asiaelec week 19

Issue 307 12May2015 Week 19

Indias coal reform efforts Coal India is to build its own power plants, but Indias power and coal sectors

need more fundamental reform

Solar comes of age in Japan The solar market has reached maturity in Japan, with 25,000 MW of capacity

and lower subsidies. Yet grid connections must be improved to maintain investment levels

Environmental risks Standard Chartered has abandoned Adani Groups Carmichael coal project in

Australia because of environmental risks

Uranium deal Australia could agree to export uranium to India as New Delhi becomes an

accepted member of the global nuclear fuel market

COMMENTARY 3

Indias coal reform efforts 3

Solar comes of age in Japan 4

THERMAL 5

Thailands Global Power Synergy

targets growth abroad 5

NTPC to build 4,000-MW TPP

in Jharkhand 6

Hitachi unit to establish power plant

service JV in Thailand 7

Black & Veatch selected for Vietnam

power plant expansion 7

COAL 8

Standard Chartered walks away from

Adanis Carmichael project 8

China cuts coal investment 8

NUCLEAR 9

Australia to sell uranium to India 9

Japans ageing Mihama NPP moves

closer to restart 9

RENEWABLES 10

Philippines bids on 21 geothermal,

hydro sites 10

NEWS IN BRIEF 10

AsiaElec 12 May 2015, Week 19 page 3

Have a question or comment? Contact the editor Richard Lockhart ([email protected]) Copyright 2015 NewsBase Ltd.

All rights reserved. No part of this publication may be reproduced, redistributed, or otherwise copied without the written permission of the authors. This includes internal distribution. All

reasonable endeavours have been used to ensure the accuracy of the information contained in this publication. However, no warranty is given to the accuracy of its contents

Advanced plans by Indias lumbering

state-owned giant Coal India Ltd (CIL)

to venture into power generation are

another sign that Prime Minister

Narendra Modis government is intent on

shaking up the countrys power sector.

In a roundabout way it might also be

good news for the US, where one

economist thinks Indias growing hunger

for energy could save the US coal

industry.

CIL is planning to develop its first

thermal power plant (TPP), a 1,600-MW

coal-fired, mine-mouth project, in the

eastern Mahanadi Basin.

The plant is CILs move into

generation, although it has plans to

develop more pithead power plants in the

future.

CILs prospects

CIL has been talking about moving into

power generation for some years, with a

focus on TPPs adjacent to its coal mines

that poor transport links to power plants

elsewhere.

But Indias bureaucratic hurdles,

notably bad at state-controlled CIL, have

delayed affirmative action, until now.

Impetus for developing the first CIL

plant is coming from the Delhi municipal

government, which wants to invest in the

project in return for guaranteed

electricity supply to meet rising power

demand in the capital.

CIL first proposed building mine-

mouth power plants in 2008 as a cost-

effective way of exploiting underused

coal reserves.

CILs big problem is that it continues

to fail to meet coal production targets to

aid Indias overall power generating

expansion. It is because of this that India

is forecast by various analyses to

overtake China within the next two years

as the worlds biggest coal importer.

Coal fuels more than 60% of Indias

260,000 MW of generating capacity.

Indian reformers blame a continuing

culture of bureaucracy and over-

regulation for holding back the countrys

coal production and electricity generating

growth.

Analyst and commentator Sunjoy Joshi

said this week that the countrys coal and

power sectors had a long way to go to

achieve real market reform despite recent

efforts by the Modi government.

Bureaucracy continues to proliferate,

Joshi, the director at the New Delhi

think-tank Observer Research

Foundation, wrote in the Times of India

on May 12.

US chance

Ironically, this might be good news for a

US coal industry which is nose-diving,

one US economist thinks.

With grievous losses posted by such

major stock exchange corporations as

Peabody and Arch Coal, it would seem

that Americas super-abundant coal

reserves are headed for extinction,

syndicated business newspaper columnist

Morris Beschloss wrote last week.

China, previously the largest and

most voluminous importer of American

coal, has markedly slowed down imports

in general. But, just in time, Indias rapid

growth is coming to the rescue. As the

worlds second largest coal consumer,

India is taking full advantage of the

slump in world coal prices, Beschloss

said.

US coal stocks are at high levels as

local industry turns to shale gas and the

world market is well supplied, Platts

said.

Even though Indias coal reserves in

the ground are among the largest in the

world, state-owned Coal India Ltd has

failed to keep pace with demand growth,

which has increased the need for

imports, Beschloss noted.

However, US coal companies would

have to pitch their prices pretty low to

compete successfully with Indias

imports from South Africa, Indonesia

and even Australia.

There is always the possibility that

Chinas coal sector might start flooding

the regional market with coal as a means

of getting out of the financial mess they

are in.

The magnitude of the US coal export

problem is illustrated by Indonesias

free-on-board (FOB) export price for this

month slumping to a record low of

US$61.08 per tonne, Indonesias

Ministry of Energy and Mineral

Resources disclosed on May 11. That

price is over 5% lower than for April and

17% down on the May 2014 price.

COMMENTARY

Indias coal reform efforts CIL has heralded plans to build its own power plants, but more fundamental reform of the

coal and power sectors is required if India is to be able to meet demand

By Graham Lees

CIL aims to build its first TPP, a 1,600-MW coal-fired, mine-mouth project in the eastern Mahanadi Basin Indias coal shortages could offer and export opportunities for a US coal industry facing a coal surplus India needs to move from a command and control coal sector to a more liberalised market

Coal India Ltd has failed

to keep pace with demand

growth, which has

increased the need for

imports





CIL failed to reach a government-set

target of 507 million tonnes of

production for the financial year ending

March 31 because of what it termed

operational delays.

CILs managing director, Sutirtha

Bhattacharya, blamed state government

administrative problems, euphemism for

transport bottlenecks, contract problems

and difficulties in securing

environmental clearances for new mining

projects.

Reform challenge

It is these sorts of problems that look

likely to continue to hamper not only CIL

but also Prime Minister Modis overall

promise to streamline the energy sector

and bring grid electricity to the hundreds

of millions of Indians at present beyond

its reach.

Joshi, a former senior energy civil

servant, said true reform vision would

need hard work to institute long-term

policies that firmly establish vibrant coal

markets in the country, not [one] captive

to the patronage of quotas and

allocations.

The challenge of achieving a major

expansion of coal-fuelled power plants

across India goes beyond persuading the

private sector to invest, Joshi said. It also

means opening up and modernising raw

fuel transportation and electricity

distribution, both of which remain what

he termed political footballs.

Governance structures remain wedded

to licensing, regulation and control,

rather than growth, programme

management and true market

liberalisation. No wonder India continues

to rank a dismal 142nd on the Ease of

Doing Business Index, Joshi said in The

Times of India.

A painful example of this is the

convoluted regulations surrounding coal

supply by CIL to private power

companies.

Under existing terms, buyers sign up

for a yearly contract which permits them

to amend it only once. In other words,

they cannot ask for more coal from CIL

if needed.

Such rigidity will mean that imports

are certain to keep on rising if Modi is to

keep his promise to expand electricity

supply and distribution; good news for

coal miners in the US, perhaps.

Meantime, do not expect CILs venture

into the electricity generating business to

light up India very quickly.

If all goes well and there are no

administrative hitches, CIL has forecast

that its first plant may only be

operational in 2020.

In that time, Chinese state-owned

companies could and probably will

build dozens of new generating plants.

