The AIPEF said the draft standard bidding document for discoms circulated by the power ministry is not to reform the sector but to privatise it across the country. In September, the power ministry came out with a draft Standard Bidding Document for privatisation of distribution licensees and sought public comments on it till 5 October. It provides guidelines for states who want to offer their electricity distribution utilities to private players to improve operational efficiency and finances. AIPEF said discoms are already under financial stress and the tariffs still have a gap between the average cost of supply and average revenue. Section 63 of the electricity Act 2003 does not extend to the evaluation of distribution utility or its bidding/determination, it added saying that most discoms do not have or have not maintained a fixed asset register.
The UP government decided to withdraw a privatisation plan for discoms after nearly five hour meeting with protesting employee unions which began an indefinite strike a day ago. As per the agreement signed after the meeting UP agreed to take back the privatisation proposal of Purvanchal Vidyut Vitaran Nigam Ltd, which supplies electricity to 8 million consumers including in important constituencies of Varanasi, Gorakhpur and Prayagraj. The agreement said the state power distribution companies will strive to improve power supply and operational efficiencies within the existing framework and any privatisation proposal in future will be made after taking the employees and authorities in confidence. Monthly review meetings will be held till 15 January to take stock of progress in the distribution utilities, the agreement said. The government and the employee unions also agreed to take measures to make the power distribution areas corruption-free, and bring billing and collection efficiencies. The government also agreed that no action will be taken against protesting power department employees and withdraw all FIRs registered in the past two days. The employees in the power department of the Uttar Pradesh government began an indefinite work boycott in response to a call given by the UP Vidyut Karmachari Sanyukt Sangharsh Samiti to protest against the proposed privatisation of the discom, which resulted in long power cuts in many parts of the state.
India’s power consumption grew 11.45 percent to 55.37 bn units in the first half of October this year, mainly driven by buoyancy in industrial and commercial activities, as per government data. Power consumption in the country was recorded at 49.67 bn units during October 1-15 last year, according to the power ministry data. For a full month in October last year, power consumption was 97.84 bn units. The government had imposed nationwide lockdown on March 25 to contain the spread of Covid-19. Power consumption started declining from March onwards due to fewer economic activities in the country. The Covid-19 situation affected power consumption for six months in a row from March to August this year. Power consumption on year-on-year basis declined 8.7 percent in March, 23.2 percent in April, 14.9 percent in May, 10.9 percent in June, 3.7 percent in July and 1.7 percent in August. The data showed that electricity consumption had grown by 11.73 percent in February. Power consumption has shown an improvement post lockdown easing for economic activities after 20 April. After a gap of six months, power consumption recorded a growth of 4.6 percent in September this year at 112.43 bn units from 107.51 bn units in the same month last year.
The peak power demand of Delhi is fast catching up with pre-Covid levels as an increasing number of economic activities are being allowed under the Centre’s ‘Unlock’ process. In September this year, the peak power demand was just 5.9 percent lower as compared to the corresponding month last year. Delhi’s peak power demand has increased by over 50 percent. Compare the peak power demand since April 2020, it has increased by over 87 percent. This year, due to the lockdown and weather conditions, the peak power demand recorded has been muted (6,314 MW on 29 June 2020). Delhi’s all-time high peak power demand was recorded on 2 July 2019, when it clocked 7,409 MW. During the height of lockdown, there was a sharp reduction in the power demand during the day due to closure of commercial and industrial establishments. However, there was no impact on Delhi’s domestic load, which is around 75 percent of the total power load of the city.
NTPC Ltd said its power generation including joint ventures and subsidiaries rose 13.3 percent to 77.92 bn kWh during July-September quarter this year. During the first half of the current financial year, from April to September 2020, the power generation of NTPC Group companies stood at 145.87 bn kWh higher by 0.4 percent than the same period last year. NTPC coal stations have maintained high plant availability of 94.21 per during April to September 2020, as against 90.26 percent during the same period last year, demonstrating high levels of operational excellence.
Kerala State Electricity Board has received bids to purchase extra power generated at Moolamattom power plant. Earlier, the board had decided to surrender the power from Central pool and make use of the additional power generated at Moolamattom to tide over the rising water level at Idukki reservoir. After a meeting to discuss power position, the power plant has increased its generation, aiming to reduce the water level in the reservoir.
The CSPDCL has re-launched its mobile application with additional features that enables consumers to avail electricity-related services at their doorsteps. The new features of Mor Bijlee (my electricity) app through which more than 16 services provided by the CSPDCL can be accessed by people without visiting electricity offices. Chhattisgarh is the first state in the country, where such an app is being used to provide doorstep services to the power consumers. The app is expected to save time, efforts and money of the consumers and also be helpful for the field employees. The power company has been using the latest technology for production, transmission and distribution of electricity in the state and one of the best examples of the same is this app.
ATL affirmed that it will be able to execute a transmission line and sub-station project at suburban Vikhroli which will enhance the power supply by 1,000 MW to the financial capital, by the end of next year, as per the mandated deadline for it. ATL said there will be growth in power load in the megapolis and the mismatch between generation and load growth, it is committed to executing two critical transmission projects that would help channelise additional power to Mumbai. These capacity enhancement projects will create an additional transmission capacity of 1,000 MW each, thereby easing the existing transmission corridors, it said. It includes the Kharghar-Vikhroli 400/220 kV EHV transmission line project, which will add a 1,000 MW power supply corridor and will also be Mumbai’s first 400 kV Substation. Apart from the Vikhroli-Kharghar line, a second project involves an 80 km (kilometre) link between Maharashtra State Electricity Transmission Company’s 400 kV Kudus & Adani Electricity Mumbai’s 220 kV Aarey EHV Substation which will be a first of its kind underground high voltage DC cabled system that can get an additional 1,000 MW of power.
For the inhabitants of Siruvattukadu, a tribal village of Oddanchathiram in Dindigul district, it was a dream come true to see their streets being lit by electricity for the first time. However, it also flies in the face of the government’s claims of the state having achieved 100 percent electrification of houses some years ago. As it was a reserve forest area, taking electricity cables through was difficult, not to mention that it was also very expensive. The people did not even have water supply through an overhead tank due to lack of electricity. Villagers said around 50 school children would benefit from the electricity.
