Energy News Monitor | Volume XX, Issue 12

Table of Contents
Issue Date

Quick Notes
Hydropower in India: An update
Background
In 1947, hydropower capacity was about 37 percent of the total power generating capacity and over 53 percent of power generation. In the late 1960s, coal-based power generation started displacing hydropower in India and hydropower’s share in both capacity and generation fell dramatically. In August 2023, hydropower capacity of about 46,865 MW (megawatt) accounted for roughly 11 percent of power generation capacity. In 2022-23, hydropower accounted for 12.5 percent of power generation in India. India had about 4745.6 MW pumped storage capacity in operation in 2023 with about 57,345 MW of pumped storage capacity under various stages of investigation and construction.

Globally, hydropower is the dominant renewable energy source to date, providing over two-thirds of all renewable electricity. Global installed hydropower capacity rose by 26 GW (gigawatt) to 1360 GW in 2021. Globally, 4,250 TWh (terawatt hour) of clean electricity was gnerated from hydropower, one and a half times the entire electricity consumption of the EU (European Union) and more than all renewable generation combined. But this falls well short of the 45 GW of annual capacity addition that the International Energy Agency (IEA) says is required to meet net-zero goals by 2050 and keep global temperature rises to 1.5°C. To keep temperature rises to 2°C would require 30 GW annually. Around 80 percent of new hydropower capacity installed in 2021 was in China. 4.7 GW of pumped storage hydropower was added to the grid, triple the amount added in 2020. Global growth in hydropower generation capacity was just over 1.9 percent in 2021 which is close to the 2 percent annual average growth required to meet targets set by the Paris Agreement.

Challenges
Large storage hydro-power projects produce low carbon electricity but they also impose huge environmental and social costs. They displace thousands of people, disrupt river ecology, result in large scale defrestation, initiate loss of aquatic and terrestrial biodiversity, negatively alter food systems, water quality and agriculture. These environmental and social costs have led to dam removals in North America and Europe that used to be big dam builders until the 1970s. Now more dams are being removed in North America and Europe than are being built. Even in developing countries where dam building continues, the pace is slowing down because most of the best sites have been taken and also because other sources of renewable energy such as solar and wind are monopolising policy attention and investment.

In the fragile Himalayan mountains where most of India’s new hydro-power projects are being developed, devastating floods and landslides have raised risk levels for hydro-projects. In February 2021, sudden flooding in the Dhauliganga, Rishiganga and Alaknanda rivers in Uttarakhand’s Chamoli district in took many lives and severely damaged many hydropower projects. Heavy rains in July 2023 an the consequent shut down and damage to hydropower projects resulted in total revenue loss over INR 1.6 billion according to the central electricity authority (CEA). Though there is disagreement over the cause of the 2021 flash floods (glacier crash, avalanche, landslide), there is general agreement that carrying out development projects including hydropower projects, highways, railway lines and mining without adequate appraisals and the disregard for cumulative impact and disaster potential assessments contributed to the scale of the loss.

Widespread indifference for environmental concerns among project developers and the absence of credible monitoring and compliance from regulatory bodies have considerably increased exposure to risks. But this does not mean hydropower projects must be abandoned. There are examples of hydropower projects in India that have met the best international standards. The Teesta-V hydropower station, located in Sikkim was rated as an example of internationalgood practice in hydropower sustainability in 2019. The 510 MW power station, owned and operated by NHPC Limited (National Hydropower Corporation), met or exceeded international good practice across all 20 performance criteria. For hydropower planning to become sustainable in India the government and industry must prioritize transparency by engaging the civil society, especially those who are directly affected by the project. Research suggests that modular solutions that combine wind, solar, and hydropower provide alternative energy sources that are environmentally, socially, and financially desirable. Instream turbine parks are a much less disruptive alternative to dams and produce energy at a much lower cost. Large, ‘smart’ hydropower projects may be developed, taking into account the economic, environmental and social concerns of local and downstream communities, in addition to national economic benefits. Technical provisions in smart projects can minimize the impacts on aquatic lif and terrestrial ecosystems. To support hydropower projects, the government of India has included large projects above 25 MW under renewable energy category and has notified hydropower purchase obligation (HPO) as a non-solar renewable purchase obligation (RPO). To facilitate viability, tariff rationalisation with backloading of tariff after increasing project life to 40 years, increasing debt repayment period to 18 years and introducing escalating tariff of 2 percent, budgetary support to building enabling Infrastructure such as roads and bridges and also for flood moderation services have been introduced.