Solar power in Japan should become

profitable by the second half of 2016,

despite Tokyos plan to cut the feed-in

tariff (FiT) by a further 16% in July, the

Japan Renewable Energy Foundation

(JREF) claims.

Japans Ministry of Economy, Trade

and Industry (METI) is slashing the FiT

for solar in a bid to cut costs and bring to

an end three years of premium rates for

solar projects.

JREF welcomed the reduction in

subsidies, with chairman Tomas

Kaberger saying that solar had come of

age in Japan and no longer needed state

support. He said Japan was now joining

other G7 nations in providing a profitable

environment for solar power.

COMMENTARY

Solar comes of age in Japan

The solar market has reached maturity in Japan, with 25,000 MW of capacity and no need

for high subsidies. Yet grid connections must be improved to maintain investment levels

By Helen Castell

Japan has cut FiTs for solar, with the solar industry claiming it no longer needs high subsidies Despite popularity, growth rates in Japans solar sector could be falling as the industry matures Japan must deal with connection problems and distribution bottlenecks to support further solar growth





Post-Fukushima bounce

Since the Fukushima nuclear meltdown

in 2011, Japans renewable energy

capacity has tripled to 25,000 MW, with

solar accounting for more than 80% of

this.

Prior to 2011, just 9% of Japans

power came from renewables, and most

of that from hydro. The country had only

4,900 MW of solar capacity at that time.

The big change came with the closure

of all Japans nuclear power plants

(NPPs), leaving the government

scrambling for alternative power sources.

Tokyo introduced a generous subsidy

scheme, offering to pay households that

installed solar panels on their roof 40 yen

(US$0.33) per kWh for power that they

sold back to the grid. This triggered a

surge in investment in residential solar

panels.

Now, Japan is already one of the

worlds four biggest markets for solar

panels and there also are a string of

utility-size solar power plants under way.

Electronics giant Kyocera started

producing electricity in November 2013

from the countrys biggest ever solar

array, which comprises nearly 1.5 square

km of panels in Kagoshima Bay and has

70 MW of capacity. The company also

plans to build a 430-MW plant on one of

Japans many offshore islands.

Japan aims to close 2,400 W of oil-

fired capacity by March 2016 and rely on

renewables to replace the lost capacity.

Running out of steam

No other technology is closer to

transforming Japans power industry than

solar, according to energy consultant

Wood Mackenzie. Solar costs will fall

further, as efficiencies are nowhere near

their theoretical maximums, it said in a

research report.

ExxonMobil also predicts that global

solar capacity will expand more than

twenty times between 2010 and 2040.

Yet there are concerns that Japans

solar revolution could be running out of

steam.

Japans biggest power utilities have

since late last year been refusing to take

more power from solar producers, saying

they do not have enough distribution

capacity.

The governments decision to cut the

price that utilities have to pay for power

from new solar to 27 yen (US$0.23) per

kWh also weakens somewhat the

incentive for further investment.

However, a dramatic fall in costs for

residential solar power production in

Japan should support installations going

forward and make up for the lower

subsidies. These costs have already more

than halved since 2010 to a level that is

barely higher than for non-renewable

power.

A plunge over the last few years in the

prices for solar cells and solar panels

globally has, along with those subsidies,

helped cement solar power as an

established energy source in Japan and

other key markets like China and the US.

Those price falls have been tough on

the companies that make cells and

panels, however, triggering a wave of

industry consolidation that has seen

industry names vanish and others slash

production.

Among the survivors is Japans Solar

Frontier, which has achieved economies

of scale at home, but to grow further will

soon need to extend its reach overseas.

Growing pains

NewsBase believes that solar power is

now a force to be reckoned with in Japan

and can be regarded as a mature

technology. The challenge for Tokyo is

to ensure that distribution bottlenecks

and in particular difficulties transporting

power between Japans eastern and

western regions, which use different

voltages do not trigger a slowdown in

solar powers momentum.

Tokyos plans to liberalise Japans

power sector alleviate these concerns, but

only partly, with a weakening of the

near-monopoly status enjoyed by Japans

ten big power utilities creating room for

new entrants. Yet how enthusiastic the

incumbents will be to open their markets

to competition remains to be seen.

Developers of solar power plants,

however, still need clear signals from the

government that they will be able to find

a market for their power at prices that

justify their investments and that the

industry has Tokyos full support.

Thai state-owned electricity generator

Global Power Synergy is to focus future

growth outside its home country, the

company said.

Target countries for investment are

Myanmar and Indonesia, company

president Noppadol Pinsupa was quoted

by the Bangkok Post as saying.

Global is currently carrying out due

diligence on the possible acquisition of a

gas-fired thermal power plant (TPP) in

Thailand that is currently under

construction, plus a gas-fired TPP in a

neighbouring country, Noppadol told

the Post. He declined to give any details.

After that, Globals growth path over

the next 10 years would concentrate on

acquiring or developing coal-fired TPPs

abroad, he said.

COMMENTARY

THERMAL

Thailands Global Power Synergy targets growth abroad





Global is already active outside

Thailand, with involvement in two

hydropower projects in Laos and a small

solar plant in Japan.

Noppadol also disclosed that his

company was negotiating to join a

consortium including Electricity

Generating Authority of Thailand

(EGAT) and Japans Marubeni to

develop a 1,800-MW, coal-fired TPP at

Myeik in southeast Thailand.

Rival Ratchaburi is separately carrying

out a feasibility study on a larger coal-

fired TPP in the same area of Myanmar,

Bloomberg Finance said.

Myanmar suffers from severe power

shortages as its economy grows,

especially along the southeast coastal

strip bordering Thailand.

However, several coal-fired TPPs

proposed for this region by Thai firms

aim to send a large portion of their output

across the border into Thailand, the Post

said.

Global Power, a subsidiary of Thai

state-owned oil and gas monopoly PTT,

has twice postponed listing on the Stock

Exchange of Thailand, citing uncertain

public policies by the military-led

regime now running the country

following a May 2014 coup.

In April, Global said its listing was

imminent and hoped to raise 10 billion

baht (US$297 million) from an IPO

towards a targeted 18 billion baht

(US$535 million) capital expenditure

plan for the next five years.

Global Powers Noppadol also said his

company was negotiating to work with

Japanese and American firms to develop

a lithium storage battery system. No

further details were given.

Indias NTPC is to build a 4,000-MW,

coal-fired Ultra Mega Power Project

(UMPP) in northern Jharkhand state in a

joint venture with state utility Jharkhand

State Electricity Board (JSEB).

NTPC will build an efficient super-

critical project of 4,000 MW in two

phases, [to] provide affordable power

supply to consumers, said an NTPC

spokesperson after signing a

memorandum of understanding (MoU)

with JSEB last week.

A new joint venture company will be

set up to develop the project, which will

be built adjacent to JSEBs existing

power plant at Patratu in two phases.

NTPC will hold 76% of the joint venture,

while the remaining 24% will be owned

by the state utility.

The first phase of development

involves building three 800-MW units by

early 2020, while the second will see two

800-MW units constructed by 2024.

The state government will provide

land, water and coal for the proposed

power project. It has already agreed to

allocate 1,850 acres (7.5 square km) of

unutilised land of the existing Patratu

plant to the new project.

The developer would earmark around

85% of all power generated by the new

company to the consumers in Jharkhand.

NTPC has also indicated its

willingness to take up the development

of the 3,960-MW Tilaiya Ultra Mega

Power Project (UMPP), which has been

abandoned by Reliance Power.

