Showing posts with label pipelines. Show all posts
Showing posts with label pipelines. Show all posts

Monday, April 4, 2011

Energy Efficiency

Using energy more efficiently can reduce our energy needs by 20 per cent; it is a strategy we must pursue even as we promote renewables.

India needs to grow at 8-10 per cent for the next two decades if the country is to eliminate poverty. This will require our energy consumption to grow four- to five-fold. Our power capacity has to increase from around 170,000 Mw, including captive plants, to 800,000 Mw or 1,000,000 Mw by 2030. With the full development of hydropower, an optimistic nuclear development scenario and improved availability of natural gas, we will need around 500 million tones (mt) of oil products, 200 billion cubic metres (bcm) of gas and around 2,000 mt of coal by 2030. This compares with an oil consumption of 133 mt, gas consumption of 37 bcm and coal consumption of about 525 mt (Indian coal equivalent) in 2008. Even with the nuclear agreement, the nuclear capacity is not likely to reach more than 100,000 Mw by 2030. Our import dependence may grow as high as 90 per cent for oil, 30 per cent for gas and 30 per cent for coal. We can reduce this by promoting energy efficiency and renewable resources. 

Coal will remain our main energy source. It is generally believed that we have very little oil and gas, but large coal reserves. However, the currently known extractable coal reserves will run out in 45 years if our coal consumption keeps growing at 5 per cent per year, as it has in the past 25 years. Thus, it is important to promote energy efficiency, including in coal use. The growing threat of climate change also requires this.

The first task in saving energy is to increase the efficiency of electricity use. A unit saved at the consumer end saves 1.25 units of generation and saves further energy, as coal does not have to be transported. The Bureau of Energy Efficiency has taken a number of steps. An efficient lighting programme to replace incandescent bulbs by compact florescent lamps (CFLs), labelling of electrical equipment, a pilot programme to promote energy-efficient pumps for farmers, the launching of an energy conservation building code, standards and benchmarks for designated industries, etc, have been initiated. These will reduce energy, particularly electricity, consumption.

To get the full benefit from the labelling programme, public sector procurement officers should be enabled to purchase equipment based on life cycle cost instead of initial cost, without inviting Vigilance Commission investigation. The government should issue an order specifying the price preference that may be given to equipment with a higher star rating. Thus, for example, an air conditioner with a three-star rating that saves Rs 1,500 per year in electricity bills over a two-star-rated air conditioner, may be given a price preference of Rs 3,600, which is the present discounted value of savings over three years at a 12 per cent discount rate.
While economic incentives are important, setting energy efficiency standards for equipment can play a very important role. By periodically tightening standards, the average annual energy consumption of refrigerators in the US was brought down from 1,825 kwhr in 1974 to 476 kwhr by 2001. Such efficiency gains are even more important for us, as with an 8 per cent growth rate, we will nearly double our capital stock in nine years. Energy-using equipment and appliances will also spread rapidly. Thus, the manufacturers of equipment and appliances should be targeted to force the pace of improvement in energy efficiency.
Major opportunities also exist in cutting energy use in other areas.
n Increasing the efficiency of coal-based power plants: The fuel conversion efficiency of the existing population of thermal power stations is on average around 30 per cent. Super-critical boilers can provide an efficiency of 38-40 per cent. No new thermal power plant should be allowed without a certified fuel conversion efficiency of at least 38 per cent. The pace of efficiency improvement needs to be forced.
n Shifting freight traffic to railways: Improve railway service to win back the long-distance freight traffic carried by trucks today that consume five times as much diesel per net tonne kilometre of freight carried. The construction of dedicated freight corridors should be completed as soon as possible. Carrying 3,000 billion tonne kilometres (bt-km) of freight (half of the projected freight traffic in 2030) by rail instead of trucks can save approximately 50 mt of diesel per year. 
n Promoting urban mass transport: Promote urban mass transport by providing quality services which may be partially financed by imposing congestion, pollution and parking charges on those who use personalised motor transport. Plan for future mass transport corridors in smaller cities and acquire right-of-way. As the city grows, the permissible built-up area may be gradually increased. However, the additional right to build should remain with the local government, which it can auction to finance mass transport and other urban infrastructure.
n Increasing the fuel efficiency of vehicles: By promoting hybrid vehicles that are already available commercially internationally and flexi-fuel vehicles that can burn varying proportions of ethanol-blended fuels, we can improve efficiency by 20 per cent or more. Fuel efficiency standards should be imposed on vehicle manufacturers to force the pace.
Promoting renewable energy such as solar is critical for our long-term energy security. Presently commercially available solar photovoltaic cells of 15 per cent efficiency covering 10 million hectares can more than meet all our energy needs projected for 2030. The cost of solar electricity today is about Rs 20 per kwhr, compared to around Rs 4 at the consumer end from coal power. The solar mission to be launched has the target to make solar cost-competitive to coal power by 2020. 
There are, however, applications that use solar energy that are economical today that can reduce the need for energy from conventional sources. Solar water heaters are a case in point. With 50 million home water heaters we can save 95 billion units of electricity generation, which means a saving of 65 mt of coal.
We are short on fossil fuels. Energy efficiency can reduce our energy needs by 20 per cent and is a major resource that we must use even as we promote renewables. n

The author, a former member of the Planning Commission, is Chairman of Integrated Research and Action for Development (IRADe). E-mail: kparikh@irade.org

Wind energy in Asia

In 2010, for the first time ever, more new wind power capacity was installed in developing countries and emerging economies than in the traditional wind farm markets of the OECD.

This puts an end to the assertion that wind power is a premium technology only for rich countries which cannot be deployed at scale in other markets. It is also testament to the inherent attractiveness of wind power for countries striving to diversify their energy mix, improve their security of supply in the face of rapidly growing demand, and relieve national budgets of the burden of expensive fossil fuel imports at volatile prices. 

Environmental factors such as improving air quality and public health, and carbon reductions to fight against climate change also play an important role in many of these new markets. There is also a noticeable shift in attitudes towards wind turbines in many countries. While the technology would have been dismissed as too expensive by many developing country energy planners just a few years ago, the continuing success of the technology in an ever widening group of countries has changed that attitude to one of dramatically increased knowledge about wind farm generation and the role that it can play in a country’s power mix.

The growth of wind power outside of the OECD has been primarily driven by the continuing boom in China, which is now the country with the largest installed wind power capacity in the world. The Chinese government has a clear commitment to developing the country’s massive wind resource, partly driven by the need for increasing its power generation capacity to fuel a growing economy and to spur rural economic development. 

Furthermore, the Chinese government is committed to slowing down the country’s increasing greenhouse gas emissions and reducing air pollution. This political commitment was underpinned by favourable policies to boost wind power development, and this has led to exceptional growth in this sector. After four years of doubling its installed wind farm capacity from 2006-2009, a record capacity of 16.5 GW was added to the Chinese wind fleet in 2010, taking the total up to 42.3 GW. 

Wind power now represents nearly a fifth of all yearly net power generation capacity additions in China, nearly on par with hydro. Beyond wind power’s environmental and energy security benefits, the Chinese government also recognises the economic opportunity of building a strong domestic manufacturing base. 

In 2009, out of the world’s top ten wind turbine manufacturers, three were Chinese (Sinovel, Goldwind and Datang), and annual domestic production capacity is now at least 30 GW. Chinese manufacturers are increasingly looking at international markets, and it is expected that Chinese wind turbines will soon be fully competing in the global market place. 

