Energy News Monitor | Volume XI; Issue 8

[Sub-Prime Crisis in the Indian Power Sector]

                             “While the objective of providing universal access to electricity cannot be questioned, it creates problems as it is forced to ride on a defunct system. The Centre provides capital subsidy for erection of infrastructure through schemes such as the Rajiv Gandhi Rural Electrification programme, but the electricity itself has to come from SEBs. …”

 

 

NEWS BRIEF

[NATIONAL: OIL & GAS]

August 5, 2014. Cairn India is likely to get a 10-year extension for its license to explore and produce oil and gas from the prolific Rajasthan block but may have to pay more profit petroleum to the government to get a term beyond 2020. A Committee headed by the Directorate General of Hydrocarbons (DGH) on policy for grant of extension to the Production Sharing Contracts (PSC) for small, medium-sized and discovered fields that were awarded to private firms in 1990s, has recommended a uniform 10-year extension but on revised terms and conditions. The panel has recommended that contracts may be extended for 10 years for both oil and gas fields or the balance economic life of the field, whichever is earlier, but with revised terms and conditions. The current PSCs provide for a 5-year extension in case of an oil field and 10 years in case of gas discoveries. It recommended a minimum 50 per cent government share of profit petroleum from small fields and 60 per cent in case of medium-sized fields. At present, the government's profit petroleum ranges from 25 to 60 per cent. In case of Cairn's Rajasthan block, it is 50 per cent. Cairn's Rajasthan block is not among fields for which the Committee has recommended the extension policy but the same principals are likely to be used for it as well. Cairn block has been kept out of this policy as unlike other discovered fields like Panna/Mukta and Tapti and Ravva, Oil and Natural Gas Corp (ONGC) is the licensee of the Rajasthan block. ONGC holds 30 per cent interest in Rajasthan block and is also the licensee. As per terms of the Rajasthan PSC, the block is to return to the licensee after expiry of the term. Also, ONGC becomes the owner of all facilities once its cost is recovered from sale of crude oil. (economictimes.indiatimes.com)

August 3, 2014. After rejecting Reliance Industries' gas finds, upstream regulator Directorate General of Hydrocarbons (DGH) has refused to recognise three gas discoveries of Oil and Natural Gas Corp (ONGC) for not doing its prescribed conformity tests. The Directorate General of Hydrocarbons (DGH) has not approved Declaration of Commerciality (DoC) for three out of the 11 discoveries ONGC has made in its Krishna Godavari block KG-DWN-98/2 (KG-D5) in Bay of Bengal. ONGC proposes to develop these finds in three clusters - combining finds D and E in KG-D5 block with discovery in neighbouring G-4 block as Cluster-I and developing all other finds except ultra deepsea UD-1 discovery as Cluster-II. The UD-1 find is to be developed as Cluster-III. (economictimes.indiatimes.com)

July 31, 2014. Oil & Natural Gas Corp (ONGC) and Oil India Ltd (OIL) have submitted a joint bid worth about $1.5 billion to buy a stake in Murphy Oil Corp's Malaysian oil and gas assets. Arkansas-based Murphy, which has interests in oil and gas fields in Malaysia, Vietnam, Indonesia, Brunei and Australia, has invited bids for a 30 percent stake in its Malaysian assets. If successful, ONGC will own a 20 percent stake in the assets, while Oil India would own the remaining 10 percent. The bid value is below $1.5 billion, but the joint bid is preliminary and the final deal value may change depending on rival bids. India's state explorers including ONGC have been looking overseas as they struggle to boost the country's energy security and arrest decline from local gas fields. In June last year ONGC together with Oil India acquired a 10-percent stake in a deepwater gas field in Mozambique's Rovuma basin for $2.5 billion. In August ONGC agreed to buy another 10-percent stake in the field from Anadarko Petroleum. Malaysia is the biggest part of Murphy's Asian portfolio, accounting for more than 45 percent of its total 2012 net production. Murphy's net oil and gas production from Malaysia was about 86,000 barrels of oil equivalent per day in 2013, with total proved reserves of 125 million barrels of oil and 406 billion cubic feet of gas. (in.reuters.com)

 

 

August 4, 2014. India refines more oil than the domestic requirement and the government seeks to develop the country as a refinery hub. Petroleum Minister Dharmendra Pradhan said domestic requirement is 160 million metric tonnes (mmt), while India refines 215 mmt. He said it helps the country earn foreign exchange. Pradhan said the country also seeks to fulfil the need of SAARC countries and other developing economies. He said while some Gulf countries produce crude, they lack refining capacity. This, he said, has led to a situation where crude is cheaper while refined product is costly in those countries. The Minister was responding to a supplementary question on country reaching a saturation point in refined oil production. He said while several companies have applied for refinery in the private sector, Essar and Reliance have been contributing to the country's refinery production. The refinery sector was delicenced in June, 1998 and a refinery can be set up anywhere in India by a private or public sector company depending on its techno-commercial viability. India has exported petroleum products to the tune of ` 3,68,279 crore during 2013-14. (economictimes.indiatimes.com)

August 1, 2014. Indian Oil Corp (IOC) will set up two new plants in the state besides doubling the capacity of its plants in Haridwar and Haldwani. The Corporation will double the current capacity of its Haldwani and Haridwar plants from 5,000 tonnes to 10000 tonnes and will also set up two new plants in the state, IOC said. The IOC will also set up two new plants in Uttarakhand, one each in Dehradun and Kotdwar to meet the state's LPG requirements. IOC has a capacity of only 10,000 tonnes of LPG per month against the state's total requirement of 16,000 tonnes of LPG per month. (economictimes.indiatimes.com)

July 31, 2014. Ruia-owned Essar Group is looking at raising over $3.5 bn by selling stake in the refinery business. Essar Group is said to be in talks with two Chinese oil & gas majors for the deal. UK based Stanlow Refinery which is Essar Group's prized asset will be monetised in the transaction. The deal could be in several phases and will require restructuring of Essar Group's energy business. First step is already underway with both U.K- listed Essar Energy and India-based Essar Oil heading for a de-listing. Essar Energy is expected to sell its Stanlow Refinery to Essar Oil for $1 bn, post the de-listing process is complete. The restructured Essar Oil with Stanlow Refinery unit under it is expected to sell 49% stake in the company to the interested buyer. Company is expecting an Enterprise Value of $7.5 bn. (economictimes.indiatimes.com)

July 31, 2014. India's oil sector grew at the highest pace since January 2013, helped by a spurt in fuel demand due to better performance of the automobiles sector and higher use of diesel by farmers who used pumps in the absence of rain, power deficit and higher vehicular movement. Diesel sales had been declining since the middle of last year but demand picked up in the last two months even though the fuel's price has risen by ` 10.70 per litre since January last year. Prices have increased in small doses of 50 paise per month. Another routine diesel price increase is expected that would cut revenue losses on the fuel to about ` 1.50 per litre, providing an opportunity to the government to deregulate the fuel. Oil companies may also slash petrol prices by more than ` 1 a litre. Rising price of diesel had initially impacted its sales, but its demand started growing gradually with the economic recovery since May. Diesel demand rose because of growth in port traffic by 3.3% last month, mainly at all major ports except Kolkata, Chennai and Cochin. The resumption of the mining activities and increased cargo movement in Goa during 2014-15 have improved the consumption of petroleum products. (economictimes.indiatimes.com)

July 31, 2014. India's Bharat Oman Refineries Ltd (BORL) has postponed a maintenance plan for its Bina refinery in central India, likely to be the first quarter of 2015 from this year, Bharat Petroleum Corp Ltd (BPCL) said. BORL is majority owned by BPCL, with Oman Oil Co holding a small stake in the 120,000 barrels per day (bpd) refinery. The Bina refinery has only one crude distillation unit (CDU), and the month-long maintenance, which involves shutting the entire plant including secondary units, was initially planned for September this year. (economictimes.indiatimes.com)

August 5, 2014. Keen to set up a 'gas grid' in the country, government is working on the Jagdishpur-Haldia gas pipeline and termed it as the first ever gas corridor in the Hindi heartland. It said once the pipeline is completed, it will not only help fertiliser plants but will also provide fuel to steel mills. Chemicals and Fertilisers Minister Ananth Kumar said that the proposed pipeline will help fertiliser plants in Gorakhpur (UP), Sindhri (Jharkhand), Barauni (Bihar), Durgapur and Haldia (both West Bengal). He said the Budget speech of the Finance Minister also has a reference to the 'gas grid' and it is an important vision of the Modi government. (economictimes.indiatimes.com)

August 4, 2014. India agreed to build a pipeline from Bihar to Kathmandu for supply of petrol, diesel and ATF. Prime Minister Narendra Modi signalled India's willingness to build the ` 200-crore pipeline to supply fuel during his visit to Himalayan nation, the first by an Indian Prime Minister in 17 years. Nepal is dependent on India for meeting all of its fuel requirement. Petrol, diesel, domestic LPG and jet fuel (ATF) are currently trucked from Indian Oil Corp's (IOC) depot at Raxaul in Bihar to Nepal. In 2006, a 41-km pipeline from Raxaul to Amlekhgunj in Nepal was proposed for transportation of the fuel. The pipeline was to be funded 50:50 by Indian Oil Corp (IOC) and Nepal Oil Corp (NOC). The project, however, never took off as Nepal refused to fund its share of cost. IOC in the meanwhile has decided to shift its oil storage depot from Raxaul to Motihari and the pipeline origin point too may have to be shifted to Motihari. Motihari- Amlekhgunj pipeline will be about 81-kms long and cost ` 200 crore. IOC said the pipeline will now be built by the company. (economictimes.indiatimes.com)

July 30, 2014. GAIL India Ltd has decided to buy from Indian shipbuilder’s a third of the LNG ships for ferrying gas from the US. GAIL wants 9 ships to ferry liquefied natural gas (LNG) it has contracted from US producers to India. The previous Oil Secretary Vivek Rae saw the GAIL's chunky contract as an opportunity to push the case for domestic LNG shipbuilding and pushed the company to include Indian shipbuilders, who currently don't have the technology, in the tender. After Rae, the current Oil Secretary Saurabh Chandra nudged GAIL to reserve a part of the USD 7.6 billion contract for Indian shippers so that global majors transfer LNG shipbuilding technology to India. Initially, GAIL resisted saying it will be a time consuming process, but when the ministry mulled issue a Presidential directive it backed down. GAIL decided to give Indian shipbuilders six years to deliver the ships as opposed to two-and-half-year deadline for foreign firms. GAIL had been for past 6-7 months resisting the inclusion of domestic ship makers in the tender on grounds that Indian shipyards would need at least six years and huge finances to develop the capability to build cryogenic LNG carriers. The Ministry was of the view that GAIL should promote domestic industry and mulled issuing a Presidential directive - an order in the name of the President who is the owner of public sector companies. In October 2004, a Presidential Directive was issued to GAIL following which it cancelled a ` 1,400 crore tender for supply of pipes and issue a fresh one incorporating new terms that including more suppliers. GAIL said it has signed long term agreements with the US based Cheniere Energy Partner and Dominion Resources for transportation of 5.8 million tonnes per annum of LNG from Sabine Pass and Cove Point terminals. It plans to charter newly built ships to transport this gas to India. (economictimes.indiatimes.com)

