Energy Times

Volume 7 No.-2

August 2012

Energy Times
A Monthly Newsletter by Energy Management Executives In This issue Solutions to the Blackout Nation P.1 Indian Energy Industry Trends P.2 Newsletter Date Global Energy Trends P.3 Tech Startups P.4

Volume 1, Issue 1

Solutions to the Blackout Nation

A few days back 600 millions of people across India were left without power, one of the world's worst blackouts, when grids collapsed for the second time in two days. The outage covered over 20 states where half of India's 1.2 billion people live and embarrassed the government, which has failed to soon, which led to lower hydroelectric power generation. Millions of ACs keep humming in cities and simultaneously in states like UP, Haryana and Punjab, farmers have resorted to using water pumps, drawing more power than usual which resulted in 1200 MW of power overdraw. thermal, nuclear and even some hydropower plants operate at base loadsto meet our electricity needs. We have very little flexibility on peak load power plants. So when the peak demand surges, we have no source to supply electricity to the grid. Apart from grid discipline and setting up systems that ensure that states do not overdraw power, we need to change our power generation mix. In this context, largescale installation of renewable energy plants like wind and solar plants will play a major role in stabilizing the grid, as their power generation profileespecially that of solarmatches the peak demand in the country. Genjects finance and land acquisition that are major problem in this sector. In Transmission sector expansion of EHV Transmission network is required. Distribution sector need to cut down the AT&C losses (currently at 30%) by modern practices like implementation of smart grid and renovation of old & outdated distribution network.

The grid frequency falls when there is overdraw of electricity. As per the Indian Electricity Grid Code freThe Dark Hours: 30th July quency operat2:30 to 8:30 AM ing range is 49.5Hz to build up enough power ca50.2Hz. To protect and mainpacity to meet soaring detain the grid network, mand. there is a need to inAsia's third-largest economy stall under-frequency suffers a peak-hour power relays that could have deficit of about 10 percent isolated the power that is around 15000 MW, supply immediately. dragging on economic growth. But there is another fundamental reason After of the hottest summers that we are not adin recent years, the North dressing. We rely largely on India has seen a weak monbase load power plants

Inside this issue:

SOLAR POWERED ATM
FOR RURAL INDIA

2 2 3 3 4 4

ENERGY SECTOR IN INDIAN STOCK EXCHANGE-2 EUROPES COAL QUANDARY

LONDON OFFSHORES ITS

ENERGY SUPPLY

TECH STARTUPS: GRAM POWER PORTABLE AIRBORNE

WIND POWER

eration sector also requires improvement in power pro-

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Think outside the Barrel

Headlines Scan
India aims to add 88,000 megawatts (MW) of power generation capacity in the next five years as declared by Power minister. Indias current power generation capacity is 200,000 MW, with a peak shortfall of 10 percent. The state-run Solar Energy Corporation of India is planning to set up small, pilot power plants (less than 5 MW) with strong linkages with research and academic institutions to develop technologies and products relevant for India. Union ministry of new and renewable energy (MNRE) is looking at setting up a company for biomass-based power generation and promotion on the lines of Solar Energy Corporation of India (SECI). Telecom industry bodies COAI and AUSPI have placed power purchase order with seven renewable energy generation companies (Rescos) like Moser Baer and ABB, expressing readiness to buy their entire generation for 1 lakh towers. Tata Power completed the purchase of 51% equity shares of Tata BP Solar India Limited, which was held by BP Alternative Energy Holdings Limited. Consequently, Tata BP Solar India Limited is now a wholly owned subsidiary of Tata Power. Delhi government is considering to switch over to LED bulbs for street lighting across the city to save energy.

Energy Times

Solar Powered ATMs for rural India

For many villagers in rural solar panels, alongside four areas of India, personal to eight hours of battery banking is pricey as far as storage. Due to the ability to travelling to nearest bank is operate in temperatures as concerned. high as 122 degrees FahrenIndian engiheit , it neering comnever pany, Vortex needs has taken on coolthe challenge i n g , by creating unlike solar-powered most A Solar Powered ATM ATMs. The ATMs. Gram teller ATM is lean, Clever engineering also efficient and robust for any means its 90% more effilocation. It carries its own cient than conventional machines, consuming about 72 units of electricity per month. The ATM also comes with a fingerprint identification system to withdraw cash. So far, Vortex has deployed about 450 ATMs for SBI across India, mostly in small towns about 60 kilometers from bank branches and plans to install about 10,000 more within the next two years.

