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Friday, June 17, 2022

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Infraline Comprehensive Power , Oil & Gas & Coal Only Detailed Newsletter

What’s New

Acts and Regulations

§  Order on Review Petition under Section 94 of the Electricity Act, 2003 read with Regulations 72 of the GERC (Conduct of Business) Regulations, 2004 seeking review of the Commission’s Daily Order dated 09.03.2020 passed in the Petition No. 1807 of 2019.

§  Order on Application seeking permission to change / amend the name of the Petitioner under Section 94 (2) of the Electricity Act, 2003 read with Regulation 61 of the Gujarat Electricity Regulatory Commission (Conduct of Business) Regulations, 2004.

§  Order on Generic Tariff for Biomass, Biogas and Biomass Gasifier based power plants getting commissioned in the State during FY 2022-23

§  Order on Petitions for non-compliance of Section 171, Section 56 of the Electricity Act, 2003 and Reg. 139 of Electricity Supply Code and Connected Matters Regulation, 2021. 2016/2022

§  Order on Petitions for non-compliance of Section 171, Section 56 of the Electricity Act, 2003 and Reg. 139 Electricity Supply Code and Connected Matters Regulation, 2021. 2015/2022

View More...

Performance of State Discom

New!

Power

Amendments to Electricity Act could be tabled in monsoon session: R K Singh

Government seeks another round of power distribution reform and boost renewable energy

Power demand will continue to rise, 205 GW is new baseline: RK Singh

Singh said the power demand in the country will not go back to the pre-covid levels of 160 GW.

§  CERC Approves Introduction of Month-Ahead Contracts on Power Exchange India

§  Woman loses 12L to power disconnection fraudsters

§  30 per cent vehicles in India will be electric by 2030: Study

§  Delhi power consumers may need to fill form from July to continue availing subsidy

§  CM launches projects worth 134 crore

§  Discom privatisation : Pondy Electricity Dept employees to intensify agitation

§  Will Budgetary Support to promote Hydro Electric (HE) Power encourage DISCOMS to purchase power from HEPs?

[Poll Question]

Projects Update

Project Name

Promoter

Capacity

State

Dardu Hydro Power Project

KVK-ECI Hydro Energy Private Limited

60 MW

Arunachal Pradesh

Tidding II Hydro Power Project

Sai Krishnodaya Industries Pvt. Ltd.

75 MW

Arunachal Pradesh

Jameri Hydro Power Project

KSK Jameri Hydro Power Pvt. Ltd.

60 MW

Arunachal Pradesh

Attunli Hydro Power Project

Attunli Hydro Electric Power Company

680 MW

Arunachal Pradesh

Kolodyne Hydro Power Project Stage-2

NTPC

460 MW

Mizoram

Renewable Energy

 

CERC Approves Introduction of Month-Ahead Contracts on Power Exchange India

The contracts will be introduced in the term-ahead and green term-ahead markets

GE purchases 49percent stake in Morjar onshore wind farm in India

The 148.5MW wind facility will feature 55 units of GE Renewable Energy’s onshore wind turbines.

§  Mumbai’s CSMIA becomes the first airport in the country to launch a Renewable hybrid power generation project

§  Gujarat issues tender for 500 megawatts of renewables and storage

§  India Ranks Third in Renewable Energy Installations in 2021 – But Needs to Do More

§  Investments worth ₹4 lakh cr required for India renewable energy project pipeline: Report

§  Goa to use solar power energy :CM

§  India and Germany to be solar outperformers but miss install targets, Fitch says

§  India needs Rs 4 lakh cr investment for 113GW renewable energy projects in pipeline: Report

§  Does Anti-Dumping probe benefit Domestic Solar Manufacturers in India?[Poll Question]

Projects Update

Project Name

Plant Owner

Capacity (MW)

State

Adani Chitrakoot One Solar Plant

Adani Solar Energy Chitrakoot One

25

Adani Kutchh One Solar Plant

Adani Solar Energy Kutchh One Limited

150

Gujarat

Shahjahanpur and Budaun Solar Plant

Adani Solar Energy Four Private Ltd

100

Uttar Pradesh

1200 MW ISTS Connected Projects (ISTS-V)

SBE Renewables Sixteen Pvt. Ltd.

180

Rajasthan

1200 MW ISTS Connected Projects (ISTS-V)

GRT Jewellers (India) Pvt. Ltd.

150

Tamil Nadu

Oil & Gas

 

Andhra Pradesh: Fuel crisis grows as oil cos slash supplies

Petroleum dealers said the oil companies have restricted the fuel supply and are providing only 30 to 40 per cent of total demand which is triggering fuel crisis. The private oil companies have already stopped sales at their pumps in cities and towns. Eventually, the load shifted to the petrol pumps of other oil companies.

OIL signs pact with homiHydrogen for green hydrogen

The memorandum of understanding (MoU) signed with homiHydrogen Pvt Ltd is "to boost India's efforts towards energy transition for achieving net-zero by 2070 and support development of indigenous technology and manufacturing under Atmanirbhar Bharat in the field of hydrogen and green energy technology," a company statement said.

§  Do you think Natural gas, diesel and petrol should have been included under GST?

[Poll Question]

§  At the helm of oil and urban affairs, Hardeep Singh Puri is Adda guest today

§  Fuel crunch looms in Rath season

§  New domestic LPG connection gets expensive; gas regulators become dearer too

§  Reliance Industries in focus as benchmark refining margin inches up

§  Higher prices of natural gas take the steam out of gas utility stocks

Daily International Coal Prices

New!

Coal

Power sector’s dues to Coal India up 8 per cent m-o-m in May

Coal Ministry says CIL has increased coal supply despite high outstanding dues from the State utilities

India has scope to produce hydrogen from domestic coal

Expert Panel suggests for setting up of semi-commercial gasification units to convert coal to hydrogen

§  Will Commercial Coal Mining attract global players to invest in India?

[Poll Question]

§  India may need USD 10 trillion investment to achieve net-zero emission by 2070: Study

§  Govt aims to build 40 MT coal stock at power plants to ensure supplies during monsoon

§  India has scope to produce hydrogen from domestic coal: Expert panel

Roads

 

Higher input costs slow down highway construction

A sharp rise in commodity prices has taken a toll on the construction of highways. In the first two months of the current fiscal, the pace of highway construction stood at just 21 km a day, compared to 24 km a day recorded in the same period last fiscal, and 29 km per day achieved in the whole of FY22.

Average road macadamisation in J&K increases

The average road macadamisation in J&K has been increased to 20.6 km per day in last three years as compared to 6.54 km per day before 2019, which reflects the progressing development happening across Jammu and Kashmir, an official press release said.

§  NHAI floats tender for elevated corridor in Kerala

§  NHIDCL asked to finalise list of affected landowners

§  Administration discusses construction of 2-Lane Tura bypass with stakeholders

§  J&K Among Top Three Performers Under PMGSY: Govt

§  Assembly panel checks elevated highway work

§  IRB Infra SPV achieves financial closure for Ganga Expressway project

§  Report on 'wrongdoing' in awarding land acquisition amount for Delhi-Amritsar-Katra Express Highway soon

§  Do you think 100 percent FASTAG implementation will remove congestion at toll plazas?

[Poll Question]

Projects Update

Project Name

Promoter/Client

State

Length (Km)

Eight Laning Vadodara - Mumbai Section (Ankleshwar to Manubar KIM Expressway) (Phase-1A PKG-IV)

NHAI/ Ashoka Buildcon Limited

Gujarat,Maharashtra

13

Delhi-Vadodara Greenfield Alignment (NH-148N) (Pkg-03)

NHAI/Centrodorstroy India Pvt. Ltd

Haryana

31.88

Four Laning Belgaum- Khanapur NH-4A

NHAI/Ashoka Concessions limited

Karnataka

30

Four Laning Ring Road Bypass Nagpur City (Fetri to Dhargaon)Package-II (NH-7)

NHAI/MEP Infrastructure-Sanjosh India (JV)

Maharashtra

28.03

Four Laning Rimuli to Koida NH-215 (New NH-520) Pkg-I

NHAI/Montecarlo Pvt. Ltd.

Odisha

43.2

Power(8 News Items)

General


Amendments to Electricity Act could be tabled in monsoon session: R K Singh

·         The government will table amendments to the Electricity Act 2003 in the upcoming monsoon session of Parliament, said R K Singh, minister for power, new and renewable energy, on Thursday.

·         “The amendment will have 2-3 added provisions; one of them is increasing the penalties on the renewable purchase obligations. The demand has increased, and the market is not an issue currently. The market is going to become more vibrant because of the increase in size of our product,” Singh said at the India Energy Transition Summit 2022 organised by FICCI.

·         India will sell renewable energy with storage at Rs 6.5-7 and there will be continuous demand even at that rate. “The government will bring down the price of storage and further add storage. By and large, our future bids will transform to round-the-clock energy,” Singh said.

·         The government, in April 2020, unveiled the first set of draft amendments and asked states to submit their comments. Major amendments included ending subsidised power rates and replacing it with ‘direct benefit transfer’ (DBT) of subsidy, reduction of cross-subsidy burden on industrial consumers, new contract enforcement authority and new selection process for existing state electricity regulatory commissions (SERCs).

·         The government again amended the Act in February 2021 to abolish power “distribution licence”, allowing any company to supply electricity in an area after regulatory approval. The amendment ended the monopoly of state-owned power distribution companies (discoms) and offered space to private companies.

·         The push to privatise the discoms has become a bone of contention between the Centre and states. The challenge comes at a time when the BJP-ruled central government has unveiled a second power distribution reform amounting to Rs 3 trillion. The scheme aims at improving the finances and operations of state-owned discoms, most of which are in a dire state.

Source

 

Top

Power demand will continue to rise, 205 GW is new baseline: RK Singh

·         Electricity demand in India will continue to grow and remain largely above 205 GW going ahead, Union power minister RK Singh said. Speaking at the India Energy Transition Summit 2022 on Thursday, Singh said power demand in the country will not go back to the pre-covid levels of 160 GW.

·         “Demand is not going to go away; demand will remain at this level and will grow from this level. This is now the new level. It’s not going back to 160 GW; the new baseline is 205 GW and it will go up from there and not come down," he said.

·         The statement gains significance at a time of soaring temperatures and elevated power demand across wide swathes of India, and concerns prevail over a possible crisis when power demand reaches a new peak by the end of the month.

·         On 9 June, the maximum power demand met in the country at a record 210.793 GW. The last recorded maximum power demand met stood at 203.078 GW on 15 June. The minister also said that India will continue its efforts to increase coal production in the country.

·         After the crisis in April, the government asked states to increase coal imports and directed Coal India Ltd to issue tenders on behalf of state discoms and independent power producers.

·         Last week, Coal India issued tenders for coal imports of more than 8 million tonnes. With the imported coal coming in, the situation has somewhat eased. However, coal stock at power plants is still low. Power plants tracked by the Central Electricity Authority now have a total stock of 24.4 million tonnes, which is 36% of the required inventory of 66.96 million tonnes.

·         A total of 79 power plants operating on domestic coal, along with eight imported coal-based plants, are running on less than 25% of the required stock, CEA data showed.

·         Talking about the government’s focus on renewable energy, he said: “We have the largest and the fastest growing renewable energy capacity and fastest rate of transition in the world. I am certain that we will be able to sell renewable energy with storage at ₹6.5-7 and there will be demand for round-the-clock renewable energy even at that rate."

·         The minister also said the government will introduce the Electricity Amendment Bill in the upcoming monsoon session of parliament, which would propose raising of penalties for non-compliance with renewable purchase obligations (RPO).

·         Outlining efforts for higher adoption of renewable energy, Singh said the government will come out with more incentives for green hydrogen. In February, the government came up with the Green Hydrogen Policy and a comprehensive green hydrogen mission is in the making.

·         “We have setup rules for green hydrogen and will come up with further set of sweeteners to make green hydrogen. We plan to achieve for 500 GW by 2030 and by adopting green hydrogen and green ammonia, we can reach 700 GW by 2030," he said.

·         Singh, who also holds the portfolio of new and renewable energy, said the government will come up with a separate RPO for wind energy as it is more expensive that solar power.

Source

 

Top

CERC Approves Introduction of Month-Ahead Contracts on Power Exchange India

·         The Central Electricity Regulatory Commission (CERC) recently approved Power Exchange India’s (PXIL) proposal to introduce delivery-based monthly contracts, which can be traded on one month, two-month, and three-month ahead basis in conventional and renewable energy segments of the term-ahead market.

·         It directed PXIL to make changes in its software before the commencement of the delivery-based month-ahead contracts and to align its business rules per the procedure for scheduling bilateral transactions.

·         The Commission also directed the Power System Operation Corporation (POSOCO) to submit a report within three months from the introduction of the contracts after seeking feedback from the power exchanges.

·         PXIL had filed a petition seeking approval to introduce month-ahead contracts at the exchange.

·         Background

·         Currently, the exchange offers day-ahead contracts, intraday contracts, day-ahead contingency contracts, real-time contracts, and term ahead contracts for trading in electricity. It also offers the exchange of renewable energy certificates (RECs) and energy-saving certificates.

