Energy News Monitor | Volume XI; Issue 35

[Crude Oil: The Problem of Plenty]

                             “This raises some interesting questions. What led to the problem of too much oil when all along we were anticipating a problem of too little oil? Was it the creation of an industry that thrived on making predictions of the world running out of oil? Was technology developed in response to these ‘end of the world’ predictions? Or is it the new Malthusian error?…”

Energy News

[GOOD]

The reduction of T&D losses would release millions of units of electricity into the grid!                                   

                                                                                                [BAD]

The new agreement over the Nuclear Liability Bill adds to its lack of clarity!  

[UGLY]

The expensive badge of Global leader in tackling climate change will allow rich countries to free ride on the backs of the poor in India!

NEWS BRIEF

[NATIONAL: OIL & GAS]

February 8, 2015. Cairn India may spend ` 13,000 crore in developing an oil and gas block in Krishna-Godavari Basin over a period of time even as it geared up to undertake drilling of 64 exploratory and appraisal wells in that block. The oil and gas major has sought permission to prepare Terms of Reference for undertaking drilling of the wells in the block- KG-OSN-2009/3 in the Bay of Bengal, according to minutes of meeting of Expert Appraisal Committee under the Ministry of Environment and Forests. Cairn India had said it declared force majeure of two of its oil and gas blocks including KG-OSN-2009/3 due to the objections raised by the Ministry of Defence for taking up exploratory works. However, the company, last year, got necessary clearance from the ministries concerned. (economictimes.indiatimes.com)

February 4, 2015. The Directorate General of Hydrocarbons (DGH) has suggested a fresh approach, based on an open mind and technical merit or overall perspective of cases, for dealing with disputes with explorers to minimize incidence of arbitration cases against the government. A strategy paper prepared by the caretaker of the country's hydrocarbons treasure suggests that the "over-cautious approach" in evaluating disputes and an overarching focus on protecting government's share rather than technical merit has resulted in a rash of arbitration cases against the government.

The principle objective behind the PSC (production sharing contract) regime is to speed up discovery of petroleum resources and exploit them for the benefit of people in accordance with the best global petroleum industry practices, the paper explains. The ministry has been ensnared in a rash of arbitrations, most notably the ones initiated by Reliance Industries, BP and BG as well as Cairn. The high-profile cases involving MNCs and claims running into several billions of dollars remain a bump in the government's efforts to improve the investment climate in exploration. Several of these arbitrations, numbering over 35, have been festering for years. The government has taken several policy steps to attract investors by making it easier for companies to do business and wants to ensure these and future efforts are not wasted by unnecessary legal disputes in future. The approach by DGH does not indicate any dilution in government's rights or revenue. Analysing the key areas of disputes, the paper suggests a more professional approach with emphasis on preventing differences from blowing up into a full-fledged legal bout. DGH suggests a layered mechanism of resolving differences with explorers, with clear-cut role, powers as well as discretion allowed to DGH or ministry officials. (timesofindia.indiatimes.com)

February 10, 2015. Indian diesel cargoes are being shipped to Australia in a rare move as rising competition from new Middle East refineries has made it more difficult to land the fuel in India's core traditional markets in Europe and Africa. Diesel is typically shipped to Australia from North Asia or Singapore as freight rates for the India-Australia route can cost as much as 50 percent more, traders and shipbrokers said. Yet several vessels have been chartered on the higher-priced route since late last year, the traders and brokers said.

Chevron, for instance, has been moving 1-2 cargoes a month to Australia from private Indian refiner Reliance Industries' facility at Jamnagar port on the west coast of India, traders said. As refining capacity expands in the Middle East, India and China, imports of oil products such as diesel and gasoline into Australia have become more attractive. Australia imports about 770,000 to 875,000 tonnes of diesel a month, with the volume set to rise from mid-2015 when BP halts operations at its 102,000 barrels-per-day Bulwer Island refinery in Brisbane, Queensland. Oil giant Saudi Aramco, which has been a major term buyer of diesel from Reliance in India, reduced its import requirements for this year, one trader said. This could also be placing pressure on Reliance to explore new markets to sell excess cargoes in Australia. (in.reuters.com)

February 5, 2015. Oil trading house Gunvor has bought a diesel cargo from Mangalore Refinery and Petrochemicals Ltd (MRPL) in a rare move, traders said. The Swiss-based company bought 65,000 tonnes of 500 ppm sulphur gasoil for March 1 to 3 loading from MRPL at a premium of $1.10 to $1.15 a barrel to Middle East quotes, traders said. While Gunvor has bought naphtha cargoes from MRPL, it has rarely bought gasoil from the Indian refiner. Gunvor normally buys gasoil from Russia and ships it to countries in Asia such as Vietnam, traders said. It is unclear where Gunvor was planning to ship the Indian gasoil cargo. (www.thehindubusinessline.com)

February 5, 2015. India's biggest gas importer Petronet LNG is one of the companies shortlisted to build a liquefied natural gas (LNG) terminal in neighbouring Bangladesh, the company said. The company selected will be responsible for sourcing of gas, building and operating of the terminal, which will have a capacity of 2.5 to 5 million tonnes per annum. (in.reuters.com)

February 10, 2015. Rajasthan government has withdrawn the subsidy of ` 25 on domestic cylinders which was extended by former Congress government, inviting a sharp reaction from the opposition party. The central subsidy will continue. The additional subsidy of ` 25 was announced by Ashok Gehlot led former Congress government in June 2011. With the government's decision, the subsidised domestic cylinder will now cost ` 420 instead of the earlier ` 395. (economictimes.indiatimes.com)

February 10, 2015. Rajnish Prakash, Chairman and Chief Executive of Heavy Water Board, a unit of Department of Atomic Energy said that heavy water is likely to be used in oil exploration studies in India shortly. Heavy water is a form of water with a unique atomic structure and properties coveted for the production of nuclear power.

He said that some oil exploring companies, especially having contract with the Oil and Natural Gas Corporation (ONGC), have approached the Board in this connection. He said that heavy water is used in West Asian (Gulf) countries in oil exploration studies as it helped in making accurate analysis. In India, it is likely to be used for the same (technically called core-invasion study) shortly. Heavy water could be used in non-nuclear programmes also, he said. (www.thehindu.com)

February 10, 2015. With a view to ease the availability of market-priced kerosene, the government has freed sale of non-PDS kerosene from regulatory control. The government has amended the Kerosene (Restriction on Use and Fixation of Ceiling Price) Order, 1993, to free all activities of storage, transportation and sale of white kerosene (market-priced kerosene or non-PDS kerosene) from regulatory control. Subsidised kerosene sold through public distribution system (PDS) is blue in colour while the market priced fuel is colourless. While PDS kerosene is priced at ` 15.14 per litre, the non-subsidised or market-priced fuel comes for ` 27.68 a litre. (economictimes.indiatimes.com)

February 10, 2015. The oil ministry proposes to raise the government's share by 5% and insist on explorers accepting Delhi as the seat of any future arbitration, irrespective of any other provision in the agreement, for granting extension to production sharing contracts for small and marginal fields. Government said the extension policy being worked out in the ministry does not envisage any concession on royalty and cess to explorers but lays down time limits for the ministry and its technical arm, Directorate General of Hydrocarbons (DGH), to process and decide applications for extensions. Under the proposed policy, explorers would have to continue to pay royalty and cess at normal rate.

At present, explorers have to pay 20% royalty on crude from onland fields, 10% from offshore blocks and a uniform 10% on gas. Cess is to be paid at ` 4,500 per tonne. The government's share would be calculated with a floor of 50% for small fields and 60% for medium-sized fields. The policy, once approved by the government, would cover 28 fields with an estimated reserve of 43 million tonnes of oil and oil-equivalent gas. The extension is being proposed to be granted for 10 years or the life of a field, whichever is earlier. The explorers would be asked for a bank guarantee equal to 10% of the total estimated annual expenditure in respect of the yearly work programme approved by the respective oversight panels. Displaying a pragmatic approach by the ministry, the policy blueprint accepts that it would make more sense to extend the production sharing contracts since the size of these fields would not justify the extra effort needed to put them to bidding.

Besides, the blueprint takes into account the fact that existing explorers would be in a better position than a newcomer to extract the remaining reserves since they would have the best knowledge about the fields and their geology. Explorers seeking extension of their contracts would be allowed to submit their application at least two years before the contract expires. The policy proposes a time limit of eight months for the DGH to make its recommendations and four months for the ministry to take a final call with the approval of the minister. (economictimes.indiatimes.com)

February 5, 2015. Prime Minister (PM) Narendra Modi said direct cash transfer schemes like the "PAHAL Yojana" will bring an end to black-marketing and subsidies will reach people more effectively. Expressing satisfaction at the registration of 10 crore citizens as part of the "PAHAL Yojana", the prime minister said the scheme has a major role in nation-building. Modi reviewed the progress of the direct benefit transfer of LPG (DBTL) scheme - Pratyaksh Hanstantarit Labh (PAHAL) - for paying consumers subsidy on cooking gas (LPG) directly into their bank accounts. The scheme aims to reduce diversion and eliminate duplicate or bogus LPG connections.