A similar picture is emerging in India, albeit on a smaller scale. A rapidly growing economy and expanding population create a growing demand for power, and supply struggles to keep up with demand. Electricity shortages are common, and a significant part of the population has no access to electricity at all. In order to address this problem, the Indian government created a target of an additional 78.7 GW of generation capacity from 2007-2012, 10.5 GW of which will be new wind generation capacity. 

The Indian Ministry of New and Renewable Energy (MNRE) estimates that there is a potential of 48.5 GW of wind power development, but industry experts estimate that a minimum of 100 GW could be realised in India. At the end of 2010, India had 13.1 GW of installed wind capacity, with 40% operating in the southern state of Tamil Nadu.

Like in China, India’s wind power development has spurred domestic manufacturing, and the Indian company Suzlon is now a global leader. 17 companies now manufacture wind turbines equipment in India, with a production capacity of 7.5 GW per year. Thanks to new market entrants, it is expected that this will rise to 17 GW or more by 2013, according to the World Institute for Sustainable Energy (WISE). Wind turbines and turbine blades made in India have been exported to the USA, Europe, Australia, China and Brazil. 

While wind markets in the rest of Asia are only at the early stages of development, there is considerable potential and some promising signs. Across the region there are at least a dozen vibrant and rapidly growing economies in which wind energy could play a significant role, and there is increasing interest in the technology from policymakers and utility executives.

While wind energy in South Korea is still in its infancy, the Korean government recently introduced a Renewable Portfolio Standard (RPS) scheme and set an ambitious target of developing 2.5 GW of offshore wind power by 2020. Several Korean heavy manufacturers such as Samsung, Hyundai and Daewoo have started to include wind turbines in their portfolio in order to compete both domestically and in the international marketplace. In 2010, installed wind farm capacity increased by 30 MW to reach 379 MW. 

In the Philippines, 33 MW of wind power are currently operating, but the technical potential is estimated at around 55 GW, over three times the country’s current total installed generation capacity, according to UNEP’s Solar and Wind Resource Assessment (SWERA). The government has set a target for 40% of its electricity to be generated by renewable sources by 2020, up from the current 33%. Both the Philippines government and the Asian Development Bank (ADB) have set up funds to help with this process.

Vietnam has 18 MW of operating wind power capacity, but strong winds could support 642 GW of wind energy development, according to SWERA. In addition, Vietnam has a fast-growing economy and a growing demand for electric power. The Vietnamese government is aiming for renewable power to provide about 5% of the nation’s electricity by 2020. Investor interest in the Vietnamese wind market is
considerable, and various wind power projects are reported to be in the pipeline.

Thailand’s growing affluence has led to a startling rise in per capita electricity consumption, which has grown by almost 25% in the past five years. An estimated 30.2 GW of new generation capacity will be needed by 2021. The government has announced a target of increasing the share of renewable energy from 6.4% in 2008 to 20% in 2022, with an 800 MW target for wind farm capacity. According to SWERA, Thailand’s technical wind resource could support the development of 190 GW of wind power.

Prosperous Taiwan imports 98% of its fuel needs, and has set a target for renewables to meet 10% of its electricity by 2010, up from 5.8% currently. Wind power is expected to meet 80% of that, and a feed-in tariff was introduced in 2009. During 2010, Taiwan installed 83 MW of new wind power, bringing its total to 519 MW.

In Pakistan, the far-reaching implications of the flood disaster of 2010 on infrastructure in general, and the power infrastructure specifically, have worsened the supply situation and led to acute power shortage. Most of the country’s power needs to date are met by fossil fuels. To support the addition of renewable capacity, the Asian Development Bank set up a 510 million USD financing facility in 2006, and a feed-in tariff was introduced. 

In addition, USAID is co-funding a public-private partnership to develop a 150 MW wind project in the Gharo Corridor. The potential for wind power is estimated to be around 350 GW, according to both the Pakistani government and SWERA.

Other countries in the region have also set ambitious targets for wind power development, but this has not always been followed up by the introduction of effective policy frameworks. Bangladesh, for example, has set a target of reaching 5% of its electricity to come from renewables by 2015; Mongolia plans to increase its share of renewable electricity from the current 3% to 20–25% by 2020; Sri Lanka wants to go from the current 5% to reach 10% by 2017 and 14.1% by 2022, and Indonesia is planning to build 255 MW of wind capacity by 2025.



Thursday, March 10, 2011

Jamna Auto mulls new facilities at Hosur, Chennai

Jamna Auto Industries Ltd plans to set up two new manufacturing units for parabolic springs at Hosur in Karnataka and air-suspension springs at Chennai in Tamil Nadu. Both the plants are being set up at a project cost of Rs 80 crore. 

The Hosur facility with an annual capacity of 36,000 MTs is expected to be operational by December 2011. The company has planned capacity expansion at Hosur to meet the demand of major commercial vehicle manufacturers - Daimler India, Renault-Nissan, Leyland-Nissan & Ashok Leyland. Tata Motors’ requirement of parabolic springs is being met from the company's Malanpur plant.

The greenfield plant at Chennai will manufacture Air suspension, bogey suspension and lift axles in technical collaboration with Ridewell Corporation of USA. The company has acquired the land and prototypes developed are undergoing rigorous trial. Air suspensions are being increasingly used in low floor buses. The plant will commence commercial production from July 2011.

Franke Faber plans greenfield plant

Franke Faber India Ltd (FFIL), a wholly owned subsidiary of Franke Artemis group of Switzerland, is setting up a greenfield unit at Sanaswadi near Pune, Maharashtra to manufacture kitchen chimneys and hobs. The unit, with an installed capacity to manufacture 5 lakh hoods, 3 lakh hobs & one lakh other appliances, will be set up with an investment Rs 50 crore over a three year period. The first phase of the factory will be completed by December 2011 and production is expected to commence in January 2012. The factory will use latest technology and will be an export hub for Asia and Middle East countries.

Wednesday, March 9, 2011

Cairn, consortium to drill in Ravva field

Cairn India and its joint venture partners ONGC, Videocon Petroleum & Marubeni-controlled Ravva Oil propose to undertake a USD 44 million drilling campaign in the eastern offshore Ravva field of the Krishna-Godavari Basin from April 2011. The consortia have completed a 4D seismic campaign in the acreage and data interpretation is underway to identify bypassed oil zones. However, the quantum of oil or gas that can be further recovered were not known. The consortium also plans to drill two new ''infill'' wells and ''workover'' two old Ravva wells by March, 2012. The infill drilling campaign is aimed at augmenting production. 

According Cairn, the average gross production from the 331.26-sq km Ravva field in Q3, FY2010-11, was 39,434 barrels of oil equivalent per day, comprising average oil production of 29,667 barrels per day and average gas production of 59 million standard cubic feet per day. Cairn India is the operator of the Ravva field with a 22.5 per cent stake, while Videocon holds 25 per cent, ONGC 40 per cent and Marubeni-owned Ravva Oil holds a 12.5 per cent participating interest. 

Cairn's Bhagyam oil field, the second biggest oil field in the Rajasthan block, is set to commence production in second half of 2011, taking the total output to 1,75,000 barrel per day.

Vietnam urged to ensure support for wind energy


Deputy Prime Minister Hoang Trung Hai has instructed the Ministry of Industry and Trade to complete policies to support wind power projects in Vietnam and set up favourable conditions for investors in wind turbines.
Vietnam urged to ensure support for wind energyAt a meeting of the ministry in Ha Noi yesterday, Hai said the application of wind power in Viet Nam was in the early stage. He said the installed wind power capacity in Viet Nam was estimated to be 9 Megawatt (MW), 7.5MW of which had been connected to the national grid. The remainder were household wind turbines.

