As of March 2021, the total installed capacity for power generation in India was 379,130 MW. Of this roughly 54.8 percent was coal, 6.65 percent gas, 1.81 percent nuclear, 12.2 percent hydro and 24.3 percent renewable. Overall, the private sector dominated power generation capacity with roughly 47.3 percent share while the state and centre accounted for 27.7 percent and 25 percent share respectively. The private sector accounted for the largest share in coal (36.87 percent), in gas (42.46 percent) and also in renewable (95 percent) based power generating capacity. The lowest share for the private sector was in hydro-power generation at 7.62 percent. In 2020-21, centrally owned plants accounted for 35.2 percent of power generation followed by state owned plans with a share of 34.15 percent and private plants with a share of 30.6 percent. 1246.827 TWh (terra watt hours) of electricity was generated in 2020-21 of which coal contributed 72 percent followed by hydro with 11 percent, renewable with 10 percent, gas 4 percent and nuclear 3 percent.
In 2007-2012 (11th plan period), 48,539.9 MW of thermal (mostly coal with a small share for gas) capacity was added. Roughly 90 percent of total capacity installed in the five-year period was thermal power, mostly coal. Of the total capacity added roughly 22,319.5 MW or 46 percent was added by the private sector. In 2012-17 (12th plan period), against a target of 73,339 MW of thermal capacity 91,730.45 MW was added. Thermal power generation capacity accounted for about 90 percent of total capacity addition and coal alone accounted 85 percent of capacity addition. Of this roughly 41.5 percent used supercritical technology while 58.5 percent used sub-critical technology. The private sector accounted for 58 percent of thermal capacity addition in this period. Growth in power generation capacity additions in the period 2007-2017 was dramatic compared to capacity additions during the previous four decades. Effectively the thermal power generation capacity added in one decade (2007-17) was greater than the thermal power capacity added in the previous five decades. In the period 1997-2002, total power generation capacity addition grew at an annual average of 6.32 percent while thermal power generation grew at a meagre 0.05 percent. In the five-year period from 2002-2007 total power generation capacity grew at an annual average of 2.19 percent while thermal power generation capacity addition fell by about 2.28 percent. Power generation capacity addition picked up after 2007 and grew at an annual average of 21 percent in the period 2007-2012 driven by the electricity act 2003 that opened power generation to the private sector. Annual average growth of thermal power capacity addition led by coal was a staggering 32 percent in this period. The growth momentum continued in the next five years (2012-17) with total power generation capacity growing at an annual average of over 12 percent and thermal power generation capacity growing at over 13 percent. But growth in power generation capacity far exceeded growth in demand for electricity. In the period 2002 to 2017 total capacity addition grew by at an annual average of over 10 percent while demand for electricity grew by only about 5 percent on average. Consequently, the plant load factor of thermal plants fell from close to 80 percent to about 60 percent in 2017. The reserve margin which is the difference between installed capacity and the peak load met – expressed as a percent of peak load met – increased from less than 50 percent to over 70 percent. The surplus thermal capacity has rendered many of the thermal projects commercially unviable affecting balance sheets of public sector banks that financed these projects in the form of non-performing assets.
The national electricity plan 2018 (NEP 2018) took the substantial capacity addition in the previous decade into consideration and observed that only 6445 MW of new coal-based capacity will be required in the period 2017-2022 in addition to 47,855 MW of coal-based capacity that was under various stages of construction and the impending retirement of coal-based capacity of 22,716 MW. This projection by the NEP 2018 was read as India’s decision to phase out coal by the western media that was closely following India’s coal-based capacity additions from the context of climate change. In March 2019, India had about 68,681 MW of coal-based power projects under various stages of construction. The private sector had a share of 35 percent of ‘under-construction’ coal projects with while rest was almost evenly split between the state and central sector. In March 2020, coal projects under construction fell to about 60,916 MW and in March 2021 coal projects under construction fell to 58,240 MW. Since 2019, central sector coal project fell by 26 percent in terms of capacity, state sector projects by 18 percent and private sector projects by just over 1 percent. The good news is that over 71 percent of the projects ‘under-construction’ are super-critical plants. Super-critical plants improve operating efficiency to about 38-40 percent which will reduce carbon-di-oxide (CO2) emissions. A 5 percent improvement in coal combustion efficiency of thermal power plants will lead to a 10 percent reduction in CO2 emissions. However, India’s policy to reduce coal imports could allow older subcritical plants to continue operation thus reducing overall fleet efficiency. In addition, coal plants tend to operate less efficiently when running under lower rates of utilisation or subjected to more frequent ramping as it is now the case with increasing share of intermittent renewable energy.
According to media reports the draft of the National Electricity Policy (NEP) 2021 which is yet to be made public, India is likely to add new coal-fired capacity, though it recommended tighter technology standards to reduce pollution. The draft report apparently observes that while India is committed to add more capacity through non-fossil sources of generation, coal-based generation capacity may still be required to be added in the country as it continues to be the cheapest source of generation. Media reports also quote from the draft report that phasing in renewable energy sources and phasing out conventional sources such as coal and natural gas rapidly could lead to instability in the electricity grid, potentially causing blackouts. While suggesting flexible use of coal-fired and natural gas-fired power to ensure grid stability in the coming years, the draft policy supposedly lists promoting clean power as its primary objective. However, the draft is also reported to state that all future coal-based plants should only deploy so-called “ultra-super critical” (USC) less-polluting technologies “or other more efficient technology”. A 10 GW (giga watt) coal plant based on ultra-super critical technology will generate 60 billion kWh (kilowatt hour) of electricity at 70 percent plant load factor. USC with heat rate of 1870 (kilo calories) kcal/kWh compared to 2530 kcal/kWh of sub-critical plants will save 9.9 million tonnes of coal and corresponding emissions. To achieve the same level of emission saving through solar-plants solar capacity of 100 GW will be required.
India has achieved 92.97 GW of renewable energy (RE) capacity till February this year, while 50.15 GW (gigawatt) is under various stages of implementation, Parliament was informed. India has set an ambitious target of achieving 175 GW of installed RE capacity (excluding large hydropower) by 2022. India has the potential of 10,97,465 MW of RE including 7,48,990 MW (megawatt) of solar, 3,02,251 MW of wind energy and 21,133.62 of small hydro (with the capacity of up to 25 MW each). As much as 170.14 GW of renewable energy capacity, excluding large hydropower units, has either been installed or under various stages of development or bidding at February-end this year, Parliament was informed. The statement assumes significance in view of India’s ambitious target of having 175 GW installed renewable energy capacity by December 2022. The government has set a target of achieving 175 GW installed renewable energy capacity (excluding large hydro) by December 2022.
Eighteen percent of India’s urban population is living in cities with renewable energy targets according to the 2021 edition of REN21’s Renewables in Cities Global Status Report. For India, the report has particular significance as several “smart cities” have embraced renewables, seeing a significant growth in on-site generation of solar PV. Thirteen cities have renewable energy targets or policies in 2020. This covered 67.6 mn people. It highlights the tangible steps and investments into renewable energy that cities have taken around the world in order to battle emissions to prevent climate change and air pollution. The report is also the only stock-taking of cities’ energy transition efforts worldwide, and reveals that the number of cities that have enforced partial or complete bans on fossil fuels jumped fivefold in 2020. Over one billion people around the world live in cities with a renewable energy target or policy. For the second year, REN21 takes the temperature of how cities worldwide use renewable energy to battle emissions to prevent air pollution and climate change.
The northeastern state of Assam has a renewable energy potential of 14,487 MW with solar energy taking the largest share. According to the data provided in Parliament, solar energy has the highest potential in the state with 13,760 MW capacity, followed by biomass with 279 MW, wind energy with 246 MW, and small hydro projects with 202 MW capacities. It showed that geothermal energy and tidal energy had no potential in the state.
Andhra Pradesh, a major producer of RE, had an installed RE capacity of about 8,534 MW till 28 February 2021, according to the latest data. Of the 8,534 MW capacity installed, wind energy projects took the largest share with 4,084 MW capacity, followed by solar energy with a capacity of 3,858 MW commissioned, according to the latest status report by the state’s nodal agency for implementation of RE programmes, New and Renewable Energy Development Corp of Andhra Pradesh. According to the renewable energy status update, total solar capacity commissioned up to 2019-20 was about 3,522 MW. During 2020-21, the total capacity of solar and wind projects commissioned stood at 339.45 MW. Out of this, solar and wind capacities were 336 MW and about 4 MW, respectively. The state commissioned a total of 103 MW capacity till 28 February 2021 in small hydro projects, while biomass, biomass energy co-generation, and bagasse projects contributed a total of 443 MW to the state’s renewable energy capacity. The share of municipal solid waste and industrial waste capacity stood at 47 MW till February 2021. The total renewable energy capacity commissioned up to 2019-20 in the state was 8,194 MW.
