Energy News Monitor | Volume XI; Issue 2

 

 

 

NEWS BRIEF

OIL & GAS

June 24, 2014. India's crude oil production dropped marginally in May as a fall in output at fields operated by Oil and Natural Gas Corp (ONGC) and Oil India Ltd (OIL) negated increased flows from private firms including Cairn India. Crude oil production was at 3.16 million tonnes in May compared with 3.17 million tonnes in the same period a year ago, according to data released by the Oil Ministry. ONGC reported a 1.3 per cent drop to 1.87 million tonnes as its fields in Gujarat produced less. OIL produced 5.2 per cent less at 284,143 tonnes, while output from fields operated by private firms rose 3.1 per cent to 1.005 million tonnes. Natural gas production dipped 2.2 per cent to 2.94 billion cubic meters (bcm) as private operators saw an almost 10 per cent drop in output. While ONGC's gas production was almost unchanged at 1.93 bcm, production from offshore fields of private firms such as Reliance Industries Ltd (RIL) dropped 9.8 per cent to 685.22 million cubic meters. India's April-May oil production at 6.26 million tonnes was almost unchanged from the previous year. Gas output in the period dropped 5 per cent to 5.94 bcm. (economictimes.indiatimes.com)

June 22, 2014. Global independent consultant Gaffney, Cline & Associates (GCA) is likely to be appointed to verify ONGC's claims that gas from its Krishna Godavari fields may have flowed out of the neighbouring KG-D6 wells of Reliance Industries Ltd (RIL). RIL and Oil and Natural Gas Corp (ONGC) have shortlisted DeGolyer and MacNaughton (D&M) and GCA to decide if four wells drilled on the boundary of the KG-D6 block were drawing gas from the neighbouring discoveries of the state-owned firm. GCA is a worldwide petroleum consultancy with over 50 years of experience in providing independent technical, commercial and strategic solutions in areas such as exploration studies and assessment of reserves and resources. ONGC had moved the Delhi High Court alleging that RIL may have drawn natural gas worth thousands of crores of rupees from its fields adjacent to the RIL's KG-D6 block in the Krishna Godavari basin. The legal case will continue with ONGC seeking court-monitored assessment by the independent expert on whether its gas fields extend into RIL's KG-D6 block. ONGC believes its Godavari Block (known as G-4) and New Exploration Licensing Policy (NELP-1) discovery block KG-DWN-98/2 are contiguous to RIL-operated NELP-1 Block KG-DWN-98/3 (KG-D6). It believes the KT-1/D-1 gas find in block KG-DWN-98/2 and G-4 Pliocene gas find in Godavari Block extend outside the block boundaries into KG-D6. (economictimes.indiatimes.com)

June 19, 2014. Cairn India Ltd has said it will invest $200 million over the next three years in developing natural gas finds in the largely oil-bearing Rajasthan block. The $200 million investment during FY2015-17 will be towards developing existing Raageshwari Deep Gas field and associated field facilities and pipeline, Cairn said in its 2013-14 annual report. Cairn which in January 2004 began the Rajasthan success story with discovery of Mangala field - the largest onshore oil find in India in the last two decades, has till date made 31 discoveries in the Barmer basin block. In March last year, it started gas production from the block, with a cumulative sale of 2.7 billion standard cubic feet in 2013-14 fiscal. It however estimates a higher gas potential in the block and is building facilities that can handle up to 100 million standard cubic feet per day (mmscfd) of output. (economictimes.indiatimes.com)

June 19, 2014. Oil India Ltd (OIL) signed an agreement with Russia's Gazprom for joint pursuit of exploration opportunities across the globe. Through the memorandum of understanding (MoU), OIL and Gazprom plan to jointly participate in upstream oil and gas exploration and production opportunities in different parts of the world as well as collaborate on LNG. (timesofindia.indiatimes.com)

June 20, 2014. HPCL-Mittal Energy Ltd (HMEL), a joint venture of steel tycoon L N Mittal and Hindustan Petroleum, shut a small unit at its Bhatinda refinery after a minor fire. No one was injured in the fire that was brought under control, HMEL said. The fire was reported at one of the pipelines from the vacuum gas oil (VGO) unit, which removes sulphur from crude oil. The VGO unit had to be shut down because of the fire but the rest of the 9 million tonnes a year refinery is operating normally. (economictimes.indiatimes.com)

June 20, 2014. India spent the past five years cutting its Iranian oil imports to comply with international sanctions. Now, Asia’s second-largest energy user needs the curbs to ease as fighting threatens its supply from Iraq. Tougher U.S. sanctions on Iran meant India was obliged to halve purchases from the Persian Gulf nation since 2009. Indian refiners, which get 85 percent of their crude from overseas, say they expect the restrictions to soften. Benchmark crude prices are trading at a nine-month high as Islamic militants battle government forces in Iraq, which is now India’s second-biggest oil supplier. That’s boosting costs for importers and taking a toll on India’s currency. Iran was the second-biggest supplier to India until three years ago, when it was displaced by Iraq. India cut purchases from Iran to 11 million metric tons in the year ended March 31, compared with a peak of 21.8 million tons in 2008-09, according to data from the oil ministry. The nation’s refiners bought about 25 million tons from Iraq. (www.bloomberg.com)

June 24, 2014. Keen on replicating the diesel de-regulation model, the Oil Ministry is mulling a staggered monthly price hike for both LPG and kerosene. The government is looking to up LPG prices by ` 5 per month per cylinder and kerosene by ` 1 per litre per month. A ` 1 per litre hike in kerosene will cut under-recoveries by ` 850 crore per annum. However Kirit Parikh, former Advisor, Energy, Planning Commission, was of the opinion that the proposed hike on LPG is much less than what is required. The news comes after Petroleum Minister Dharmendra Pradhan had said that the price of domestic LPG cylinders will not be increased and the number of subsidised refills given to consumers would continue. (economictimes.indiatimes.com)

June 24, 2014. A decision on increase in natural gas prices is expected in the next few days even as meetings between oil minister Dharmendra Pradhan, finance minister Arun Jaitley and top officials in the Prime Minister's Office (PMO) continued. Pradhan and Jaitely had met Modi to explore ways to revise gas prices to incentivise output without stoking inflation and increasing the subsidy burden on power and fertiliser sectors. The new government is looking at tweaking the United Progressive Alliance-government approved price formula --- known as the Rangarajan formula--- that recommended raising prices to $8.4 a unit from the existing $4.2. The new price based on the formula could not be implemented by the previous government because of the electoral code of conduct. The oil ministry has informed the PMO about the need to take a decision well before July 1 in view of arbitration proceedings initiated by Reliance Industries Ltd (RIL) against the central government over what the company says is the state's failure to abide by the terms of the Production Sharing Contract (PSC) which provides for marked based pricing, the oil ministry said. (economictimes.indiatimes.com)

