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Global Warming, CDM and Coal Power Plants
Shankar Sharma, Power Policy Analyst
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lobal warming has been considered as the existential threat for the man kind. The global community has identified many responses to reduce the impact of global warming; effectively reducing the emissions from coal burning is a major step in this regard. Coal power plants, which are considered to be the major source of Green House Gases (GHG), are at the focus of such efforts. The Clean Development Mechanism (CDM), under the patronage of United Nations Framework Convention on Climate Change (UNFCCC), was adopted in 1992 by most countries as a major global response to reduce global warming.
CDM permits industrialized countries (Annex 1 countries under Kyoto Protocol) to earn emission credits through investment in sustainable development projects that reduce overall GHG emissions in developing countries. The CDM allows emission-reduction projects to earn certified emission reduction (CER) credits, each equivalent to one ton of CO2. These CERs can be sold to industrialized countries to meet a part of their emission reduction targets. This mechanism was designed to stimulate sustainable development and emission reductions, while giving industrialized countries some flexibility to meet their emission reduction limitation targets. Most of these reductions are through renewable energy, energy efficiency, and fuel switching (coal to non-coal options).
India is one of the leading countries, which has registered for a number of such CDM projects. Within the power sector four coal power plants in
Super critical coal power plants will only reduce the emissions marginally. Such coal power plants are expected to involve an increase in thermal efficiency from about 33 - 35% for sub-critical coal power plants to about 37-39%, and may corresponds to a reduction of about 4 to 5% in emissions only. But such super critical coal power plants will consume a lot of coal, and water; they lead to destruction of thick tropical forests below which are the coal reserve; and they pollute the air, land and fresh water sources. Hence while the GHG potential of such individual coal power plants will be marginally less as compared to sub-critical coal power plants, the overall increase in GHGs at the country level will be much higher because of the addition of large number of such power plants. This defeats the very purpose of UNFCCC and CDM.
As has been the past experience, the regulation of pollution control measures in India is far from satisfactory, and hence adding super critical coal power plants does not necessarily lead to overall reduction in GHGs and atmospheric pollution. Due to higher operational costs of pollution control measures many such coal power plants may not continue to take care in reducing the pollution. Whereas the provision of CDM benefits to additional coal power plants may encourage the proliferation of such coal power plants, the fact that the overall GHG potential will increase enormously must initiate a thorough review of the very idea of CDM as applied to coal power plants.
Most environmental groups have called for an end to crediting coal plants with fighting global warming. Many experts who are closely following the CDM process have estimated that allowing new coal power projects to measure their emissions levels against older sub-critical coal power generating technology allows the project developers to exaggerate their greenhouse gas savings by 25 to 50 percent above where they actually are. As has been noticed recently there is a spurt in such power projects coming up in India, probably with a view to garner financial support of CDM, which otherwise might have been found economically unviable. The enormity of the problem can be gauged by the coal rush witnessed in the country with the reported approval of more than 170 coal fired power plants last year alone; this means nearly one project approved each working day. It is not difficult to imagine the huge impact on our society of so many additional coal power plants.
It is a consolation to note that a CDM advisory panel that reviews the methodologies behind various offsetting schemes has recently recommended that the CDM benefits to coal power plant be suspended immediately. The Executive Board of the CDM is expected to take up that recommendation during a meeting shortly. "The (coal) projects perpetuate the burning of coal, the world's most carbon intensive fossil fuel,” CDM Watch says in a note commenting on the methodology panel's recommendation. "The financial support of coal projects fundamentally undermines the CDM's climate mitigation goals.”
In this context the very idea of providing financial support to coal power projects, even if they super critical power plants, appear preposterous. In Indian scenario, where the electrical power generating capacity has increased from about 1,000 MW in 1947 to about 170,000 MW in 2010, the gross inefficiency prevailing in generation, transmission, distribution and utilization of electricity is so huge that even the very idea of additional coal power projects seems sacrilegious. The social, environmental and economic impacts of coal power plants are so massive that a moratorium on additional coal power plants seems eminently advisable. The fact that the integrated energy policy has projected an increase in coal power capacity from about 80,000 MW in 2006 to about 400,000 MW by 2031-32 provides enough room for serious concerns, because most of the additional capacity projects are likely to be the candidates for CDM benefits.
