Gyan Research weekly newsletter on #energy sector

1. © Gyan Research and Analytics Pvt. Ltd., 2015 1
Policy News
 Government to replace of old thermal plants
The Union government has asked plants which are 25 years old to shut down. This translates into 11,000
mw of thermal power generation capacities. The government is encouraging the building of bigger plants
with total capacity of 20,000 MW on the same land, at an estimated investment of INR 70,000 crore. The
shutting of at least 100 old units, with capacities between 60 MW and 220 MW, will be replaced by 30-
odd super critical units ranging from 660 MW to 800 MW. This will bring about savings of about INR
40,000 crore on land acquisition and infrastructure cost, such as rail and water linkages and other
facilities of ash pond and power evacuation lines. It is estimated that about 36,000 MW capacity in the
country comes from plants more than 25 years old, which could be replaced in phased manner.
Industry News
 Power plants win subsidy to buy imported gas
After a couple of days of reverse e-auction, 18 power plants have emerged as successful bidders and will
receive INR 1,787.47 crore as subsidy to buy imported gas. This will take the cumulative generation
capacity to 11,717.72 MW and result in an additional electricity generation of 12.47 billion units from
October 1, 2015 to March 31, 2016. About 13 gas-based power plants with 8,262.08 MW installed
capacity and five partly stranded power plants with installed capacity 3,455.64 MW were the successful
bidders. The 13 plants will supply electricity at or below INR 4.70 per unit, while the other five plants will
supply at INR 3.39 per unit to discoms during the period. The 18 successful bidders will be given their
Letter of Award on September 17.
 IOC to scale output to 100 MT
Indian Oil Corporation (IOC) will invest INR 1,75,000 crore to increase its output to 100 million tonne (MT)
from 65 MT at present, over the next seven years. The company had planned a capital expenditure of INR
56,200 crore in the Twelfth Five-Year Plan. It will expand and upgrade its refineries in the next 5-7 years.
The company will also undertake other investments such as INR 15,000 crore on building pipelines, INR
35,000 crore on exploration and production, INR 35,000 crore on marketing, INR 30,000 crore on
petrochemical projects and INR 7,000 crore on gas.
 L&T bags order for Bangladesh power project
Larsen & Toubro (L&T) has bagged an order worth INR 1,700 crore from Japan’s Marubeni Corporation,
to setup the 400 MW Bibiyana III combined cycle power plant for the Bangladesh Power Development
Board. The Board has awarded the entire turnkey contract for the power project to Marubeni, which in
turn awarded the EPC sub-contract to L&T on turnkey basis. L&T's scope of work involves design, detailed
engineering, supply, installation and commissioning of the complete power plant. L&T will procure state-
of-the-art advanced class generator and gas turbine from Mitsubishi Hitachi Power Systems and highly
efficient steam turbine and generator from Fuji Electric company, for the plant. The project is located in
Habiganj District of Sylhet Division in north-eastern Bangladesh and is 130 km road distance away from
Agartala in India.
Energy News
September 12, 2015 – September 18, 2015