June 20, 2014. India's annual energy import bill could jump to $230 billion by FY'23 from the current $120 billion but could get reduced significantly by switching from oil to natural gas and improving conservation, says a Goldman Sachs report. According to the global financial services major, the country's annual energy imports in the next decade could go up to $230 billion from $120 billion currently, driven by economic growth, greater industrialisation and urbanisation. India is facing energy challenges as the country doesn't produce enough to meet its needs. In FY14, India's net energy imports were at 6.3 percent of GDP. (zeenews.india.com)

June 20, 2014. The government has asked energy companies to prepare contingency plans for oil imports as the crisis in Iraq has put a cloud on India's second-biggest source of crude oil, while rising prices threaten to raise subsidies, stoke inflation and upset India's fiscal calculations. Oil supply has not been disrupted and the country has adequate stocks, but officials and industry executives are worried as Brent crude oil, the most widely used international benchmark, has soared to a nine-month high of nearly $115 per barrel, government and industry officials said. The government wants to make sure that there is no disruption in oil supply, which can severely unsettle economic activity. It is also concerned about the rising oil prices. Brent crude soared to a nine-month high of nearly $115 per barrel. Oil minister Dharmendra Pradhan held a series of meetings with senior bureaucrats and top executives of Indian Oil Corp (IOC) officials on back-up plans for oil imports as Iraq, world's second-largest oil exporter after Saudi Arabia, asked US for airstrikes to fight insurgents, the oil ministry said. IOC said the company has prepared its back-up plan but does not expect the effects of crisis in Iraq to spill over to India. Indian refiners will be hit only if the disruptions in Iraq continue for a longer time and the insurgents move toward southern part of that country that accounts for almost 70% of crude production. (economictimes.indiatimes.com)

June 20, 2014. Oil companies aren't currently considering petrol or diesel price hikes as they don't see the flare up in Iraq violence to hit India's crude imports, Petroleum Minister Dharmendra Pradhan said. The price India's crude-oil basket has risen $5 a barrel to $112 in the past few days. International prices have risen on fears that the Islamic militants who have taken control over tracts of northern Iraq could disrupt supplies from the Middle Eastern nation. Pradhan said the government has asked oil marketing companies to prepare contingency plans. He said crude supply from Iraq hasn't stopped and state-run oil marketing companies have already lifted 45% of the annual contracted quantity from that country. (economictimes.indiatimes.com)

June 20, 2014. Centre may tweak Rangarajan formula or allow higher prices for 2013-14 excess output. The government is keeping all options open on the contentious issue of natural gas prices, ranging from tweaking the Rangarajan formula, that will double rates to about $8.4 per unit, changing the international benchmarks used to calculate the price and setting up a new panel to make recommendations. Another possibility is to allow higher prices only on output that is in excess of what was produced in 2013-14; or to allow higher gas prices only for production from fields discovered under the New Exploration Licensing Policy. These include fields in the Reliance Industries-operated KG-D6 block, but will exclude many fields of ONGC. The government may exclude LNG prices in Japan and include Russia in the formula used to calculate natural gas prices in India. While many options are being considered for the pricing formula, the ministry is of the view that gas should be priced on the basis of the net calorific value, which is the actual heat recovered after combustion, not the gross calorific value which is about 10% higher. The international benchmarks are usually based on the gross value, but pricing in India has been traditionally on the basis of net value. The Rangarajan formula is silent on this aspect, leading to differences between producers of natural gas and the ministry. (economictimes.indiatimes.com)

June 20, 2014. ONGC Videsh Ltd (OVL), the overseas arm of Oil and Natural Gas Corp (ONGC), has inked an agreement with Turkish petroleum firm TPAO for jointly bidding for oil assets in other countries. OVL and Turkish Petroleum Corp (TPAO) signed the memorandum of understanding (MoU) on the sidelines of World Petroleum Congress in at Moscow, the company said. (economictimes.indiatimes.com)

June 19, 2014. Admitting a public interest litigation (PIL) alleging charging of unauthorised deposits from consumers with domestic PNG connection, the Gujarat High Court (HC) issued notices to Adani Gas Ltd and Petroleum and Natural Gas Regulatory Board. A two-judge bench, comprising Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala, issued a notice and posted further hearing on July 3. The High Court acted on the PIL filed by three city-based social activists Dhanesh Desai, Sanjay Raval and Bharat Shah who alleged Adani Gas Ltd has been charging an additional amount of ` 500 as "security deposit" from its customers. (economictimes.indiatimes.com)

June 19, 2014. Reliance Industries Ltd (RIL) hopes to be among the world's top 50 companies as it implements game-changing projects with an investment of ` 1,80,000 crore in the next three years to make it a major player in telecom and retail in addition to its traditional business of oil exploration and refining & petrochemicals, chairman Mukesh Ambani said. RIL reported net debt in 2013-14 after staying debtfree at a net level for two years. In 2014-15 and 2015-16, the conglomerate will focus on executing plans to bring on-stream projects in petrochemicals, refining, retail and Reliance Jio. Ambani said that the petrochemicals business would benefit from the highest allocation of capital among its three energy businesses. In its refining and marketing business, RIL said that despite a volatile and challenging environment, it reported record earnings due to high capacity utilisation, focus on operations excellence, sourcing of cheaper crude oil, efficient placement of products, optimisation of shipping and distribution costs and ensuring safe and reliable operations at the refinery. RIL was gradually reducing imports from the Middle East and increasing purchases from Africa and Latin America where prices have fallen due to lower demand from the US. The company is now in the process of setting up the largest coke gasification project in the world at Jamnagar to convert low-value petroleum coke from the refinery to useable, high-value fuel. The Jamnagar expansion may, at its peak, employ 100,000 people at for the expansion project, making it one of the world's largest construction sites. On the issue of gas from KG-D6 fields, Ambani said that RIL, along with partners BP and NIKO, had initiated arbitration process seeking implementation of the "Domestic Natural Gas Pricing Guideline 2014" and has another ongoing arbitration with the government on the issue of disallowance of cost recovery. Ambani also briefly referred to the controversy surrounding the oil and gas exploration business. (economictimes.indiatimes.com)

June 18, 2014. Oil minister Dharmendra Pradhan said the government would overhaul policies for the oil industry to make them "predictable, transparent and fair" to investors, even as BP plc chief Bob Dudley flagged the frustration among foreign investors by describing his company's experience in India as "disappointing". The oil ministry proposes to replace the present exploration block auction method, called NELP, with a uniform licensing policy to facilitate production of all forms of hydrocarbons — from oil to shale gas — under a single policy regime. The next round of auctions will be done with all statutory clearances with a view of de-risking exploration activities to some extent, the statement quoted Pradhan as saying. Dudley said delay in gas price reforms would put the survival of India's offshore oil industry at risk. BP and its partners — RIL and Canada's Niko — issued an arbitration notice days before the UPA-II government's tenure came to an end seeking announcement of the higher gas prices finalized in January. BP had invested over $7 billion in 2011 to buy 30% stake in Reliance's blocks, including the KG-D6 block off the Andhra coast that has been at the centre of political controversy and a tug-of-war with the government due to a sharp fall in production. (economictimes.indiatimes.com)

