energy times vol 3

7/29/2019 energy times vol 3

1/4

INDIAS FIRST SOLAR WA-

TER TREATMENT PLANT

2222

HOW BPCL HEDGES ITSOPERATING COST

2222

CHINAS TOP 5 FACE HUR-

DLES

3333

WORLDS LARGEST DAM

COMPLETED

3333

SELCO SOLAR: A SOCIAL

ENTERPRISE

4444

WORLDS FIRST GREEN

CRUDE FARM

4444

Inside this issue:

Newsletter DateVolume 1, Issue 1

Energy Times Energy Times

In This issue

P.1 Huge Investment in Power System P.2 Indian Industry Trends

P.3 Global Industry TrendsP.4 Start-ups

Volume 7

No.-3October 2012

India to connect the Southern

Electricity Grid to the na-

tional network. Currently, all

regional electricity grids are

inter-connected except the

Southern.

This would facilitate the crea-

tion of the All India Synchro-

nous National Grid when all

the five grids Northern,

Eastern, Western, North East-

ern and Southern are inter-connected.

The setting up of national

highway of electricity grid

would be beneficial to all

regions by augmenting the

inter-regional capacity of

Southern region with rest of

To prevent another grid fail-

ure like those on July 30 and

31 that kept more than half of

the countrys 1.2 billion with-

out electricity, government is

spending huge amount to

strengthen and stabilize the

power system by its expan-

sion and upgradation. These

Power cuts are common

across swathes of India as the

country battles outages thatthe government shaves about

1.2 percentage points off an-

nual economic growth.

Recently government has

announced the Rs 1,930-crore

project that is undertaken by

Power Grid Corporation of

the grid. For instance, after

the Southern Grid is con-

nected, it would allow im-

port of electricity from other

regions to the Southern re-

gion during peak demand as

well as export of surplus

power from the Southern

region during off-peak de-

mand.

In addition, due to the exist-

ing and planned renewablegeneration capacity, the

Southern region would get

access to bigger market.

Moreover, it would help in

preventing massive black-

outs, like the ones that hap-

pened on July 30 and 31.

Page 1 of 4

A Monthly Newsletter by Energy Management Executives

Further Govt. plans to

spend 13.73 trillion rupees

to expand and upgrade its

power systems in the next

five years, most of which

will be led by generators

i n c l u d i n g s t a t e -

owned NTPC Ltd. (Indias

largest producer), Tata

Power ltd., Reliance Power

Ltd. (RPWR), Adani Power

Ltd. (ADANI) and LancoInfratech Ltd. (LANCI).

R e f : B l o o m b e r g . c o m

(Naresh Gupta, EMP)

Blackout Spurs huge investment in Power System

the lack of energy access for a

large part of the population,particularly in rural areas.

TERI will facilitate the access

and use of solar lighting de-

vices among Pakistans rural

communities after successful

interventions in Africa, South

Asia and South East Asia.

According to an estimate,

nearly 2.2 billion litres of

kerosene are used each year

for lighting purposes, while

about 5.5 million tonnes of

The Energy and Resources

Institute (TERI) in collabo-ration with LEAD Pakistan,

the Alternative Energy De-

velopment Board (AEDB)

Pakistan and the Buksh

Foundation will launch

the clean energy Lighting a

Million Lives (LaML) cam-

paign in Pakistan on October

12. This according to R.K.

Pachauri will enhance bilat-

eral relation where we face

common problems such as

CO are emitted into the at-

mosphere by burning ofkerosene. On the other hand,

each solar lantern in its 10-

year life replaces about 500-

600 litres of kerosene, miti-

gating about 1.5 tonnes of

CO. Marking the culmina-

tion of these events, a benefit

concert will also be held in

Pakistans culture hub, La-

hore, on the evening of Octo-

ber 13.

Ref.-The Hindu, 10th Oct(Surobhi Deb, EMP)

Lighting a Million lives campaign by TERI


2/4

Page 2 of 4

Energy TimesThink outside the Barrel

Cabinet approved bail-out to cash-strapped

power distributors torestructure Rs 1.9 lakh

crore of losses they have

accumulated due to lack

of periodic tariff revi-

sions and free power

schemes.