AP government has said that utmost priority is being accorded to supplying power to the agriculture sector for nine hours during day time to give a boost to the rural economy. The ultimate aim was to create a robust power sector by strengthening the power utilities and make AP a destination for cost-effective power. The government sanctioned ₹17 bn for upgrading the agriculture feeders in tune with the importance given to the nine-hour free supply. AP-Transco had undertaken infrastructure development works for better implementation of the scheme. The government intended to make free power to the farmers a permanent scheme.
IEX said it has recorded a 13.2 percent rise in electricity sales to 16,486 mn units in the September quarter, as power demand accelerated and returned to pre-Covid levels. The second quarter witnessed a sharp recovery in industrial activities and electricity consumption, owing to easing of the lockdown restrictions across the country, IEX said. With the rise in economic and industrial activities, the power demand also accelerated and returned to the pre-Covid levels. The spot electricity market at the IEX traded a volume of 5,675 mn kWh in September 2020, an increase of 45 percent over the same month last year. This comes at a time the national peak demand in the same period saw a 2 percent increase. With robust sell side liquidity, the average market clearing price at ₹2.69/kWh saw a decline of 3 percent on a year-on-year basis over ₹2.77/kWh in September 2019, helping both the distribution utilities and industries to accrue significant financial savings. Attractive prices and ample availability supported the southern, western and northern state distribution utilities, to leverage the exchange market for meeting their short term electricity requirements as well as for replacement of costlier power in order to optimize their overall cost of power procurement. Power trade in the term-ahead market stood at 107 mn kWh for the month.
CERC will remain shut for one more month, the SC directed. Country’s apex electricity regulator has been suspended by the Court since 28 August when CERC failed to appoint a mandatory Member (Law) in its quorum. The matter pertains to a SC order in April 2018 when it directed all state electricity commissions to appoint a member from the field of law with qualifications of a high court or district judge. The power ministry asked the SC for four weeks to search and appoint a member (law). The ministry said the final selection of the member would be done by a Cabinet Committee.
CERC has advised the power ministry against jurisdictional overreach in framing regulations for the power sector that infringes the substantive functions of the Central Commission. The regulator has issued an advisory over the draft rules proposed by the ministry, asking the government to work in harmony by honouring the respective jurisdiction carved out in the Electricity Act 2003. The CERC said that several of the issues contained in the draft regulations fall under the purview of the states and the power ministry should first consult with the state governments before framing rules. The CERC letter highlights that the electricity and tariff policies in the country are to be framed in consultation with the state governments and the regulatory commissions so that the directions given in the policy is universally followed by all segments universally. Under the existing framework, the regulator has indicated to the ministry not to go ahead with framing of rules without taking all segments of the sector together.
Discoms in India have to improve the power quality in the country, a survey shows. A joint study by Smart Power India, NITI Aayog and the Rockefeller Foundation, showed that only 55 percent customers were satisfied with the quality of their electricity supply. The report said that power quality was reported as the number of voltage fluctuations. Overall, 63 percent of customers reported more than one voltage fluctuation in a week, and 10 percent reported more than 10 voltage fluctuations per day in the past one week. Appliance damages in the past one year played an important role for the customers to decide upon the quality of supply of power, it said. It further showed that overall, a total of 63 percent of the surveyed customers are satisfied with the service provided to them. Among the dissatisfied customers, 31 percent reported an average power cut duration of no more than 1 hour per day, and 15 percent reported no power cuts. As expected, urban (74 percent) customers are comparatively more satisfied with the reliability of power as compared to their rural (60 percent) counterparts.
India’s financial capital was thrown into an unprecedented turmoil after power lines tripped, cutting off electricity to the city’s 18.4 mn residents for more than two hours. Trains shut down, mobile networks got clogged and internet slowed as the city battled an unprecedented cut in supply that everyone thought was impossible due to the city’s unique ‘islanding’ system. Lockdown, restricted outdoor activity and work from home due to the Covid-19 pandemic prevented large-scale chaos especially in financial markets. Power cuts are a rare occurrence in Mumbai due to the city’s ‘islanding’ system which enables power producers to cut themselves off the grid and continue supply to a limited area. Tata Power, which is a major power producer and distributor in Mumbai, attempted the cut-off but could not do so due to sudden and dramatic drop in load. The Maharashtra government has ordered an enquiry and a central team would visit Mumbai to identify problems and work out solutions.
In UP if electricity bills are not provided to consumers for more than three months then the recovery of unpaid meter readings will be done from billing agencies. The UP government expressed disappointment over UPPCL callousness in executing agreements finalised with the billing agencies with long delay in arrangement of downloadable bills in urban and rural areas. At the same time, the billing agencies could not collect mobile number, meter number and the GPS location of meters within the stipulated time. Taking strong note of the lapse UP government sought a report from the UPPCL. Consumers were encouraged to lodge their complaints in 1912 if billing agencies did not provide them bills on time. The UP government urged that applications loaded on Jhatpat connection and nivesh mitra portal be disposed of swiftly. The UP government also expressed displeasure on UPPCL not bringing down line losses on selected feeders. Amid UP government’s promise to provide round-the-clock power supply to the consumers, and the proposal to privatise Purvanchal distribution company, the UPPCL’s data show that more than 38 percent consumers have not paid their electricity bill since the date of connection. UPPCL said that out of a consumer base of 28.3 mn, 10.9 mn consumers have not paid their bills. About 96 percent of these defaulters are from rural areas. UPPCL said that the amount recoverable from these consumers is around ₹680 bn. Significantly, of the over 10 mn consumers who have never paid their electricity connection, maximum 4.3 million, out of total 8.3 million are from the Purvanchal Discom alone. Data shows that in Purvanchal alone, a staggering 378,000 consumers are those who have pending arrears above ₹100,000. Purvanchal is followed by Madhyanchal comprising Lucknow, Devi Patan and Ayodhya zones. Here, as many as 3.345 million consumers have not paid their bills since getting a connection. This discom has total 7.9 mn consumers. In fact, Lucknow zone alone accounts for around 1.1 mn such consumers. Data show that more than 170,000 consumers account for those consumers who have pending arrears above ₹100,000. The Dakshinanchal discom follows next with over ₹2.2 million consumers — out of 5.5 million – faltering on payment of their electricity bills. It is only Paschimanchal discom which has been performing well with just over 1 million such consumers. It has total 6.5 million consumers.