He said the wind potential in Viet Nam had not been fully tapped due to difficulties in geographical conditions, technology and high and fluctuating development costs.

The highest level of development costs was US$2.77 million per MW while the lowest was only $1.77 million per MW; the average investment to produce 1MW was US$2.2 million.

To date, there were 21 wind farm projects under way that could produce enough electricity to connect to the grid. Those wind farm projects were centred in the central provinces of Binh Thuan, Ninh Thuan, Binh Thuan and Lam Dong. Hai said the licence granting procedure was still spontaneous and unplanned.

Hai requested that the new policy mechanisms had to clearly specify preferential treatment to help investors develop feasible wind farm projects. There should be policies to subsidise electricity, tax and land fees, notably the establishment of a renewable energies support fund.

A new mechanism should create a consistent legal framework for wind power in particular and renewable energy in general to act as a foundation for localities to refer to when faced with new wind farm project proposals.

Thursday, March 3, 2011

DHL to set up more FTW zones in India

DHL Global Forwarding, the freight forwarding division of DHL, plans to invest around 90 crore ($20 million) over the next two years on setting up more free trade warehousing zones in India. DHL is scouting for large multiuser facilities along the trunk routes. Mumbai, Chennai, Bengaluru and Delhi are slated to be among the first cities to have these large warehouses. 

As of now, the company has selected Mumbai and Delhi to set up the new FTWZ. The Mumbai facility, expected to come up near JNPT, is likely to attract an investment of 45 crore ($10 million) and be operational by December 2011. The Delhi FTWZ will be located close to the Haryana-Punjab border. It will entail a similar investment and is expected to commence operations by 2012. 

In May 2010, DHL had announced the setting up its first free trade warehousing zone at Sriperumbudur in Tamil Nadu, which is expected to be operational in January 2011. The FTWZ, spread across 1.50 lakh sq. ft, will cater to multiple industries including automobile, engineering and manufacturing. This FTWZ will have a dedicated life science hub to service transit cargo as well as inbound and outbound domestic needs. It is expected to be operational by mid-2011.

India and Finland cement cooperation in clean technologies

The Government of Finland has expressed its desire to strengthen ties with India in clean technology development. At the occasion of the Delhi Sustainable Development Summit in the Capital, Ms. Paula Lehtomaki, Minister of the Environment of Finland stated that Clean technologies lead the way for stronger ties between India and Finland and an increasing number of Finnish companies are leaping at the opportunities India has to offer. She attended the conference together with a delegation of Cleantech Finland comprising of leading Finnish companies engaged in clean technologies. 

“The global challenges we are facing today can be turned into opportunities with the right technologies and know-how. What is needed is enhanced cooperation and sharing of knowledge,” said Ms. Lehtomaki at a press conference organised by Cleantech Finland where Finnish companies discussed how Finnish technologies can contribute to creating a green economy. “Green economy is essentially about integrating environmental aspects into all sectors of the society - and simultaneously boosting economic growth by, for example, creating new green jobs. The rapid development and introduction of clean technologies has a crucial role in creating a green economy,” she added. 

Clean technology has become a driver for India-Finland economic and innovation cooperation. Finnish cleantech companies explore various business opportunities in India’s booming market while strengthening their cooperation with local companies. Key focus areas are water and energy. According to the Finnish experts, Finnish cleantech expertise can strongly contribute to the economic, social and environmental development of India. 

Kemira Oyj, a world leader in water chemicals, and the Promoters of IVRCL have agreed to form a joint venture in India. In addition, Kemira, Hindustan Dorr-Oliver (HDO) and IVRCL are forming a strategic alliance to serve Indian water treatment markets. IVRCL and HDO are leading water infrastructure companies in India. Kemira’s estimation is that the Indian market potential relevant to the company is approximately USD 300 million. 

“This cooperation is well-aligned with Kemira’s strategy to grow profitably in India. Through this cooperation Kemira will have a strong manufacturing base in India and an opportunity to broaden our business. Combining Kemira’s water chemistry know-how and IVRCL’s expertise in building water infrastructure we are able to meet the rapidly growing water demand,” says Hannu Virolainen, Senior Vice President, Industrial customer segment, Kemira Oyj. 

The Switch, a leading supplier of wind power and new energy applications, who entered the Indian market in 2010 regards India’s growing wind and solar power market highly attractive. “Through the recent deal signed by Chinese Dongfang Electric and KSK Energy of India, The Switch will be contributing to the export of 166 1.5MW permanent magnetic direct-drive wind turbines to India by providing technology and key components. We are already also finalizing contracts with Indian manufacturers. We intend to be the partner of choice to our Indian customers and help them to develop the country’s vast potential for clean energy,” says Pertti Kurttila, VP, Supply at The Switch.

Saturday, February 26, 2011

Capacity addition failure haunts NTPC

The power ministry has asked NTPC Ltd to add 5,000 megawatt (MW) capacity annually from next year. For now, it seems like a pipe dream.

Also See | Keeping Pace (PDF)

That number is a tad less than the approximately 6,000MW it has added since fiscal 2008. In the past couple of years, the firm’s execution record has been poor. Take the 11th Plan (fiscal 2008-2012), during which NTPC was expected to add some 22,400MW. Even if it installs 5,000MW in the year to April 2012, it will have fallen some 50% short of its target.

Yet, for a company that enjoys regulated 15.5% return on equity (RoE), it is capacity addition that will make it more attractive for investors.

The delay in building new factories is roughing up its profits as well. For the quarter ended December, NTPC’s power generation grew by a measly 0.2% from a year ago. Grid problems and the parlous finances of state electricity boards, its main consumers, also meant that some of them could not take delivery of contracted power. As a result, energy units actually delivered rose 0.8%. However, revenue grew 20% from a year ago. This was due to a 23% rise in fuel costs (a pass through in the assured RoE model), due to a price hike by main supplier Coal India Ltd at the end of December 2009.

A rise in employee and other costs means that earnings before interest, tax, depreciation and amortization grew 10%. Higher taxes (moving to minimum alternate tax due to an increase in RoE) have also hit the profits and net profit grew 0.3% from a year ago. Shorn of some one-offs, such as prior period sales, the new tax norms and a change in depreciation policy, the adjusted profit after tax shows a growth of 11%, in line with estimates.

But that isn’t overly impressive. Many brokerages have cut down their earnings estimates for the next two years. That, coupled with the execution track record, has meant that investors are not very gung-ho about NTPC. For a stock that is considered a defensive bet, its returns mirror those of the Sensex since the beginning of this year. The numbers are more telling since the firm declared its results. Since then, NTPC has underperformed the benchmark index by 7.5%.

Friday, February 25, 2011

Wind power India 2011 to chart roadmap for additional 50 GW by 2020

Wind energy which has witnessed a phenomenal growth in India over the past few years. The country’s current cumulative installed wind farm capacity is 13 GW (as on Dec 2010), reaching 64 GW by 2020.

The National Action Plan on Climate Change (NAPCC) announced in June 2008 by the Govt. of India proposes increasing the share of renewable energy in the total energy mix to 15% by 2020. In order to achieve this, NAPCC recommends pegging the minimum share of renewable energy in the national grid at 5%, starting from 2009-10, to be increased by 1% per annum in the following years so as to reach 15% by 2020.