The Prime Minister has been actively batting for the PAHAL Yojana which he earlier described as the next big scheme which will substantially benefit the economy after the Jan Dhan financial inclusion programme. The direct benefit transfer scheme was re-launched in 54 districts 15 November, 2014, and is envisaged to cover over 15.3 crore consumers across 676 districts of the country. (www.firstpost.com)

 [NATIONAL: POWER]

February 8, 2015. Union Civil Aviation Minister P. Ashok Gajapathi Raju laid the foundation stone for a 12 MW hydel power project under the private sector at Sikhaparuva, a tribal village near Thonam in Salur mandal. Anticipating trouble from CPI leaders and tribal people, police, as a preventive measure, arrested four CPI leaders S. Ramachandra Rao, G. Ramu, Pydi Chitti, and A. Ananda Rao.

Ashok emphasised the need to tap natural resources such as solar and wind energy for power generation and check transmission losses. On opposition from tribals, the Minister said there would be no hurdles in the execution of the project. M/s Mohanarupa Power Projects (P) Limited, Vijayawada, is executing the project at a cost of ` 112 crore. (www.thehindu.com)

February 5, 2015. BHEL said it has commissioned a 270 MW unit of a coal-based thermal power plant in Maharashtra. The third unit was commissioned at Rattan India Power Limited's (formerly Indiabulls Power) upcoming thermal power project located at Amravati in Maharashtra, BHEL said. This is the third 270 MW unit commissioned by BHEL in Phase-1 of the project. The project is being executed in two phases, each of 1,350 MW. (economictimes.indiatimes.com)

February 4, 2015. Coal India Ltd (CIL) needs to produce and sell around 120 million tonnes of coal in February and March to meet its targets for the year. But that's unlikely going by the production and sales trend thus far in FY15. The company has missed production and sales targets every month from May 2014 to January 2015. As a result, the backlog has touched 118 million tonnes for production and 121 million tonnes for sales.

The highest volume of coal produced in any single month was December 2014 — 47 million tonnes. The highest sales was in January — 44 million tonnes. To meet targets, CIL needs to produce and sell at least 60 million tonnes each in February and March. (economictimes.indiatimes.com)

February 10, 2015. The power transmission and distribution (T&D) losses are likely to come down to 18 per cent by the end of 13^th Plan period from the current level of 23 per cent, the Central Electricity Authority (CEA) said. CEA said that T&D losses is still very high when compared to international standards, adding that by the end of the current plan period it is expected to come down hardly by one per cent to 22 per cent. The government had said that power sector is set for $250 billion investments across different segments, including transmission and distribution. Power and Coal Minister Piyush Goyal had said renewables is set to get $100 billion, while transmission and distribution segment is likely to attract $50 billion. Electric power transmission and distribution losses include losses in transmission between sources of supply and points of distribution including distribution to consumers. (economictimes.indiatimes.com)

February 9, 2015. In a sector fraught with challenges, if margins are to be determined by the pace of loss reduction, the business model can hardly be termed prudent. But this is exactly what power distribution franchisees are doing - some of them in more cities than one. While a new set of players - India Power, Crompton Greaves, Torrent and Essel Utilities - have taken the job of distribution franchisees with much enthusiasm, industry players advise caution over distribution firms' modified bidding norms. According to India Power Corporation, states have increased the base rate for companies to bid for distribution franchise contracts. India Power is the distribution franchisee for Gaya in Bihar. It received the rights for the city after Essel Utilities did so for Muzaffarpur and SPML Infra for Bhagalpur, for 15-year contract periods. The distribution-franchise model was first tried in December 2006, when Maharashtra State Electricity Distribution Company Ltd (MSEDCL) gave Torrent Power the rights for the Bhiwandi circle. The textile hub, where 60 per cent of the demand comes from the power loom sector, has a customer base of about 200,000, spread over 721 square kilometres. Eight years on, Bhiwandi is not alone. There are more than a dozen cities, including Nagpur in Maharashtra; Sagar, Gwalior and Ujjain in Madhya Pradesh; Agra in Uttar Pradesh; and Muzaffarpur, Gaya and Bhagalpur in Bihar; that have adopted the distribution-franchise model. State government-owned distribution companies adopt this model in areas where losses are high. Under Section 14 of Electricity Act, a power distribution company can appoint another entity to supply power in a particular area within its distribution territory without the requirement of a separate distribution licence. (www.business-standard.com)

February 6, 2015. Japanese giant Fuji Electric has agreed to set up a smart grid near Andhra Pradesh's new capital city to help the state government to monitor the energy consumption and forecast the demand, aimed at developing an efficient energy management system. Fuji had already committed to conduct a feasibility study on smart energy grid for Panipat in Haryana. The Japanese firm, which will set up the smart energy grid on a pilot basis near Vijayawada as a part of cooperation between the two governments, has recently conducted a feasibility study. Chief Minister Chandrababu Naidu asked the Japanese company representatives to help the state with technologies to bring down the transmission and commercial losses to 6% from the existing 12.9%. (economictimes.indiatimes.com)

February 5, 2015. The Aam Aadmi Party, Bharatiya Janata Party and Congress are promising to halve Delhi's power rate if elected to office but any lower than ` 2.8 a unit could play havoc with the state's budget. The combined financial loss of Delhi's three power distribution companies was ` 22,000 crore in 2012-13 when the state government provided a subsidy of ` 118 crore to them. If rates are halved, the subsidy would need to be doubled.

Delhi's power supply business was handed over to private companies in 2000, when technical and commercial losses were 47 per cent. The three distribution companies - Tata Power Delhi Distribution Ltd (TPDDL) and BSES Rajdhani Private Limited (BRPL) and BSES Yamuna Power Limited (BYPL) - have brought these losses down to 11 per cent in the past 10 years, leading to annual savings of ` 13,000 crore. The companies said Delhi's power customers had saved ` 45,000 crore in 12 years because of this. The energy charge levied by the power distribution companies increased to ` 3 a unit in from ` 1.8 in 2002, but power purchase costs tripled to ` 5.6 per unit during the same period. The additional revenue which cannot be passed to the consumers has created over-dues of ` 30,000 crore for the distribution companies, as they bear the cost. (www.business-standard.com)

February 4, 2015. Adani Power and GMR Energy bid for all six coal blocks reserved for the power sector, while Essar Power is eyeing four of such coal mines. Jindal Power submitted bids for three of the six coalmines, while Reliance Power is in race for two coal blocks. Adani Power is eyeing all blocks reserved for power sector. West Bengal Power Development Corporation Ltd (WBPDCL) is the only government company that took part in coal auction, while the government is in the process of allotting blocks to public companies. Tokisud coal block in Jharkhand that earlier belonged to GVK Power attracted most number of bids among the six coal blocks earmarked for power plants. The block received bids from 12 firms including Essar Power, DB Power, Dhariwal Infrastructure, India Power Corp, Lanco Infratech and WBPDCL. The block with 2.32 million tonnes of annual coal production capacity has rail connectivity within 2.5 km distance.

Eleven companies bid for Amelia North coal block in Madhya Pradesh that earlier belonged to Madhya Pradesh State Mining Corp. The bidders include Essar Power, GVK Power and Lanco Infratech. The block has reserves of 2.8 million tonnes per annum. Gare Palma IV/2 and IV/3 block in Chhattisgarh that earlier belonged to Jindal Power Ltd is also being eyed by about 11 companies including GMR Energy, Reliance Power, DB Power and KSK Energy. Jindal Power submitted two bids for the block that has a capacity to produce 6.25 million tonnes per annum but does not have a close rail link as the nearest rail head is at a distance of 55 km.

Six companies including Sesa Sterlite, Essar Power, RKM Powergen and OPG Powergenare in race for Talabira-I coal block in Odisha that was earlier owned by Hindalco. The block has a capacity to produce three million tonnes per annum. In all coal blocks reserved for power companies attracted 54 bids while those earmarked for steel and cement sectors received 124 bids. The coal ministry opened technical bids for 23 coal blocks of which six were meant for power plants while the balance 17 for steel and cement projects. (economictimes.indiatimes.com)

February 4, 2015. The Central Electricity Regulatory Authority (CERC) proposes to start round the clock trading in power exchange platforms. As per the proposal, the trading of day ahead contingency/intraday contracts be extended round the clock (24 X7) on the power exchange platform. While the need and manner of introduction of ancillary market is being examined by CERC, standard contracts need to be available on power exchanges for the period between the existing trading auction timelines and the actual delivery of power.

In order to provide grid connected entities with measures to respond optimally and in line with trading mechanism present internationally, extended trading session is necessary. Thus this proposal aims at bringing the trading window as close as possible to the actual delivery and operates market on 24x7 bases. Especially for a product like electricity, an extended trading session for day ahead contingency/intraday trades is necessary to ensure round the clock power supply for the people. The salient features of this will be that the existing products for day ahead contingency and intraday markets would continue to be operated by the exchanges. The timelines for the products are extended for both exchanges so that trading window is open round the clock. Besides, contingency market to be operated for the entire day after completion of day ahead market. The contracts will be on a rolling basis and as close to real time as possible and the price discovery mechanism remains exactly same as those for the respective products presently.