In this regard a 3,960 MW Ultra Mega Power Project (UMPP) in coastal Andhra Pradesh, which was registered in the CDM system recently, is an example. Many such UMPPs are reported to be in pipeline and they all are likely to be applicants for CDM benefits. It is estimated by Sierra Club, Washington that this project when commissioned may cause over 12.3 million tons of excess carbon emissions to be emitted, and could result in an undeserved profit of about € 123 million based on current CER prices. Now if this much of CO2 emissions and CERs are multiplied by the number of UMPPs proposed, it means a lot of additional CO2 emission and a huge drain of CDM funds. At a time when green technologies are starving of essential funds, diverting huge sums of money for such coal projects which will only add to GHG emissions may be termed by many as criminal waste of scarce resources. Even if half of such funds were to be spent on energy efficiency improvement programmes in developing countries, it will mean a huge reduction in GHG emissions, and numerous benefits to those communities on a sustainable basis. It is very unfortunate that UNFCC has ignored this stark reality.
As opposed to such a practice where profiteering by few private corporate are seen as encouraged by CDM, adequate investment in various green technologies will result in massive benefits to the society in addition to drastically reducing the GHG emissions. Investing in improving operational efficiency in generation, transmission, distribution and utilization of electricity will give a lot more benefits without any of the attendant pollution related issues of additional coal power plants. Such efficiency improvement measures alone in
The recent interim report of the expert group on low carbon strategies under Planning Commission has estimated that the efficiency improvement measures in power sector alone can reduce GHG emission by 200 Million Tons of CO2 equivalent by 2020 in
India also has a huge potential in distributed renewable energy sources, which while reducing the GHG emissions to the minimum levels, will also address many problems of the grid based power network. Since the coal power plants have many hidden costs the true cost to the society of renewable energy sources will be much lower. Hence a coal power plant, even if it is a super critical coal power plant, must not be seen as a way of reducing the GHG emissions in
At a time when many CDM projects are coming under increased scrutiny because of their potential human rights abuses, it seems especially problematic to register coal based power projects in many states which have violently suppressed civil dissent. “CDM is supposed to promote sustainable development, and coal-based energy production is far from sustainable” say Alyssa Johl from the Center for International Environmental Law. “Coal-based power projects have serious negative impacts on the environment and human health that will impose real and significant long-term costs on governments and communities alike. Local communities have good reason to be concerned."
Another issue that needs to be addressed is that while the large number of additional coal power plants will go to add to the base generation capacity, the power deficit in almost all states is more during peak hours than on the annual basis. This situation of a large number of coal power plants coming up in a short span of 5-10 years is likely to lead to a stage soon when there will be excess base generation capacity with the result that the overall Plant Load Factor (PLF) will come down drastically at a huge cost to the society. Many of the coal power plants may turn out to be uneconomical and may have to be shut down.
Hence the CDM based funding to the developing countries such as India, Pakistan, Bangladesh, Indonesia etc. should be prioritized in power sector: firstly on efficiency improvements measures until the overall efficiency of the power sector in each country reaches the internationally acceptable levels; and then only on locally available renewable energy sources.
Concluded
Views are those of the author
Author can be contacted at [email protected]
NEWS BRIEF
NATIONAL
OIL & GAS
Upstream
ONGC sells Russian Sokol at higher premium
July 25, 2011. State-run explorer Oil and Natural Gas Corp (ONGC) sold a second cargo of Russian Sokol crude for late-September loading at a higher premium than the previous one as demand for distillate-rich grades rebounded. ONGC sold the 700,000-barrel cargo to Shell at a premium between $8.30 and $8.40 a barrel to Oman/Dubai quotes. The cargo will load on Sept. 27-30. ONGC sold an early September-loading cargo at the lowest premium in five months, at around $7.50 a barrel above Oman/Dubai quotes.
ONGC exploring fields for uranium mining in Tripura
July 24, 2011. The Oil and Natural Gas Corporation (ONGC) is all charged up to take up the new challenge of uranium mining in Tripura. ONGC said that a pilot project is being launched to explore fields for uranium mining in the riverbed of rivers Krishna and
RIL to shut KG-D6 MA oilfield for three weeks
July 23, 2011. Reliance Industries plans to shut down its production facility at the MA oilfield in the KG-D6 block for annual maintenance for about three weeks by the end of this month. The shutdown of its floating production, storage and offloading (FPSO) vessel at the field hurt production of about 17,000 barrels per day of oil and 8 million cubic metres a day of natural gas from July 31 to August 20. The shutdown would have a small impact on the company's earnings and analysts said this would not have a significant impact on market sentiment. Maintenance shutdowns are routinely undertaken in production facilities such as refineries and oil and gas fields.
