Company plans to expand the capacity of its Mundra project by 1,500 MW by adding two units

Tata Power may cut dependence on Indonesian coal and explore other geographies to source the fuel for expansion of its 4,000 MW Mundra ultra mega power project in Gujarat.

The company owns stake in KPC mining company in Indonesia which owns and operates coal blocks in the island nation.

"It (import) could be from any market globally because after the HBA price regime was implemented in Indonesia, we get no advantage at all from ownership," Tata Power Managing Director Anil Sardana told PTI.

He said the coal for Mundra project expansion can be sourced from any other country and any other mine because one gets it at the market-determined price.

HBA price of Indonesia is the monthly coal reference rate which is calculated on the monthly average of four international coal indices.

"The expansion was on the assumption that the units will be linked to market phenomenon and we would be using imported coal," Sardana said.

The company plans to expand the capacity of its Mundra project by 1,500 MW by adding two units.

As per the original plan layout prepared by the Central Electricity Authority (CEA) there is space for space for two additional units.

"Since water is there, evacuation is there, every other facility is there and it makes sense for one to generate electricity at a cheaper price," Sardana said, adding that where else can one expect imported coal-based power being generated at less than Rs 3.

On whether the company would go ahead with the proposed expansion of the Mundra despite little clarity on the issue of compensatory tariff, Sardana said, "The compensatory tariff issue is only concerned with UMPP. As far as the two additional units are concerned, they will be at market prices, so therefore the two phases are completely different."

Central Electricity Regulatory Commission earlier this year asked the power procurers to pay Rs 329.45 crore as compensatory tariff for the Mundra plant to partly offset escalation in the price of imported coal.

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India spends crore on power theft clampdown

India is going to great lengths to crack down on rampant electricity theft that has long plagued its power sector, with plans to spend ₹25,354 crore to deploy metering in cities and upgrade its old distribution networks, the Ministry of Power said on Thursday.

The "Integrated Power Development Scheme" will help reduce technical and commercial losses, as well as improve collection efficiency. The earmarked funds from the government will be offset from the total estimated cost of ₹32,612 crore.

Many Indians have come to view cheap, even free, power as a right rather than a privilege. Poor political will to address the thefts, and ageing transmission lines have badly hurt local distribution companies, with as much as 40 per cent of electricity going unpaid for in several states.

Addressing power theft to reduce losses forms part of Prime Minister Narendra Modi's key policy platform to bring uninterrupted power to the entire country. Modi was previously credited with tackling power shortages during his time as chief minister of Gujarat, curbing power theft and repairing the finances of distribution companies hit hard by unpaid bills.

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi, gave its approval to launch the scheme. State discoms and power departments will award the contracts for the execution of projects, which are scheduled to be completed within 24 months from date of award.

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Cyclone-prone Andhra Pradesh to switch over to underground power cabling

Cyclone-prone Andhra Pradesh is likely to become the first state in the country to supply electricity through underground cable system.

The massive changeover from the conventional pole system to underground cabling has been made possible due to a loan of Rs 716 crore granted by the Asian Development Bank, World Bank and Japan Bank.

Under the ambitious plan, a separate power supply line will be laid across 10 coastal districts at an estimated cost of Rs 838 crore.

Of this, the loan provided by ADB, WB and Japan Bank would account for Rs 716 crore at a nominal interest rate.

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India may pass China as biggest coal importer

As coal block deallocation looms, Glencore, the biggest trader of fuel, sees India imports rising to 180 mt in 2015 and then to 300 mt by 2020.

With deallocation ofcoal blocks putting a question mark on India's ability to meet any significant part of country's energy need, the country could soon overtake China as the world's biggest consumer of imported coal, global analysts including Glencore, one of world's largest trader of coal, predict.

Even as India gears up to import more coal as deallocated blocks are to be taken away from the private developers, China is faced with slowdown in energy consumption coupled with tighter regulations reducing import of low-grade polluting grades of coal.

"Amid weaker Chinese steel demand and lower domestic freight costs, we expect China's import needs to decline, eliminating what had been a key source of growth for the market. We expect global seaborne demand growth to slow considerably, with India the main source of incremental demand going forward," Daniel Rohr, analyst with Morningstar said in a report on Monday.

Glencore of US, producer and marketer of a host of commodities and a major force in global coal market, recently made presentation to analysts on coal that said "India has emerged as the dominant growth market".
In its presentation last week, Glencore said India's coal imports are expected to grow from 170 million tonne (mt) to 180 mt in 2015 and then to 300 mt by 2020.

"While that forecast is at the bullish end of market forecasts, few believe India's heavily regulated mining sector will be able to dig up enough coal to satisfy local demand. India could overtake China next year if only standard grades of thermal coal – bituminous and sub bituminous types – are counted," Commodities Note said on Monday.

India is currently the third-biggest thermal coal importer in the world.

If all kinds of grades are included, India would trail China's total imports of 220 mt in 2014, analysts said.

Glencore's figures are based on assumptions that India's coal-fired power capacity would go up from 145 gigawatt installed now to a target of 214 gigawatt by 2020, leading to 345 mt of fresh demand for coal.
The analysts have also noted current low level of stock of coal lying with the power plants indicating higher imports in coming days.