The features of the evening market will be that price discovery remains same as that of morning day ahead market but the process is totally independent of the morning market and participants bid again in Day-Ahead auction or market refers to a process where trading takes place on one day for the delivery of electricity the next day. Market members submit their orders electronically, after which supply and demand are compared and the market price is calculated for each hour of the following day. (www.business-standard.com)

February 10, 2015. All power projects receiving coal from Coal India Ltd (CIL) on an ad-hoc basis which was slated to stop after March 2015, will keep receiving coal till coal block e-auctions are complete. This assumes importance since completion of e-auction by March 2015 now seems uncertain as a clutch of former block allocates have filed petitions in the court, leading to delays in completion of coal block e-auctions. Coal was being supplied to power projects on the assumption that they would not require any coal from Coal India going forward because blocks allotted to them would start producing in the future. However, the Supreme Court declared all such coal block allotments as illegal and the ad-hoc supply of coal was to stop after March 2015.

Termed tapering linkages, such coal supply commitments assume allotted coal blocks will slowly increase production and hence requirement of coal supplied by CIL will reduce. Under this category of supply commitment, supplies are to stop on the fourth years with reduced volumes being sold to the power project every year. In the absence of any block and a reduced supply from Coal India, these power projects faced an uncertain fate.

The government has recently decided that CIL will keep supplying coal to them the volume for which would be maintained at this year's level till e-auctions are complete. Coal India will continue supplying coal to all power projects which had their blocks de-allocated following a Supreme Court order that termed them illegal. (economictimes.indiatimes.com)

February 9, 2015. Coal India Ltd (CIL) is likely to scrap its maiden overseas coal production project as the deposits in the acquired blocks are "not good enough to be called coal," the company said. The company said the coal in the two blocks acquired in Mozambique is unfit for consumption by even Indian power plants, which can use the lowest variety of coal. CIL has already spent close to ` 500 crore in exploring reserves in the two blocks.

CIL won a five-year licence for exploration and development of A1 and A2 blocks, acquired about six years ago, in Mozambique's north-western province of Tete. The blocks were un-explored and it was upon CIL to explore and ascertain the quality of the coal. Following the acquisition of the blocks, CIL floated Coal India Africana in Mozambique, the company that is supposed to execute exploration and production.

CIL was given to understand that 20% of the deposits in these blocks are expected to be of superior variety, good enough to be used in steel making, while the remaining were expected to be thermal coal, which could be used as fuel in power plants. It took CIL almost two years to explore the entire area. Sample coal was sent to India for analyses. After extensive exploration, the quality of the reserve was found to be extremely inferior.

CIL had earlier targeted production from the block by 2014 but delays in securing the exploration licence held up the process. It also had to renew the licence once as a result of the delay. CIL planned to bring the mined coal to India to meet the nation's rising demand for thermal and coking coal. The company lost about a year in appointing an explorer for the blocks. It had to scrap tenders twice due to technical reasons, leading to delays in launching exploration. (economictimes.indiatimes.com)

February 9, 2015. The Coal Ministry received a total 69 applications from various public sector undertakings (PSUs) like NTPC, SAIL, Nalco and NLC for allocation of 36 coal blocks, which would be given to state-run companies only. The maximum number of applications (9) were received for Gare Palma Sector II coal mine in Chhattisgarh.

As part of the allotment process, online applications and offline supporting documents were opened in the presence of applicants. The online applications were decrypted and opened electronically in the presence of representatives of applicants. The applications will now be evaluated by a technical evaluation committee. PSUs such as NTPC and the Singareni Collieries Company Ltd (SCCL) have applied for for Gare Palma Sector II coal mine in Chhattisgarh.

Madhya Pradesh Power Generating Co Ltd, Tamil Nadu Generation and Distribution Corp Ltd, Gujarat State Electricity Corp Ltd, Chhattisgarh State Power Generation Co Ltd, Uttar Pradesh Rajya Vidyut Utpadan Nigam Ltd, Maharashtra State Power Generation Co Ltd, Andhra Pradesh Power Generation Corp Ltd are among other PSUs which have applied for the block. The coal block was earlier alloted to Maharashtra State Power Generation Co and Tamil Nadu State Electricity Board. Gare Palma Sector III coal block in Chhattisgarh also received six applications from NTPC, Chhattisgarh State Power Generation Co Ltd, Telangana State Power Generation Corporation, and others. Utkal D and Utkal E coal blocks in Odisha together received six applications from companies like NTPC, Nalco and NLC Tamilnadu Power Ltd. However, no PSU showed interest in Bajora North coal mine in West Bengal which was earlier alloted to Damodar Valley Corporation. Steel Authority of India Ltd (SAIL) applied for Sitanala coal mine in Jharkhandwhich is earmarked for steel sector.

The allotment process for 36 coal mines to government companies started in January, with the release of Notice Inviting Applications (NIA). Of these coal blocks, one mine will be given to the steel sector while the rest will be given to the power sector. The government had said that it will be able to complete execution of allotment agreement by the end of February. The government is also putting on sale 46 coal blocks to be auctioned to private companies. (economictimes.indiatimes.com)

February 9, 2015. Stating that "some interesting" proposals for infrastructure development can be expected in the Union Budget, Coal and power Minister Piyush Goyal hoped for an innovative financing model to help revive power sector and investments. The General Budget will be presented on February 28 in Parliament.

On the Electricity amendment Bill, Goyal said it had already been placed before the Lok Sabha with "important elements" -- strengthening the regulatory mechanism and giving a great thrust to the renewable energy, both in terms of renewable power obligation for consumer as well as the renewable generation obligation. This type of competition in the power distribution would be a game changer in India and would give consumers sustainable affordable power at more reasonable prices besides bringing in better service standards and quality of power, Goyal said. (economictimes.indiatimes.com)

February 8, 2015. The maximum compensation that nuclear suppliers will have to pay in case of a mishap will be pegged at ₹ 2,160 crore. The Ministry of External Affairs points out that the Civil Liability for Nuclear Damage Act of 2010 (CLND) presently prescribes that the maximum amount of liability in respect of each nuclear incident shall be the rupee equivalent of 300 million Special Drawing Rights (SDRs).

The Ministry said that there is no proposal to amend the CLND Act 2010 or the Rules of 2011. Pointing out that the operator’s maximum liability shall be ₹1,500 crore. In case the total liability exceeds ₹1,500 crore, this gap of ₹1,110 crore will be bridged by the Central Government. Beyond ₹2,610 crore, India will be able to access international funds under the Convention on Supplementary Compensation for Nuclear Damage (CSC) once it is a party to that Convention. The CSC was set up to establish a worldwide liability regime and to increase the amount of compensation available to victims of nuclear accidents. (www.thehindubusinessline.com)

February 7, 2015. The Odisha government has taken steps to expedite activities for development of coal blocks in the state, Union Coal Secretary Anil Swarup said. Milestone of the work along with timeline has been fixed against each coal mine, Swarup said that it has been targeted to increase the total coal production from present level of 500 million tons to 1000 million tons. Accordingly, he said, it has been targeted to enhance the coal production of Mahanadi Coalfields Limited (MCL) from present level of 125 million tons to 250 million tons by 2020.

He further said that it has been decided to form two Special Purpose Vehicles (SPVs) for laying of railway lines for evacuation of coal from Talcher Coal Block and Ib Valley Coal Block. The state government has already formed one SPV for construction of railway lines in Talcher Coal Block area. Swarup said, such efforts of the state government will set an example for other States. It has been decided in the meeting that SPVs will be formed involving MCL, Indian Railways and the Government of Odisha. (economictimes.indiatimes.com)

February 7, 2015. Political parties may be promising lower electricity tariff to voters ahead of Delhi assembly polls, but power companies have their own agenda. The discoms are just waiting for election to be over and the model code of conduct to expire so that they can approach Delhi Electricity Regulatory Commission (DERC) to reinstate power purchase adjustment charges (PPAC). Once results are announced, discoms say they would seek availing of the fuel surcharge withdrawn in November as the city has been facing massive power cuts. Discoms claimed that three months without PPAC was a political move that has worsened their financial situation. DERC would also admit tariff petitions submitted by discoms in December last year.

The three discoms have sought tariff hikes up to 20% for fiscal 2015-16. However, DERC is known to take its own time in announcing tariffs which generally come in June July. On November 14 last year, DERC withdrew the PPAC order it passed just a day earlier. While the regulator said it had withdrawn the order till the time it received complete information from various generators on fuel pricing, discoms alleged the move was prompted by political pressure.

The PPAC order that was withdrawn had announced a 2.5 per cent hike for Tata Power consumers in north and northwest Delhi, 4.5 per cent hike for BRPL's south and west Delhi consumers and a 7 per cent hike for BYPL consumers in east and central Delhi. The PPAC hike would have been applicable till February 15, 2015. DERC said it would not pass the order till discoms provided all breakups of fuel costs from NTPC and other generating companies. Discoms, however, alleged that NTPC was not cooperating in supplying information. (economictimes.indiatimes.com)

February 6, 2015. The Competition Commission of India (CCI) has approved JSW Energy’s proposed ` 9,700 crore acquisitions of two hydro—electric projects from Jaiprakash Power Ventures. Under the proposed deal, JSW Energy would acquire —— 300 MW Baspa II hydroelectric project and 1,091 MW Karcham Wangtoo hydro—electric project —— located in Himachal Pradesh from Jaiprakash Power Ventures.

The deal involves transfer of the power projects to Himachal Baspa Power Company by Jaiprakash Power. Further, JSW Energy would acquire 100 per cent stake in Himachal Baspa from Jaiprakash Power and Jaypee Group Employees Welfare Trust. The deal was entered between the parties in November, last year, following which they had filed for CCI approval in December. (www.thehindubusinessline.com)

February 6, 2015. Karnataka Power Minister D K Shivakumar said that the state government has taken steps to ensure there is no load-shedding during exam times so that students do not suffer. The state is facing a shortage of 1,400 MW, which will reduced to 800 MW by April. Shivakumar said situation is difficult till June but would be managed and steps, including ensuring efficient working of power generation units, have been taken in this regard.