ONGC's ` 24 bn
July 23, 2011. The state-owned Oil and Natural Gas Corp (ONGC) said it had intensified efforts to implement the ambitious ` 2,400 crore project to replace and revamp ageing installations in
Cairn
July 20, 2011. In first signs that Cairn India may do a somersault so that its parent Cairn Energy Plc can sell stake to Vedanta Resources, the company has gone silent on the government preconditions that it had so far been bitterly opposing. Cairn India, whose board had passed resolutions opposing change in contract to make the company liable for payment of royalty and cess on oil produced from its showpiece Rajasthan fields, does not mention a word in its annual report on the same being made a precondition by the government for approving Cairn-Vedanta deal. The company has so far maintained that Oil and Natural Gas Corp (ONGC) which got 30 per cent stake in the prolific Rajasthan oil fields for free, is contractually liable to pay royalty and cess on the entire production.
June refinery output rises 4.7 pc year on year: Government
July 25, 2011. Domestic refiners processed 4.7 percent more oil in June from a year ago, the seventh consecutive monthly rise. Domestic refiners processed 3.454 million barrels per day (bpd) of crude oil in June. Crude oil output rose 7.7 percent to about 773,500 bpd in June from a year ago, while gas output declined 11.7 percent to 3.97 billion cubic metres.
Indian refiners said to seek Saudi oil next month as
July 21, 2011. Indian refiners asked Saudi Arabian Oil Co. for at least one additional shipment in August as a payment dispute jeopardizes Iranian cargoes. Indian refiners have said global sanctions against
Transportation / Trade
GAIL may supply gas to Bandel Thermal Station
July 22, 2011. Bengal's power generation utility is in talks with GAIL for sourcing gas for its proposed peaking power station at Bandel Thermal Power Station. A peaking power station is run to meet demand during a surge and is generally kept idle when consumption is low. Generation from gas-based power units can be stepped up in a short time when demand rises and can also be reduced when it is not required.
Gazprom signs another Indian gas supply deal
July 20, 2011. Gazprom said it signed a memorandum to supply the Indian Oil Corporation Limited with 2.5 million tonnes of liquefied natural gas (LNG) a year for up to 25 years. This is the fourth gas deal Gazprom, the world's largest gas producer, has signed with Indian companies this year. Gazprom Marketing and Trading Singapore signed memorandums to supply LNG to GAIL, Gujarat State Petroleum Company (GSPC) and Petronet LNG Limited, which together could be worth more than $90 billion.
Policy / Performance
Govt approves BP's $7.2 bn deal to buy stakes in RIL's exploration blocks
July 23, 2011.
Iran halts oil supply, but
July 21, 2011. India has a back-up plan to cope with a halt to crude supplies from Iran, its oil minister said, as Tehran upped the ante in an oil payments row and Indian refiners rushed to secure alternative supplies, including from Saudi Arabia. Since December,
Diesel price hike in 2011 unlikely as polls, inflation loom
July 21, 2011. India is unlikely to risk raising, or even deregulating, diesel prices again this year, allowing demand to expand, as concerns over inflation and state elections eclipse the need to cut spending and keep pace with global oil prices.
Finance Ministry approves $7.2 bn RIL-BP deal
July 20, 2011. The Finance Ministry approved the $7.2 billion deal between Reliance Industries and
POWER
Generation
NTPC may start work in
July 26, 2011. State-run NTPC said it could start work at its proposed 1,320 MW thermal project in
Generation suspended at 1.5 GW Nathpa Jhakri power plant
July 25, 2011. The 1500-MW Nathpa Jhakri Hydel Power Project in
Increasing silt level forced the management to stop generation since last evening and all the six units have been stopped as silt level drastically went up to 22000 ppm. Kinnuar district received record 44 mm rainfall, heaviest in this monsoon season. Project based on the water discharge of mighty Satluj river was also in spate after opening of water gate at 1300 MW Karcham Wangto project was opened. Due to increase in water level, muck dumped on the bank of river by Karcham Wanto project suddenly took the silt level from permissible limit of 4000 ppm as water discharge has gone to 1600 cumcs against normal 500 cumcs. The project was also shut down for flushing out silt twice in this month while this is shut down third time forcing the load shedding in several beneficiary states, including Himachal. The project was generating over 36 million units of power per day and meeting the peak requirements of northern states of Punjab, Haryana,
Jaiprakash Associates bags orders worth ` 20.7 bn from
July 25, 2011. Jaiprakash Associates said it has bagged two contracts worth ` 2,079 crore from
Punj Lloyd bags ` 2.1 bn contract from NTPC in
July 21, 2011. Infrastructure major Punj Lloyd said it has won a ` 210 crore contract from NTPC for civil work of a thermal power project in Bongaigaon district of Assam. The project is scheduled for commissioning by 2014. The contract has the provision of free cement and structural steel for the project from NTPC which will insulate its price escalation and will ensure easy procurement of raw materials, thereby mitigating risk. With this contract, the order backlog for the Punj Lloyd group on a consolidated basis has gone up to ` 25,409 crore.
