nl energy july 25 - july 31 2015

© Gyan Research and Analytics Pvt. Ltd., 2015 1

Policy News

❑ CERC backlog of nearly 800 petitions

The Central Electricity Regulatory Commission (CERC) has nearly 800 petitions pending, since 2007. Some of the country's top private power companies are already financially stressed with high costs and interest burden of their projects. The other major cause of pending petitions is shown as "awaiting additional information”.

Industry News

❑ Rajasthan government approves INR 1.56 lakh crore of solar projects

The Rajasthan government has cleared solar energy projects worth INR 1.56 lakh crore with the aim of generating 26,000 MW of solar energy. The solar parks will be set up under the Rajasthan Solar Energy Policy 2014, by four companies in the state.

❑ Assam and Meghalaya owe NEEPCO nearly INR 1,000 crore power dues

Assam and Meghalaya together owe the state-‐owned North-‐East Electric Power Corporation (NEEPCO) nearly INR 1,000 crore in outstanding power dues. NEEPCO is to receive INR 536.64 crore from Assam and INR 429.4 crore from Meghalaya against the sale of power. The other north-‐eastern states that have pending power dues with NEEPCO include Tripura (INR 89.74 crore), Manipur (INR 68.14 crore) and Arunachal Pradesh (INR 26.16 crore).

❑ Oil PSUs initiate process to procure biodiesel

Indian Oil Corporation (IOC), Bharat Petroleum Corporation and Hindustan Petroleum Corporation have invited tenders from local manufacturers for the procurement of 850 million litres of biodiesel. IOC is likely to procure about 40 percent of the total quantity, while the balance will be shared between the other two firms. The biodiesel will be delivered at multiple locations from August 2015 to March 2016.

❑ GAIL to install corrosion monitors in pipelines

GAIL India Limited (GAIL) plans to install electronic systems to monitor corrosion, leak and explosion in pipelines. It will install monitoring systems in the entire KG basin pipeline network in Andhra Pradesh. GAIL has floated a tender for the supply, installation, testing and commissioning of internal corrosion monitoring systems using electrical resistance probes and corrosion coupons.

❑ India imported 30 percent less volume under long-‐term Qatar LNG deal

Due to a slide in spot prices and lower demand from local buyers, India has imported 30 percent less liquefied natural gas (LNG) than earlier agreed under a long-‐term deal with Qatar. This year, Petronet LNG has cut imports by 30 percent. The company has a 25-‐year deal with Qatar's RasGas to buy 7.5 million tonnes per annum (mmtpa) of LNG.

Energy NewsJuly 25, 2015 – July 31, 2015

© Gyan Research and Analytics Pvt. Ltd., 2015

❑ NTPC and Jharkhand government sign MoU to scale up Patratu power plant

National Thermal Power Corporation (NTPC) and the Jharkhand government signed a memorandum of understanding (MoU) for the development of the Patratu thermal power station to surge power production. This comes three months after the two sides signed a pact to form a joint venture. As per the earlier agreement signed on May 3, 2015, the capacity expansion would be completed in two phases -‐ 3x800 MW and 2x800 MW. The project is expected to be completed by 2024-‐25.

❑ Petronet LNG aims to rent out 63 percent of Dahej LNG's capacity

Over the next four years, Petronet LNG plans to lease out about two-‐thirds capacity at its Dahej import terminal in Gujarat to boost revenue and prevent the facility falling into negligence. The company, which imports large volumes of LNG from Qatar for Indian companies, is to lease space to other firms as domestic demand for its costly Qatari cargo recedes. Currently, it buys 7.5 mmtpa of LNG from RasGas under a long-‐term deal and has leased 1.25 mmtpa of capacity to Gujarat State Petroleum Corporation.

❑ ONGC to invest USD 8.8 billion in KG oil and gas finds

By 2018-‐19, Oil and Natural Gas Corporation (ONGC) will invest over USD 8.8 billion in bringing to production its KG-‐basin oil and gas discoveries. ONGC has divided 12 oil and gas finds into three clusters in the block KG-‐DWN-‐98/2 or KG-‐D5 and gas discovery in an adjacent G-‐4 block. It plans to complete first gas by mid-‐2018 and first oil by mid-‐2019.