Farmers in rural areas have been requested to use the irrigation pump sets when there was less pressure, he said. Shivakumar gave details about the steps being taken by the government to improve power generation in the state and become self reliant, which include 700 MW BTPS Unit 3 and 1600 MW Yermarus project among others. (www.business-standard.com)

February 6, 2015. Maharashtra government will set up review and vigilance committees at district and tehsil levels to stop power thefts and provide good services to consumers. At the district level, the committee will be headed by guardian minister and will also include superintendent engineer and district collector.

The committee will also look into complaints of power deficit and T&D losses as well as monitor basic infrastructure of setting up the power projects. It will look into whether the district is getting assured electricity supply and also review applications for agriculture pump connections. The committee will help Mahavitaran to recover electricity bills and stop power thefts, he said. (www.business-standard.com)

February 5, 2015. The Uttarakhand government has notified a policy for micro and mini hydro power projects, in which it has involved local panchayats with a slew of incentives. The state has an estimated potential of 3,000 MW, largely untapped as far as micro and mini hydel projects are concerned.

Only 170 MW of small hydro projects have been installed. Under the new policy, the first priority will be given to gram panchayat within whose area the complete proposed project site is located, the Uttarakhand Energy Development Agency (UREDA). For the development of the hydel projects, the government has allowed the panchayats to take the help of companies by floating special purpose vehicles (SPVs) through bidding process. The bidder who is willing to offer the maximum percentage of revenue share to the eligible panchayat would be chosen as SPV partner to execute the project. The policy has been broadly classified into two parts - one deals with the hydel projects having capacity up to 100 kilowatts (KW) and another deals with the projects having capacity above 100 KW and up to two MW.

Among the various incentives, the government is offering developer to take the benefits of the central financial assistance according to the standing guidelines of the Union ministry of new and renewable energy. The developers could also avail the social venture capital fund. No royalty will be charged on these projects.

The government would also not levy any entry tax on power generation/transmission equipment and various building materials used for the projects. Significantly, the micro and mini hydro projects in the state would be treated as industry and all the benefits declared by the state government from time to time will be applicable to these projects. (www.business-standard.com)

February 5, 2015. The Power Ministry will come out with a Cabinet note on changes in Tariff Policy for enabling greater competition in the sector. After receiving responses from various ministries concerned, the Power Ministry will send the note on changes in Tariff Policy to the Cabinet for its approval. As part of changes in the Tariff Policy, the Power Ministry has sought extension of Section 62, under which the electricity regulatory commissions have been empowered to determine tariffs, beyond financial year 2017.

Keeping the hydro projects also under this section for the continuation of cost plus tariff structure is also a part of proposed changes. Under the cost plus tariff structure, PSUs like NTPC and NHPC charge a lump sum fee as well as a per-unit charge from distribution companies. Another proposed change is having a formula which would ensure that variation in fuel and power purchase cost is recovered by the power generating firms. (www.firstpost.com)

February 4, 2015. The Variable Energy Cyclotron Centre (VECC) Kolkata said that 3 to 4% of total electricity power in India now come from nuclear power plants and a relief fund is in place for compensation in case of any nuclear disaster.

Department of Atomic Energy (DAE) has created a relief fund of ` 1500 crore after the Bhopal gas disaster of 1984 to give immediate compensation to the victims of atomic power plant accident. DAE under the government of India was established in 1954 and it is celebrating its Diamond Jubilee Year this year. (www.newkerala.com)

February 4, 2015. The government has approved a scheme to swap coal supplies between various power plants with nearest source of the fuel to save costs and de-congest railway network. The scheme, envisaged to save up to ` 6,000 crore transportation costs, has been started with 19 power plants of public companies like NTPC, Damodar Valley Corp (DVC) and electricity generation utilities of states like Haryana, Rajasthan and Punjab. The coal swapping scheme is envisaged to be implemented in three phases.

The coal ministry has directed Coal India Ltd (CIL) and Singareni Collieries Company Ltd to immediately implement the first stage consisting of swapping in 19 power plants that would result in ` 1,000 crore logistic saving. These projects belong to state entities of Haryana, Rajasthan, Gujarat, Maharashtra, Telengana, besides projects of NTPC and DVC. The second stage consists of swaps between utilities of six states — Uttar Pradesh, Haryana, Rajasthan, Gujarat, Tamil Nadu, Maharashtra and Punjab — and power stations of NTPC and DVC. (economictimes.indiatimes.com)

February 4, 2015. Electricity Minister Aryadan Mohammed has said that Kerala will have to increasingly purchase power from other States if it does not take energy conservation seriously. He was addressing a meeting to inaugurate the third phase of the 400 kV sub-station at Madakkathara.

The scheme to provide free power connection to those in the BPL category and those in the APL category who have houses below 1,000 sq ft had been extended till April 31, he said. The third phase has been completed by raising the capacity of the sub-station from 1,050 MVA to 1,365 MVA. The work has been done at a cost of ` 18.65 crore. The project benefits 54 lakh consumers in Thrissur, Palakkad, Malappuram, Kozhikode, Wayanad, Kannur, and Kasaragod districts. (www.thehindu.com)

 [INTERNATIONAL: OIL & GAS]

February 10, 2015. China announced the discovery of a huge gas field in the politically charged South China Sea that could yield over 100 billion cubic metres of natural gas, raising its stakes in the waters claimed by several South East Asian nations. The Lingshui 17—2, approved as a large scale gas field by Ministry of Land and Resource, was discovered 150 kilometres south of China’s southernmost island of Hainan. China National Offshore Oil Corporation (CNOOC) said Lingshui 17—2’s average operational depth is 1,500 metres below the sea surface. The company’s deepwater drilling rig CNOOC 981 discovered Lingshui 17—2, the country’s first self—support deepwater gas field, in September 2014. CNOOC said the approved gas reserves of Lingshui 17—2 will help the corporation build a gas trunk line to connect other gas fields in the South China Sea (SCS), so as to meet the huge gas demand of southern provinces, Hong Kong and Macao. The field, however, could meet only about six to seven months of Chinese gas supply currently, experts say. Observers say the discovery may raise further tensions in the SCS, one of the world’s busiest shipping routes but dominated by overlapping claims by several nations including Malaysia, Vietnam, Taiwan, the Philippines, Brunei and China, which virtually claims all of the sea. China has objected to India’s ONGC accepting a Vietnamese invite to take up oil exploration in the SCS. (www.thehindubusinessline.com)

February 9, 2015. Argentine oil output fell 1.4 percent last year versus 2013 to 30.88 million cubic meters while the country's natural gas production edged 0.5 percent lower to 41.48 billion cubic meters, according to data provided by the Energy Secretariat. A fall in production by private companies during 2014 outweighed increases reported by state-controlled YPF, the country's top energy company, according to data. YPF crude production increased 8.85 percent last year versus 2013 while its gas output shot 12.5 percent higher, the data said. Argentina is running an energy deficit of about $7 billion per year, which the government wants to close by attracting investment to the vast but mostly untapped Vaca Muerta shale oil and gas field in Patagonia. (www.rigzone.com)

February 5, 2015. Big oil companies had a poor record of finding and producing oil and gas last year, according to figures out in the past week - and big cuts in spending in response to falling crude prices could undermine their plans to turn that around. Four of the world's six biggest oil firms by market value - Royal Dutch Shell, Chevron, BP and ConocoPhillips - released provisional figures showing together they replaced only two-thirds of the hydrocarbons they extracted in 2014 with new reserves. Combined, those four and industry leader Exxon Mobil posted an average drop in oil and gas production of 3.25 percent last year. All predict their output will increase and new reserves will be added in coming years. But the 2014 results echo longer-term trends. Over the past decade, the biggest Western oil companies have seen reserves growth stall, production drop 15 percent and profits fall by almost a fifth - even as oil prices almost doubled, an analysis of corporate filings shows. Analysts and industry executives have blamed the sector's anaemic performance in that period, in part, on companies' approach to spending on new fields and infrastructure, tending to ramp it up when oil prices rise and cut when prices plummet, such as in the late 1990s and after the 2008 financial crisis. The latest collapse has seen prices halve since June. In recent months, the biggest oil groups on both sides of the Atlantic have announced sharp cuts in capital expenditure (capex) out as far as 2017, as they seek to preserve cash to maintain dividends. Investors have largely welcomed the focus on dividends. But some say the cuts could come back to bite the industry. The ability of oil companies to replace reserves has not been as much of a concern for some executives and investors in recent years due to the shale oil boom. But the high cost of extracting shale oil makes doing so profitably a challenge where prices are low - making traditional and less expensive reserves more relevant in a downturn. BP and Chevron have announced around 13 percent cuts in capex for 2015, while ConocoPhillips upped its planned reductions in spending for 2015 to 33 percent. Shell and Exxon have not issued budget plans yet. (www.reuters.com)