OHPC and NHPC jointly to launch 320 MW hydro power project
July 21, 2011. The power utility major Orissa Hydro Power Corporation Ltd signed a MoU with Orissa government and National Hydro Power Corporation Ltd to set up hydro-power plant of 320 MW jointly with an investment of about ` 2600 crore. The MoU signifies the formation of a Joint Venture Company (JVC) between Orissa Hydro Power Corporation Ltd. and NHPC Ltd. for implementation of Sindol-I (100 MW), Sindol-II(100 MW) and Sindol-III (120 MW) Hydro Electric Project in the first phase with annual energy generation capacity of 1090 million units [MU]. Orissa will get 12% free power from the generation of electricity from this project and 1% of the cost of power generated will be spent on peripheral development activities. OHPC has an nstalled hydro power capacity of 2062 MW.
DPSC-IPCL combine to invest ` 264.5 bn in power sector
July 20, 2011. DPSC Ltd, a power generation and distribution company along with IPCL, an unlisted Srei Group controlled venture-fund company, announced an investment of ` 26,450 crore in adding new power generation capacity over the next few years. DPSC, which came under IPCL fold after divestment by Andrew Yule in 2009-10, will add 450 MW of thermal power in its books at Raghunathpur in
Transmission / Distribution / Trade
Reliance Power, L&T, Adani Power, GMR Energy and 17 others bid for ` 10.2 bn Tamil Nadu-Karnataka power link
July 26, 2011. Twenty-two domestic and foreign companies have bid for setting up a ` 1,025-crore power transmission project connecting Tamil Nadu and Karnataka even as the central government tightened eligibility rules. While Reliance Power, L&T, Lanco Infratech, Sterlite Energy, Adani Power,GMR Energy and Torrent Power are among the Indian bidders, the foreign companies included
Electricity tariff hike looms as Discoms get ` 22 bn relief
July 23, 2011. An appellate tribunal has awarded ` 2,200-crore relief to two of Reliance Infrastructure's subsidiaries that distribute power in
Reliance Infrastructure to come under RTI Act
July 22, 2011. Energy consumers of Reliance Infrastructure can now obtain information about its services under RTI Act after the State Information Commission ruled that being a public utility service provider the suburban electricity supplier came under the transparency law.
Varun Energy signs agreement with Department of Atomic Energy to sell all heavy minerals concentrate
July 22, 2011. Varun Energy Corporation,a
R-Power set to get $625 mn loan from US Exim Bank
July 25, 2011. Reliance Power is likely to get a loan of $625 million (` 28 bn) from US Exim Bank to fund its upcoming 2,400-MW gas-based power project in Samalkot, Andhra Pradesh. This loan is a part of the $5-billion deal signed with Reliance Power for the purchase of US manufactured equipment for power projects. This loan is to be disbursed because last year Reliance Power placed a $750-million equipment contract with GE for the 2,400-MWSamalkot expansion.
Reliance Power has signed a $17-billion deal with the Chinese and the US Exim Bank to fund various power projects, where the equipments are sourced from
India currently ranks first among Asian nations in the US Exim Bank's authorizations and the bank has a total exposure of $5.6 billion in various infrastructure projects. This transaction will make
Soon half of
July 24, 2011. Power Minister Sushil Kumar Shinde has promised reform and an enabling policy environment that will ensure half of
The government has also awarded four ultra mega power projects to private players with an aggregate capacity of 16,000 megawatt worth some ` 64,000 crore ($14.2 billion). Twelve more were to be awarded soon. The minister admitted coal was a major problem and said he has already written to Prime Minister Manmohan Singh on that.
The minister said coal remained an important source of feedstock for electricity generating companies and that 65 percent of such energy was being produced by thermal power plants, despite some new gas finds. Yet, thrust was also being given to clean energy, he said, adding the hydropower segment was now accounting for nearly 22 percent of
Coal
July 24, 2011. Brushing off fears that commercial mining in coal sector may erode its monopoly and profitability, CIL said it is geared up to face the challenge and would welcome any such move to open up the sector for private investment.
The government is considering re-introduction of a bill to amend the existing Act governing coal mining for allowing private sector in the space and is likely to convene a meeting of a ministerial panel soon.