August 5, 2014. Essar Projects said it has bagged a $ 54 million (over ` 328 crore) maiden contract from Saudi Arabian national oil company Saudi Aramco. The scope of work entails engineering, procurement and construction of a crude tank, replacement of crude pumps and associated civil, piping, electrical and instrumentation facilities. The project is scheduled to be completed in 29 months. The Hydrocarbon SBU of Essar Projects, a global engineering, procurement, construction (EPC) contractor, has secured the contract from Saudi Aramco. The company is already executing five other projects in the region in the hydrocarbon sector. The company has experience in refinery projects having previously executed a world-scale grass-roots refinery at Vadinar, Gujarat, with an initial capacity of 10 million tons per annum, which was gradually expanded to 14 million tons and then 20 million tons. (economictimes.indiatimes.com)

August 4, 2014. Diesel, the nation's most consumed fuel, is headed for full deregulation by Diwali. After the government raised diesel prices by 50 paise, under-recoveries — the difference between cost price and selling price — on every litre of diesel sold has now reduced to just ` 1.33. And if the international crude prices and rupee-dollar exchange rate remain stable, the losses will be completely wiped out by October-end. Diesel currently retails at ` 66.63 per litre in Mumbai and ` 50.40 in Delhi. (economictimes.indiatimes.com)

August 4, 2014. The government wants to usher in a new gas-pricing regime that will balance conflicting interests of producers and consumers and rule out conflicts with gas producers without diluting the stand it has taken in disputes in gas-related matters. The oil ministry has recently discussed merits of setting the price roughly mid-way between the existing $4.2 per unit and the rate of $8.4 calculated by the Rangarajan formula that the UPA's Cabinet had approved, but not implemented because the Elections Commission did not allow it during the poll campaign. The government is also keeping in mind the stand it has taken on gaspricing issues in the dispute with Reliance Industries. The oil ministry, under UPA's Jaipal Reddy and Veerappa Moily as well as NDA's Dharmendra Pradhan, has consistently taken the stand that it must penalise RIL for the fall in gas production at the KG-D6 block. RIL says output fell because of geological reasons and that its contract does not provide for such penalty. However, since the oil ministry feels that gas production declined because the company did not drill more wells as suggested by the director general of hydrocarbons, it is not keen to let RIL charge higher rates unless the company produces the amount of gas that it was expected to produce according to the field development plan for the producing fields of the KG-D6 block. The government is also considering specifying the gas price formula in the contract of oil and gas blocks it plans to auction with simplified revenue-sharing terms, which will avoid disputes. Discussions are on in several ministries such as oil, power, fertiliser and finance to resolve the vexed gas pricing issues as the Cabinet had set the deadline of September 30, the government said. (economictimes.indiatimes.com)

August 3, 2014. The oil ministry is looking at a price of US $ 6-6.5 for all domestic natural gas but wants Reliance Industries Ltd (RIL) to sell KG-D6 gas at old rate of US $ 4.2 till it makes up for shortfall in supplies of past four years. The ministry internally discussed tweaking the formula suggested by the C Rangarajan Committee to bring down the proposed increase from US $ 8.4-8.8 per million British thermal unit to US $ 6-6.5, a rate that will be affordable to most consumers and also incentivise exploration. The new rate, the ministry believes, would be acceptable to the international investors and would help in monetising discoveries of Gujarat State Petroleum Corp (GPSC) in Deendayal Block in Bay of Bengal as well as those of RIL in Cauvery (CY-D5), KG-D6 (R-Series) and Mahanadi (NEC-25) block, which are not viable at current US $ 4.2 per mmBtu rate. The new price will be applicable in case of RIL's KG-D6 block only after shortfall in gas production of last four years (about 1.9 trillion cubic feet) is delivered at old price. For subsequent production (about 2.5 Tcf), the new price will apply. (economictimes.indiatimes.com)

August 2, 2014. The Narendra Modi government hopes to save ` 3,500 crore in oil subsidies by persuading 1 crore affluent customers to voluntarily pay market rates for cooking gas in response to text messages to customers inviting them to opt out of the subsidy for the sake of 'nation building'. The subsidy cut is significant as it amounts to half the annual net profit of Indian Oil Corp (IOC), the country's largest refining and marketing firm. It will also help oil companies expand cooking gas supply to rural areas, which would give the government political mileage, reduce pollution in rural kitchens, which causes many diseases, and also help control deforestation by reducing the need for firewood. Oil firm say the list of customers opting out of subsidy would publicly expose the rich and powerful who want to hang on to benefits meant for the poor and ignore text messages saying: 'Give up your LPG subsidy and be part of nation-building movement to provide subsidised cooking fuel only to needy'. This is the second stage of the campaign, in which many executives of state oil firms have started buying cooking gas at market rates, or about 450 more than the subsidised rates. The scheme would soon be launched for the public through portals, which do not involve cumbersome paper work. In the past one month, nearly 2,000 consumers have opted out of the subsidy net, saving over 1 crore per annum. (economictimes.indiatimes.com)

August 1, 2014. The Government said it has not taken a final decision on the issue yet. The previous UPA government had decided to price all domestic gas from April 1, 2014 according to a formula suggested by the Rangarajan Committee. The formula was notified but before a new rate could be announced, General Elections were declared and the issue was left for the new government to decide. The new government decided to defer the implementation till September-end to hold wider consultations. The Rangarajan formula would lead to doubling of natural gas prices to $ 8.4 per million British thermal unit, an increase that would jack up urea production cost, electricity tariff and CNG rates. Finance Minister Arun Jaitley said the previous Government had taken a decision to price natural gas based on the Rangarajan Committee Report. (economictimes.indiatimes.com)

August 1, 2014. Petrol became cheaper by ` 1.09 per litre in Delhi after state oil companies slashed the price of the fuel for the first time since mid-April because benchmark gasoline rates in the international market dropped. Companies, however, raised the price of diesel by 56 paise in Delhi, helping to reduce the gap between pump and market rates by about ` 1.50 per litre and increasing the prospects of deregulating the fuel soon. If the trend continues, diesel pricing could be freed from state control in three months. Prices of diesel sold to bulk consumers such as the railways and state transport companies at market rates have been reduced, IOC said. LPG sold at market prices also became cheaper. The selling price of domestic non-subsidised LPG was cut by ` 2.50 for a 14.2 kg cylinder and that of commercial LPG by ` 4 for a 19 kg cylinder at Delhi, with corresponding decreases in other states, IOC said. (economictimes.indiatimes.com)

August 1, 2014. Oil Minister Dharmendra Pradhan told state-run oil firms to improve refining margins and manage petrol pumps better to withstand competition from the private sector. The price gap between the administered and market price of diesel has narrowed significantly, setting the stage for a competitive market in a few months. Petrol is already sold at market rates. In 2002, when state firms faced private competition, Reliance and Essar competed fiercely to grab 17% of the market in three years but subsidised sales by government companies from 2005 eliminated private competition. Pradhan is concerned that the average refining margin of state firms — Indian Oil Corporation (IOC), Bharat Petroleum Corp Ltd (BPCL) and Hindustan Petroleum Corp Ltd (HPCL) — is barely $4 per barrel, about half that of private refiners.  Global energy giant BP, which has already invested more than $8 billion in India, is preparing to storm the Indian fuel retailing market when state controls are gradually withdrawn. (economictimes.indiatimes.com)

July 31, 2014. Indian Oil Corp (IOC) will get ` 8,107 crore from upstream firms in fuel subsidy support for the first quarter while Hindustan Petroleum Corp Ltd (HPCL) will get ` 3,608.88 crore. The Oil Ministry has fixed the subsidy payout by upstream firms like Oil and Natural Gas Corp (ONGC) and Oil India Ltd at ` 15,546.65 crore for the April-June quarter. Of this, ONGC will pay ` 13,200.10 crore and another ` 1,846.55 crore will come from OIL. State gas utility GAIL will pay ` 500 crore. Fuel retailers IOC, HPCL and Bharat Petroleum Corp Ltd (BPCL) sell diesel, domestic LPG and kerosene at government controlled rates which are way below the cost. The losses they incur is compensated through a combination of government cash subsidy and support from upstream firms. (economictimes.indiatimes.com)

 [NATIONAL: POWER]

August 5, 2014. Private power firms, which put up a united front to combat fuel scarcity, policy uncertainty and procedural hurdles, are now a divided lot with some corporate leaders such as Naveen Jindal and Anil Agarwal breaking away from the Association of Power Producers (APP) which has many prominent members such as Anil Ambani's Reliance Power and Tata Power. The association had taken the lead in persuading the government to act after investment worth thousands of crores of rupees was at risk due to a vast range of problems facing the sector. But now, Jindal Steel & Power Ltd, Agarwal's Sterlite Industries and Sandeep Jajodia-owned Monnet Ispat and others have floated a new association known as the Domestic Coal Based Power Producers Association and are withdrawing from the APP. (economictimes.indiatimes.com)

August 4, 2014. The first unit of the 1000 MW power project of the Neyveli Lignite Corporation (NLC) Tamilnadu Power Ltd - joint venture of TANGEDCO and NLC - is expected to be commissioned this month, Coal and Power Minister Piyush Goyal said. The cost of the project is estimated to be ` 6,602.74 crore. The 500 MW Thermal Power Station-II expansion project, with an approved cost of ` 3,027.59 crore, is nearing completion, he said. At present, NLC operates four lignite based power stations with a total capacity of 2,740 MW. (economictimes.indiatimes.com)

August 4, 2014. Maharashtra State Power Generating Company (Mahagenco) has temporarily shut down five of its 210 MW coal-fired power generation units due to fuel shortage. The power generation capacity of the five units — 1,050 MW — make up for about 12% of the total power generation capacity of Mahagenco, which is the country’s second largest power generator after NTPC. Maharashtra gets bulk of its coal supplies for power generation from Odisha. Mahagenco’s other plants coal stocks are also running low. (www.financialexpress.com)

August 3, 2014. Essar Power expects to commission the second 600 MW unit of the Mahan I project this fiscal, taking its overall installed generation capacity to over 4,500 MW. The private power utility, part of the diversified Essar Group, has an installed generation capacity of 3,910 MW. Essar Energy said that about 1,800 MW capacity is being set up. The 1,200 MW Mahan I plant is located in Madhya Pradesh and the first unit was commissioned in April 2013. Once the plant becomes fully operational, the company's total generation capacity would cross 4,500 MW. (economictimes.indiatimes.com)

August 1, 2014. Bharat Heavy Electricals Ltd (BHEL) has commissioned the fifth 68 MW unit of the Rampur hydro power project in Himachal Pradesh. The project is located on Satluj river. BHEL's scope of work in the project includes supply, erection and commissioning of six 68 MW Francis turbines, among others. Nine hydro sets totalling 641 MW were commissioned by BHEL in 2013-14 period. The company is currently executing hydel projects having about 5,000 MW generation capacity. (economictimes.indiatimes.com)

August 1, 2014. The 1,500-MW Nathpa Jhakri Hydro power station of Satluj Jal Vidyut Nigam (SJVN) has achieved highest ever power generation of 1,191.217 million units (MU) of electricity against the MoU target of 1,083 million units in July 2014. The earlier highest record was 1,186.5 million units achieved during July, 2012. During July, 2014 the power station operated at over 1,600 MW during all the 31 days of the month against the installed capacity of 1,500 MW. (economictimes.indiatimes.com)