Goa is one of only five states to have succeeded in eliminating revenue gaps in power distribution in 2019-20, thus meeting the Centre’s UDAY targets. According to the RBI’s report on state finances, Assam, Goa, Gujarat, Haryana and Maharashtra are the only states to bridge the gap between the average cost of power supply and the average realisable revenues. However, the RBI report has warned that the financial position of discoms is expected to weaken further in 2020-21 as the Covid-19 lockdown has severely impacted power demand, particularly in the lucrative industrial and commercial segments. Goa had a shortfall of 0.30 paise per unit of power as on March 2019, improved to a surplus of Rs 0.001/kWh of power as on March 2020. With such a slim margin, the RBI prediction that state-owned enterprises face a significant downside risk due to Covid-19 suggests that Goa Electricity Department faces difficult days ahead. The government had launched the UDAY scheme in November 2015 with the objective of financial turnaround of discoms. The way to reduce the losses is to progressively increase power tariffs, which in Goa remain among the lowest in the country.
Maharashtra State Electricity Distribution Company Ltd — is in financial trouble because of the mounting power bill arrears of consumers, especially residential, commercial and small industrial users. In many parts of the state, the power bill dues from consumers have doubled. The company said it is important that people clear their dues because almost 85 percent of the bill revenue is used to purchase power.
The MERC began hearing into power outage in the financial capital which lasted for up to 14 hours in some parts. MERC, which had earlier sought statements from the stakeholders which involve power generation and distribution companies, put up a few additional questions to the stakeholders and gave them time to reply. The Commission, which has expressed its worries and concerns over the outage, will go to the root cause of the problem and is expected to pass directions in a day or two after perusing all the statements on record. In the notice announcing the hearing, MERC had said items for discussion will be the reasons for occurrence of the outage, if standard protocol was followed to restore the grid and reasons for delay in restoring, response of all the stakeholders, if the islanding system operated as envisaged, priority accorded while restoring and also ways to prevent a re-occurrence of the same. At present, the MSETCL and Tata Power are in a blame game over what led to the power outage.
Jharkhand requested the PM to cancel the deduction of DVC dues from the state government share and return the amount to the latter. The government has requested that Coal companies, which supplies raw material to the power companies, should also be included in the agreement. The state government receivables from the coal companies must be considered while determining its dues. According to the Jharkhand government, the deduction made by the Centre from the state’s share during the pandemic period is prima facie “unconstitutional, immoral and an attack on the federal structure”. Several states have more electricity dues than Jharkhand but the Centre chose to make the deduction from a poor and adivasi-dominated state. The Centre’s step has come at a time when the state’s revenue collection has taken a hit owing to the lockdown and economic slowdown.
The BJP and the Congress criticised Odhisha government over the recent hike in power tariff for domestic consumers by ₹0.20/kWh. Moving an adjournment motion in the session, the opposition said hiking power tariff during Covid-19 is like rubbing salt on the wounds of people. According to the government there has been no increase in electricity tariff in the last seven years while consumers belonging to BPL category and agriculture sector have been kept outside the purview of the latest tariff hike. Around ₹60 bn is due from distribution companies. Opposition also criticised the purchase power from central agencies at high cost when Odisha is a power surplus state.
Britain’s Infinite Power said it had signed a letter of intent with Japan’s Marubeni Corp and Germany’s Framatome to provide uninterruptible power in nuclear energy facilities. Infinite Power said last month it was seeking to raise 25 mn pounds to construct its first production facility in Britain to make the power cells to provide clean energy to industry. Discussions are ongoing with investors in the United States and Britain.
The World Bank has sanctioned a state Chinese state electric engineering group and its subsidiary over fraudulent practices in a power project in Zambia, setting out new conditions for them to participate in bank-financed projects. The action bars China Electric Design and Research Institute Co Ltd from participating in bank financed projects for up to 18 months, with the ability to meet new compliance conditions. The firm’s parent company, China National Electric Engineering Co Ltd, was allowed to continue to participate in projects under a settlement agreement, but could be banned if it fails to meet agreed conditions.
US electricity consumption will decline 2.3 percent this year as coronavirus lockdowns cause businesses to close according to the US EIA. The EIA projected power demand will drop to 3,809 bn kWh in 2020 from 3,896 bn kWh in 2019 before easing to 3,806 bn kWh in 2021. Those declines follow a 2.7 percent drop in usage in 2019 due to mild weather from 2018’s record 4,003 bn kWh, according to data going back to 1949. If power consumption falls as expected, 2020 would be the first-time demand declined for two consecutive years since 2012 and 2021 would be the first time it declines for three years in a row ever. The EIA projected power sales to commercial and industrial consumers will drop by 6.2 percent and 5.6 percent, respectively, in 2020 from 2019 as offices close and factories run at reduced capacity for coronavirus. Electricity sales to residential homes, however, will rise 3.2 percent to 1,481 bn kWh in 2020 as lockdowns cause people to stay home. While both the residential and commercial sectors consumed record amounts of electricity in 2018 at 1,469 bn kWh and 1,382 bn kWh, respectively, the industrial sector set its all-time high of 1,064 bn kWh in 2000.