NPCIL tying up with state-run firms like ONGC, Indian Oil and NTPC for nuclear power
July 22, 2011. The Nuclear Power Corp of India Ltd (NPCIL) plans to tie up with state-run firms like ONGC, Indian Oil and NTPC to finance upcoming nuclear power projects. NPCIL had signed joint venture agreements with Indian Oil, National Thermal Power Corp (NTPC) and the National Aluminium Co (Nalco) for development of different projects in the country. Indian Oil has agreed to buy 26 percent equity stake for ` 900 crore in NPCIL's upcoming nuclear power plant at Rawatbhata, Rajasthan. NTPC has agreed to pick up 49 percent stakes in NPCIL's upcoming projects in Madhya Pradesh and Haryana. Oil and Natural Gas Corp (ONGC) has also shown interest in picking up minority stake in some projects. NPCIL is also working jointly with Nalco to develop a nuclear power plant in Orissa's Ganjam district. NPCIL targets to set up 14 nuclear reactors of 700 MW power production capacity each by 2020.
NALCO plans to bid for Bhedabahal mega power project
July 22, 2011. State-run integrated aluminium producer NALCO plans to bid for upcoming 4,000 MW ultra-mega power project in Bhedabahal in Orissa, for which requests have to be submitted by August 1. The company is also scouting for partners for jointly bidding for the Orissa UMPP and has held discussions with other PSUs like NMDC, Neyveli Lignite and BHEL. A decision on this regard can be taken at a later stage as the Navratna company is qualified for putting up its bid alone. The 4,000 MW Bhedabahal UMPP, which has got delayed by more than a year due to issues related to environmental clearances for its coal block, has been put on track recently by Power Finance Corporation (PFC) -- the nodal governmental agency for setting up UMPPs in the country.
Gokul Refoils gets govt nod to expand power plant
July 21, 2011. Edible oil maker Gokul Refoils & Solvent Limited (GRSL) received government approval for enhancing the capacity of its upcoming lignite based thermal power plant from 80 MW to 125 MW. The ` 670 crore, the lignite based thermal power project is a joint venture between the Gokul Group and state owned Gujarat Mineral Development Corporation (GMDC) in the equity ratio of 74:26. Slated to be set up at near at
CIL misses Q1 output target, says rains played spoilsport
July 20, 2011. State-run mining giant Coal
INTERNATIONAL
OIL & GAS
Upstream
BP chief ‘open’ to refining spinoff as earnings disappoint
July 26, 2011. BP Plc Chief Executive Officer Robert Dudley said “all options” are possible including a refining spinoff as
Water-oil mixture spills at BP Alaska facility
July 26, 2011. A spill of about 200 gallons of an oil-water mixture has prompted a temporary shutdown of an oil-separation facility at the BP-operated
Shale oil boom sends waste gas burn-off soaring
July 25, 2011. Flaring of natural gas from wells is on the upswing in
Exxon seeking shale acquisitions as
July 22, 2011. Exxon Mobil Corp., the largest
Exxon is assessing targets in more than a dozen gas-rich shale-rock formations worldwide. The company has spent almost $3 billion to amass shale leases in
Inpex to sell 30 pc stake in
July 22, 2011. Inpex Corp,
Cnooc agrees to buy Opti
July 20, 2011. Cnooc Ltd.,
Cnooc will pay $34 million in cash for the Canadian company’s shares, $1.18 billion for some notes and assume $825 million of debt. A shortage of cash to fund the extraction of heavy oil embedded in sand forced the Calgary-based producer to seek bankruptcy protection on July 13. China Petrochemical Corp. and Cnooc are among companies that have invested more than $200 billion in ventures in
Petrohawk investor sues, saying $12.1 bn BHP acquisition is too low
July 20, 2011. Petrohawk Energy Corp. was sued by a shareholder over claims its proposed $12.1 billion cash sale to BHP Billiton Ltd. undervalues the company. The deal creates a conflict of interest on the part of directors that “colors their ability to make an unbiased decision” regarding the fairness of the proposal.
BHP, based in
Anadarko-BP settlement deal not imminent
July 20, 2011. A settlement between BP Plc and Anadarko Petroleum concerning liability around last year's
Transportation / Trade
Oil at $120 becomes biggest energy bet as futures leave forecasters behind
July 26, 2011. The biggest bet in the oil market has become a 20 percent increase to $120 by the end of the year as global growth drives demand for raw materials. The number of contracts held by traders in options to buy West Texas Intermediate crude at $120 a barrel in December totalled 45,502 lots on the New York Mercantile Exchange as of July 21, 4,226 lots more than the next-highest wager, which is for $125. Open interest in the two contracts jumped 29 percent in the past four weeks.