Goa has signed an MoU (Memorandum of Understanding) with the German-based Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH for developing a state energy plan and 100 percent renewable energy roadmap for Goa under the Indo-German program on Access to Energy in Rural Areas. Aimed at creating a strategic unit to develop, maintain and implement the multi-sectoral energy action plan, the MoU has been inked on the advice of the Union ministry for new and renewable energy. The electricity department will coordinate with key departments and steer the process of developing the renewable energy roadmap as well as state energy plan in consultation with GIZ and its partners.
NTT India, through its data centre services arm NTT Netmagic, is in the process of setting up a captive renewable energy power plant in Tamil Nadu. The company did not specify the amount of investment in the power plant and the number of jobs this will create for the state. NTT has a goal to ensure that almost 100 percent of the power needs of its data centres are met through renewable energy, and is hence either setting up their own captive power plants or buying third-party power. NTT has already set up a 62.5 MW plant in Maharashtra, and a 24/27 MW hybrid wind solar plant in Karnataka. The move is part of NTT’s plans to invest around $2 bn in the expansion of data centers, networks, and solar power projects in India.
The rooftop solar market is expected to pick up pace in the first quarter (Q1) of 2021 and is estimated to add 475 MW capacity in this period, according to a recent report by renewable energy consultancy firm Bridge to India. Coronavirus-induced hardships persisted in Q4 2020 and had pulled down the installation numbers. According to the report, project commissioning of solar projects was up 55 percent quarter-on-quarter (q-o-q) but increase in the execution cost had slowed down the progress. Whereas, actual capacity addition of 998 MW was marginally below estimates. 14 new utility-scale solar tenders aggregating 7,764 MW were issued in Q4 2020, increasing tender issuance by 120 percent over Q3 2020. However, project allocation was down 16 percent q-o-q, with only eight auctions completed in the quarter with total awarded capacity of 3,249 MW.
BHEL (Bharat Heavy Electricals Ltd) has bagged its first ever overseas order for a grid- connected solar power project in Mauritius. The project will be set up by BHEL at Tamarind Falls, Henrietta (Phase II), Mauritius on Engineering, Procurement and Construction (EPC) basis. The contract has been awarded to BHEL by CEB (Green Energy) Co. Ltd, Mauritius, a wholly-owned subsidiary of Central Electricity Board, Government of Mauritius. The project is funded under Government of India’s Line of Credit and has been secured by BHEL through a competitive bidding process. The project will be executed by BHEL’s Solar Business Division, Bengaluru and International Operations Division, New Delhi. It marks the consolidation of BHEL’s presence in Africa, where it has been active for more than four decades with electricity generation projects (approximately 2,100 MW) and equipment supplies in 23 African countries.
Adani Green Energy Ltd (AGEL) is set to acquire 75 MW operating solar projects of Sterling & Wilson, a Shapoorji Pallonji group company, for ₹4.46 bn. AGEL has signed definitive agreements with Sterling & Wilson for the acquisition of 100 percent stake in two special purpose vehicles (SPVs) that own 75 MW operating solar projects at Telangana. According to the company, the projects were commissioned in 2017. With this acquisition, AGEL will increase its operating renewable capacity to 3,470 MW with a total renewable portfolio of 15,240 MW. AGEL had announced that was set to acquire 50 MW solar asset in Telangana from Toronto-headquartered SkyPower Global. The firm has signed definitive agreements with SkyPower to acquire 100 percent stake in a SPV.
To reduce the cost of electricity in the government schools of the state, the Punjab government would install 3 kW solar panels in 183 primary schools at a cost of ₹27.4 mn. Solar energy projects were being set up in 3214 schools at a cost of ₹975.5 mn. 183 more government primary schools of Ferozepur district would get solar energy with this new initiative.
To promote solar energy in Haryana, the Dakshin Haryana Bijli Vitaran Nigam announced a scheme with subsidy of 40 percent for a 3 kW plant in homes as per the guidelines of the MNRE. A subsidy of 20 percent subsidy will be for four to 10 kW for installing solar system from listed firms. By installing a solar system of one kW, the consumer can save up to ₹6,000 in a year and the expenditure done for installing this solar system could be retrieved in five-six years. Rates have been set to install solar systems on the rooftop. The consumer is required to pay only the remaining amount after adjusting the rebate amount to the firm. The consumers can reduce their electricity bills by installing solar systems as per their requirement.
NTPC Ltd is executing a 230 MWac (megawatt alternating current) ground Solar project is also being established at Ettayapuram near Tuticorin in Tamil Nadu. Sangam Renewables has commissioned a 16 MW solar project in Gavhankund, Maharashtra. The project has been commissioned through subsidiary Waacox Energy Private Ltd.
TP Saurya Ltd, a wholly-owned subsidiary of Tata Power, has signed a power purchase agreement with Tata Steel to develop a 15 MW solar project at Jamshedpur in Jharkhand. The energy will be supplied to Tata Steel under a power purchase agreement valid for a period of 25 years from scheduled commercial operation date. The project is required to be commissioned within six months from the date of power purchase agreement’s execution. The plant is expected to generate an average of 32 mn units of energy per year and will annually offset average 25.8 mn kg of carbon dioxide. Tata Power’s renewable capacity will increase to 4,047 MW out of which 2,687 MW is operational and 1,360 MW is under implementation, including 15 MW won under this power purchase agreement.
It’s the largest floating solar power project in the country, and perhaps in the world when it is commissioned. The 100 MW project, being set up at NTPC’s Ramagundam thermal power plant reservoir near Peddapalli in Telangana, is slated to be commissioned by May this year. Coming up at a cost of ₹4.23 bn, the project will have 450,000 PV (photovoltaic) panels floating on a 450-acre area on the reservoir, with room for further capacity addition in the future. The world’s largest floating solar power plant to be mooted so far is the 600 MW project to be set up on the Omkareshwar dam on river Narmada in Khandwa district of Madhya Pradesh. However, this ₹30 bn power project will commence power generation only by 2022-23. The largest dam-based floating power project in the world (41 MW) is coming up at Hapcheon dam in South Korea, even as Singapore has taken the plunge with a 5 MW floating solar project in Johor Strait off its coast. The Ramagundam floating solar project is part of plans to set up a 217 MW floating solar power capacity in south India.
The electric-cum-solar ferry boat that is being built by Aquarius Shipyard at Divar for the river navigation department (RND) will be ready by September-October. Given that the solar-powered vessel costs more than ₹40 mn to build, the navigation department currently does not see the viability in replacing the existing diesel-powered ferry boats which cost approximately ₹6-7 mn to build. Meanwhile RND is also phasing out older conventional ferry boats and is introducing newer ferryboats along existing ferry routes.
Bihar launched the much-touted Ethanol Production Promotion Policy, 2021. The state cabinet approved it, making Bihar the first state in the country to have an ethanol promotion policy under the National Policy of Biofuels, 2018. The state ethanol policy allows the extraction of ethanol, which was restricted to sugarcane, from surplus quantities of maize as well. An investor will get an additional government subsidy of 15 percent of the cost of plant and machinery up to a maximum of ₹50 mn, in addition to the existing incentives under the Bihar Industrial Investment Promotion Policy, 2016. A tripartite agreement between investors, banks and oil manufacturing companies will act as collateral for secured loans for establishing greenfield standalone ethanol manufacturing units in the state. The policy will create employment and help reduce pollution as currently, bioethanol blending in petrol in India stands at 6.2 percent, and the government has set a target of 20 percent bioethanol blending of petrol by 2030.
The tariffs for solar power could increase between ₹0.25-0.45/kWh (kilowatt hour) due to Basic Customs Duty (BCD) on imported solar cells and modules, according to a rating agency. The MNRE’s announcement of the BCD implementation on imported solar cells (25 percent) and modules (40 percent) starting 1 April could increase the solar power tariff. According to CARE Rating solar power prices could rise between ₹0.25-0.30/kWh if only cells are imported while the cost will rise further to ₹0.40-0.45/kWh if modules are imported. The cheapest solar tariffs discovered in the auctions in 2020 was ₹1.99/kWh which was possible due to imports and cheap overseas funds. India has set an ambitious target of achieving 175 GW of installed renewable energy capacity, including 100 GW of solar power by 2022. The long-term renewable energy capacity target stood at 450 GW by 2030, wherein solar power will have the lion’s share. The BCD will give impetus to create a self-sustaining ecosystem for solar equipment manufacturing in India. But solar makers located in the Special Economic Zones (SEZs) had urged the government to exempt BCD applicable on them.
The two 1,000 MW atomic power generation units of Nuclear Power Corp of India Ltd (NPCIL) at Kudankulam in Tamil Nadu account for the bulk of the 5,820 MW forced power plant shutdowns in the Southern states. The two big atomic power plants are not generating power. According to Power System Operation Corp Ltd (POSOCO) the first unit stopped for ‘reactor side maintenance’. The second unit had stopped in January this year due to ‘hydrogen leak in stator’ and the tentative date of its restoration is 7 April this year. The power generated by the two units powers Tamil Nadu, Karnataka, Kerala and Puducherry. India’s atomic power company, NPCIL is building four more plants – Units 3, 4, 5 and 6 – of 1,000 MW each in Kudankulam with Russian technology.