Ministry of Power agrees For Price Pooling of Coal

The ministry of power has agreed to the model for price pooling of coal proposed by the coal ministry to even out the impact of pricey imported fuel on power generation. Price pooling essentially means common pricing of similar grade coal. This price is arrived at by taking the average price of imported and domestic coal. The model proposes that all consumers equally share the common price. Power plants in coastal areas will be supplied 30% of their total requirement in imported coal, while those within 300 km of the coastline will be supplied 15%. Rest of the generators will use 100% domestic coal Once the price pooling model is adopted, power tariffs for plants located in the east are expected to increase more in comparison to the units that are in the coastal regions of the west.

Energy Sector in Indian Stock Exchange-Part 2

INDIAN ENERGY EXCHANGE (IEX) is Indias first and no. 1 electricity exchange. It is a transparent, neutral, demutualised, nationwide, automated, online electricity trading platform. It enables efficient price discovery and price risk management for participants of the electricity market including industries eligible for open access through anonymous platform. Day-ahead market (DAM) is used for trading hourly contract, one day prior to the delivery of electricity. Both buyers and sellers electronically submit their anonymous bid during the bid call session. The market clearing price is determined on the basis of intersection point of demand and supply curve which is true function of demand and supply only. Term-ahead market (TAM) contracts cover the entire range of products which can be offered for the duration upto two weeks, further subcategorization is done for region wise, intra-day, dayahead contingency, daily and weekly contracts to help participants manage their electricity portfolio for different durations. ..(to be continued in the next issue)

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Wind, water, Sun: Energy for the long run

Liquid-rich US shales shine as Industrys sweet spot
The paradigm has shifted. US land rigs that just two years ago were at work in prolific shale gas plays are on the move, delivering an oil and liquid boom that has yet to be fully quantified. US shales are the big story for 2012, driven by new play discoveries, technology advances and favourable pricing.. The technology in multistage fracturing has advanced to the point that now oil and wet gas can be produced in substantial quantities . Rigs have walking systems to facilitate efficient, slot-to-slot moves
A Precision Drilling SuperTriple (ST) 1200 rig

Energy Times

New Solar Record Set

Germany's decision to abandon nuclear power is resulting in strong growth for its solar generation industry. The country produced a new high of 22 GW of electricity per hour at its solar power stations over a two-day period in May. That's the same amount as 20 nuclear power stations at full power.

to reduce locationto-location times. move is Focus

heavily on mobilization times as this portion of the well manufacturing process has become much more visible due to faster drilling times.

Europes Coal Quandary

In Europe right now, coalfired power generation poses a paradox. The years up to 2020 are forecast to see many new coal power plants being built in Europe, even as coals share of the generating mix continues to shrink and its perception as a dirty fuel becomes more firmly fixed in the minds of the public. And though these new plants will boast high thermal efficiencies, they will not include carbon capture and storage (CCS). This seems odd in view of the European Unions (EUs) commitment to 330 coal-fired power plants rapid and deep cuts in carwith a combined capacity bon emissions. In several of 200 GW from almost 950 EU countries, the push is units. Between 2012 and toward multipurpose plants 2020, the firm says, apthat can supply electricity proximately 80 new coal and district heat while burnunits will be built, with a ing combinations of fuels. capacity of about 50 Europe needs new coalGW. From 2003 to 2011, by fired capacity because many comparison, only 40 units aging coal and nuclear totaling 10 GW were built. plants will be closing in short order. EcoCoal Fired Power Plant Construction in nomics, poor plan- Europe is Forecasted to rise sharply upto 2017. ning, and air pollution all play a part in the shutdowns. In late 2011, according to ecoprog, Europe had about

Europe (EU-27) boasts a varied mix of power generation technologies, with nearly half of the generation fleet composed of carbon-neutral equipment. Share of new re-

newable energy capacity (other than hydro) has both increased in absolute terms in Europes power mix, and evolved significantly over the past years. Currently
some 72% of the total new RES capacity of 77 GW is wind, some 16% is made up of biomass and waste fired installations, 6% is solar, 4% biogas and the remaining 2% consists of geothermal and other technologies.