‘WIND POWER INDIA 2011’ TO CHART ROADMAP FOR ADDITIONAL 50 GW BY 2020 Chennai, 24 February 2011 

The National Action Plan on Climate Change (NAPCC) announced in June 2008 by the Govt. of India proposes increasing the share of renewable energy in the total energy mix to 15% by 2020. In order to achieve this, NAPCC recommends pegging the minimum share of renewable energy in the national grid at 5%, starting from 2009-10, to be increased by 1% per annum in the following years so as to reach 15% by 2020. 

This requires a quantum jump in renewable energy generation across the country. Wind energy which has witnessed a phenomenal growth in India over the past few years could make a significant contribution towards the shift to a low-carbon and energy secure future. 

The country’s current cumulative installed wind farm capacity is 13 GW (as on Dec 2010), reaching 64 GW by 2020 (as per GWEC estimates). The current annual wind power market is about 2200 MW with forecasts predicting a 5000 MW annual market by 2015 (research done by the World Institute of Sustainable Energy). As per NAPCC, if India needs to achieve 15% RE by 2020, wind’s contribution to the total energy mix would need to transcend even greater heights, requiring an additional installed capacity of almost 50 GW by 2020, over and above the present level! 

This poses several challenges for policy makers and regulators, and wind industry stakeholders in India, who would need to rise up to the occasion and develop suitable strategies, policies and regulations to meet the NAPCC target. This includes a major focus on augmenting the power evacuation/grid facilities and transmission planning, availability of non-recourse project financing and skilled manpower, speedy and appropriate implementation of the latest policy/regulatory measures such as renewable energy certificates (RECs) [linked with state-specific renewable purchase specification (RPS) with penal provisions for non-compliance], the Indian Electricity Grid Code (IEGC) 2010, etc.

To understand, deliberate and discuss all these critical issues and challenges related to the role of wind power in attaining the 50 GW mark by 2020, the World Institute of Sustainable Energy (WISE), Pune, in association with the Global Wind Energy Council (GWEC), and the Indian Wind Turbine Manufacturers’ Association (IWTMA) is organising WIND POWER INDIA 2011 from 7–9 April 2011 at the Chennai Trade Centre, Chennai. 

The event would witness the presence of 1000+ delegates, around 100 exhibitors and nearly 100+ renowned speakers from the national and international wind industry. The opening day of the conference is highlighted by the main panel discussion on the role that wind power would play in achieving the 15% RE target by 2020. The theme paper on the subject would be presented by G M Pillai, Founder Director General, WISE, and the panel discussion on the topic would feature distinguished personalities including V P Raja, Chairperson, Maharashtra Electricity Regulatory Commission (MERC); Jan Declercq, Chief Business Development Officer, CG Power, Belgium; and Jose Donoso, Director–Business Development, Gamesa, and President, Spanish Wind Energy Association. 

Some other major distinguished speakers who would be present at the conference include, Hans Jorgen Koch, Dy. Secretary of State, Danish Energy Agency; Steve Sawyer, Secretary General, Global Wind Energy Council (GWEC), Belgium; Dr Klaus Rave, Chairperson, GWEC; Christian Kjaer, CEO, European Wind Energy Association (EWEA), Belgium; Stephen Miner, Sr. Vice President, American Wind Energy Association (AWEA), Dr Andrew Garrad, CEO, GL-Garrad Hassan, UK; Deepak Gupta, Secretary, Ministry of New and Renewable Energy (MNRE), Govt. of India; and Dr Pramod Deo, Chairperson, Central Electricity Regulatory Commission, New Delhi. 

The opening day would also feature the CEO’s Forum, wherein chieftains of the wind industry would congregate on one single dais to discuss wind power development in south and south-east Asia. In addition, the conference would also focus on issues related to the role of wind power in climate mitigation; policy, regulation and market development of wind; technology, project development and operation of wind. 

The official side event, a ‘One-day conference on Small Wind Power’—aimed at tapping the huge opportunities for expansion of the small wind and hybrid market in the country—would be organised on 8 April 2011. The main objective of the side-event is to demystify the small wind and hybrid sector so as to increase transparency, infuse investor confidence, and overall, change the dynamism of the ‘small’ wind market into a ‘big’ investment opportunity. 

The conference would also feature Knowledge Fora—a series of official side events comprising customised business meets and workshops offering unique networking opportunities. Under the Business to Business meet format, select suppliers and service providers will have the opportunity to present cost optimisation opportunities and strategies, customised business proposals, technology updates, product ranges, and service solutions in their area of specialisation in the wind industry. 

The topics for the fora include: Structuring optimization: wind turbine tower and hub; Gearing up: mechanical drive train; Generating savings: wind turbine electricals, electronics and services; Wind power forecasting in India; and Design, testing and certification of wind turbines. A major highlight of the conference would be the presentation of ‘Wind India Awards’. 

These awards are an initiative of WISE and were first instituted during WIND INDIA 2006 in Pune. The awards are recognition of the contributions made by the Indian wind industry and associated stakeholders in shaping a ‘clean and green India’, and would be presented in 17 different categories for the FY 2008–09 to 2009–10. The major categories include ‘Best capacity addition by manufacturer’; ‘Best service provider among manufacturers’; ‘Best O&M independent service provider’; Best performing wind turbine’; ‘Best wind power developer state’; “Best wind power project financier’, Best media report/publication on wind power, etc., including select awards for the small wind and hybrid sector in India. For more information on the conference and exhibition, you may visit the conference website www.windpowerindia.in or email to info@windpowerindia.in

WISE The World Institute of Sustainable Energy (WISE) is a not-for-profit institute committed to the cause of promoting sustainable energy and sustainable development, with specific emphasis on issues related to renewable energy, energy security and climate change. Since its inception in 2004, WISE has pioneered many important initiatives. 

Some of these include, piloting a model Renewable Energy Law for India, proposing a roadmap for generation-based incentives (GBI) for wind and solar power, developing state-level action plans for clean energy technologies, etc. Website:www.wisein.org

GWEC The Global Wind Energy Council (GWEC) is the credible and representative forum for the entire wind energy sector at the international level. With a combined membership of over 1,500 organisations, GWEC’s member associations represent the entire wind energy community. GWEC’s mission is to ensure that wind power establishes itself as one of the world’s leading energy sources, providing substantial environmental and economic benefits. www.gwec.net

The Indian Wind Turbine Manufacturers’ Association (IWTMA) is the only body representing the country’s wind turbine manufacturers, providing a single contact point for policy makers, regulators and utilities at the national and state level. IWTMA’s main objective is to promote wind energy in India, facilitate the extension of knowledge in the field and interact with national and global energy bodies. IWTMA is a founding member of the Global Wind Energy Council (GWEC) alongside other national and regional associations.

Source:-

Wednesday, February 23, 2011

Malaysia Keen On India's Wind Power Technology


Malaysia is in talks with Indian wind turbines scientists and is likely to link up with the Centre for Wind Energy Technology (C-WET) for technical expertise to harness the alternative energy.

Malaysia Keen On India's Wind Power TechnologyVisiting Malaysian Minister of Science, Technology and Innovation Datuk Seri Dr Maximus Ongkili said India has a world standard advanced wind energy development programme which Malaysia could tap into.

"It's a new field for us and we are exploring this field. I see the technology coming out from India is as good as anywhere in the world.