Pakistan raised objections to the designs of Pakal Dul and Lower Kalnai hydropower plants in Jammu and Kashmir and sought more information on the projects in Ladakh sanctioned after the abrogation of Article 370 as the Indus Commissioners of the two countries met. On its part, India justified its stand on the designs. The Pakal Dul Hydro Electric Project (1,000 MW) is proposed on the Marusudar river, a tributary of the Chenab river, in Kishtwar district in Jammu and Kashmir. The Lower Kalnai project is proposed in Kishtwar and Doda districts. The two sides also discussed a host of other issues under the Indus Waters Treaty during the annual Permanent Indus Commission meeting. India has since cleared several hydropower projects for the region. According to the treaty, India has been given the right to generate hydroelectricity through run-of-the-river projects on the western rivers subject to specific criteria for design and operation. The treaty also gives right to Pakistan to raise objections on design of Indian hydroelectric projects on the western rivers.
The Dagmara multipurpose hydro power project, which would come up on Kosi River in Suapul district, would provide several additional benefits to flood-prone districts of north Bihar, besides generating low-cost electricity for the state. The overall cost of electricity in the state would be reduced once the Dagmara project begins generation of hydro power.
Wind power tariffs dropped to two-and-half year low to ₹2.77/kWh with Adani Renewables Energy Holding emerging as the lowest bidder in auction conducted by Solar Energy Corp of India (SECI). Adani Renewable Energy Holding quoted ₹2.77/kWh for 300 MW capacity, while Ayana Renewable Power quoted ₹2.78/kWh for a similar capacity. Evergreen Power Mauritius quoted ₹2.78/kWh for 150 MW. JSW Future Energy quoted the same bid for 450-Mw, data available with MSTC showed. Other bidders who participated in the auctions are Azure Power India, O2 Power SG PTE, Shirdi Sai Electricals, AMP Energy Green, Tunga Renewable Energy, ReNew Vyan Shakti, AMP Energy Green and Halvad Renewable. SECI had last year issued the request for selection of wind power developers for setting up of 1200 MW inter-state transmission system-connected wind power projects in India (Tranche-X). It will enter into power purchase agreements with the selected for a period of 25 years. In the last tranche –IX of wind auctions conducted by SECI, JSW Solar placed a winning bid of ₹3.01/kWh for 1,000 MW, Vena Energy Vidhyut bagged 160 MW at ₹3.17/kWh tariff and Inox Wind Infrastructure won 50 MW with ₹3.41/kWh bid.
Adani Green Energy has commissioned a 100 MW wind power project in Kutch, Gujarat, through its subsidiary AWEKTL. With this project, the company has reached an operational wind generation capacity of 497 MW and a total operational renewable capacity to 3,345 MW. Adani Green has a total renewable capacity of 14,815 MW including 11,470 MW that have been awarded and are at different stages of implementation. The plant has a power purchase agreement with the Solar Energy Corp of India at ₹2.82/kWh.
ReNew Power, India’s leading renewable energy firm, has commissioned a 300 MW wind power generation facility at Kutch, Gujarat. The project would provide clean power to Haryana and Orissa at a rate of ₹2.44/kWh. The project would also provide direct employment to over 200 people. The project was awarded to ReNew’s subsidiary ReNew Wind Energy in an e-reverse auction conducted by the Solar Energy Corp of India.
The world’s wind industry installed a record 93 GW of new capacity last year but at least double that amount is needed every year to limit global warming, a report by the Global Wind Energy Council (GWEC) showed. New wind capacity rose by 53 percent last year from the year before despite challenges due to the COVID-19 crisis. However, the world needs to install at least 180 GW of new wind energy every year to limit global warming to well below 2°C above pre-industrial levels, and up to 280 GW annually to meet net zero emissions by 2050. Total global wind power capacity is now at 742 GW, helping the world to avoid over 1.1 billion tonnes of carbon dioxide annually, which is equivalent to the annual CO2 (carbon dioxide) emissions of South America. But the current rate of wind power deployment will not be enough to reach net zero emissions by the middle of this century.
China’s energy administration, as part of a drive to reduce greenhouse gas emissions, will inspect renewable power consumption across the country, with the goal of reducing power wastage from non-fossil fuel sources. China, the world’s biggest emitter of greenhouse gases, has pledged to bring emissions to a peak by 2030 and propel solar and wind power generating capacity to 1,200 GW from 535 GW in 2020. The inspection, which will run until October, will focus on how much electricity generated by hydropower plants, wind farms and solar stations was not absorbed by power grids during last year and the first half of this year according to the National Energy Administration (NEA). China has strived to increase consumption of renewable power by setting the minimum level of power purchased from non-fossil fuel sources at each region, but typically grids lack capacity to absorb all the electricity generated from these sources. A draft document from the NEA in February showed that grid companies are asked to steadily increase their purchases of non-fossil fuel power to 40 percent by 2030 from 28.2 percent in 2020. China should accelerate development of nuclear power to help meet Beijing’s pledges to bring greenhouse gas emissions to a peak before 2030 and become “carbon neutral” by 2060, according to industry delegates at the annual session of parliament. According to China’s 2021-2025 five-year plan China would raise total nuclear capacity to 70 GW by the end of 2025. Capacity reached 51 GW at the end of last year, falling short of its 58 GW target. But experts warned that current targets did not match the country’s climate ambitions, and construction should be stepped up. The country’s nuclear sector has been hit by long construction delays at high-profile projects, concerns over costs and a slowdown in new approvals following the 2011 Fukushima disaster in Japan. China’s energy regulator acknowledged in January that concerns about “quality management” needed to be addressed, noting that some reactor projects had been launched without adequate preparation. According to experts attending parliament China needed to improve communications with the public about the safety of nuclear power, and should also promote the use of nuclear power in residential heating.
Vietnam plans to cut the feed-in tariff for rooftop solar panels by 30.8-37.9 percent in a bid to reduce pressure on the national power grid following a recent boom in installed capacity. Vietnam has had one of the fastest growing renewable energy markets in Asia in recent years, but the development of its transmission system has lagged, leaving several of its new solar power plants operating below designed capacity. The Ministry of Industry and Trade is planning to cut the tariff to ₵5.2-5.8/kWh from ₵8.38 cents. The new tariff is expected to be effective from April. Rooftop solar installation had boomed over the past three years, with Vietnam’s total installed rooftop solar panel capacity rising to 925.8 MW from 377.9 MW at the end of 2019. Under the plan, Vietnam would raise its total installed power generation capacity to 137.2 GW by 2030 from 69 GW at the end of 2020. The proportion of non-hydro renewable would be raised to 29 percent by 2030 and 44 percent by 2045.
Malaysia’s exports of palm-based biodiesel are likely to fall this year to their lowest since 2017 due to European Union restrictions and the coronavirus pandemic according to the Malaysian Biodiesel Association (MBA). Exports from Malaysia are estimated to fall to 350,000 tonnes from 378,582 tonnes in 2020. The European Union accounts for nearly 80 percent of Malaysia and Indonesia’s exports of palm methyl ester (PME), the bio component of biodiesel that comes from palm oil. Exports, however, have slowed since the bloc in 2019 moved to cap the use of palm oil for transport fuel at 2019 levels due to deforestation concerns, with an aim to phase out its use by 2030. Some member states will also phase out palm biodiesel before the 2030 deadline.
The Biden administration set a goal to cut the cost of solar energy by 60 percent over the next decade as part of an ambitious plan to decarbonize the United States’ power sector by 2035. According to the US Department of Energy (DOE) the goal accelerates its previous utility-scale solar cost target by five years. For the US power grid to run entirely on clean energy within 15 years, a key pillar of President Joe Biden’s climate change agenda, solar energy will need to be installed as much as five times faster than it is today. To get there, the agency committed to spending $128 mn on technologies including perovskite solar cells, which are regarded as a promising cheap alternative to the silicon cells that dominate the market. Funds will also support research on cadmium telluride and concentrating solar technologies. Part of the funding will also seek to extend the lifetime of existing photovoltaic solar plants by improving components like inverters, cables and racks. The cost of generating power from the sun has dropped more than 80 percent in the last decade, making it competitive with plants powered by fossil fuels like coal and natural gas. Solar energy now accounts for the largest share of annual new generating capacity in the United States (US), according to government data. DOE has set ambitious targets for solar in the past. In 2017, the cost had hit its goal three years ahead of schedule due to a drop in the cost of solar panels tied to expanded production in China.
The US departments of agriculture and energy plan to change two closely watched monthly reports to account for the rapid growth of renewable diesel, a clean burning fuel made from soy and other fats and oils. Surging demand for renewable diesel is part of a larger global transition to green fuels, and could increase prices of crops such as soybeans and canola it is derived from. The US Department of Agriculture (USDA) plans to adjust how it reports soyoil used in biofuel in its monthly World Agriculture Supply and Demand Estimates (WASDE) report as soon as this spring. The changes would be made only after the US Energy Information Administration (EIA) begins reporting more detailed data on the renewable diesel sector according to USDA’s World Agricultural Outlook Board. Renewable diesel can power conventional auto engines without being blended with diesel derived from crude oil, making it attractive for refiners aiming to produce low-pollution options.