A fast-burning wildfire triggered evacuation orders for 60,000 Southern California residents as hundreds of thousands elsewhere across the state endured a second straight day of power shutoffs due to heightened fire risks from high winds. Hundreds of miles away, the Pacific Gas and Electric Company said it had cut off power to more than 350,000 homes and businesses in central and northern California as a precautionary measure in the face of elevated fire risks posed by dangerously high winds across 34 counties. Wind-damaged electrical lines coming into contact with tinder-dry vegetation have been implicated in causing a number of devastating California wildfires in recent years, and utilities have increasingly resorted to such “public safety power shutoffs” to reduce the risk.
| AIPEF: All India Power Engineers Federation, discoms: distribution companies, UP: Uttar Pradesh, CSPDCL: Chhattisgarh State Power Distribution Company Ltd, ATL: Adani Transmission Ltd, MW: megawatt, GW: gigawatt kW: kilowatt, mn: million, bn: billion, kV: kilovolt, AP: Andhra Pradesh, IEX: Indian Energy Exchange, SC: Supreme Court, , CERC: Central Electricity Regulatory Commission, UPPCL: UP Power Corp Ltd, UDAY: Ujwal Discom Assurance Yojana, RBI: Reserve Bank of India, MERC: Maharashtra Electricity Regulatory Commission, PM: Prime Minister, BJP: Bharatiya Janata Party, BPL: below poverty line, UK: United Kingdom, US: United States, EIA: Energy Information Administration |
10 November. Indian Oil Corp (IOC), the nation’s top oil firm, said it has commissioned its 120th aviation fuel station at Darbhanga in Bihar. IOC, which controls about 40 percent of the fuel market in the country, was selected for developing a fuel farm facility at the airport under the Regional Connectivity Scheme (RCS) by the Ministry of Civil Aviation in 2018. The company has positioned three refuellers at the airport to cater to the three daily flights scheduled currently. IOC runs aviation refuelling facilities across the country – from the icy heights of Leh (the highest airport in the world at 10,682 feet) to the distant islands of Andaman and Nicobar.
Source: The Economic Times
9 November. Oil Marketing Companies (OMCs) did not revise the retail prices of petrol and diesel, maintaining the trend despite further softening of global oil prices. With this, petrol prices have now remained unchanged for 47 days now while diesel prices have been at the same level since 2 October. During this period, Brent crude prices fell by $2-3 per barrel and are currently hovering just over $40 per barrel. Price of petrol in the national capital remained at ₹81.06 per litre. In Mumbai, Chennai and Kolkata, the fuel was sold for ₹87.74, ₹84.14 and ₹82.59 per litre respectively. Diesel prices in Delhi, Mumbai, Chennai, and Kolkata were ₹70.46, ₹76.86, ₹75.95, and ₹73.99 respectively. With global crude prices falling below $40 per barrel, consumers were hoping the pump prices of auto fuel will also fall. However, OMCs seem to be playing a waiting game before taking further action on petrol and diesel prices.
Source: The Economic Times
9 November. India has invited global firms to invest in its strategic petroleum reserves (SPRs) as the nation’s energy consumption growth would be fastest among large economies in coming decades, Oil Minister Dharmendra Pradhan said. India’s share in global energy consumption is set to rise from 7 percent to 12 percent in 2050, Pradhan said. The nation, the world’s third-biggest oil consumer and importer, earlier this year filled its three SPRs in southern India with 5.33 million tonnes (mt) of oil when prices were low. To attract private investment in its SPRs, India recently allowed Abu Dhabi National Oil Co (ADNOC) to re-export some of its oil stored in Mangalore SPR, mirroring a model adopted by South Korea and Japan.
Source: Reuters
8 November. Vedanta Ltd’s oil and gas arm Cairn has got a further three-month extension of license for its prolific Rajasthan oil block pending settlement of a dispute over $520 mn cost recovery. The license to explore and produce oil and gas from Barmer was due to renewal in May this year, but pending settlement of the dispute the government has given five extensions, the latest till 31 January 2021. The government had in October 2018 agreed to extend by 10 years the contract for Barmer fields in Rajasthan after the expiry of the initial 25-year contract period on 14 May 2020.
Source: The Economic Times
5 November. India, the world’s third-largest oil importer, pressed for assessing the impact of Covid-induced disruptions to global energy sector supply chains and said oil-cartel OPEC needs to address anomalies in the crude price differential for different regions. Oil Minister Dharmendra Pradhan said OPEC meets 78 percent of India’s crude oil demand, 59 percent of its LPG needs, and nearly 38 percent of LNG consumption. India imported $92.8 bn worth of hydrocarbons from OPEC countries in 2019-20. The pandemic has impacted the global oil and gas industry by a significant impact on both oil demand as well as the supply side, creating an unprecedented global oil price volatility, he said. OPEC has projected India to emerge as the leading energy consumer over the long term. India’s oil demand is forecast to rise from 4.7 mn barrels per day (bpd) in 2019 to 10.7 mn bpd by 2045, with its global share rising from 5.2 percent to 10.8 percent by 2045.
Source: The Economic Times
QuIck CommentCGD roll out in challenging areas requires more than just time! Bad! |
9 November. PNGRB (Petroleum and Natural Gas Regulatory Board) has given up to eight-and-a-half months of extra time to companies such as Indian Oil Corp (IOC), GAIL (India) Ltd and Adani Gas to fulfil their city gas project rollout commitments that had been impacted by Covid-19 lockdowns. The PNGRB issued an order granting more time to 41 city gas entities to complete their rollout commitment. The time granted varies from 129 days to 251 days across different geographical areas depending on the duration of the Covid-19 lockdown, the order said. The extra time is to make up for 69 days of the national lockdown imposed to curb the spread of the pandemic and additional restrictions imposed in states. A 60-day restoration period is given on top of the lockdown period. PNGRB said it has given licences to retail CNG (compressed natural gas) to automobiles and piped natural gas to household kitchens and industries in 230 geographical areas (GAs) across the country. IOC, GAIL, Adani Gas, Gujarat Gas, Torrent Gas, Bharat Petroleum Corp Ltd (BPCL), Indraprastha Gas Ltd and Hindustan Petroleum Corp Ltd (HPCL) are among the firms that got extra time.
Source: The Economic Times
10 November. Chief Minister (CM) Pramod Sawant, who is on a visit to New Delhi, said that Union Shipping and Ports Minister Mansukh Mandaviya told him he would reduce coal handling at Mormugao Port Trust (MPT), and that he would study what other commodities can be handled at the Goa port. Sawant said that if coal handling at MPT is reduced, the people won’t oppose double-tracking.