Contribution to Grid Stability
The most important advantage of hydropower in contrast to other renewable energy sources, like wind and solar, is that it can be dispatched quickly at any time, enabling utilities to balance load variations on the electric distribution system. In India, hydropower’s flexibility was best demonstrated on 5 April 2020 when the country’s operators restore grid stability following a 31-GW (gigawatt) plunge in demand when most households switched off electrical lights for nine minutes from 21.00 hours to 21.09 hrs. As the event unfolded, generation from hydropower decreased by over 68 percent in a short period without which grid stability would have been compromised.

Pumped hydro storage (PHS) facilities store energy in the form of water in an upper reservoir, pumped from another reservoir at a lower elevation. During periods of high electricity demand, power is generated by releasing the stored water through turbines in the same manner as a conventional hydropower station. During periods of low demand, the upper reservoir is recharged by using lower-cost electricity from the grid to pump the water back to the upper reservoir. PHS projects are unlike traditional hydroelectric stations in that they are a net consumer of electricity, due to hydraulic and electrical losses incurred in the cycle of pumping from lower to upper reservoirs. Hoever, these plants are typically highly efficient and can prove very beneficial in terms of balancing load within the overall power system. Pumped-storage facilities can be very economical due to peak and off-peak price differentials and their potential to provide critical ancillary grid services. Globally, about 161 GW of PHS acts as the world’s largest ‘water battery’ accounting for over 94 per cent of installed global energy storage capacity. It supports grid stability, reduces overall system costs and sector emissions. India has eight PHS plants with a combined capacity of 4,745 MW, and four PHS plants of 2,780 MW are under construction. Currently out of the total 4,745 MW capacity, only five plants with combined capacity of around 2600 MW, are being operated in pumping mode. 63 sites have been identified for PHS with total potential of about 96,500 MW. In 2020 the Solar Energy Corporation of India (SECI) concluded the world’s largest renewable-cum-energy storage power purchase tener through a reverse auction method. Greenko Group won the auction with a peak power tariff rate of INR 6.12/kWh (kilowatt hour) pairing solar power with PHS.

Economics of PHS
No energy solution can exist outside of the real and competitive pressures of the market. Though a market for electricity does not exist in India in the strictest sense, PHS cannot count on technical viability and environmental benefits to succeed in the longer term. The traditional revenue source for PHS is arbitrage: Making the most of generating when the price is high, and pumping when the price is low. But this relies on a certain level of predictable variability in the electricity market, and for that variability to continue into the future. PHS provides network support services such as frequency control, inertia and fault level control that have increasing value in a grid with significant amounts of non-synchronous solar and wind generation. As of now there are no markets for these network support servicesin India but, in the future, the need for such services is likely to increase to the point where the market is willing to pay for it.

Source: International Hydropower Association
Monthly News Commentary: Power
Progress in Cross Border Electricity Trade
India
Electricity Trade
An India-Sri Lanka power line project that hopes to link power grids between the two countries is in advanced stages of negotiation. A detailed project report (DPR) has been completed and is being reviewed prior to formal approval. The proposed power line received a boost from President Ranil Wickremesinghe’s visit to India in July. Talks on establishing power grid connectivity have been on for over a decade now. In 2010, the two countries agreed to explore the feasibility of linking their grids through an undersea cable. The proposal was dropped due to cost concerns. Power grid connectivity will serve several purposes. First, it will help crisis-hit Sri Lanka improve its energy security after the country saw wiespread power shortages in 2022. The project may also eventually allow Sri Lanka to sell power to India and earn vital foreign exchange in the long term. India has been keen to explore the possibility of creating a South Asian market for the power trade. It has established power grid connectivity with neighbouring countries like Nepal and Bhutan.