State-owned oil compa-nies IOCL, HPCL & BPCL

are working on a plan to

revise petrol prices once

every week or in 10days but the hike isunlikely to be more that

a rupee per litre.

For the first time an In-dian University, RGTU

will have low-cost and

most efficient solar-

based futuristic power

plant on Cross Linear

Concentrated Solar

Power (CL-CSP). This has

30% efficiency against

the conventional 15%. A 40-percent fall in wa-

ter inflow to the hydel

reservoirs due to 24-

percent deficit in mon-soon rainfall, skyrocket-

ing consumption and in-

adequate forecasting

have pushed Kerala into

a huge power crisis. CIL has refused negotia-

tions with regard to sup-

ply of 15 per cent of

imported coal on cost-

plus basis as part of fuelsupply agreement (FSA).

MNRE has identified fiveuser industries which re-

quire low and medium

temperature heat (60 to

250 degrees) for instal-

lation of 45,000 square

metres of solar collectors

-panels that generate

heat from suns rays-by

March 2017.

CESC and Tata PowerLtd. has taken over main-

tenance & billing opera-

tions of JSEB.

Headlines Scan India keen to set up Wave Power plants

How BPCL recovers its operating cost by Hedging?

mobile industry with an in-

tention to create wave

power plants with a total

capacity of 100 MW.

SDE says it has developed a

unique sea wave power

Alongside the Indian gov-ernment, SDE Is-

rael will work

with organizations

such as the Indian

Energy Develop-

ment Agency, the

Electricity Regula-

tion Committee

(MERC) and the

PTC amongst others.

As part of the project, SDE

Israel will create a string of

partnerships with Indian

companies including auto-

plant for generating electric-ity from wave power at a

cost of only two cents per

kWh. As per Company

source, essentially it consists

of a series of buoys posi-

tioned on top of a breakwa-

ter which moves up and

down with the motion of the

waves. This generates hy-

draulic pressure which is

then transformed into elec-

tricity.

Ref.-renewableenergyfocus.com(Rituraj, EMP)

shit and will

be operated

by NGO So-

cial Aware-

ness, Newer

Alternatives( S A N A ) .

Around 750

families from the economi-

cally weaker section living

near east Delhi's Surajmal

Vihar will soon be receiving

solar treated potable water.

The first water

treatment plant

that operates on

solar technol-

ogy was inau-

gurated at theR a j k i y a

Pratibha Vikas

Vidyalaya and will treat

5,000 litres of waste water

daily.

The project was inaugurated

by chief minister Sheila Dik-

Under this, waste water

from nearby areas will be

treated to meet World

Health Organization stan-

dards using solar powered

panels and micro-ionisingwater purification processes.

This will provide each of 750

family with five litres of po-

table water daily.

Ref.-The Times of India, 2nd Sept

(Rituraj, EMP)

Delhi gets first solar water treatment plant

BPCL currently operates

within the international over

-the-counter swaps markets.

Most corporate have been

dealing with forex for quite

some time. Petroleum hedg-

ing has begun to be used

much more recently. Over-

all commodity hedging is

slightly on the lower end

compared to other asset

classes. The reason for this is

major contribution of service

sector in the Indian econ-omy. Foreign exchange has

The purpose of hedging pro-

gramme is to ensure the op-

erating costs for the refiner-

ies are covered. Petroleum

Companies take a view on

what could happen in the

markets and ensure that

their product portfolio does

not fall below a specified

target. To do this, BPCL

trades derivatives tied to

Singapore prices for oil

product cracks, freight and

bunker derivatives andsome precious metals.

needed to be hedged for a

while since physical exports

and imports have been in

foreign currency. So natu-

rally, currency hedging had

previously taken priority.

BPCL only do bilateral con-

tracts. They dont engage in

any cleared derivatives

(OTC or exchange), nor do

they use brokers. Their en-

tire focus is on OTC bilateral

trade with their regis-

tered counterparties.(Mahendra Kumar, EMP)

A Typical Wave Power Plant

A Solar based Water Treatment Plant


3/4

Chinas five largest powergenerators own half of that

countrys power generating

assets. Faulty policies and the

rapidly changing global

economy have made it diffi-

cult for these companies to

fulfill the high expectations

arising from enactment of

the Power System Reform

S c h e m e o f 2 0 0 2 .