NTPC is more than willing to come

on board, NTPC chairman and

managing director Arup Roy Choudhury

told reporters last week.

Jharkhand Integrated Power Ltd

(JIPL), a wholly owned subsidiary of

Reliance Power, exited the Tilaiya

project because of delays in acquiring the

required 17,000 acres (68.8 square km)

of land for the project.

In August 2009, JIPL won rights to

build a 3,960-MW UMPP at Tilaya in

Hazaribagh district through a competitive

bidding process, but could not start work

on the project, as the state government

had not provided the required land even

after five years. NTPC made a bid to

develop the Tilaiya project but lost out to

JIPL.

The power utility has so far not

succeeded in winning bids in any of the

four UMPPs that have been awarded so

far.

NTPC aims to build 20,000 MW of

new capacity by 2020, in addition to its

existing 44,000 MW. It currently

operates 17 coal, seven gas, two solar

and seven joint venture generating

projects.

THERMAL

Myanmar suffers from

severe power shortages as

its economy grows,

especially along the

southeast coastal strip

bordering Thailand

NTPC to build 4,000-MW TPP in

Jharkhand

NTPC aims to build 20,000

MW of new capacity by

2020, in addition to its

existing 44,000 MW





Japans Hitachi Power Solutions has

unveiled plans to set up a joint venture

company in Thailand to provide power

plant maintenance and consulting

services in the increasingly promising

Southeast Asian market.

Hitachi Power Solutions is aiming to

establish the joint venture company with

Japans Sanko Group in Bangkok on

June 30, although some details such as

the new firms name and senior

management have yet to be worked out,

Hitachi Power Solutions said on May 7.

Hitachi Power Solutions will take a

40% stake, while Sanko Group will hold

60% through two subsidiaries, Sanko

Controls and Thai-based Sanko Industrial

Solutions.

The joint venture company will

provide power plant maintenance and

consulting services to small-scale power

producers in Thailand, Hitachi Power

Solutions said.

According to Hitachi Power Solutions,

Thailands electric power sector is now

being liberalised and the number of

small-scale power producers in the

country is expected to grow in the future.

Hitachi Power Solutions is a subsidiary

of Japanese industrial conglomerate

Hitachi, while Sanko Group is primarily

involved in the area of instrumentation

control engineering.

Hitachi Power Solutions and Sanko

Group also set up a joint venture

company in the Philippines in 2011 to

provide power plant maintenance

services.

In February 2014, Japans Mitsubishi

Heavy Industries (MHI) and Hitachi also

integrated their thermal power system

operations, creating Mitsubishi Hitachi

Power Systems (MHPS).

The joint venture company also took

over the two parent firms geothermal

power systems, environmental

equipment, fuel cell, electric power sales

and other related businesses.

Vietnamese state-run utility EVN has

chosen Black & Veatch to provide

technical services for the US$1 billion

Duyen Hai 3 thermal power plant (TPP)

extension in Vietnams Tra Vinh

Province.

When completed, the 1,200-MW TPP

is anticipated to supply 10% of the

countrys annual electricity demand and

improve the reliability of power supplies

in the region.

EVN subsidiary Power Generation

Corporation 1 has also chosen Japans

Sumitomo as a partner. The Japanese

company won a US$800 million

engineering, procurement and

construction (EPC) contract in November

2014.

Black & Veatch will work together

with Sumitomo to develop the project.

This role includes overall plant

engineering liaison and commissioning.

The company will also procure certain

balance of plant equipment, said Black

& Veatchs project director, Mark

Fournier.

The project aims to address seasonal

variations caused by the dominance of

hydropower in the region, resulting in a

more reliable system.

The Duyen Hai Power Generation

Complex is a 4,305-MW coal-fired

facility that comprises three separate

TPPs.

Duyen Hai 1 and 2 are made up of two

units each, while Duyen Hai 3 has three.

The 1,245-MW Duyen Hai-1 project is

being built by Chinas Dongfeng Group

at a cost of US$1.6 billion. Ground was

broken in September 2010 and the two

622-MW units are both slated to enter

service in July 2015.

The first unit was brought on line in

January 2015.

The 1,200-MW Duyen Hai-2 TPP is

being developed by Malaysians Teknik

Janakuasa and will cost US$2.2 billion.

The project still needs an investment

licence to proceed. The current plan is

for completion in 2020.

Meanwhile, construction of the Duyen

Hai-3 project commenced in December,

and is scheduled to be completed by June

2018.

In April 2015, EVN secured a

syndicated loan worth US$209 million

for Duyen Hai 3 from three domestic

lenders: VietinBank; BIDV and

Vietcombank.

A US$280 million coal seaport, the

Duyen Hai coal port, is also being

constructed for the power complex. The

port is being built by China

Communications Construction and work

began in April 2013.

It is expected to be completed in late

2015 and will be capable of handling 12

million tonnes per year of coal for

consumption at the complex's three

power plants.

THERMAL

Hitachi unit to establish power

plant service JV in Thailand

Black & Veatch selected for

Vietnam power plant expansion





Standard Chartered is to quit as financial

advisor to Adani Groups proposed

Carmichael coal project in Australia until

it can assess whether the project will

harm the environment, the banks

chairman told its AGM May 6.

We will go no further with this until

we are fully satisfied with the

environmental impact of this project,

John Peace said, adding that Standard

Chartered was in active dialogue with

the Australian government over the issue

and ready to meet environmental

campaigners.

When asked by Greenpeace activists

about the banks involvement in the

A$16 billion (US$ billion) Carmichael

thermal coal mine and rail project, Peace

refused to provide details.

Rajesh Kumar Gupta, group financial

controller at Adani Mining, told a

Queensland court in April that Standard

Chartered had lent it US$680 million.

Although Gupta did not specify which

project the money was for, observers at

the hearing said it was clear he was

referring to the Carmichael mine.

The bank has denied this, saying the

loan was a pre-existing refinancing

facility that was not part of the expansion

of the port or construction of the mine.

The bank appears to be playing with

legal definitions, Tim Buckley, a banking

and finance expert who also gave

evidence to the court, told The Guardian.

Adani Mining Proprietary is a single

purpose structure. It was created back in

2010 to build the Carmichael mine and

rail project, he said. It is certainly

Standard Chartered ducking and

weaving.

The Australian state of Queensland

approved last year construction of the

Carmichael mine, which would produce

60 million tonnes of thermal coal per

year for export to India and generate

billions of dollars in revenue for the debt-

laded state.

Environmental campaigners have

slammed the project, which would also

involve the expansion of an Abbott Point

port on the Great Barrier Reef, saying it

will damage the reef.

The mine would be Australias largest

and would be linked to the Abbot Point

port via a 300-kilometre railway line.

If the project goes ahead, it could ease

the way for at least eight more massive

mines in western Queenslands Galilee

basin.

China cut spending in the coal industry

by 4.1% in the first quarter of 2014 as the

government pursued a major cost-cutting

strategy in the coal sector as part of a

wider restructuring of Chinese industry.

Chinas investment in the coal industry

fell by 4.1% to 143.8 billion yuan

(US$24 billion) in the first quarter of this

year, according to data from the National

Statistics Administration. Investment in

coal production fell by 21.2% to 40

billion yuan (US$6.5 billion).

Investment by the private sector sank

by 23% to 23.7 billion yuan (US$3.9

billion) in the first quarter.