July 30, 2014. The Adani Group is in advanced stages of negotiations with Indiabulls Power to buy out its 1,350 MW Amravati Thermal Power Project. What makes Amravati power project attractive for the Gautam Adani-led group is that its phase one has been completed with two operational units of 270 MW each. Indiabulls will eventually exit power business as it has only two projects, one in Amravati and the other in Nashik. The deal is likely to further consolidate Adani Group's position as India's largest private sector power producer with a capacity of about 10,000 MW. The group, with a capacity of 8,620 MW, plans to more than double its generation to over 20,000 MW in the next five years. (economictimes.indiatimes.com)

July 30, 2014. India and Russia held major consultation in the realm of nuclear research away from the public eye ahead of Prime Minister Narendra Modi's meeting with President Vladimir Putin in Brazil in July. Nuclear energy was a key element at Modi-Putin talks. Both countries are discussing to set up Russian assisted 22 nuclear power projects in India. Last month a scientific forum was held at the Joint Institute for Nuclear Research (JINR) in the Russian city of Dubna with support from both the governments. The aim of the forum were to strengthen the existing co-operation further as well as explore the possibility of stronger ties between scientific research centers of India and JINR in the fields of fundamental theoretical and experimental physics. (economictimes.indiatimes.com)

August 5, 2014. State run power producer NTPC said it has inked an agreement with Assam Power Distribution Company for selling 75 MW of electricity to the state. The power will be supplied to Assam from NTPC's Farakka Super Thermal Power Station Stage-III. At present, Assam Power Distribution Company Ltd (APDCL) is allocated 190 MW power from unallocated capacity of NTPC stations Farakka Stage-I, II and III, Kahalgaon Stage-I and II and Talcher Stage-I. APDCL will also be provided with 381 MW from the under- construction Bongaigaon Thermal Power Project of NTPC. (economictimes.indiatimes.com)

August 5, 2014. Inadequacies in the power transmission network and delays in commissioning of projects may not only lead to revenue loss for PowerGrid Corp, but may also result in congestion in evacuation of power, the Comptroller and Auditor General of India (CAG) has said. The CAG has said that creating lines of capacities higher than required, or abnormal redundancies in transmission assets, may result in extra financial burden for state power distribution companies, or discoms, and the public at large. The CAG had undertaken an audit of PowerGrid Corp of India Ltd and its grid management arm, Power System Operation Corp Ltd (POSOCO), to assess the effectiveness of their planning and implementation of transmission projects between 2007 and 2012. (economictimes.indiatimes.com)

August 4, 2014. India and Nepal are likely to firm up an agreement on power trading soon amid Prime Minister Narendra Modi's emphasis that cooperation in this sector will be beneficial to both countries. The 'Power Trade Agreement (PTA)', a framework pact, is ready and a draft has been given to India. This draft will go through various approvals including from the Cabinet after which the pact could be signed. A parliamentary panel in Nepal had asked the government to sign the PTA with India as soon as possible to open the door of economic prosperity for the country suffering from long power outages. (zeenews.india.com)

August 1, 2014. Several parts of north Delhi faced power cuts due to technical snags in the 400-KV transmission network in Mandaula Grid station. The areas that were affected were Azadpur, Model Town, Indira Vihar, Tripolia, Shakti Nagar and Gopal Pur. However, Tata Power Delhi Distribution Limited (TPDDL) managed to restore most of the power supply within 20 to 60 minutes of the interruption due to back feeding and alternate supply source, TPDDL said. (economictimes.indiatimes.com)

July 31, 2014. Tamil Nadu Chief Minister Jayalalithaa made a series of announcements covering Energy, Transport and Adi Dravidar welfare sectors running into several crores of rupees. As part of her government's efforts to ensure uninterrupted power supply and develop the infrastructure for the purpose, 60 sub-stations and 2500 km of high voltage power transmission corridor will be set up at a cost of ` 5284 crore in the current financial year, she said. Two sub-stations of 230 kv at an estimated ` 338.08 crore will be set up in Chennai--one each at West Mambalam and Porur. Jayalalithaa proposed modernisation and up-gradation of two of the existing units of Solayar Hydroelectric station in Coimbatore district at a cost of ` 120 crore. (economictimes.indiatimes.com)

July 31, 2014. Odisha needs investor participation in various distribution network strengthening schemes floated by the state government, energy minister Pranab Prakash Das said. The state has signed agreements with 29 companies to produce thermal power with generation capacity of nearly 37,000 Mw and also has entered into arrangement with various companies for supply of renewable energy (small hydro, solar and biomass power) with installation capacity of nearly 800 MW. Projects totalling thermal power capacity of 20,000 MW is under various stages of implementation as of now. So far, the state government has approved nine projects of around ` 11,000 crore for strengthening power transmission network. The energy department is working on disaster resilient transmission and distribution system in Ganjam district with a total project cost of ` 1,000 crore. It has requested Asian Development Bank (ADB) to lend ` 713 crore for the project. About ` 1450 crore will be spent on radial to ring conversion project in next three years, dedicated to minimise transmission loss. Other projects include strengthening of district headquarters power system with total investment of ` 200 crore and a smart grid project for entire state with ` 380 crore expenses in next three years. It has earmarked ` 4,400 crore to be spent in two projects for establishing transformers, substations and dedicated feeders for agriculture. (www.business-standard.com)

July 30, 2014. Siemens Limited has won a crucial turnkey order (design, engineering, commissioning and installation) from Power Grid Corporation of India Limited (PGCIL) worth approximately ` 411 crores. The order is for static var compensators (SVCs) for three of PGCIL’s substations - Ludhiana in Punjab, Kankroli in Rajasthan and New Wangpoh in Jammu & Kashmir. A static var compensator is a high-voltage system that dynamically controls the network voltage and keeps the network voltage constant. The order is for one of a series of SVC projects planned by Power Grid Corporation to improve grid stability across India. (www.business-standard.com)

July 30, 2014. Every night, about 30 tractors loaded with coal arrive at the edge of a forest in eastern India. A fleet of trucks, engines and lights switched off, is waiting to ferry the cargo to the country’s biggest black market for the fuel in Varanasi. Stolen coal from Coal India Ltd’s mines and other quarries may reach as much as 60 million metric tons a year, about 13 percent of the annual output for the world’s biggest producer, according to Kuntala Lahiri-Dutt, a senior fellow at Australian National University’s Crawford School in Canberra. It’s worth about $1.5 billion and is a small but growing part of the widespread energy theft that reduces India’s GDP by more than 1 percent a year. Newly elected Prime Minister Narendra Modi vowed during his campaign to curb coal theft, which has been part of his parliament constituency’s underground economy for decades. Now he must find a way to keep that promise as domestic shortages lead to record coal imports. Coal India’s annual output is about 463 million tons, which it sells for an average of about $25 a ton. The coal would be worth more on the international market, because the company sells it domestically at a discount. Power station coal in Australia, an Asian benchmark, costs about $70 a ton. India’s former coal minister Sriprakash Jaiswal estimated losses from theft at as much as 15 percent of the company’s production, in an October 2011 interview. A month later he told lawmakers in parliament the loss couldn’t be ascertained. Coal India and the federal government, which owns 89.7 percent of the company, say they haven’t estimated the quantity of coal stolen from the mines. The issue is becoming more pressing as rising demand leads to shortages. Years of operational inefficiency and delays in acquiring land and environmental approvals has left Coal India without new mines. The company’s Eastern Coalfields Ltd. unit closed 3,236 sites in Jharkhand and neighboring West Bengal states in the two years ended March 2013, according to its annual report, in part because of concerns that local residents were illegally mining coal at the sites. That’s driving up purchases from countries including Australia, Indonesia and South Africa. Imports of power-station coal may climb 7.4 percent to a record 145 million tons this year, said Andrew Cosgrove, a Princeton, New Jersey-based analyst. India paid about $158 billion for coal and crude oil imports in the year ended March 31, about 35 percent of the country’s total import bill for the year. The pilfered coal adds to losses from stolen diesel, gasoline and electricity. India loses about a quarter of its electricity through theft, according to government data, costing utilities almost ` 1.1 trillion ($18.3 billion) annually. That’s about 1 percent of India’s $1.88 trillion gross domestic product. (www.bloomberg.com)

July 30, 2014. Delhi Electricity Regulatory Commission (DERC) is in the process of finalizing new demand side management regulations, expected to help all three discoms-BYPL, BRPL and Tata Power Delhi -plan their power procurement more efficiently. The regulations will help in managing the load demands between high and low peak periods, and is aimed at reducing the discoms' overall power purchase costs. The electricity demand curve in Delhi has seen a shift in recent years. DERC said that its target for demand side management would be mostly consumers in the commercial and industrial categories. The regulations are expected to be finalized within a month. A public hearing for the demand side management regulations has already been held and suggestions given by stakeholders are being incorporated in the regulations as well. (economictimes.indiatimes.com)

August 5, 2014. Coal and Power Minister Piyush Goyal has directed state-owned Coal India Ltd (CIL) and its subsidiaries to submit an immediate action plan to augment their output by 150 million tonnes within a year. The minister assured all support to CIL in this regard. He also asked coal companies to draw the demand-supply graphs of coal after taking realistic inputs from the Central Electricity Authority. (economictimes.indiatimes.com)

August 5, 2014. The central government’s offer to Nepal of $1 billion in concessional loans to help build power plants and roads will be a big help to Indian infrastructure companies. Some of India’s biggest infra companies, such as GMR, Tata Power, Jindal Power and government-owned SJVN have already bid to set up projects in Nepal, which has the potential to develop 42,000 MW of hydro power, of which it has done only 600 MW. For the Indian companies, to raise funds for the hydro projects was a big obstacle, and with the new loan facility from the government, it will be much easier to set up projects there. Most of the power generated from these new projects is to be sold to power-starved North India. In recent years, the hydro power sector has emerged as an attractive sector for Indian investments. The government of Nepal has issued 28 survey licences for hydro power projects having generation capacity of 8,249 MW to Indian companies and joint ventures. Indian companies account for close to half of all foreign direct investment proposals approved in Nepal. (www.business-standard.com)

August 4, 2014. Twenty-two coal-based power plants monitored by Central Electricity Authority (CEA) were reeling under fuel shortages with stocks to last less than four days as of last week, Coal and Power Minister Piyush Goyal said. He said efforts were being made to supply adequate coal to critical power plants to maintain generation. As on July 29, 2014, the availability of coal in thermal power plants which are monitored by CEA is 9.88 million tonnes, the minister said. (www.business-standard.com)

August 4, 2014. The government has announced ten measures to improve the safety of workers in coal mines. Minister of State for Power, Coal and New and Renewable Energy Piyush Goyal said that the safety measures are as follows: (i) To promote and propagate safety awareness in mines, National Safety Awards (Mines) and National Conference on Safety in Mines are organized by DGMS. The recommendations of National Conference on Safety in Mines are being implemented to enhance safety of mine workers. (ii) Workers participation and sensitization in matters of safety are ensured through training in safety and by initiatives like celebration of safety week and safety campaigns, etc. (iii) Safety training programmes are organized among Managers and Supervisors for improving safety standards in mines. (iv) Risk assessment techniques are being introduced which aim to eliminate, control and manage the personal risks in mines. (v) Standard operating procedures are established to avoid unsafe practices in mines. (vi) A special safety awareness campaign has been launched to increase awareness of mine workers. i.e., 'Safety is My Responsibility' and steps have been taken to propagate this to each miner. (vii) Other safety measures initiated recently:

• Special training programme for safety officers and other key mining official directly engaged in ensuing safety at mines by SIMTARS, Australia accredited trainers.