"We are going to tap this technology and link up with C-WET," he told Bernama. Dr Maximus is leading a delegation to India and Bangladesh to seek possible technical tie-ups with local institutions in the renewable energy, communications and telecommunication technology fields.

C-Wet, under India's New and Renewable Energy Ministry, is a major centre for wind energy development to enable India achieve self-reliance in the power sector.

Currently, India is ranked world's fifth largest wind energy producer, with nearly 13,000 megawatts installed capacity and generates about 1.6 per cent of the nation's power capacity.

On Saturday, the Malaysian delegation visited Villgro Innovations Foundation, an innovative technology provider at the Indian Institute of Technology (IIT) in Madras Research Park.

They also visited the M.S. Swaminathan Research Foundation, another prominent centre that promotes sustainable agriculture and rural development.

Pakistan wind power resources potential at 350,000 MW


Pakistan can generate over 350,000 MW electricity through only wind energy against the countrys total demand of about 21,000 MW peak summer, necessitating solid steps to explore the potential.
Pakistan wind power resources potential at 350,000 MW
Official sources in Alternative Energy Development Board (AEDB) told reporter that the countrys has numerous resources to get energy and over 50,000 MW energy could be generated only in Gharo-Keti Bandar corridor where average wind speed is more than seven meter per second. 

They said the corridor has potential twice of India and other sites in Balochistan, Punjab, and Northern Area which are being identified for power generation. The sources said Pakistan has amongst the world highest and fastest rising urbanization and electricity is available to only 57 per cent of the population while natural gas to 21 per cent. Only 45 per cent of rural population have access to grid electricity and there is extreme shortage of electricity and gas leading to load shedding. 

The countrys economic growth is also suffering due to load shedding of gas and power, leading to closures of industries, they added. They said the total installed and dependable capacity of the countrys power sector is 20,231 MW. Giving breakup, they said 11,735 MW could be get from public sector while 8,496 MW from private sector. 

By switching to alternative energy means, we can reduce dependence on imported oil, running into billions dollars and undermining economic development, they observed. It is pertinent to mention that USA has wind power installed capacity of 25,170 MW, Japan 1,880 MW, India 9,645 MW, Greece 985 MW, Egypt 365 MW, Iran 85 and Pakistan 6 MW. The government had set up AEDB in 2003 for implementing policies programmes and projects through private sector in the field of alternative energy.

Wednesday, February 16, 2011

FirstEnergy and AMP enter talks on sale of 707 MW electric power plant

FirstEnergy Corp. entered into a non-binding Memorandum of Understanding for the sale of its 707 MW natural gas-fired Fremont Energy Center in Fremont, Ohio, to American Municipal Power Inc.

The companies will negotiate a definitive agreement by March 11, 2011 for AMP to buy the facility on or about July 1, 2011.

Fremont Energy Center is a combined cycle generation plant owned by FirstEnergy unit FirstEnergy Generation Corp. The plant is under construction and scheduled to be complete in 2011. The plant includes two natural gas turbines and a steam turbine capable of producing 544 MW of load following capacity and 163 MW of peaking capacity.

FirstEnergy acquired the partially complete plant in January 2008 from Calpine Corp. for $254 million in that company’s bankruptcy proceeding. FirstEnergy said the proposed sale is consistent with FirstEnergy’s current efforts to divest non-strategic assets and use the proceeds to provide the company with additional financial strength and flexibility.

Read more news and features on the business of power generation.

Monday, February 14, 2011

India is fifth largest wind power producer

Asia leads the growth in global wind power, which grew 35.8 GW in 2010 bringing total wind farm capacity to 194.4 GW – up 22.5% from 2009, the Global Wind Energy Council (GWEC) says.Commerce and Industry Minister Anand Sharma said that India is today fifth largest wind energy producer in the world and 8th in terms of investments made in clean energy technologies.


Inaugurating 7th edition of Eco-Products International Fair (EPIF 2011) and 19th International Engineering Trade Fair (IETF), Sharma informed that globally, investments in clean energy have growth by as much as 230 per cent in the last four years and are touching 200 billion dollar.

"Within the manufacturing sector, we need to pay special focus to the development of green technologies which will be one of the dominant themes over the next two decades, providing both challenges of adaptation and opportunities of growth for manufacturing," he added.

Sharma said that if we look at the overall scenario of engineering exports, we are one of the fastest growing exports in the world at nearly 30 per cent, well above the global average of 13 percent.

"The engineering exports are already touching 40 billion dollar and I expect that it should be nearly 50 billion dollart his year. We have remained mindful of the fact that we need to align government policies with the ambitious target of tripling India's engineering exports of 120 billion dollar by 2015", the Minister added.

Sharma also informed that India is making a major contribution in the growth of manufacturing and high-value engineering and added that this decade will be particularly significant in the development and growth of this sector even as the global focus shifts on clean energy technologies and processes.

"It is indeed appropriate that the Eco-Product International Fair which focuses especially on green productivity for sustainable energy is being organised as a concurrent event within the ambit of International Engineering and Technology Fair," he said.

"This becomes important and relevant in contemporary times as the world is grappling with the challenge of finding a new model for sustainable development new solutions for and addressing the issue of energy security and climate change in ensuring that we continue to grow on a low carbon growth path", he added.

Asia leads the growth in global wind power, which grew 35.8 GW in 2010 bringing total wind farm capacity to 194.4 GW – up 22.5% from 2009, the Global Wind Energy Council (GWEC) says.

Global wind energy installations increased by 35.8 GW in 2010. Wind farm capacity up to 194.4 GW, a 22.5% increase on the 158.7 GW wind turbines installed at the end of 2009. This brings total installed wind energy capacity up to 194.4 GW, a 22.5% increase on the 158.7 GW wind farm installed at the end of 2009. The new capacity added in 2010 represents investments worth EUR 47.3 billion (US Dollars 65 bn).

For the first time in 2010, more than half of all new wind power was added outside of the traditional markets in Europe and North America. This was mainly driven by the continuing boom in China, which accounted for nearly half the new wind installations (16.5 GW).

“China now has 42.3 GW of wind power, and has surpassed the US in terms of total installed capacity,” said Li Junfeng, Secretary General of the Chinese Renewable Energy Industry Association (CREIA). “This puts China firmly on a path to reach 200 GW of installed wind power by 2020. At the same time, China has become the world’s largest producer of wind energy equipment.”

But other developing countries also expanded their wind capacity, including India, which added 2.1 GW in 2010, Brazil (326 MW), Mexico (316 MW), and 213 MW were installed in North Africa (Egypt, Morocco and Tunisia).

“Wind power is now rapidly expanding beyond the traditional ‘rich country’ markets, a clear sign of its growing competitiveness,” said Steve Sawyer, GWEC’s Secretary General. “This is a trend we are expecting to see developing further in the future, not only in Asia. We are also seeing encouraging signs in Latin America, especially Brazil and Mexico, and in both Northern and Sub-Saharan Africa.”

Overall, however, the annual 2010 wind market was down for the first time in 20 years, shrinking by 7% from 38.6 GW in 2009, mainly due to a disappointing year in the US, as well as a slowdown in Europe. This was a result of the financial crisis, low levels of wind turbines orders working their way through the system, a depressed OECD electricity demand, as well as policy uncertainty in the US.

The US, traditionally one of the strongest wind markets, saw its annual installations drop by 50% from 10 GW in 2009 to just over 5 GW in 2010.