US alternative fuels supplier Clean Energy Fuels Corp and its largest shareholder, European oil and gas producer Total SE, announced terms of a new joint venture focused on renewable natural gas (RNG) production. The joint venture (JV), owned equally by both firms, will have an initial firm commitment of $100 mn to build renewable gas production facilities. That amount could be increased to $400 mn later as “development opportunities progress”. Total will also provide credit support to the JV for building so-called ‘downstream’ infrastructure, which includes refineries and fuel stations. Carbon-negative RNG is produced when carbon emissions are captured from dairies and turned into a transportation fuel, reducing the harmful effects of long-term climate change. Major energy firms have set targets to reduce greenhouse gas emissions or are exploring investments in renewable energy and green technology amid rising pressure from investors and activists. US oil major Exxon and Chevron are also investing in carbon-removal technology, as traditional global oil and gas firms attempt to invest more in green energy and tackle climate change.
Solar installations in the US are expected to quadruple by 2030 thanks to the extension of a key industry subsidy late last year and booming demand for carbon-free power. The sector will install 324 GW of capacity over the next decade, more than three times the nearly 100 GW installed by 2020 according to the US Solar Energy Industries Association (SEIA). The 324 GW of solar energy would produce enough electricity to power about 60 mn homes, or around 40 percent of homes in the country. Just 3 percent of US electricity is generated from the sun, but SEIA hopes that will rise to 20 percent over the next decade. Installations rose 43 percent last year to 19.2 GW, an annual record for the industry. Utility-scale projects, which account for most of the market, experienced only minor disruptions due to coronavirus pandemic-related shutdowns. Residential installations took a large hit in the second quarter due to the pandemic, but ended the year up 11 percent at a record 3.1 GW.
United States Agency for international development (USAID) and US international development finance corporation (DFC) are jointly sponsoring loan portfolio guarantee to enable Indian small and medium enterprises (SMEs) to access reliable power and cut costs. The loan worth $41 mn (about ₹2.97 bn) will help finance investments by SMEs in renewable energy solutions, inclusion rooftop solar installations. USAID will continue its support by providing technical assistance to address quality and safety concerns in the rooftop solar market. Once these credit guarantees lower the financial hurdle for installing rooftop solar, India will realise numerous benefits resulting from transition to this green technology.
The nuclear regulator in United Arab Emirates (UAE) has issued an operating licence for the second unit of the Barakah nuclear power plant. The plant in the Al Dhafrah region of Abu Dhabi, one of the seven emirates making up the UAE and the nation’s capital, is the first nuclear power station in the Arab world and part of the Gulf oil producer’s efforts to diversify its energy mix. Barakah’s Unit 1 was connected to the national power grid in August and in December reached 100 percent of reactor power capacity during testing. The project has faced delays, some related to training staff as the country builds a nuclear industry from scratch. Construction on Unit 1 began in 2012 and the plant was expected to start up in 2017, but FANR did not grant a licence to the operator Nawah Energy Company until February 2020. When completed Barakah, which is being built by Korea Electric Power Corp (KEPCO), will have four reactors with 5,600 MW of total capacity – equivalent to around 25 percent of the UAE’s peak demand.
Several Spanish clean energy companies are planning stock market listings or stake sales within the next two years, taking advantage of a market boom in green assets to raise funds to build more wind farms and solar parks. Rising demand for environmentally friendly investments is focusing attention on Spain’s under-exploited solar and more established wind sector, helped by government targets in line with international requirements to decarbonise economies and stem climate change. Iberdrola, Spain’s biggest power firm, will plough some of its €150 bn investment plan for the next decade into tripling its renewable capacity worldwide.
Italy’s Eni and state lender Cassa Depositi e Prestiti (CDP) have formed a joint venture (JV) to invest around €800 mn over five years in solar and wind energy production. GreenIT, which is 51 percent owned by Eni and 49 percent by CDP unit CDP Equity, will target an installed capacity of approximately 1,000 MW by 2025. The move is aimed at stepping up Italy’s efforts to increase renewable energy generation, in line with the objectives set by the 2030 Integrated National Energy and Climate Plan submitted to the EU (European Union) Commission at the end of 2019. Italy is working on a new plan for energy transition that is expected to be ready by May. Rome plans to cut its carbon emissions by around 60 percent by 2030, and to use €80 bn of EU funds for energy transition in the next five years. Italian refiner Saras plans to spin off its renewable energy business and bring on board a partner to help fund future development. Saras, which operates one of Italy’s biggest refineries in Sardinia, is developing a clean energy business that includes wind and solar plants, biofuels and hydrogen. It is looking to reach 200 MW of wind capacity this year and build new renewable capacity of up to 400 MW in 2024 to reach an overall 500 MW to navigate the energy transition.
French renewable energy producer Neoen announced plans to more than double its capacity by the end of 2025, by rapidly expanding its presence in the countries where it already operates. The group, which owns Australia’s “Victorian Big Battery” project, is targeting capacity of at least 10 GW in operation or under construction by the end of 2025, up from 4.1 GW at end of December – by adding at least two gigawatts every year. Neoen, which mainly generates electricity from wind and solar plants, produces the bulk of its electricity in Australia and Europe, but has also been expanding in Latin America.
TechnipFMC and Norway’s Magnora will join forces to develop floating wind power projects. The partnership, called Magnora Offshore Wind, plans to apply for acreage off Scotland and Norway in tenders this year and will explore production of emissions-free hydrogen. Scotland’s ScotWind leasing program is expected to attract interest from offshore wind developers and oil producers seeking to increase their renewable power portfolios. Norway is also planning to award concessions for offshore wind power in two areas in the North Sea, including one suitable for floating wind turbines.
BP Plc’s greenhouse gas emissions from oil and gas it produces and sells at station pumps dropped by 9 percent in 2020 from a year earlier, partly as a result of a sharp drop in energy demand due to the coronavirus pandemic. According to BP, which aims to produce net zero emissions from its own oil and gas production by 2050, its total greenhouse gas emissions reached 328 MT (million tonnes) of carbon dioxide equivalent. BP includes emissions from the combustion of its products when its clients, for example motorists, use them but it excludes gases from oil products BP sells to customers but which it bought from other producers.
Indian refiners deepen cuts to Saudi oil purchases in May
6 April: Indian state refiners will buy 36 percent less oil from Saudi Arabia in May than normal, in a sign of escalating tensions with Riyadh even after the Kingdom supported the idea of boosting output from OPEC (Organization of the Petroleum Exporting Countries) and allied producers. Energy relations between India, the world’s third-biggest oil importer and consumer, and Saudi Arabia have soured as global oil prices spiked. New Delhi blames cuts by the Saudis and other oil producers for driving up crude prices as its economy tries to recover from the pandemic. State-run refiners have placed orders to buy 9.5 mn barrels of Saudi oil in May, compared with the previously planned 10.8 mn barrels. The refiners – Indian Oil Corp (IOC), Bharat Petroleum Corp Ltd (BPCL), Hindustan Petroleum Corp Ltd (HPCL) and Mangalore Refinery and Petrochemicals Ltd (MRPL) – normally buy 14.8 mn barrels of Saudi oil a month. India suggested that refiners look for energy alternatives to Gulf oil, its main source of crude.
Source: Reuters
6 April: Indian Oil Corp (IOC) has made its first purchase of Norway’s Johan Sverdrup crude, buying 4 mn barrels via a tender as it speeds up diversification of crude imports, traders said. IOC will take delivery of 2 mn barrels of the North Sea crude in each of May and June. Further details on the trades were not yet clear. India last discharged a 1 mn barrel cargo of Johan Sverdrup crude in September 2020, the data show. Indian refiners, meanwhile, are looking at crude from the United States, West Africa, South America and the Mediterranean as alternative options as they diversify away from Middle Eastern oil, traders said.
Source: The Economic Times
6 April: Fuel prices in the country remained unchanged with oil marketing companies continuing on the pause mode and keeping petrol and diesel prices unchanged for seven consecutive day. Accordingly, pump price of petrol and diesel remained at previous days level of ₹90.56 and ₹80.87 a litre respectively in the capital. Petrol and diesel fell by 22 paisa and 23 paisa per litre respectively in the wake of global softening of oil prices. OMCs (Oil Marketing Companies) have decided to pause price revision as they want to watch the crude price movement that has fallen to around $62.5 a barrel from remaining above this level. Across the country as well the petrol and diesel prices remained static but its retail levels varied depending on the level of local levies on respective states. In Mumbai, petrol continues to be priced at ₹96.98 a litre and diesel at ₹87.96 a litre. Premium petrol, however, continues to remain over ₹100 a litre in the city as is the case with several cities across the country.
Source: The Economic Times
3 April: India strongly pitched for easing cuts in crude oil production saying high oil prices are hurting the consumption-led recovery of several countries including it. The Ministry of External Affairs (MEA) Arindam Bagchi said that crude supply should be market determined rather than artificially managed. At the same time, he said India has noted announcements by OPEC and OPEC (Organisation of the Petroleum Exporting Countries) Plus to effect a slight easing of crude production cuts. The OPEC is an influential entity that plays a key role in policy formulations relating to crude production. The MEA said the Ministry of Petroleum and Natural Gas is reviewing closely the global crude supplies and price situation.