Saudi to sell more crude after
July 26, 2011. Top exporter
Pennsylvania urged to regulate rural gas pipelines
July 25, 2011. The advisory commission on the Marcellus Shale natural gas boom urged
Iraq, Iran,
July 25, 2011. The oil ministers of
The project requires some $10 billion investment and will be constructed within three years. The pipeline length is more than 1,500 kilometers from Assalouyeh to
TAP,
July 25, 2011. The Trans Adriatic Pipeline and the government of
The TAP consortium and the Ministry of Economy, Trade and Energy of Albania (METE) agreed to cooperate on the development of South Eastern Europe (SEE) natural gas markets and the strengthening of security of supply and diversification of gas resources in the region. Under the terms of the MOUC, a joint working group will be established immediately to further evaluate areas of potential cooperation, ranging from the alignment of overall schedules and sharing of best practice, to facilitating the mutual understanding of each project's technical requirements.
China, Japan LNG imports hit record, may boost spot
July 21, 2011. Japan and
Imports by Japan rose 10.6 percent year-on-year in June, marking it a third consecutive month of increases as utilities stepped up imports to make up for the loss of nuclear reactors shut by the March earthquake and tsunami or kept offline due to safety concerns.
Russia Arctic route to rival
July 20, 2011.
Policy / Performance
Oil Search says PNG LNG making progress for 2014 start-up
July 26, 2011. Australia-listed oil and gas company Oil Search is making progress on its
U.S. delays final report on BP oil spill probe
July 23, 2011. A
The government's findings on the spill that killed 11 workers and ravaged the Gulf coast last summer has been widely anticipated by investors for clues on possible legal ramifications BP and its partners may face from the disaster.
Thai PTT group plans $100 bn investment over 10 yrs
July 20, 2011. Thailand's top energy firm, PTT Pcl, plans $100 billion in investment for its group over the next 10 years, by the end of which annual revenue is expected to have reached 6 trillion baht ($200 billion).
State-controlled PTT planned to import a total of 280,000 tonnes of liquefied natural gas (LNG) to ease a gas shortage resulting from an offshore pipe leak and producers in
Russia's biggest contingent liability: oil
July 20, 2011. With a sovereign debt of just 10 percent of GDP and half a trillion dollars in reserves, Russia has a balance sheet that the United States and Europe can only envy as they battle their debt crises. But a closer look at Finance Minister Alexei Kudrin's latest fiscal plans reveals two concerns: he is betting that oil prices will stay high for years; and even if he is right, the pace of budget consolidation will slow significantly. By his own reckoning, the books would only balance with oil at $125 per barrel next year, reflecting the impact on the public finances of the global slump that put an end to years of surpluses generated at much lower oil prices. Kudrin has only managed to keep the projected deficit below 3 percent of gross domestic product (GDP) over the three-year budget horizon by hiking his oil price forecast to the mid-$90s from the high $70s previously. Even then, the fiscal strategy abandons a previous goal of balancing the budget by 2015. After stripping out energy revenues -- which account for nearly half of the tax take -- the deficit will stay over 10 percent of GDP.
POWER
CLP agrees to pay $745 mn for 17 pc stake in nuclear power plant
July 26, 2011. CLP Holdings Ltd., Hong Kong’s biggest electricity producer, will pay 4.8 billion yuan ($745 million) for a 17 percent stake in a nuclear power plant in southern
CLP is increasing spending on nuclear power even after
China’s NDRC approves hydropower projects in Qinghai,
July 26, 2011.
UAE power generation may grow 40 pc
July 24, 2011. The UAE is expected to post a nearly 40 per cent growth in electricity generation by 2020 to match the growing demand in the country.
The country will account for 7.33 per cent of
Transmission / Distribution / Trade
RWE, Deutsche Bahn agree on 15 year supply deal for hydro electricity
July 25, 2011. RWE AG,
Anglo, Xstrata coal miners in S.Africa plan strike over pay
July 21, 2011. Anglo American Plc, Xstrata Plc and Exxaro Resources Ltd. expect workers at their coal mines in
Japanese scientists push for more radiation tests to assess seafood risks
July 26, 2011.
Sinohydro plans $2.7 bn IPO, china’s biggest in 11 months
July 26, 2011. Sinohydro Group Ltd.,
Turkey may end priority talks with
July 26, 2011. Turkey may end priority talks with
U.N. atomic watchdog head lauds
July 25, 2011. Cleanup work at
China’s
July 25, 2011. China’s southern
Japan complains to
July 22, 2011. Japan has filed a complaint with
Miner NWR agrees coking coal price drop for Q3
July 22, 2011. Coal miner New World Resources (NWR) said it agreed a 9 percent quarter-on-quarter drop in its average price of coking coal deliveries for the third quarter. The miner, which operates the largest Czech hard coal mines, said it was on track to meet its full-year production and sales targets. NWR has previously announced it expects to sell 10.3 million tonnes of coal, evenly split between coking and thermal coal.