February 4, 2015. China National Offshore Oil Corp. (CNOOC) China’s main offshore oil and gas producer, intends to slash its capital expenditure by up to 35% in 2015 – becoming the latest international energy producer to rein in spending as a response to the plunge in crude prices. The company’s state-owned listed unit said that it would cut its capital budget for the first time since 2010, to RMB 70-80 billion ($11.21-12.8 billion) – a drop of 26-35% over last year’s estimated spend of RMB 108.3 billion. Despite the reduction, the Hong Kong-listed firm said it was targeting 10-15% growth in production to 475-495 million barrels of oil equivalent (MMboe) in 2015 – up from 432 MMboe in 2014. CNOOC’s spending rollback goes deeper than those announced by some Western peers in recent days. On the same day, BP and Gazprom said they would slash investment by around 20%, while Shell aims to trim a relatively modest $15 billion over the next three years. The spending cut – the first to be announced by any of China’s three NOCs – underscores how the Chinese oil groups are embarking on a path of quality over quantity.  For the first time, CNOOC gave production targets for coming years rather than an average output growth range. CNOOC will bring seven new projects onstream this year – including the Jinzhou 9-3 field, which has already started production, and the Dongfang 1-1 gas field. The bulk of CNOOC’s 432 MMboe output in 2014 – 68% – came from China, while 32% was from overseas. The company expects this ratio to remain roughly the same up to 2017. CNOOC has made a number of gas finds in the South China Sea in recent months. It independently made a deepwater gas discovery in the northern part of the South China Sea. (interfaxenergy.com)

February 9, 2015. Cameroon's finance ministry will seek to raise $1.5 billion from banks to refinance the state refinery and fund other development projects, according to two presidential decrees. The decrees, signed by President Paul Biya, authorise the ministry to sign an agreement on fund-raising with Standard Chartered and Societe Generale. Other projects for construction, infrastructure and agriculture are also covered by the decrees. The central African country has been seeking to revamp its 45,000 barrel per day Sonara oil refinery for years. But falling oil prices have cut available spending, prompting the government to seek other forms financing. In another decree signed, Biya authorised the government to triple its debt issuance plans in 2015. (www.reuters.com)

February 10, 2015. Gazprom and Turkey have agreed the general route for the onshore section of the Turkish Stream pipeline. The first line of the 180 kilometer pipeline is expected to be completed by December 2016, according to company CEO Aleksey Miller. Landfall will be near the village of Kiyikoy, and a delivery hub for Turkish consumers will be close to the town of Luleburgaz.

The pipeline will terminate on the Turkish-Greek border in the area of Ipsila. Permission to carry out design and survey work in the new Turkish offshore section is expected soon. Gazprom is ready to supply 47 billion cubic meters of gas per year to Europe via Turkish Stream, it said. Gazprom and Turkey’s Botas Petroleum Pipeline Corporation signed a memorandum of understanding on the construction of the gas pipeline from Russia to Turkey under the Black Sea. Turkish Stream is an alternative to the South Stream project cancelled by Russia in December 2014 due to the EU’s unwillingness to support the 63 billion cubic meters capacity pipeline. The route of Turkish Stream across the Black Sea will match much of that previously agreed for South Stream. (rt.com)

February 9, 2015. A surprising plunge in China's imports shows that Asia's largest economy is still losing momentum despite a raft of stimulus measures, though global price moves and the impact of holidays may have overstated the extent of the downturn. January imports tumbled 20 percent from a year earlier, the steepest slide since May 2009 when factories slashed inventories in reaction to the global financial crisis.

Exports were down an annual 3.3 percent. The sharp fall in import volumes, led by commodities, suggested China is slowing at an even faster pace than many thought, even after an interest rate cut in November and measures to increase liquidity and encourage banks to lend. Preliminary data showed coal orders down nearly 40 percent to 16.78 million tonnes from December's 27.22 million tonnes. China also appeared to cut back on its strategic stocking of crude oil imports, which slid by 7.9 percent from December to 27.98 million tonnes. Oil imports were nearly flat versus the January 2014 total. (uk.reuters.com)

February 9, 2015. The recent surge in oil prices is just a "head-fake," and oil as cheap as $20 a barrel may soon be on the way, Citigroup said in a report as it lowered its forecast for crude. Despite global declines in spending that have driven up oil prices in recent weeks, oil production in the U.S. is still rising, wrote Edward Morse, Citigroup's global head of commodity research. Brazil and Russia are pumping oil at record levels, and Saudi Arabia, Iraq and Iran have been fighting to maintain their market share by cutting prices to Asia. The market is oversupplied, and storage tanks are topping out. A pullback in production isn't likely until the third quarter, Morse said. In the meantime, West Texas Intermediate Crude, which currently trades at around $52 a barrel, could fall to the $20 range "for a while," according to the report. The U.S. shale-oil revolution has broken OPEC's ability to manipulate prices and maximize profits for oil-producing countries. (www.bloomberg.com)

February 9, 2015. Sales to the United States (US) of new Venezuelan crude blends made with imported oil nearly doubled in January to 176,000 barrels per day (bpd), but the rise was not enough to offset a decline in total oil shipments, according to trade data. Venezuela's state-run company PDVSA started buying Algerian light crude in October from Sonatrach to use it as diluent for its own extra heavy oil output. China and the United States have been receiving cargoes of the new blends since then, but disagreements over terms of the Algerian oil sales have caused PDVSA to halt the purchases. PDVSA and its joint venture partners sent 736,000 bpd of crude to the United States last month, down 10.5 percent from December. Traditional grades comprised most of the shipments, while new blends accounted for 24 percent and diluted crude oil (DCO) made with imported heavy naphtha represented seven percent. PDVSA is expected to resume regular exports of DCO after limiting those shipments in the last quarter of 2014 amidst falling sales prices. Its refining unit in the United States, Citgo Petroleum, would absorb most of them. (www.reuters.com)

February 6, 2015. Gulf Keystone Petroleum, a foreign oil producer in Iraqi Kurdistan, has suspended trucked exports of crude to favour sales to the local market because it is awaiting export payments from the Kurdish government, the company said. Gulf Keystone, like other oil producers across the globe, is trying to deal with the financial consequences of a sharp decline in oil prices since last year's peak in June. It has been catching up on payments since Iraq's central government reinstated budget allocations to the autonomous authority late last year. The oil company said it was taking a "prudent approach" with capital spending in 2015, reflecting decisions by its industry peers to slash investment on the back of weak oil prices. (www.rigzone.com)

February 5, 2015. Global output of liquefied natural gas may shrink after 2020 as falling oil prices prompt producers to withdraw plans for new plants and delay investments. Projects that sell LNG linked to the price of oil will be under pressure with crude between $50 and $60 a barrel, and more than $60 billion in cash flow may be affected this year, Wood Mackenzie Ltd. said. Projects with more than $100 billion of investment are at risk of delays or cancellation. Companies have moved to cut costs after benchmark crude slumped almost 50 percent last year as the U.S. pumped oil at the fastest rate in more than three decades, exacerbating a global glut. Royal Dutch Shell Plc, BG Group Plc, Petroliam Nasional Bhd and Chevron Corp. have cut or delayed spending on LNG projects from Australia to Canada. (www.bloomberg.com)

February 5, 2015. Plains All American LP will build two new crude oil pipelines and associated gathering systems in far West Texas and New Mexico, adding more reach to other expansions to move Permian Basin production to markets, the company said. Both projects will increase infrastructure to move output from the Delaware Basin part of the Permian, where output is increasingly a very light form of crude known as condensate. Plains said the company will extend its Avalon pipeline in Loving County into Culberson County with a 32-mile, 12-inch line with 100,000 barrels per day of capacity. That project is slated for initial startup in July and full operation in September this year. The company also will build a 60-mile, 16-inch State Line pipeline to connect Culberson County output to Wink, Texas, along the Texas-New Mexico state line. That 150,000 bpd pipeline will move Delaware Basin output in Eddy and Lea counties in New Mexico and Loving, Reeves and Culberson counties in Texas to existing Plains operations. The State Line pipeline also will be a batched system, meaning it will be able to transport condensate separate from other types of crude. The State Line will start up in phases from early to mid-2016, Plains said. (www.downstreamtoday.com)

February 4, 2015. Brent oil surged to $58 a barrel. It is now 24 percent higher than it was just a few weeks ago, meeting the technical definition of a bull market. One possible reason for the recent surge: an industry in despair. U.S. drillers idled 94 rigs, the most in data going back to 1987, according to Baker Hughes. In the past eight weeks, 352 rigs were idled. BP said it will reduce spending to $20 billion this year, compared with previous guidance of as much as $26 billion. The cuts bring renewed focus to rig counts and raise questions about how low prices can go and still sustain the U.S. oil boom. The history of oil prices follows a golden rule: What goes down must come up. Goldman Sachs in December identified almost $1 trillion in investments in future oil projects that are no longer profitable with oil under $70 a barrel. Eventually, supply will shrink and prices will rise again. (www.bloomberg.com)

February 10, 2015. Abu Dhabi Gas Industries Co (GASCO) and Abu Dhabi Gas Liquefaction Co (ADGAS) said they had awarded about $1.6 billion worth of contracts to expand the country's natural gas processing facilities. The project will develop and expand facilities to boost gas transfer from offshore to onshore as part of the UAE's plans to meet increasing local demand for gas, the companies said. ADGAS, majority-owned by Abu Dhabi National Oil Co, said that it planned to increase gas production to as much as 2.4 billion standard cubic feet (scf) per day by 2017, from 2 billion scf per day. (www.rigzone.com)