June 18, 2014. Facing criticism from certain political quarters over natural gas price hike, Reliance Industries Ltd (RIL) Chairman Mukesh Ambani expressed confidence the company will win public trust as it believes in creating wealth and livelihood for millions in a transparent manner. AAP leaders, including its national convener Arvind Kejriwal, alleged that the proposed gas price hike would lead to further inflation and only benefit RIL. In February this year, the party went to the extent of going to the courts against the petroleum ministry, two former oil ministers -- Murli Deora and M Veerappa Moily -- and RIL over the previous government's plan to almost double natural gas prices. RIL had said at that time the allegations were baseless and devoid of any merit. (www.financialexpress.com)

POWER

June 21, 2014. The first unit of the 1980 MW Talwandi Sabo Power Ltd (TSPL) became operational, adding 660MW to the national grid that might help fulfill the anticipated demand of 10,000 MW per day during June and July. Earlier, the first unit of the 700 MW super-critical (2x700 MW) Rajpura thermal power plant was made operational on a trial basis. Besides, the third power project, GVK's Goindwal plant, will become operational shortly as the coal supply issue has been resolved. The TSPL will provide cheapest power to the state for years to come. This largest and green power plant in the state has added more than 12 million units of power itself. (timesofindia.indiatimes.com)

June 18, 2014. Prime Minister Narendra Modi's unveiling of 600 MW Kholongchu Hydropower Project in Bhutan has raised concerns in Assam as there is fear that the state might face the downstream impact of the project. Modi during his first international visit after he assumed the office last month has announced the partnership between the Indian and Bhutanese PSUs for the hydel power project in Trashiyangtse in Eastern Bhutan. Regional political party, Asom Gana Parishad (AGP) has stated BJP has gone back on its promise of not allowing mega dams in Northeast India. Students' body, All Assam Students Union (Aasu) has sought white paper on the project. Aasu stated it has to raise the demand for a white Paper on the hydel project in Himalayan kingdom as tremendous devastation was caused by its Kurichu Hydel Project in 2004 and 2007 in five districts including Baksa, Nalbari, Barpeta, Kokrajhar and Bongaigaon. The student body added government must clarify if any study done was conducted on the cumulative downstream impacts of the project on Assam areas. Student body, Asom Jatiyatabadi Yuba-Chatra Parishad (AJYCP) said that there must be a moratorium on all the upcoming power projects in the neighbouring country, till the downstream impact study is done. (economictimes.indiatimes.com)

June 24, 2014. Coal supplies to thermal power plants are dwindling, resulting in reduced electricity generation at a large number of units. The country's largest utility National Thermal Power Corporation Limited has been forced to shut some of its units to cope with the situation as have some of the other power producers. The situation has been steadily deteriorating as partly reflected in data released by the Central Electricity Authority. (economictimes.indiatimes.com)

June 24, 2014. The power sector faces annual losses of $27 billion by 2017 unless sweeping reforms are taken to tackle inefficient subsidies, theft and political meddling in utility companies, the World Bank said. New Prime Minister Narendra Modi has pledged to bring electricity to the 300 million Indians who still lack power and improve the reliability of supplies, one of the biggest complaints of companies doing business in the country. Blackouts this summer have underlined the scale of that task, with large parts of north India suffering from severe power cuts after a rise in temperatures triggered a jump in demand that suppliers and an antiquated transmission system failed to meet. Launching its report into the sector, the World Bank said that despite the gains made in the past decade, when 280 million Indians gained access to electricity, India would struggle to make further progress unless it gave its utilities the freedom to improve their performance. (economictimes.indiatimes.com)

June 23, 2014. Central transmission utility Power Grid Corporation approved investments of ` 5,500 crore for upgrading networks in about 4 years. Board of Directors of the Company approved strengthening the transmission corridor for independent power producers in Chhattisgarh at an estimated cost of ` 5,151.37 crore, Power Grid Corporation informed the stock exchanges. The commissioning schedule of the transmission project is 45 months from the date of investment approval. The board also approved investment for upgradation of the transmission system associated with Lara thermal power project of NTPC at an estimated cost of ` 400.47 crore, with commissioning schedule of 34 months from the date of investment approval. (economictimes.indiatimes.com)

June 23, 2014. Restoration work on three more 220kV lines has been completed after these were damaged in the May 30 storm that crippled the power supply system in the national capital. The three lines -- Mandola-Gopalpur, Bawana-Rohini, Bamnauli-Pappan Kalan -- have been fully restored, Delhi government said. The repair work on almost all damaged transmission lines was over. Thus, the 220kV line for Maharani Bagh-Ghazipur will be restored by June 24 while the Maharani Bagh to Trauma Centre line will be restored by June 30, as per schedule. The Dadri-Loni-Harsh Vihar Line (being executed by NTPC through PGCIL) will be restored by July 7. (economictimes.indiatimes.com)

June 20, 2014. Piyush Goyal, minister for coal, power and renewable energy, has assured power producers on regular fuel supply and directed Coal India to provide a minimum of 60 per cent of fuel supply to all power generation companies. In a meeting with members of the Association of Power Producers, the minister also said he would request the environment ministry to allow additional mining of coal. Goyal also shot down a proposal to split Coal India into different companies. The previous UPA government had indicated that Coal India could be split to improve coal output and end its monopoly. Goyal refused to discuss the issue of new gas pricing regime in detail because the matter was sub-judice. Power project developers have been complaining that natural gas fired power projects would become unviable and power prices would shoot up if gas price is doubled to $8.4 per mmbtu. He also made it clear that the government does not plan to change its policy on Ultra Mega Power Projects (UMPPs) despite some power producers deciding to stay away from the bidding process for such projects. Power producers such as Adani Power, Tata Power, Jindal Steel & Power, JSW Energy, Sterlite, CLP and GMR Energy decided to withdraw from the race for building two UMPPs with capacity of 4,000 MW each, opposing the existing bidding terms. The minister also said an inter-ministerial group would be formed to sort out the issues of coal and power sector. He would meet financial institutions to look into financing related bottlenecks faced by the power sector. (economictimes.indiatimes.com)

June 18, 2014. Modernising transmission and distribution infrastructure will help in overcoming the electricity crisis, Power Minister Piyush Goyal said. Goyal, who met Rajasthan Chief Minister Vasundhara Raje, applauded the state's efforts in the generation of power through renewable energy sources. The meeting (with Raje) reinforced my belief that power crisis can be solved to a large extent by modernising T&D (transmission and distribution) infrastructure, he said. The minister has set transmission and distribution as his focus areas and is working to bring states on board for reforms. As much as 30% of the power generated in India is lost during transmission and distribution. Goyal met Vasundhara Raje and Rajasthan Energy Minister Gajendra Singh Khimsar on "ensuring 24x7 power supply" in the state. (www.business-standard.com)