Chinas State Council issued

the Power System Reform

Scheme (Scheme) on April

12, 2002. The Scheme called

f o r r e s t r u c t u r i n g

(generation unbundling)

state-owned power assets

owned by the State Power

Corp. into five major power

generation corporations and

two power grid corporations.

By the end of 2010, these five

corporations represented49% of Chinas power gen-

eration capacity. Today, the

Top 5 face seemingly insur-

mountable problems that

threaten their continued exis-

tence.

The predicament faced by the

Top 5 is caused by three prin-

cipal factors:

Soaring Coal Prices: Ther-mal power accounts for

about 73.41% of the coun-

trys installed capacity.

Similarly, the Top 5 relied

on thermal power generated

by coal for about 80% of

their installed capacity in

2010.

Fuel costs for those plants

accounted for more than

70% of the total cost of gen-

erating electricity. When

coal prices fluctuate wildly,the Top 5s cost to produce

electricity also quickly

changes.

The Chinese government

gradually deregulated coal

prices beginning in 2002

and completely relaxed the

regulation of coal prices in

2005. In recent years, the

continuing rise of domesticcoal demand and interna-

tional crude oil prices has

sharply pushed up Chinas

coal prices. Since 2009, coal

prices decreased some-

what, although the price

has been very volatile.

Stagnant Electricity Mar-

ket Reforms: The electric-

ity generation sector has

been unbundled success-

fully, but the electricity

price reform portion of the

Scheme, part of the core

market reforms, has stag-

nated.

All electricity generators

sell electricity to the power

grid corporations at a fixed

benchmark price deter-

mined by the government.

C u s t o m e r p r i c e s

(residential and industrial)are likewise fixed by gov-

ernment tariffs. However,

the mechanism to allow

competitive bidding for

electricity sales by genera-

tion companies is still not

in place.

The fixed generation price

means that the generation

Chinas Top 5 Generating Companies Face Business Hurdles

Page 3 of 4

Energy TimesWind, water, Sun: Energy for the long run

Worlds Largest Dam CompletedChina in early July installed

the 32nd and final turbine of

its mammoth Three Gorges

Dam, virtually completing

the 1994-initiated hydro-

power project on the middle

reaches of the Yangtze River.

All that remains is a ship lift,

which should be completed

by 2015, authorities say.

The worlds biggest power

project, the 22.5-GW dam

accounts for nearly 10% of

Chinas total installed hydro

capacity of 230 GW, and it

figures prominently in Bei-

jings future ambitions to

retain hydropowers 20%

share in Chinas overall gen-

eration mix as it vies with

i t s n e i g h b o r s

for coal imports and grap-

ples with pressure to tamp

down carbon emissions.Ref: powermag.com

companies cannot pass oncost increases, such as the

rapidly rising price of coal,

to the power grid corpora-

tions or consumers in a

timely manner.

Unfavorable Economic

Conditions: To deal with

rising inflation, The Chi-

nese central bank (the Peo-

ples Bank of China, PBC)

has raised the loan interest

rate and deposit reserve

rate since early October

2009. The undesirable side

effects of the PBCs actions

were reduced funds sup-

ply, limited credit, and

soaring capital project fi-

nancing costs. As capital-

intensive enterprises,

power generation compa-

nies are facing a soaring

interest expenditure one x i s t i n g l i a b i l i t i e s

(commercial bank loans)

and unprecedented diffi-

culties in finding a means

to finance construction of

new power generation fa-

cilities.Ref: powermag.com

(Ajay Rawat, EMP)

(Deepankar Sharan, EMP)

The Three Gorg es Dam, the w orlds largest capacity hydroelectric powerstation, was completed and fully functional this July. The $50 billion projecthas 34 generators: 32 main generators, each with a capacity of 700 MW, andtwo plant power generators, each with capacity of 50 MW, bringing its totalcapacity to a stunning 22.5 GW. The project uses Francis turbines.


4/4

or enewsletter Log on:www.mdienergymanagement.blogspot.in/

or any suggestions & queries please

mailto

nergy Times Team

[email protected]

Welspun Energy Limited(WEL), leading renew-

able energy company

and IPP, has been se-

lected for the Asian

Power Award for being

one of the most innova-

tive power producers in

Asia for their 15 mega-

watt (MW) solar power

project at Anjar in Kutch

district of Gujarat.