Source: The Economic Times
9 November. Sarda Energy and Minerals Ltd won a coal mine in Chhattisgarh by agreeing to part with whopping 66.75 percent revenue to pip seven other firms including Adani Enterprises, Hindalco Industries and JSW Steel. This is the highest revenue share offered by any bidder in the first tranche of commercial coal mine auctions. The pilot tranche of commercial coal auctions is expected to generate about ₹70 bn annually for five states of Jharkhand, Madhya Pradesh, Odisha, Chhattigarh and Maharashtra, Coal Minister Pralhad Joshi said. Joshi asked the state governments to support the winning companies in mine development. The maximum revenue is expected to be earned by the Jharkhand government, which moved the Supreme Court against holding of the coal mines auction by the Central government.
Source: The Economic Times
6 November. The fifth Joint Working Group (JWG) on coal between India and Indonesia discussed various issues through video conferencing and the coal ministry provided an overview of the domestic coal sector. The meeting of the JWG was hosted through video conferencing due to travel restrictions on account of Covid-19 pandemic. It was chaired from the Indian side by Additional Secretary at the coal ministry Vinod Kumar Tiwari. From the Indonesian side, the meeting was chaired by Jonson Pakpahan, Director for Mineral and Coal, Non Tax State Revenue of Ministry of Energy and Mineral Resources, the ministry said. Tiwari provided an overview of the coal sector in India and presented emerging scenario for the future. He highlighted India’s initiatives for self-sufficiency in coal under Aatmanirbhar Bharat and imperatives for businesses in coal sector in both the countries. The ministry made presentations on Indian coal policy reforms, coking coal exploration and commercial mining, followed by presentations by the Indonesian side on coal policy and current coal business updates, deep seated coal potential in Indonesia.
Source: The Economic Times
QuIck CommentGrowth in e-auction of coal is a small step towards market liberalisation! Good! |
4 November. Coal India Ltd (CIL)’s spot coal auction tripled to 16.8 million tonnes (mt) in October compared to same month last year, on the back of increase in demand from the power sector. The increase of 190 percent or 11 mt during the month signals demand resumption for coal after a Covid led hiatus. Volume booking in e-auctions for the first seven months of the ongoing fiscal ending October at 59 mt, increased by 28 mt translating into a growth of 90 percent. For a comparable period last year CIL booked 31 mt. October’20 auction sale, in addition to the four prevailing windows, included a new auction outlet called special spot for coal importers, under which 1.6 mt of coal was booked. CIL in a first, has introduced this category meant exclusively for coal importers to contain imports from abroad. To boost demand, CIL has brought down the reserve price close to zero during the first half of the present fiscal. It was only in October, as a bellwether, CIL introduced an add-on ranging from zero to a maximum of 10 percent over the notified price to test the market trend.
Source: The Economic Times
9 November. Uttar Pradesh (UP) Chief Minister (CM) Yogi Adityanath announced four new electrification schemes for Gorakhpur and inaugurated and laid foundations of power projects worth ₹2.16 bn through a virtual ceremony. He inaugurated 12 projects of ₹120 mn, laid foundation of seven projects of ₹949.4 mn and proposed four new schemes of ₹1.08 bn, while reiterating this would improve power supply and remove recurrent voltage fluctuation. Calling it a gift ahead of Diwali, he said, in past three-and-half years, the power department launched several programmes to transform the power situation, including electrification of 1.75 lakh villages. The new projects include replacing 160 km of old wires, replacing 1,000 damaged electricity poles and construction of 220/33 kilovolt substation. The projects launched include setting up substations at Padri Market and Rani Bagh, a transformer in Khorabar and new transformers at various locations in Gorakhpur.
Source: The Economic Times
9 November. Delhi is set to witness a new record this winter in power demand which is set to rise to 5,480 MW, 2.5 percent higher than the demand of 5,343 MW recorded in the last year’s winter months, according to private distributor BSES. The firm is also being helped by over 90 MW of roof-top solar power installed on roof-tops in South, West, East and Central Delhi. It said that in case of any unforeseeable contingency, BSES discoms (distribution companies) will buy short-term power from the exchange which is available at economical rates.
Source: The Economic Times
9 November. The power ministry announced it has made it mandatory for all the distribution entities in the country to comply with the provisions of the Energy Conservation (EC) Act. The power ministry had issued a notification in September stating all the entities having issued distribution license by State or Joint Electricity Regulatory Commissions under the Electricity Act 2003 are notified as Designated Consumers. After this
QuIck CommentPower tariff hike should not be decided by governments but by independent regulators! Ugly! |
notification, all the discoms (distribution companies) will be governed under the provisions of EC Act, such as appointment of energy manager, energy accounting & auditing, identification of category-wise energy losses and implementation of energy conservation & efficiency measures. Earlier, discoms with annual energy losses above 1,000 mn units were only covered as designated consumers. With this notification, the number of discosm covered under the EC Act will increase from 44 to 102.
Source: The Economic Times
7 November. Voicing concern over alleged irregularities in generation of electricity bills in UP (Uttar Pradesh), Congress general secretary Priyanka Gandhi Vadra urged the state government to act against those responsible for it and demanded that the rate of electricity for farmers should be halved immediately. She demanded that relief should be given to weavers, artisans and small-scale industries in electricity consumption. She said people were hit hard by pandemic and inflation and they were not in a condition to bear the brunt of erratic bills.
Source: The Economic Times
7 November. The northeastern region of India is facing a cumulative peak time power shortage of 4.1 percent, with Assam and Manipur topping the list at a deficit of 3.5 percent and 5.2 percent respectively, the CEA (Central Electricity Authority) 2018-19 Load Generation Balance Report has found. Consumption is mostly dominated by the domestic and commercial sectors — the per capita consumption is 119 kW/hr while the industrial consumption is 1,200 GW/hr for the region.
Source: The Economic Times
6 November. Samajwadi Party chief Akhilesh Yadav said that purchase of electronic power meters in Uttar Pradesh involves the biggest scam of the present regime in the state. He said the state government is preparing to increase the power tariff any time after Diwali. In the last three years the government has purchased electronic meters worth ₹20 bn and another 12 lakh smart meters worth ₹5 bn. There has been a major scam in the two purchases, he said. He said that the government is quietly preparing to increase the power tariff after Diwali and described Power Minister Shrikant Sharma’s recent announcement that he would peddle his way to office everyday on a bicycle as a gimmick to distract people from real issues.