Investment in the countrys coal sector

has now fallen for two years in a row.

Chinas largest producing province,

Shanxi, saw investment in the coal sector

fall by 16% year on year in the first

quarter, local media reported.

Mining companies continued to see

their revenues and profits fall in the first

quarter as a result of weak prices.

In the first two months, the coal

industry earned 396.7 billion yuan

(US$64.8 billion) in revenues, 8.3% less

than in the same period in 2014, while

profits plunged by 63% to 8.27 billion

yuan (US$1.4 billion).

Sources said that many mines were

still operating in the red. In Shanxi, about

84% of mining companies were

operating in the red in the first two

months.

The Chinese government has been

pushing utilities to use more clean energy

such as natural gas, which has held down

coal demand and prices. In early May,

5,500 kcal/kg coal was priced down by

100 yuan (US$16.3) per tonne, compared

with 410 yuan (US$67) per tonne at the

start of the year.

COAL

Standard Chartered walks away

from Adanis Carmichael project

We will go no further

with this until we are fully

satisfied with the

environmental impact of

this project

China cuts coal investment

Mining companies

continued to see their

revenues and profits fall in

the first quarter as a result

of weak prices





Australia has approved plans to export

uranium to India after New Delhis

intense diplomatic efforts in recent years

overturned Australias decades-long

export ban caused by Indias nuclear

weapons programme.

Australian Foreign Minister Julie

Bishop said during a visit to Pakistan that

talks were now taking place on a deal,

which would have very strict controls

and safeguards.

India is pursuing a civilian nuclear

power programme. We are aware of the

vast areas of India that are yet to be

electrified. As a country we want India to

succeed economically, she said.

We have legal requirements as well as

standards and protocols that we need to

meet. And there are international

safeguards as well. If those safeguards

could be met then Australia will supply

uranium. But the agreement is still being

negotiated, so no uranium has been

supplied, she added.

Australia holds over 30% of the

worlds uranium deposits and presently

exports to 41 countries including US, EU

members, Canada, Japan, South Korea

and China.

A preliminary Indo-Australian nuclear

pact was signed on September 5, 2014,

during Australian Prime Minister Tony

Abbotts visit to New Delhi.

The agreement is to be implemented

once domestic requirements of both

countries have been fulfilled. The deal

has since been debated in Australias

parliament and was a subject of detailed

talks when Indian Prime Minister

Narendra Modi visited Canberra in

November.

On a four-day visit to New Delhi last

month, Bishop said the atomic deal

between the two countries would

probably be finalised by the end of 2015,

after which uranium deliveries could

begin.

On the administrative agreement, I

am confident that given that the US and

Canada have come to an accommodation

with India, Australia will be able to come

to an accommodation, Bishop said.

Indias economy continues to grow,

due to which the country will be a

significant emitter. Nuclear is a zero

emissions technology, Bishop added.

In January, Modi and US President

Barack Obama ended a six-year-old

deadlock over implementing the civilian

nuclear deal signed in 2008.

They reached an understanding on

nuclear liability and tracking atomic

material, creating a template that can be

followed by other countries. Significant

agreements were also signed in April

when Modi visited Canada and France.

The Indians signed a fuel supply deal

with Canadas biggest uranium producer,

Cameco, while localisation deals were

signed between Areva and Larsen &

Toubro.

New Delhi and Paris have also agreed

to fast-track the stalled 9,900-MW

Jaitapur nuclear power project (NPP),

which uses French technology.

Japans Kansai Electric Power has

moved a significant step closer to re-

opening the ageing Mihama nuclear

power plant (NPP) and extending its

working life beyond 40 years, as a key

government panel effectively decided

that faults running under the plant were

not active.

An expert panel of the Nuclear

Regulation Authority (NRA), Japans

nuclear watchdog, drafted a report on

May 8, which says that the faults

underneath the Mihama plant are highly

likely to be inactive.

The NRA was set up after the 2011

nuclear disaster at Tokyo Electric Power

Co.s Fukushima No. 1 NPP as a body

independent of the powerful Ministry of

Economy, Trade and Industry (METI).

Active faults are defined by the NRA

as faults that have moved in the past

120,000 and 130,000 years.

If the existence of any active fault

underneath the Mihama NPP had been

confirmed, Kansai Electric Power would

likely have been forced to shut the

facility permanently.

Earlier this year, Kansai Electric

Power unveiled plans to operate three

ageing nuclear reactors beyond the

operational limit of 40 years despite

public concerns over the safety of such

facilities in the country.

The three nuclear reactors are the No.

1 and No. 2 reactors at the Takahama

NPP and the No.3 reactor at the Mihama

NPP. The two plants are both located in

Fukui Prefecture, central Japan.

Kansai Electric Power filed an

application with the NRA in March for

the nuclear watchdogs safety checks of

the three 826-MW reactors.

Under tough new safety standards

introduced in the wake of the 2011

Fukushima disaster, reactors are not

allowed to operate for more than 40

years, in principle. If the safety of an

ageing plant is confirmed, the nuclear

regulator may grant a one-time extension

of up to 20 years.

NUCLEAR

Australia to sell uranium to India

Japans ageing Mihama NPP moves closer to restart





The Takahama No. 1 and No. 2

reactors and the Mihama No. 3 reactor

started commercial operations in

November 1974, November 1975 and

December 1976 respectively.

Before the 2011 Fukushima disaster,

Japan had 54 nuclear reactors, which

supplied about 30% of the countrys

electricity needs. There are currently 43

operable nuclear reactors in Japan, but all

of them remain idled because of safety

concerns.

Japanese electric power companies

have significantly boosted electricity

generation at TPPs, especially LNG-fired

ones, to make up for lost output at NPPs.

Kansai Electric Power incurred a group

net loss for the fourth consecutive year in

fiscal 2014, which ended on March 31,

2015, owing to higher fuel costs for

thermal power generation in the wake of

the Fukushima disaster. It hopes that re-

opening its NPPs will lead to better

financial performance.

The Philippines has invited companies to

bid for exploration and development

rights at 21 geothermal and hydro sites,

in a bid to reduce its dependence on

imported fossil fuels.

The countrys Department of Energy

(DoE) offered four areas for geothermal

exploration and development, although

only Areas 2 and 3 attracted bids, with a

total of eight spread between them.

Conversely, 31 bids were registered for

14 of the 17 hydro sites.

Although two areas were left without

bids, the DoE reported that it was happy

with the turnout and that Areas 1 and 4

would be open for direct negotiation. As

such, no more bids will be entertained for

the two areas. Nonetheless, the areas

without bid proposals have been declared

free and open for renewable energy

service contract applications under direct

negotiation (reverted as frontier areas),

energy director Mario Marasigan

confirmed to NewsBase via email.

The projects will cost between

US$2.5-US$3 million per MW,

Marasigan added.

Bids came mainly from local

companies, some with foreign and joint

venture partners. Companies such as

Repower Energy Development, Cabalian

Bay and AP Renewables submitted bids

for Area 2, while Repower, APC Energy

Resources, Emerging Power, Energy

Development and Biliran Geothermal

submitted applied for Area 3.

The Philippines has planned a 75% rise

in geothermal capacity by 2030, and an

even more notable 160% increase in

hydropower capacity, as well as an

additional 277 MW of biomass power

capacity. According to the countrys

National Renewable Energy Plan,

surveys have shown that there are 2,027

MW of proven geothermal reserves and

another 2,380 MW of potential reserves.