Country's Central Electricity Authority recently said coal stocks at 56 thermal plants have less than 7 days of fuel stock.

Of the 56 stations, 33 had less than four days of stock, CEA noted.

But rise in Indian imports wouldn't be able to compensate likely drop in Chinese imports as a result of which global trade will fall.

Glencore said global coal imports in 2014 would drop to 308 mt from 312 mt in 2013 but would again rise to 317 mt in 2015 And this would adversely impact global prices.

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Energiser for Bihar power

India Power Corporation Ltd (IPCL) is looking to invest Rs 33 crore to beef up its distribution network in Bihar.

In June, the Calcutta-based power company’s wholly owned subsidiary — India Power Corporation (Bodhgaya) Ltd — had entered into an agreement with South Bihar Power Distribution Company Ltd to supply power for 15 years to Gaya, Bodhgaya and Manpur areas of Bihar.

“We have submitted an investment plan of Rs 33 crore to upgrade infrastructure and induct new power distribution technology to the Bihar Electricity Regulatory Commission and are awaiting a formal approval before we implement the capital expenditure programme,” IPCL chairman Hemant Kanoria said.

“Our focus is on the industrial requirement for which the distribution capacity is being scaled up. This will be followed up by certain changes in the network to ensure quality of power supply,” Kanoria said.

According to the company, the investment will help to address issues such as obsolete equipment, overloading and poor reliability.

Kanoria said the management had identified core areas that would require investment to ensure quality service. The company can cater to over 1 lakh customers in Gaya and adjoining areas.

It is too early for IPCL to track any change in power demand or make future projections. However, aggregate power consumption has gone up with the increase in hours of supply after the company took charge of the distribution.

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PFC to appoint consultants for monitoring projects

State-run Power Finance Corporation is looking for consultants for monitoring the ongoing electricity generation and transmission stations and for facilitating the removal of bottlenecks in project completion.

A Power Project Monitoring Panel has been set up through the Power Project Progress Assessment Society to monitor the progress of power projects so as to commission them on time.

There is requirement of Power Project Monitoring Consultants in the area of coal availability and logistics, an official circular said.

The consultants will be appointed on a contract for a period of two years.

“The contract can be terminated on either side without assigning any reason with one month’s notice,” the circular said.

The applicant should not be more than 64 years of age on the date of appointment.

The primary function of the consultants will be to handle issues related to coal supply for power projects under development and in operation including any other facet considered critical.

Consultants will also have the responsibility of facilitating the identification of bottlenecks and suggest remedial measures for the requirement, it said.

For this purpose, the consultant would be needed to interact in his assigned area of function with State governments, ministries of the central government, financing institutions, regulatory agencies and other agencies involved with project implementation.

PFC is engaged in providing funds for various power projects in generation, transmission, and distribution sectors.

Source: www.the Hindu business line.com

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Cameron calls for coal phase out.

UK Prime Minister David Cameron has called for existing coal-fired power plants in the UK to be phased out in the next 10 to 15 years in a tweet following his speech at the UN climate summit in New York. His words come despite concerns in the industry that coal is still needed to play a vital role in energy generation and supply.

Cameron’s tweet, posted by the UK Mission to the United Nations, read: ’We’ve said no to new coal [without] carbon capture and storage and plan to phase out existing coal over next 10-15 years.’
While not stated explicitly in his speech at the climate summit, the UK team at the UN in New York said on the Twitter social media site afterwards that the UK government intends to phase out existing coal stations, with new coal-fired power stations to use carbon capture and storage technology.

This is the first time that a phasing out measure has been announced in the UK, though European Union rules on pollutants from coal-fired power stations state that older coal-fired plants will have to be fitted with clean technology sooner rather than later.

In contrast to the prime minister’s stance, UK energy companies such as EDF Energy have expressed that coal-fired power stations are critical to “bridging the energy gap between now and when the company can deliver new low-carbon generating capacity” and that switching away from coal too quickly could lead to higher carbon generation.

’If the UK were to close all its existing coal stations in the next few years, it is possible that they could be replaced by new gas-fired stations,’ EDF Energy says on its website. ’While the carbon footprint of new gas-fired generating plant would be smaller than the existing coal-fired power stations, they could still be substantial. Early replacement could therefore lock the UK into higher carbon generation for the lifetime of the new fossil-fuelled plants.’

EDF said it believes that the UK should use a “diverse range of fuels” including nuclear, renewable energy sources, and as the government proposes, coal and gas fitted with CCS technology, to ensure the long-term security of electricity supply in the UK.

Interestingly, the Guardian previously reported in August this year that the UK government was requesting that one of Europe’s most polluting coal power stations should stay open, despite its nitrogen oxide emissions exceeding new legal limits by five times.

The Aberthaw power plant in South Wales was said to be in the top 30 highest carbon-emitting plants in Europe by the Climate Action Network and alliance of non-governmental organisations in the “Europe’s Dirty 30” report.

Following Cameron’s announcement on Twitter, green campaigner Greenpeace UK called for both the Conservative and Labour politicians to announce a clear end date for polluting coal plants. 

This article originally appeared on www.cleanenergypipeline.coma clean energy news service operated by VB Research, a sister publication to The Engineer

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