"Our industry continues to endure a boom-bust cycle because of the lack of long-term, predictable federal policies, in contrast to the permanent entitlements that fossil fuels have enjoyed for 90 years or more,” said Denise Bode, CEO of the American Wind Energy Association. ”Now that we're competing with natural gas on cost, we need consistent federal policies to ensure we have a diverse portfolio of energy sources in this country."

In Europe also, new installed capacity in 2010 (9.9 GW) was 7.5% down on 2009 (10.7 GW), despite a 50% growth of the offshore market in countries like the UK, Denmark and Belgium, and new developments in Eastern Europe, mainly in Romania, Bulgaria and Poland.

"These figures are a warning that we cannot take for granted the continued financing of renewable energy" said Christian Kjaer. "Better access to financing is urgently needed, and the European Union must act without delay to prevent Europe losing its leadership in wind power and other renewable technologies.

“2010 was a tough year for most industries, and wind power was no exception,” concluded Steve Sawyer. “2011 will be better. Orders picked up again in the second half of 2010, and investments in the sector continue to increase.”

9.3 gigawatt (GW) of new wind power capacity was installed in the EU during 2010, reaching a total of 84 GW by the end of 2010, according to figures released by the European Wind Energy Association (EWEA) and coinciding with today's publication by the European Commission on financing renewable energy.

While offshore wind power installations grew 51% from 582 MW in 2009 to 883 MW last year, onshore wind power installations (8.4 GW) were down 13.9% compared to 2009 (9.7 GW).

"These figures are a warning that we cannot take for granted the continued financing of renewable energy" said Christian Kjaer. "Better access to financing is urgently needed, and the European Union must act without delay to prevent Europe losing its leadership in wind power and other renewable technologies. Today's communication from the Commission on the financing of renewables is a start, as long as it is followed up quickly by the Commission putting its proposals into action."

Total investments in new wind power plant was unchanged at € 13 billion, compared to 2009, due to the larger share of offshore wind capacity.

Newly installed capacity in 2010 (9.3 GW) was 10% down on 2009 (10.3 GW).

"Remarkable growth in the onshore wind markets of Romania, Poland and Bulgaria could not make up for the decline in new onshore installations in Spain, Germany and the UK. Strong development of the offshore wind market was led by the UK, Denmark and Belgium," said Christian Kjaer, Chief Executive Officer of EWEA.

The overall market for renewable power capacity, including wind, solar, hydro and biomass, reached record levels in 2010, increasing 31% from 17.5 GW in 2009 to 22.6 GW in 2010. Renewable energy accounted for 41% of all new installations.

Wind power installations accounted for 17% of new electricity generating capacity in 2010, the first year since 2007 that the EU did not install more wind power than any other generating technology. The EU continues to move away from fuel oil and nuclear power for electricity production, decommissioning more old capacity than installing new capacity. However, for only the second time since 1998, the EU installed more coal power capacity than it decommissioned in 2010. 28 GW of new gas capacity was installed last year, compared to 6.6 GW in 2009. Gas represented 51% of all new power capacity in 2010.

The wind power capacity installed by the end of 2010 will, in a normal wind year, produce 181 TWh of electricity (up from 163 TWh), meeting 5.3% of overall EU electricity consumption (4.8% in 2009).

With 308 new offshore wind turbines installed in 2010 - an increase of 51% in installed wind power capacity on the previous year - offshore wind power experienced a new record growth in Europe.

In total, 883 Megawatt (MW) of new capacity, worth some €2.6 billion, were installed in 2010 in nine wind farms in five countries, making a total of 2,964 MW.

The installed offshore wind power capacity now supplies the equivalent of 2.9 million average EU households with electricity –comparable with the amounts of power consumed by the cities Berlin and Brussels together – from a total of 1,136 offshore wind turbines. In a normal wind year they would produce 11.5 Terawatt hours (TWh) of electricity.

These figures are published by the European Wind Energy Association (EWEA) in its “European offshore wind industry - key trends and statistics 2010” today in Brussels.

They show the United Kingdom to be European (and world) leader, with a total installed offshore wind capacity of 1,341 Megawatt (MW). The UK is followed by Denmark (854 MW), The Netherlands (249 MW), Belgium (195 MW), Sweden (164 MW), Germany (92 MW), Ireland (25 MW), Finland (26 MW) and Norway with 2.3 MW.

EWEA’s Chief Executive, Christian Kjaer commented: “With over 50% percent market growth, 2010 sets a new record for European offshore wind energy. Meanwhile, the 29 new offshore turbine models announced during 2010 show a growing commitment to the offshore wind energy sector by large, global industrial players, offering a real boost for Europe’s economy, its efforts to tackle climate change, create green jobs and exports while reducing our dependence on imported fuel”.

During 2010, 29 new offshore turbine models were announced by 21 manufacturers: 44 new turbine models have been announced by 33 manufacturers over the last two years.

2010 saw an improving financing environment with private banks, financial institutions like the European Investment Bank (EIB), utilities and pension funds backing the sector. Two major deals completed in 2010 highlighted the brighter financial outlook: Thornton Bank C-Power and Trianel Wind Farm Borkum West both came to financial close.

“Finance remains a big challenge but we are seeing improvements with more banks and other financing institutions ready to invest in large offshore wind projects,” commented Kjaer.

EWEA forecasts continued strong growth next year. Between 1,000 and 1,500 MW of new offshore wind power capacity is expected to be fully grid connected in Europe during 2011, compared with 883 MW of new capacity in 2010.

Ten European wind farms are currently under construction with a total of 3,000 MW – these will more than double the installed capacity in the 45 already grid connected offshore wind farms.

EWEA research shows that a total of 19,000 MW of offshore wind capacity is already fully consented. If constructed, it would generate 66.6 Terawatt hours of electricity in a normal wind year - enough to supply 14 of the largest capitals in Europe with electricity, including Paris, London and Berlin. Not included in this figure is large additional offshore wind energy capacity planned but not yet fully consented in the UK.

U.S. wind energy industry finishes 2010 with half the installations of 2009, activity up in 2011, now cost-competitive with natural gas

Industry weathers latest boom-bust cycle as utilities move to lock in more wind power at favorable long-term rates

Washington, D.C. - America's wind industry built 5,115 megawatts of wind power last year, barely half of 2009's record pace, but entered 2011 with over 5,600 megawatts currently under construction - and with wind cost-competitive with natural gas for new electric generation, utilities are moving to lock in favorable rates.

"Wind power is a great deal right now in many areas of the country," said Denise Bode, CEO of the American Wind Energy Association (AWEA). "However, our industry continues to endure a boom-bust cycle because of the lack of long-term, predictable federal policies, in contrast to the permanent entitlements that fossil fuels have enjoyed for 90 years or more.

"Now that we're competing with natural gas on cost, we need consistent federal policies to ensure we have a diverse portfolio of energy sources in this country, and don't become overreliant on one source or another."

AWEA reported today that 3,195 megawatts (MW) of wind-powered electric generating capacity came online in the fourth quarter of 2010. That performance was below the 4,113 MW installed in the same period in 2009, but a leap from the third quarter of 2010, when only 670 MW were installed. The U.S. finished the year with a total of 5,115 MW of new wind power.

Buoyed by a one-year extension of the 1603 Investment Tax Credit for renewable energy in the final days of the 111th Congress, the industry entered the new year with over 5,600 MW of electric power currently under construction, well above the same time a year earlier. Further projects are expected to start up in time to meet the new construction deadline for the tax credit, now set to expire at the end of 2011. The industry is likely to finish 2011 ahead of 2010 numbers, according to Elizabeth Salerno, AWEA Director of Industry Data & Analysis.