·         In its submission, PXIL noted that participants enter into bilateral contracts that do not provide end-to-end service for the period extending beyond 11 days. These contracts vary significantly in structure and do not necessarily have an equitable risk-sharing mechanism.

·         In some cases, even if the market platform is available and auctions are undertaken, it may not necessarily transform into actual transactions, thereby raising the overall transaction cost. So, introducing these contracts at the power exchanges for a duration beyond 11 days would be helpful.

·         The power exchange proposed to introduce delivery-based monthly contracts which can be traded on one month, two-month, and three-month ahead basis both in conventional and renewable energy segments of the term-ahead market.

·         The stakeholders affirmed that introducing these contracts would provide more avenues for market participants to trade power beyond 11 days.

·         Some stakeholders suggested that a more extended duration contract (up to one year) may also be introduced to have better planning both from the procurer and seller’s point of view.

·         Commission’s analysis

·         The Commission observed that the issue of longer duration contracts (beyond T+11 days) and financial derivatives were sub-judice since 2011. In 2018, the Ministry of Power constituted a committee to examine the technical, operational, and legal framework for futures/forward and derivative contracts in electricity and to give recommendations in this regard.

·         The Commission noted that the power exchange had sought approval to introduce the proposed contracts both in the term-ahead and green term-ahead markets. Considering that conventional and renewable energy have their own significance, the Commission approved the contracts to be introduced in both the term-ahead and green term-ahead markets.

·         The central regulator observed that any new segment in a market should be introduced gradually. The petitioner had proposed multiple contracts to be introduced on its exchange platform.

·         Considering this market may have low liquidity initially, the petitioner’s proposed contracts may have overlapping effects, impacting the volume per contract. It approved the exchange’s proposal to introduce monthly contracts, any-day, and weekly contracts with modified timelines for pre-specified time blocks.

·         The Commission also approved using a uniform price auction as a matching methodology for price discovery in daily, weekly, and monthly contracts and renamed it ‘Uniform Price Step Auction.’

·         It noted that the reverse auction should be used as a price matching methodology for any day single-sided contract.

·         The central regulator said that PXIL should commence the physical delivery of electricity on a day more than one day ahead (T + 2 or more) of the last day of bidding.

·         It also approved delivery duration for these contracts as T+2 to T+90 days for daily contracts, TW+1 to TW+12 for weekly contracts, TM+1 to TM+3 months for monthly contracts, and T+2 to T+90 days for any day single-sided contracts, wherein T denotes the zero-day of trading, TW denotes the zero-week of trading and TM denotes the zero-month of trading.

·         The Commission directed PXIL to submit the compliance report within two weeks.

·         Last October, CERC approved the introduction of the green day-ahead contract at the Indian Energy Exchange (IEX) and the Power Exchange India (PXIL) in the integrated day-ahead market in a restricted manner.

·         Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.

Source

 

Top

Woman loses 12L to power disconnection fraudsters

·         Fraudster got remote access of the mobile of a 57-year-old Andheri resident, with a petroleum company, and transferred Rs12 lakh from her bank account to multiple accounts between June 13-14. The fraud was executed after the victim reacted to a fake message that electricity will be disconnected at 8:30 pm because the previous month bill was not updated. She contacted the number and downloaded the Quick Support app.

·         The fraudster made the victim scan her banking card details and type them out after downloading Quick Support to complete the process of non-disconnection of power. “Gaining the confidential banking details, the fraudster broke the FD account which had an amount of Rs3.9 lakh, which was transferred to her savings account, in which there was around Rs8 lakh and carried out fraudulent fund transfers. Such fraud is on the rise and people are falling prey to fake messages despite repeated warnings issued by electricity companies that they never send such messages of disconnection,” said a cyber police officer at BKC. The fraud occurred on June 13 around 6.23 pm when the complainant received a text message that claimed to have been sent from MSEB.— V Narayan

Source

 

Top

30 per cent vehicles in India will be electric by 2030: Study

·         By 2030, over 30 per cent of the vehicles sold in India will be electric, with less than 5 per cent from passenger segments like buses and cabs, said a study released on Thursday by Arthur D Little, a global management consulting firm for most Fortune 1000 companies. It ranked India 11th among 15 nations in the Global Electric Mobility Readiness Index.

·         While Norway holds the distinction of being fully EV-ready, India is among the few “starter nations” , the study showed. It said, “The current penetration rate of less than 1 per cent is not encouraging but given the country’s ambitions and capacity commitments, it might turn out to be the dark horse in the EV race.”

·         The Centre’s FAME-II policy is a key factor behind the EV push, especially in Mumbai, where a number of buses are switching to electric.

·         “Although current EV infrastructure is barely present [in India], big bets have been placed by both local and global players to set up adequate EV infrastructure in the coming two to three years. A rising middle-class population, government push to reduce carbon emissions and increasing fuel prices are some other factors driving EV adoption,” the report stated.

·         As per the study, EV adoption has been higher for two- and three-wheelers in India—as compared to passenger cars—due to lack of proper road connectivity, quick charging time and infrastructure constraints. The study cited several factors for low adoption of passenger EVs in India, including higher upfront costs, lack of models, dearth of charging infrastructure, and low consumer confidence exacerbated by accidents.

·         Barnik Chitran Maitra, CEO (India & South Asia), Arthur D Little said: “Despite the obstacles, India is one of the largest markets for EVs in Asia, behind only China and, surprisingly, ahead of Japan. We can build on this position by acting to support product innovation, creating reliable charging infrastructure, and providing subsidies to buyers and additional incentives to startups involved in battery R&D.” He said if India achieves 50 per cent vehicle electrification, every 10th EV sold globally could be manufactured in the country.

Source

 

Top

Delhi power consumers may need to fill form from July to continue availing subsidy

·         The power consumers in the national capital will likely have to fill in a form from the next month to continue enjoying the benefit of Delhi government’s subsidy scheme or opt out of it, officials said on Thursday.

·         Delhi Chief Minister Arvind Kejriwal last month announced that power subsidy after October 1 would be given to only those consumers who opt for it.

·         Officials said the forms, both in soft and hard versions, will be made available to the consumers with “yes” and “no” options about seeking subsidy or giving it up after October 1.

·         “The power department has prepared a proposal about how the consumers’ response about having benefit of subsidy or surrendering it will be gathered. It is expected to be operationalised from July after approval of the competent authority,” said a senior Delhi government officer.

·         The consumers may get the form with their printed details from next month, along with their electricity bill, in which they will have to write “yes” or “no” about getting subsidy, he said.

·         Also, the power discoms (distribution companies) through their official portals will gather response of consumers in a digital format. A majority of consumers in Delhi, over 80 per cent, pay their electricity bills through digital mode, officials said.

·         A campaign is also planned to be launched by the government to create awareness among the consumers that they will get subsidy after October 1, only if they demand it.

·         Kejriwal had earlier said that the money saved from subsidy surrendered by the consumers could be spent on upgrading schools and hospitals in Delhi.

·         According to official figures, there are 58.18 lakh power consumers in Delhi out of which 47.11 lakh are benefitted from Kejriwal government’s subsidy scheme.

·         The beneficiaries include 30.39 lakh domestic consumers who consume up to 200 units electricity per month and get 100 per cent subsidy. There are 16.60 lakh consumers whose monthly consumption is 201-400 units and who get up to Rs 800 as subsidy.

·         The option given to financially-able consumers to surrender subsidy is expected to help lower the subsidy amount that has been rising over the years, the officials said The Delhi government allocated Rs 3,250 crore for payment of power subsidy in 2022-23. In 2020-21, the government had set aside Rs 3,090 crore for the purpose.

·         The Kejriwal government in August 2019 announced the free electricity scheme for consumers, in keeping with the Aam Aadmi Party’s poll promise. PTI VIT CK

Source

 

Top

CM launches projects worth 134 crore

·         Chief minister Bhupendra Patel on Thursday dedicated 15 power projects and laid foundation stones for development works worth Rs 134 crore.

·         The CM inaugurated 12 substations of 66 KV and one station of 220 KV and laid the foundation stones for 2 substations of 66 KV capacity. Besides, he also inaugurated the newly constructed Sami sub divisional office and Surajmalji High School, Patdi in Surendranagar district.

·         On the occasion, he said that through the Jyoti Gram Yojana, the government has been providing uninterrupted electricity supply to the students and advanced health services in the villages.

·         Energy minister Kanubhai Desai said that a strong energy infrastructure has been set up which provides uninterrupted power supply despite the global energy crisis and an increase in per capita power consumption. TNN

Source

 

Top

Discom privatisation : Pondy Electricity Dept employees to intensify agitation

·         Puducherry Electricity Department Employees Joint Action Committee (JAC) has decided to intensify their agitation in protest against the privatization of Electricity Distribution Company (Discom) in the Union Territory by the Centre.

·         The employees decided that the electricity meter reading for all connections will not be taken from July 1.

·         It may be noted that on direction of the Central government, the NR Congress-BJP government in the UT gave the nod for the privatization of the Discom after a cabinet meeting.

·         Department employees, besides political parties and trade unions started agitation to protest against this.

·         With the five-day relay fast by the employees ended on Wednesday, the employees met under the Presidentship of Velmurugan, General Secretary of JAC last night in which it was decided not to take electricity meter reading for all connections from July 1.

·         Further it was decided to continue with the work to rule agitation and electricity department engineers will not do any work other than which were allotted to them.

·         Engineers and clerks will boycott desk works and it was also decided not to give any new connections.

·         The decision to ensure uninterrupted power supply to the public and to quit the official Whatsapp group and return the sim card given by the department were taken in the meeting.

Source

 

Top

Renewable(9 News Items)

CERC Approves Introduction of Month-Ahead Contracts on Power Exchange India

·         The Central Electricity Regulatory Commission (CERC) recently approved Power Exchange India’s (PXIL) proposal to introduce delivery-based monthly contracts, which can be traded on one month, two-month, and three-month ahead basis in conventional and renewable energy segments of the term-ahead market.

·         It directed PXIL to make changes in its software before the commencement of the delivery-based month-ahead contracts and to align its business rules per the procedure for scheduling bilateral transactions.

·         The Commission also directed the Power System Operation Corporation (POSOCO) to submit a report within three months from the introduction of the contracts after seeking feedback from the power exchanges.

·         PXIL had filed a petition seeking approval to introduce month-ahead contracts at the exchange.

·         Background

·         Currently, the exchange offers day-ahead contracts, intraday contracts, day-ahead contingency contracts, real-time contracts, and term ahead contracts for trading in electricity. It also offers the exchange of renewable energy certificates (RECs) and energy-saving certificates.

·         In its submission, PXIL noted that participants enter into bilateral contracts that do not provide end-to-end service for the period extending beyond 11 days. These contracts vary significantly in structure and do not necessarily have an equitable risk-sharing mechanism.

·         In some cases, even if the market platform is available and auctions are undertaken, it may not necessarily transform into actual transactions, thereby raising the overall transaction cost. So, introducing these contracts at the power exchanges for a duration beyond 11 days would be helpful.

·         The power exchange proposed to introduce delivery-based monthly contracts which can be traded on one month, two-month, and three-month ahead basis both in conventional and renewable energy segments of the term-ahead market.

·         The stakeholders affirmed that introducing these contracts would provide more avenues for market participants to trade power beyond 11 days.

·         Some stakeholders suggested that a more extended duration contract (up to one year) may also be introduced to have better planning both from the procurer and seller’s point of view.

·         Commission’s analysis

·         The Commission observed that the issue of longer duration contracts (beyond T+11 days) and financial derivatives were sub-judice since 2011. In 2018, the Ministry of Power constituted a committee to examine the technical, operational, and legal framework for futures/forward and derivative contracts in electricity and to give recommendations in this regard.

·         The Commission noted that the power exchange had sought approval to introduce the proposed contracts both in the term-ahead and green term-ahead markets. Considering that conventional and renewable energy have their own significance, the Commission approved the contracts to be introduced in both the term-ahead and green term-ahead markets.

·         The central regulator observed that any new segment in a market should be introduced gradually. The petitioner had proposed multiple contracts to be introduced on its exchange platform.

·         Considering this market may have low liquidity initially, the petitioner’s proposed contracts may have overlapping effects, impacting the volume per contract. It approved the exchange’s proposal to introduce monthly contracts, any-day, and weekly contracts with modified timelines for pre-specified time blocks.

·         The Commission also approved using a uniform price auction as a matching methodology for price discovery in daily, weekly, and monthly contracts and renamed it ‘Uniform Price Step Auction.’

·         It noted that the reverse auction should be used as a price matching methodology for any day single-sided contract.

·         The central regulator said that PXIL should commence the physical delivery of electricity on a day more than one day ahead (T + 2 or more) of the last day of bidding.

·         It also approved delivery duration for these contracts as T+2 to T+90 days for daily contracts, TW+1 to TW+12 for weekly contracts, TM+1 to TM+3 months for monthly contracts, and T+2 to T+90 days for any day single-sided contracts, wherein T denotes the zero-day of trading, TW denotes the zero-week of trading and TM denotes the zero-month of trading.

·         The Commission directed PXIL to submit the compliance report within two weeks.