London Offshores Its Energy Supply

The first phase of the world's 630 MW. Completion of the largest offshore wind farm, second phase will see 1,000 sited in the outer M W Thames Estuary of the output UK, will be complete f r o m at the end of this year. the final The 175 turbines com341 turprising the London bines, An Array Offshore Wind Farm w h i c h Array will then deliver could supply up 750,000 homes or about onequarter of Greater London. Each 3.6 MW capacity turbine is being installed on a monopole foundation and linked to each other and to two offshore substations via 200 km of array cables .

At the beginning of March 2012, the installed capacity of wind power in the United Kingdom was 6,580 MW, with 333 operational wind farms and 3,506 wind turbines in the UK..The UK is ranked as the worlds eighth largest producer of wind power.

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Cleaner Energy For a Cleaner World

Headlines Scan
IBV Brasil Petroleo Ltda., an equal joint venture of Bharat Petroleum and Videocon Industries has struck oil at depths between 2,008 meters and 2,047 meters, off the Brazilian coast and holds 30% interest in the block named ES-M-661 in the Espirito Santo Basin. More than 20 State Electricity Boards (SEBs) have proposed to increase tariffs in the past 18 months. Distribution companies would have to keep hiking rates by 510 per cent for the next five years to achieve break-even, according to a report. The Delhi Electricity Regulatory Commission has introduced time-ofthe-day metering for non -domestic consumers with a sanctioned load of over 300kW in the new tariff order, with the aim to reduce peak-hour demand. India's Ministry of New and Renewable Energy (MNRE) has released details of subsidies for off-grid solar photovoltaic (PV) generation. The agency is providing a 30% subsidy for the benchmark costs of PV systems, as well as loans limited to 5% interest annually.

Energy Times

India's Smart Micro grid Gram Power

GRAM POWER is an initiative to enable villagers to generate and store renewable energy from biomass, solar or wind on-site. Gram Power is commercializing a technology and distribution strategy to radically improve energy accessibility in the $11.6 billion rural energy market. Their micro storage system and innovative rental plan that targets the user's disposable income without burdening financial savings can create low cost e n e r g y access for the 2.6 billion people in the world living without reliable po w e r . Located at Todaraisingh Mandal in Tonk district of Rajasthan, it powers around 200 people allowing them to operate common appliances at home. Consumers pay Rs 75 per month under the pay-asyou-go model for standard grid connection. Gram Power, which has already powered 10 villages in Rajasthan, is now looking to form strong partnerships to increase access to their technology through state and central Renewable energy ministries. The start up has a target to deploy 20 self owned smart micro grids with 250 kilowatt peak of generation, catering to almost 40,000 people over the next 12 months.

Portable Airborne Wind Power

Most windmills are made of metal towers with sharp, spinning blades. But Alteros Energy, a small startup formed by Harvard and MIT graduates, looks to change that. Their new wind turbine isnt a tower, but a doughnut shaped helium balloon with a propeller in the middle. The airborne wind turbine is about 35 feet across and uses helium to gain altitude, transporting the generated power to the ground below through the sturdy cables that hold it in place. By h a r n e ss i n g much stronger high-altitude winds the new technology reduces energy costs by up to 65 percent. The biggest improvement of Altaeros Energies Aerial Wind Turbine is that it is completely portable, unlike stationary turbines. . The turbines mobility most importantly allows it to be used at remote construction sites or during mobile military operations where power may not be readily available. to have virtually no environmental impact, and can be left to work automatically with little maintenance, raising or lowering itself when needed. One of the biggest advantages of airborne turbines is that they can be easily grouped through their ground cabling, and in general take up far less real estate than their larger tower counterparts. In the future Alteros Energies hopes to scale their airborne turbine to harness even stronger offshore winds with the first planned prototype to be constructed off the coast of Virginia, U.S. by the end of 2013 .

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This new wind turbine aims

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