"Wind's costs have dropped over the past two years, with power purchase agreements being signed in the range of 5 to 6 cents per kilowatt-hour recently." Salerno said. "With uncertainty around natural gas and power prices as the economy recovers, wind's long-term price stability is even more valued. We expect that utilities will move to lock in more wind contracts, given the cost-competitive nature of wind in today's market."

Total U.S. wind capacity now stands at 40,180 MW, an increase in capacity of 15% over the start of 2010, AWEA reported today. For the first time, U.S. capacity fell second to China's; China now has 41,800 MW in operation, an increase of 62% in capacity over a year ago, according to a Jan. 13 report from the Chinese Renewable Energy Industries Association.


With uncertainty over national policies still holding back the U.S. industry, state targets for renewable energy continue to drive wind installations in many areas of the country. "We'll continue to work for a strong federal energy policy that drives the deployment of renewable energy technologies in the 112th Congress," Bode said, "but we'll also be defending and improving on state renewable targets, as well as promoting other sources of demand - such as more distributed and community wind projects, and corporate purchasing under the new WindMade trustmark."

Texas, the leading wind power state in America for several years running, achieved a major milestone by surging past the 10,000-megawatt mark for total installations, a quarter of all wind capacity in the U.S., with the addition of 680 MW in 2010. Known as the hub of the oil-and-gas industry, Texas achieved the mark thanks to aggressive pursuit of renewable energy and a renewable electricity standard passed in 1999 and strengthened in 2005. On average, wind now generates 7.8% of the electricity in the Electric Reliability Council of Texas (ERCOT) which covers most of the state, peaking as high as 25%.

Other states active in pursuing targets for renewable energy last year were Illinois (498 MW added), California (455 MW), South Dakota (396), and Minnesota (396 MW). Five more states, which generally began tapping their inexhaustible wind resources more recently than the leaders, showed growth rates above 100%. With the addition of Delaware and Maryland, 38 states now have utility-scale wind projects, and 14 of those have now installed more than 1,000 MW of wind power.

Friday, February 11, 2011

ENGINEERS INDIA EYES STAKES IN REFINERIES

NEW DELHI, Feb 07, 2011 (AsiaPulse via COMTEX) --

State-run Engineers India Ltd (EIL, BSE:532178) may acquire equity stakes in the refinery and petrochemical projects where it is likely to provide engineering and construction consultancy, its chairman and managing director A.K Purwaha said Friday.

"We will be looking at acquiring equity in projects for which we will be providing consultancy," Purwaha told reporters here.

EIL, an engineering consultancy company and engineering, procurement, construction (EPC) contractor, has provided services to almost all of the refineries, petrochemical plants, oil and gas processing projects, pipeline, offshore platforms.

It is currently executing the 9-million tonnes Bhatinda refinery project for the joint venture of Hindustan Petroleum Corp (BSE:500104) and Mittal Energy, and 6 million tonnes Bina refinery for a unit of Bharat PetroleumCorp (BPCL, BSE:500547).

"EIL is looking at diversification into water and waste management, citygas distribution, thermal and nuclear power, gas-based fertiliser projects, coal-to-liquid projects and steel plants," Purwaha said.

The company would like to pick up stake in any project for distribution of CNG to automobiles and piped cooking gas to households (called city gas distribution) where it is providing project management consultancy (PMC), he said.

"We have signed a MoU with Gujarat State Petroleum Corp (GPSC)...we are likely to be bidding jointly in some of the cities," he said.

EIL has also signed a MoU with Nuclear Power Corp of India (NPCIL) for design, engineering and project management consultancy for execution of nuclear projects.

It is also working with Wipro Technologies to develop energy efficient and management products.

The company is targeting a US$1-billion order book this fiscal year. EIL bagged orders worth Rs 3,800 crore (over US$800 million) in the in the first nine months of the fiscal year year year, EIL director (finance) Ram Singh said.

As on December 31, the state-run company had a total order book of Rs 8,100 crore, three times its annual turnover.

EIL saw its net profit rise 10.25 per cent to Rs 122.45 crore for the third quarter ended December 31, 2010.

Total income of the public sector enterprise increased to Rs 709.80 crore for the quarter under review from Rs 536.27 crore for the same period previous fiscal.

For the nine-month period ended December 31, 2010, net profit rose to Rs 358.95 crore from Rs 310.85 crore in the same period previous year.

Net income rose to Rs 1,676.74 crore in the nine-month period under review from Rs 1,353.46 crore during the same period last fiscal year.

Source: ENGINEERS INDIA EYES STAKES IN REFINERIES | TradingMarkets.com

Thursday, February 10, 2011

Specialist Energy’s Hayward Tyler lands new business worth £5.9 mln - Proactiveinvestors (UK)


Specialist Energy Group (LON:SEGR) told investors that its wholly-owned subsidiary Hayward Tyler Group landed £5.9 million in new business in January.

Hayward Tyler has more than 60 per cent of the installed market for BCPs, which are fitted in power stations all over the world and are used to drive water around boiler plants

Hayward Tyler, one of Britain’s oldest engineering firms, makes boiler circulating pumps (BCPs). It is also a very rare commodity - an export success story. It has more than 60 percent of the installed market for BCPs, which are fitted in power stations all over the world and are used to drive water around boiler plants.

Following up a strong December, in which it brought in deals worth £5 million, Hayward Tyler has done even better in January. It has won a number of contracts in India, China, Europe and the United States.

“We are pleased to report that the strong momentum in our core markets in Asia, Europe and the US highlighted towards the end of 2010 is continuing into 2011,” chief executive Ewan Lloyd-Baker said.

“In particular, we see China and India continuing to offer significant growth opportunities for the group.”

It won a contract with Larsen and Toubro (L&T), a large Indian construction group, to deliver three supercritical BCP units for the Koradi project in Nagpur – where L&T is building a 1,980 megawatt thermal power plant.

Hayward Tyler has won a new order from the Dongfang Boiler Group, one of the largest boiler suppliers in China. The company has had contracts with Dongfang before and now it will sell the Chinese firm two more supercritical BCPs. The pumps will be used at the Hanchuan power plant in China’s Hubei province.

It also won two major oil and gas projects with a Norwegian offshore equipment maker, Bjorge Eureka AS. The £1.5 million deal is for five Sea Water Lift Pump (SWLP) and Fire Water Pump (FWP) motor units for use in the Gudrun and Ekofisk North Sea projects.

In the US it secured a contract to overhaul a BCP at the Conesville power station in Ohio - Hayward Tyler has installed equipment in almost 70 percent of North America’s nuclear power plants.

Specialist Energy Group (LON:SEGR) told investors that its wholly-owned subsidiary Hayward Tyler Group landed £5.9 million in new business in January.

Source: Specialist Energy’s Hayward Tyler lands new business worth £5.9 mln - Proactiveinvestors (UK)

Suzlon Energy submits DPR for Rs 600-cr wind power project

After a long delay, Suzlon Energy Ltd has submitted the Detailed Project Report (DPR) to the Orissa government for a 99 MW wind power plant at Damanjodi in Koraput district to be set up at a cost of around Rs 600 crore.

The company submitted the DPR after the state government cracked the whip on it for inordinate delay in submitting the report.

The gross potential for wind power in the state has been estimated at 1700 MW while the technical potential is assessed at 800 MW by the Union ministry of new and renewable energy.