• Several R and D projects on safety have also been initiated.

• Spreading knowledge and coal mine safety information through publication of quarterly safety bulleting.

(viii) Internal safety organizations of coal companies regularly visit the mines for assessing the safety status and advise the management for corrective steps required if any. (ix) Coal companies also conduct safety audits through engaging experts in mine safety and take appropriate corrective measures for improving safety in mines. (x) Standing Committee on Safety in Coal Mines under the Chairmanship of Minister of Coal periodically reviews the status of safety in coal mines in the country and issues are addressed for ensuring safety of persons deployed in coal mines. (www.dnaindia.com)

 

 

August 3, 2014. The policy on utilisation of surplus coal from captive mines is likely by the next month. The development comes amid reports of sale of surplus coal by some private parties in open market against norms of captive coal block use. The government will "finalise policies of surplus coal" by "September, 2014". Policy would be approved after detailed consultations among ministries. The coal ministry has begun consultations with other ministries on the policy, two-and-a-half years after the proposal was shelved by the office then Prime Minister Manmohan Singh. The government had earlier said that it has prepared a draft policy on utilisation of surplus coal from captive mines and was awaiting comments from various departments. As per the Coal Mines (Nationalisation) Act, 1973, there is no provision of sale of coal from the coal blocks allotted for captive use. The modalities of disposal of surplus coal would be as per prevailing policy and could also include handing over such coal to the local Coal India subsidiary or to any person designated by it at a transfer price to be determined by the government, the government had said. The Power Ministry has said that any excess fuel mined by the private firms from captive blocks should be returned to Coal India. Tata Power had sought government approval for using surplus coal from the Mandakini coal mine for its Maithon thermal power project (Jharkhand) that is facing coal shortage. (economictimes.indiatimes.com)

August 2, 2014. The Central Bureau of Investigation (CBI) registered a case against former Union minister Prem Chand Gupta, a close aide of RJD chief Lalu Prasad, and his son for allegedly falsifying records in getting a coal block in Maharashtra. The case was registered against Gupta, at present a Rajya Sabha member, and his son Gaurav after the Central Vigilance Commission agreed with the CBI that a case was made out. This is the 24^th FIR registered by the probe agency in connection with the coal block allocation scam, being monitored by the Supreme Court. The allegation is that the company had allegedly falsified records submitted to the government that it had spent ` 100 crore on power plants, but a close scrutiny of the papers showed that only ` 80 crore had been spent. The company allegedly falsified the records to meet the basic requirements for getting a coal block. (www.deccanherald.com)

August 1, 2014. The Delhi government has formally moved a proposal to the Centre for reassigning the capital's share in several public sector generating units. Apart from surrendering Delhi's 750 MW share in the Aravali super-thermal power plant in Jhajjar, the government has moved to surrender power from three units of Badarpur plant for winter and Tata Power Delhi's share in Dadri plant. (economictimes.indiatimes.com)

August 1, 2014. Reliance Power has initiated early stage discussions with Temasek Holdings, the Singapore government-owned investment firm, to raise up to $500 million and tie up funding for the three Jaypee Group hydroelectric power assets that it's acquiring. A clutch of other marquee global pension and infrastructure focused funds have also been tapped as RPower begins to firm up its funding strategy for the ` 12,300-crore ($2 billion) acquisition - the biggest in the domestic power sector as well as for the entire group. Other than Temasek, Reliance is also in discussions with Canadian pension fund giant PSP Investments and homegrown PE firm IDFC Alternatives, part of infrastructure finance company IDFC, for equity funding, added the people cited above. Reliance Power in talks with Temasek Holdings and PSP Investments to fund Jaypee Group deal Both had joined Abu Dhabi's TAQA as 49% financial investors in a consortium that had agreed to buy the same hydro assets in March. Reliance Group plans to raise ` 9,500 crore debt on the back of cash flows of the Jaypee assets that have already touched ` 800 crore in FY14. (economictimes.indiatimes.com)

August 1, 2014. Cooperation between India and the United States (US) in nuclear energy, shale gas, electricity and renewable power will be high on the agenda during Prime Minister Narendra Modi's visit to the US in September, the government said. US Secretary of State John Kerry, who landed in India for the India-US Strategic Dialogue ahead of Modi's visit to the US, also has energy issues on his agenda. Power, coal and renewable energy minister Piyush Goyal said there was a lot of scope for energy cooperation. (economictimes.indiatimes.com)

 

July 31, 2014. Private power generation and distribution company CESC Ltd has appointed Boston Consulting Group (BCG) to sharpen its focus in the sector. The RP-Sanjiv Goenka Group flagship, which is mainly into thermal power generation, recently ventured into the renewable power sector. It is now seeking advice on the power generation mode it should focus on. CESC produces 1,225 MW from four coal-based thermal power stations in West Bengal. Its expansion projects include a 600-MW power plant at Haldia, which is scheduled to be commissioned in October. The company has recently commissioned a 300-MW unit under its subsidiary Dhariwal Infrastructure Ltd at Chandrapur in Maharashtra. Another 300 MW is slated to start generation soon. According to group Chairman Sanjiv Goenka said the purpose of the study is not to find out whether CESC should shift away from thermal power, its main business, but to decide its investment plans weighing the opportunities in other energy sectors as well. Apart from Haldia and Chandrapur, CESC has long-standing proposals to set up new power projects, including a 1,320-MW station at Denkanal in Odisha and a 2,000-MW station at Bhagalpur in Bihar. However, these are stuck due to lack of government clearances and fuel sources. (economictimes.indiatimes.com)

July 31, 2014. The government said there is no "concrete" proposal for setting up of an equity fund or asset reconstruction firm for stressed power projects although the issue has been discussed with banks. Financial Services Secretary G S Sandhu had said that there was a proposal to create an asset reconstruction company (ARC) where some of these banks and the power companies can join hands and can set up a company that would revive incomplete projects and hand it over back to the promoter after revival. Power and Coal Minister Piyush Goyal said that the government has taken various steps including expeditiously resolving issues relating to environmental and forest clearances for power projects under implementation. The government also accelerated generation capacity addition during 12^th Plan with a proposed target of 88,537 MW from conventional sources and about 30,000 MW from renewable energy sources. (economictimes.indiatimes.com)

July 30, 2014. The Indo-US nuclear deal has led to generation of 1840 MW nuclear power from imported fuel for the country's reactors, the government said. Jitendra Singh, Minister of State for Department of Atomic Energy said India has entered into agreements/MOUs in atomic energy sector with USA, France,Russia, Mongolia, Namibia, Argentina, UK, Canada, South Korea, Kazakhstan and Czech Republic. The government response comes admits growing criticism that India has not been taking advantage of the Indo-US Nuclear Deal signed between the two countries in 2008, a landmark agreement that helped seek waiver from the Nuclear Supplier Group (NSG) to engage in nuclear trade and import much required fuel. (economictimes.indiatimes.com)

July 30, 2014. In a good news for Delhi, the government said electricity bills of 84% of households in the capital will come down immediately even as it promised better infrastructure, more hospitals and educational institutions to make it a 'world class city'. Finance Minister Arun Jaitley, however, gave no indication about end to the central rule in Delhi and merely said a political solution would have to be found to the stalemate with either some party forming the government or fresh elections being held. Talking about the provisions of the ` 36,776 crore Delhi budget which included ` 260 crore towards power subsidy, Jaitley said the provisions made the central and the city's budget would reduce the electricity bills. In the central budget, ` 700 crore has been provided for power and water reforms. Referring to the power problems witnessed in Delhi recently, Jaitley said it was because of the weak distribution infrastructure even though the availability was sufficient. (www.business-standard.com)

July 30, 2014. Leading audit and financial advisory firms, including Ernst & Young, KPMG, Deloitte and PricewaterhouseCoopers, are in talks with Reliance Power to get the "financial due diligence programme management" and "merger integration advisory" mandate from the Anil Ambani group to support it in its acquisition of three hydroelectric power plants from Jaypee Power Ventures Ltd. The advisory deal, which is to the tune of ` 10 crore, is expected to be one of the largest in this sector. Reliance Power piped its competitors to acquire the entire hydroelectric portfolio of the Jaypee group, which included the 300 MW Baspa Stage 2 in Himachal Pradesh, the 1,091 MW Karcham Wangtoo plant in HP and 400 MW Vishnuprayag plant in Uttarakhand. The total portfolio that is being acquired will add in 1,800 MW of additional capacity for Reliance Power. The company already has about 5,000 MW of hydroelectric power assets in various parts of the country. (www.business-standard.com)

July 30, 2014. The proposed hike in industrial power tarrifs in Uttar Pradesh would spur migration of Small and Medium Enterprises (SMEs) to the neighbouring state of Uttarakhand, Indian Industries Association (IIA) has said. According to IIA, the proposed hike was ostensibly merely 7-10%, however in effect it would result in 25-30% increase in power tariffs for industry. The state government had allowed such conversion for UP State Industrial Development Corporation (UPSIDC) plots, which had been on lease for 30 or more years. However, industry wants freehold conversion to all plots irrespective of the 30 year barrier. IIA wants adequate police security for industrial enclaves, as the incidents of looting of entrepreneurs had become routine. Meanwhile, IIA is planning to organise its annual conclave in October 2014. (www.business-standard.com)

 [INTERNATIONAL: OIL & GAS]

August 5, 2014. Scientific understanding of the effects of hydraulic fracturing and other methods of extracting natural gas from shale rock has not kept pace with the rapid expansion of the industry in North America, leaving researchers with a limited grasp of what drilling could be doing to wildlife and plants, the study said. The study in the peer-reviewed journal “Frontiers in Ecology” involved several U.S. and Canadian conservation biologists and organizations, and was led by British Columbia's Simon Fraser University. “Biotic Impacts of Energy Development From Shale: Research Priorities and Knowledge Gaps” said shale development can contaminate surface and groundwater, cause localized pollution and ultimately emit greenhouse gases that lead to climate change. But the study's major conclusion is that more research is needed to understand specific potential environmental dangers of shale gas exploration and cumulative biological affects of rapid shale development in some areas. (www.bloomberg.com)

August 5, 2014. Oil explorers in Iraq’s Kurdistan region slumped in Oslo and London after Islamic militants seized two oilfields in Northern Iraq. DNO International ASA, which gets most of its output from the Kurdish region, fell as much as 11 percent, the biggest drop in more than six months. The Ain Zala and Batma oilfields, which together produce about 30,000 barrels a day, are under the control of the Islamic State, a breakaway al-Qaeda group, according to the Northern Oil Co. The Sunni Islamist militants occupied the Qayyara oilfield north of Baghdad. (www.bloomberg.com)

August 4, 2014. The Camisea Consortium, led by Argentine energy company Pluspetrol, said it plans to invest $500 million in the next two years to explore and develop natural gas block 88 in southern Peru. Blocks 88 and 56, both managed by the Camisea Consortium, hold some 13 trillion cubic feet of proven natural gas reserves, according to data from the energy and mines ministry. (www.rigzone.com)