·         Last October, CERC approved the introduction of the green day-ahead contract at the Indian Energy Exchange (IEX) and the Power Exchange India (PXIL) in the integrated day-ahead market in a restricted manner.

·         Subscribe to Mercom’s real-time Regulatory Updates to ensure you don’t miss any critical updates from the renewable industry.

Source

 

Top

GE purchases 49percent stake in Morjar onshore wind farm in India

·         GE Energy Financial Services (GE EFS) has acquired a 49% interest in the Morjar onshore wind farm from Indian power company Continuum Green Energy India for an undisclosed sum.

·         Located in the Indian state of Gujarat, the 148.5MW Morjar wind facility will feature 55 units of GE Renewable Energy’s 2.7-132 onshore wind turbines.

·         The wind farm is expected to come online this month.

·         Once operational, it will generate enough clean electricity to meet the needs of 125,000 households.

·         GE Renewable Energy recently delivered 37 of its 2.7-132 onshore wind turbines for a 240MW wind-solar hybrid project operated by Continuum in Gujarat, India.

·         The company’s investment in the Morjar wind farm is said to be its first in the state of Gujarat through a structured preferred equity solution.

·         GE Energy Financial Services global renewable energy leader Gaurav Raniwala said: “Providing a bespoke financing product to a strategic customer strengthens GE’s partnership to continue to deliver accessible, affordable and reliable renewable energy across India to support the country’s decarbonisation and renewable energy targets.

·         “We look forward to furthering the partnership with Continuum on future renewables projects with GE’s innovative financing and technology solutions.”

·         GE EFS added that it has invested in more than 1GW worth of renewable projects in India to date.

·         These projects are located across various Indian states, including Madhya Pradesh, Rajasthan, Karnataka, Uttar Pradesh, Maharashtra, Andhra Pradesh and Gujarat.

·         A global infrastructure fund managed by Morgan Stanley Infrastructure owns a majority stake in Continuum.

·         Continuum CEO Arvind Bansal said: “The Morjar onshore wind investment through GE EFS is a marquee transaction that can be replicated to enable future development of wind and hybrid projects in India.

·         “We are proud to partner with GE EFS through bespoke energy financing and renewables technology to continue to accelerate efforts to help support customers in the energy transition.”

Source

 

Top

Mumbai’s CSMIA becomes the first airport in the country to launch a Renewable hybrid power generation project

·         Chhatrapati Shivaji Maharaj International Airport (CSMIA) is India’s first airport to launch a one-of-its-kind Vertical Axis Wind Turbine (VAWT) & Solar PV hybrid (Solar Mill) to explore the possibility of utilization of wind energy at the airport. CSMIA has introduced this pilot program in collaboration with WindStream Energy Technologies India Pvt Ltd, which ensures 24/7 energy generation, harnessing maximum energy through wind power systems, while enabling highly efficient and low carbon future for aviation. This sustainable initiative undertaken by CSMIA reduces dependence on conventional electricity which propels its journey towards ‘Net Zero’ emissions.

·         An Aim to Reduce Carbon Emissions

·         Since its inception, CSMIA has been inching towards the reduction of carbon emissions under its Environment & Sustainability policy and GHG policy. Over the years, incredible efforts and strong beliefs in sustainable development have ensured minimal environmental footprint at the airport. Thus, to assist in enhancing capacity usage of green energy, CSMIA has deployed a 10Kwp Hybrid SolarMill consisting of 2 Kwp TurboMill (3 Savonious type VAWT) and 8 Kwp Solar PV modules with an estimated minimum energy generation of 36 Kwh/day.

·         WindStream Energy Technologies India Pvt Ltd has developed this novel and patented, first-of-its-kind, fully integrated, hybrid renewable energy product which harnesses solar and wind energy combined to generate electricity. The energy generated through this technology can be customized on a need-specific basis. Due to its modular and scalable size, it’s easy to mount the technology on any mobile or static rooftop. This technology is a vital step in deploying a solution at the airport that is renewable, clean, green, environment-friendly, bird-friendly, and a silent solution with a 25-year design life.

·         In FY 21-22, CSMIA used 9.41 MU of renewal (Solar and wind) power, which includes onsite solar power generation of 5.46 MU and wind power of around 3.94 MU. Thus, usage of solar and wind power has reduced ~7400 tCO2e emissions at the airport. CSMIA aims to replicate the project to increase the onsite renewal power generation in the coming years.

·         Share of Wind Energy to Renewable Energy Generation

·         According to the International Renewable Energy Agency (IRENA), wind energy contributes 27% of the world’s renewable electricity generation capacity as of April 11, 2022. It is estimated that VAWT technology will generate ~13140 KWh/annum for 25 years & will increase renewable energy in the existing energy mix and can reduce carbon emission to about 259515 KgCo2e (Kilogram of carbon dioxide equivalent per kilogram). This plant requires bare minimum maintenance of installation, unlike any other machines for electrical supply, where load & batteries are attached to the system.

·         In the wake of the growing carbon footprint globally, this innovative technology is yet another initiative taken by CSMIA, adding to a milestone in the sustainable brand value of the organization. CSMIA over the years has envisaged several sustainable innovations and projects such as green building designs, operational measures like A-CDM, electrically operated vehicles, and increasing renewable energy generation from 0 – 4.56 Mwp, to name a few. These initiatives have propelled CSMIA to become a carbon neutral airport by achieving ACA Level 3+ “NEUTRALITY” in 2016-17. CSMIA continues to bring in new and advanced sustainable practices timely to further boost the operational efficiency of the airport in a green way and endeavors to achieve ‘Net Zero’ carbon emission by 2029.

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Gujarat issues tender for 500 megawatts of renewables and storage

·         The electricity board of Gujarat in India has opened a competitive solicitation for renewable energy paired with energy storage systems (ESS) to bring electricity to off-grid villages in the state.

·         Gujarat Urja Vikas Nigam Limited (GUVNL) is Gujarat’s state-owned utility responsible administering the bulk sale and purchase of power on behalf of its government’s re-organisation scheme.

·         GUVNL is seeking to enter power purchase agreements (PPAs) for up to 500MW of grid-connected renewable energy and ESS capable of delivering the peak power requirements of local distribution companies (discoms). The utility group issued a Request for Selection (RfS) yesterday (14 June).

·         The 25-year PPAs will help GUVNL to meet its renewable power purchase obligations (RPPO) as well as the future needs of discoms.

·         Projects proposed can be either solar PV, wind or a combination of both, paired with energy storage. However, certain minimum capacity requirements apply based on the chosen combination: for instance, plants with wind and a co-located storage system without solar must be 25MW or more.

·         Meanwhile other configurations have a 50MW minimum requirement, and other stipulations apply such that if a wind-solar and battery hybrid is proposed, the smaller of the two renewable energy systems must be sized to at least 33% of the total contracted capacity.

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India Ranks Third in Renewable Energy Installations in 2021 – But Needs to Do More

·         India ranked third in renewable energy installations in 2021, after China and Russia, according to a global status report released on Wednesday, June 15. India installed 15.4 gigawatts (GW) of renewable energy projects in 2021, the report titled Renewable Energy 2022: Global Status Report published by REN21 (Renewable Energy Policy Network for the 21st Century) said.

·         It ranked fourth in total solar installations (60.4 GW) for the year – overtaking Germany (59.2 GW) for the first time.

·         The world, overall, added around 3,146 GW of total installed renewable power capacity in 2021 – a spike of 11% from the previous year. Despite this, the share of renewables in global energy use stagnated in 2021.

·         Renewable energy capacity is nowhere close to the targets that need to be met for global climate goals in this decade, as per the report. India, too, will have to do much more to reach its renewable energy target, said energy scientists.

·         As a means of achieving its climate goals, India has announced a target of 500 GW of renewable energy by 2030 through sources such as solar photovoltaic (PV) energy, wind and hydropower. Currently, projects worth almost $197 billion are underway in India, said Union minister of state for new and renewable energy, Bhagwant Khuba, on May 22.

·         REN21, a global collective of renewable energy actors, including scientists, governments such as India’s, non-governmental organisations and members of the industry, collated data on renewable energy installations, markets, investments and policies in countries across the world. More than 650 experts have contributed to the outcome of the report.

·         According to the report, despite the impacts of the COVID-19 pandemic, renewables saw a year of record growth in both investment and installation. Globally, renewable power capacity additions grew 17% in 2021, amounting to more than 314 GW of added capacity.

·         Overall, the total installed renewable power capacity globally grew 11% to reach around 3,146 GW. This included hydropower – with new capacity additions of at least 26 GW, and solar PV adding 175 GW of new capacity – a record high – in 2021 to reach a cumulative total of around 942 GW.

·         India also ranked third in total installed capacity of wind power at 40.1 GW – after China, the United States and Germany, and for developing hydropower projects – followed by China and Canada.

·         As per the report, India was also the second largest market in Asia for new solar PV capacity. Globally, India’s solar PV capacity addition ranked third with 13 GW of additions in 2021. It ranked fourth in the total solar installations at 60.4 GW, overtaking Germany (59.2 GW) for the first time.

·         India progressed in terms of investment in renewables, and policy too. The total new investment in renewables for the year 2021 increased by 70% to $11.3 billion. India also extended its national Rs 18,100 crore ($24.3 billion) solar production programme, which provides incentives to domestic and international companies for setting up battery manufacturing plants. In 2021, after India increased its cap on solar PV installations under its net metering scheme, the country’s rooftop PV market hit a record high, the report said.

·         Still not enough

·         But despite all this, the overall share of renewables in the world’s final energy consumption has stagnated – rising only minimally from 10.6% in 2009 to 11.7% in 2019 – and the global shift of the energy system to renewables is not happening, the report found. In fact, the renewable energy capacities achieved so far come nowhere close to the targets required to keep the world on track to reach net zero emissions by 2050.

·         The strong economic rebound in 2021 contributed to a 4% rise in final energy consumption, offsetting the growth of renewables. Progress across different sectors (such as the use of green energy in the transport industry) has also been uneven. As per the report, the invasion of Ukraine added to the energy crisis that the world saw in 2021. Governments, however, responded by increasing fossil fuel production and subsidies. Fossil fuels were burnt to meet the increase in energy demand worldwide (by around 4% in 2021) and this has caused a record surge in carbon dioxide emissions (up by 6%, adding more than two billion tonnes).

·         “Although many more governments committed to net zero greenhouse gas emissions in 2021, the reality is that, in response to the energy crisis, most countries have gone back to seeking out new sources of fossil fuels and to burning even more coal, oil and natural gas,” said Rana Adib, REN21 executive director, in a press release.

·         We’ll need more

·         While India added record-high capacities of renewable energy in 2021, it will take more for the country to reach its target of 500 GW by 2030, said Neeraj Kuldeep, Programme Lead, Council on Energy, Environment and Water (CEEW). India will have to increase the annual capacity deployments by a factor of three; one of the significant challenges is to integrate such a huge capacity in the grid, he told The Wire.

·         “Much of the installations so far have been in only five states where RE [renewable energy] already holds more than 40% share which sometimes even reaches 60-70% mark during the peak wind season. Adding more capacity within RE-rich states will require significant investment in inter-state transmission infrastructure and Discom buy-in from non-RE states for power off-take.”

·         The government has introduced a slew of initiatives such as the Performance Linked Incentive (PLI) Scheme, Green Open Access Rules, Green Term Ahead and Day-Ahead Market etc. that will accelerate RE deployment, Kuldeep added. On June 6, for example, India notified the Green Open Access Rules which facilitates the generation, purchase and consumption of green energy including that produced by waste-to-energy plants. Among the many things the Rules enable is open access, which permits such green energy to be accessed by more consumers, big and small.

·         “However, it is too soon to conclude whether these will deliver on their objectives and help India reach the 500GW goal,” Kuldeep said.

·         Renewable energy projects in India also come with their share of social and environmental impacts. Projects such as the solar power project in Karnataka’s Pavagada have come under scrutiny for the disruptions in traditional livelihoods and depletion in biodiversity they have caused.

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Investments worth ₹4 lakh cr required for India renewable energy project pipeline: Report

·         The completion of India’s renewable energy projects in pipeline would required around ₹4 lakh crore of capital investment, according to a joint report EY and FICCI.

·         Noting that India added over 15 GW of renewable power generation capacity in FY22, the report said that around 103 GW of utility-scale renewable power generation projects and 11 GW of distributed renewable power generation projects are in the pipeline with the potential to create 8 lakh and 96,500 fresh jobs, respectively.

·         Overall the projects would be able to avoid 4.35 billion tonne of carbon dioxide emissions over their lifetime, it said.

·         “India’s energy transition is gaining momentum post-Covid with strong backing from policy enablers focused on improving ease of doing business, competitiveness, and self-reliant supply chains," said the report titled ‘Accelerating India’s clean energy transition’.

·         According to the report, the role of state governments will be critical in the effective adoption and implementation of policies enabling ease of doing business and competitiveness of energy transition. Rigorous planning at the state level and predictable growth in demand for clean energy sources are essential for accelerating energy transition investments, it said.

·         Creating vertically integrated domestic supply chains can help build resilience against such forces in the long term, it added.