Source: The Economic Times
5 November. Pay more for electricity with the state government announcing a 5.4 percent increase in power tariff effective 1 November. The Karnataka Electricity Regulatory Commission has approved the tariff revision with average increase at 40 paise per unit. For instance, a domestic consumer in Bescom limits who uses about 200 units a month will pay around ₹50 more now on. The fixed charges have not been revised. KERC revises power tariff at the start of every financial year. This year, it didn’t effect a change owing to the adverse financial situation in all the sectors of economy due to the Covid-19 pandemic. The revised tariff is applicable for the remaining five months of the ongoing financial year.
Source: The Economic Times
10 November. Renewable power is growing robustly around the world this year, contrasting with the sharp declines triggered by the Covid-19 crisis in many other parts of the energy sector such as oil, gas and coal, a report from the International Energy Agency (IEA) said. And India is expected to be the largest contributor to the renewables upswing next year. India and the European Union will be the driving forces behind a record expansion of global renewable capacity additions of nearly 10 percent next year — the fastest growth since 2015, according to the report. India is expected to be the largest contributor to the renewables upswing in 2021, with the country’s annual additions doubling from 2020. Over the first 10 months of 2020, China, India and the European Union have driven auctioned renewable power capacity worldwide 15 percent higher than in the same period last year — a new record that shows expectations of strong demand for renewables over the medium and long term.
Source: The Economic Times
10 November. NTPC Ltd said 8 MW solar energy generation capacity at its Auraiya project in Uttar Pradesh has been made commercially operational. The remaining 12 MW solar capacity under implementation is expected to be operational by March 2021. The present installed capacity of NTPC Group comprises 46 NTPC stations–24 coal- based, 7 combined cycle gas/liquid fuel, 1 hydro, 14 renewables.
Source: The Economic Times
8 November. The government is working towards abatement of air pollution and is especially concerned over the pollution level in the northern parts of the country, especially the capital Delhi Minister for Environment, Forest and Climate Change Prakash Javadekar said. He said the central government has been working constantly on all fronts to mitigate air pollution. Expressing concern over the pollution level in the northern parts of the country especially national capital Delhi, the Minister said that the government is working towards abatement of Air Pollution by working at the source level, be it industries or thermal power stations, vehicular pollution, construction and demolition waste or stubble burning, which are the major sources of pollution generation. He said the government will continue to strive hard to bring an end to the issue of Air pollution and encourages all possible technological interventions in this regard. The Minister said that Indian government is continuously making efforts to promote usage of electrical vehicles in the country. He said, the National Clean Air Programme has also been formulated to improve on the air quality in 122 cities across the country.
Source: The Economic Times
8 November. Chief Minister (CM) Naveen Patnaik inaugurated the 24 MW Baitarani Small Hydro Power Project at Singhanali in Odisha’s tribal-dominated Keonjhar district. Patnaik said the hydropower project is a milestone in the green and renewable energy sector. Small green energy projects will help Odisha tackle the environment changes well, he said. The Hyderabad-based Baitarani Power Project Private Ltd commissioned the hydropower project which will generate 100 mn units of electricity and supply power to the state grid. The CM expressed satisfaction over the establishment of the project over river Baitarani for which no one is displaced. He said the people of Anandapur in Keonjhar district can avail quality power being generated from the new project.
Source: The Economic Times
6 November. India’s renewable energy sector continues to attract investors despite the disruption caused by the Covid-19 pandemic and the economic downturn, the International Energy Agency (IEA) and CEEW Centre for Energy Finance report said. Projects with a total capacity of 15.3 GW were sanctioned during the first half of the year, the study said. The collaboration between IEA and CEEW tracks the renewable energy sector at the project level, and takes a look at the financing trends as well. However, challenges like non-payment of dues and lack of availability of land still plague the renewable energy sector.
Source: The Economic Times
5 November. The Airports Authority of India (AAI) signed a Memorandum of Understanding (MoU) with an NTPC Ltd subsidiary to promote usage of electric vehicles and set up solar power plants at its airports. NTPC Vidyut Vyapar Nigam (NVVN), a subsidiary of NTPC, will be provided adequate land and rooftop space free of cost at identified AAI airports to set up solar power plants. AAI airports in Tamil Nadu have solar power plants with 3.5 MWp (megawatt peak) capacity currently. It stated 12 MW solar energy is being purchased through open access for the Chennai airport. A plan will be developed for adoption of electric vehicles on city side and air side at various airports and provision of electric vehicle charging stations, the release mentioned.
Source: The Economic Times
9 November. Renewed lockdown measures in Europe aimed at containing a rise in Covid-19 cases appear set to push the outlook for global oil demand toward the downside, an official with the International Energy Agency (IEA) said. Keisuke Sadamori, IEA director for energy markets and security said the impact would, however, likely be less severe than under lockdowns. Oil prices have recovered from sharp falls earlier in the year to hover around $40 a barrel LCOc1 but demand fears persist, while markets remain on edge over a knife-edge US (United States) election result which appears headed for legal challenges. The IEA kept its 2020 and 2021 oil demand forecast steady in its report, before major European countries including Germany, France and the United Kingdom imposed strict new curbs on movement to check the spread of the virus. China remains the world’s major bright spot after suppressing the virus earlier this year and is on track to be the only major country to boost its year-on-year demand for oil, Sadamori said.
Source: Reuters
6 November. US (United States) oil fell nearly 2 percent as new lockdowns in Europe to contain the spread of the coronavirus disease raised questions about the outlook for crude demand, while markets remained on edge over the drawn-out vote counting in the US election. The Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, a group known as OPEC+, are expected to delay bringing back 2 mn barrels per day of supply in January, given the decline in demand from new Covid-19 lockdowns. Providing some support for the market, US inventories of crude oil plunged, although much of the fall was attributed to production being shut down as another hurricane swept through the Gulf of Mexico.
Source: Reuters
4 November. Asian refiners’ profit from producing very low sulphur fuel oil (VLSFO) climbed to six-month highs this week as output cuts keep supplies tight while demand for the shipping fuel at most ports are back at pre-pandemic levels, traders and analysts said. The trend is likely to stay for the rest of the year, encouraging Asian refiners to prioritise VLSFO production along with petrochemical feedstock naphtha, where demand has also firmed. The front-month VLSFO crack was at $9.43 per barrel above Dubai crude, its highest since 10 April. The residual fuel also posted the highest average margin among refined products so far this year, according to data on Refinitiv Eikon. The world’s largest bunkering hub Singapore posted a 6 percent rise in total marine fuel sales in the first nine months this year.