June 24, 2014. In a stern message to Coal India the government has asked the world's largest coal company to improve efficiency to avoid restructuring. The Power and Coal Minister Piyush Goyal has asked the state-run company to improve the quality of its coal by December 31, 2014. The Minister has also said that the coal major should pull up its socks and perform in order to avoid restructuring. The Coal Ministry had earlier planned to restructure Coal India to improve its operational efficiency. Coal India which accounts for over 80% of the domestic coal production, missed its output target of 482 million tonnes in 2013-14 and produced only 462 million tonnes of coal. The company's 7 subsidiaries include Eastern Coalfields Ltd (ECL), Bharat Coking Coal Ltd (BCCL), Central Coalfields Ltd (CCL) and South Eastern Coalfields Ltd (SECL). (www.business-standard.com)

June 24, 2014. A Coal Ministry panel has recommended that eight regionally explored mines in states like Jharkhand, West Bengal and Odisha could be considered for allocation to power producers. The suggestion comes at a time when power plants across the country are facing acute fuel shortages. The coal blocks includes Pokharia Paharpur mine and Gosai -Pahari-Siulibani mines in Jharkhand), Kuraloi (A) North mine and Saradhpur (N) Sector-1 mines in Odisha, and Kapsdanga- Bharkata block in West Bengal. (economictimes.indiatimes.com)

June 24, 2014. Prime Minister Narendra Modi’s National Democratic Alliance (NDA) government is likely to spell out a plan to supply electricity through separate feeders for agricultural and rural household consumption in the Union budget it will unveil in July, aimed at eventually providing round-the-clock power.

The plan, based on the Jyotigram Yojana in Modi’s home state of Gujarat, may be made applicable across states to ensure around eight hours of quality power to agricultural consumers and 24-hour electricity to households. The initiative, billed as “Power to all 24x7”, also envisages complete metering and strengthening of the electricity distribution system. (www.livemint.com)

June 22, 2014. As domestic coking coal's crunch may lead to annual imports of 180 million tonnes (MT) by 2033, acquisition of assets abroad becomes "imperative" for public and private steel companies, a report by the Steel Ministry has said. In case of coking coal, import dependence will rise significantly despite the best results from the domestic industry as its capacity to supply coking coal is not likely to increase beyond 20-25 MT, the report said. (economictimes.indiatimes.com)

June 20, 2014. India is expanding a covert uranium enrichment plant that could potentially support the development of thermonuclear weapons, a defence research group said. The revelation highlights a lack of nuclear safeguards on India under new Prime Minister Narendra Modi, while sanctions-bound Iran faces minute scrutiny in talks with world powers over its own nuclear programme. New units at the Indian Rare Metals Plant would boost India's ability to produce weapons-grade uranium to twice the amount needed for its planned nuclear-powered submarine fleet, IHS Jane's said. The facility, located near Mysore in southern India, could be operational by mid-2015, the research group said. Unlike Iran, India is not a signatory to the nuclear Non-Proliferation Treaty. New Delhi tested its first nuclear weapon in 1974, provoking international sanctions that barred it from importing nuclear technology and materials. (in.reuters.com)

June 20, 2014. Power Minister Piyush Goyal discussed a plethora of issues, ranging from generating issues, fuel supply problems to ease of doing business. We take a look at five prominent steps that the power ministry hopes to take in order to solve the sector's problems: 1) Additional mining of coal: As an interim measure, the government is looking at mining additional coal to solve the supply problems of the power sector. 2) Enhance Coal-linkages: The government will focus on enhancing coal-linkages across the country. The government will release additional capacity to transport more coal to far off stations. On an experimental basis, the sae would be followed at the unloading station for government generating stations and PSUs to see that the process works well, Goyal said. 3) Augmenting supply of Coal India: The government will also look to enhance the supply of CIL in order to provide more linkages and expand the power generation in the country. 4) Reduce E-auctions of coal: The government wants to trim e-auction of coal to up power companies' supply. 5) Resolving conflicts between power producers and bankers: The Power Minister will meet principal bankers to discuss a possible way forward to resolve the conflicts between the power sector borrowers, both state and public and the banking sector. (economictimes.indiatimes.com)

June 18, 2014. Subsidized power for domestic consumers using up to 400 units may become a reality in the months ahead. Following a meeting with lieutenant governor Najeeb Jung, the power department of the Delhi government is preparing a proposal to make allocations for power subsidy in the 2014-15 budget. The quantum of the subsidy will be decided either by the Centre when the budget is presented in Parliament or whenever the new government takes charge in Delhi. Ever since power had been privatized in Delhi in 2002, people consuming up to a certain number of units were getting subsidy till March 31, 2014. The AAP government had enhanced the subsidy given by the Sheila Dikshit but the relief was available till the end of the 2013-14 financial year. All subsidies stopped from April 1 leading to inflated bills. The rising power cuts in peak summer have added to the public anger and now a provision in the budget for a subsidy is seen as an attempt to bring some relief. Politically, it is bound to benefit BJP in Delhi. (economictimes.indiatimes.com)

June 18, 2014. Madhya Pradesh (MP) chief minister Shivraj Singh Chouhan has urged power, coal and renewable energy minister Piyush Goyal to help expedite a ` 5,000-crore hydropower project in the state that has been in the works since the early 1990s, becoming the second high-profile leader to seek an intervention for the project after Congress general secretary Digvijaya Singh. The 400 MW project on the river Narmada, is located about 100 kilometres from Indore and could reduce the peak-power shortage in the state by over 25%. (economictimes.indiatimes.com)

June 18, 2014. The Karnataka government is mulling legal action against the Lanco Infratech-owned Udupi Power Corporation if it does not resume power generation at its 1,200 MW thermal plant in coastal Karnataka. The private developer has stopped generation since June 14 citing lack of money to buy coal. Its two 600 MW units are fired on Indonesian coal, and they generate 25-26 million units a day at 85% plant load factor. (economictimes.indiatimes.com)

OIL & GAS

June 24, 2014. Fifteen years after Wesley Clark led NATO’s bombing campaign against Serbia, the retired U.S. general is back in the Balkans -- looking for oil. Clark, who was also a presidential candidate in 2004, is a director of two Canadian explorers working in Albania, Bankers Petroleum Ltd. and Petromanas Energy Inc. They’re using modern drilling techniques to revive production in one of Europe’s poorest countries, where oil was first produced in the 1920s. Oil exploration is part of Albania’s strategy to repair the damage of four decades of economic isolation under the communist regime of Enver Hoxha, who built more than 700,000 concrete military bunkers before he died in 1985. Albania’s economy, where per capita income remains the lowest in Europe after Bosnia, Ukraine and Moldova, has almost doubled in size in the last decade, according to the World Bank. (www.bloomberg.com)

June 24, 2014. Independent oil and gas (O&G) explorer Tullow Oil said its partner in northern Kenya, Africa Oil, had found oil and gas at the Ngamia-2 well. The London-listed explorer has a 50 percent operated interest in Blocks 10BB and 13T in northern Kenya. Flow rates at the Agete-1 well were also tested at 500 barrels of oil per day, the company announced. In total, the partners are currently drilling in five locations in Kenya and Ethiopia. (www.rigzone.com)

June 23, 2014. U.S. oil firm ExxonMobil is in talks with Turkish Petroleum Corporation over a venture to explore for shale gas in the country's southeast and northwest regions. Exxon held talks with TPAO in 2012 to over a partnership in shale, but the negotiations were inconclusive.

