Energy Iyb

ENERGY

POWER

MoP is responsible for the development of electrical energy in the country. It is concerned witho Perspective planning, policy formulation, processing of projects for investment

decisions, monitoring of the implementation of power projects, training and manpower development and the administration and enactment of legislation with regard to thermal and hydro generation, transmission and distribution

o In all technical matter, MoP is assisted by the Central Electricity Authority (CEA) The National Electricity Policy (NEP) had stipulated power for all and annual per captia consumption

of electricity upto 1000 units by 2012. Electricity in Concurrent list.

ULTRA MEGA POWER PROJECTS

Coal based UMPP with each capacity of 4000 MW. Objective is to ensure cheaper tariffs utilizing economies of scale, catering to the need of a number

of States and to mitigate the risk relating to tie up of land fuel, water and other statutory clearance etc.

Projects given on basis on competitive bidding route employing super critical technology. To tie-up for necessary inputs and clearances such as provisions of site, fuel through captive mining

blocks, water and in-principle environment and forest clearances, project-specific shell companies (SPVs) are set up as wholly owned subsidiaries of the Power Finance Corporation Ltd. (PFC)- nodal agency for these projects.

4 UMPPs –o Sasan in MPo Mundra in Gujarato Krishnapatnam in APo Tilaiya in Jharkhand

Bidding Stages- Bedabahal in Sundergarh District, Orissa; Cheyyur in Kanchipuram district, TN; District Sarguja, Chattisgarh

BY- KAUSHAL KISHORE SHARMA

DEVELOPMENT OF NATIONAL GRID

Creation of high capacity “Transmission Highways” so that constraints in Right-of-Way (RoW) do not become bottleneck in harnessing natural resources.

Power Grid is strengthening its transmission network to establish inter-stae and inter-regional links for enhancing the capacity of National Grid in a time bound manner to ensure optimal utilization of uneven distribution of energy resources.

RURAL ELECTRIFICATION (RE)

RE under Minimum Needs Programme (MNP)o Started in 5th FYP with RE as one of the components.o Funds were provided to states in form of partly grants and partly loans.o Areas were remote, far flung and difficult villages with low load potential.o Now discontinued and replace by RGGVY.

Pradhan Mantri Gramodaya Yojana (PMGY)o Implemented by State Electricity Boards/ Electricity Developments/ Power/ Utilities as

implementing agencies.o Discontinued

Kutir Jyoti Schemeo Provide single point connections to households of rural families below the poverty line

including harijans and adivasi families.o Allocation based on rural population below the poverty line and level of village

electrification in the state, with higher weightage given to states having larger population of rural poor and low electrification levels.

o Merged with RGGVY Accelerated Rural Electrification Programme (AREP)

o Interest subsidy of 4% was to be provided on loans availed by State Govt./Power Utilities from Financial Institutions for carrying out rural electrification programme.

o It was limited to electrification of un-electrified villages, electrification of hamlets/dalit bastis/ tribal village and electrification of households in villages through conventional and non-conventional sources of energy

Accelerated Electrification of One Lakh villages and One Crore householdso AREP and Kutir was merged to form thiso Provision for providing 40% capital subsidy for rural electrification projects and the

balance as loan assistance on soft terms from REC (Rural Electrification Corporation).o Merged with RGGVY

Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)o Achieving National Common Minimum Programme objective of providing access to

electricity to all rural households over a period of four years. REC is the nodal agency.o Capital subsidy will be provided for rural electrification infra. By-

Creation of Rural Electricity Distribution Backbone (REDB)


Creation of Village Electricity Infrastructure (VEI) Decentralized Distribution Generation (DDG) and Supply System from

conventional sources for Villages/Habitations where grids supply not effective and MoNon-Conventional would provide electricity.

All states except Delhi and Goa have signed RGGVY.

Major Policies Initiatives to Streamline the Process of Project Development

Policies which have boosted private sector players are-o National Electricity Policy; UMPPo Mega Power Project Policy; Mega Power Policyo New Hydro Policy 2008

Automatic approval for FDI

Automatic approval for 100% foreign equity is permitted in generation, transmission and distribution and trading in power sector without any upper ceiling on the quantum of investment.

Revised FDI cap for Power exchanges registered under CERC Regulations, 2010 as 40 through Automatic route.

Central Electricity Authority (CEA)

Statutory organization constituted under Section 70 of the Electricity Act 2003.

PUBLIC SECTOR UNDERTAKING

NTPC Limitedo Maharatna company, Largest power generator in India with comprehensive in-house

capabilities in building and operating power projects.o Core values are business ethics, economical and environment sustainable, customer

focus, mutual respect and trust within org. , motivating self and innovation , total quality excellence, transparent and respected organization.

NHPC Limitedo Schedule A- Miniratna; Largest org. for hydro power developmento Main objects include to plan, promote and organize as integrated and efficient

development of power via conventional and non-conventional sources in India and abroad plus transmission, distribution, trading and sale of power generated at stations.