February 5, 2015. Russia's Energy Ministry expects crude oil exports to increase by 5 million tonnes in 2015 because of changes in taxation. The changes, known as the "tax manoeuvre", reduced oil export duties and increased taxes for mineral extraction. As a result, Russia will be able to boost exports without increasing production. (in.reuters.com)

February 4, 2015. United Arab Emirates (UAE) Energy Minister Suhail Al Mazrouei is looking at ways of controlling the cost petrol in the country to reflect the current price of oil. He said one of the main reasons behind the higher prices in the UAE was the losses suffered by oil companies in the country over the past ten years. He said that Abu Dhabi National Oil Company (ADNOC) lost over AED6.4bn ($1.7 billion) from the sale of gasoline in 2014 alone. He said the losses were due to the price of petrol being subsidised, which also meant that it has not been possible to bring down petrol prices. Al Mazrouei said the ministry is looking at ways to control petrol prices so they reflect the current price of oil. Discussions with oil companies have not yielded a solution, and he told the Federal National Council (FNC) that a committee will be set up for controlling oil prices in the country. (www.arabianbusiness.com)

 [INTERNATIONAL: POWER]

February 10, 2015. Russia and Egypt have signed an agreement on the development of a nuclear power plant in the African country. The accord between Russia’s Rosatom State Atomic Energy Corporation and Egypt's Ministry of Electricity and Renewable Energy was signed during a meeting between Russian President Vladimir Putin and his Egyptian counterpart, Abdel Fattah el-Sisi, in Egypt’s capital, Cairo. The Egyptian head of state said the nuclear power plant would be constructed in Dabaa in northwest Egypt on the Mediterranean coast. The foundation of the power plant was laid during the rule of ousted president, Hosni Mubarak. A 2011 uprising ended his decades-long rule in Egypt. Putin said that Moscow and Cairo may soon abandon the US dollar in bilateral trade and use their national currencies instead. The Russian leader added that the volume of bilateral trade between the two countries amounted to more than USD 4.5 billion, a figure nearly 50 percent up from the previous year. (www.presstv.ir)

February 6, 2015. Ghana President John Mahama directed the Minister of Power to bring in additional emergency thermal power of 750 MW this year to alleviate the power supply shortfalls the country was experiencing. The additional emergency thermal power, he said would enable the Akosombo hydro-dam, which is currently running on four out of its six turbines, to shut down one more unit to restore the low lake level. Currently, the water level in the Akosombo Dam with a maximum generating capacity of 1,020 MW, is just five feet above the minimum operating level of 240 feet (558.9 MW). The water level in the dam would improve if the country experience adequate rainfall this year.

President Mahama, who visited the dam as part of his visit to power installations to ensure restoration of power signaled a shift from hydro electricity power as the nation’s main source of power supply. The President appealed to the citizenry to conserve power by switching off lights, air-conditioners and other electrical gadgets at their offices after close of work. President Mahama expressed satisfaction with the measures put in place by the Volta River Authority to preserve the lake and hoped that this year’s rains would be enough to improve the water level in the lake. (www.ghanaweb.com)

February 5, 2015. Turkey plans to invest $50 bn in power generation projects in the country between 2015 and 2018. The investment proposals are part of the country's 10^th Development Plan, according to the energy commission. While $16 bn investment will be made for increasing hydropower generation in the country, another $11bn will be aimed at boosting its nuclear power capacity.

The energy commission said that the major guidelines of the investment plan include energy sources diversification. Turkey also intends to spend nearly $10 bn for developing national coal plants, which is expected to raise the share of coal reserves in the country's economy. In addition, the Development Plan has allowed another $5 bn for setting up natural gas plants. Hydropower presently accounts for up to 25% of the energy requirements in Turkey.

The country's planned investments for nuclear power developments are intended to cut down its dependency on hydrocarbons for the next few years. Turkey plans to start construction of the Akkuyu nuclear plant, which is equipped with four reactors. Situated in the Mersin province on the Mediterranean coast, the plant is likely to replace 10% of Turkey's hydrocarbon-generated energy, once operational. (www.power-technology.com)

February 4, 2015. ContourGlobal could start building a coal-fired power plant in Kosovo in 18 months, in the first major investment in the country's energy sector in decades aimed at curbing power shortages and creating jobs, the U.S. power company said. The cost of the project is estimated at up to € 1.4 billion ($1.60 billion), with a third to be financed by ContourGlobal and the remainder via loans.

The New York-based company was the only bidder for the 660 MW plant that will replace the Balkan country's 40-year-old Kosovo A power plant, seen as one of the worst polluters in Europe. Kosovo planned in 2005 to build a third power plant, but investors were put off when the government repeatedly changed tender terms. ContourGlobal operates around 4,000 MW in power generating capacity in 20 countries. (in.reuters.com)

February 8, 2015. Tokyo Electric Power Co. (Tepco) and Chubu Electric Power Co. will transfer operations of their existing thermal power plants to a new joint venture, creating a huge thermal power company with a dominating market share. Under their agreement their thermal power generation operations will be transferred in several years to the fifty-fifty joint venture to be established in April. In October, the two utilities reached a basic agreement on a tie-up including joint procurement of liquefied natural gas and replacement of aging thermal power generation facilities, but they had continued to discuss what to do with their existing plants. In their talks, Tepco called on Chubu Electric to transfer its existing facilities to the new venture, while Chubu Electric was concerned that spinning off its core thermal power business could impair its management autonomy. But Chubu Electric apparently agreed to Tepco’s proposal of expanding the operation of the new venture, as the utility is likely to face a severe business environment with the full liberalization of Japan’s retail electricity market in 2016. (www.japantimes.co.jp)

February 9, 2015. The South Australia state government aims to review its policy on nuclear power generation, amid growing debate about the impact of growing concentrations of carbon dioxide in the atmosphere from burning fossil fuels. Australia is one of the world's largest uranium exporters, but its abundance of coal and natural gas and successive government policies banning uranium as a domestic power generation fuel have previously but nuclear energy off the political agenda. But South Australia premier Jay Weatherill said the South Australian government is setting up a royal commission to consider what role the state can and should play in the fuel cycle of nuclear energy. South Australia has one of the largest uranium deposits at Olympic Dam in the world and after more than 25 years of uranium production, it is now time to debate the state's future role in the nuclear industry, Weatherill said. The review will seek to provide a clearer understanding of the world's demand and use of nuclear energy and a deeper understanding of the state's and the nation's energy needs and how they are likely to develop in the future, Weatherill said. (www.argusmedia.com)

February 8, 2015. China has assisted Pakistan to build six nuclear reactors with a total installed capacity of 3.4 million kilowatts, a top Chinese official said as Beijing plans to build two 1100 MW reactors in Karachi with $6.5 billion assistance. Outlining China's nuclear technology exports, Wang Xiaotao, vice minister of the National Development and Reform Commission (NDRC), said the country is involved in initial discussions with several countries on the possibility of exporting its nuclear power equipment. China is currently exporting nuclear technology to Pakistan and Argentina, he said. China has built two 300 MW reactors at Chasma in Pakistan's Punjab province followed by two 320 MW units at the same place. It has also announced plans to construct for the first time two 1100 MW reactors in Karachi. India and the United States have expressed concern that the two reactors are being built without the sanction of the Nuclear Suppliers Group (NSG), which supervises the global civil nuclear technology commerce. (economictimes.indiatimes.com)

February 6, 2015. Japan's government is aiming to restart a nuclear reactor by around June following a lengthy and politically-sensitive approval process in the wake of the Fukushima disaster. Prime Minister Shinzo Abe's government has been pushing to bring some of the country's reactors back online after all 48 closed following meltdowns at the Fukushima Daiichi plant in March 2011, arguing they are key to economic growth. A reboot in what was once the third-biggest user of nuclear power would boost its utilities, which have been hit by huge losses as they switch to fossil fuels and upgrade nuclear plants, with two turning to the government for bailouts. But the move would be controversial in a nation where most oppose nuclear power, with memories still fresh of the worst atomic crisis since Chernobyl in 1986. By June, Japan's Nuclear Regulatory Authority is expected to have completed the final checks and appraisal of the reactors at Kyushu Electric's Sendai station, letting Abe give the final go-ahead after local authority approval late last year. (www.reuters.com)

February 6, 2015. The Chinese government has signed an agreement to develop two nuclear power plants for Argentina. The agreement has been signed during Argentine President Cristina Fernandez de Kirchner's meeting with Chinese President Xi Jinping in Beijing, China. In addition to the nuclear deal, a total of 14 agreements have been signed by the two nations for cooperation in energy, financing, space technology, media, and information technology. As part of the development deal, China will also transfer nuclear technology to Argentina in order to strengthen their strategic partnership. Over the next five years, China is planning to invest approximately $250 bn in Latin America. (nuclear.energy-business-review.com)

February 4, 2015. South Africa lost out on 23 billion rand ($2 billion) in coal export revenues last year due to a drop in prices for the commodity, the mines minister Ngoako Ramatlhodi said. South Africa needs investment of 100 billion rand to develop its coal resources in the "short-to-medium" term to expand production and improve infrastructure, Ngoako Ramatlhodi said. Glencore's South African coal unit, Optimum Coal Mines, warned it may close some of its mines and reduce annual production by at least 5 million tonnes and leading to job losses. Coal is South Africa's chief source of energy, accounting for 95 percent of electricity generation, 70 percent of primary energy and 30 percent of petroleum liquid fuels. State power utility Eskom, the main buyer of domestic coal, has been implementing rolling blackouts this year as it struggles to meet electricity demand after decades of underinvestment in new generating capacity. (www.reuters.com)