ExxonMobil was interested in onshore opportunities in the southeast and Thrace, in northwestern Turkey. Turkey wants to reduce its annual energy bill of around $60 billion and is developing domestic resources including nuclear, coal, solar and wind energy. With domestic gas consumption rising, and its location well-placed to supply international markets, major exploitable reserves could be a game changer for Turkey's economy and highly lucrative for whoever finds them. Investors from the United States, Europe and Canada are also interested in Turkey's shale gas and oil. (www.rigzone.com)

June 23, 2014. Abu Dhabi's Mubadala Petroleum said it made a new gas discovery with significant commercial potential in Malaysia, its fourth discovery within its operating block. Mubadala Petroleum, a unit of Abu Dhabi's investment fund Mubadala said it found substantial gas in the Pegaga well in its operating block SK320. The four gas discoveries are in close proximity, including the original M-5 well success, Mubadala said. (www.rigzone.com)

June 23, 2014. Spain's Repsol reported that it has made two new hydrocarbon discoveries in the Karabashsky 1 and 2 blocks in western Siberia, Russia. Repsol said that the finds could add 240 million barrels of oil equivalent to the company's reserves tally – which, according to Russia's Ministry of Natural Resources and Environment, would means they amount to largest discovery in Russia for two years. (www.rigzone.com)

June 19, 2014. Exxon Mobil Corp. and BP Plc began removing employees from Iraq, OPEC’s second-largest oil producer, after Islamist militants seized cities north of Baghdad and attempted to capture a refinery. Exxon evacuated some workers from the West Qurna oil field. BP Plc removed non-essential workers, Chief Executive Officer Bob Dudley said. Malaysia’s Petroliam Nasional Bhd. moved 28 of its 166 Iraq employees to Dubai, the company said. Royal Dutch Shell Plc isn’t evacuating staff yet and is ready to do so, Andy Brown, head of Shell Upstream International, said. (www.bloomberg.com)

June 19, 2014. UK-based oil & gas exploration company Circle Oil has discovered gas at its SAH-W1 well in the Sebou permit, onshore Morocco. Spud on 19 May 2014, the well has been drilled to a total depth of 1,263m and found gas at three levels within the target areas. (drillingandproduction.energy-business-review.com)

June 18, 2014. Norway's Statoil said it has made a high-impact gas discovery in Block 2 offshore Tanzania, boosting discovered gas volumes by 2-3 trillion cubic feet (Tcf). That brings the total discovered gas volumes in Block 2 to about 20 Tcf, the company said.

Statoil operates the licence on Block 2 on behalf of Tanzania Petroleum Development Corporation and has a 65 percent stake, with ExxonMobil and Production Tanzania Limited holding the remaining 35 percent. (www.rigzone.com)

June 24, 2014. China may be bolstering its emergency crude reserves as refiners in the world’s second-largest oil consumer expanded commercial stockpiles to a record high in May. China’s commercial oil stockpiles can be channeled for strategic use, according to industry consultants including ICIS-C1 Energy in Shanghai and FGE in Singapore. Refiners accelerated crude imports in April and May as the nation sought to increase its energy security with prices at a “fairly” high level, ICIS-C1 analyst said. China, which trails only the U.S. in consumption, is also maximizing its gasoline production amid rising domestic demand and improved refining margins, ICIS-C1 analyst said. (www.bloomberg.com)

June 23, 2014. Russian oil refinery runs in May rose by 6.1 percent month on month or 329,911 barrels per day (bpd) following seasonal maintenance, data from the energy ministry showed. Refineries processed 5.76 million barrels of crude oil per day in May versus 5.43 million in April.

Rosneft's Novokuibyshevsk and Ryazan refineries increased oil processing by 126.4 percent and 48.4 percent, respectively, in May after major planned seasonal maintenance. Two other Rosneft refineries - Kuibyshev and Achinsk - started thorough repair work on crude distillation units in May, reducing their capacity by 79.7 percent and 67.8 percent, respectively. (www.downstreamtoday.com)

June 20, 2014. The three-year rally in liquefied natural gas (LNG) is cooling as Asia-Pacific supplies jump and demand slows from Japanese utilities preparing to restart nuclear reactors. LNG shipped to northeast Asia next winter may be sold at the lowest price since 2012 for that time of year, when demand typically peaks, according to a survey of traders and analysts. Exxon Mobil Corp. and BG Group Plc are bringing new supplies to Asia this year before at least four projects start in 2015, including the first U.S. exports. (www.bloomberg.com)

June 19, 2014. Nigeria's state oil company says India has overtaken the United States (US) as the biggest importer of Nigerian crude. The US has drastically reduced imports to 250,000 barrels a day. India is importing one-third of Nigeria's daily output of 2.5 million barrels, followed closely by China and Malaysia. The US boom in domestic shale oil production is behind the shift. (economictimes.indiatimes.com)

June 18, 2014. Ukraine seeking closer ties to the European Union (EU) means natural gas flows from Russia to the 28-nation bloc are unlikely to be disrupted, according to Maplecroft Ltd. and Energy Aspects Ltd. UkrTransGas is shipping full volumes from Russia to Europe, the Ukrainian pipeline operator said, the day after its own supply was cut by Russia amid a two-month long pricing dispute. All imports needed to meet domestic needs can be replaced with gas from Europe for now, NAK Naftogaz Ukrainy’s Chief Executive Officer Andriy Kobolyev said. (www.bloomberg.com)

June 18, 2014. Iraq’s Kurdish region may be able to gain more autonomy and increase crude exports after taking control of territory around the nation’s fourth-largest oil field, analysts from Saxo Bank A/S and JBC Energy GmbH said. Kurdish troops are protecting the Kirkuk oil field and surrounding areas after an offensive by Islamist insurgents prompted Iraqi central-government forces to flee. The Kurdistan Regional Government (KRG) is “willing to help” Iraq export crude from Kirkuk, Taha Zanghana. (www.bloomberg.com)

June 20, 2014. The Ministry of Oil & Gas of the Republic of Kazakhstan has given green light to UK-based Tethys Petroleum’s proposal to extend the Kyzyloi gas production contract for 15 more years until June 2029. The move follows the recent approval of the contract by Kazakh State Reserves Committee. The company is currently producing natural gas from the Kyzyloi sandstone covering around 70,918 acres of area. The extended contract will give the company more time to produce gas from the area. According to Tethys, the Kyzyloi area, with rich oil and gas fields, is developing rapidly and still has potential for exploration and discovered deposits. (drillingandproduction.energy-business-review.com)

June 20, 2014. The U.S. shale boom, which has sent the nation’s output to a 28-year high, is curbing the impact of the Iraq crisis on the oil market, said Nansen Saleri, former head of reservoir management at Saudi Arabian Oil Co. Prices would have climbed more this month if techniques such as hydraulic fracturing and horizontal drilling hadn’t bolstered U.S. crude output, said Saleri, who is now chief executive officer of Houston-based consultant Quantum Reservoir Impact. West Texas Intermediate (WTI) oil, the U.S. benchmark, has climbed $5 to $10 on supply anxiety, he said. (www.bloomberg.com)

June 20, 2014. In September 2007, almost a year after New Zealand–born billionaire Richard Chandler founded investment firm Orient Global in Singapore, he made a rare appearance at a forum on social responsibility. Abandoning his penchant for privacy, Chandler outlined the link between giving and investing. Chandler is betting on gas and oil in far-flung locales from Papua New Guinea to Kenya and Ethiopia, banking on demand from Asia’s growing middle class.