Source: Reuters
4 November. Total is seeking to sell stakes in a number of Angolan oilfields, in what is seen as an early sign of an expected wave of divestments by big energy companies from the West African country. Total could raise around $300 mn from the sale of its 20 percent stake in Angola’s offshore Block 14, which includes the Tombua-Landana, Kuito fields as well as a cluster of fields that make the BBLT project. Chevron CVX.N-operated Block 14 produced around 40,000 barrels of oil equivalent per day in 2019. The sale of Total’s stake in Block 14 is part of the company’s drive to focus on its larger and more profitable oil and gas fields in Angola, where it remains the largest operator. Total and rivals including BP, Chevron and Exxon Mobil aim to sell tens of billions worth of oil and gas assets around the world in the coming years to reduce debt that ballooned following the collapse in oil prices due to the coronavirus crisis. Those disposals are expected to include a number of stakes in Angolan oilfields, where production is generally more complex and expensive than other basins. HSBC analysts, however, estimate that Total will sell around 200,000 barrels per day (bpd) of production over the coming decade to meet its target of keeping production unchanged until 2025.
Source: Reuters
10 November. Poland’s dominant gas company PGNiG said its biggest supplier, Russia’s Gazprom, had proposed increasing prices for its gas in an existing long-term delivery deal, at a time of heightened tensions between Moscow and Warsaw. PGNiG, which has said it will not renew the deal that runs until 2022, said that the proposal to renegotiate the price was groundless. Gazprom’s exporting arms, Gazprom Export, confirmed it had sent a proposal to PGNiG to review the gas price upwards starting from November 2020. PGNiG, which asked Gazprom to lower the delivery price, imports most of the gas it resells from Gazprom based on the existing long-term deal. Gazprom and PGNiG have had a long-running dispute over gas prices. PGNiG has repeatedly said it pays more than its European peers for Gazprom’s gas. In a flare up of a wider political row, Poland fined Gazprom more than 29 bn zlotys ($7.6 bn) for building the Nord Stream 2 gas pipeline without Warsaw’s approval.
Source: Reuters
5 November. Liquefied natural gas (LNG) supply in the southern Chinese region of Guangxi and nearby regions has tightened, Sinopec said, prompting the firm to source supply from elsewhere as winter approaches. Sinopec, also known as China Petroleum & Chemical Co, said that its Guangxi branch had launched an emergency plan to source LNG from other provinces, without elaborating on the reason for the tight supply situation. The move follows a fire that broke out at the Beihai LNG terminal, which killed six people and forced a temporary closure of Tieshangang port where the terminal – now owned and managed by newly established pipeline company PipeChina – is located. The Guangxi region has two LNG terminals, Beihai and Fangchenggang. Sinopec said there has been no supply disruption in any of its 22 LNG filling stations and 10 natural gas stations in Guangxi.
Source: The Economic Times
4 November. Greek gas grid operator DESFA, 66 percent-owned by a consortium led by Italy’s Snam, signed a deal to buy a stake in an offshore liquefied natural gas (LNG) terminal in northern Greece, DESFA said. DESFA took a 20 percent stake in the consortium which is developing the Alexandroupolis LNG project, it said. The floating terminal, dubbed a project of “common interest” by the European Commission, is expected to be operational by 2023. It will have a capacity of around 6 billion cubic meters (bcm) of gas per year and will cost around €380 mn ($445.06 mn). In Greek waters close to the Turkish border, the offshore storage and regasification unit will be able to feed gas into other pipeline systems planned in the area, including the Trans Adriatic Pipeline (TAP).
Source: Reuters
9 November. China’s coal imports nearly halved in October from a year ago, after record arrivals in the first half of the year and as the world’s biggest coal importer bought less fuel from Australia amid souring relations between Beijing and Canberra. The country imported a total of 253.16 million tonnes (mt) between January and October, not far from the 299.67 mt of coal it imported in 2019. Australia supplied over 40 percent of China’s total coking coal imports and about 57 percent of its thermal coal in 2019. China imported nearly twice the amount of coking coal from Mongolia in September than from Australia, according to Chinese customs data.
Source: The Economic Times
9 November. South African investors have pulled out of a local multi-billion dollar coal-fired power plant project, putting its construction at risk as opposition to the use of fossil-fuels in the country grows despite crippling power shortages. Across the world, investors are coming under increasing pressure to ditch coal, the most polluting of fossil fuels, and switch to greener energy. The latest exits from the 630 MW Thabametsi coal-based power plant project in the water-scarce northern Limpopo province follow the withdrawal last month of South Korea’s Korea Electric Power Corp, and South Africa’s big four banks last year after they were targeted by environmental activists.
Source: Reuters
5 November. Power transmission capacity from Norway to Denmark, Germany and the Netherlands will be reduced until the end of 2023 from December because of local upgrades, the grid operator Statnett said. Upgrades to the grid in southern Norway during that period will lead to capacity reductions on interconnectors, which allow the trade of power across the borders, of up to 200 MW both for export and import, Statnett said. Statnett announced additional curtailments between 25 February and 8 October 2021, because of planned outages in the Norwegian grid, with details to be announced later, Statnett said. Export capacity available to traders on the 1,632 MW Skagerrak link to Denmark should average 1,605 MW and import capacity 583 MW next year, while the 700 MW NorNed cable to the Netherlands should have 560 MW and 649 MW available respectively, Statnett said. The new 1,400 MW NordLink cable to Germany, scheduled to start in December, is expected to have an average 917 MW capacity for exports and 1,363 MW for imports, Statnett said.