The majority (49%) of the countrys

installed geothermal energy capacity is in

the Visayas.

The government has continuously

sustained its efforts to increase the

utilisation of geothermal energy in the

country. Despite this, more work is

needed to harness the huge geothermal

reserves that remain untapped, the plan

says.

The total installation target of 1,495

MW is anticipated to be met by 2027,

with most of that expected to be

commissioned between 2016 and

2020.

POLICY

US-Vietnam sign

MoU to develop

competitive power

market

US Department of State Bureau of

Energy Resources (ENR) and the

Electricity Regulatory Authority of

Vietnam (ERAV) have signed a

Memorandum of Understanding (MoU)

for technical support from ENR for the

development of Vietnams competitive

power market. Underscoring the

importance of ENR technical support,

Ambassador Warlick said the

establishment of a competitive power

market can incentivise investment in

new power generation and transmission,

lower electricity costs, drive innovation

in cleaner technology, and encourage

conservation.

Deputy Chief of Mission Pierangelo

expressed her amazement at economic

growth and development Vietnam had

achieved over the last decade but added

that a country can only expand as far as

its power supply would allow.

NUCLEAR

RENEWABLES

Philippines bids on 21

geothermal, hydro sites

NEWS IN BRIEF





She said Vietnam needed reforms, like

the establishment of a competitive power

market, to ensure the countrys electrical

supply could meet future demand. She

praised the MoU as yet another example

of how the United States is committed to

helping Vietnam become a strong,

prosperous and independent country.

The MoU signing is the latest in a series

of agreements for US assistance to

develop and strengthen Vietnams energy

sector. It also provides another success

story in the bilateral relationship during

the 20 year anniversary of normalisation

of relations between the US and

Vietnam.

VIETNAMNETBRIDGE.NET, May

7, 2015

GRID

PowerGrid inks pact

with Bangladesh

Indias state-run Power Grid Corporation

(PGCIL) has signed a pact with

Bangladesh to build a transmission

corridor at a cost of 760 million rupees to

supply 100 MW power to the

neighbouring country. The line, nearly 30

km in length, will initially operate at 132

kV and will be ramped up to 400 kV in

future. Power Grid will execute the

transmission line project on the Indian

side of the India-Bangladesh border in

Tripura.

On the other side, Bangladesh will build

the connecting line from Comilla

substation. The project is likely to ease

Indias energy starved neighbour, which

is currently facing an electricity shortage.

The bipartite power transmission

agreement will involve a double circuit

line with extension of bay from Surjya

Mani Nagar in Tripura. The applicable

transmission charges will be as per the

Central Electricity Regulatory Authority

(CERC) guidelines, a Power Grid

official said. Power Grid will use the

substation for extension of the line right

up to international border with

Bangladesh.

FINANCIAL EXPRESS, May 8,

2015

NTPC can proceed

with 1,320-MW

Khargone Project

A high-level committee has

recommended environmental clearance

for state-owned NTPCs 1,320-MW

Khargone power project in Madhya

Pradesh, but with certain caveats. The

committee recommended the project for

environmental clearance subject to...

specific conditions, a company official

said. The stipulations for the project,

estimated to cost 70 billion rupees, are

the coal transportation should be by rail,

the sulphur and ash content of coal shall

not exceed 0.5% and 43%, respectively,

and the latest authenticated satellite

imagery shall be submitted annually to

monitor alterations of the area, the

official said.

NTPC, the countrys largest power

producer, had earlier invited bids for

construction of the thermal project.

Infrastructure firm Larsen & Toubro

bagged the contract in April from NTPC

to set up the power project. ...the project

entails design, engineering, manufacture,

supply, erection and commissioning of

two coal-fired thermal units of 660 MW

each with ultra supercritical (energy

efficient) parameters, Larsen & Toubro

said.

NTPC earlier said it plans to finance the

EPC (engineering, procurement and

construction) package for Khargone plant

through external commercial borrowings

and its own resources.

PTI, May 10, 2015

SUPPLY

Kazakhstan

considers new power

plants to export to

China

Kazakhstan might build new energy

generation facilities with the aim of

exporting the electricity they produce to

China, according to Director of the

Electric Power Department at the

countrys Energy Ministry Baurzhan

Sarsenov said. As one of their most

promising projects, Kazakhstan and

China are considering the possibility of

building an electricity transmission line

to the central and eastern regions of

China. It is possible to build new power

plants in the Turgai and Ekibastuz

regions in Kazakhstan to sell Kazakh

electricity to China, Sarsenov said.

He said Kazakhstan would also use the

future CASA-1000 electricity

transmission project for the export of its

electricity to Afghanistan and Pakistan.

CASA-1000 will build more than 1,200

km of electricity transmission lines and

associated substations to transmit excess

summer hydropower energy from

existing power generation stations in

Kyrgyz Republic and Tajikistan to

Afghanistan and Pakistan.

According to Kazakhstan Electricity Grid

Operating Company (KEGOC), in 2014

electricity production in Kazakhstan

amounted to 93.9 billion kWh, by 1.9

billion kWh or 2.1% more than in 2013

(91.972 billion kWh). Electricity

consumption in the country increased by

1.991 billion kWh or 2.2% to 91.632

billion kWh in 2014 compared with

2013.

Over the past five years, generating units

with a total capacity of about 1,800 MW

have been modernised, repaired and put

into operation in Kazakhstan.

SILKROADREPORTERS.COM,

May 11, 2015

West Bengal could

reduce power tariff

in two to three years

The West Bengal government has hinted

at a reduction in power tariff in the next

two to three years following new captive

block regulations. We have got six

captive blocks. We think we will be able

to get coal at lower cost than before.

With this, there is a possibility that

power tariff may get lower in the next

two to three years, state power minister

Manish Gupta said.

He was referring to the Bengal region,

except Kolkata and Howrah, which are

controlled by private player CESC.

NEWS IN BRIEF





The cost of coal for the state discom,

WBPDCL, may come down to 1,800

rupees per tonne from the earlier 2,600

rupees per tonne, he added. According to

sources, the government may not pass on

the coal price benefit as it may withdraw

its subsidies on retail consumption and

mitigate other costs. Gupta said the final

tariff will depend on other factors like

freight and other costs.

PTI, May 8, 2015

THERMAL

New Delhi asks TPP

to comply with green

norms

The New Delhi government said its

central pollution watchdog, Central

Pollution Control Board (CPCB), has not

conducted any specific assessment of

pollution caused by thermal power plants

around their sites, but has so far asked 20

of them to comply with environment

standards. Directions under

Environment (Protection) Act, 1986 have

been issued to 14 power plants, while

concerned state pollution control boards

were asked to direct six power plants to

comply with the environmental standards

under Air (Prevention and Control of

Pollution Act), 1981 and Water

(Prevention and Control of Pollution)

Act, 1974, Javadekar said.

Replying to a Parliament question in the

Lok Sabha, the minister said CPCB

issued directions to the plants on the

basis of the findings of inspections

carried out by its environmental

surveillance squad (ESS). The power

plants which have been issued directions

include Paras and Koradi thermal power

stations in Maharashtra, Patratu,

Tenughat, Chandrapura power plants in

Jharkhand, Kutch Lignite in Gujarat,

Durgapur and Kolaghat in Bengal,

Rayalseema power plant in Andhra

Pradesh, and Chhabra thermal power

station in Baran district of Rajasthan.