The firm invested in InterOil Corp, which has offices in Singapore and Port Moresby, Papua New Guinea. InterOil Corp controls 35.5 percent of the exploration license that contains Papua New Guinea’s Elk and Antelope fields -- the island nation’s biggest undeveloped gas plays, according to InterOil Corp. (www.bloomberg.com)

June 19, 2014. Japan Oil, Gas and Metals National Corp (JOGMEC) could accelerate its investment in oil and gas resources in the long term, as it looks to ensure stable commodity supplies for the world's No.3 economy. President Hirobumi Kawano said that JOGMEC would in particular focus on boosting its investment in liquefied natural gas assets, with Japanese appetite for the fuel rocketing following the shutdown of all the country's nuclear reactors in the wake of the Fukushima crisis. Japanese government had previously set a goal to boost the country's self-sufficiency ratio of oil and gas to 40 percent by 2030 from around 20 percent although the target is currently under the review. (www.downstreamtoday.com)

June 19, 2014. Prime Minister (PM) Erna Solberg pledged to protect Norway’s oil industry from political interference as the central bank warned it may cut interest rates to save western Europe’s biggest crude producer as investments slump. A survey showed oil companies plan to cut investments by as much as 21 percent in 2015 from a record this year, as high exploration and development costs, as well as political interference, make projects less profitable. Solberg’s government is hoping that Johan Sverdrup, the biggest discovery off Norway in at least 30 years, will help revive production. The development of the field, which may produce 650,000 barrels a day at its peak and cost more than 100 billion kroner ($16.6 billion) to start, became uncertain after the opposition and government allies tried to force more climate-friendly modes of crude extraction for surrounding facilities.

Solberg this month struck a compromise with the opposition that would allow for so-called electrification of three North Sea oil fields by 2022 while avoiding a delay to Sverdrup. Norway gets more than 20 percent of its economic output from oil and gas. The country has seen crude production fall about 50 percent since the last decade as North Sea deposits dwindle. (www.bloomberg.com)

June 18, 2014. The global economy faces a new threat from an old enemy: oil. A spike in the price of crude foreshadowed economic slumps in each of the last four decades and economists are worrying anew after Brent touched its highest price in nine months above $113 a barrel amid fresh violence in Iraq, OPEC’s second biggest producer. Brent started the year about $6 cheaper. The rule of thumb favored by many economists is that every $10 increase in the price of a barrel of oil ends up cutting global growth by about 0.2 percentage point. That’s not an inconsequential amount for an already lackluster expansion. The World Bank cut its outlook for 2014 global growth to 2.8 percent. Net energy importers such as China and Japan would suffer the most from any jump, though exporters in the Middle East would benefit to mitigate growth concerns. There are some reasons for comfort: The Iraq crisis may dissipate and the Organization of Petroleum Exporting Countries isn’t signaling concern over production capabilities elsewhere. The world is also more energy efficient than it once was, and the U.S. has larger domestic supplies. (www.bloomberg.com)

POWER

June 23, 2014. The Industrial and Commercial Bank of China agreed to finance the construction of two new nuclear reactors at the 1,400-MW Cernadova power plant in Romania. Romania said that the bank agreed to fund the third and fourth reactors, as well as other investment projects already in advance negotiations. The bank is considering opening a subsidiary in Romania. (www.pennenergy.com)

June 23, 2014. South Africa’s FirstRand said its investment banking unit will finance as much as $120 million of Ghana’s $820 million Kpone power plant as lenders seek to benefit from African infrastructure projects. Rand Merchant Bank is also the lead arranger for about $400 million of commercial bank funding for the project, Michael Larbie, head of FirstRand in Nigeria, said. (www.iol.co.za)

June 23, 2014. A consortium including ACWA Power and Taekwang Power has signed a joint agreement to develop the first phase of a coal fired power project in Vietnam. The development, dubbed Nam Dinh1 independent power project (IPP), is situated in the Hai Hau district of Nam Dinh province in Vietnam. Nam Dinh1is a greenfield IPP that will be developed on a build, own, transfer (BOT) basis with over $2 bn of investment. The 1,200 MW plant will be equipped with new applications of clean technologies to generate power with coal that will be supplied by the government owned coal mine firm, Vinacomin. (fossilfuel.energy-business-review.com)

June 23, 2014. Iran and Russia have agreed to finalize a deal for the construction of two nuclear power plants in the southern Iranian port city of Bushehr. The agreement is part of a 1992 deal between the two countries on further nuclear cooperation. Under the accord, the new plants, each with the capacity to produce at least 1,000 MW of electricity, will be built next to Iran's southern Bushehr nuclear power plant. The deal also includes the construction of two desalination units. (news.xinhuanet.com)

June 23, 2014. Competitive Power Ventures (CPV) proceeding with plans to build a 725 MW natural gas-fired plant in Maryland on a partly contracted merchant basis, it said. The plant was selected by the Maryland Public Service Commission in 2012 to sign 20-year supply contracts with state utilities to support its construction. CPV asked the US Federal Energy Regulatory Commission to approve the acquisitions of 75% of the project by two Japanese companies. CPV said Toyota Tsusho Power would acquire 25% and Marubeni would acquire 50%. (www.platts.com)

June 23, 2014. French power equipment maker Alstom has approved $17 billion offer made by General Electric (GE) to acquire its global power business after deliberating on two more such proposals made by Siemens and Mitsubishi. Alstom received an update to the offer from GE to acquire the power and grid businesses of Alstom. It also received a revised proposal from Siemens and Mitsubishi Heavy Industries. Alstom received a binding offer from GE to acquire its energy activities. The proposed price is a fixed one representing an equity value of euro 12.35 billion or USD 17 billion. (economictimes.indiatimes.com)

June 22, 2014. Shares in Omani power firms Al Suwadi Power Co and Al Batinah Power Co will begin trading after their initial public offerings (IPOs) were both multiple-times oversubscribed by investors. The two electricity-generating companies - which had been owned by a consortium of international and local investors - each offered a 35 percent stake to the public in offerings worth a combined OR62.7 million ($162.9 million). (www.arabianbusiness.com)