·         Somesh Kumar, partner for power and utilities at EY India, said: “India’s energy transition may leave fossil fuel industries, communities, and workers exposed to muted or declining demand for fossil fuel commodities in the long term. Understanding and addressing the social dimensions of the energy transition is critical to ensure that fossil fuel communities are not left behind.“

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Goa to use solar power energy :CM

·         From conventional energy sources like fossil fuels and coal, now Goa is stepping towards the use of non-conventional sources of energy which is solar power energy, Goa Chief Minister Pramod Sawant said on Thursday.

·         Speaking at a programme, he said most of the people from Goa don’t know about the power shutdowns which take place in other states.

·         'Being the power generating states, they always do a 12 hour shut down in their states, but in Goa, even after being a power dependent State, we don’t have shut downs,' he pointed.

·         The Government of Goa has entered into a MoU with the Government of Zambia for exploring the conventional heater technology, he said.

·         He highlighted the concentric heating plant which was recently installed at Goa University.

·         The chief minister appreciated government officers for implementing various new technologies in different sectors in Goa.

·         'If we all work together with full dedication then we will be able to make Goa as number one State technology wise as well as in other sectors too,' he added.

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India and Germany to be solar outperformers but miss install targets, Fitch says

·         India and Germany’s solar sectors are set to outperform in the coming years, but both markets will fall short of government PV deployment targets, according to Fitch Solutions.

·         The consultancy forecasts that India will more than double its solar capacity in the next decade, expanding from 49.3GW as of year-end 2021 to 139.5GW by 2031, driven by robust government support, a large project pipeline and ongoing private investment.

·         However, India’s underdeveloped grid network and domestic solar manufacturing capacity will hinder the solar sector’s ability for rapid expansion, Fitch warned, as it expects the country “to fall significantly short” of its target of having 300GW of solar deployed by 2030.

·         Its install forecast is far lower than research published earlier this year by think tank Institute for Energy Economics and Financial Analysis (IEEFA) and consultancy JMK Research & Analytics, which projected that India would have 214GW of solar installed by 2030.

·         Fitch said that while Prime Minister Modi has implemented incentives such as subsidy schemes, financing mechanisms and auction systems to encourage solar growth, higher equipment costs and logistical challenges pose a near-term challenge.

·         Research published in April from JMK found that module prices in India had increased ~38% in the previous 20 months, in part due to supply chain disruptions and rising solar demand.

·         Meanwhile, India’s power minister R K Singh doubled down on support for the country’s basic custom duty on solar cells and modules last week, saying there were “no plans” to change the system despite soaring module costs and a limited domestic supply.

·         Alongside India’s PV ramp-up, Fitch forecasts “steady growth” for Germany’s solar sector over the coming decade, thanks in part to strong government support as well as an attractive residential solar market.

·         Forecasting that solar capacity in Germany will increase from an estimated 59.6GW in 2021 to 131.9GW by year-end 2031, the consultancy said solar represents an integral part of the government’s long-term energy plan.

·         Nonetheless, those figures are notably lower than Germany’s new 2030 solar install target of 215GW.

·         To reach a goal of having 80% of electricity consumption from renewable sources by 2030, Germany aims to streamline renewables permitting, make more land available for solar and increase auction volumes.

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India needs Rs 4 lakh cr investment for 113GW renewable energy projects in pipeline: Report

·         India will need an investment of Rs 4 lakh crore for implementation of 113 gigawatt (GW) of renewable energy projects in the pipeline, a report said on Thursday. India's energy transition is gaining momentum post-COVID with strong backing from policy enablers focused on improving ease of doing business, competitiveness, and self-reliant supply chains, the joint report of EY-FICCI said.

·         According to the report titled 'Accelerating India's Clean Energy Transition', about 103 GW of utility-scale renewable power generation projects and 11 GW of distributed renewable power generation projects are in the pipeline in India.

·         "Total renewable power generation projects in the pipeline would need approximately Rs 4 lakh crore of capital investment with the potential to avoid 4,350 MT of CO2 emissions over their lifetime," it said.

·         The implementation of these projects will create a total of 8,96,500 fresh jobs, the report said.

·         Somesh Kumar, Partner and National Leader, Power and Utilities at EY India, said, "India's energy transition may leave fossil fuel industries, communities, and workers exposed to muted or declining demand for fossil fuel commodities in the long term. Understanding and addressing the social dimensions of the energy transition is critical to ensure that fossil fuel communities are not left behind."

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Oil & Gas(7 News Items)

Andhra Pradesh: Fuel crisis grows as oil cos slash supplies

·         With the oil companies slashing supplies to petrol pumps across Andhra Pradesh, petrol and diesel crisis is being reported in cities, towns, and rural pockets for the past few days.

·         Petroleum dealers said the oil companies have restricted the fuel supply and are providing only 30 to 40 per cent of total demand which is triggering fuel crisis. The private oil companies have already stopped sales at their pumps in cities and towns. Eventually, the load shifted to the petrol pumps of other oil companies.

·         Speaking to TOI, president of Federation of Petroleum Traders, Andhra Pradesh, R Gopala Krishna said there are over 4,000 petrol pumps, including 400 pumps of private companies, in AP.

·         “Earlier, the oil companies supplied oil to petroleum dealers on credit basis. Now, we are paying advance to oil companies. But, for the last couple of days, we have been forced to wait for supply from them,” he added.

·         “The prime reason for the shortage of fuel in the state is the closure of petrol pumps of private companies for past two weeks. When their pumps are closed, the burden lands on the petrol pumps of other companies.

·         “The second reason is that the supply is being reduced by BPCL and HPCL. The Indian Oil Corporation is giving good supply. The third reason is that the oil companies have stopped supply to RTC and some other organisations,” Gopala Krishna added.

·         Meanwhile, consumers are forced to wait for 30 minutes to one hour to get fuel at the pumps as there is no stock at some pumps and others are closed.

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OIL signs pact with homiHydrogen for green hydrogen

·         Oil India Ltd, the nation's second-largest national oil and gas explorer, on Thursday said it has signed an initial agreement with homiHydrogen to work together in the green hydrogen value chain. The memorandum of understanding (MoU) signed with homiHydrogen Pvt Ltd is "to boost India's efforts towards energy transition for achieving net-zero by 2070 and support development of indigenous technology and manufacturing under Atmanirbhar Bharat in the field of hydrogen and green energy technology," a company statement said.

·         homiHydrogen is a joint venture company established by electrolyser experts from Germany, Switzerland, Italy and Norway to manufacture all the four types of electrolysers under one roof. It is promoted by well-established companies like h2e Power Systems Pvt Ltd, Bluebasic Ama Engineering Pvt Ltd and Greenstat Hydrogen India Pvt Ltd.

·         "OIL and homiHydrogen plan to work together to establish a framework that can enable the parties to study, structure and agree on a possible long-term partnership, which could include manufacturing and packaging of electrolysers in India and become an integral part of the Green Hydrogen value chain," it said.

·         The collaboration will provide impetus toward a hydrogen economy in the country, the statement added.

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At the helm of oil and urban affairs, Hardeep Singh Puri is Adda guest today

·         As Union Minister of Housing and Urban Affairs and Petroleum and Natural Gas with Cabinet rank, diplomat-turned-politician Hardeep Singh Puri is at the helm of departments and ministries that play a critical role in influencing India’s growth story.

·         As a diplomat and a former Union Minister of Civil Aviation, Puri — the guest at Express Adda on Friday — was one of the four Cabinet ministers tasked with coordinating the government’s massive efforts towards evacuating Indian students stranded in Ukraine after Russia attacked the former on February 24.

·         In his role as Minister for Petroleum and Natural Gas, Puri is entrusted with the task of increasing domestic production of crude oil and natural gas, alongside generating a gas-based economy that entails a renewed focus on improving the availability and utilisation of the cleaner fossil fuel.

·         With the recent cut in excise duty on petrol and diesel, and the government’s intervention in ensuring the addition of sanction-hit Russia’s deeply discounted crude oil into its overall supply basket, the minister has his work cut out in ensuring that the impact of spiralling global fuel prices is as transitory as possible, given the spiralling inflationary trend.

·         Retail or Consumer Price Index-based inflation has remained over the Reserve Bank of India’s upper band of 6 per cent for five months in a row, prompting the central bank to hike policy rates and kill whatever little demand the economy has seen as India emerges out of the Covid-19 pandemic.

·         As Union Housing and Urban Affairs Minister, Puri has an overarching mandate over the development of urban infrastructure, at a time when there is immense stress on the infrastructure of most Indian towns and cities, including water supply resources, sanitation, the housing for all target, and also the task of leveraging the use of data, technology and innovation in the planning and management of cities.

·         A 1974 batch Indian Foreign Service officer, Puri also served as the Permanent Representative of India to the United Nations between 2009 till 2013 ahead of joining the Bharatiya Janata Party in 2014.

·         As part of his urban re-engineering mandate, Puri is in charge of Narendra Modi-government’s key flagship schemes such as the Pradhan Mantri Awas Yojana – Urban (PMAY-U), Pradhan Mantri Ujjwala Yojana and the Swachh Bharat Abhiyan, among others. His ministry also oversees the ambitious Central Vista Redevelopment Project aimed to reshape India’s seat of power at Raisina Hill.

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Fuel crunch looms in Rath season

·         Petrol and diesel dealers in the state have been staring at supply crunch after two private players (Reliance and Essar) have temporarily shut down most of their petrol pumps due to depleting profit margin. The shortage is being felt more in petrol pumps in small towns and rural areas, prompting the Utkal Petroleum Dealers’ Association (UPDA) to urge the Centre and the state governments to ensure proper supply of petrol and diesel to the state ahead of Rath Yatra and the agriculture season.

·         “Since this is the time of Rath Yatra, there is a huge influx of devotees to Odisha. Besides, there is the marriage season as well and people would need a seamless supply of petroleum products. Moreover, with the onset of monsoon, farming activities will start and supply of diesel is an essential ingredient for farmers,” wrote UPDA general secretary Sanjay Kumar Lath in a letter to minister of state for petroleum and natural gas, Rameswar Teli.

·         “Just when we have recovered from the effects of the pandemic and the economy also showing signs of improvement, the rationing of fuel products will break the backbone of all dealers,” he added, seeking urgent intervention of the petroleum ministry and the food supplies and consumer welfare department of the state government to ensure smooth supply of petroleum products to the state.

·         The supply chain has been disrupted in Bhubaneswar and other bigger cities as well but not to an extent as the rural areas, as it would give bad publicity to oil companies, Lath claimed.

·         Expressing concern over the deepening crisis, dealers said private oil marketing companies have stopped retail sales from their outlets leading to pressure on public sector companies, which supply fixed volume to states. This has become a headache for dealers while customers are running from one retail outlet to another.

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New domestic LPG connection gets expensive; gas regulators become dearer too

·         If you're planning to take a new domestic liquefied petroleum gas (LPG) connection, then you may have to shell out more money, as oil marketing corporations (OMCs) Indian Oil, Bharat Petroleum and Hindustan Petroleum, have increased the security of new cylinders.

·         The new rates are effective June 16, 2022.

·         With the latest revision, customers will now have to pay Rs 750 more for the service. The new price stands at Rs 2,200 per connection, up from the previous charge of Rs 1450 per connection.

·         In addition to that, the customers taking two cylinders, weighing 14.2 kg each, at the time of taking a connection will have to pay Rs 1500 for the connection fee. This means that customers will now have to pay Rs 4,400 as security for taking two cylinders on taking a new connection.

·         The price of gas regulators has also moved up. The customers will be required to pay a sum of Rs 250, earlier 150, to get a regulator.

·         For the pipe and passbook, which comes with every new connection, Rs 150 and Rs 25 will have to be paid respectively.

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Reliance Industries in focus as benchmark refining margin inches up

·         A benchmark of profitability for crude refiners has increased steadily in the past few weeks, bringing companies like Reliance Industries (RIL) into the spotlight.

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Higher prices of natural gas take the steam out of gas utility stocks

·         A sharp rise in the price of natural gas has impacted the margins of downstream players. The domestic price of natural gas was reset in April to $6.1 per metric million British thermal units (mmBtu), from $2.9 per mmBtu in the earlier six-month period. There is a price ceiling of $9.92 per mmBtu for deepwater and ultra-deepwater gas - a hike from $6.13. The next reset will be in October.

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Coal(5 News Items)

Power sector’s dues to Coal India up 8 per cent m-o-m in May

·         Coal Ministry says CIL has increased coal supply despite high outstanding dues from the State utilities

·         The outstanding dues of state-run Coal India (CIL) from the power sector rose by 8 per cent on a month-on-month (m-o-m) basis to ₹13,825.20 crore at the end of May from ₹12,819.09 crore in April.

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India has scope to produce hydrogen from domestic coal

·         An expert panel constituted by the government has suggested that India has enough potential to produce hydrogen from domestic coal and the country should strongly pursue this option.