India is considering trading power with Southeast Asian countries through Myanmar and Thailand, as New Delhi looks to use its growing renewables capacity to boost regional diplomatic engagement. The grid linkages follow India’s effort to begin trading power with Middle Eastern countries such as the United Arab Emirates. India already exports some power to Bangladesh, Nepal and Bhutan along with very small amounts to Myanmar that would be stepped up massively under the new plan.

Discom Reform
The BSES discoms (distribution companies) have issued an advisory cautioning the public to avoid flying kites near electrical installations. The celebraions on Independence Day and Raksha Bandhan festival involve kite flying on a mass scale in the national capital.

In a bid to create a broad framework for financial sustainability of the power sector, the government has put in additional measures to improve financial health of discoms (distribution companies). This also includes streamlining the process of accounting, reporting, billing and payment of subsidy by States to the Distribution Companies. The measures come in the wake of improper and non-transparent accounting as well as non-payment or delayed payment of subsidy announced by the States, one of the reasons for financial distress of discoms.

GMR Smart Electricity Distribution Pvt Ltd, a subsidiary of GMR Power and Urban Infra Limited (GPUIL), has been awarded a prestigious order worth of INR75.93 billion (bn) (US$915 million (mn)) to implement a large-scale smart metering project in Uttar Pradesh by the Government of India. The project will be initiated under the RDSS progra-a timelines-based reforms plan initiated by the power ministry. According to the company, the project will span 22 districts covering prominent areas such as Varanasi, Prayag Raj, Agra, Mathura and Aligarh among others. The order received under the DBFOOT (Design, Build, Finance, Own, Operate and Transfer) model, entails 75.69 lakh (7.569 mn) prepaid smart meters across two discos, Dakshinanchal Vidyut Vitaran Nigam Limited (DVVNL) and Purvanchal Vidyut Vitaran Nigam Limited (PuVVNL), making it the largest combined package order of its kind. Installation of smart meters will majorly contribute to the turnaround journey of the power distribution sector by eliminating billing and collection losses and thereby enhancing the financial sustainability of the discoms.

As many as 14 new power supply firms (discoms) came into existence during the last ten years, and there are 109 discoms in the country at present, Parliament was informed. Power is in the concurrent list of the Constitution, bt most state utilities are engaged in the power distribution business. During the period, Power Minister R K Singh informed the House that six government companies turned into joint ventures. Four state-owned discoms in Odisha have turned into joint ventures with a 51 percent share of Tata Power and the rest with the Odisha government. Singh informed that reforms undertaken by discoms under the Revamped Distribution Sector Scheme (RDSS) have started showing the desired results in the first year itself. The RDSS was launched in July 2021 and aimed at transforming the electricity distribution sector.

Demand Growth
Telangana will soon achieve the target of 25,000 megawatt (MW) installed power capacity against the existing capacity of 18,756 MW, Chief Minister (CM) K Chandrasekhar Rao said. He said Telangana is in number one position when it comes to per capita power consumption and the national average is nowhere near the state average.

Power Grid Corporation of India’s first-quarter prfit fell more than 5 percent, hurt by weaker demand in its core transmission business. The company’s consolidated profit was INR35.97 bn (US$437.42 million) in the quarter ended 30 June, compared with INR38.01 bn a year earlier. A surge in summer power demand, which had strained India’s electricity transmission system, eased in the April-June period owing to a cooler pre-monsoon. Power Grid’s consolidated revenue from operations in the quarter rose 1.3 percent to INR110.48 bn, with its transmission business growing 1.2 percent. Consolidated total expenses for Power Grid, which transmits nearly half of the power generated in the country, slipped more than 3 percent to INR66.89 bn in the quarter.