Source: The Economic Times
1 April: After raising cooking gas or LPG (liquefied petroleum gas) prices by ₹125 per cylinder last month, state-owned oil firms announced a ₹10 per cylinder cut in LPG rates on softening international oil prices. A 14.2-kg LPG cylinder — both for subsidised and market price users — will cost ₹809 from 1 April as against ₹819 currently, Indian Oil Corp (IOC) said. The price cut, which traditionally is announced on the day the change is effective — four times the rates went up in a span of one month — was announced a day ahead of the second phase of voting in West Bengal. However, due to growing worries about rising COVID cases in Europe and Asia and concerns over the side effects of the vaccine, prices of crude oil and petroleum products in the international market softened in the second fortnight of March 2021. LPG prices had gone up by ₹125 per 14.2-kg cylinder since the beginning of February, price data from state-owned oil marketing companies showed. LPG is available only at one rate, market price, across the country. The government, however, gives a small subsidy to select customers. However, this subsidy has been eliminated in metros and major cities through successive price increases over the past couple of years. So, in places like Delhi, there is no subsidy paid to customers since May 2020 and all LPG users pay the market price, which has now been reduced to ₹809.
Source: The Economic Times
1 April: Indian state retailers’ gasoline and gasoil sales in March rose by 27.4 percent and 28.6 percent, respectively, from the low base of last year, when a nationwide lockdown to stem the spread of the coronavirus hit consumption, preliminary industry data showed. State companies – Indian Oil Corp (IOC), Hindustan Petroleum Corp Ltd (HPCL) and Bharat Petroleum Corp Ltd (BPOCL) – own about 90 percent of India’s retail fuel outlets. The three companies sold 2.47 million tonnes (mt) of gasoline and 6.41 mt of gasoil, the data showed.
Source: The Economic Times
4 April: Reliance Industries Ltd (RIL) and its partner BP Plc of UK have sought bids for sale of 5.5 million metric standard cubic meter per day (mmscmd) of additional natural gas that will be available for sale from their eastern offshore KG-D6 block. The e-auction is slated for April 23 and the gas supply will start from late April or early May, according to the tender document. Bidders will have to quote a price linked to Platts JKM (Japan Korea marker), the liquefied natural gas (LNG) benchmark price assessment for spot physical cargoes. At current price, the lowest price for the 5.5 mmscmd of gas that RIL-BP are auctioning comes to near $6.5 per mmBtu. But they will be entitled to a maximum of $3.62 per mn metric British thermal units (mmBtu) ceiling fixed by the government for a six-month period to 30 September. The gas to be produced from the fields has been granted marketing and pricing freedom but this is subject to a ceiling price that the government fixes every six month. The ceiling price for 1 April to 30 September 2021 is $3.62 per mmBtu. Bidders can seek a supply tenure of 3 to 5 years. The minimum volume one could ask for is 0.01 mmscmd and the maximum could be the full volume on offer. RIL has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 — the largest among the lot — were brought into production from April 2009 and MA, the only oilfield in the block was put to production in September 2008. While the MA field stopped producing last year, output from D-1 and D-3 ceased in February. Other discoveries have either been surrendered or taken away by the government for not meeting timelines for beginning production. RIL is the operator of the block with 66.6 percent interest while BP holds the remaining stake.
Source: The Economic Times
3 April: Natural gas production remains a loss-making proposition for most fields for the Indian upstream producers as government-dictated gas price remains at its lowest level, rating agency ICRA has said. The domestic gas price notified at $1.79 per mn metric British thermal units (mmBtu) for the six months beginning 1 April remains the lowest since the institution of the modified Rangarajan formula. Additionally, the ceiling on price for gas produced from deep water, ultra deepwater, high temperature and high-pressure fields has also been announced at $3.62 per mmBtu for April-September 2021-22 which is 10.8 percent lower than the price ceiling of $4.06 for October-March 2020-21 which would dampen the development of such projects. As per an ICRA note, at such low gas prices, gas production remains a loss-making proposition for most fields for the Indian upstream producers notwithstanding some decline in oil field services/equipment costs. However, the depreciation of Indian Rupee against US dollar, would aid the realisations of the gas producers but only to an extent. The absence of a floor and sustained low prices as has been seen in the past few years post implementation of the modified Rangarajan formula make exploration and production unviable even for benign geologies, ICRA noted. Spot LNG (liquefied natural gas) prices had breached $30 per mmBtu in February 2021 due to increase in oil prices, unplanned outages at export facilities in several countries, multiple cold waves, high shipping rates and delays in the Panama canal. Nevertheless, the supply overhang remains with about 37.6 million tonnes per annum (mtpa) liquefaction capacity added in 2019 and 27.8 mtpa in 2020, besides which capacity additions till 2025 would be in excess of incremental demand which will weigh on gas prices, ICRA said. From the consumers’ perspective, the low domestic gas price is a positive. During first 11 months of 2020-21, the gas supply from domestic sources remained low at 22 percent of the allocated quantity for gas-based power generation units as per the data from Central Electricity Authority.
Source: The Economic Times
2 April: Continuing its thrust on the usage of clean fuel, Gujarat added the highest number of compressed natural gas (CNG) stations in India during the April-January period in 2020-21. In fact, the state accounted for 20 percent of the new CNG stations developed in the country during the period. The number of CNG stations in Gujarat increased by 102 to 738 by the end of January 2021 as compared to 636 CNG stations on 1 April 2020. The information was released by the rating agency Care Ratings, which cited the data from Petroleum and Planning Analysis Cell, the Union ministry of petroleum and natural gas. Gujarat figures include CNG stations in Dadra and Nagar Haveli, Daman and Diu. The total number of CNG stations across the country increased by 506 to 2,713 as on January. The number was 2,207 at the beginning of the fiscal 2021. Gujarat was followed by Uttar Pradesh (89 new refuelling stations), Maharashtra (70), Odisha (47), Haryana (40), and Rajasthan (34). Gujarat is covered 100 percent under the city gas distribution network with the Petroleum and Natural Gas Regulatory Board (PNGRB) awarding natural gas retailing licences to all the geographical areas in the state. As a result, more and more CNG stations are being set up in the state, said an industry source. The government’s push for cleaner fuel along with a deeper penetration of natural gas have led to the establishment of more CNG stations in the state, added industry players. City gas distribution players estimate that the number of new CNG stations in Gujarat could be about 150 by the end of the 2020-21 fiscal.
Source: The Economic Times
1 April: Indraprastha Gas Ltd (IGL), India’s largest CNG (compressed natural gas) retailer, signed a long-term agreement to supply compressed natural gas to Delhi Transport Corp (DTC) buses. The 10-year CNG supply deal was signed by IGL Managing Director A K Jana and DTC Managing Director Vijay Kumar Bidhuri, the company said. The gas supply agreement is valid till December 2030, it said. DTC is the largest CNG-powered bus service operator in the world with a fleet size of 3,762 buses and is also in the process of procuring 1,000 new CNG buses which would shortly be plying on the roads of the national capital. IGL retails CNG to automobiles and piped natural gas to households for cooking purposes and industries as fuel in 10 cities including Delhi, Noida, Greater Noida and Ghaziabad (in Uttar Pradesh). It sells fuel to over 12 lakh vehicles in the national capital region (NCR) through a network of 560 CNG stations. Besides, it supplies piped natural gas to nearly 16 lakh households in these cities.
Source: The Economic Times
31 March: Hindustan Petroleum Corp Ltd (HPCL) has acquired the balance 50 percent equity stake in HPCL Shapoorji Energy Private Ltd (HSEPL) from SP Ports Private limited company. Post acquisition, HPCL’s stake in HSEPL gets enhanced to 100 percent, making HSEPL a wholly-owned subsidiary of HPCL. HSEPL is constructing a 5 million tonnes per annum (mtpa) LNG terminal (with provision for expansion to 10 mtpa) at Chhara in Gujarat’s Gir-Somnath district, at an estimated cost of about ₹43 bn which is likely to be completed by end of 2022. The terminal will have all facilities for receipt of LNG through ocean-going tankers, marine unloading, storage, LNG road tanker loading, regasification, and supply of regasified LNG to the gas grid. The acquisition is in line with the overall future strategy of HPCL to diversify its product portfolio and is an important step in the direction of having a strong presence in the total natural gas value chain. The percentage of natural gas in the overall energy basket of India is expected to grow from 6 percent at present to 15 percent by 2030 which makes it one of the important growth drivers in the future. HPCL, along with its joint venture companies, has a presence in CGD (City Gas Distribution) business in 20 Geographical Areas (GA) in 34 districts covering nine states in the country.