·         This assumes significance in the wake of Prime Minister Narendra Modi annoucing hydrogen mission on India's 75th Independence Day. Hydrogen is a clean fuel and can serve as a possible substitute to liquid and fossil fuels. It is also the most abundant element in the universe, making up more than 90 per cent of all known matters. "India has an opportunity to produce hydrogen from domestic coal and we may aggressively pursue this option in our overall hydrogen ecosystem," the expert committee said in its report on roadmap for coal to hydrogen production. The panel also suggested for setting up of a couple of semi-commercial gasification units to convert coal to hydrogen. The integration of Carbon Capture Utilisation and Storage (CCUS) units along with gasification, it said, can be explored so that blue hydrogen thus produced is more acceptable.

·         "The gasification technologies may be selected based on assessment of the potential for eventual commercial upscaling and keeping the option of biomass co-gasification along with coal subject to availability of biomass in the close vicinity of such gasification units," the panel said. The coal gasification units should be set up near the hydrogen demand centres or close to the coal mines. The cost of transportation of hydrogen would be high at present and hence there was a need to examine the economics before deciding upon the locations of gasification plants. "Alternatively, we could establish the plants closer to the natural gas grid so that hydrogen thus produced could be injected to some extent i.e. up to 18-20 per cent into the natural gas pipelines, as to that extent of hydrogen injection in the natural gas pipelines may not need the modification of the gas pipelines," the panel recommended.

·         This, it said, will facilitate the utilisation of hydrogen produced from coal in the industries currently using imported natural gas. The coal ministry had earlier said that coal has not been encouraged elsewhere because of the fear that while extracting hydrogen via coal (from the moisture embedded in coal) there may be carbon emission. Currently, hydrogen is used mainly in refining - to remove sulphur from crude oils - and fertilizer production except small usages in other sectors like chemicals, textiles, and electronics.

·         Total demand of hydrogen in 2021 was around 6.7 million tonnes, of which around 54 per cent or 3.6 million tonnes was in petroleum refining, three million tonnes in fertilizer production and 0.1 million tonnes in gas-based DRI (Direct Reduced Iron). It is expected that the demand of hydrogen in the country may shoot up to 11.7 million tonnes by 2030 with 6.8 million tonnes in refinery, 4.6 million tonnes in fertilizer and around 0.3 million tonnes in DRI steel making. Looking at the future, hydrogen has a number of potential applications that could be significantly expanded across a range of end-use sectors from transportation to electric power to industry. For example, hydrogen can be used in fuel cells to power passenger and commercial vehicles, heavy-duty trucks, buses, trains and waterborne vessels.

·         It is projected that the demand can increase to around 28 MT by 2050, driven by cost reductions in key technologies, as well as the growing imperative to decarbonise the energy system. Demand will continue to be largely focused in industry sectors, either expanding in existing sectors such as fertilizers and refineries, or growing into new sectors such as steel. Hydrogen can also be stored for use in power generation to manage load in power systems when intermittent renewables are not available.

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India may need USD 10 trillion investment to achieve net-zero emission by 2070: Study

·         India will need an investment of over USD 10 trillion to achieve its net-zero emission target by 2070, a report said on Thursday. Prime Minister Narendra Modi had announced India's zero emission target to be achieved by 2070 at COP-26 (26th United Nations Climate Change Conference in 2021).

·         "India may require an investment of over USD 10 trillion to achieve its net-zero target by 2070," a joint white paper issued by GE-EY said on Thursday.

·         It said that India would continue to rely on coal power, at least in the near future. Thus, the country needs to focus on and incentivise cleaner coal technology to further reduce carbon emissions.

·         The report further recommended policy initiatives "essential for a future driven by sustainable industries."

·         To achieve the target, India must overcome import-dependence in the energy sector through measures that incentivise domestic production like the Production Linked Incentive (PLI) scheme, it suggested.

·         Leveraging carbon capture technologies for the usage of coal-based energy, which is the largest source of primary energy and is domestically sourced, besides encouraging the promotion of green hydrogen through demand-side incentives and policies to bring down costs is also essential to meet the goal.

·         "Most importantly, create carbon markets and incentives for the adoption of clean energy technologies. India also needs to undertake several policy measures to help deepen the green bond market to facilitate financing," it said.

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Govt aims to build 40 MT coal stock at power plants to ensure supplies during monsoon

·         The government is gearing up to increase the stock of coal at power plants to 40 million tonne (MT) during the monsoon season, Union power minister R K Singh said. The minister said right now, there are reserves of around 22.9 MT at the power plants.

·         "On April 1, our reserve stock at power plants was at 24 MT. On April 30, it came down to 19 MT and on May 15, it came down to 15 MT. However, because of (coal) imports, it has gone up to about 22.9 MT again," the minister said, replying to a question related to coal availability.

·         When asked if the government is planning to increase the buffer stock of coal anticipating production and supply issues during the approaching rainy season, he replied in affirmative.

·         "This happens every year during the rainy season. The domestic coal production falls. So we are preparing for that. During the monsoon July-September, daily demand will come down to 2.1 MT because the temperature will drop.

·         "But at the same time domestic coal supply will also come down. So, the gap will be increasing. That's why this import is happening. I believe the buffer should be at least in the range of 40 MT," the minister said.

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India has scope to produce hydrogen from domestic coal: Expert panel

·         An expert panel constituted by the government has suggested that India has enough potential to produce hydrogen from domestic coal and the country should strongly pursue this option. This assumes significance in the wake of Prime Minister Narendra Modi annoucing hydrogen mission on India's 75th Independence Day.

·         Hydrogen is a clean fuel and can serve as a possible substitute to liquid and fossil fuels. It is also the most abundant element in the universe, making up more than 90 per cent of all known matters.

·         "India has an opportunity to produce hydrogen from domestic coal and we may aggressively pursue this option in our overall hydrogen ecosystem," the expert committee said in its report on roadmap for coal to hydrogen production.

·         The panel also suggested for setting up of a couple of semi-commercial gasification units to convert coal to hydrogen.

·         The integration of Carbon Capture Utilisation and Storage (CCUS) units along with gasification, it said, can be explored so that blue hydrogen thus produced is more acceptable.

·         "The gasification technologies may be selected based on assessment of the potential for eventual commercial upscaling and keeping the option of biomass co-gasification along with coal subject to availability of biomass in the close vicinity of such gasification units," the panel said.

·         The coal gasification units should be set up near the hydrogen demand centres or close to the coal mines.

·         The cost of transportation of hydrogen would be high at present and hence there was a need to examine the economics before deciding upon the locations of gasification plants.

·         "Alternatively, we could establish the plants closer to the natural gas grid so that hydrogen thus produced could be injected to some extent i.e. up to 18-20 per cent into the natural gas pipelines, as to that extent of hydrogen injection in the natural gas pipelines may not need the modification of the gas pipelines," the panel recommended.

·         This, it said, will facilitate the utilisation of hydrogen produced from coal in the industries currently using imported natural gas.

·         The coal ministry had earlier said that coal has not been encouraged elsewhere because of the fear that while extracting hydrogen via coal (from the moisture embedded in coal) there may be carbon emission.

·         Currently, hydrogen is used mainly in refining-- to remove sulphur from crude oils -- and fertilizer production except small usages in other sectors like chemicals, textiles, and electronics.

·         Total demand of hydrogen in 2021 was around 6.7 million tonnes, of which around 54 per cent or 3.6 million tonnes was in petroleum refining, three million tonnes in fertilizer production and 0.1 million tonnes in gas-based DRI (Direct Reduced Iron).

·         It is expected that the demand of hydrogen in the country may shoot up to 11.7 million tonnes by 2030 with 6.8 million tonnes in refinery, 4.6 million tonnes in fertilizer and around 0.3 million tonnes in DRI steel making.

·         Looking at the future, hydrogen has a number of potential applications that could be significantly expanded across a range of end-use sectors from transportation to electric power to industry. For example, hydrogen can be used in fuel cells to power passenger and commercial vehicles, heavy-duty trucks, buses, trains and waterborne vessels.

·         It is projected that the demand can increase to around 28 MT by 2050, driven by cost reductions in key technologies, as well as the growing imperative to decarbonise the energy system. Demand will continue to be largely focused in industry sectors, either expanding in existing sectors such as fertilizers and refineries, or growing into new sectors such as steel.

·         Hydrogen can also be stored for use in power generation to manage load in power systems when intermittent renewables are not available.

Source

 

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Daily Newsletter 2022

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Thursday, June 16, 2022

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Infraline Comprehensive Power , Oil & Gas & Coal Only Detailed Newsletter

What’s New

Acts and Regulations

§  Order on Petition under Section 66 of the Electricity Act 2003 read with Regulation 25 of the Central Electricity Regulatory Commission (Power Market) Regulations, 2021 for approval of introduction of additional Term Ahead Contracts and Green Term Ahead Contracts beyond T+11 days at Indian Energy Exchange Limited. Indian Energy Exchange Limited (IEX)

§  Order on Petition under Section 66 of The Electricity Act, 2003 read with Regulation 25 of the Central Electricity Regulatory Commission (Power Market) Regulations, 2021 for approval of introduction of Month(s) Ahead Contracts at Power Exchange India Limited. Power Exchange India Limited

§  Order on Application under Section 63 of the Electricity Act, 2003 for adoption of transmission charges with respect to the inter-state transmission system being established by Gadag Transmission Limited (a 100% wholly owned subsidiary of ReNew Transmission Ventures Private Limited). Gadag Transmission Limited

§  Order on Application under Section 63 of the Electricity Act, 2003 for adoption of transmission charges with respect to the inter-state transmission system being established by Gadag Transmission Limited (a 100% wholly owned subsidiary of ReNew Transmission Ventures Private Limited). Gadag Transmission Limited

§  Order on Tripartite TSA executed between PGCIL, ACME and Fatehgarh-Bhadla Transmission Ltd., the TSA executed between ACME and PGCIL. and the LTAA executed between PGCIL. and ACME seeking directions to PGCIL to extend start date of LTA/commencement of LTA for ACME DSPPL, ACME DPPL. and align the same with the SCOD of the Projects as extended by SECI. ACME

View More...

Performance of State Discom

New!

Power

Haryana govt assures 8-hour power for sowing

The Haryana government has assured 8-hour electricity supply for the paddy season starting from Wednesday.

Disruption in electricity supply today

There will be no power from 10am to 5 pm on Thursday at AB Shetty Circle, Bharatiya Vidya Bhavan, SP’s Office, Police Lane, PWD, Commercial Tax office, Kerala Samajam, Old Kent Road, Dhoomappa Compund, Pandeshwar Katte and New Road, Rosario Church. There will be no power from 10am to 5 pm, in the Nandigudda area, on Thursday.

§  Power theft detected, ₹18L fine imposed

§  Paddy season: Power demand up 500 MW in Punjab in 24 hrs

§  Russia’s Rosatom supplies high-graded nuclear fuel to Kudankulam

§  Centre plans to hook up states to idle power plants

§  Tata Power arm commissions 66 MW EPC project for Vibrant Energy

§  Will Budgetary Support to promote Hydro Electric (HE) Power encourage DISCOMS to purchase power from HEPs?

[Poll Question]

Projects Update

Project Name

Promoter

Capacity

State

Dardu Hydro Power Project

KVK-ECI Hydro Energy Private Limited

60 MW

Arunachal Pradesh

Tidding II Hydro Power Project

Sai Krishnodaya Industries Pvt. Ltd.

75 MW

Arunachal Pradesh

Jameri Hydro Power Project

KSK Jameri Hydro Power Pvt. Ltd.

60 MW

Arunachal Pradesh

Attunli Hydro Power Project

Attunli Hydro Electric Power Company

680 MW

Arunachal Pradesh

Kolodyne Hydro Power Project Stage-2

NTPC

460 MW

Mizoram

Renewable Energy

 

Power Crisis, RPO Drives Haryana Regulator to Approve 1100 MW of Renewable Purchases

Comprising 300 MW of Hydro purchases at Rs 5.45/kWh from NTPC, and 800 MW solar and wind energy from SECI at Rs 2.24 and Rs 2.42 respectively, the purchase approvals were expected.

GE Finance takes 49percent Stake In Continuum Wind Energy Project In Gujarat

The project will employ GE Renewable Energy’s 2.7-132 onshore wind turbines and the company is contracted to supply, install and commission 55 units of the turbines.

§  MIAL Launches First Of Its Kind Vertical Axis Wind & Solar System

§  Crayon Motors And Bounce Infinity Collaborate For Battery Swapping Stations

§  Atlas Acquires Its First Wind Power Project

§  Rajasthan: Energy dept scraps duty waiver in solar policy

§  Felling of trees for solar power plants in Jodhpur raises hackles of locals, environmentalists

§  ReNew Power loss narrows to Rs 355 cr in March quarter

§  Green transition in India not fast enough, experts

§  Does Anti-Dumping probe benefit Domestic Solar Manufacturers in India?[Poll Question]

Projects Update

Project Name

Plant Owner

Capacity (MW)

State

Adani Chitrakoot One Solar Plant

Adani Solar Energy Chitrakoot One

25

Adani Kutchh One Solar Plant

Adani Solar Energy Kutchh One Limited

150

Gujarat

Shahjahanpur and Budaun Solar Plant

Adani Solar Energy Four Private Ltd

100

Uttar Pradesh

1200 MW ISTS Connected Projects (ISTS-V)

SBE Renewables Sixteen Pvt. Ltd.