August 1, 2014. As Exxon Mobil Corp and Royal Dutch Shell Plc, the world’s largest oil companies, bet on increasing production from Russia, smaller rivals are boosting crude supplies by exiting foreign fields to focus on booming U.S. wells. ConocoPhillips, Occidental Petroleum Corp and Apache Corp reported rising second-quarter output as they divest international assets. Nationwide, U.S. oil production is at a 25-year high because of advanced drilling techniques that cracked petroleum-rich shale formations. Exxon is searching Russia’s Arctic seas for crude as part of a global effort by the Irving, Texas-based company to halt a trend of declining output. Sanctions against Russian interests threaten to frustrate international efforts to tap the Russian oil bonanza. The U.S. and European Union said they would restrict the export of technologies for energy production to Russia, which holds an estimated $8 trillion worth of crude underground. Shell is monitoring the situation in Russia after the downing of a Malaysian airliner escalated tensions over the country’s involvement in Ukraine. The Anglo-Dutch company, which Deutsche Bank AG estimates has about $6.7 billion of oil and gas-producing assets in Russia, is working with OAO Gazprom on the expansion of the Sakhalin 2 LNG project. It’s also exploring for oil with OAO Gazprom Neft in Siberia. Exxon is forging ahead with plans to drill an exploratory well in Russia’s Kara Sea this year, using a North Atlantic Drilling Ltd rig under contract for $535,000 a day. The company also recently finished constructing the largest offshore oil platform in Russia as part of a partnership with OAO Rosneft. ConocoPhillips reported output from continuing operations rose to the equivalent of 1.556 million barrels of oil a day from 1.51 million a year earlier. The Houston-based company is planning to boost output in emerging U.S. shale formations by more than 20 percent a year through 2017. (www.bloomberg.com)

August 1, 2014. A Norwegian drill rig owner is supplying Russian oil giant OAO Rosneft and Exxon Mobil Corp with the kind of high technology that will be barred under U.S. and European Union sanctions taking effect as soon as. Though the EU said it will deny export licenses for equipment intended for deep-water and arctic oil production, Rosneft’s six rig leases from Seadrill Ltd’s North Atlantic Drilling unit appear to thwart sanctions intended to block Russian oil companies from obtaining Western drilling expertise. Seadrill’s unit can proceed with the Rosneft contracts, worth $4.25 billion, because they were signed before the sanctions take effect. The drilling contracts show how the latest round of international sanctions may have only minimal impact on Russia’s oil industry, at least in the short-term. (www.bloomberg.com)

August 1, 2014. Italy's Eni, following its participation in the competitive International Bid Round launched by the Republic of the Union of Myanmar, signed in Nay Pyi Taw in presence of the Country’s Energy Ministry, two Production Sharing Contracts (PSC) for RSF-5 and PSC-K onshore blocks in Myanmar. Blocks RSF-5 covers an area of 499 square miles in the prolific Salin Basin about 310 miles north of Yangon, while block PSC-K covers an area of 2,352 square miles in the unexplored Pegu Yoma-Sittaung Basin, in the central part of Myanmar. The exploration period will last 6 years, subdivided in 3 phases. (www.rigzone.com)

July 31, 2014. BG Group Plc, the U.K. oil and gas explorer seeking a chief executive officer (CEO), posted a 23 percent jump in earnings after income from liquefied natural gas surged and production in Brazil increased. Profit excluding disposals and one-time items climbed to $1.2 billion from $986 million a year earlier, it said. That beat the $878.7 million average estimate of nine analysts surveyed. LNG operating profit rose 44 percent, BG said. Chris Finlayson resigned in April as CEO of the U.K.’s third-largest natural gas producer in “a dispute over the speed” of the company’s creation of value for shareholders, Executive Chairman Andrew Gould said. The company has since then accelerated asset sales, including a $953 million North Sea deal. In the hunt for a new CEO, Gould said he’s impressed by the quality of external candidates. (www.bloomberg.com)

July 30, 2014. Iraq’s semi-autonomous Kurds, sparring with the nation’s central government over their right to export crude, may almost double oil production next year and triple it this decade, Goldman Sachs Group Inc. said. The Kurdistan Regional Government (KRG) could bolster output to about 540,000 barrels a day by the end of 2015 if it can expand pipeline capacity and surmount marketing constraints, analysts including New York-based Head of Commodities Research Jeff Currie said in a report. The KRG and authorities in Baghdad have clashed over the Kurds’ attempts to sell oil independently, including over a tanker currently anchored off Galveston, Texas. Iraq will be the biggest source of new capacity this decade in the Organization of Petroleum Exporting Countries (OPEC), the group responsible for 40 percent of the world’s oil, according to the International Energy Agency. Brazil will the second-largest source of supply growth outside OPEC after North America, boosting output by 48 percent to 3.1 million barrels a day by 2019, the IEA predicts. (www.bloomberg.com)

 

 

July 30, 2014. Ireland finally found treasure at the end of the rainbow, or so it seemed in 2012. After drilling in the North Celtic Sea Basin, about 40 miles off the Cork coast, Providence Resources Plc (PRP) said its Barryroe oil field may hold as many as 1.6 billion barrels. The company’s shares surged, and the government hailed the first “significant” test of oil flows off Ireland for 12 years just as the nation’s debt-ravaged finances cried out for a boost. Two years later, Providence still hasn’t found a partner to develop Barryroe, production has been delayed and the company’s share price has dropped 84 percent. For Ireland, it’s turned into another stalled attempt to emulate the North Sea discoveries that transformed economies and are underpinning Scotland’s bid for independence. Since the exploration of Irish waters began in earnest, it’s been mostly futile. Esso, now part of Exxon Mobil Corp first discovered oil at Barryroe after drilling in 1973 and 1974, before deeming it not commercial. Almost 40 years later, in 2012, Providence said results from its appraisal well in 100 meters of water had far exceeded expectations, and improved technology and rising prices changed the game in terms of extracting the oil. (www.bloomberg.com)

August 5, 2014. The largest oil producer in Iraqi Kurdistan is confident that the region will maintain independent pipeline exports unimpeded by the violence and political turmoil engulfing the country. The Kurdistan Regional Government (KRG) has loaded five cargoes in Ceyhan, Turkey, and two have been sold and paid for, Julian Metherell, chief financial officer at Genel Energy Plc, said. One went to Singapore and one to Israel, he said. A third is docked off the U.S., where it’s the subject of a legal dispute with Iraq’s federal government. Genel, the London-based explorer led by former BP Plc Chief Executive Officer Tony Hayward, said that production rose to a record level in the first half and operations haven’t been affected by the fighting between Islamic militants and the Kurdish military known as Peshmerga. The company expects to export more than 20,000 barrels of oil a day through the pipeline in the second half of the year, about a third of its total production. A deal to supply gas to neighboring Turkey is expected to be signed this year and could eventually account for about half of the value of Genel Energy’s business in Kurdistan, Metherell said. The company is set to supply 10 billion cubic meters of gas a year to Turkey by 2017 and infrastructure construction for the project is expected begin at the end of the year. (www.bloomberg.com)

August 5, 2014. Triangle Petroleum Corp., an energy company backed by NGP Energy Capital Management LLC, has begun seeking an adviser for the sale of its oilfield-services business. Triangle is interviewing investment banks to manage the sale. It may also sell or spin off pipeline operator Caliber Midstream Partners LP after RockPile. Exploration companies have been selling or spinning off oilfield services and pipeline units to focus on oil and gas drilling. By focusing on exploration, they can fetch higher valuations than those involved in multiple businesses. Chesapeake Energy Corp. spun off its services company, Seventy Seven Energy Inc., in July. (www.bloomberg.com)

August 4, 2014. Japan's Hiroshima Gas Co said it has agreed to buy 50,000 to 130,000 tonnes per year of liquefied natural gas (LNG) from Osaka Gas for about 15 years from 2016. The supplies will be delivered on an ex-ship basis via LNG vessels chartered by Osaka Gas, Hiroshima Gas said. (www.downstreamtoday.com)

August 1, 2014. Blasts caused by leaked gas overnight in Taiwan’s biggest port city killed at least 24 people and injured about 271, in what local television described as the nation’s deadliest gas explosion. The blasts in Kaohsiung started just before midnight after reports of gas leaks began from 8:46 p.m., the National Fire Agency said. Four policemen and fire fighters are among the dead, it said in a text message sent. The causes of the explosions are still being investigated with initial assessments suggesting they followed a leak of propylene, a gas used to make plastics and fabrics, Taiwan’s Minister of Economic Affairs Chang Chia-juch said. The fires are under control. Kaohsiung resident Sydney Chen posted on his Facebook profile that he felt an explosion that resembled an earthquake before hearing screams from the street. His electricity was knocked out and he woke up his family to leave their home, according to the post. The blasts cut gas supplies to 23,600 households, power to 7,536 households and 8,000 homes were without water as of 9:30 a.m., according to the Taiwan Ministry of Economic Affairs. (www.bloomberg.com)

July 31, 2014. Escalating conflicts in Libya are thwarting a revival of oil output from Africa’s largest crude reserves after a yearlong blockade of eastern ports, just as Societe Generale SA and Barclays Plc predict rising demand. While the government said that traders could buy cargoes again from Es Sider and Ras Lanuf, the biggest blocked ports, neither has shipped anything. In Tripoli, the capital, fire-fighters are still battling a blaze at a fuel-storage depot caused by clashes between militias that have been struggling for political power in the three years since the ouster and killing of longtime leader Muammar Qaddafi. Brent crude futures have been trading as if supplies would be ample. Near-term contracts are priced at a discount to deliveries later in the year, a pattern known as contango, the longest stretch in four years. Societe General and Barclays are among the banks predicting the discounts won’t last, with accelerating global growth driving global oil demand by more than Libya produced in any year since 1979. (www.bloomberg.com)

July 30, 2014. Persian Gulf oil refineries are about to ship the largest amount of fuels such as gasoline to Asia in eight months, lists of shipping charters show. Traders hired ships in the spot market to load 3.91 million metric tons of refined petroleum in the four weeks to Aug. 10, according to vessel booking data. The tally, the highest since December, doesn’t capture shipments organized under long-term charters and shipbrokers don’t report all transactions. Middle East nations led by Saudi Arabia, the biggest crude exporter, are increasing their ability to refine the oil and profit from higher prices that processed fuels fetch. The region will add 815,000 barrels a day of capacity by the end of this year, according to estimates by Vienna-based analysts JBC Energy GmbH. That’s about as much as the industry’s largest product tankers normally transport. Ship-charters can be canceled in private or vessels can sail to destinations other than those reported. The data excluded any ship that was booked twice within a 45-day period, about how long a ship sailing to Japan and back from Saudi Arabia would take. Asia’s importance as a source of demand is rising because Russia is increasing fuel shipments to Europe and surging oil production in the U.S. has curbed the nation’s dependence on foreign energy. China’s gasoline demand rose 16 percent in June and consumption of middle distillates such as diesel advanced 6.9 percent, according to HSBC Holdings Plc. (www.bloomberg.com)