The Orissa Renewable Energy Development Agency (OREDA) is carrying out wind resource assessment in 22 different sites to ascertain the actual potential on ground and the exact locations where the wind turbines can be installed.

The results will be analyzed and vetted by the Centre for Wind Energy Technology before concerted efforts are made to harness wind power in a big way.

The government has also submitted proposals to the Indian Renewable Energy Development Agency (IREDA) for eight solar power projects in the state, each with a capacity of 1 MW and these projects are likely to be approved soon.

Source: Suzlon Energy submits DPR for Rs 600-cr wind power project

Interference in coal market is neither needed nor helpful

Recently several newspaper articles reported Eskom as blaming the coal mining industry for supplying poor quality coal for electricity generation, consequently affecting Eskom’s electricity supply capacity.

There is also an accusation that the industry is diverting poorer quality coals, traditionally provided to Eskom, off to the so-called lucrative export markets. These accusations have prompted Eskom to seek the introduction of heavy-handed mechanisms, such as price controls, quotas on exports and restrictions on the export of the types of coal used by Eskom.

There have also been calls for the Department of Mineral Resources to declare coal a “strategic mineral” which would allow Minister Susan Shabangu to apply certain conditions on the production, storage and use of coal in South Africa. However, the Chamber of Mines is relieved that the minister has resisted the calls to declare coal a strategic mineral.

The chamber accepts the minister’s call for the industry to work closely with the government to ensure a growing coal mining industry that provides sufficient coal for domestic electricity generation and which grows its competitiveness in global export markets. The chamber is compelled to clear the air on real issues behind these accusations. It is now important to get the facts on the table.

In relation to coal quality issues, during the 2009/10 year, Eskom burnt 122.7 million tons of coal at an average calorific value of 19.22 megajoules a kilogram (MJ/kg) and an average ash content of 29.56 percent. This is according to the utility’s annual report. The average quality of coal received by Eskom does not appear to have changed much over the past decade. It also complies with the average parameters set out in the supply specifications in the contracts between the mining companies and Eskom.

The chamber is aware of only two power stations affected by coal quality issues and that all other chamber member-tied collieries to Eskom were supplying coal to Eskom at the prescribed qualities in their contractual agreements with Eskom.

In relation to the two affected power stations, agreements between the respective mining groups and Eskom have recently been reached to resolve the quality issues. The entire industry cannot be painted as providing poor quality coal to Eskom if this has just been a problem at two power stations. Where Eskom experiences difficulty with specific coal suppliers it should address the issue with those suppliers as it is a commercial contractual issue and not an industry policy matter.

It is important not to confuse the 2008 electricity crisis with current events. The large load losses in 2008 were due to the failures of Eskom’s own maintenance programmes as well as the failure of its coal stockpile policy. Again Eskom raised the issue of poor coal quality as a major contributor to the load losses when in fact this was due to it using the “mush” that used to be at the bottom of its coal stockpiles.

Its stockpiles had been deliberately run down in 2007 and 2008 due to a policy of not keeping large stocks because of the purported high cost of keeping working capital tied up in the stockpiles. It is interesting to note that the industry, having been first informed of that stockpile crisis on January 24, 2008, has worked tirelessly to help rebuild Eskom’s coal stocks on average to about 40 days.

In some instances Eskom is operating some power stations above their design utilisation rates and is therefore consuming more coal compared with the original specifications. In cases where the tied collieries, planned and built to meet the coal requirements for the designed utilisation rates, are unable to supply the additional coal Eskom is forced to obtain such coal from other sources. This causes increased coal transport, which increases the cost of coal.

On the accusation that the domestic industry is diverting Eskom-quality coals for export, especially to India, this is also a fallacy that will be exposed by the facts. In general, Eskom burns coals with an average calorific value of 19.22 MJ/kg, but in a range between 17 to 22 MJ/kg and with an average ash content of 29.6 percent (within a range of 21 percent to 36 percent).

The traditional European market for South African coal takes coal with a calorific value of 27.5 MJ/kg and an ash content of less than 20 percent. The Indian market typically takes local coal with a calorific value of 25 MJ/kg and a maximum ash content of 20 percent. So in essence, the export market does not take the quality of coals that are traditionally sold to Eskom.

It is key to note that coal exports from South Africa have fallen from 71.4 million tons in 2005 to 63 million tons in 2010, mostly due to inefficiencies in the Coalink railway line. Within this context of falling coal exports, exports to Europe have declined sharply and export volumes of export quality coals have shifted to markets in the Far East, including India.

The percentage of South African coal exports to Europe has decreased from 90 percent of total to about 50 percent over the past two years. About 50 percent of South Africa’s export coals are now destined for India and other Far East markets.

Eskom is not experiencing a shortage of coal at its power stations due to increased exports of coal.

In terms of coal supply, the chamber is not aware of any short-term coal supply problems to Eskom for the existing power station fleet. Eskom has already contracted the coal supplies for the two large power stations under construction – Medupi and Kusile – and the coal mining companies are already investing billions of rand in expansions and new projects at Grootegeluk and New Largo for coal supply to Eskom.

In reality there exists an important synergy, whereby the better coals are exported generating much-needed foreign currency and the lower-quality high-ash coals are used locally for electricity generation and liquid fuel production. Eskom continues to obtain coal from the existing power station-tied collieries on a competitive basis.

Heavy-handed mechanisms to regulate the domestic industry and interference in a voluntary market-based system may well lead to significant distortions and unintended consequences for the country and may well prejudice security of primary energy supply.

One only has to revisit the Californian energy crisis in the 1990s where well-intentioned retail price caps on electricity led to a major shortage of supply in that state. The private sector could not make investment decisions on capped retail electricity prices and a huge shortage of generation capacity resulted.

There is no coal supply or quality crisis. Rather there is an industry that is willing to work with the relevant government, labour and industry stakeholders to facilitate continued security of primary energy supply and the continued growth of South Africa’s world-class coal mining industry.

Bheki Sibiya is the chief executive of the Chamber of Mines.

Source: Interference in coal market is neither needed nor helpful - Opinion - IOL | Breaking News | South Africa News | World News | Sport | Business | Entertainment | IOL.co.za

USA announce major offshore wind initiatives

Secretary of the Interior Ken Salazar and Secretary of Energy Steven Chu announced major steps forward in support of offshore wind energy in the United States, including new funding opportunities for up to $50.5 million for projects that support offshore wind energy deployment and several high priority Wind Energy Areas in the mid-Atlantic that will spur rapid, responsible development of this abundant renewable resource. 

Deployment of clean, renewable offshore wind energy will help meet the President’s goal of generating 80 percent of the Nation’s electricity from clean energy sources by 2035. “The mid-Atlantic Wind Energy Areas are a key part of our ‘Smart from the Start’ program for expediting appropriate commercial-scale wind energy development in America’s waters,” Secretary Salazar said. “Through the Strategic Work Plan, the United States is synchronizing new research and development initiatives with more efficient, forward-thinking planning so that we can help quickly stand up an American offshore wind industry. This initiative will spur the type of innovation that will help us create new jobs, build a clean energy future, and compete and win in the technologies of the 21st century.”

“Offshore wind energy can reduce greenhouse gas emissions, diversify our energy supply, and stimulate economic revitalization,” said Secretary Chu. “The Department of Energy is committed to working with our federal partners to provide national leadership in accelerating offshore wind energy deployment.”

Source: Your Industry News - USA announce major offshore wind initiatives

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