180

Rajasthan

1200 MW ISTS Connected Projects (ISTS-V)

GRT Jewellers (India) Pvt. Ltd.

150

Tamil Nadu

Oil & Gas

 

Jharkhand Government slashes VAT on jet fuel to 4 per cent from a 20 per cent high

"The State Government will amend serial number one of Schedule- II Part-E of Jharkhand Value Added Tax Act, 2005 in order to improve the air connectivity in the state. Under this, the tax rate on Aviation Turbine Fuel (ATF) will be reduced from 20 percent to 4 percent," the statement said.

Uttar Pradesh: Security deposit of LPG connection hiked by 52 per cent

According to IOCL spokesperson, for 14.2 kg domestic LPG cylinder---one must shell out Rs 2,200. Currently, the security deposit is Rs 1,450.

§  Do you think Natural gas, diesel and petrol should have been included under GST?

[Poll Question]

§  Petrol, diesel sales jump in June

§  India stares at fuel shortage with spike in under-recovery at OMCs

§  India's fuel demand up 22 per cent YoY in May: S&P Global Commodity Insights

§  India's petrol consumption jumps by 54percent, diesel by 48percent in June

§  Russia Becomes India’s Second-Biggest Crude Oil Supplier

§  Oil more likely to touch $130-140 rather than go back to $100: Vandana Hari

Daily International Coal Prices

New!

Coal

Coal back in focus as scorching summer spikes energy demand

Demand for electricity from the agriculture sector will jump in the coming days as farmers get ready to sow for the Kharif season. Farmers have already started sowing paddy, the major Kharif crop, which is water-intensive. Any shortage in electricity supply will hit irrigation and farmers will be forced to resort to diesel pumpsets.

CRH study pitches for retiring old coal plants of 4,000 MW capacity

‘State would benefit by over ₹4,000 crore by repurposing old coal plants with clean energy’

§  Will Commercial Coal Mining attract global players to invest in India?

[Poll Question]

§  Coal ministry to have a 'just transition' division; WB to provide $1.1 mn

§  Imports of Coal and Coke

§  NLC India plans Rs 4,400 cr methanol project

Roads

 

Odisha: Sandy stretch on NH-16 from Gopalpur bridge poses threat to commuters

The present condition of that particular stretch is because of the sand falling off the hundreds of overloaded trucks and dumpers plying on the route.

Tamil Nadu: Road expansion work revived after 7 years

The government has revived the Thiruninravur-Thiruvallur road expansion work, which came to a halt seven years ago due to land acquisition issues.

§  Thiruvallam service bridge on NH 66 remains a non-starter

§  NHAI is Offering Internship Opportunities to Students; Stipend Up to Rs.15000

§  NH-169 widening: Greens ask for resurvey to save trees

§  Six-lane National highway in Kerala will be ready by 2025: PWD Minister

§  Twilang villages pool in money, repair damaged road

§  Do you think 100 percent FASTAG implementation will remove congestion at toll plazas?

[Poll Question]

Projects Update

Project Name

Promoter/Client

State

Length (Km)

Eight Laning Vadodara - Mumbai Section (Ankleshwar to Manubar KIM Expressway) (Phase-1A PKG-IV)

NHAI/ Ashoka Buildcon Limited

Gujarat,Maharashtra

13

Delhi-Vadodara Greenfield Alignment (NH-148N) (Pkg-03)

NHAI/Centrodorstroy India Pvt. Ltd

Haryana

31.88

Four Laning Belgaum- Khanapur NH-4A

NHAI/Ashoka Concessions limited

Karnataka

30

Four Laning Ring Road Bypass Nagpur City (Fetri to Dhargaon)Package-II (NH-7)

NHAI/MEP Infrastructure-Sanjosh India (JV)

Maharashtra

28.03

Four Laning Rimuli to Koida NH-215 (New NH-520) Pkg-I

NHAI/Montecarlo Pvt. Ltd.

Odisha

43.2

Power(7 News Items)

General


Haryana govt assures 8-hour power for sowing

·         The Haryana government has assured 8-hour electricity supply for the paddy season starting from Wednesday.

·         Coming as a relief for electricity distribution companies, more than 19,500 farmers have consented to opt for paddy’s alternate crop through registration in ‘Mera Pani Meri Virasat (MPMV)’ scheme. According to information, the electricity distribution companies have divided the entire agriculture zone in three parts. First part will be provided supply between 10pm to 6am, while second supply spell will be between 4am to 12pm and third batch will get supply between 10am to 6pm.

·         Additional chief secretary (power) P K Dass said sufficient electricity arrangements have been made through power purchase agreements, exchange agreements and own generation in the state. “Besides providing an assured 8-hour supply, we have also assured uninterrupted power supply to rural domestic consumers (villages) during night hours. As weather predictions too are favouring the state, we are hence expecting smooth flow in sowing season,” he said.

·         According to information, the state has made arrangements for over 12,000 MW supply during the sowing season which will last till the first week of August. Electricity officials have also reiterated that the arrangements will also ensure zero power cuts in industries and commercial centres as well.

·         “As on now we have sufficient coal stock and we are getting full supply from Yamuanangar, Jhajjar and Hisar power plants in addition to the share of the state from central channels,” Dass said.

·         Officials in the agriculture department said as of now, a total 46,249 acres has been released from paddy sowing during the year 2020-21 and 2021-22.

Source

 

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Disruption in electricity supply today

·         There will be no power from 10am to 5 pm on Thursday at AB Shetty Circle, Bharatiya Vidya Bhavan, SP’s Office, Police Lane, PWD, Commercial Tax office, Kerala Samajam, Old Kent Road, Dhoomappa Compund, Pandeshwar Katte and New Road, Rosario Church. There will be no power from 10am to 5 pm, in the Nandigudda area, on Thursday. The affected areas are, Marnamikatte, Monkey Stand, Subash Nagar, Shivanagar, Hoigebazaar, Mulihitlu, Jeppu and Bolar.

·         There will be no power in the Attavar area from 10am to 5 pm on Thursday. The affected areas are, Attavar, Milagres Church and Wenlock Hospital. There will be no power in the Yeyyadi, Haripadavu area, from 10am to 5 pm, on Thursday. The affected areas are, Maryhill, Yeyyadi, Haripadavu, Kuntalpady, KPT, Udayanagara, Land Links, Perlaguri and Padavinangady.

·         There will be no power from 10am to 5 pm on Thursday at Santhekatte, Nejaru, Mooduthonse, Kodibengre, Badanidiyoor, Kote Road, Kallianpur, KG Road, Hairabettu, Salmara, Mayadi, Ammunje, Perampalli, Nidamballi, Puttur, Gopalapura, Shantivana, Badanidiyoor and Garadimajalu.

·         There will be no power from 10am to 5 pm on Thursday, in Tenka, Yermalu, NS Road, Nandikoor, Nadsalu, Padubidri and Downtown. There will be no power in Karkala from 10 am to 5 pm on Thursday. The affected areas are, Belman, Nandalike, Janthra, Santhukoppala, Kodimaru, Kedinje and Mavinakatte.

Source

 

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Power theft detected, ₹18L fine imposed

·         The Punjab State Power Corporation Limited (PSPCL), on Wednesday, conducted checks in Aggar Nagar division and about 29 cases of theft and one of unauthorised use of electricity (UUE) were found. In the action that lasted several hours, Rs 18-lakh penalty was imposed on violators.

·         PSPCL superintending engineer Punardeep Singh Brar said, “Checks were conducted at PAU type-12 quarters, Baba Nand Singh Nagar, Aashiana Enclave, Ram Balraj Enclave, Jassian Road, and Sai Enclave Ladian Road. In the 29 theft cases and one UUE case tentative, assessment is about Rs 18 lakh.”

·         Ludhiana: The Punjab State Power Corporation Limited (PSPCL), on Wednesday, conducted checks in Aggar Nagar division and about 29 cases of theft and one of unauthorised use of electricity (UUE) were found. In the action that lasted several hours, Rs 18-lakh penalty was imposed on violators.

·         PSPCL superintending engineer Punardeep Singh Brar said, “Checks were conducted at PAU type-12 quarters, Baba Nand Singh Nagar, Aashiana Enclave, Ram Balraj Enclave, Jassian Road, and Sai Enclave Ladian Road. In the 29 theft cases and one UUE case tentative, assessment is about Rs 18 lakh.”

·         VDO.AI

·         This is the second biggest anti-theft operation by the PSPCL in a fortnight and a senior officer said more such punitive actions will be conducted in the coming days. Recently, power minister Harbhajan Singh had also sought action against power theft. He had said teams of the enforcement and distribution wings were conducting regular checks in all zones of PSPCL and taking stern action, besides imposing hefty fines. The minister had also released a WhatsApp number (96461-75770) for reporting power theft cases.

·         Power shutdown

·         On Thursday, 11 KV feeders will remain off due to maintenance work from 10am to 5.30pm. Some of the areas where power will remain affected include Seera Road, Dhrampura Colony, Bajigar Colony, Harkrishan Vihar, Meharban, Seera, Kaptan Colony, Mangat, Vidya Vihar and GK Estate. TNN

Source

 

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Paddy season: Power demand up 500 MW in Punjab in 24 hrs

·         The power demand in Punjab reached around 12,520 MW on Wednesday as the paddy season picked up pace in the border belt of the state.

·         Meanwhile, some parts of the state faced outages, but the PSPCL claimed that “no cuts were imposed as ample electricity was available”.

·         According to the PSPCL officials, the power demand this time has been considerately high as compared to the previous year. “In a single day, our power demand jumped by over 500 MW to 12,520 from 12,007 MW on Tuesday,” they said. “However there were no cuts imposed as sufficient power was available,” they added.

·         Meanwhile, dwindling coal stocks is also a cause for concern for the PSPCL as almost all thermal plants are short of the required stock. The state-owned thermal plant at Ropar is left with 14.9 days of coal, while the Lehra Mohabbat plant has 15-day stock. The private sector is also facing coal shortage with the Nabha thermal plant at Rajpura left with 20.7 days, Talwandi Sabo 4.9 days and GVK Goindwal Sahib 1.9 days of stock.

·         Since June 1, imported coal is being used by 10% blending at two thermal plants while for Lehra Mohabbat and Ropar, the stock will reach on June 20.

·         Moreover, the PSPCL is taking up the matter with the Centre for the allocation of 1,500 MW additional power to Punjab for the paddy season. “Hope it is done soon,” said a top-brass PSPCL official.

Source

 

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Russia’s Rosatom supplies high-graded nuclear fuel to Kudankulam

·         Russia’s state atomic energy corporation Rosatom has supplied the first batches of highly efficient and upgraded nuclear fuel to the Kudankulam Nuclear Power Plant (KKNPP) in Tamil Nadu. The new fuel is cost-effective and reliable compared to the UTVS fuel model, which was earlier supplied to the KKNPP.

·         “The TVEL fuel company of Rosatom has supplied the TVS-2M nuclear fuel for units one and two of the Kudankulam Nuclear Power Plant (KKNPP) in order to increase the economic efficiency of the plant. After the next refuelling, the VVER-1000 reactor at unit 1 will begin operating on a 18-month fuel cycle,” Rosatom said in a statement.

·         TVS-2M fuel assemblies have several advantages, said the statement, making them more reliable and cost-efficient. “First, it is the rigidity of a bundle: because of the welded frame, the fuel assemblies in the reactor core retain their geometry, the spacer grids protect fuel rod cladding from fretting wear (preventing from depressurization), and the additional spacer grid makes fuel assemblies more vibration-resistant. Secondly, the new fuel has increased uranium capacity - one TVS-2M assembly contains 7.6 per cent more fuel material as compared to UTVS.”

·         Besides, the special feature of the Kudankulam fuel in particular is the new generation anti-debris filter ADF-2, protecting bundles from debris damage, which may be caused by small-size intrus objects in the reactor core. Operation in longer fuel cycles also enhances economic efficiency of a plant, as reactors have to undergo stoppage and refuelling less frequently, so the power units produce more electricity. Besides, the power plant needs to purchase less fresh fuel, and as the result, has to deal with smaller amounts of spent nuclear fuel, which also requires expenses.

·         “We offer to our foreign clients the solutions which have proved successful performance at the Russian nuclear power plants. TVS-2M fuel is efficiently operated in 18-months fuel cycle at Rostov NPP and Balakovo NPP in Russia, as well as Tianwan NPP in China. Fuel bundles with ADF-2 anti-debris filter have also showed good results at Rostov NPP. Besides, all VVER-1000 reactors in Russia operate at higher capacity, 104 per cent of the nominal, and this experience is also a matter of interest of nuclear power plants operators abroad,” Alexander Ugryumov, senior vice president for research and development at TVEL, said.

·         KKNPP is the largest nuclear power plant in India, involving six VVER reactors. The plant involves the construction of six units with VVER-1000 reactors with an installed capacity of 6000MWe. The first stage - units 1 and 2 - was put into operation in 2013 and 2017. Units 3-6 are under construction.

Source

 

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Centre plans to hook up states to idle power plants

·         The Centre is likely to offer about 8 GW of electricity to states for the medium to long term from projects that are idling as they don't have coal linkages or purchase tie-ups, said people with knowledge of the matter. The Centre will aggregate demand from states facing power crises and then auction it to these stressed projects through tariff-based bidding.