Power Grid Corporationo Notified Central Transmission Utility, 1998; Navratna since 2008o Responsible for establishment of Regional & National Power Grids and operates through

POSOCO, fully owned subsidiary of POWERGRID to facilate power within and across the regions with realiablity, security and economy.


Power Finance Corporationo Enhance funding to power projects in India with objective to provide financial resources

and encourage flow of investments to the power and associated sectors.o It is Power Sector Public Financial Institution and NBFC providing funds and non-fund

based support for the development of Indian Power Sector; Navratna CPSE; Rural Electrification Corporation

o Financing rural electrification schemes in the country; Navratnao Include financing of all power projects including Generation, Transmission and

Distribution without any restriction.o Public Financial Institution and NBFC and RBI categorized as Infra. Finance Compy (IFC)

Satluj Vidyut Nigam Ltd.o Joint Venture with GoI and GoHP to plan, investigate, organize, execute, operate and

maintain Hydro Electric Power Projects in Satluj Basin.o Schedule A Miniratna Category-I PSU under the administrative control of MoP.

Bhakra Management Boardo Section 79 of the Punjab Re-Organisation Act 1966 for the administration, maintenance

and operation of Bhakra Nangal Project.o It is responsible for the administration, operation and maintenance of Bhakra Nangal

Project, Beas Satluj Link Project and Pong Dam including Power Houses and a network of transmission lines and grid substations.

Beas Management Boardo Involved in Administration, Operation & Maintenance of Bhakra-Beas Projects.o Supply of water to Punjab, Haryana and Rajasthan.

National Power Training Instituteo Registered society under MoPo To development of human resources in the power sector for 4 decades.o A Geographical Information System (GIS) Resources Centre for Training and consultancy

in the areas of GIS based electricity distribution network planning and management has been set up at NPTI

Central Power Research Instituteo Registered under Societies Registration Act under MoP, serves as a national laboratory

to carry out applied research in electrical power engineering.o Function as an independent national testing and certification authority for electrical

equipment for ensuring their reliability. North Eastern Electric Power Corporation Ltd.

o Wholly owned Govt. Enterprises under MoP to plan, promote, investigate, survey, design, construct, generate, operate and maintain power stations in the north-eastern region.


CRUDE OIL AND NATURAL GAS PRODUCTION

Major crude oil production is from ageing field except new fields viz. Rajasthan and KG deep water blocks.

Production of crude oil was affected due to environmental factors and bandhs in Assam, delay in production from wells in AnPr, and lesser production from development/side-track wells in Mumbai, poor influx, underperformance of producing wells and less base potential of major fields that affected production of Ahmedabad and Ankleshwar

Lower in Natural Gas dur to less production from KG basins and bandhs and underperformance of new wells development.

Energy Security

As rise of demand with development and growth, demand management and increasing production and transportation efficiency are two important measures to increase energy security.

Domestic resources must be expanded, instead of choosing, try to explore all available domestic energy resources to the maximum as long as they are competitive. The most critical elements of our energy security

Remain the measures to increase efficiency, reduce requirements and augment the domestic energy resource base.

Non-Conventional Energy

Ethanol Blended Petrol (2003)o Except J&K, NE states, A&NI and Lakshadweep it is done.o 5% percent mandatory ethanol blending with Petrol is to be implemented across the

countryo Procurement of ethanol pre-decided by Oil Marketing Companies (OMCs) and Suppliers

of Ethanol. Bio-diesel Purchase Policy (2006)

o MoP&NG launchedo OMCs would purchase bio-diesel, meeting the prescribed BIS standard, at a uniform

price as may be decided by OMCs from time to time, for blending with High Speed Diesel (HSD) to the extent of 5% at identified 20 purchase centres across the country.

Oil and Natural Gas Corporation Limited (ONGC)

Maharatna Company Engaged in exploration and production of crude oil, natural gas and valu added products was

incorporated

ONGC Videsh Limited


Engaged in exploration and production of oil and gas outside India. OVL oil and gas production from 10 projects in 8 countries

o Russia (Sakhalin-1 and Imperial Energy)o Syria (Al-Furat Petroleum Co.)o Vietnam (Block 06.1)o Columbia (MECL)o Sudan (Greater Nile Petroleum Operating Company)o South Sudan (Greater Pioneer Operating Company and Sudd Petroleum Operating

Company)o Venezuela (San Cristobal)o Brazil (BC-10)

Oil India Limited (OIL)

Govt of India enterprise, engaged in business of exploration, production and transportation of crude oil and natural gas; Navratna company

OIL own and operate a trunk crude oil pipeline in north east region of the country for transportation of crude oil to feed Numaligarh, Guwahati and Bongaigon refineries. It owns and operates a branch line to feed Digboi refinery.

Gas Authority of India (GAIL)

Maharatna company Natural Gas value chain with global footprints. Setup LNG import infra. And will be focusing on area like city gas distribution, petrochemicals

business, diversifying into high margin business.