June 20, 2014. Delmarva Power is planning reconstruct a transmission line between Red Lion and Milford, Delaware, US. As per the plans, the 50-year-old, 230,000 volt transmission line will be reconstructed on 58 miles of the current right-of-way between Delmarva's Red Lion, Cedar Creek, and Milford substations. The first phase of the project, which will re-connect Red Lion and Cedar Creek, is due to start in June 2015 with planned completion in December 2016. Phase two, which will connect Cedar Creek to Milford, is anticipated to start in June 2016 with planned completion in December 2017. (utilitiesnetwork.energy-business-review.com)

June 19, 2014. The Qatar General Electricity & Water Corporation, Kahramaa, has awarded a contract, worth about €80mn, to Prysmian for power transmission system expansion projects. Under the deal, Prysmian will provide engineering, procurement, construction, installation and commissioning services for extra high voltage underground cable systems for a total of 173km of 220 kV cable and related network components. (utilitiesnetwork.energy-business-review.com)

June 23, 2014. Iran plans to launch 14 new power plants by the end of the current Iranian calendar year (March 20, 2015). The Iran Power Development Company (IPDC) said that once the power plants come on stream, some 2,156 MW will be added to the country's total power generation capacity. (en.trend.az)

June 19, 2014. China is moving quickly to become the first country to operate the world’s most powerful atomic reactor even as France’s nuclear regulator says communication and cooperation on safety measures with its Chinese counterparts are lacking. In the coastal city of Taishan, 100 miles from the financial hub of Hong Kong, Chinese builders are entering the final construction stages for two state-of-the-art European Pressurized Reactors. Each will produce about twice as much electricity as the average reactor worldwide. (www.bloomberg.com)

June 18, 2014. A proposed French energy law seeks to “find a balance” between the needs of the world’s biggest atomic generator and the country’s ambition to cut nuclear dependence. While the legislation unveiled reiterates President Francois Hollande’s goal of shrinking the share of electricity the country gets from atomic power to 50 percent in 2025 from three-quarters now, it leaves it up to Electricite de France SA (EDF) to work out how to achieve it. The company won’t be compelled to shut reactors, although total capacity will be capped at the current level, according to an outline of the law released. (www.bloomberg.com)

June 24, 2014. India is about to launch the largest bidding of solar power projects worth 1,500 MW under its flagship Jawaharlal Nehru National Solar Mission (JNNSM). In what the government officials claim is the first success story of converging the three energy ministries vis-a-vis coal, power and renewable energy, solar power would be bundled with conventional power at such a huge scale in one go. The bidding, which is a part of second batch of the phase 2 of JNNSM, aims to achieve a capacity addition of 10,000 MW by 2017. The government tendered 750 MW of solar power projects in January this year as part of this phase. While the current solar power capacity of the country is 2,600 MW, government hopes to cross 20,000 MW by 2022.The solar power produced in this phase would be bundled with the existing unallocated quota of conventional power. The pooled power would be sold at an average rate to the distribution companies, who shy away from procuring solar power citing it to be costly. The bundling of power and its sale would be handled by NVVN (NTPC Vidyut Vyapar Nigam), the power trading arm of power generation giant National Thermal Power Corporation Limited (NTPC). NVVN said that the average cost of bundled power would be around ` 4-4.5 per unit. (economictimes.indiatimes.com)

June 24, 2014. The 'rent-a-roof' model for solar power generation which has been adopted by the city of Gandhinagar in Gujarat can for now only be replicated in government buildings in the national capital, Delhi government has said. According to environment department officials, as most private buildings in the city are not properly aligned, unlike in Gandhinagar, which is a planned city with buildings of similar height and size, 'the rent-a-roof' model can only be implemented in government buildings, offices and hospitals. Delhi government officials recently visited Gujarat to study the electricity generation system there. (economictimes.indiatimes.com)

June 24, 2014. Together with the UK government, the West Bengal department of power and Kolkata Municipal Corporation are working on developing a grid-connected rooftop solar system. Over the next few months, we will be working with the West Bengal government and supporting Ashden India Renewable Energy Collective to help develop an affordable rooftop solar scheme through which Kolkatans will be able to reduce their power bills and greenhouse gas emission of the city, Scott Furssedonn-Wood, British Deputy High Commissioner to Eastern India said. Under this initiative, there will be a major emphasis on capacity building programmes for key stakeholders to implement such schemes in the state, he said. (economictimes.indiatimes.com)

June 24, 2014. After a stint in automobile sector, Pune-based Kinetic Group is now testing the waters in various fields. This time it is solar power sector. The company has formed a joint venture with Belgium’s Ikaros Solar Group which is operational in photovoltaic market and Pune-based power electronics company Intelux India. The new JV will be known as Ikaros Kinetic Solar. The company has targeted power generation of 100 MW in the next  five years and revenues of  ` 600 crore. The JV will provide customised solutions cater to low capacity solar PV installations of 20KWp to 1 MW focusing residential and commercial roof top installations used by various entities. (www.business-standard.com)

June 24, 2014. Solar modules manufacturer Vikram Solar said it has entered into an agreement with Dubai-based Unidaan to supply solar products and services in the Middle East and North African region. Unidaan and Vikram Solar will work hand-in-hand to further foster development of EPC (engineering, procurement and construction) and solar business in these regions. Vikram Solar has an installed production capacity of 150 MW, and the facilities are located in the Special Economic Zone of Falta in West Bengal. (economictimes.indiatimes.com)

June 23, 2014. The Power Ministry wants a review of a proposal to impose anti-dumping duty on imports of solar gear because the country does not have sufficient capacity to make equipment to harness the sun's energy. Last month, the Commerce Ministry recommended levying anti-dumping duty on solar cells from the US, Malaysia, China and Chinese Taipei. A final view on slapping the levy to discourage imports is to be taken by the Finance Ministry. (www.business-standard.com)

June 22, 2014. Solar power producer CaptureSolar Energy (CSEL) has raised $125 million from the Cyprus-based photovoltaic solar solutions provider Concept Solutions & Innovation to set up a plant in Pune. The Pune-based company expects the solar park to be operational and ready to supply electricity by next March. (www.business-standard.com)

June 22, 2014. The Odisha government will set up a one-megawatt solar power plant near Chhatrapur, the district headquarters town of Ganjam. The plant will come up around 5.5 acres of land with an investment of ` 13-crore. The plant is part of the Asian Development Bank (ADB) funded ` 1,000-crore plan to build 'disaster resilient power strengthening system' in the cyclone-prone towns of Berhampur, Chhatrapur and Gopapur in Ganjam district on an experimental basis. (www.business-standard.com)

June 20, 2014. If anti-dumping duty was imposed by the Indian government it would definitely delay proposed solar projects, though not derail them, Schneider Electric India said. The Union Commerce ministry had favoured imposition of anti-dumping duty on solar cells to boost domestic manufacturing. Currently, the solar project cost had came to ` 6.5-7.5 crore per megawatt narrowing the gap with fossil fuel based power. Solar projects of 750 MW offered under the phase II batch I of national solar mission bidding were already awaiting clarity on the policy. (economictimes.indiatimes.com)