 [RENEWABLE ENERGY / CLIMATE CHANGE TRENDS]

February 10, 2015. Developing nations should be given extra international aid to deal with the looming problems of climate change and not be forced to dip into the traditional aid they receive for development as they strive to meet the next set of UN development goals, India has said at the United Nations (UN). Amit Narang, a counsellor at India's UN mission, said that the burden of broader sustainable development goals for the period after this year would require more aid if developing nations are to attain them. With the target period of the Millennium Development Goals (MDG) set by world leaders in 2000 ending this year, the UN is crafting a Post-2015 development agenda, which is to emphasise sustainable development. Noting the increased responsibilities developing countries face to ensure sustainable development taking into account climate change and environmental issues, he expressed concern over the present practice of double counting of climate finance with development aid. He said that one of the reasons for the shortcomings in reaching MDG was "an excessive reliance on donor-recipient framework to the detriment of systemic issues for boosting growth." (zeenews.india.com)

February 10, 2015. The Maharashtra government is seeking to reduce the power tariff for industrial users by lowering the burden they need to take on to help the state supply cheap electricity to farmers. The plan is to give solar water pumps to farmers and reduce their dependence on conventional energy. Chief Minister Devendra Fadnavis' cabinet is expected to approve a proposal to install 7,500 solar water pumps for farmers in Vidarbha and Gadchiroli as a first step. The government aims to give as many as 40 lakh pumps in five years. Maharashtra, which has one of the highest power tariffs for industrial consumers, hopes this will eventually help reduce the rates by close to 30 per cent. Maharashtra charges industrial consumers an average ` 8.50 a unit, while for commercial enterprises it is ` 11. Over the past, this high rate of power being charged in the state has had many industries relocating to other states, mainly Gujarat and Chhattisgarh, where power tariffs are lower. The cost of power in Maharashtra is high because industry high because industries have to bear a part of the subsidy that the state government offers to farmers. While the per-unit cost of supplying power is ` 5, a farmer pays just ` 1. The state government pays the Maharashtra State Electricity Distribution Company ` 1.8 as direct subsidy. Industries are levied an extra ` 2.3 a unit to reduce the burden on the utility. The government move to remove the cross-subsidy burden comes after representations from numerous industrialists who have complained about the high power rates in the state. The tariff reduction for industries would not materialise immediately and would depend on the success of the programme. The state government is also pinning its hopes on the auction of coal mines to help further reduce the cost of producing power. The state feels that it could cut the cost substantially if it gets mines close to coal-fired power plants. (economictimes.indiatimes.com)

February 9, 2015. Wind energy sector company Gamesa has signed up with Independent Power Producer Greenko for 300 MW additional wind power capacity generation. With a combined portfolio of 600 MW with Greenko, Gamesa has fortified its position in the wind turbine manufacturer space in India. This order will see Gamesa use its specially designed low wind turbines, the G97-2.0 MW - T-104, with extended hub height capable of capturing more energy from the available low wind sites in India. Out of the 300 MW agreement, the first phase of 160 MW is already underway and the project is expected to be commissioned by June 2015. As per the agreement, during this period, Gamesa will supply, erect and commission 80 of the company’s G97-2.0 MW - T-104m wind turbines at Jaisalmer region in Rajasthan and Basavana Bagewadi in Karnataka. The second phase of 140 MW is expected to be secured by April 2015 wherein Gamesa will supply 70 of its G97-2.0MW – T-104 turbines for sites in Karnataka and Andhra Pradesh. This project is expected to be commissioned by September 2015. Gamesa has signed a total of 600 MW with Greenko till date and this agreement cements the partnership between the two companies. Of the earlier contract covering 300 MW, Greenko has 160 MW of operation wind capacity in Karnataka and Andhra Pradesh, and another 140 MW is under various stages of development. (www.thehindubusinessline.com)

February 9, 2015. Adani Enterprises Ltd signed a pact with the Rajasthan government to develop the country's largest solar park in the state with 10,000 MW capacity over the next 10 years at an estimated investment of about ` 40,000 crore. The company will set up solar power project of 5000 MW on its own in the next five years. The Adani Group will also develop solar manufacturing units and power evacuation systems. The solar park will produce clean and green energy of about 16,644 million units, furthering India's goals for clean, renewable energy independence. The government has announced setting of 1 lakh MW solar capacity by 2022. It has also issued guidelines for setting up at least 25 solar parks each with a capacity of 500 MW and above across India. (zeenews.india.com)

February 9, 2015. Claro Energy, a leading solar water pumping solution provider, has received $2 million (` 12.4 crore) credit facility from RBL Bank to ramp up its solar pumping business. Of the total amount, $1 million is a direct line of credit to meet working capital needs and another $1 million is a commitment from the Bank towards direct farmer financing for the company's solar water pumps, it said. As MNRE (Ministry of New and Renewable Energy) expands the solar pump programme across the country, millions of farmers are going to benefit from solar irrigation, Claro Energy said. Claro Energy currently operates in different states across the country and has installed solar pumps for drinking water, irrigation, purification and aquaculture applications. (economictimes.indiatimes.com)

February 9, 2015. The energy needs of the occupants of 100 beds--including air conditioners--will be met by the sun at Holy Family Hospital, a missionary nursing home in Okhla. The hospital is likely to be the first private or non-government building in Delhi to have a large solar rooftop system, generating 300kW. Interestingly, the hospital is not entitled to any government subsidy on solar power and is yet set to make big savings on its total energy cost. Instead of using China-made panels that have flooded the market, the hospital staff chose German panels which, they say, have a longer life and require little maintenance. The Holy Family Hospital has 350 beds, nine operation theatres and five intensive care units--it has 200 air conditioners apart from over a thousand electrical lights and other appliances. Its total energy needs are close to 900kW. To avoid the steep initial cost of installing such a huge rooftop solar panel system, the hospital signed a 20 year agreement with the German company. Under the power purchase agreement, the company installs, operates and maintains solar panels on their rooftop and the hospital pays for the power generated and provides space for the panels. The power purchase agreement model is usually feasible only for large establishments. As part of a government pilot project about 15 years ago, a small rooftop solar power system was installed at the same hospital. (economictimes.indiatimes.com)

February 9, 2015. Inox Wind has received a 166 MW contract from Green Infra, a company promoted by IDFC PE Fund, to set up projects in Gujarat, Madhya Pradesh and Rajasthan in the sector where the government has restored tax benefits to promote clean energy. Inox Wind, part of the $2 billion (` 12,400 crore) Inox group that has interests in multixplexes, cryogenic technology refrigerants and industrial gases, is a subsidiary of Gujarat Fluorochemicals. Under the contract, the company will develop and construct the projects on a turnkey basis, supply 83 units of 2 MW wind turbine generators and undertake long-term operations and maintenance, Inox Wind said. The projects are likely to be commissioned in phases by December. The government's thrust on renewable sector has boosted investor sentiment and attracted several companies to wind and solar power generation. Companies like Suzlon are counting on revival of the sector while the Adani group recently announced a $4 billion investment in the renewable energy sector along with US firm SunEdison, a leading player in photovoltaic equipment. According to ratings agency ICRA, capacity addition in wind energy is likely to increase 10% to 2,200-2,300 MW during the current financial year. Inox Wind also plans to expand operations and is in the process of setting up an integrated wind turbine manufacturing facility in Madhya Pradesh at an investment of about ` 250 crore, director of Inox Wind added. The company will manufacture 800 MW of nacelles and hubs, 800 MW of blades and 600 MW of towers at the new facility which is likely to be commissioned in phases over the next year. Earlier, it was awarded two wind-farm project contracts of 54 MW and 118 MW in Gujarat and Rajasthan by Tata Power Renewable Energy, a wholly-owned subsidiary of Tata Power. (economictimes.indiatimes.com)

February 9, 2015. The Odisha government plans to add aggregate clean energy capacity of 1,000 MW by establishing 3 to 4 solar parks in the state by 2020. The target, fixed by the state government in its draft Odisha Solar Park Policy, 2014, primarily aims at facilitating accelerated deployment of solar energy in the state to support sustainable development and address the climate change issues. The draft policy will be implemented in two models namely - Green Energy Development Corporation of Odisha (GEDCOL) model and private developer model. In the first model, GEDCOL, a 100 per cent subsidiary of Odisha Hydro Power Corporation, will be the nodal agency for implementation of solar parks. GEDCOL may also partner with Solar Energy Corporation of India (SECI) for this purpose. The solar parks must have a minimum capacity of 100 MW in the first model. However, there is no maximum capacity limit for the solar parks in the policy. In the GEDCOL model, GEDCOL will develop the solar parks where it will be responsible for infrastructural facilities like approach roads, boundary wall, water, auxiliary power, power evacuation facility while in the case of private developer model, the onus will lie on the private developer. The project developers and manufacturers setting up projects in the solar parks will get a VAT exemption on various solar energy equipment. (www.business-standard.com)