TIMES NEWS NETWORK, May 6,

2015

COAL

Rejected coal

cargoes renew

uncertainty in China

Chinese customs bureaus have stalled

Australian and South African coal

deliveries that exceed fluorine limits

under the countrys new quality

regulations. Chinese customs have

stopped one shipment of high-ash

Australian coal at eastern Ningbos

Beilun port and a separate cargo of South

African coal at southern Guangxis

Fangcheng port over the past two weeks,

according to market participants with

exposure to Chinas import market,

although this could not be confirmed

directly with the counterparties or with

Chinese customs.

The Australian 5,500 kcal/kg thermal

coal was sold to a Chinese cement

producer and is understood to have been

rejected by the local inspection and

quarantine bureau. The cargo was later

redirected to a buyer in Taiwan, the

market participants said. The South

African 4,800 kcal/kg coal was sold to a

Chinese trader and is undergoing a third

round of inspections by authorities after

failing the first two checks.

Chinas main economic planning agency

the NDRC has mandated that coal

imports must meet quality standards for

five trace substances, with mercury

content of less than 0.6 micrograms per

gram, arsenic below 80 micrograms per

gram, phosphorous below 0.15%,

chlorine below 0.3% and fluorine below

200 micrograms per gram. These are in

addition to restrictions on ash and

sulphur content of a maximum of 40%

and 3%, respectively. The quality

regulations took effect on January 1 and

have raised waiting times, which have in

turn increased demurrage costs and the

risk of rejection at ports.

ARGUSMEDIA.COM, May 11,

2015

Indias April coal imports down 6% to

18 million tonnes

India imported around 18 million tonnes

of coal in April through 25 major ports,

down 6% month on month, data from

shipbroker Interocean showed. The

monthly imports consisted of 14.5

million tonnes of steam coal, down 5%

from March, and 3.5 million tonnes of

coking coal, down 10%. Mundra on the

west coast received the highest coal

shipments in April at 2.7 million tonnes,

down 13% and of which 2.6 million

tonnes was steam coal.

Goa, also on the west coast, received the

highest coking coal shipments in April at

715,224 tonnes, down 14%.

The coal was mainly imported from

Australia, Indonesia, South Africa and

the US.

PLATTS.COM, May 6, 2015

Bumpy goings for

Indonesian coal

miners

Indonesias publicly listed coal miners

continue to see incomes shrink amid a

decline in the global demand for coal,

which has dragged down prices in recent

years. State-run miner Bukit Asam and

major coal producer Adaro Energy both

reported significant reductions in their

bottom lines during the first three months

of the year, with the former booking a

drop in net profits of 36.5% year on year

to 330.34 billion rupees (US$25.47

million).

Adaro, meanwhile, saw its net profit

halved from the US$128.75 million it

booked between January and March 2014

to US$59.06 million in the same period

this year. In press releases, both

companies said low prices and flagging

demand were behind their lacklustre first

quarter performance.

Global coal price-benchmark Newcastle

showed a 2.7% quarter-on-quarter

increase during the first three months of

the year, while Indonesias coal price

reference rose by 6.14% from January to

March, to around US$68 per tonne.

NEWS IN BRIEF





But the increases could not make up for

the more than 10% drop in coal prices

over the last year triggered by a decline

in Chinese demand, the worlds largest

coal consumer.

A higher price benchmark did not

necessarily translate into better

performances for companies, as the price

was still generally low and exported

production shipped mostly to China,

demand from which is slowing on the

back of the economic slowdown, BNI

Securities analyst Viviet Putri said.

JAKARTA POST, May 5, 2015

Indonesian coal

output to decline

Indonesian coal miners may produce less

coal this year in an attempt to turn

around the drop in commodity prices,

presenting another challenge to the

depressed dry bulk shipping market. The

Indonesian Coal Mining Association has

said that it believes that coal production

will total 350-400 million tonnes this

year, which would mark a decline of 58-

108 million tonnes from 2014.

That works out to a year-on-year decline

of 12.66-23.58%, based on the 458

million tonnes produced in 2014.

Indonesia is the worlds biggest coal

exporter and producer, with key

importers being China and India. The

anticipated decline in Indonesias coal

output coincides with an expected drop

in Chinas coal demand due to slowing

economic growth and its growing use of

LNG in its energy mix.

While India is raising coal imports, this

would not be adequate to make up for the

decrease in Chinas coal imports.

Dry bulk consultancy Commodore

Research said, A year on year decline of

58-108 million tonnes of Indonesian coal

production fits into the 81.6-101.6

million tonnes drop in overall Chinese

coal imports we predicted.

We also continue to believe that Indian

imports will increase by 20-25 million

tonnes this year, which combined with

our expected range of decline for overall

Chinese coal imports works out to total

overall coal imports from China and

India falling this year by 56.6-91.6

million tonnes. This figure is very much

in line with the Indonesian Coal Mining

Association anticipated decline in coal

production.

IHS, May 7, 2015

DoE wants

privatisation of

Mindanao coal plant

pushed back

Philippine Energy Secretary Carlos

Jericho Petilla wants to push back the

privatisation of the supply contracts for

the output of the 200-MW Mindanao

coal-fired plant to next year from

September this year. The power plant

supplies about a fifth of Mindanaos

power requirements. Petilla is concerned

that an early auction could result in

power-rate hikes. He said electric co-

operatives would be forced to source

power from the winning bidder which, in

turn, could dictate prices due to lack of

competition.

I want to ask PSALM [Power Sector

Assets and Liabilities Management

Corp.] to delay the privatisation until

such time that the power plants of

Aboitiz, Alsons or San Miguel have been

put up, Petilla said. The energy chief

said a better scenario would be to

privatise the contracted capacity of the

STeag coal-fired power plant in Misamis

Oriental sometime within the first half of

2016 when the new power plants of the

power- generation companies are

expected to come online.

Its better to hold off the privatisation so

that the consumers wont be burdened

only until such time when at least two

power plants are up and running which is

actually very soon, maybe in the first half

of 2016, Petilla said. Therma South Inc,

a unit of Aboitiz Power, is building two

by 300-MW coal-power plant in Davao.

BUSINESSMIRROR, May 10,

2015

NUCLEAR

Australias nuclear industry under study

The availability of cheap electricity will

determine if a nuclear enrichment and

processing facility can be set up in South

Australia, which is considering a full-

scale nuclear industry to help its stagnant

economy, the Sydney Morning Herald

reported. Former South Australian

governor Kevin Scarce, who is heading

the royal commission into the nuclear

fuel cycle, has set a deadline of May,

2016, for his final report into whether the

State should expand from just allowing

uranium mining, into enrichment, waste

storage and nuclear power.

The commission has been officially

underway for several weeks and held

public meetings in the riverland regional

town of Berri. South Australia is host to

about 30% of the worlds known

uranium deposits, including the largest

copper and uranium mine in the world,

operated by BHP Billiton.

SYDNEY MORNING HERALD,

May 6, 2015

China to build third

generation nuclear

reactor

Construction of Chinas first third-

generation nuclear reactor will start on

May 7, a state-run company said, as

Beijing attempts to export its atomic

energy designs globally. Unit five of the

Fuqing nuclear power plant in Fujian

province will incorporate an ACP1000

reactor developed by the China National

Nuclear Corporation (CNNC), the firm

said. The ACP1000 is one of a third

generation of reactors designed to extract

more energy from a given amount of

uranium fuel than previous technologies,

and in a safer way.