Uttar Pradesh (UP) clocked a peak electricity demand of 28,043 MW in August, which was the highest-ever in the state’s history, UP Power Corporation Ltd (UPPCL) said. The demand increased as a result of the persistent heat and humidity. Prior to this, the highest recorded power consumption was 7,622 MW on 22 July and 27,611 MW in June. The power corporation was meeting the entire demand by providing electricity to consumers as per the schedule, but the ground reality was a bit different. Along with power outages brought on by overloaded transformer failure, complaints regarding undeclared load shedding were still being received from all around the state. UPPCL claimed that the extensive planning and management for procuring power from diverse sources was proving useful in supplying sufficient electricity to consumers as per the schedule. According to the company, instructions had been issued to all the field officials to take all possible steps to avoid power disruptions resulting from transformer failure.

Generation
NTPC Ltd announced that a 660 MW unit of its plant at Barh, on the outskirts of Patna, has started commercial generation, which would result in an additional 396 MW electricity supply to Bihar. NTPC said this has resulted in an increase in the total commercial eneration capacity of the plant from 1,980 MW to 2,640 MW. Bihar’s allocation from the facility has thus risen to 1,922 MW from 1,526 MW, while the total allocation from all NTPC plants in the state has gone up to 7,287 MW from 6,891 MW.

Regulation and Governance
Rajasthan government announced a complete waiver of fuel surcharge for all domestic and agricultural power consumers in the State. The waiver was earlier applicable only to those consuming electricity up to 200 kWh (units) in a month. The public sector power distribution company will get the amount from the State government. The surcharge was added to the electricity bills depending upon the prices of coal purchased for power production. The government had in June this year waived power bill charges for the first 100 units for all domestic consumers and also announced waiver of fixed charges on electricity connections as well as the fuel surcharge and all other charges for power consumption up to 200 units in a month. The Stae government had received the reports of practical difficulties faced by power consumers because of slab-wise exemption in the inflation relief camps organised during the last three months. The State government is already providing 2,000 units of electricity free of cost every month to the farmers with a view to giving them relief from high input costs of agriculture. More than 11 lakh agricultural power consumers are getting the benefit.

Transmission
Power transmission developer Sterlite Power said it has successfully acquired Fatehgarh III Beawar Transmission Limited, a special purpose vehicle (SPV) from PFC Consulting Limited (PFCCL). Under this acquisition, Sterlite Power will undertake the construction, ownership, operation, and transfer of a critical transmission project in Rajasthan for a substantial duration of 35 years. The project will involve construction of a 350 km, 765 kV transmission corridor from Fatehgarh III to Beawar in Rajasthan.

Rest of the World
Global
Accordingto the International Energy Agency (IEA), an ongoing energy crisis and an economic downturn is expected to slow global power demand growth in 2023, but a probable rebound in 2024 means more renewable capacity needs to be developed. The global growth rate for energy consumption is set to slow to slightly less than 2 percent in 2023, down from 2.3 percent in 2022, which was also down from the five-year pre-COVID 19 average of 2.4 percent. For 2024, the rate is expected to rise to 3.3 percent, as the economic outlook improves, the IEA data showed. In the first half this year, the European Union (EU) recorded a 6 percent decline in power demand as energy-intensive industries, including aluminium, steel, paper, and chemical industries, cut their use in response to high prices. A relatively mild winter also had a more limited impact on reducing demand, the IEA said. Wholesale electricity prices, have fallen significantly from records hit last year as a result of the disruption caused by Russa’s invasion of Ukraine, but average prices in Europe are still more than double their 2019 levels, India’s are up 80 percent, and Japan’s more than 30 percent.

Asia Pacific
According to Pakistan’s finance ministry, the country will buy more electricity from neighbouring Iran. Energy-starved Pakistan already has contracts to purchase electricity from Tehran for its border regions, especially for China-backed development projects on Gwadar port. The new proposal came a week after the Iranian foreign minister visited Islamabad.