Source: The Economic Times
5 April: Coal India Ltd (CIL) arm NCL (Northern Coalfields Ltd) has said it supplied 87 percent of its total coal to electricity producers in the last fiscal year, thereby fulfilling the power aspiration of the country in these unprecedented times. NCL, the Singrauli-based miniratna company, surpassed its fiscal production milestone of 113 million tonnes (mt) and produced 115.05 mt in 2020-21 with 6.47 percent year-on-year growth. The company has also surpassed its annual overburden removal (OBR) target of 370 million cubic meters (mcm), and removed a whopping 374.17 mcm of overburden with a year-on-year growth of 15.76 percent in the last fiscal year, it said. Overburden is the material above coal seam that is required to be removed above coal layer for ready exposure. Also, 2.3 percent growth was observed in Merry-Go-Round (MGR) mode of coal transportation, the company said. NCL supplies about 52 mt of coal through dedicated MGR transportation mode which is directly linked to thermal power plants. In a crucial pro-environmental step, a remarkable decline of 24 percent was seen in coal transportation through road mode in spite of year-on-year growth in the company’s coal dispatch. NCL operates with 10 highly mechanised opencast coal mines spread in Singrauli and Sonbhadra districts of Madhya Pradesh and Uttar Pradesh, respectively. NCL is eyeing 130 mt coal production by 2023-24.
Source: The Economic Times
2 April: Adani Enterprises Ltd along with its wholly-owned subsidiary Gare Palma II Collieries Pvt Ltd (GPIICPL) has signed a pact with Maharashtra State Power Generation Co Ltd (MAHAGENCO) for development and operation of Gare Palma Sector II coal mine. The coal ministry had allocated the coal mine in Raigarh district of Chhattisgarh to MAHAGENCO in 2015, Adani Enterprises said. he coal block was allotted for development, operation and captive consumption of coal to its end use thermal power plants located at Koradi, Chandrapur 8- Parli. As per the approved mining plan, the peak rated capacity of mine is 23.6 million tonnes (mt) per annum with total mineable reserve of 553.177 mt for opencast mine. MAHAGENCO had floated a tender for selection of mine developer and operator for development and operation of Gare Palma II coal mine in March 2016. After a reverse auction, Adani Enterprises Ltd emerged as L-1 bidder. The contract period will be for 34 years, including for mine development and final mine closure.
Source: The Economic Times
1 April: India’s coal imports are to remain tapered over the fourth quarter of 2020-21 on the back of elevated import prices leading the players to resort to higher domestic coal consumption over imported coal, especially for non-coking coal, according to India Ratings and Research. It said overall coal imports were lower by 19 percent year on year (yoy) in February 2021 to 56.5 million tonnes (mt), driven by 5.2 percent month on month (mom) reduction in domestic power demand. It said that the share of imports in the total domestic consumption was 23.7 percent over April-December 2020. While domestic coal production improved marginally in February 2021 to 67.5 mt, it was lower 6.1 percent yoy. Overall, coal production and offtake were 2.9 percent and 5.0 percent lower yoy respectively over April 2020–February 2021. It said the average import prices for thermal coal continued to rise in March this year, especially South African coal, which increased 8-9 percent month-on-month.
Source: The Economic Times
6 April: Average spot power price rose by 65 percent to ₹4.06 per unit in March compared to the year-ago month at Indian Energy Exchange (IEX) mainly due to increase in demand on account of rise in temperature and revival of economic activities. According to IEX data, average spot power price in DAM (day-ahead market) was ₹2.46 per unit in March 2020 and ₹3.39 percent in February 2021. The IEX explained that the increase in price was mainly due to the increase in demand for electricity during the month due to sharp rise in temperature, revival of economic and commercial activities. During 2020-21, the DAM on the IEX, traded 60,416 mn units and registered 23 percent YoY (year on year) growth. The electricity market at IEX achieved an all-time high volume of 8,248.52 mn units in the month of March 2021 surpassing all the previous milestones. The robust volumes led to a 92 percent YoY growth in electricity market during the month, it said. The market faced transmission congestion on the inter-state transmission network due to which 24 mn units was lost during the month, representing 0.03 percent of total traded volume. Cumulatively for the fiscal year 2021, the IEX market performed spectacularly well despite the COVID-19 induced lock-down which resulted in the significant reduction in the demand for electricity in the country in the first two quarters of the year. The electricity market achieved all-time high volume of 73,941 mn units during the year leading to 37.2 percent year-over-year growth. As per the NLDC (national load dispatch centre) data for fiscal year 2021, national peak demand for electricity at 190 GW saw 3.5 percent growth while electricity consumption at 1,281 bn units was down 0.6 percent YoY.
Source: The Economic Times
5 April: India’s less industrialized states have led a recovery in electricity demand that began in September, government data showed. Power use in less industrialized states such as Bihar and Chhattisgarh in the east, and Uttar Pradesh and Punjab in the north, grew at over 10 percent each compared with the previous year, both for the quarter and the six months ending on 31 March, the data showed. All these states – which have high agricultural and residential power consumption – consumed more electricity than in the previous year, though India’s annual power demand fell for the first time in at least 35 years in 2020/21. The imposition of coronavirus lockdowns resulted in a fall in electricity consumption for six straight months through August, but consumption has since risen for seven consecutive months, with usage in March rising at the fastest pace in 11 years. During the latest quarter, electricity consumption grew 7.3 percent in Maharashtra, India’s most industrialized state. However, Tamil Nadu – where a large number of major automakers are located – saw its electricity consumption fall 2.8 percent in the same period. Consumption grew at 9.4 percent in the western state of Gujarat during the quarter, but it fell marginally in Karnataka – a southern state with a large tech industry.
Source: Reuters
4 April: Damodar Valley Corp (DVC) said it has registered a record electricity generation of 38.41 bn units in the 2020-21 fiscal, overcoming the COVID-19 challenges. The power generation of the company grew by 3.26 percent in the last financial year. The Plant Load Factor (PLF) for FY 21 stood at 62.39 percent, which was higher than the national average of 53.37 percent, it said. The power utility said its PLF was 60.52 percent in the 2019-20 fiscal.
Source: The Economic Times
2 April: Tata Power took over the management and operations of NESCO (North Eastern Electricity Supply Company of Odisha) upon completion of the sale process. The country’s largest integrated power utility said, NESCO will operate under the company name TP Northern Odisha Distribution Ltd (TPNODL). As per the order issued by the Odisha Electricity Regulatory Commission (OERC), Tata Power holds 51 percent of equity with management control and the GRIDCO will have 49 percent equity stake in the company. TP Northern Odisha Distribution Ltd (TPNODL) will be responsible for the distribution and retail supply of electricity in five circles of NESCO covering close to 2 mn consumers with annual input energy of 5450 mn units in Balasore, Bhadrak, Baripada, Jajpur and Keonjhar districts. Tata Power consumer base now stands at 11.5 mn across Mumbai, New Delhi, Odisha and Ajmer as the largest private sector power distribution company in the country.
Source: The Economic Times
2 April: The Andhra Pradesh State Electricity Regulatory Commission (APSERC) has rejected ‘smart power tariff’— a uniform electricity tariff method proposed by the Visakhapatnam-based Eastern Power Distribution Company Ltd (APEPDCL). APSERC chairman Justice CV Nagarjuna Reddy announced the rejection of this proposal on the occasion of releasing the new electricity tariff for the 2021–22 fiscal. Designed by APEPDCL, the ‘smart power tariff’ scheme was meant to bring all 8,511 apartments and its electricity services (1,73,668 in number) under a single umbrella by fixing the uniform and single electricity charge at ₹5.95 per unit instead of categorising tariff in terms of units consumed.
Source: The Economic Times
1 April: Power consumption in the country grew 24.35 percent in March at 123.05 bn units over the corresponding month a year ago, showing a revival in the economic activities, according to power ministry data. Power consumption in March last year was recorded at 98.95 bn units. On the other hand, the peak power demand met, which is the highest supply in a day, during March this year remained well above the highest record of 170.16 GW in the entire March 2020 except on one day on 29 March 2021 when it was recorded at 159.81 GW. During March this year, peak power demand touched the highest level of 186.03 GW on 11 March 2021, and recorded a growth of 9.3 percent over 170.16 GW a year ago. The highest daily peak power demand met of 170.16 GW was recorded on 3 March 2020. Experts are of the view that the power consumption has returned to pre-COVID levels with spurt in commercial and industrial activities and would see robust growth in coming months. However, they cautioned that local lockdowns to curb the surge of COVID-19 positive cases may impact power consumption adversely with slump in commercial and industrial demand of electricity. The government had imposed a nationwide lockdown on 25 March 2020, to contain the spread of COVID-19. After a gap of six months, power consumption recorded a 4.6 percent year-on-year growth in September and 11.6 percent in October. In November 2020, the power consumption growth slowed to 3.12 percent, mainly due to the early onset of winters. In December, power consumption grew by 4.5 percent while it was 4.4 percent in January 2021. Power consumption in February this year recorded higher at 104.11 bn units compared to 103.81 bn units last year despite the fact that 2020 was a leap year.