Implementation of BS-III/IV Fuels

Upgrading quality of auto fuels to Bharat Stage (BS) IV/III grades A BS-IV fuel is based on pollution level and vehicular pollution in the city (1 cr population +)

Pricing of Petroleum Products

In June 2006, based on recommendations of the Rangrajan Committee, the Govt. changed the pricing mechanism for petrol and diesel from import parity to trade parity (trade parity being the weighted avg. of import and export parity prices in the ratio of 80:20) while pricing of PDS kerosene and domestic LPG continues on import parity basis

Govt. took a decision “in-principle” on June 25,2010 to make the price of diesel market determined , both at refinery gate and at retail level. RSP of diesel is blow the required market price, resulting in incurrence of under-recovery to the OMCs.

Indian Oil Corporation Limited


Flagship National oil company with business interest encompassing the entire hydrocarbon value chain- from refining, pipeline transportation and marketing of petroleum products to exploration and production of crude oil and gas, marketing of natural gas, petrochemicals , renewable energy and now into nuclear energy.

Hindustan Petroleum Corporation Limited

Mega PSU with Navratna status. 2 refineries in Mumbai and Visakhapatnam, producing petroleum products-fuel, lubricants and

specialty products. HPCL owns and operate the largest Lube Refinery in the country producing Lube Base Oils

Bharat Petroleum Corporation Limited

Engaged in refining of crude oil and marketing of petroleum products. It has also diversified into production and marketing of petrochemical feedstock.

Refinaries in Mumbai and Kochi certified under Integrated Management System (IMS) which aims for unified approach in processes, interfaces, structures and documentation system by combining he individual management systems under ISO 9001, ISO 14001 and OHSAS 18001 reflecting commitment towards quality, environment, health and safety.

Coal

MoCoal has overall responsibility of determining policies and strategies in respect og exploration and development of coal and lignite reserves, sanctioning of important projects of high value and for deciding all related issues.

Coal reserves mainly located in Jharkhand, Odisha, Chhattisgarh, WB, MP, AP and Maharastra. Major deposit of lignite is in TN, other states are Rajasthan, Gujarat, Kerala, J&K and Puducherry Coal India limited has 8 subsidiaries; CIL has foreign subsidiary in Mozambique naming CI Africana

Limitada Neyveli Lignite Corporation Limited (NLC), a Navratna operated 4 open cast lignite mines.

Power from Renewables

5th in world with wind power installed capacity of 21. The Ministry has taken up a new inititative for implementation of wind resources assessment in uncovered/ new areas with an aim to assess the realistic potential at 100m level in 500 new stations across the country under the National Clean Energy Fund (NCEF).

Prospects of offshore wind energy along coastline of AP, Goa, Gujarat, Kerala, Karnataka, Maharashtra and TN. It is being the fastest growing programme with the investment almost by the private sector.

Biomass power projects included bagasse cogenerations with an aggregate surplus power generation capacity of about 412.5 MW have been successfully commissioned.

Solar power projects using solar photovoltaic and solar thermal technologies.


The NAPCC mandates increasing share of renewable power in the electricity mix to 15% by 2020.

Policy and Regulatory Framework

Electricity Act 2003, recognize the role of renewable energy technologies for supplying power to utility grid as well as stand-alone systems.

The Act empowers SERCs to specify a percentage of total consumption of electricity from renewable energy sources, known as “Renewable Purchase Obligation (RPO)”.

Preferential tariff for grid interactive renewable power is being given in most potential states. In addition, Renewable Energy Certificates (RECs) seek to address the mismatch between availability of renewable sources and requirement of the obligated entities to meet their RPO.

Incentives

For promoting private investment, govt is providing capital/interest subsidy, accreted depreciation and nil/concessional excise and customs duties.

Encouraging foreign investors to setup renewable power projects on a “Build-Own and operate” basis with 100 % FDI.

Jawaharlal Nehru National Solar Mission (JNNSM)

Mission aims to install 20GW grid-connected and 2 GW off-grid solar power, 20 million sqm of solar thermal collector areas 20 million rural households to have solar home lighting by year. To be done in 3 phases , 2013, 2017 and 2022 Reverse bidding process adopted under the mission has led to a significant reduction n solar power

tariff within one and half year of its implementation.

Heat Energy- Cooking Purpose

Family size biogas plants and improved cook-stoves are both used at level of individual households or the community.

Leading to reduction in drudgery among the rural women and girls engaged in collection of fuel wood and reduction in the rate of deforestation and getting many health benefits apart from providing organic fertilizer.

In cook-stoves, the biggest problem relates to inefficient combustion of biomass and the inability of large number of people to spend money on processed fuels for improved cook-stoves because traditionally available biomass is generally free of cost.

Under the National Biomass Cookstoves initiative, a pilot scale project for deployment for 5500 biomass community cookstoves in Anganwadis, Mid-day meal scheme, Tribal hostel etc. and demonstration for 15000 of family portable cookstoves has been taken up.


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