China connects first fast nuclear reactor to electricity grid
July 21, 2011.
Japan won't rule out possibility radioactive
July 20, 2011. Japan’s government said it can’t rule out the possibility beef contaminated with radioactive material has been exported, as consumers and lawmakers accused authorities of negligence on food safety. The government imposed a ban on beef shipments from areas near the crippled
Renewable Energy / Climate Change Trends
National
Thermax Limited partners with Amonix Inc to offers concentrated photovoltaic systems for solar power generation
July 25, 2011. Thermax Limited and Amonix Inc. announced an agreement that will bring proven, concentrated photovoltaic (CPV) technology forclean power generation to
Amonix systems can be deployed quickly, at the rate of half a megawatt post-pedestal installation per day. They offer 31% module efficiency and 29% system efficiency, significantly higher than competing solar technologies such as crystalline silicon and thin film. Concentrated photovoltaic technology will pave the way to meet the goals of the Indian Government's Solar Mission that promotes sustainable growth while addressing
Suzlon to get $187 mn from sale of stake in Hansen Transmissions
July 25, 2011. Suzlon Energy Ltd.,
Maha will tap into solar energy to overcome power shortage
July 23, 2011. Reeling under a continued power deficit,
A feasibility survey of the three regions of Vidarbha, Khandesh and Marathwada has shown that unlike
Suzlon Energy plans to buy balance 4.8 pc shares in REpower Systems
July 22, 2011. Suzlon Energy plans to buyout the balance 4.8% shares in
NSL Group bags 400 MW wind project in
July 21, 2011. The NSL Group, a ` 3,500 crore diversified business conglomerate has acquired developmental rights to set-up a 400-MW wind power project in
Global
EU may promote solar power in Greek aid deal
July 26, 2011. European authorities may promote solar power in
Germany’s energy shift to cost 335 bn euros
July 26, 2011. The estimated cost to
China to double spending on ‘circular economy’
July 26, 2011. China will double spending to promote energy conservation, emission reduction and waste recycling to 2 billion yuan. The commission will use financial support and tax breaks to encourage investment in the so-called circular economy.
EPA says it won’t issue tighter ozone-emission rules by deadline
July 26, 2011. The U.S. Environmental Protection Agency said it will miss a July 29 deadline to issue tighter ozone standards as President Barack Obama’s administration reviews the regulation opposed by industries. The White House Office of Management and Budget is leading an interagency examination of the proposed rule, the EPA said. The EPA, which said it would meet the deadline it set with a federal court, didn’t say when the rules may be issued. The White House will work as “quickly as possible” to complete the review. The EPA’s proposed regulations for ground-level ozone, a main ingredient of smog, would tighten those issued under President George W. Bush in 2008. Critics such as Dow Chemical Co. (DOW), the largest
Solar-Powered iPad seen as MIT advances cells printed on paper
July 26, 2011. The next generation of solar cells may be printed on ordinary paper. Engineers at Massachusetts Institute of Technology have created ultra thin paper cells that gather enough juice to power an LCD clock and can be glued to a briefcase, stapled to a hat or folded into a pocket. The research is a first step toward a cheap and lightweight source of renewable energy that, within two years, may be used for everything from charging an iPad to warming up clothing, researchers said.
Toyota seeks
July 26, 2011. Toyota Motor Corp. sought a court order in the
Cellulosic ethanol industry struggles to take off
July 26, 2011. The great promise of a car fuel made from cheap, clean-burning prairie grass or wood chips -- and not from expensive corn that feeds the world -- is more mirage than reality. Despite years of research, testing and some hype, the next-generation ethanol industry is far from the commercial success envisioned by President George W. Bush in 2006, when he pledged so-called cellulosic biofuels would be "practical and competitive" by 2012.
DuPont buys solar tech company Innovalight
July 25, 2011. Chemical company DuPont said it bought solar technology start-up Innovalight Inc in a move to help double sales to the solar industry to $2 billion by 2014. Innovalight's silicon ink is used by solar cell makers to raise the efficiency of the semiconducting material and reduce the cost of solar power.
National grid to spend $5.9 bn into 2012 on wind farms, networks
July 25, 2011. National Grid Plc, operator of the
Solar specialists embrace tieups to resist squeeze out
July 25, 2011. Grappling with sliding prices and margins, solar specialists, or stand-alone makers of wafers and cells, risk being squeezed out of the market by their fully integrated Chinese rivals who are investing billions of dollars in technology. The new reality is forcing solar specialists, mostly Taiwanese, which have long had a simple business model that generated steady revenues and modest margins, to form partnerships and diversify at a faster pace to stay in the business.