Union Government isplanning to cancel nearly3 crore LPG connections

on the basis of report

submitted by Oil compa-

nies after identifying

names having two or

more gas connections.

Under fire for failing tomeet its production tar-

get, Coal India has

stepped up its supply to

the power sector in the

last six months and met

90% of the 173 million-tonne supply target for

the power sector.

India and Japan havereconfirmed the impor-

tance of civil nuclear

cooperation, on the occa-

sion of the 6th India-

Japan Energy Dialogue.

Kerala State ElectricityRegulatory Authority has

asked industrial consum-

ers to voluntarily observe

austerity in consumptionof electricity, reducing HT

& EHT consumption to

75% of peak and re-

stricted people from us-

ing power for displays &

hoardings, etc.

Headlines Scan

Page 4 of 4

Energy TimesCleaner Energy For a Cleaner World

Path of success always brings

with it difficult situations as

well and the success story of

SELCO has not been different

from this natures phenome-

non. But despite of initial

difficulties today SELCO

employs more than 170 peo-

ple across 28 energy service

centres in Karnataka and

Gujarat and have sold over

1,35,000 solar home

lighting panels.

SELCOs Life

Changing Model:

Busted Myth 1:

The seed came

from a street ven-

dor who once said

to Mr. Harish Hande (MD,

SELCO) Rs. 300 a month is

expensive, but Rs.10 a day is

fine. This inspired Mr.Hande to understand the

problem was more of financ-

ing for poor. Today SELCO

works along with Grameen

Banks, Cooperative Societies,

Commercial Banks & Finan-

cial institutions with innova-

tive loan schemes to suit the

In todays world the basic

needs of human being have

increased to four from ear-

lier count of three namely

Food, Shelter, Cloths and the

fourth being ENERGY.

SELCO Solar Pvt. Ltd. was

established in 1995 with its

headquarters in Bangalore,

Karnataka. They provide

sustainable energy solutions

to under-served people and

businesses. This Social En-

terprise was established to

counter a few myths:Myth 1 : Poor people cannot

afford sustainable technolo-

gies

Myth 2 : Poor people cannot

maintain sustainable tech-

nologies.

Myth 3 : Social ventures can-

not be run as social entities.

poor.

Busted Myth 2: They provide

training to the members of

family/business about how to

maintain the system. Apart

from that two visits in 6

months at each installation

helps to keep the systems

healthy.

Busted Myth 3: SELCO is a

for-profit organisation. They

achieved breakeven in 2001.

For their commitment to-

wards sustainable energy

solutions for poor, SELCO

has been awarded with Ash-

den Awards ( Green Oscars)

for sustainable energy in

2005 & 2007. Mr Harish

Hande has also been

awarded at various levels.

He received the Social Entre-

preneur of the year awardfrom Schwab Foundation.

Even after much accolades

and success SELCO remains

committed to Energy for

Poor.

(Nikhil Bhat , EMP)

SELCO Solar: A Social Energy Enterprise

ergy is turning algae intorenewable, low-carbon

green crude. Sapphire

has already developed

technology to produce

transportation fuels, in-

cluding 91-octane gaso-

line, 89-cetane diesel and

jet fuel. By 2014, the facil-

ity hopes to produce 100

barrels of green crude

per day.

Sapphire hopes its commer-

Worlds first Algae basedgreen crude oil production

developed by Sapphire En-

ergy Inc. is now operational.

When completed, the facility

will produce 1.5 million gal-

lons per year of crude oil

and consist of approximately

300 acres of algae cultivation

ponds and processing facili-

ties.

With only sunlight and car-

bon dioxide, Sapphire En-

cial dem-onstration

project will

m a k e

g r e e n

crude a

viable al-

t e r n a t i v e

fuel.

R e f : S a p p h i r e e n e r g y . c o m

(Shourabh Roy, EMP)

Worlds First Commercial Algae to Energy Green Crude Farm

Algae Farm atNew Mexico, U.S.

energy times vol 3

Documents

Transcript of energy times vol 3