Source: Reuters
5 November. France’s Neoen SA has won a contract to help stabilise the power grid in the Australian state of Victoria, supporting Neoen’s plan to build the country’s biggest battery, due to be switched on by the end of 2021. The Australian Energy Market Operator (AEMO) awarded a 250 MW grid services contract to Neoen’s 300 MW Victorian Big Battery, which will use Tesla Inc’s Megapack technology. The state will pay A$84 mn over the 11 years to 2032 for the “humongous battery” to boost power flow between Victoria and New South Wales during summer months, Victoria’s Energy Minister Lily D’Ambrosio said. If there is a sudden drop in power supply, the battery will be called on to discharge energy of up to 250 MW within seconds, giving the market operator time to dispatch other generation and storage to keep the system stable, AEMO said. The Australian Energy Council, which represents the country’s main power producers, opposed the state’s intervention in the market, as it would affect returns that other generators would get during summer peak periods.
Source: Reuters
10 November. Renewable fuels are a niche market for now, but with Democratic President-Elect Joe Biden set to enter office with a divided Congress, legislation supporting demand for products like renewable diesel could garner bipartisan support. Biden, elected president, defeating Republican Donald Trump, has pledged to move the United States (US) to a zero-carbon emissions scheme by 2050. Under a divided Congress, however, ambitious plans to tackle rising emissions may be put on ice. Renewable fuels, however, may be different: their development is supported by some in both the oil and green energy industries. The US consumes roughly 21 mn barrels of renewable diesel per year, compared with 4.1 mn barrels used every day for conventional distillate fuel oil, according to US Energy Department data.
Source: Reuters
9 November. Australia’s New South Wales (NSW) state said it would shift toward renewable energy from coal and aimed to lure A$32 bn ($23.3 bn) of private investment into the sector in the next decade. Australia’s most populous state said it would cut red tape and speed up approvals for businesses to invest in renewable energy projects, with four of its five coal-fired power plants expected to close in the next 15 years. The plans would create close to 10,000 jobs and aimed to bring 12 GW of wind and solar power and 2 GW of storage, such as pumped hydro, online by 2030, state Energy Minister Matt Kean said. Most Australian states support greater use of renewable energy but the federal government has refused to match other developed countries in setting a target for net zero carbon emissions by 2050. Instead, Canberra says zero emissions will be reached some time after 2050. Australia is so far well short of meeting its Paris accord target of cutting carbon emissions by 26 percent to 28 percent from 2005 levels by 2030.
Source: Reuters
6 November. Japan will consider increasing financial incentives for environmental, social and governance (ESG) investment. The support would come as Japan aims to cut greenhouse gases to zero by 2050 and become a carbon-neutral society, a policy goal announced by Prime Minister Yoshihide Suga. Expanding support for environment-friendly investments, including carbon-neutral ones, through subsidies or changes to the tax system was among issues discussed at a meeting of the Growth Strategy Council, a government panel, including some private-sector members, headed by Kato, Japan’s Chief Cabinet Secretary. Other items discussed were energy innovation, such as in green and hydrogen energy, as well as introducing renewable energy as much as possible while also promoting nuclear energy, a meeting document showed. The government’s ambitious carbon-neutral target raised a concern among some critics and opposition parties that resource-poor Japan may be leaning to nuclear power, despite the 2011 Fukushima disaster triggered by a massive earthquake and tsunami. The government wants to draw up plans by year-end for achieving its goal of becoming a carbon-neutral society, Industry Minister Hiroshi Kajiyama said.
Source: Reuters
6 November. The European Union (EU) is considering a plan to increase its offshore wind energy capacity five-fold this decade and 25-fold by 2050, as it seeks to become climate neutral by mid-century, according to a draft policy. The 27-nation EU, which is already home to 42 percent of the world’s offshore wind capacity, says the technology produces clean power at a lower price than any fossil fuel-based source. A draft of the European Commission’s strategy for offshore renewable energy, says the bloc should aim for 60 GW of offshore wind by 2030 and 300 GW by 2050. Its current capacity is 12 GW. The draft includes a goal of 60 GW of wave and tidal energy by 2050.
Source: Reuters
5 November. Malaysian energy giant Petronas (Petroliam Nasional Berhad) said it aims to become a net zero emitter of greenhouse gases by 2050 and also plans to increase its investments in renewable energy Burning of oil and gas accounts for the vast majority of the world’s carbon emissions, and many investors have pushed global oil majors to do more to combat climate change. Petronas, the world’s fourth-largest exporter of liquefied natural gas (LNG), said it will intensify its efforts toward reducing the so-called Scope 1 and Scope 2 greenhouse gas emissions, referring to direct emissions from operations and the electricity used by the company. The company, a significant source of revenue for the federal government, also said it will pursue new avenues of revenue generation via investments in nature-based solutions and set up greater accessibility to clean energy solutions. The Malaysian firm’s 2050 target is in line with peers BP and Shell – though the companies have marked varying goals to strengthen their green ambitions. Some have even committed to reducing Scope 3 emissions from the final consumption of their products. Petronas has made a push towards renewable energy in recent years and also acquired a Singapore-based solar energy company in 2019. Earlier this year, Petronas said it was looking to expand its renewable energy portfolio after posting its first quarterly loss in nearly five years following a coronavirus-related demand slump and lower oil prices.
Source: Reuters
5 November. Wind energy will achieve record growth globally over the next five years, the Global Wind Energy Council (GWEC) trade association said, as the impact of Covid-19 has only been to delay, not cancel, projects. In total some 348 GW of new onshore and offshore capacity are expected by the end of 2024, which would take cumulative wind power capacity to almost 1,000 GW, GWEC said. The costs of wind energy have fallen rapidly over the last few years and are expected to continue to decrease. Governments are also under pressure to cut carbon emissions, which is helping to shift investment away from fossil fuel and into renewable energy, such as wind.
Source: Reuters
This is a weekly publication of the Observer Research Foundation (ORF). It covers current national and international information on energy categorised systematically to add value. The year 2020 is the seventeenth continuous year of publication of the newsletter. The newsletter is registered with the Registrar of News Paper for India under No. DELENG / 2004 / 13485.
Disclaimer: Information in this newsletter is for educational purposes only and has been compiled, adapted and edited from reliable sources. ORF does not accept any liability for errors therein. News material belongs to respective owners and is provided here for wider dissemination only. Opinions are those of the authors (ORF Energy Team).
Publisher: Baljit Kapoor
Editorial Adviser: Lydia Powell
Editor: Akhilesh Sati
Content Development: Vinod Kumar
The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.
PREV