·         The auctioned power purchase agreements will have coal earmarked to plants that emerge as the lowest bidders.

·         "The bids will be an opportunity to states that were caught unprepared to meet power demand surge over the last few months," a senior government official said. "It will also be an opportunity for idling power plants to become operational and will increase electricity availability."

·         Medium-term Contract: 5 Years; Long-term: 15 Years

·         Commissioned coal-based power projects with a capacity of about 8 GW are languishing for want of contracts with power distribution companies and fuel supply arrangements.

·         "Many states were scrambling for electricity to meet the power demand in March and April, when there wasn't much wind and hydro generation. Frantic calls were being made to power generation companies," the official said.

·         The medium-term contract is expected to be for five years while the tenure for the long-term ones has been reduced to 15 years from 25 years earlier.

·         Similar aggregation schemes were tried by the Centre in 2018 and 2019 to help plants that could not get bids from states and ended up stressed. These schemes had limited success.

·         "The last aggregation scheme received a tepid response from distribution companies, but we now see demand for medium-term and long-term contracts," the official said.

Source

 

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Tata Power arm commissions 66 MW EPC project for Vibrant Energy

·         Tata Power Company on Wednesday announced that its wholly-owned subsidiary, Tata Power Solar Systems, commissioned an engineering, procurement, and construction (EPC) project of 66 megawatt (MW) for Vibrant Energy.

·         The project will produce 110,029 units of energy annually. The installation will lead to a reduction of carbon emissions of up to 9 lakh tonnes. The project is spread over 191 acres comprising 1,27,268 solar modules and the project has been completed within a record nine-month period.

·         Commenting on the project commissioning Dr. Praveer Sinha, CEO & MD of Tata Power, said, "We consider the commissioning of this large EPC project for Vibrant Energy to be a significant accomplishment since it demonstrates our best-in-class project execution capabilities."

·         The Tata group company said that with the commissioning of this project, the company's total utility-scale solar project portfolio touches 9.7 GWp.

·         Vibrant Energy's mission is to lead the transition of corporate & industrial (C&I) customers to a more sustainable, resilient, and low-cost energy future. The platform has been delivering on this mission through its extensive project portfolio of 859MW Assets Under Management across India. Vibrant Energy is an indirectly owned portfolio company of Macquarie's Green Investment Group (GIG) operating on a standalone basis.

·         Tata Power Solar is one of India's largest integrated solar companies.

·         Tata Power is one of India's largest integrated power companies and together with its subsidiaries and jointly controlled entities, has an installed/managed capacity of 13,635 MW. The company has a presence across the entire power value chain - generation (renewable, hydro and thermal power), transmission & distribution, coal & freight, logistic, trading and consumer-facing solar rooftop and electric vehicle charging businesses.

·         On a consolidated basis, Tata Power Company reported 28% rise in net profit to Rs 503.11 crore on 15.4% increase in net sales to Rs 11,959.96 crore in Q4 FY22 over Q4 FY21.

·         Shares of Tata Power Company fell 0.70% to close at Rs 218.90 on the BSE.

Source

 

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Renewable(9 News Items)


Power Crisis, RPO Drives Haryana Regulator to Approve 1100 MW of Renewable Purchases

·         The Haryana Electricity Regulatory commission, in two orders within days of each other, has approved total RE purchases of 1100 MW for the state. Driven by both the power crisis being experienced by the state as well as the pending and future RPO obligations, the state regulator did make the Hydro power purchase from NTPC Vidyut Vyapar Nigam subject to Merit order despatch, thanks to its higher rate of Rs 5.45/kWh. This however is still much lower than the proce the state discoms have had to pay to procure power at the power exchanges recently.

·         Haryana faced a power deficit in the months of April and May 2022 to the tune of 2570 MW and 1786 MW quantum energy respectively.

·         The 300 MW power on short term basis is due from Kameng Hydro Power Station located at Kimi, West Kameng District, Arunachal Pradesh through NTPC Vidyut Vyapar Nigam Limited (NVVN) at a tariff of Rs. 5.45/kWh applicable at generator ex-bus including a trading margin for a period of 9 months up till March, 2023.

·         The approval of the Draft Power Supply Agreement (PSA) for procurement of 800 MW ISTS connected Wind Solar Hybrid Power under Tranche IV scheme of Solar Energy Corporation of India Limited (SECI) is at a levellized tariff of Rs. 2.34/kWh for 700 MW and Rs. 2.35/kWh for 100 MW plus a trading margin of Rs. 0.07/kWh for a period of 25 years. Originally the HPPC had requested SECI for 1200 MW, however, by the time it gave its approval, SECI informed it that only 800 MW was available.

·         The Solar Hybrid Power comes from SECI’s under ISTS (Tranche-IV) Scheme. After adding SECI’s trading margins of 7 paise, the applicable tariff including the trading margin under the PSA will be Rs. 2.41/kwh for 700 MW and Rs. 2.42/kwh for 100 MW, as it is a composite scheme.

·         Earlier the Commission in its ARR order dated 30.03.2021 had approved 1088.1 MUs and 2901.8 MUs from Non-solar and Solar sources for compliance of RPO for the FY 2021-22. The Commission has allowed carrying forward the RPO backlog of FY 2020-21 to FY 2021-22. The Commission in its order has mentioned that the RPO backlog for the FY 2020-21 shall form part of the total power purchase volume approved for the FY 2021-22 and set off against the costliest power in the merit order.

Source

 

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General


GE Finance takes 49percent Stake In Continuum Wind Energy Project In Gujarat

·         General Electric has declared that it has acquired a 49% stake in the Morjar wind energy project in Gujarat. The official statement says that GE Energy Financial Services and Continuum Green Energy (India) closed the financial deal of GE Energy Financial Services’ acquisition in the Continuum’s developed wind project.

·         Morjar is an onshore wind energy project of 148.5 MW in the Kachchh district. The project will employ GE Renewable Energy’s 2.7-132 onshore wind turbines and the company is contracted to supply, install and commission 55 units of the turbines.

·         GE says that the Morjar project is likely to be fully operational commercially in June 2022

·         GE claims that the present investment of the company demonstrates its ability to provide financial solutions to sophisticated customers like Continuum for supporting the energy transition initiatives. Also, the company says that its financial solutions can be replicated across India and the global market.

·         “Providing a bespoke financing product to a strategic customer strengthens GE’s partnership to continue to deliver accessible, affordable and reliable renewable energy across India to support the country’s decarbonisation and renewable energy targets,” said Gaurav Raniwala, Global Renewable Energy Leader at GE Energy Financial Services.

·         Continuum Green Energy is an India-focused renewable energy group. It has a portfolio of the capacity of more than 4 GW comprising 855 MW of operational capacity. The company sells renewable energy to DISCOMs, commercial and industrial clients.

·         Arvind Bansal, CEO of Continuum, said, “The Morjar onshore wind investment through GE EFS marquee transaction can be replicated to enable future development of wind and hybrid projects in India.”

·         On the other hand, GE Energy Financial Services has made considerable investments in several renewable energy projects in India. The total capacity of the company is over 1 GW and the projects of GE span across Madhya Pradesh, Rajasthan, Karnataka, Uttar Pradesh, Maharashtra, Andhra Pradesh and Gujarat. In 2021, GE emerged as the winner of 1.2 GW order in India and it became the largest wind turbine OEM and supplier in the country.

Source

 

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MIAL Launches First Of Its Kind Vertical Axis Wind & Solar System

·         Mumbai International Airport, Chhatrapati Shivaji Maharaj International Airport (CSMIA) has become India’s first airport to launch a one-of-its-kind Vertical Axis Wind Turbine (VAWT) & Solar PV hybrid (Solar Mill) to explore the possibility of utilization of wind energy at the airport.

·         CSMIA has introduced this pilot program in collaboration with WindStream Energy Technologies India Pvt Ltd, which ensures 24/7 energy generation, harnessing maximum energy through wind power systems, while enabling a highly efficient and low carbon future for aviation.

·         Thus, to assist in enhancing capacity usage of green energy, Mumbai International Airport has deployed a 10Kwp Hybrid Solar Mill consisting of 2 Kwp TurboMill (3 Savonious type VAWT) and 8 Kwp Solar PV modules with an estimated minimum energy generation of 36 Kwh/day.

·         Windstream Energy Technologies India Pvt Ltd has developed this fully integrated hybrid renewable energy product which harnesses solar and wind energy combined to generate electricity.

·         The manufacturer claims that this plant requires bare minimum maintenance of installation, unlike any other machines for electrical supply, where load & batteries are attached to the system. In FY 21-22, CSMIA used 9.41 MU of renewal (Solar and wind) power, which includes onsite solar power generation of 5.46 MU and wind power of around 3.94 MU.

·         CSMIA aims to replicate the project to increase the onsite renewal power generation in the coming years.

·         In FY 21-22, CSMIA used 9.41 MU of renewal (Solar and wind) power, which includes onsite solar power generation of 5.46 MU and wind power of around 3.94 MU. Thus, usage of solar and wind power has reduced ~7400 tCO2e emissions at the airport. CSMIA aims to replicate the project to increase the onsite renewal power generation in the coming years.

·         CSMIA over the years has envisaged several sustainable innovations and projects such as green building designs, operational measures like A-CDM, electrically operated vehicles, and increasing renewable energy generation from 0 – 4.56 Mwp, to name a few. These initiatives have propelled CSMIA to become a carbon-neutral airport by achieving ACA Level 3+ “NEUTRALITY” in 2016-17. CSMIA continues to bring in new and advanced sustainable practices timely to further boost the operational efficiency of the airport in a green way and endeavors to achieve ‘Net Zero’ carbon emission by 2029.

·         India seems to be setting an informal target of 2030 to make its airports net zero, and 2024 to ensure they are mostly powered by renewable energy, as per a report on SaurEnergy today.

Source

 

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Crayon Motors And Bounce Infinity Collaborate For Battery Swapping Stations

·         Crayon Motors, an Indian manufacturer of e-mobility solutions, and Bounce Infinity have joined their hands to establish the “first interoperated battery swapping network” for the convenience of the prospective customers across the country.

·         According to a press release issued by Crayon Motors, the customers can choose to buy a 2W or 3W without battery and make use of “Battery-as-a-Service” provided by Bounce Infinity catering to the niche market of the customers willing to swap their low batteries with the high powered 2Ws manufactured by Crayon. Spreading the network of the dealers out, Crayon Motors will make its presence ensured at almost every place within the reach of a customer. For example, residential complexes, petrol bunks, restaurants, cafes, co-living spaces, corporate offices, kirana stores etc.

·         Driven more by service, there will always be charged and ready-to-go batteries at every station where one can easily swap with their near-empty batteries in under a few minutes. With this infrastructure in place, customers wouldn’t have to wait for their vehicles to charge, be anxious about the range or remember to charge it.

·         Speaking about the partnership, Mayank Jain – Co-Founder and Director of Crayon Motors said, “We are thrilled to be partnering with Bounce Infinity. As we aim to expand to other regions, we wish to address the various difficulties that must be solved for a successful and seamless EV adoption in India. Along with our country-wide roadside assistance, we will also now be offering battery swapping.”

·         Aside from powering all “low powered” and “high powered” 2W’s manufactured by Crayon. Bounce Infinity would also be extending its “Battery-as-a-Service” to Crayon’s sister 3W brand – “Singham”, one of India’s leading electric 3W brand. This proposition shall allow Singham vehicles to be now sold under a new variant – E-Rickshaw with Battery-as-a-Service.

·         Crayon Motors manufactures electric scooters in Ghaziabad. The company with its make in India approach is focusing on high-speed two wheelers and has made significant investments in R&D to establish manufacturing plants for key components such as motors, controller, prototypes etc.

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Atlas Acquires Its First Wind Power Project

·         International renewable energy producer, Atlas Renewable Energy, has declared that it has acquired a wind project in the Brazilian state of Minas Gerais from the French energy producer and supplier Voltalia.

·         The statement released by Atlas Renewable said that the project, named Juramento, will have a generation capacity of 378 MW. It will be composed of 63 wind turbines.

·         Atlas informed that Juramento is it’s the second wind project, after the company announced the signing of a Power Purchase Agreement (PPA) with Enel Energía Chile last month for the development of the Alpaca wind portfolio (417 MW). Atlas also said that unlike Alpaca, Juramento does not have a PPA and the project open to any off-takers seeking renewable power in Brazil.

·         Luis Pita, General Manager, Atlas Renewable Energy in Brazil, said, “With Juramento we continue to expand and diversify our product offering across all the regions where we operate. This project is currently available for any large energy consumer looking for a PPA to transition from conventional sources of energy to renewable.”

·         As per Atlas, Juramento will generate 1,650 GWh per year, which is equivalent to benefiting about 800,000 Brazilian families and prevent 123,750 tons of carbon emission which could be compared to removing 49,500 cars from the streets of Sao Paulo. The structure of the transaction will be reviewed and finalized through Brazil’s Administrative Council of Economic Defense (CADE) in the upcoming days.