July 30, 2014. U.S. crude imports may drop from last week’s two-month high as prices on the Gulf Coast, home to 51 percent of refining capacity, slipped below Brent. Imports climbed 337,000 barrels a day in the week ended July 25, the Energy Information Administration (EIA) reported. Light Louisiana Sweet crude on the Gulf traded below Brent, benchmark for half of global oil trade, for a fourth day. LLS surged $4.52 a barrel above Brent on July 23, the biggest premium in one year, as strong refinery demand depleted crude inventories in the Gulf region. For the past year, the grade averaged $4.26 cheaper than Brent. Refineries slowed their operation last week amid rising fuel inventories. Crude imports rose to 7.74 million barrels a day last week, the highest level since May 23, the EIA, the Energy Department’s statistical arm, reported. Shipments to the Gulf Coast, known as PADD 3, climbed 383,000 to 3.81 million. Imports reached 6.47 million barrels a day in mid-May, the lowest level since 1997, as U.S. domestic production reduced dependence on foreign oil. Output reached the highest since 1986 as a combination of horizontal drilling and hydraulic fracturing, or fracking, unlocked supplies trapped in shale formations, including the Bakken in North Dakota and the Eagle Ford in Texas. (www.bloomberg.com)

August 5, 2014. Colorado’s compromise with drilling opponents has dealt a blow to environmentalists’ expanding battle to give local communities more control to limit fracking. Governor John Hickenlooper and Representative Jared Polis agreed to a deal that weakened the prospects for two proposed ballot initiatives aimed at restricting oil and gas activity. From Texas to North Dakota, companies are clashing with landowners and environmentalists over the local impact of expanded drilling in the U.S. as production has soared because of hydraulic fracturing, which uses sand, water and chemicals to free fossil fuels from shale rock. The Colorado vote had been seen as a bellwether for “local control” concerns and other potential ballot initiatives to restrict fracking, including one in Denton, Texas, expected to reach voters in November. Communities nationwide have passed 430 measures against fracking. The stakes are greater in Colorado compared with elsewhere due to the amount of oil production at risk and the statewide nature of any regulations approved by voters. The local control initiatives, if passed, would have “severely” impacted hydraulic fracturing in Weld County, the core of new drilling activity, according to the report from Sanford C. Bernstein & Co. (www.bloomberg.com)

August 4, 2014. Somalia expects to complete an assessment of its oil and gas potential this year as security gains in the battle against al-Qaeda militants enable foreign investors to return, President Hassan Sheikh Mohamoud said. Seismic studies are being conducted onshore and off the coast of the Horn of Africa nation. Companies including Royal Dutch Shell Plc, Exxon Mobil Corp and BP Plc are in talks with the government about returning to the country for the first time since war erupted in 1991, Sheikh Mohamoud said. While Somalia has no proven oil reserves, drillers are betting the country has a geology similar to that of Yemen, which lies across the Gulf of Aden and has 2.7 billion barrels of proven oil reserves. Somalia’s oil deposits may amount to as much as 110 billion barrels, according to the Mogadishu-based Heritage Institute for Policy Studies. Saudi Arabia, the world’s biggest oil exporter, has 266 billion barrels of proven reserves, BP data shows. (www.bloomberg.com)

August 4, 2014. Brazil's Petrobras will probably not meet its oil production target for 2014 because of continued delays in the startup of new offshore oil platforms, the government said. Petroleo Brasileiro SA, as Petrobras is formally known, had set a goal of increasing oil output in Brazil by 7.5 percent in 2014, plus or minus one percentage point, compared with 2013. If met, the target would be the company's biggest one-year rise in Brazilian oil output since at least 2006. Brazil produced an average of 2.06 million barrels a day of oil and related natural gas liquids in 2013, 3.11 percent less than in 2012. Brazilian output fell 2 percent in 2012. (www.rigzone.com)

August 2, 2014. Mexico’s Lower House passed the last package of bills to regulate an end to Petroleos Mexicanos’s state-oil monopoly, sending the legislation to the Senate for final approval after making minor changes on pension and retirement issues. Lawmakers modified the bill to make the age at which Pemex workers retire the same as it is for other federal employees. They also decided the company needs to have its pension funds audited, which, like the age requirement, is contingent on the government assuming some Pemex debt. Lower House committees had approved legislation to give Pemex and state utility Comision Federal de Electricidad the chance to transfer some of their pension liabilities to the government if they modified labor agreements. (www.bloomberg.com)

July 30, 2014. The latest European sanctions may thwart plans by OAO Rosneft, Russia’s largest oil producer, to boost sagging output by drilling offshore. New export licenses for energy-related equipment and technology will be denied if the products are destined for deep water, arctic or shale-oil projects in Russia, the European Union (EU) said. The EU agreed to the measures to force Russia to end its involvement in Ukraine following the July 17 downing of a Malaysian airliner over territory held by pro-Russian separatists. Rosneft also faces U.S. sanctions limiting its access to capital markets and travel by Chief Executive Officer Igor Sechin. Rosneft shareholders may welcome a halt in plans to invest in Russia’s offshore zones due to the high cost of extracting the oil resource. The limits on equipment may crimp Rosneft’s plans to drill as many as 40 exploration wells in Russia’s offshore areas with Exxon Mobil Corp, Eni SpA and Statoil ASA by the end of 2018, the company said. (www.bloomberg.com)

 

 

 

 

 

 [INTERNATIONAL: POWER]

August 5, 2014. The Alaska Energy Authority approved a $20 million loan for a 5 MW hydroelectric power plant in the southeast portion of the state. Haida Energy Inc., a joint venture of Haida Corp. and Alaska Power & Telephone Co, expects to complete the project on Prince of Wales Island by mid-2016, Alaska Energy Authority said. Total project costs are estimated at $28 million. The power plant will serve the communities of Craig, Klawock, Hollis, Hydaburg, Thorne Bay and Kasaan. (www.bloomberg.com)

August 1, 2014. U.S.-based power company AES Corp plans to invest at least $1 billion to double its existing electricity generation capacity in Mexico, and also intends to enter the country's new wholesale power market. The company expects to benefit from sweeping energy reform and grow beyond its three existing power plants, which generate a combined 1,050 MW. The company expects to invest at least $1 billion over the next three to five years to achieve the target. AES is active in power generation and distribution in 20 countries and had revenue of $15.9 billion last year. The company is also looking to enter a newly created wholesale power market in Mexico. (www.reuters.com)

August 1, 2014. Record production of hydropower from China’s Three Gorges and newer dams is displacing so much coal that rates to transport it have plunged to about record lows, roiling the shipping market. Daily earnings for Panamaxes, vessels that are about 750 feet long and get most of their spot cargoes from hauling coal, slumped as much as 76 percent this year, getting to within $26 of an all-time low. China started hydroelectric plants this year with enough generation to replace 26 million tons of coal, or about 370 cargoes. While global shipments of iron ore and grain are rising, China’s decreasing appetite for imported coal is a challenge to transporters already seeing weaker rates because of an oversupply of Panamaxes. The world’s second biggest economy’s efforts to curb air pollution will help cut imports of power-plant coal by 2.7 percent this year, according to Goldman Sachs Group Inc. China increased its hydroelectric capacity by 13 GW in the first half, according to the China National Energy Administration. That’s the biggest first-half expansion since at least 2009 and more than enough to power Hong Kong. China Three Gorges Corp., which built and operates the world’s largest hydropower project on the Yangtze river, completed two more dams this year which, as of July, had 20.3 GW of power-generating capacity. One gigawatt translates into about 2 million tons of coal a year. The largest of the two dams is the 286-meter-high Xiluodu project, a wall of concrete and steel spanning the Jinsha river on the border of Sichuan and Yunnan provinces in the country’s south. It’s is the second-biggest hydropower project in China, after Three Gorges. The other new dam is the Xiangjiaba, to the northeast on the Jinsha river. Seaborne imports of thermal coal in China will slide for the next four years, reaching 75 million metric tons by 2018, half the level of last year, Goldman Sachs said. Coal imports to India, Japan and South Korea will keep growing, it estimates. (www.bloomberg.com)

July 30, 2014. Nepal is gearing to ink a major power trade deal with India during the upcoming visit by Indian Prime Minister Narendra Modi. Three major political parties of Nepal - the Nepali Congress, CPN-UML and UCPN (Maoist) - consented to the government's plan to sign Power Trade Agreement (PTA) with India during Modi's visit. The meeting of senior leaders of major parties was called by Prime Minister Sushil Koirala to seek national consensus on the agenda to be discussed with the Indian Prime Minister during his two-day visit. The meeting formed a three-member cross-party panel to finalise the contents of the PTA to be forwarded to the Indian side for approval. The three-member panel includes Finance Minister Ram Sharan Mahat, CPN-UML leader Bhim Rawal and UCPN-Maoist leader Narayankaji Shrestha. The panel will finalise the text of the agreement with inputs from energy experts, according to Chiranjibi Nepal, Prime Minister's Economic Adviser. The new PTA will get inputs from the PTA proposal sent by Nepal to India in 2010 and the Power Cooperation Agreement recently forwarded by India recently. Former Energy Minister and senior leader of Rastriya Prajatantra Party (RPP) Prakash Chandra Lohani said that Nepal should implement the 17-year-old Pancheshwor Hydropower Project pact reached with India. During the three party meeting, Nepalese leaders also floated the idea of asking a middle-sized hydropower project from India as gift during Modi's visit. (economictimes.indiatimes.com)

July 30, 2014. Waste Management Inc. (WM), North America’s largest trash hauler, agreed to sell its Wheelabrator Technologies Inc. unit for $1.94 billion to reduce its exposure to electricity prices. The sale to Energy Capital Partners is subject to regulatory approval and is expected to be completed in late 2014, Houston-based Waste Management said. Waste Management is shedding the power-generation unit to reduce earnings volatility related to electricity prices and focus on hauling trash. It plans to use proceeds from the sale to repurchase shares and repay debt, which may increase 2015 earnings per share by 2 cents. Wheelabrator owns or operates 21 plants in the U.S. that process more than 7.5 million tons of waste and have a combined generating capacity of 853 MW. The business had about $845 million in sales last year. For comparison, Covanta Holding Corp, a waste-to-energy plant operator based in Morristown, New Jersey, supplies more than 1,500 MW of electricity from more than 40 plants in the U.S. and has a market capitalization of $2.68 billion. It had sales of $1.63 billion last year. (www.bloomberg.com)

August 5, 2014. The U.S. will invest as much as $498.2 million over five years to improve Ghana’s electricity network as part of an effort to spur private investment and help the West African nation become a regional energy hub. The Millennium Challenge Corp., an independent U.S. agency that focuses on foreign aid, will initially provide $308.2 million to upgrade generators and power lines, among other projects. It will make another $190 million available if Ghana meets certain targets, which the government corporation didn’t specify. Ghana plans to invest $37.4 million of its own funds in the power initiative, which Millennium Challenge said will help generate more than $4 billion in the nation’s energy sector. (www.bloomberg.com)

August 5, 2014. Kurdish security forces clashed with a breakaway al-Qaeda group that’s trying to extend its control in northern Iraq by seizing the country’s largest dam. Islamic State has seized territory throughout Iraq and Syria and declared its own self-styled caliphate, highlighting the central government’s inability to ensure security under Prime Minister Nouri al-Maliki. The group seized two oil fields and predominantly Kurdish towns in the north, forcing thousands to flee their homes, and has threatened another key dam at Haditha. The Mosul dam, about 50 kilometers northwest of the city that the militants captured in June, is a major supplier of electricity and water. Germany’s Hochtief AG helped build the dam on the Tigris River in the 1980s. If it collapsed or was sabotaged, it could flood Mosul and surrounding villages. The dam is still under government control, the state-run Commission for Dams, said. (www.bloomberg.com)

