The Nuclear Power Corporation Of India Limited

Mar 4, 2018
Source Power Weekly Newsletter
Central Sector

The Nuclear Power Corporation of India Limited (NPCIL) has sought an extension of five years from the Supreme Court to set up an ’away from reactor’ (AFR) facility in order to store the spent nuclear fuel from the operations of units-1 and 2 of the 2,000 MW Kudankulam Nuclear Power Plant in Tamil Nadu. The court, in its judgement in May 2013, had given NPCIL five years to complete the project with the deadline of May 2018. However, NPCIL has now approached the court seeking an extension for setting up the AFR facility on account of lack of experience with long-term storage requirements of high burn-up Russian-type pressurised water reactor fuel.

The central government and the union territory of Lakshadweep have signed a memorandum of understanding (MoU) under the Ujwal DISCOM Assurance Yojana (UDAY) for the operational turnaround of the union territory’s Electricity Department (ED). An overall net benefit of about Rs 80 million would accrue to Lakshadweep ED by participating in UDAY, by way of cheaper funds, reduction in aggregate technical and commercial losses, and interventions in energy efficiency, among others

NLC India Limited‘s proposed 3,200 MW coal-based power plant in Odisha is facing issues with the state government over power allocation. The state government has demanded an allocation of 14 per cent power at variable cost, however, NLC India has contested it stating that the condition does not apply to a central public sector undertaking. The company has committed an investment of Rs 118.75 billion for the plant which is planned to come up at Tareikela near Jharsuguda, in the vicinity of the company’s Talabira-I and Talabira-II captive coal blocks. Apart from the plant, the company has committed an investment of Rs 22.5 billion across solar projects aggregating 300 MW in the state.

Solar Energy Corporation of India (SECI) has invited bids for setting up 3 GW inter-state transmission system (ISTS) connected solar power projects to be installed across different locations in the country. The solar photovoltaic (PV) projects will be implemented on a build own operate (BOO) basis. The successful bidders would enter into a power purchase agreement (PPA) with SECI for a 25 year-term, at a fixed tariff of Rs 2.93kWh. The successful bidders would be chosen through an e-bidding process followed by an e-reverse auction process. The last date for the submission of bids is April 27, 2018.

Energy Efficiency Services Limited (EESL) will invest Rs 244.1 million for installing energy efficient LED lights at the airports, buildings and facilities operated by the Airports Authority of India (AAI), as part of the Buildings Energy Efficiency Programme. EESL will manage the entire project from the procurement of the lights, to their maintenance post installation. As per the MoU signed between EESL and AAI, the programme would be implemented under the energy savings companies (ESCO) model.

State Sector

Gujarat Urja Vikas Nigam Limited (GUVNL) has launched a request for selection (RfS) for the installation of 500 MW of grid-connected wind capacity and related transmission infrastructure across the state. Both domestic and foreign players can participate in the auction under the condition that the foreign players would have to constitute a special purpose vehicle (SPV) for implementing the project.An additional 500 MW capacity may be offered to the participants who are willing to sign PPAs with GUVNL at the lowest quoted tariff. The deadline for submitting the RfS proposals is April 2, 2018.

The Karnataka government has dedicated the 1,600 MW Yermarus Thermal Power Station (YTPS) to the state. The coal-based plant is based on the supercritical technology and is owned by Raichur Power Corporation Limited, which is a joint venture of Karnataka Power Corporation Limited (KPCL), Bharat Heavy Electricals Limited (BHEL) and Industrial Finance Corporation of India.

The 2,000 MW Shakti Sthala Solar Park has been inaugurated at Pavagada in Tumkur, Karnataka.The solar park generated 600 MW power as of January 2018 while an additional 1,400 MW is expected to be generated by December 2018. The solar park, spread across an area of 13,000 acres, entails an investment of Rs 16.5 billion. The park has been developed by Karnataka Solar Power Development Corporation Limited, a joint venture of Karnataka Renewable Energy Development Limited and SECI.

EESL plans to invest over Rs 37.30 million across the e-mobility, energy efficiency, smart metering and solar rooftop segments in Andhra Pradesh. The MoUs in this context were inked at the CII Partnership Summit held in the state. As per the agreements, EESL will provide 10,000 electric vehicles and 4,000 e-car chargers in association with New and Renewable Energy Development Corporation of Andhra Pradesh Limited. In addition, the MoUs cover supply of 1.7 million smart meters to the Southern Power Distribution Company of Andhra Pradesh Limited and Eastern Power Distribution Company of Andhra Pradesh Limited. Further, EESL will support the installation small solar rooftop projects aggregating 450 MW in the state in a phased manner.

The Andhra Pradesh government, in association with AutoGrid Systems Inc. has announced an initiative to adopt smart grid and internet of things (IoT) based solutions for improving the health of utilities and enhancing customer experience. The programme involves demand-side management (DSM) programmes including agricultural pump sets and industrial units. The DSM solutions are expected to yiled benefits of over Rs 10 billion per year.

Telangana has become the first state in India to surpass the mark of 3 GW solar power installation.In 2017, the state, along with Karnataka, accounted for all solar power addition in the country. In a separate development, the state crossed the mark of 10,000 MW peak power demand for the first time on February 26 and February 27, 2018. The increase in demand has been attributed to the uninterrupted power supply to the agricultural sector that was started in January 2018.

Private Sector

The central government has allowed Reliance Power Limited to produce 18 million tonnes per annum (MTPA) of coal from its Moher and Moher-Amlohri captive coal blocks in 2017-18, in excess of the cap of 17 MTPA. The company was given the permission to produce an additional 1 MTPA for the financial year to run its 3,960 MW Sasan Ultra Mega Power Project (UMPP) in Madhya Pradesh. Reliance Power had stated that the cap was not enough to carry out operations until the end of the financial year and an additional 2 MTPA production was required to prevent a shutdown. The Sasan UMPP comprises six units of 660 MW each.

ReNew Power Ventures Private Limited has signed an MoU with the Andhra Pradesh government for developing 1,000 MW solar power capacity and 1,000 MW wind power capacity in the state, over the next five years. The agreement was signed at the CII Partnership Summit held in Andhra Pradesh. As per the agreement, ReNew Power will invest Rs 130 billion in the proposed projects

Avaada Power Private Limited is planning to invest Rs 250 billion in the renewable energy segment for developing capacity aggregating 5,000 MW across solar, wind, engineering, procurement and construction (EPC) and rooftop segments. The company is targeting an operational capacity of 1,000 MW before December 2018 and subsequently plans to add 1,000-1,500 MW capacity each year. In a separate development, the company inked an agreement with the Andhra Pradesh government for developing 500 MW solar projects in the state with an investment of Rs 35 billion.

Debt and Equity

Power Finance Corporation (PFC) has signed MoUs with Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited (UPRVNL), Uttar Pradesh Power Transmission Corporation Limited (UPPTCL) and Uttar Pradesh Power Corporation Limited (UPPCL) for providing financial assistance aggregating Rs50.2 billion to the entities over the next four years. The financial assistance has been provided forupcoming greenfield projects, development of coal mines, strengthening the distribution and transmission infrastructure network in the state, and the extension of thermal generation projects at Jawaharpur, Panki,Harduaganj, Anpara, and Obra among others.

Reliance Power has sought the approval of its shareholders to raise up to Rs 20 billion by issuing securities or shares through qualified institutional placement. The funds raised would be utilised for reducing the debt burden of the company and its subsidiaries.