·         Atlas Renewable Energy delves in developing, financing, constructing, and operating renewable energy projects throughout the Americas since 2017. It claims to have longest track record in the renewable energy industry in Latin America.

·         Atlas also has other renewable energy projects running in Minas Gerais of Brazil. In February, it secured a $76 million loan from Northeastern Constitutional Financing Fund of Brazil’s Northeastern Bank for the construction of the Lar do Sol – Casablanca II solar plant. Subsequently, Atlas said it will be forming a joint venture with Albras to develop, build and operate a solar plant of 438 MW.

·         In May, it was reported that Global Infrastructure Partners (GIP) had agreed to buy Atlas to strengthen its presence in Latin America. The value of the deal is being reported at $2 billion.

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Rajasthan: Energy dept scraps duty waiver in solar policy

·         The energy department has withdrawn the electricity duty exemption given to the consumers of captive solar projects. The duty was exempted in the solar policy 2019.

·         Last year, some generators affiliated to Rajasthan Solar Association had approached the Rajasthan High Court against the duty charged by the discoms. The Jodhpur bench had stayed the duty demand of the discoms.

·         Recently, some buyers of the captive power had also approached the court against the billing of duty saying that they were exempted from the levy as per the provisions in the solar policy. The Jodhpur bench had provided them cover with a stay against the duty.

·         But in May 10, the energy department had issued an order removing the exemption from the policy. That means no projects after the order would be eligible for the electricity waiver. A representative of the industry said that this sends a wrong message to the investors community.

·         “If policy decisions are not implemented and changed, investors will not trust the government. The solar policy is a decision taken by the Cabinet. Investors come to the state based on the provisions of the policy. By changing the policy mid-way, you are only reducing the trust factor,” said the representative preferring anonymity.

·         He said before removing the policy decision, the department should have gone to the cabinet for a larger discussion. “Now, it seems that the energy department taken the decision without the Cabinet’s approval,” he added.

·         In fact, after the policy was rolled out, a notification should have been issued by the finance department. “Since, it was a policy decision, investors trusted it thinking the notification would be a natural process. But it never came,” he added.

·         The duty waiver was there for a couple years before it expired in March 2020. The solar policy too allowed duty waiver for seven years.

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Felling of trees for solar power plants in Jodhpur raises hackles of locals, environmentalists

·         While solar parks are being encouraged for providing clean energy, environmentalists and local communities in Rajasthan are concerned over their impact on the natural vegetation of the desert state. On Wednesday, riled by the felling of trees for setting up solar parks in Phalodi here, thousands of people from the Bishnoi community held a protest at Badi Sid village.

·         They alleged indiscriminate clearing of the desert landscape by uprooting of trees like Khejadi and the state tree Rohida along with native species of shrubs and grasses by these companies.

·         Recently, approval was given to eight companies to set up solar power plants in Badi Sid in Phalodi, with thousands of hectares of land taken by the companies on lease from the locals.

·         In order to clear the land for plants, these companies have been clearing the trees and other vegetation, which has worried local communities and environmentalists.

·         Demanding a detailed survey of the entire region to ascertain the loss of trees, the president of Akhil Bhartiya Bishnoi Mahasabha Devendra Budia claimed that 40 per cent of the area has already been cleared of the trees and it is continuing unabated.

·         The community and environmentalist, concerned about the fragile biodiversity of the desert, have been expressing their concern over the devouring of vegetative land of the desert by solar plants and windmills,

·         "It was shocking for us to have seen a large number of trees fallen and buried in the ground in Moderi Nadi to hide their deed.

·         "Seeing the burgeoning threat to the trees and wildlife here, we decided to take up the issue with the government", said Bhagwan Das Jambha, a priest who visited the site of dumping of trees with villagers and called the locals to assemble in Badi Sid for the demonstration.

·         The community members have demanded a master plan for solar plants in the desert and the allocation of barren or rejected land parcels, which do not have any vegetation, for the power plants.

·         They also demanded adding a condition in the agreement to plant trees on 30 per cent land of a power plant besides extensive plantation around the site.

·         With the world's biggest solar plant cluster at Bhadla in Phalodi, spread over a total area of 5,700 hectares with a total capacity of 2245 MW, the vast swathes of desert land have been fast turning into a mecca for solar power companies.

·         But while these plants have triggered rivalries among locals, cast and political groups to obtain contracts for works, they have also caused enormous concern to the environmentalists who fear that the desert ecology will be disturbed.

·         Anil Chhangani, Head of the Department (Environment Science) at Maharaja Ganga Singh University (MGSU) in Bikaner pitched for an audit of all power plants in the desert to assess their feasibility and any damage they caused to the environment and wildlife in the desert.

·         He said that due to the mass felling of trees for these power plants, not only is the habitat of many species threatened, but the natural vegetation that sustains livestock has also become sparse.

·         And with no fodder and water, the animals have been dying, he said.

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ReNew Power loss narrows to Rs 355 cr in March quarter

·         ReNew Power has reported narrowing of loss to Rs 355.4 crore for March quarter 2021-22 mainly on back of higher revenues. Net loss in the year-ago period was Rs 393.9 crore, a company statement said.

·         Total income in the quarter under review rose 31.1 per cent to Rs 1,761.5 crore.

·         Net loss in 2021-22 was Rs 1,612.7 crore as against Rs 803.3 crore in previous year.

·         Net loss in last fiscal year included Rs 1,322.4 crore of charges related to listing on the Nasdaq Stock Market LLC, issuance of share warrants, listing related share-based payments, and other factors, the company explained.

·         Total revenue in FY22 also rose by 27 per cent to Rs 6,919.5 crore as compared to the previous fiscal's.

·         "We saw our revenue jump by over 31 per cent compared to Q4FY21 and adjusted EBITDA surge by 49.4 per cent. This reflects the strong growth momentum in the business and the focused capacity addition that is continuing robustly," said Kedar Upadhye, Group CFO, ReNew Power.

·         The commissioned capacity of the company rose by 0.13 GW during Q4 FY22. As of March 31, 2022, the company's portfolio consisted of 10.7 GW of which 7.6 GW are commissioned and 3.1 GW are committed.

·         Subsequent to the end of the quarter, the company entered into definitive agreements to purchase 528 MW of renewable energy assets and signed an additional 1.6 GW of power purchase agreement bringing the company's total portfolio to 12.8 GW.

·         ReNew is one of the largest renewable energy independent power producers in India and globally. ReNew develops, builds, owns, and operates utility-scale wind and solar energy projects, and hydro projects.

·         As of June 14, 2022, ReNew had a gross total portfolio of 12.8 GW of renewable energy projects across India, including commissioned and committed projects.

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Green transition in India not fast enough, experts

·         India has been taking steps to curb air pollution but the transition to a green economy is not fast enough, experts said on Wednesday, calling on the government to adopt a proactive approach to reduce emissions. The comments came a day after a study by a US-based research institute said that the average Indian resident is set to lose five years of life expectancy if the WHO guidelines for PM2.5 pollution are not followed.

·         The study attributed the rise in air pollution in India to the industrialisation, economic development and population growth over the last two decades, which have led to a skyrocketing energy demand and fossil fuel use.

·         "These studies remind us about our struggle to solve the air pollution problem. They basically inform us about the huge cost of air pollution in terms of human health and economy...keep reminding us where we are failing," said Chandra Bhushan, president and CEO of the International Forum for Environment, Sustainability & Technology, an independent non-profit environmental research and innovation organisation.

·         He said India is a poor country and growth is important but the option is "green growth".

·         "We have made a good start in the energy sector and renewables are growing, but they're not growing fast enough. We will not be able to meet the 175-gigawatt target that we have set (in 2022).

·         "The government needs to accelerate the deployment of renewable energy and not invest in the fossil fuel industry because it won't be able to compete with renewables in 10 years from now," the environmentalist said.

·         He rued that the green transition is not happening fast enough in the industrial sector and the automobile sector.

·         "The automobile industry, which is dominated by old businesses in India, has not been very proactive on the production of electric vehicles. Most of the e-vehicles belong to new brands," Chandra Bhushan noted.

·         "Land degradation is another major challenge. One-third of the land in India is undergoing desertification. In summers, the biggest source of air pollution in Delhi is not automobiles, but dust," he added.

·         Gufran Beig, founder project director, SAFAR, said the government should accelerate its efforts to reduce air pollution and target capturing emissions at source.

·         There should be clear cut science-based solutions for mitigation.

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Oil & Gas(8 News Items)

Jharkhand Government slashes VAT on jet fuel to 4 per cent from a 20 per cent high

·         In a bid to strengthen air connectivity to the state and boost tourism, the Jharkhand government on Wednesday announced it had slashed VAT (value added tax) on Aviation Turbine Fuel (ATF) to 4 per cent from 20 per cent. The decision to reduce tax has been taken to increase air connectivity in the state and bring down airfares to boost tourism, a statement by the state government said.

·         "The State Government will amend serial number one of Schedule- II Part-E of Jharkhand Value Added Tax Act, 2005 in order to improve the air connectivity in the state. Under this, the tax rate on Aviation Turbine Fuel (ATF) will be reduced from 20 percent to 4 percent," the statement said.

·         The Notification shall be effective from the date of its publication in the Official Gazette, it said.

·         This decision is expected to bring down airfares, the statement said, adding "apart from increasing air connectivity in the state, this shall also provide a major boost to the tourism sector".

·         As many as 23 states have already lowered VAT on jet fuel from highs of 20-30 per cent.

·         ATF makes up for about 40 per cent of the operating cost of an airline. Jet fuel prices are at a record high in line with the global surge in energy prices. And since India is dependent on imports to meet its oil needs, the only way to cut jet fuel prices is to reduce taxes.

·         ATF presently is chargeable at an 11 per cent ad valorem rate of excise duty. A concessional rate of 2 per cent is applicable for ATF sold under the Regional Connectivity Scheme.

·         Ad valorem rate means the incidence of taxation rises whenever there is an increase in the base price.

·         ATF attracts both excise duty of the central government and sales tax or VAT of states.

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Uttar Pradesh: Security deposit of LPG connection hiked by 52 per cent

·         From Thursday, one has to pay 52 per cent more as security deposit for new LPG connection in Uttar Pradesh.

·         According to IOCL spokesperson, for 14.2 kg domestic LPG cylinder---one must shell out Rs 2,200. Currently, the security deposit is Rs 1,450.

·         Similarly, for a 5 kg cylinder Rs 1,150 would have to be paid, which is currently Rs 800.

·         For a gas cylinder regulator, one has to pay Rs 250 against the current fee of Rs 150. The security deposit and fee for gas cylinder regulator is refundable.

·         It’s important to note that charges for the new connections under Ujjawal scheme will not change.

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Petrol, diesel sales jump in June

·         India's petrol consumption jumped by 54 per cent and that of diesel soared by 48 per cent in the first fortnight of June from a year earlier with continuing demand recovery from a relatively low base in 2021 when the world's third-biggest oil user was in the grip of the second wave of Covid-19.

·         Petrol sales by state-owned fuel retailers, which control roughly 90 per cent of the market, at 1.28 million tonnes between June 1 and 14 was 54.2 per cent higher than the same period last year when a devastating second Covid-19 wave wreaked havoc on the economy.

·         This consumption was 48.2 per cent higher than the demand in the first fortnight of June 2020 and 25 per cent more than the 1.02 million tonnes of sales in the pre-Covid June 2019. Month-on-month sales were up 0.8 per cent, preliminary industry data showed on Wednesday.

·         Diesel, the most-used fuel in the country, saw sales jumping 47.8 per cent year-on-year to 3.4 million tonnes between June 1-14. This was 37.3 per cent higher than the corresponding period of June 2020 and 20.3 per cent more than the pre-Covid 2019 period. It was 12 per cent higher than the 3.03 million tonnes of consumption during May 1-14 this year.

·         Industry sources said consumption in June was higher because demand returned after high prices in the previous month impacted sales. Also aiding the demand was the start of the harvesting season.

·         Another factor was the low base effect.

·         Cooking gas, whose prices were hiked by Rs 103.50 per cylinder since March, saw sales rising by 4.21 per cent to 1.06 million tonnes in the first fortnight of June. This was 20.3 per cent higher than 2020 and 28.1 per cent more than June 1-14, 2019.

·         LPG consumption was 28.1 per cent more than June 2019 demand and 2.9 per cent higher than 1.03 million tonnes in May 2022.

·         Jet fuel (ATF) sales more than doubled to 242,900 tonnes as the aviation sector opened up after two years. ATF consumption was 125.1 per cent more than June 2020 but 16.5 per cent lower than the pre-Covid sales of 290,800 tonnes in June 2019. Month-on-month sales were up 1.2 per cent.

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India stares at fuel shortage with spike in under-recovery at OMCs

·         As oil marketing companies (OMCs) stare at huge under-recoveries, India is facing fuel shortage across the country with states like Rajasthan, Madhya Pradesh, Karnataka Uttarakhand, Gujarat and Haryana being the worst hit.

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India's fuel demand up 22 per cent YoY in May: S&P Global Commodity Insights

·         India's oil product demand in May was up 860,000 barrels per day or 22 per cent year-on-year from a low base in 2021, S&P Global Commodity Insights said in a note.