❑ Oil imports from Saudi Arabia falls 8 percent In FY15

India has reduced crude oil imports by over 8 percent from its top supplier Saudi Arabia and has increased purchases from Africa and Latin America. This is in an apparent bid to cut reliance on the volatile Middle East. Crude oil import from Saudi Arabia was lower by 38.18 mmt in 2013-‐14 and 34.99 mmt in 2014-‐15.

❑ Petrol pumps to secure cash and men by installing ATM-‐like machines

Filling stations plan to use the services of cash logistics firms to handle cash worth over INR 1,000 crore that changes hands at petrol pumps every day. ATMs will be installed at fuel outlets so that the collected cash is immediately absorbed by the banks. This will solve the need for a risk-‐fraught transfer of cash from stations to bank branches.

❑ Power sector loans worth INR 4 lakh crore may be at risk

Power sector loans worth INR 4 lakh crore (USD 62.5 billion) are expected to be at risk according to a CRISIL report. Due to lack of long-‐term buyers for electricity, inadequate fuel supply and aggressive bidding to win projects and coal blocks, about a fourth of the existing power projects with 46,000 MW capacity and loans of INR 2,10,000 crore are facing viability issues.

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© Gyan Research and Analytics Pvt. Ltd., 2015

❑ Capacity utilization at thermal plants touches new low of 59 percent In June 2015, India's thermal plants touched a new low of 59 percent in capacity utilization. This level is likely to make it difficult for commercial plants to service their debt. On the other hand, utilities that have power purchase agreements with generators could observe a rise in power cost.

Investment News ❑ JSW Energy subsidiary sells 26 percent stake in South African firm JSW Energy Natural Resources South Africa, a subsidiary of JSW Energy, sold 26 percent stake in South African Coal Mining Holdings (SACMH) to meet regulatory norms. After the sale, its stake in SACMH will fall to 67.25 percent from the current 93.27 percent. SACMH is a listed entity on the Johannesburg Stock Exchange.

❑ Nava Bharat Ventures achieves financial closure for 300 MW coal project Maamba Collieries Limited (MCL), a subsidiary of Nava Bharat Ventures, has announced the financial closure of its 300 MW coal-‐fired thermal power project being set up in Zambia, at an estimated cost of USD 828 million. The project has already achieved 80 percent progress in all facets of its implementation. The power plant is fully integrated with coal mining, dedicated water supply system and exclusive 330 kV power transmission system. The project is being funded on a debt-‐equity ratio of 70:30.

❑ ACME Solar to commission 150 MW solar projects in Odisha and Rajasthan ACME Solar plans to commission solar plants of 150 MW in Rajasthan and Odisha, under the Jawaharlal Nehru National Solar Mission (JNNSM). ACME Solar is a joint venture between ACME Cleantech Solutions and EDF Energies Nouvelles and Luxembourg-‐based natural resources saving group EREN. The 120 MW project (under JNNSM) in Rajasthan’s Thar desert is a combination of five photovoltaic plants with 6,12,000 solar panels. The 30 MW Odisha solar plant, located in the Sikuan area, comprises 1,17,000 photovoltaic panels. The solar plants with a total output of 150 MW are likely to provide energy to more than 90,000 Indian homes.

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Source: Central Electricity Authority

Weekly Snapshot

Region-‐wise Availability above 25 MW (As on July 27, 2015)Regions Thermal (Excluding Gas &

Diesel)Nuclear Hydro

Stabilized Capacity (MW)

Capacity Online (MW)





Northern 34,573 24,980 1,620 1,520 17,870.27 15,579.07

(Percentage of Cap.) 100 72.25 100 93.83 -‐ -‐

Western 62,021 38,037 1,840 1,460 7,392 6,712


Southern 25,332.5 21,192.5 2,320 1,100 11,317.7 9,871


Eastern 29,955 2,1985 -‐ 0 4,193.45 3,556.95

(Percentage of Cap.) 100 73.39 -‐ 0 -‐ -‐

North Eastern 60 0 -‐ 0 1,242 1,212

(Percentage of Cap.) 100 0 -‐ 0 -‐ -‐

All India 1,51,941.5 1,06,194.5 5,780 4,080 42,015.42 36,931.02



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