June 20, 2014. After the success of the Bus Rapid Transit System (BRTS), the Gujarat government will soon introduce a public transport system where the vehicles would run on electricity. This initiative is part of a larger plan to promote the use of clean energy in public transport, which Prime Minister Narendra Modi has also emphasised. The Gujarat Power Corporation Ltd (GPCL) has developed the pilot project to run electric buses between the twin cities of Gandhinagar and Ahmedabad. This project includes purchase of 15-40 seater buses and setting up of solar-power based electric charging stations at regular distances on the 35-km long stretch between the two cities. (www.business-standard.com)

June 20, 2014. Asian Development Bank (ADB) has made its largest ever equity investment in the sector by pumping ` 310 crore ($50 million) in Welspun Renewables Energy Ltd (WREL). This investment amount translates into ADB holding a stake of 13.3 per cent in WREL, the 100 per cent subsidiary of Welspun Energy, said the FIPB (Foreign Investment Promotion Board) document approving the proposed foreign investment in the company. (economictimes.indiatimes.com)

June 20, 2014. The city-based Renewable Energy College has bagged the contract for imparting the technical know-how for setting up a 50-MW floating solar power plant for NHPC in Kerala. This will be the world's first large floating solar power plant. A system of generating electricity from floating panels has been developed by the College sometime last year. With large water bodies available in eastern and south-eastern parts of the country in states like West Bengal, Assam, Orissa, Andhra Pradesh and South India, the technology leads to considerable savings on land prices and brings down power generation expenses, reducing the gap between thermal and solar power. It is also expected to offer greater generation yield, compared to similar panels installed on land. The first of its kind in India, the project is under execution at a lake in the outskirts of the city. The project, estimated to cost ` 35 lakh, has been fully funded by the ministry of new and renewable energy and is expected to generate around 12 kilo watt of power to begin with by October 2014. (economictimes.indiatimes.com)

June 19, 2014. The Kerala government has planned to set up a study and research centre to have scientific knowledge on climate change, minister for environment and forest Thiruvanchoor Radhakrishnan said. The centre would be the first step of the government to know more about climate change and its impact on environment for taking up action plan to meet challenges, Radhakrishnan said. (timesofindia.indiatimes.com)

June 19, 2014. Car market leader Maruti Suzuki India (MSI) has commissioned a solar power plant at its Manesar facility to harness renewable energy source in line with its policy of adopting Eco-friendly technologies. The 1 MW solar power plant has been set up at an investment of ` 10.3 crore and was commissioned, the company said. (www.business-standard.com)

June 18, 2014. Making the stand of the NDA Government clear on climate change, Environment Minister Prakash Javadekar said India is committed to reduce carbon emission but it may increase in the process of development and poverty eradication. Underlining that the problem of global warming was created by the developing nations, Javadekar said that India has “a right to grow” and “unless we tackle poverty, we cannot really address the climate change.” His statement may raise a few eyebrows as developed nations want India and China to cut down their carbon emissions. Several nations, civil society groups and climate experts are meeting in September in New York to discuss measures needed to deal with the climate change issue. He also announced an ambitious programme to combat the challenge of land desertification and make the country “land degradation neutral” by 2030. The Environment Ministry along with the Ministry of Agriculture, Ministry of Rural Development, Ministry of Water Resources and other Ministries will chart out a detailed programme to combat the challenge of desertification with the participation of people. (www.newindianexpress.com)

June 18, 2014. NTPC's solar power project in Madhya Pradesh (MP), the biggest in the country using domestically manufactured modules, has been commissioned. The 50 MW plant in Rajgarh, which was set up by Tata Power Solar for NTPC, will be used to supply electricity to about 90,000 households a year. The Rajgarh plant is the largest Indian solar project to use domestically manufactured solar modules. (economictimes.indiatimes.com)

June 24, 2014. The U.K. Green Investment Bank (GIB) plans to raise 1 billion pounds ($1.7 billion) with a fund to finance offshore wind projects as the technology takes off in Britain. Utilities need help to refinance current farms so they can start new developments, the bank said. The lender will tap infrastructure investors and pension funds. Britain has 3.6 GW of offshore wind, more than the rest of the world combined, and is building 1.4 GW. The government says capacity may grow to 10 GW by 2020. It’s pushing the technology to reduce carbon emissions while avoiding onshore farms and solar parks that some local residents oppose. GIB seeks to invest 700 million to 800 million pounds more this fiscal year. (www.bloomberg.com)

June 24, 2014. SunPower Corp., the second-largest U.S. solar manufacturer, is offering energy-storage systems to California homeowners that will power houses at night with electricity generated from sunlight during the day. The company is testing systems that combine rooftop solar panels with battery storage in new homes built by KB Home, San Jose, California-based SunPower said. (www.bloomberg.com)

June 23, 2014. France announced a package of tax breaks and low-cost loans to improve insulation in buildings and boost investment in renewable energy, which is supposed to provide 40 percent of the country's electricity by 2030. The state will provide financial help for citizens and firms, and back local authority projects with 5 billion euros of credit, Energy and Environment Minister Segolene Royal and Finance Minister Michel Sapin said. Renewable energy currently accounts for 14 percent of France's electricity. (in.reuters.com)

June 20, 2014. The European Union’s attempt to cap greenhouse-gas emissions over the next 16 years is threatened again as rising pollution from the bloc’s biggest economies shows even developed nations want to burn cheap coal. Germany, Europe’s largest economy, boosted consumption of the fuel by 13 percent in the past four years, while use in Britain, No. 3 in the region economically, rose 22 percent, statistics from oil company BP Plc show. While Germany pledged to cut heat-trapping gases 55 percent by 2030 from 1990 levels, it’s managed 25 percent so far and is moving in the wrong direction, according to the European Environment Agency. (www.bloomberg.com)

June 19, 2014. Germany, the world’s biggest solar market by total capacity, is set to install the fewest panels since 2008 after subsidies fell faster than prices. Germany added 818 MW of panels in the first five months of the year, a 45 percent drop from a year earlier, the BSW-Solar lobby said. If additions don’t gather pace, Germany will miss its target of 2.5 GW to 3.5 GW. BSW-Solar said a government plan to tax self-consumption of solar power will accelerate the decline. (www.bloomberg.com)

June 19, 2014. China, the world’s biggest wind market, set prices of as much as 0.85 yuan (14 cents) a kilowatt-hour for power from non-auction offshore wind farms that start before 2017 to promote the industry’s development. The power price for inter-tidal wind farms is 0.75 yuan a kilowatt-hour, the National Development and Reform Commission said. The nation will study price policies for projects that will be operational in and after 2017. Non-auction projects are those that don’t form part of government bid rounds calling for capacity. China has about 400 MW of installed offshore wind capacity. The government had announced a target of 5 GW of installed capacity by 2015. (www.bloomberg.com)

June 18, 2014. The European Union (EU) needs an ambitious emissions-reduction goal, targets for energy-efficiency and renewables as well as tools to foster investment under its planned 2030 policies, an advisory panel to 14 ministers said. EU leaders need to agree on the framework for the next decade by October, sticking to the deadline agreed, the panel said. (www.bloomberg.com)

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