2. © Gyan Research and Analytics Pvt. Ltd., 2015 2
Energy News
September 12, 2015 – September 18, 2015
 Sterlite Power Grid Ventures commissions Jabalpur Transmission project
Sterlite Power Grid Ventures, a subsidiary of Sterlite Technologies, has commissioned its Jabalpur
Transmission project set up at an estimated cost of INR 1,500 crore. On September 12, 2015, Sterlite
Grid charged the 379 km-long 765 kV double circuit Dharamjaygarh-Jabalpur transmission line, which is
the longest 765 kV line in India. Earlier in June, it had commissioned the 236 km Jabalpur-Bina
transmission line stretch successfully. Sterlite is the first private developer to successfully complete 765
kV double circuit transmission system. The project will ensure reliability and stability of the grid and will
eliminate bottlenecks in connecting distribution entities and power producers.
 TPCIL commissions Krishnapatnam power project
Thermal Powertech Corporation India (TPCIL), a joint venture between Sembcorp Utilities and Gayatri
Energy Ventures, has successfully started the commercial operations of the 1,320 MW Krishnapatnam
power plant after the completion of its second 660 MW unit. The power generated from the 660 MW
Phase II of the plant is largely sold to existing customers and longer term arrangements are being firmed
up by the company. The first phase of the USD 1.5 billion coal-fired plant generated over 800 million
units up to the end of the June quarter.
Investment News
 PFS sanctions INR 1,000 crore loan for clean energy projects
Leading infrastructure finance company PTC India Financial Services Ltd (PFS) has sanctioned loans of
INR 1,000 crore for clean energy projects in India. The loan, spread over nine projects, aims to increase
the loan portfolio for renewable energy and energy efficiency projects in the country. The move will help
the company to consolidate its position as a leading renewable energy financing institution. PFS also
provides fee based services such as underwriting and loan syndication.
 ABB India bags orders
ABB India, the power and automation technology firm, has won orders worth INR 119 crore to provide
turnkey solutions involving automation, electrification and substation to solar power plants in India. The
project is spread across Tamil Nadu, Karnataka and Andhra Pradesh and will connect over 850 MW
of solar energy to the grid – one of the biggest solar projects, worldwide. Adani Group's 648 MW solar
power plant in Kamuthi, Tamil Nadu is the most significant of these projects.
 Big investments in green energy corridors
The Ministry of New and Renewable Energy (MNRE) expects an investment worth INR 36,000 crore in
green energy corridors in the high density solar-fed states of the country. MNRE has proposed to
develop a new solar or renewable zone policy, which will keep the responsibility and accountability for
land acquisition with the proposed zone’s developers. Approvals for the solar parks have already been
given to 14 states, with four more states showing interest in the programme. Tamil Nadu and Rajasthan
will shortly get INR 1,074 crore for the setup of green energy corridors.

3. © Gyan Research and Analytics Pvt. Ltd., 2015 3
Energy News
September 12, 2015 – September 18, 2015
Source: Central Electricity Authority
Weekly Snapshot
Thermal/ Nuclear Units Went Out of Grid on 15-Sep-2015
Station Unit
No
Capacity
(MW)
Date of Outage Expiry Date of
Return
Remarks
URI-I HPS 4 120 15-Sept-2015 00:00 - Low reservoir level
Singrauli STPS 6 500 15-Sept-2015 18:14 01-Oct-2015 00:00 Water wall tube leakage
DSPM TPS 1 250 15-Sept-2015 19:24 07-Oct-2015 00:00 Water wall tube leakage
Sipat STPS 5 500 15-Sept-2015 00:59 02-Oct-2015 00:00 Hydrogen pressure problem
Sikka Rep. TPS 3 250 15-Sept-2015 11:05 27-Sept-2015 00:00 Reserve shut down/ low
schedule
Wardha Warora
TPP
3 135 15-Sept-2015 23:54 18-Oct-2015 00:00 E.S.P. Repair/ maintenance
Priyadarshni
Jurala HPS
1 39 15-Sept-2015 13:25 16-Sept-2015 00:00 Water non-availability
Dr. N. Tata Rao
TPS
6 210 15-Sept-2015 21:07 05-Oct-2015 00:00
Boiler overhaul/ annual
maintenance
Damodaram
Sanjeevaiah TPS
1 800 15-Sept-2015 21:07 16-Sept-2015 00:00 Main steam line problem
Panniar HPS 1 15 15-Sept-2015 23:38 15-Sept-2015 00:00 Reserve shut down
Panniar HPS 2 15 15-Sept-2015 23:18 15-Sept-2015 00:00 Reserve shut down
Neyveli TPS-II 3 210 15-Sept-2015 00:02 19-Oct-2015 00:00 Miscellaneous planned
maintenance
Neyveli TPS-II
Exp
1 250 15-Sept-2015 11:55 02-Oct-2015 00:00 Water wall tube leakage
Farakka STPS 6 500 15-Sept-2015 23:42 26-Sept-2015 00:00 Ash handling system problem
Total 3,794.00

4. © Gyan Research and Analytics Pvt. Ltd., 2015 4
Energy News, September 12, 2015 – September 18, 2015
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