February 6, 2015. India could start installing 20,000 MW of solar power capacity as early as April after companies pledged to support the government's drive for clean energy. Details of the plan, which has drawn commitments from U.S., German and Chinese companies, will be announced, the Ministry of New and Renewable Energy (MNRE) said. Foreign companies will be allowed to decide where they manufacture the required equipment, MNRE said. The rapidly falling cost of solar power, which is expected to reach parity with conventional energy by 2017, has ignited interest in its potential in India. Prime Minister Narendra Modi has looked to industry for help in funding what could be a $100 billion expansion in clean energy. For its part, the government will have to find the land required to build the solar panels on. Modi aims to make India one of the world's largest renewable energy markets, targeting 100,000 MW of output by 2022 from just 3,000 MW currently. One megawatt can power roughly 1,000 U.S. homes although this varies widely, depending on the amount of heating or cooling needed, for example. Despite more than 300 days of sunshine a year, India relies on coal for three-fifths of its energy needs while solar supplies less than 1 percent. U.S.-based First Solar and SunEdison Inc, Canadian Solar and China's JA Solar are among the companies keen to expand into India. Yet analysts say India's target will be difficult to reach given the weak finances of electricity distribution companies that would buy in solar energy and the slow pace at which land for plants is made available. (in.reuters.com)

February 5, 2015. India has the potential to emerge as a global leader towards clean energy and tackling climate change, French Foreign Minister Laurent Fabius said. He said India's need for growth could be reconciled with a sustainable model of development. Speaking at the inaugural session of 15^th Delhi Sustainable Development Summit (DSDS), Fabius said "no doubt that India will play a leading role in this effort (dealing with climate change)" under the leadership of Prime Minister Narendra Modi. Over the past 14 years, the DSDS has been serving as an annual platform to discuss issues of sustainability and relevant policy interventions to ensure a sustainable future. (www.newkerala.com)

February 5, 2015. North Eastern Electric Power Corporation (NEEPCO) has commissioned a 5 MW solar power plant at Monarchak in Tripura, which will be the biggest and the first of its kind in northeast India. The solar power plant was commissioned at a cost of ` 40 crore. The entire power from the plant would be transmitted to the Tripura power grid. NEEPCO will set up a 50 MW solar power plant in Madhya Pradesh and a 2 MW plant in Lanka in Nagaon district of Assam. (zeenews.india.com)

February 4, 2015. Brakes India Ltd, part of the TVS group, has formed a joint venture with US-based SunEdison for solar power. The venture’s 7.72 MW Tamil Nadu solar plant, commissioned, will supply power to Brakes India. Such a structure, better known as ‘group captive model’, is common in the wind industry, but new in solar. The ‘group captive model’, where private power companies and power purchasers set up joint ventures that will own the power plant is common in Tamil Nadu. This is because such alliances have one major advantage: the State does not levy the ‘cross subsidy surcharge’ on the power sold. ‘Cross subsidy surcharges’ are levied on third party sales of power so as to make the buyers to defray for the subsidised power that Governments give to the poor and the underprivileged. While many States have waived the cross subsidy surcharge on wind and solar in order to encourage renewable energy installations, Tamil Nadu charges ₹ 3.46 per kWhr. On the other hand, if Brakes India had owned the solar plant, it could have got ‘accelerated depreciation’, a tax-saving sop that allows a renewable energy company to write off 80 per cent of the plant cost in the first year as ‘depreciation’, which would result in lower taxable profits. A unique feature of the plant is that it is fitted with trackers, so that the panels always face the sun. Trackers typically raise the cost of a plant by 12 per cent, but result in 15-18 per cent more generation. SunEdison has assured Brakes India 1.81 million units per MW of generation. (www.thehindubusinessline.com)

February 10, 2015. California is rushing to expand its use of solar power to meet the renewable energy requirements, and a 550 MW solar project was dedicated in the Riverside County desert. The plant is expected to produce enough power for about 160,000 homes. California has been steadily expanding its use of solar power to meet the state's renewable energy standards, while testing the balance between wilderness conservation and the pursuit of renewable energy. The plant uses photovoltaic panels and will be built on 3,800 acres of federal land owned by NextEra Energy Resources, GE Energy Financial Services and Sumitomo Corp. of Americas. The California Energy Commission says First Solar is building and operating the plant. Gov. Jerry Brown has called on the state to increase renewable electricity use to 50 percent by 2030. The current state goal calls for 33 percent of energy use to come from renewable sources by 2020. (www.elp.com)

February 9, 2015. Israel's Brenmiller Energy said it will build a 300 million shekel ($77.27 million) solar power field using an energy storage technology that will generate electricity for about 20 hours a day. The 10 MW field, to be built on about 110 acres in the desert town of Dimona in southern Israel, will combine existing solar thermal technology with an underground system that stores heat for use at night. Brenmiller Energy said it hopes to complete the field in early 2017, and will then sell electricity through the grid. During the four hours of the day that solar energy is insufficient, the company said it will use biomass to produce power. The company already has a working proof-of-concept for the storage system. Brenmiller Energy will fund the 10 MW project itself, in part to help promote the system to clients worldwide. (www.reuters.com)

February 9, 2015. The European Union (EU) said it expects India and other emerging economies to contribute to the Green Climate Fund after 2020, stating that 'geopolitical realities have changed significantly'. India, as part of Like Minded Group of Developing Countries (LMDC) and BASIC (Brazil, South Africa, India and China), has long resisted that all parties be treated similarly post-2020 - a position that defies the principle of Common But Differentiated Responsibilities (CBDR) which, India argues, is the basic principle of United Nations Framework Convention on Climate Change (UNFCCC). India - as part of LMDC and BASIC group - argues that the focus on a mitigation-centric text will neglect issues of adaptation, technology transfer and financing incumbent on the developed nations, which again is a contravention of the convention. South Africa, speaking on behalf of G-77 plus China, and supported by BASIC, LMDC and other groups of small nations, warned that "any attempt to re-negotiate, re-write or re-define" the basic principles of the UNFCCC would delay the process of reaching the Paris agreement. (www.business-standard.com)

February 9, 2015. Yingli Green Energy Holding Company Limited has announced that its wholly-owned subsidiary, Yingli Green Energy Singapore Company Pte. Limited, has supplied one of East Malaysia's first solar power plants, a one megawatt solar farm located in the state of Sabah on the island of Borneo. The facility was commissioned this February after passing its initial operation date (IOD) and receiving a license to export power throughout Borneo in 2014. The project was developed by Cahaya Metro Sdn. Bhd., a leading solar energy company in East Malaysia. (www.pennenergy.com)

February 9, 2015. Germany boosted its wind and solar capacity by a further 10% in 2014, adding a combined 6,800 MW of newly installed wind turbines and solar panels, putting further downward pressure on power prices, which already dropped to their lowest level in over ten years, a Platts analysis shows. Total installed solar and wind capacity including offshore now stands at 77,400 MW in Germany. German wind power developers installed a total of 4,750 MW of new onshore wind capacity in 2014, 58% more than in 2013 and the biggest annual gain on record, according to the annual report by wind lobby BWE. Overall, capacity gains from so-called "repowering" or upgrading older units with more powerful turbines were 1,148 MW. Repowering is exempt from the new annual caps for onshore wind power set at 2,500 MW/year in reform of the renewable energy law last year. For 2015, the BWE therefore expects another significant increase of up to 4,000 MW. Offshore wind capacity in Germany has also reached the 1 GW mark as new installations in the North and Baltic Sea more than doubled in 2014. According to the annual statistic compiled by Deutsche Windguard, 529 MW came online in 2014, bringing total offshore wind capacity to 1,049 MW. A further 1,218 MW capacity were fully completed in 2014 and are just awaiting grid connection with a number of other projects also in advanced construction phase. The BWE estimates that by the end of 2015, a total of 3,000 MW installed offshore wind capacity will be online. (www.platts.com)

February 9, 2015. Norway’s Scatec Solar has selected Swinerton Renewable Energy as the main EPC contractor to build a 104MWp PV power plant in Utah. The company will build and then provide operations and maintenance services for the Utah Red Hills Renewable Park, which is due to be completed later this year. The 104 MW project forms part of an ambitious international project drive by Scatec Solar, under which it hopes to build 750 MW of projects by 2016. (www.pv-tech.org)

February 5, 2015. Marubeni Corp. will build two offshore wind farms with a combined capacity of 145 MW in the northern prefecture of Akita, the local government said. The Tokyo-based trading company will build a 65 MW station near the Akita port and a 80 MW farm near the Noshiro port. The projects will begin operations as early as 2021. Japan is promoting clean energy such as wind and solar through an incentive program introduced in July 2012. To boost offshore wind, the government set a separate tariff last year for the technology higher than the rate for onshore wind. (www.bloomberg.com)

February 4, 2015. Shell Foundation, an independent charity set up by Anglo-Dutch energy group Shell, plans to allocate about half of its $150 million deployable funds in India's clean energy sector over the next five years. The foundation may not invest the funds directly into projects but in for-profit companies or financial institutes, which will in turn invest in solutions to make cheap energy options accessible in rural and urban poor areas. The charity is also looking to pump money into organisations that are into providing finance for small and medium enterprises (SMEs) or give loans or subsidies that can be used as working capital by energy startups. Over the next five years, the foundation plans to invest $20-30 million annually in the global energy sector. Its focus, though, will essentially be India and Africa. The foundation is also looking at establishing public-private partnerships with the Indian government in the clean energy sector directly or through the companies that it has invested in. (economictimes.indiatimes.com)

 

 

 

 

 

 

 

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