August 4, 2014. Pakistan Finance Minister Ishaq Dar gave guidelines to the ministry of water and power to include in the priority list of the power projects which are very important to get completed in next 3-4 years keeping in view the power deficit to be increased in the next 4 years. Mr Dar said that the projects should be prioritized in such a way that the future projected demand of electricity could be met leaving zero load shedding. He laid emphasis on improving energy mix to bring down generation price which will facilitate the people and industry. He stressed that instead of furnace oil based power projects focus should be on hydel and coal powered projects. He said that international investors including Chinese companies are interested in financing energy projects. (pakobserver.net)

August 1, 2014. The drenching El Nino rains that may replenish Brazil’s hydropower reservoirs will probably miss the nation’s most important dams, now at historic lows as the country endures its worst drought in eight decades. The weather phenomena that’s causing floods in Brazil’s south won’t travel far enough north to help refill reservoirs in Sao Paulo, Minas Gerais, Rio de Janeiro and Espirito Santo states, where 70 percent of Brazil’s hydropower capacity is located. The extended drought means Brazil’s government will probably be forced to continue using costly thermoelectric plants to help avoid blackouts. According to Jose Goldemberg, a professor at the University of Sao Paulo’s Institute of Energy and Environment, a third of the electricity consumed in Brazil currently is produced by thermoelectric plants. (www.bloomberg.com)

July 31, 2014. European power prices for next year are headed for the biggest monthly gains since September amid concern sanctions against Russia will boost the cost of coal and gas, raising production costs at utilities. The German 2015 contract, Europe’s benchmark, climbed 2.8 percent in July, broker data show. Respective advances for equivalent French and Nordic prices of 1.4 percent and 5.2 percent are also the largest in 10 months. German power for 2015 reached 36.15 euros ($48.82) a megawatt-hour, the highest level in more than four months, according to broker data. Coal for delivery to northwest Europe next year closed at a seven-week high of $80.50 a metric ton and was at $78.30, broker data showed. (www.bloomberg.com)

July 31, 2014. UK energy regulator Ofgem has proposed price control settlements for five electricity network companies over the next eight years. The new electricity distribution price controls, which will run from April 2015 to 2023, will see the companies investing £17bn to upgrade and maintain the UK's local electricity network. The existing price control is due to expire on 31 March 2015. Electricity distribution part of bill will decline by £12 on average and customer service standards are expected to increase as a result of the proposals, Ofgem said. Ofgem had returned five companies' proposals to them in November 2013 as they failed to deliver enough value for customers. The companies were UK Power Networks, Northern Power Grid, SP Energy Networks, SSE Power Distribution and Electricity North West. Western Power Distribution was the only firm which had its price control agreed last year after the regulator said its business plan offered enough value for customers. Ofgem said the new proposals will be under consultation for eight weeks with the final decisions planned in November 2014. (utilitiesnetwork.energy-business-review.com)

 [RENEWABLE ENERGY / CLIMATE CHANGE TRENDS]

August 5, 2014. The government is trying to address issues in the renewable energy sector by balancing all interests and ensuring that consumers get power at an affordable price, Minister of State for Power, Coal and New and Renewable Energy Piyush Goyal said. The minister said that the country's energy security concerns need to be addressed. According to the minister, the government is trying to balance all interests ensuring finally that consumer gets quality power at affordable price. The renewable energy sector is grappling with various issues. These include non-compliance by entities in following the renewable purchase obligations in the power sector. Various efforts are underway to boost the domestic renewable energy sector. Currently, India has an installed renewable power generation capacity of more than 31,600 MW. (economictimes.indiatimes.com)

August 5, 2014. Upbeat about the future prospects of the solar power sector, power and automation technologies maker ABB India Ltd is working on technology for remote monitoring of solar power plants in order to optimize output of electricity. The company is in talks with various players in the solar power sector and trying to understand their requirements. The company’s solar division that makes inverters, switch gears and provides operation and maintenance solutions for solar power units plans to focus on emerging roof-top solar power generation market as it sees big potential in it in the coming years. The engineering major also wants to cash in on its recently launched solar pump drives which have been re-engineered for India to meet requirements of uninterrupted and reliable power supply for the rural market and agricultural sector. With the union government allocating ` 400 crore for such solar pumps in the budget, the company sees a scope of 25 per cent rise in sales in 2014-15. With over 300 sunny days a year, the solar pump drives could help farmers maximise the benefits of solar power, while reducing dependency on the conventional grid power. (www.business-standard.com)

August 5, 2014. With government announcing the re-introduction of tax incentives for investors in wind energy, Suzlon Energy is confident of boosting its India business. The Pune-based turbine maker expects additional demand for 1,000 MW of wind energy installations in the Indian market that has been adding close to 2,000 MW of capacity annually. Suzlon is confident of bagging orders to the tune of 2,000-2,500 MW over a period of two years, said Suzlon chairman Tulsi Tanti. Suzlon has an order book of close to 5,000 MW to be executed by 2016-17 in India, Germany, Canada, Australia, France, UK and Belgium among others. Currently, Suzlon gets one fourth of its revenue from the Indian market while the rest comes from exports and international business. Tanti said with improved prospects in India, Suzlon may earn its onethird revenue from India. According to Tanti, the increased National Clean Energy cess will make a higher corpus available for investors in renewable energy. Also, he anticipated increased participation of corporate houses and public sector units in wind energy to meet targets for corporate social responsibility. (economictimes.indiatimes.com)

August 4, 2014. After finding some irregularities in earlier bidding process, the government said it has modified tender guidelines for projects awarded under the Jawaharlal Nehru National Solar Mission (JNNSM). An inter-ministerial committee, that was set up by the earlier government, to examine the irregularities in allocation of thermal power projects to companies under Phase I, Batch I of JNNSM has made certain suggestions. Minister of State for Power, Coal and New and Renewable Energy Piyush Goyal said that although it cannot be proved whether Lanco had acquired stake in seven companies, intension to do so cannot be ruled out as actions in acquiring low dividend compulsorily convertible preference shares are suggestions in that direction. Another matter flagged off by the committee was regarding non-availability of information and transparency from NTPC Vidyut Vyapar Nigam Ltd (NVVN). (economictimes.indiatimes.com)

August 4, 2014. D.S. Kulkarni Developers Ltd., an Indian real-estate company, plans to build 100 MW of solar capacity by 2019 to lock in rising electricity costs. The Pune-based company will invest ` 9 billion ($148 million) in the project, which will be built in Neemuch in central Madhya Pradesh state, Chairman and Managing Director D.S. Kulkarni said. Kulkarni expects to generate electricity at about ` 5.5 a kilowatt-hour on average during the 25-year lifetime of the project. That’s as little as half the commercial power tariff that the property developer pays now. The company has acquired 125 acres (505,857 square meters) of land and will begin construction on the first 24 MW this year, he said. (www.bloomberg.com)

August 4, 2014. The government said it has set a target of capacity addition of 29,800 MW of power from various renewable energy sources during 12^th Plan period. Minister of State for Power, Coal and New and Renewable Energy Piyush Goyal said that ` 19,113 crore has been provided for promotion and generation of renewable energy during the Twelfth Five-Year Plan period. The Minister said details of power generated from the renewable energy sources in public sector undertakings as well as in the private sector during 2012-13 and 2013-14 are 47.61 billion units and 53.22 billion units respectively. The Minister further stated that budget allocation for the years 2015-16 and 2016-17 will be done after approval of annual plans by the government and physical targets will be fixed accordingly. He said his ministry had prepared a strategic plan for New and Renewable Energy Sector in the year 2011 which has indicated a cumulative installed capacity of renewable power to about 72,000 MW by 2022. (economictimes.indiatimes.com)

August 3, 2014. Green Energy Development Corporation Limited (Gedcol), the nodal body appointed by the state government to generate renewable energy, has identified about 120 acre land at Manmunda in Boudh district for establishment of 20 MW solar power plant. The land has been allotted to Gedcol from the industrial park area earmarked by Odisha Industrial Infrastructure Development Corporation (Idco). The green energy firm, a Odisha Hydro Power Corporation (OHPC) subsidiary, has already floated a engineering, procurement and construction (EPC) tender for the project. Apart from the Boudh project, the agency is in the lookout for additional land in Koraput, Kantamal and Bolangir area for installing about 200 MW solar energy capacity. (www.business-standard.com)

 

August 1, 2014. A visiting US team has told Indian negotiators it would link pacts on the power sector to the agreement the two countries draw on climate change and one would not happen without the other. This message was conveyed by the US team to India in a meeting held with the power ministry. Power Minister Piyush Goyal and other ministry officials attended the meeting. The US team, headed by Todd Stern, the US special envoy on climate change, also called on Environment, Forests and Climate Change Minister Prakash Javadekar in its bid to stitch an agreement on various climate change issues. The meeting with the environment ministry focused on areas where the two countries could sign pacts for cooperation; these included air pollution abatement and developing baseline data on carbon emissions from forestry sector and smart grids. With the power ministry, the US asked for a better investment environment in India. The Indian side in return asked the US to suggest specific projects and areas where it would like to bring in technology. Energy efficiency and investing in smart cities are two areas of convergence that the delegations are expected to firm up deliverable projects on under Indo-US agreements. While India has conveyed that it was not ready to accept a binding target on energy efficiency in the building sector - a demand the US has made often at various forums - it is keen to work with the US on a programmes in the sector that do not force greenhouse gas emission reduction commitments. The trade dispute between the two countries about restrictions India imposes on imported solar power equipment was also part of the discussions. The US has taken India to the WTO dispute settlement mechanism on it. It was decided to also engage on the issue bilaterally even as the WTO mechanism takes its time to play out. The US delegation also put forth its views on the negotiations of the 2015 UN global agreement on climate change with Javadekar. The basic negotiating draft for this agreement is to be prepared by the end of 2014 with a series of high profile meetings scheduled across the world before that. The meeting with the minister was followed by the meeting of the Joint Working Group of the two countries on climate change, which had officials from various Indian ministries on board too. (www.business-standard.com)

July 31, 2014. Demand for Indian solar-energy credits rose to a four-month high in July after a power utility entered the market seeking to comply with government clean-energy targets. A total of 6,633 solar credits were sold on the nation’s two power exchanges, according to trader REConnect Energy Solutions Pvt. That’s the most since March. India requires state-run electricity distributors and large industrial companies including Coal India Ltd and Tata Power Co. to get as much as 10 percent of their energy from renewables. Those unable to get enough locally must purchase credits sold over power exchanges in monthly trading sessions. The solar credits cleared at their minimum price of 9,300 rupees ($154). Each credit represents 1 megawatt-hour of electricity fed into the grid. Wind, hydropower and biomass credits, which trade separately, sold at their floor price of ` 1,500. (www.bloomberg.com)