Other third-generation reactors are under

construction elsewhere, with competing

designs by French group Areva,

Westinghouse of the US, and South

Koreas Kepco, among others. CNNC

touts its reactor as a production of

independent innovation, although

industry reports say it is related to a

French design imported to China in the

1990s. This project is also very

important for our nuclear going-global

strategy, CNCCs general manager Qian

Zhimin said.

NEWS IN BRIEF





Mainland China has 26 nuclear power

reactors in operation, 23 being built, and

more about to start construction,

according to the World Nuclear

Association. Chinas policy is to go

global with exporting nuclear

technology including heavy components

in the supply chain, it added.

CNNC said an ACP1000 has been

exported to Pakistan, and a deal was

signed in February for a sale to

Argentina.

AFP, May 7, 2015

China, Argentina

continue talks on

new nuclear plants

A US$13-billion deal agreed by China to

build two reactors for Argentina hinges

entirely on the Chinese side putting up

the financing, with a final arrangement

on the cash deal to be signed in 2017,

according to sources in the Chinese

nuclear industry. CNNC [China

National Nuclear Corporation] signed the

deal but it and several Chinese

government agencies involved are

demanding that the loan from China be

contingent on Chinese companies being

given priority in all aspects, including

design, construction and fuel cycle, said

a Chinese consultant for equipment sales

between western and Chinese nuclear

firms.

The source added: Argentina needs the

Chinese funds to build the reactors but

its not convinced on the equipment,

because the Fuqing project [based on

Chinas first domestically designed

commercial reactor, the Hualong One] is

running behind schedule and thus the

delay [in final signing off on the deal] till

2017.

Sources in Buenos Aires said that the

deal would be part of a wider plan to

boost nuclear power capacity by 3,000

MW over the next decade to meet rising

demand for electricity. Argentinas state

nuclear power operator, Nucleoelectrica

Argentina SA (NASA) wants work on an

800-MW pressurised heavy water reactor

to begin in 2016. The second project is in

the preliminary stages, with construction

planned to begin in 2017 on a 1,100 MW

pressurised water reactor. But China is

insisting that domestic components are

central to the deal and this might push

progress back to 2017.

WORLD NUCLEAR NEWS, May

9, 2015

Generation at

KNPPs first unit suspended

Power generation in the first unit of

Kudankulam Nuclear Power Plant

(KNPP) has been suspended due to a

technical snag, officials said. However,

repair work has already been commenced

to rectify the snag, which was detected

May 9 and will be set right in one or two

days, they said.

Work on commercial power generation

in the 1,000-MW second unit was also

continuing, the officials said.

PTI, May 10, 2015

Indonesia mulls

building NPPs in

Kalimantan

Indonesias Energy and Mineral

Resources Ministry is considering

building nuclear power plants in the

provinces of Kalimantan or Bangka-

Belitung. Now we are carrying out a

feasibility study. At the same time we are

educating people about nuclear power,

ministry director general of electricity

Jarman said.

Kalimantan and Bangka-Belitung were

chosen because the two regions were not

prone to earthquakes or tsunamis, he

said, adding that the feasibility study in

Bangka had been completed, while in

Kalimantan it was still in progress. If

the feasibility study in Kalimantan is

completed, we will later decide the

mechanism of its construction, whether it

is entrusted with state-owned electricity

company PLN or private companies,

Jarman said.

The consideration to use nuclear power

was taken because it would be difficult to

build a power plant with a combined

capacity of 7,000 MW per year if it

depended only on fossil energy.

THE JAKARTA POST, May 10,

2015

Nuclear remains

Japans cheapest power source

A panel of nuclear experts has largely

approved a Japanese government report

saying that atomic power remains the

cheapest source of electricity, despite the

rising safety costs triggered by the 2011

Fukushima core meltdowns. Despite an

expected glut in solar power, the

government is looking to make nuclear

power account for 20 to 22% of Japans

electricity supply by 2030, underscoring

its policy of sticking with atomic power

even though the majority of the public

remains opposed to restarting its idled

reactors.

According to the latest estimate of power

generation costs by the Ministry of

Economy, Trade and Industry, atomic

power would cost at least 10.3 yen per

kWh in 2030, cheaper than power

derived from fossil fuels, natural gas,

wind and solar energy. That is higher

than the 8.9 yen projected in 2011 and is

based on a projection that costs for plant

decommissioning and compensation

from a severe accident would jump to 9.1

trillion yen from the 5.8 trillion yen

estimated in 2011, reflecting the

Fukushima nuclear crisis.

METI also said additional safety

measures required to run a nuclear

reactor would cost an average of 60.1

billion yen. But the increase in overall

generation costs is limited because the

probability of a nuclear accident would

decrease after utilities complete their

safety measures, it said.

KYODO, May 11, 2015

NEWS IN BRIEF





HYDRO

China signs deal to

build hydropower

plant with Russia

Chinas biggest hydropower developer,

China Three Gorges Corp, has signed an

agreement with Russian hydropower firm

RusHydro to jointly build a hydropower

plant in Russia, state news agency

Xinhua said. The 320-MW plant would

be located on Russias Bureya river in

the east and would help to control floods

in the region, Xinhua said, citing a

statement from Three Gorges Corp.

Electricity generated from the plant

would be transmitted back to China, it

said. Details about the value of

investment were not available. The deal

was one of a series signed between China

and Russia on the sidelines of a parade in

Moscow that was attended by President

Vladimir Putin and Xi Jinping.

REUTERS, May 11, 2015

India plans basin-

wise hydropower

review

India is planning an exhaustive basin-

wise study of the hydropower potential in

the country after a gap of 28 year, an

exercise to gather fresh data looking at

energy security and factors ranging from

climate change and earthquakes to

human displacement. The study will also

assess the environmental and social

impact of river basin development.

The last such survey was undertaken in

1978-87. The Central Electricity

Authority (CEA), Indias apex power-

sector planning body, is leading the

ambitious project, initiated in 2012, and

plans to appoint a consultant for the

work, amid concerns over climate change

and its impact on rainfall and on river

flow and its patterns, which in turn may

have an impact on plans for hydropower

generation. This comes in the backdrop

of widespread protests against

hydropower projects from people who

are at risk of being displaced by the

projects.

LIVE MINT, May 5, 2015

BHEL commissions

first unit at Shrinagar

HPP

Power plant equipment manufacturer

Bharat Heavy Electricals (BHEL) has

commissioned an 82.5-MW hydroelectric

generating unit at the 330-MW Shrinagar

Hydro Electric Project (HEP) in

Uttarakhand, India. The renewable

facility, which is being developed by

Alaknanda Hydro Power Corporation

(GVK Group), will house three more

units with power generation capacity of

82.5 MW each. The power plant is being

constructed on the Alaknanda River, near

the town of Shrinagar in Pauri Garhwal

District in the Indian State.

The facility will be supported by a dam,

which has a height of 90 metres from

deepest foundation level. The power

plant is being constructed on the

Alaknanda River, near the town of

Shrinagar in Pauri Garhwal District in

the Indian State. BHEL will be

responsible for the design,

manufacturing, supply, installation and

commissioning of the four units at the

facility which including Francis turbines,

generators, static excitation system,

generator transformer, unit transformers

and station transformers.

GVK has signed a power purchase

agreement (PPA) for the project with

Uttar Pradesh. Up to 12% of generated

power from the facility will be

transmitted to Uttarakhand without any

charge.