Source: The Economic Times
1 April: NTPC Ltd said it recorded the highest-ever power generation of 314 bn units in 2020-21, with a growth of 8.2 percent over 2019-20. On a standalone basis, NTPC generated 270.9 bn units in 2020-21, an increase of 4.3 percent over the previous year. During 2020-21, the NTPC group also recorded the highest-ever single-day generation of 1,192.42 mn units (group) and 990.65 mn units (NTPC). The coal plants registered a PLF (plant load factor or capacity utilisation) of 66 percent with an availability factor of 91.43 percent. In another feat, Singrauli Unit-1 in Uttar Pradesh, the first and the oldest unit of NTPC, which was commissioned 39 years ago, and Korba Unit-2 in Chhattisgarh, commissioned 37 years ago, have achieved over 100 percent PLF. The stellar performance of Singrauli and Korba units is a testimony to the expertise of NTPC engineers, operation and maintenance practices and NTPC systems. The total installed capacity of NTPC Group increased 5.96 percent to 65,810 MW, with 4,160 MW of capacity addition in 2020-21. On a standalone basis, NTPC’s capacity increased 4.03 percent to 52,385 MW. Along with power generation, NTPC has also ventured into various new business areas like e-mobility and waste-to-energy, and participated in the bidding for power distribution of Union territories.
Source: The Economic Times
1 April: The Central government has asked regulatory commissions to issue tariff orders of all distribution licensees before April 1 of the tariff year and report compliance to the Union power ministry by 31 May every year. In a communication to chairpersons of central and all state power regulatory bodies, the power ministry has sought compliance of legal provisions in the Electricity Act 2003 and the Tariff Policy 2016, which mandate timely determination of the adequate power tariffs by the electricity commissions. Section 64 of the Electricity Act 2003 provides for determination of cost reflective tariff by appropriate commission within 120 days from receipt of tariff petition. Similarly, Tariff Policy 2016 states that the commissions should initiate tariff determination on a suo-moto basis in case the tariff petitions are not filed in time. It mandates commissions to ensure the tariff changes are brought into effect from the beginning of each financial year and under business as usual no regulatory assets — deferred tariff hikes — are created. The same has also been provided in an order of the Appellate Tribunal for Electricity passed in November 2011.
Source: The Economic Times
1 April: India’s annual electricity demand fell for the first time in at least 35 years in the fiscal year to March, government data showed, mainly due to strict coronavirus-induced lockdowns across the country. Power demand fell 1 percent during the year ended March 2021, the data showed, mainly due to the imposition of lockdowns that resulted in a decline in electricity consumption for six straight months ending in August. Demand for electricity has picked up since, and generation grew 23.3 percent in March from a year earlier, the POSOCO (Power System Operation Corp Ltd) data showed, making it the seventh consecutive monthly increase and the fastest since March 2010. Power generation fell 0.2 percent during the year 2020/21, compared with the previous year, the POSOCO data showed. Electricity demand has been steadily increasing this year due to a pickup in economic activity and amid higher temperatures being recorded in March in North India, which could have led to higher use of air conditioning.
Source: Reuters
5 April: From retrofitting cars into electric vehicles (EVs) to researching batteries and setting up charging stations on the campus, IIT (Indian Institute of Technology) Delhi is putting its best foot forward in promoting the technology. The institute’s Centre for Automotive Research and Tribology (CART) has also been researching driverless cars for major automobile companies to “make India become totally electric”. CART said the Centre had a mandate towards promoting research and academic activities related to EVs.
Source: The Economic Times
5 April: Radiance Renewables Pvt Ltd, a 100 percent subsidiary of the Green Growth Equity Fund, a leading Climate fund managed by EverSource Capital, signed an agreement to acquire solar rooftop assets of Azure Power Global Ltd. Radiance said the deal size was ₹5.36 bn and includes 152.5 MW of projects, out of which 8.1 MW is under construction and 18.5 MW of recently commissioned assets. This is one of the largest acquisitions of rooftop solar assets in India, the company said. Radiance manages an operational capacity of 95 MW across India across 13 sites. It has close to 40 MW of projects under construction and another 60 MW under development. Radiance continues to build more projects under Open Access and Behind the Meter, targeting a portfolio of 1.5 GW.
Source: Business Standard
4 April: A unique floating solar energy exhibition was organized under Suraj Se Samriddhi (prosperity through the sun) campaign at Assi Ghat in the midstream of Ganga. The floating exhibition displayed messages about the need to increase the use of solar energy in every sphere of society and keep the environment safe. Organized by Climate Agenda, an organization working for the protection of environment, this exhibition was inaugurated by the district project officer of Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA), Ranvijay Singh. The exhibition passed through all important ghats while strictly adhering to the COVID-19 guidelines. Campaign organizer Ekta Shekhar said that under its energy policy, the state government has made several announcements for full cooperation in in achieving the country’s solar energy goals by 2024. Flagging off the energy exhibition on well-decorated boats, Singh said that the state government seeks to promote solar energy in all areas.
Source: The Economic Times
4 April: India’s biggest floating solar power plant with a capacity of 100 MW is expected to become operational in Telangana next month. The project has been set up by the energy conglomerate NTPC Ltd in the reservoir of its thermal power plant at Ramagundam, Peddapalli district. The solar photo-voltaic project, spread over 450 acres, will have 4.5 lakh photovoltaic panels and it can be expanded in the future. The project has been set up at a cost of ₹4.23 bn. The Maharatna company plans to set up solar projects across all thermal power plants in the country. The NTPC plans solar power plants of the total capacity of 450 MW in the southern region. Of this, 217 MW plants would be floating on water bodies. The NTPC embarked on setting up large floating solar plants after successfully completing pilot projects at Kayamkulam in Kerala and Kawas in Gujarat. The upcoming floating solar plants in South India are likely to be commissioned in next few months. The Covid-19 pandemic has led to the delay in construction of the new projects. Under the floating plants, the photovoltaic panels are deployed on the surface of water bodies. They are considered as a viable alternative to land-based solar arrays. As South India has a large number of major reservoirs, NTPC Southern Region plans to focus on floating solar plants.
Source: The Economic Times
2 April: Rajasthan Renewable Energy Corporation Ltd (RRECL) commissioned the country’s first farm-based solar power project under the Kusum scheme in Kotputli having 1 MW capacity spread over on 3.5 acre semi-barren land. It is also the first of 623 farm-based solar projects selected by RRECL for generating 722 MW capacity in the state under the first phase of Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (Kusum) scheme. Commissioning the project, Energy Minister BD Kalla said that it is a matter of pride that Rajasthan has become the first state to commission the project. The project in Kotputali has a 25-year contract between the RRECL and farmland owner Devkaran Yadav. Kusum scheme was launched by Centre to help farmers generate solar energy. RRECL has been implementing the scheme in the state to help farmers generate revenue from their less-productive or barren land.
Source: The Economic Times
2 April: The environment ministry has amended rules allowing thermal power plants within 10 km of the National Capital Region (NCR) and in cities with more than 10 lakh population to comply with new emission norms by the end of 2022, according to official notification. A task force will be constituted by the Central Pollution Control Board (CPCB) to “categorise thermal power plants (TPPs) in three categories on the basis of their location”, the ministry said in the notification dated 1 April. Also, TPP units in “non-attainment cities” and those within 10 km of critically polluted areas are required to meet the emission norms by 31 December 2023. The ministry had revised emission norms for particulate matter (PM), sulphur dioxide and oxides of nitrogen for TPPs in December 2015, requiring them to install emission control systems by December 2017. The deadline was pushed to December 2022 for all power stations in the country in view of implementation issues and challenges. However, power stations in the national capital region were required to comply with the revised norms by December 2019. Earlier this year, the power ministry requested the environment ministry to extend the deadline for meeting emission norms for all thermal plants from 2022 to 2024, citing delay due to various reasons, including the coronavirus pandemic and import restrictions.
Source: The Economic Times
1 April: The Simhadri unit of NTPC Ltd launched the 25 MW of floating solar power project at its unit premises in Visakhapatnam. The project is being developed in its own resorvoir spread over 150 acres. The first 5 MW block was completed. It is expected to complete the balance works by June 2021 and full 25MW will be made available to the grid. Power flow of more than 2MW was witnessed with present solar irrdiance.
Source: The Economic Times
6 April: Goldman Sachs said a potential recovery in Iran exports won’t come as an “exogenous” shock to the oil market and full recovery won’t occur until summer 2022, as US (United States) and Iranian officials were due to begin indirect talks in Vienna on the Iran nuclear deal. The US expects the talks with Iran, about both sides resuming compliance with the 2015 Iran nuclear deal, to be “difficult” and does not foresee any early breakthrough. A normalization in Iranian exports before the end of 2021 would reduce Goldman’s year-end 2021 and 2022 Brent forecast of $75 per barrel by $5, while the lack of an agreement in 2022 would create more than $10 upside risk, it said. Oil prices rose as investors looked for bargains after prices plunged more than 4 percent on rising output from OPEC+, and as strong economic data from the United States and China brightened recovery prospects. The Organization of the Petroleum Exporting Countries (OPEC), Russia and their allies, a group known as OPEC+, agreed to gradually ease its oil output cuts from May. Goldman said it expects a significant rebound in oil demand this summer even after expecting an additional 2 mn barrels per day increase in OPEC+ production after July.
