia to European countries flows along pipelines crossing Ukraine. Russian gas accounts for over a third of gas consumption in the European Union (EU). Neighbouring Ukraine has not bought gas from Russia for a year because of its political conflict with Moscow, which annexed Ukraine's Crimea region in 2014. In the past, the European Commission has successfully brokered deals between Moscow and Kiev on the sale of Russian gas to Ukraine. Putin said Russia was ready to resume gas deliveries to Ukraine at "any second" if Kiev agreed to pre-pay for supplies. Source: Reuters

< style="color: #163449;">Algeria Tiguentourine gas plant back at capacity before year's end: Sonatrach

November 13, 2016. Algeria's Tiguentourine gas plant will resume full production with the start of its third train before the end of the year after a deadly militant attack in 2013, state energy firm Sonatrach said. It also said production from the CAFC perimeter at the Menzel Ledjmet field, operated jointly by Sonatrach and Italy's Eni, will be an estimated 10,000 barrels per day. The third train at the Tiguentourine gas plant will come online later this month or in December to produce 6 million cubic metres per day, Sonatrach said. Current production at the plant, operated by Sonatrach, BP and Statoil, is estimated at 16 million cubic metres. Crude oil output rose 8 percent in the first 10 months of 2016 compared to the same period last year, Sonatrach said. Source: Reuters

< style="color: #163449;">Indonesia's Bontang LNG plant expects 10 percent decline in 2017 output

November 11, 2016. The output from Indonesia's Bontang liquefied natural gas (LNG) plant is expected to decline by 10 percent in 2017 to 160 cargoes from a forecast output of 177 cargoes this year, the company said. Bontang, operated by state energy company Pertamina unit Badak NGL, expects supply from the Mahakam block, its main source of natural gas, to decline in 2017. The energy ministry said Indonesia had 63 uncommitted LNG cargoes for 2017 delivery. Bontang started operating in July 1977 and shipped its 9,000^th cargo. The facility is currently running half of its eight LNG trains. Pertamina is due to take over operation of the Mahakam block, Indonesia's top producing gas field, in January 2018 from French oil major Total, and plans to spend around $180 million on 19 wells next year to prevent output from dropping steeply. Total said it expects Mahakam to produce between 1.4 billion and 1.5 billion cubic feet per day (bcfd) of natural gas in 2017, slightly below its target of 1.5 bcfd this year. Source: Reuters

< style="color: #163449;">Trump's election will not have an impact on Iran gas deal: Total

November 9, 2016. The election of Donald Trump as the President of the United States will not have an impact on the investments of French oil and gas company Total in Iran, the firm's head of gas, renewables and power said. Total became the first western energy company to sign a major deal with Tehran since the lifting of international sanctions earlier this year. Source: Reuters

< style="color: #0069a6;">International: Coal

< style="color: #163449;">China coal output extends decline despite govt call to reopen mines

November 14, 2016. China's October coal output fell 12 percent compared with a year earlier, data showed, even after the government gave operators the go-ahead to ramp up output and reopen mines in a bid to top up power producers' inventories ahead of winter. For the first 10 months of the year, China produced 2.74 billion tonnes of coal, down 11 percent from a year earlier, the National Bureau of Statistics (NBS) data also showed. At 281.85 million tonnes, October output was ahead of September's 277 million tonnes, according to NBS data. But on a daily basis, the October level still meant a drop of 1.5 percent with the shorter month of September. Source: Reuters

< style="color: #0069a6;">International: Power

< style="color: #163449;">PPIB to establish 1.2 GW power plant at Muzaffargarh

November 15, 2016. Private Power and Infrastructure Board (PPIB) was actively working for development of R-LNG based independent power plant of 1,200 MW to generate reliable and affordable electricity. The power from the project would be added to the national grid by 2018, which would contribute significantly in eliminating load shedding. PPIB had already initiated the process and invited bids through International Competitive Bidding from the prospective investors for installation of combined cycle power plant of 1,200 MW to address the power shortfall challenges. Last date for submission of bids for the project is December 5, 2016. Source: Daily Times

< style="color: #0069a6;">INTERNATIONAL: NON-FOSSIL FUELS/ CLIMATE CHANGE TRENDS

< style="color: #163449;">Japanese NRA clears reactor restart at Genkai nuclear plant

November 15, 2016. The Nuclear Regulation Authority (NRA), Japan's nuclear regulator, has cleared two nuclear reactors for restart, despite a rising opposition of residents. A preliminary report by the NRA estimates that the third and fourth unit of the Genkai nuclear power plant, operated by Kyushu Electric in the Saga prefecture, meet post-Fukushima safety rules. Final approval will be granted after a 30-day comment period. Source: Enerdata

< style="color: #163449;">Morocco plans to tender 800 MW of solar plants by early 2017

November 15, 2016. The Moroccan Agency for Solar Energy plans to launch tenders for the construction of two 400 MW solar power projects by the start of 2017. The solar projects would be located near the central town of Midelt and would use concentrated solar plant and photovoltaic technologies. Source: Enerdata

< style="color: #163449;">Solar Impulse Foundation launches World Alliance for Clean Technologies

November 14, 2016. The Solar Impulse Foundation has launched the World Alliance for Clean Technologies to drive collaboration and support the transition to a low carbon global economy. Launched during the twenty-second session of the Conference of the Parties (COP 22), the new clean technology alliance aims to federate the main actors in the field of clean technologies and create synergies, promote profitable solutions to the world’s environmental and health challenges. The launch also follows successful completion of first round of solar flight around the globe. Source: Energy Business Review