POWER TECHNOLOGY, May 8,

2015

KOMIPO to build

second hydropower

plant in Indonesia

Korea Midland Power Co (KOMIPO)

has started building the Semangka

Hydropower Plant on Sumatra Island,

Indonesia. This is the second

development project in Indonesia,

following the Wampu Hydroelectric

Project in 2011. Indonesias Semangka

Hydroelectric Power Plant Project will be

completed in September 2017. The

project includes an electricity sales

contract that the Indonesian government

will guarantee, and its electricity board

will purchase electricity. KOMIPO

expects to turn over approximately 128

billion won (US$118.42 million) by

selling electric power for nearly 30 years

after the development.

KOMIPO believes that the two

hydropower projects in Indonesia will

become an opportunity for Korean small-

and medium- sized companies to tap into

overseas markets. Five small Korean

companies, including POSCO

Engineering and Haechang Construction

Co, participated in the Semangka project.

BUSINESS KOREA, May 6, 2015

RENEWABLES

Broken Hill Solar

farm underway

The first of 650,000 PV panels has been

installed at the solar farm taking shape

near the birthplace of Australian mining,

ABC News reported. AGL is developing

the 53-MW Broken Hill solar plant,

which, combined with its partner project

Nyngan, will be the largest in the

southern hemisphere. The plant is

expected to power 17,000 homes when

generation begins later this year. Project

manager Adam Mackett said conditions

in the outback have proved a good fit for

the project.

Its a fantastic area to host the solar

plant, he said. The solar irradiance out

at Broken Hill is great. The other benefit

is just the skilled workforce out there.

Weve got 85 people on site [and] weve

got more than 50% of people from the

local region. The A$440-million Broken

Hill and Nyngan plants combined will be

Australias largest utility-scale solar

projects.

ABC NEWS, May 5, 2015

NEWS IN BRIEF





Australian RET

reviews causing

friction

The long-running saga of Australias

renewable energy target has entered

another round with Labor declaring there

will be no deal if the government

continues to review the scheme, the

Sydney Morning Herald reported. An

eleventh-hour government decision to

retain two-yearly reviews has derailed a

new bipartisan agreement that would

have reduced the target from 41,000

GWh of renewable energy production by

2020 to 33,000 GWh.

The move, believed to have been put

forward by Industry Minister Ian

Macfarlane, has prompted a furious

reaction from the clean energy industry,

which has demanded that the government

stand by its promise to scrap two-yearly

reviews. The Labor caucus agreed that a

figure of 33,000 GWh could form the

basis of an agreement with the

government but the opposition could not

support a plan that included two-yearly

reviews.

The government shouldnt proceed with

introducing legislation if the package

they put to the parliament has the two-

year reviews in it, Labors environment

spokesman Mark Butler said. The

industry has made it clear that new

building will not proceed if there is still a

two-year review process that would lead

to the review starting in as little as seven

months time.

SYDNEY MORNING HERALD,

May 12, 2015

Shanghvis proposed deal with Suzlon

approved

The Competition Commission has

cleared billionaire Dilip Shanghvis

proposed 18-billion-rupee stake in wind

turbine maker Suzlon Energy. The deal,

announced in February this year, would

see Shanghvi acquiring at least 23%

stake in Suzlon, which has been

grappling with tough business conditions.

The Competition Commission of India

(CCI) said it has approved acquisition

of shares in Suzlon by Aalok D Shanghvi

& Others.

Suzlon has entered into definitive

agreements with Dilip Shanghvi Family

and Associates (DSA) for equity

investments of 18 billion rupees in the

company. Post allotment, DSA wold

have 23% stake in the wind turbine

maker while the Tanti Family would

have 24% shareholding.

When the deal was announced in

February, Suzlon Group Chairman Tulsi

Tanti had said that support from

Shanghvi would help in creating a long

term sustainable value for stakeholders.

PTI, May 8, 2015

India signs

renewable pacts

with 12 nations

Indias Ministry of New and Renewable

Energy has signed memorandum of

understanding (MoU) with 12 countries

during the last three years to enhance co-

operation in the sector, Parliament was

informed. The Ministry of New and

Renewable Energy has signed MoUs

with 12 countries during the last three

years. In addition, letter of intent and

joint declaration of intent with Egypt and

Germany were also signed, Power, Coal

and Renewable Energy Ministry Piyush

Goyal said.

He told the House that joint research

work has been initiated by the National

Institute of Solar Energy (India) and

Fraunhofer Institut fur Solary

Energiesysteme (ISE), Germany, in solar

and wind resource mapping. He further

said that joint research work has also

been initiated with Centre for

Development of Industrial Technology

(CDTI), Spain, on wind energy

forecasting and development of

monitoring system for energy reception

elements in solar thermal plants.

OUTLOOK, May 7, 2015

Vikram Solar

commissions 40-MW

solar plant

Solar module manufacturer and EPC

Vikram Solar has this week successfully

commissioned a 40-MW solar PV plant

for IL&FS Energy Development

Company Limited (IEDCL) in the Indian

state of Madhya Pradesh. The installation

uses Vikram Solars high-efficiency

Eldora 250 polycrystalline PV modules,

and occupies a 260-acre site. Built in two

20-MW phases, the plant is now

connected to the grid as part of Indias

Jawaharlal Nehru National Solar Mission

(JNNSM) Phase-II, Batch-I scheme,

which is overseen by the Ministry of

New and Renewable Energy (MNRE).

Vikram Solar has also secured the rights

to manage the installations operations

and maintenance (O&M) requirements,

signing a 10-year contract with plant

owner IEDCL. In its first full year of

operation, the installation is expected to

generate 79,200,000 kWh of solar

electricity.

PV MAGAZINE, May 7, 2015

Tata Power aims to

generate 400 MW of

solar power

Tata Power Delhi Distribution aims to

generate 400 MW from solar power by

2022 through its planned rooftop solar

project for its industrial and commercial

consumers in the national capital. As part

of this, the company will offer its

industrial and commercial consumers a

scheme to opt for solar rooftop panels to

cut power bills.

Solar power is also seen to help ease

demand seen during peak hours. The

company in June last year had

commissioned a study by Energy and

Environmental Economics (E3), a US

energy consulting firm, to check the

feasibility of the distribution utilitys grid

rooftop solar PV and demand response

projects.

MINT, May 7, 2015

NEWS IN BRIEF





SPECIAL REPORTS

AfrElec the latest weekly Monitor from NewsBase will cover power development across Africa, focusing on policy, tendering, pipelines, grid connection, investment and the risks inherent in

working there.

Its time to shed light on the problems and opportunities.

AfrElec will launch in late April 2015. To receive a pre-launch discount offer and samples, please click here.

NEWSBASEv

If you are interested in your companys logo appearing on this page, please contact your Customer Accounts Manager on +44 131 478 7000.

Our customers include...

AsiaElec Week 19Indias coal reform effortsSolar comes of age in JapanThailands Global Power Synergy targets growth abroadNTPC to build 4,000-MW TPP in JharkhandHitachi unit to establish power plant service JV in ThailandBlack & Veatch selected for Vietnam power plant expansionStandard Chartered walks away from Adanis Carmichael projectChina cuts coal investmentAustralia to sell uranium to IndiaJapans ageing Mihama NPP moves closer to restartPhilippines bids on 21 geothermal, hydro sitesNews in Brief

asiaelec week 19

Documents