The Ministry Of Power Has Proposed To Change The Mandatory Default Setting For Air Conditioners

Jun 25, 2018
Source Power Weekly Newsletter

The Ministry of Power has proposed to change the mandatory default setting for air conditioners (AC) to 24 degree Celsius, from the current minimum setting of 18 degree Celsius. The ministry has asked AC manufacturers to regulate default settings of the units in order to promote power efficiency in the area of air conditioning. The proposed move is following a study carried out by the Bureau of Energy Efficiency (BEE) as per which a 1 degree Celsius increase in AC temperature can save about 6 per cent of electricity. The BEE has issued an advisory to consumers of commercial buildings to maintain the internal temperature range of 24-25 degree Celsius. These guidelines are currently applicable to large commercial premises such as airports, hotels, government buildings, shopping malls, offices, etc.

power from power plants that lack power purchase agreements (PPAs). Bids were received for 2,200 MW of power against 2,500 MW offered by the government. Sembcorp Energy India Limited (SEIL), Jaiprakash Associates Limited (JAL), IL&FS Engineering and Construction Company Limited, and RKM Powergen Private Limited are among the eight companies which have submitted the bids. However, projects of some companies, including GMR Energy Limited, Coastal Energen Private Limited, and Lanco Infratech Limited, which do not have assured coal supplies or are pending in insolvency court, could not participate in the bidding process.

The MoP has sought key changes in Reserve Bank of India’s (RBI’s) revised norms for identification and resolution of bad loans in the power sector. It has been suggested that stressed projects should not be categorised as stressed in a period of 90 days. Another change that has been recommended is the extension of deadline of 180 days for resolution of a bad loan to 270 days. In addition, MoP plans to write to the state distribution utilities asking them to clear about Rs 140 billion worth of dues to generation companies.

NTPC Limited has invited bids for development of a 22 MW grid-connected floating solar project in Kerala. The tender is for design, engineering, manufacturing, supply, packing and forwarding, transportation, unloading, storage, installation and commissioning of the project. The successful bidder will also be responsible for providing operation and maintenance services for the project for a period of three years. The due date for bid submission is August 21, 2018.

The 3 GW inter-state transmission system (ISTS)-connected solar photovoltaic (PV) tender floated by Solar Energy Corporation of India (SECI) has been oversubscribed by 2.1 GW. The agency has received bids from 13 bidders for the tender. SBG Cleantech submitted the bid to develop the maximum capacity of 1,800 MW. Meanwhile, Acme Solar Holding Limited and ReNew Power Ventures Private Limited submitted bids to develop 600 MW and 500 MW respectively. The financial bids for the tender are yet to be opened.

State Sector

The Haryana government has approved the installation of 1 million smart meters in five districts of the state, including Panipat, Karnal, Panchkula, Faridabad and Gurugram. For the installation, a memorandum of understanding will be signed between Energy Efficiency Services Limited and Haryana power distribution utilities. Installation of the smart meters along with the associated general packet radio service (GPRS) system will enable the discoms to collect real-time data on usage and help address the challenges relating to payment of electricity bills.

NHPC Limited has signed a power purchase agreement (PPA) with Uttar Pradesh Power Corporation Limited (UPPCL) for a period of 35 years. Under the agreement, NHPC will supply electricity from its 330 MW Kishanganga hydroelectric project, which was fully commissioned in April 2018.

The Arunachal Pradesh government has inaugurated the 6 MW Shaikangchu small hydro power project at Gongkhar village in Arunachal Pradesh. The plant marks the biggest project undertaken by Department of Hydropower in the state and will supply electricity to 27 villages around Mukto circle. The surplus power generated from the plant will be supplied to Tawang headquarters.

Maharashtra Electricity Regulatory Commission has approved the 100 per cent sale stake of Reliance Infrastructure Limited’s (RInfra’s) integrated Mumbai power business to Adani Transmission Limited. The total consideration of the deal is estimated at Rs 188 billion and the proceeds from the transaction will be utilised by RInfra to reduce its debt. With the commission’s approval, the transaction is expected to be closed in July 2018.

Maharashtra Electricity Regulatory Commission has approved the 100 per cent sale stake of Reliance Infrastructure Limited’s (RInfra’s) integrated Mumbai power business to Adani Transmission Limited. The total consideration of the deal is estimated at Rs 188 billion and the proceeds from the transaction will be utilised by RInfra to reduce its debt. With the commission’s approval, the transaction is expected to be closed in July 2018.

Private Sector

General Electric (GE) has signed an agreement with French utility EDF Energy for constructing six evolutionary power reactors (EPRs) at the on-going 9,900 MW Jaitapur nuclear power plant in Maharashtra. The power plant is being developed by Nuclear Power Corporation of India Limited (NPCIL) and would be the largest nuclear plant unit globally upon its completion. Under the agreement, GE Power will design the conventional island for the nuclear power plant and will be responsible for supplying its main components. The company will also provide operational support services and a training programme as per the requirements of NPCIL. Meanwhile, EDF will be responsible for engineering integration for the entire project and will also provide all the requisite input data.

Bharat Heavy Electricals Limited (BHEL) has signed a technology collaboration agreement (TCA) with Korea-based Nano Company Limited, to design and manufacture solutions to comply with new emission norms issued by the Ministry of Environment, Forest and Climate Change (MoEFCC) for thermal power plants. The solution, selective catalytic reduction (SCR) equipment, will be commissioned or retrofitted with emission control equipment for De-NOx application in coal-based power plants.

BSES Yamuna Power Limited (BYPL) has signed a memorandum of understanding with Business Finland, a Finnish government agency for collaborative activities in areas such as energy efficiency, energy storage, smart grid initiatives and electric vehicles, etc. The three-year agreement entails joint studies, pilot projects, knowledge-sharing, and consultancy research projects for inducting future and emerging technologies at the distribution utility level.

Projects and Ventures

Kalpataru Power Transmission Limited (KPTL) has secured orders aggregating Rs 3.46 billion for construction of transmission line and substations in India and Tajikistan. In addition, Rail Vikas Nigam Limited has awarded a Rs 1.85 billion order to KPTL, as part of a consortium, for design, supply, erection, testing and commissioning for railway electrification.

Siemens Gamesa Renewable Energy (SGRE) has secured an order from ReNew Power Ventures Private Limited for setting up a 150 MW wind farm in Kutch district, Gujarat. The order entails supply, erection, and commissioning of 75 units of wind turbines for the farm. Additionally, SGRE will be responsible for the infrastructure required to install the equipment and operate the wind farm.

Debt and Equity

Power Finance Corporation Limited (PFC) has extended additional financial assistance of Rs 26.26 billion to Rajasthan Rajya Vidyut Utpadan Nigam Limited to support the utility’s effort to comply with the new emission norms issued by MoEFCC. The financial assistance will be utilised for the installation of flue gas desulphurisation and SCR equipment as part of environmental upgradation works underway at the Suratgarh and Chabbra super thermal power projects, having a capacity of 1,320 MW each. With this assistance, the cumulative sanction of PFC for the projects stands at Rs 102.18 billion.

Canada Pension Plan Investment Board (CPPIB) is reportedly planning to invest around $300 million for the acquisition of minority stake in Mytrah Energy Limited. The proposed investment is pursuant to Mytrah Energy’s strategic decision to bring in a long-term investor. Further, the proposed fund will be used for expansion for Mytrah Energy’s renewable energy portfolio.

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