Source: The Economic Times
6 April: Oil prices rose early as a drop in the US (United States) dollar made crude a more attractive buy, paring losses of more than 4 percent incurred overnight on the prospect of producers returning more than 2 mn barrels per day (bpd) of supply to the market by July. US West Texas Intermediate (WTI) crude futures rose 80 cents, or 1.4 percent, to $59.45 barrel, after sliding 4.6 percent. Saudi Arabia is also set to phase out its extra voluntary cut of 1 mn bpd over those three months. At the same time OPEC (Organization of the Petroleum Exporting Countries) member Iran, exempt from making voluntary cuts, is boosting supply. The push by OPEC+ to add supply came despite concerns about a rise in COVID-19 cases.
Source: Reuters
2 April. Saudi Arabia’s Energy Minister Abulaziz bin Salman took a cautious view of any increase in oil production as members of the OPEC (Organization of the Petroleum Exporting Countries) cartel met with allied non-member countries to decide production levels. He said the approach taken at the alliance’s gathering to leave production levels largely unchanged had been correct, given the ongoing uncertainty about the course of the COVID-19 pandemic. The OPEC meeting with non-members – dubbed OPEC Plus – has decided to meet monthly to review the production cuts of just over 7 mn barrels per day (bpd) imposed to restrain the decline in oil prices due to the pandemic recession, which has cut the demand for fuel. On top of that, Saudi Arabia has been keeping 1 mn bpd off the market as part of voluntary cuts on its own.
Source: The Economic Times
31 March: The rise of China’s mega-refineries was always going to make life tougher for their competitors across Asia. But the fallout from COVID-19 is hastening the impact and accelerating consolidation across the region. A frenzy of refinery building in China is set to make the nation the world’s largest crude processor this year. At the same time, a drive to de-carbonize Asia’s biggest economy means demand for fuels like diesel and gasoline will decline, potentially leading to more exports from the new facilities. China’s refining capacity has nearly tripled since the turn of the millennium and the International Energy Agency forecasts it will overtake the US (United States) this year. Crude processing will climb to 1 bn tonnes a year, or 20 mn barrels per day, by 2025 from 17.5 mn barrels at the end of 2020, according to China National Petroleum Corp’s Economics & Technology Research Institute.
Source: The Economic Times
4 April: French oil and gas group Total said it would not stop producing gas on its Yadana fields in Myanmar as long as operations remained safe, in part to protect employees there who might otherwise risk repercussions from the military junta. Located off Myanmar’s southwest coast in the Gulf of Martaban, the Yadana fields produce gas for delivery to power plants in Thailand. They also supply Myanmar’s domestic market, via an offshore pipeline built and operated by state energy firm Myanmar Oil and Gas Enterprise (MOGE).
Source: Reuters
6 April: A steep increase in coal plant development in China offset a retreat from coal in the rest of the world in 2020, resulting in the first increase in global coal capacity development since 2015, a new report led by Global Energy Monitor (GEM) said. In India, coal power capacity rose by just 0.7 GW in 2020, with 2 GW commissioned and 1.3 GW retired. In total, China was home to 85 percent of the 87.4 GW of proposed new coal plants in 2020. A record-tying 37.8 GW of coal plants were retired in 2020, led by the US (United States) with 11.3 GW and the European Union with 10.1 GW. China commissioned 38.4 GW of new coal plants in 2020, comprising 76 percent of the global total (50.3 GW). Outside China, 11.9 GW was commissioned and, taking into account closures, the global coal fleet outside China declined by 17.2 GW in 2020 — the third year in a row that coal power capacity outside China shrank. Outside China, the coal plant development pipeline is collapsing in Asia, as Bangladesh, the Philippines, Vietnam, and Indonesia have announced plans to cut up to 62.0 GW of planned coal power. GEM estimates the policies will leave 25.2 GW of coal power capacity remaining in pre-construction planning in the four countries — an 80 percent decline from the 125.5 GW planned there just five years ago in 2015.
Source: The Economic Times
6 April: Australia’s superannuation funds should be free to support the coal industry’s expansion plans, Resources Minister Keith Pitt said, as a battle heats up over new mines in the key Hunter Valley mining region of New South Wales. The coal industry in New South Wales is currently proposing 23 new coal mines and mine extensions with a combined additional annual production of more than 155 million tonnes (mt), a report by progressive think tank the Australia Institute found. In a separate development, Former Prime Minister Malcolm Turnbull was dropped from chairing a board that would oversee New South Wales’ energy transition after he supported a moratorium on new coal mines in the Hunter Valley.
Source: The Economic Times
31 March: South Africa will begin operating Unit 3 at the Kusile coal-fired power station this week, state-owned utility Eskom said, marking the halfway point in a long delayed 118.5 bn rand ($8 bn) project which began in 2008. Eskom provides more 90 percent of the electricity needed by Africa’s most industrialised nation, but has had to implement cost nationwide blackouts due to repeated faults at its ailing coal-fired power stations, severely constraining economic growth.
Source: Reuters
6 April: Pakistan industrialists opposed the anticipated increase of ₹5.36 per unit in base electricity tariff. Resenting frequent hikes in the power tariff that would strike a blow to the industry, Federation of Pakistan Chambers of Commerce and Industry (FPCCI) former president Mian Anjum Nisar said it would turn Pakistproducts uncompetitive in the international market. He termed it unfortunate that the average electricity uniform rate would gradually rise to ₹21.04 per unit and that too after excluding taxes, duties and surcharges. The cumulative impact of the rebasing in July 2021 has been worked out at a burden of ₹414 bn on the power consumers, Pakistan Industrial and Traders Associations Front (PIAF) chairman Mian Nauman Kabir said. Pakistan has been facing severe power shortage and blackouts amid surging power prices that have broken the backbone of industries badly affected by COVID-19. Moreover, transmission and distribution losses, overdue payments, and theft and pilferage of electricity also power up the debts that threaten to stall the industrial growth of Pakistan.
Source: The Economic Times
5 April: Despite COVID-19 pandemic, more than 260 GW of renewable energy capacity was added globally last year, exceeding expansion in 2019 by close to 50 percent, according to the International Renewable Energy Agency (IRENA) report. It said that renewable energy’s share of all new generating capacity rose considerably for the second year in a row. It said that total fossil fuel additions fell to 60 GW in 2020 from 64 GW the previous year highlighting a continued downward trend of fossil fuel expansion. According to IRENA, the 10.3 percent rise in installed capacity represents expansion that beats long-term trends of more modest growth year on year. The two variable sources of renewables dominated capacity expansion in 2020 with 127 GW and 111 GW of new installations for solar and wind, respectively.
Source: The Economic Times
1 April: A revised World Bank policy on climate change commits to making financing decisions in line with efforts to limit global warming, but stops short of promising to halt funding of fossil fuels, according to a draft bank presentation. The World Bank, the biggest provider of climate finance to developing countries, is finalizing a new five-year climate action plan amid growing political momentum in Britain, the United States (US) and other countries for ending public financing of high-emission fossil fuel projects. In a sharp reversal from the former Trump administration, the US, the bank’s largest shareholder, is drafting plans under the new Biden administration to end US financing for international fossil fuel projects.
Source: Reuters
1 April: South African energy start-up Sun Exchange raised $1.4 mn in a crowd sale of solar cells of a 1.9 MW solar and battery storage facility at Zimbabwe’s Nhimbe Fresh farm, the firm said. Investors were invited to purchase individual solar cells in the project. Nhimbe Fresh is one of Zimbabwe’s biggest fruit and tobacco producers. The solar project is part of its plans to power its entire operation, including cold store and packhouse facilities, through solar power.
Source: Reuters
31 March: The Asian Development Bank (ADB) announced that it has approved a $ 300 mn loan to finance the construction of a 300 MW hydropower plant in north-western Pakistan. It will help boost clean energy and improve the country’s energy security. The project will be undertaken on the Kunhar river near Balakot city in Khyber Pakhtunkhwa province and will increase the share of clean energy in Pakistan and improve its energy security. The plant, will incorporate seismic strengthening and climate-proofing measures. It will be commissioned by 2027. Balakot hydropower plant will also generate economic activity and improve the skills of local communities.
Source: The Economic Times
31 March: Denmark’s Orsted plans to develop an offshore wind farm and adjacent hydrogen plant at the North Sea Port straddling the Dutch-Belgian border, the company said. The wind farm would have capacity to produce 2 GW of electricity and would power the 1 GW hydrogen plant. The hydrogen facility would be able to produce about 116,000 tonnes a year by 2030 for use as energy. Hydrogen can be used in fuel cells to generate power in applications such as heavy industry, aviation and shipping. Demand for hydrogen in the North Sea Port area is 580,000 tonnes a year, and a 1 GW plant would cover 20 percent, Orsted said. It estimated that demand in the area will have almost doubled by 2050. Orsted has invested in several projects that will use renewable energy to produce hydrogen, which currently is mostly produced with non-renewable sources of electricity such as natural gas.
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.
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