Food prices to stay high amid underinvestment, climate change
July 25, 2011. Global food prices will remain high as underinvestment in agriculture over decades has left supplies unable to meet demand. Global food costs tracked by the United Nations increased in June for the 10th time in the past 12 months, staying near a record on higher rice, sugar and dairy prices, while meat reached an all-time high. Aid to agriculture dropped to 4.3 percent of total assistance in 2008 from 18 percent in 1979.
Canada to step up oil sands monitoring
July 22, 2011. Canada will boost monitoring of pollution from its oil sands projects, hoping to speed up
BP Solar to stop panel sales, focus on projects
July 22, 2011. BP Solar is closing its
New South Wales extends moratorium on fracking for coal-seam gas
July 21, 2011.
Mitsubishi Motors sees green vehicles profitable in 2 years
July 21, 2011. Mitsubishi Motors Corp's electric vehicles and other eco-friendly offerings are expected to start contributing to its earnings in two years. Mitsubishi Motors said the automaker expects to surpass the break-even level of 60,000 to 70,000 units sold annually by the fiscal year ending in March 2014.
Nissan leaf will help cook dinner during blackouts
July 21, 2011. Nissan Motor Co. and Mitsubishi Motors Corp. say their electric cars can be used for more than just going to the grocery store. Soon, the battery-powered vehicles may also help owners cook dinner during a blackout. Mitsubishi is working to increase the 100-watt discharge capacity of its i-MiEV electric car, which can already power small gadgets such as mobile phones with the use of an optional accessory, to 1,500 watts.
Ideal carbon capture solution years off
July 21, 2011. A dream climate change cure to turn planet-warming greenhouse gases into useful products from jet fuel to plastics will take years to develop from the lab and pilot projects. Pilot projects already use carbon dioxide (CO2) to feed plants, for example to boost tomatoes in glasshouses, while laboratories have tested the manufacture of concrete, plastics and oils, but costs are high and projects depend on concentrated streams of CO2.
Defying climate deal like appeasing Hitler:
July 21, 2011. World leaders who oppose a global agreement to tackle climate change are making a similar mistake to the one made by politicians who tried to appease Adolf Hitler before World War Two, a British government minister said.
Energy and Climate Change Minister Chris Huhne said governments must redouble efforts to find a successor to the United Nations Kyoto Protocol on emissions, although it was unlikely that a breakthrough would be made at a conference later this year in
Carmakers blitz
July 21, 2011. The
Solar earnings mirage bring muddy waters concerns to
July 21, 2011. Investors are starting to doubt profit estimates for
Nissan to make Leaf electric motor in
July 20, 2011. Nissan Motor Co Ltd will produce the electric motor for its all-electric Nissan Leaf car at its power train plant in
Dow Chemical, Mitsui in
July 20, 2011. Dow Chemical Co and Mitsui & Co Ltd have formed a joint venture to turn sugar cane into ethanol and plastic, an area widely considered the future of the chemical industry. The move directly challenges Braskem SA,
China may tighten approval of wind projects
July 20, 2011. China’s National Energy Administration may reinstate its control over onshore wind-power projects with less than 50,000 kilowatts of capacity. Currently, wind power farms of less than 50,000 kilowatts are approved by provincial governments and only larger facilities need approval from the central-government agency.
Energy Conversion to sell battery unit
July 20, 2011. Energy Conversion Devices Inc said it will sell its battery unit as part of a broad restructuring plan to focus on improving performance at its primary solar power business. Energy Conversion Devices' Ovonic Battery Co licenses its battery technologies for consumer, stationary and vehicle applications. The company's battery technologies include nickel-metal-hydride and lithium-ion.
Sino-Forest shares rise as speculators jump in
July 20, 2011. Shares of embattled Chinese forestry company Sino-Forest rose more than 20 percent, as speculative investors jumped back into the stock after a sell-off over the last few days. Shares of the Toronto-listed company have plunged more than 75 percent since the beginning of June, following accusations of fraud leveled by influential short-seller Carson Block and his firm Muddy Waters. But the stock won a short reprieve earlier this month when Boston-based institutional fund manager Wellington Management Co decided to raise its stake in the company. Sino-Forest has lost roughly C$3.5 billion in market capitalization, since the Muddy Waters report went public in early June. Sino-Forest has denied any wrongdoing and it has asked a team of independent directors to look into the charges leveled against the company.
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