July 31, 2014. Plans are afoot to set up the country's largest ultra mega solar power plant (UMSPP) in Madhya Pradesh's Rewa district. The plant, to produce 700 MW of electricity, would require an investment of ` 4,000 crore, State's Additional Chief Secretary for New and Renewable Energy SR Mohanty said. The electricity from the plant would be available at ` 5.40 paise per unit, which would be the lowest in the country, Mohanty said. The state government would set up the plant as a joint venture with the Ministry of New and Renewable Energy, Power Grip Corporation and the Solar Energy Corporation of India, he said. The country's biggest solar plant with a capacity of 130 MW is situated in Neemuch district of the state. Minister of State for Renewable Energy Piyush Goyal said that the government is promoting generation of renewable energy by providing various fiscal and financial incentives such as capital and interest subsidy, concessional excise and customs duties to encourage Indian and foreign investors to invest in new renewable energy sector. (economictimes.indiatimes.com)

July 31, 2014. India is the fifth largest producer of wind energy with the sector alone constituting 68 per cent of the total renewable energy produced in the country, India's ambassador to the UAE T P Seetharam has said. Annual growth rate of renewable energy in India in the last decade has been about 22 per cent, said Seetharam, who was earlier this month appointed India's permanent representative to International Renewable Energy Agency (IRENA). India is one of the 21 members of the Abu Dhabi-based IRENA and the current vice-chairman of its council. Seetharam said hydropower, bio-energy and solar energy are other areas that have good potential and sharing experiences and international cooperation is the way forward to tap this potential. Further, he said that all these require huge investment. According to him, during the 12^th five-year plan, the projected investment into renewable is to be four times above the 11^th five-year plan. The 11^th five-year plan had projected an investment of ` 892 billion and for the current plan it has gone up to ` 3,186 billion. Seetharam said that renewable energy solutions are relevant to India as they can be generated in remote areas that are difficult to access from the central grid. Renewable energy allows you to produce energy where it is consumed even in remote areas where you can have wind, solar or biogas. India recently became the 19^th member to designate a permanent representative to IRENA, an intergovernmental organisation that supports countries in their transition to a sustainable energy future, and serves as the principal platform for international cooperation. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy in the pursuit of sustainable development. (economictimes.indiatimes.com)

July 31, 2014. A sustainable manufacturing policy for the solar panel industry could help save USD 42 billion in forex outgo by 2030, according to a KPMG report and the Indian Solar Manufacturers' Association (ISMA). Noting that about 100 GW of solar capacity would be established in the country by 2030, the KPMG report said. Currently, India imports more than US $ 30 billion of electronic goods, including solar panels, annually making it the fourth largest item in the import basket, contributing to 23 per cent of its trade deficit. The KPMG report said that the solar manufacturing industry has been facing challenging times because of various factors including lack of a level-playing field and various global factors. (economictimes.indiatimes.com)

July 30, 2014. Mytrah Energy said it will add 300 MW wind power to the existing 527 MW by the end of next year entailing ` 2,000 crore investment. The investment for additional power generation will be in the range of ` 2,000 crore which will be raised through internal sources, Mytrah said. Mytrah said renewable energy developers are paid less than what the coal-based power companies are paid. The growth will be much better if the government makes the price more remunerative. Mytrah said that by and large policies of Maharashtra, Rajasthan and Madhya Pradesh are good and Karnataka has a fantastic policy for wind energy. (economictimes.indiatimes.com)

August 5, 2014. Japan’s government is investigating whether solar power projects approved in fiscal 2013 are moving ahead as planned, signaling some of them may be canceled. In a previous investigation of projects approved in fiscal 2012, at least 165 were canceled or abandoned with some of them failing to secure land and equipment, the Ministry of Economy, Trade and Industry, said. As of the end of March this year, Japan had approved 65,726 MW of solar projects since July 2012. Of that, only 13 percent, or 8,715 MW, is operating, ministry data show. The ministry plans hearings for 22 projects and about another 330 have until the end of August to report on their status, he said, in reference to fiscal 2012 approvals. The ministry put in place a six-month deadline for solar projects to secure land and equipment for approvals beginning April 1. (www.bloomberg.com)

August 5, 2014. The most profitable unit of Industrias Metalurgicas Pescarmona SA, the Argentine wind power company that delayed its June debt service for a week, was declared bankrupt by a judge in Brazil. Pernambuco state judge Rafael Jose de Menezes declared Wind Power Energy in bankruptcy in response to requests from two creditors, Libra Terminal Valongo SA and Libra Terminais SA, which said the company hadn’t paid debts of 10.6 million reais ($4.7 million), according to the court. Mendoza, Argentina-based Impsa said it’s seeking to sell assets to cut debt. The company, which has 330 MW of wind farms in operation in Brazil and 480 MW under construction, is the third-biggest producer of wind energy in Brazil with a market share of 6.4 percent. Wind turbines account for 90 percent of its revenue. (www.bloomberg.com)

 

August 5, 2014. Siemens AG, the biggest European engineering company, is considering opportunities in Mexican oil, gas and renewables industries after efforts by President Enrique Pena Nieto to open up the country’s energy markets. Siemens Financial Services (SFS) provides financing for equipment from trains and wind turbines to medical scanners, helping its parent to spur demand in new markets and for newly developed equipment. Mexico’s Senate approved legislation to help open its energy industry to private companies for the first time in more than seven decades. It set a framework for oil and natural gas contracts for companies entering the country such as Chevron Corp. and Exxon Mobil Corp. Legislation was also passed aimed at freeing access to the national power network. Mexico aims to boost clean energy, SFS’s biggest asset class, to 33 percent of installed power capacity through 2018, from about 15 percent. Mexico will add about 1 GW of wind turbines this year, up from 236 MW in 2013. While Siemens has operated in Mexico for about 120 years, it will need to vie for business with Spanish competitors that have been dominating Mexico’s clean-energy market. (www.bloomberg.com)

August 5, 2014. Uruguay’s power company is seeking $100 million in financing from the Central Bank for a 140 MW wind park, as the nation seeks to diversify its energy mix. The company is negotiating with the German Export Credit Agency for the rest of the funds and Hamburg-based Nordex SE is negotiating to supply turbines for the project. About 60 percent of Uruguay’s installed power capacity is hydroelectric, according to the Inter-American Development Bank. (www.bloomberg.com)

August 4, 2014. Sharp Corp, the Japanese company that stopped making solar panels in the U.S. and the U.K., is betting power users in the U.S. will benefit from a device to store energy and control demand when it’s needed the most. The Osaka-based company introduced an energy management system for industrial and commercial buildings in California where electricity bills are calculated based on peak usage and the amount of electricity actually consumed, according to Takashi Fukushima, who heads the New Business Development Center at Sharp. The product, called SmartStorage, can cut the amount of electricity billed at the highest capacity required because it forecasts power usage patterns in order to manage so-called peak demand, Fukushima said. SmartStorage, which uses lithium ion batteries, can be used on its own or combined with solar panels and will be rolled out in other states later this year, according to the Sharp. (www.bloomberg.com)

August 4, 2014. Bolivia expects to have at least 163 MW of renewable energy capacity in operation within 10 years, Energy Minister Juan Jose Sosa said. The ministry is developing an energy plan that will emphasize increased use of renewables, Energy Minister Juan Jose Sosa said. Bolivia’s first wind farm went into operation this year, the 3 MW Colpana project that may eventually be expanded to 24 MW. The government expects to line up by September a developer to build the next phase of the project and has budgeted $50 million. (www.bloomberg.com)

August 4, 2014. The Asian Development Bank (ADB), Japan’s Orix Corp, and the Netherlands’s Robeco Institutional Asset Management BV will set up a private-equity venture in Asia to fund projects aimed at mitigating climate change in the region. Asia Climate Partners will be capitalized with an initial $400 million from its founders. The fund will be based in Hong Kong and invest in renewable energy, water, and other climate-related businesses. (www.bloomberg.com)

August 1, 2014. A more stringent national ambient air quality standard for ozone could cost the U.S. economy up to $270 billion per year and force the closure of one-third of the nation's coal-fired power plants, according to a report commissioned by the National Association of Manufacturers. The report, released July 31, outlines the economic effects of revising the current ozone standard of 75 parts per billion (ppb) to 60 ppb, the lowest level being considered by the Environmental Protection Agency (EPA). The agency is under a court-ordered deadline to issue a proposal on whether to retain or revise the existing ozone standard by Dec. 1. The EPA is considering setting a new standard somewhere between 60 ppb and 70 ppb, according to a draft policy document prepared by the agency. The Clean Air Scientific Advisory Panel concurred that the agency's identified range would be “appropriate” for a revised ozone standard and informed the agency in July that the current standard of 75 ppb is insufficient to protect human health. A more stringent ozone standard is supported by public health groups, including the American Lung Association (ALA), which cites data linking exposure to ambient levels of ozone with asthma, premature death and other health problems. The ALA and other groups have said the revised ozone standard should be set no higher than 60 ppb due to evidence of adverse health effects at higher levels. (www.bloomberg.com)

August 1, 2014. American investor-backed LNK has added the fifth biogas power facility to the already four operating in war-torn Ukraine. Since the outset of the LNK presence in Ukraine the company has seen the country’s need to gain more energy independence and sought to help provide more sources for domestic energy. President of Ukraine’s Renewable Energy Association, Vitali Davij, also praised the latest renewable facility in the country. Not only is LNK tackling the energy crisis in Ukraine, but the biogas facilities also help reduce methane emissions as outlined in the Kyoto Protocol, adopted by the UN Framework Convention and signed by Ukraine. (www.renewableenergyworld.com)

July 31, 2014. U.K. renewable-energy companies provided 14.9 percent of the nation’s electricity last year, the government said. The proportion from renewables in 2012 was 11.3 percent, the Department of Energy and Climate Change said. The volume of all energy consumed from renewables rose to 5.2 percent in 2013 from 4.2 percent a year earlier, the department said. Ministers are relying on the power generation industry to achieve the bulk of the U.K.’s European Union target to derive 15 percent of all energy from clean sources by 2020. The government estimates it needs to get about 30 percent of power from renewables to meet the goal. (www.bloomberg.com)

July 31, 2014. Brazil’s BNDES development bank will allow solar developers to import photovoltaic cells until 2020 as part of efforts to spur domestic solar manufacturing capacity. From 2020, local content rules will require developers to use components produced in Brazil to qualify for its low-cost financing, Antonio Carlos Tovar, head of renewable energy development for BNDES, said. Brazil currently gets less than 1 percent of its electricity from solar power and has almost no domestic photovoltaic production. (www.bloomberg.com)

July 30, 2014. Coal miners took on skiers, and environmentalists dueled with business groups as the public debated sweeping rules from the Obama administration to combat global warming in a nationwide series of hearings. At the one in Denver, the ski industry said that without the proposed curbs on carbon emissions from power plants, climate change will result in less snow, fewer tourists and lost jobs. Mining companies countered that the plan would raise electricity costs, resulting in shuttered factories and trouble for states’ economies. (www.bloomberg.com)

July 30, 2014. SunPower Corp. will supply 29 MW of solar panels for a station in southwestern Japan. The plant is being developed by Nangoku Corp., an independent power producer, in Kagoshima prefecture, San Jose, California-based SunPower said. Nangoku has 12 MW of solar capacity in operation and as much as 200 MW planned on the island of Kyushu. (www.bloomberg.com)

 

 

 

 

 

 

 

 

 

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