< style="color: #163449;">Rich countries told to close coal plants by 2030 to save climate

November 12, 2016. Rich countries must close all their coal-fired power plants by 2030 to have a chance of holding global warming to tolerable levels, a report from an environmental research group said. China would have to phase out the most polluting fossil fuel by 2040 and the rest of the world by 2050, according to Climate Analytics, a Berlin-based non-profit that is studying how nations can meet the emissions goals they agreed at United Nations talks in Paris last year. The findings in a report released illustrate the difficulty in achieving the UN goal of holding global warming to well-below 2 degrees Celsius (3.6 degrees Fahrenheit). The world already has 8,175 coal plants and is building another 733, providing about 40 of all electricity. Envoys from more than 190 nations are meeting this week and next in Marrakech, Morocco, to discuss how to take forward the ambitions they set out in Paris. Pollution from coal plants could create 2.5 times more carbon dioxide emissions than allowed by scenarios consistent with 2 degrees of warming, the report said. Source: Bloomberg

< style="color: #163449;">Exxon adds New York to suit in bid to stop climate change probe

November 12, 2016. Exxon Mobil Corp sued New York Attorney General Eric Schneiderman to stop his investigation into what the company knew about climate change. The oil giant revised a lawsuit it filed in June against Massachusetts Attorney General Maura Healey. Massachusetts, New York and other states are investigating whether Exxon Mobil violated securities laws and consumer-protection rules by withholding information allegedly obtained as early as the 1970s that man-made emissions were changing the climate. Source: Bloomberg

< style="color: #163449;">US EPA moves to deny refiner requests to change biofuels program

November 10, 2016. The United States (US) Environmental Protection Agency (EPA) said it plans to deny several petitions from oil groups to change the country's biofuels program, an issue that has deeply divided the petroleum industry. The oil industry has spent millions lobbying against the Renewable Fuel Standard, a 2005 policy that establishes annual targets for the volume of biofuels that need to be blended with gasoline and diesel. Petroleum companies say it will take major overhauls to fueling station infrastructure and vehicle design before they can meet biofuel targets set by Congress. Source: Reuters

< style="color: #163449;">DEWA will build a 250 MW hydropower plant in Hatta

November 10, 2016. Dubai Electricity and Water Authority (DEWA) has announced plans to build a 250 MW pumped-storage project in Hatta (United Arab Emirates). The hydropower project will be located in the mountains next to the Al Hattawi dam and will include solar power capacities to pump water from the existing lower reservoir to the upper reservoir that will be built. The project is expected to be completed by 2021, as part of the United Arab Emirates Vision 2021. Source: Enerdata

< style="color: #163449;">Vietnam scraps plans for its first nuclear-power plants

November 10, 2016. Vietnam’s government has decided to scrap its long-delayed plan to build the country’s first nuclear-power plants because other energy sources have become cheaper and demand for power has slackened due to slowing economic growth. The government will submit its proposal to cancel the project to the country’s lawmaking body, the National Assembly, which is expected to ratify it later this month. The National Assembly in 2009 ratified the plan to build two nuclear power plants with a combined capacity of 4,000 MW in the central province of Ninh Thuan. The government had chosen Russian nuclear-energy company Rosatom and Japan Atomic Power Co. to build the plants, and signed a deal to borrow $8 billion from Russia for building the first facility. Source: The Wall Street Journal

< style="color: #163449;">US biofuels credit prices whipsaw after surprise Trump victory

November 10, 2016. The niche market for paper credits to comply with the United States (US) biofuels program jerked lower in response to the surprise presidential victory of Republican Donald Trump, perceived to be favourable to oil companies. A Trump administration could signify change for the country's controversial Renewable Fuel Standard (RFS), the more than decade-old policy that's been a bedrock of two presidential administrations. Though he expressed support for ethanol along the campaign trail, the Republican is seen as being heavily in favour of fossil fuels and reduced regulation. Any impact from Trump's entrance into office would be deferred at least into 2018, as the current administration is due to release its final requirements for biofuels use next year before the end of the month. Source: Reuters

< style="color: #163449;">European renewable stocks fall on concern Trump will cut support

November 9, 2016. European renewable stocks fell sharply after Donald Trump won the United States (US) presidential election, hit by concerns that his plans to promote coal and other fossil fuels will come at the expense of renewable energy investment. Trump's campaign has promised to renegotiate the world's second biggest carbon-emitting country's role in a United Nations-led global agreement which many view as a lynchpin for government support for renewables investment. The US wind market -- the world's second-largest with 2015 installed capacity of 74,500 MW according the Global Wind Energy Council -- is a major market for European turbine manufacturers and European Union (EU) utilities seek expansion there as sources of funding back home dwindle. Source: Reuters

< style="color: #0069a6;">DATA INSIGHT

< style="color: #163449;">Delhi’s Power Sector Scenario and Emissions from its Power Sector

Fuel Type of Power Plants in Delhi	Sector	Installed Capacity (MW) As on 31.03.2015	Absolute Emissions (million tonnes of CO2) (2014-15)
Coal	Center	705.0	3.35
State	135.0	0.54
Gas	State	1,971.2	2.13
Pvt	94.8	0.00
Total	Delhi	2906.0	6.02

Share of Fuels in Installed Capacity of Generation within Delhi Trends in Emissions by Power Sector within Delhi Source: Central Electricity Authority Publisher: Baljit Kapoor Editorial adviser: Lydia Powell Editor: Akhilesh Sati Content development: Vinod Kumar Tomar    

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