North & South America
Demand for power in Texas hit a record high for a sixth time this summer as homes and business kept air conditioners cranked up to escape a lingering heat wave. The Electric Reliability Council of Texas (ERCOT), which operates the grid for more than 26 million customers representing about 90 percent of the state’s power load, said it has enough resources available to meet soaring demand. Analysts said wind and solar power have helped ERCOT eet record-breaking demand this summer while maintaining reliability and keeping prices relatively low. Texas residents have worried about extreme weather since a deadly storm in February 2021 left millions without power, water and heat for days as ERCOT struggled to prevent a grid collapse. After the state hit 11 record highs for demand last summer, ERCOT said usage hit a preliminary 83047 MW, which topped the current all-time high of 82,592 MW on 18 July.

California’s power grid operator said it does not plan to ask consumers to conserve power after declaring an energy emergency as homes and businesses cranked up their air conditioners to escape a lingering heat wave. The California Independent System Operator (ISO), which operates the grid serving more than 32 million consumers representing about 80 percent of the state’s power load, has said it has enough resources available to meet demand. California residents have worried about the effect of extreme weather on the power grid sine a brutal heat wave in August 2020 forced the ISO to impose a couple of days of rotating blackouts on around 800,000 homes and businesses.

Europe & Russia
Germany’s cartel office said utility RWE was “well above the presumption threshold” for dominance in the wholesale power market and must ensure it does not abuse its position, without specifying concrete action it must take. Rivals EnBW and LEAG have also come close to the same threshold. The three companies, which are able to supply round-the-clock electricity from their remaining coal or gas plants, therefore see their sales volumes rise at those times. The cartel office has the power to fine companies, or order actions such as the sale of subsidiaries, if it deems there is a dominant market position. It had not been active in Europe’s largest power market in recent years, due to high levels of competition, but the Ukraine war and exit of nuclear power from Germany has disrupted the market.

Germany’s Economy Minister Robert Habek said Berlin had made a “breakthrough” in its talks with the European Commission on plans for new hydrogen and gas power plants, but has yet to agree on how they will be subsidised. Germany wants to use hydrogen and gas power plants to cover gaps in wind and solar supply, but has been at odds with Brussels on implementing public funding for them. Economy Minister Robert Habeck told journalists in Hamburg that the two have now agreed Germany will tender 8.8 gigawatt (GW) of new hydrogen plants, and up to another 15 GW that will run initially on natural gas before being connected to the hydrogen grid by 2035 the latest. Habeck said the tender process for 10 GW of these gas- and hydrogen-ready plants would take place by 2026. The government will then evaluate the process before tendering the remaining 5 GW, he said.

News Highlights: 16 – 22 August 2023
National: Oil
High refill cost major factor impeding shift to LPG in low-income households in India: Study
21 August: High refill costs,complex application process, absence of doorstep delivery and poor grievance redressal mechanisms are formidable barriers hindering the access, adoption and sustained use of liquefied petroleum gas (LPG) among low-income households in India, the study, part of a Cleaner Air and Better Health (CABH) project, said. The study aims at identifying the challenges impeding a shift away from unclean biomass fuels, guiding policy interventions and driving behavioral change.

Government may reduce tax on petrol prices to fight inflation
17 August: The government is considering a plan to reduce taxes applicable on petrol prices in addition to easing import tariffs on expensive items like cooking oil and wheat. The government considering a plan to reallocate as much as INR1k billion from the budgets of various ministries to contain surging food and fuel costs. Not just fuel prices, but households are feeling the inflation heat from all sides – be it tomatoes, other fruits and vegetables, milk, or ven essential cereals like rice and wheat. All of these factors have pushed India’s retail inflation to a 15-month high of 7.4 percent in July.

National: Gas
Vedanta seeks a minimum of US$9.5 per mmBtu for gas from its Rajasthan block
22 August: Vedanta Ltd is seeking a minimum of US$9.5 for the natural gas it produces from its Rajasthan block, according to a tender floated by the firm for the sale of the fuel. Vedanta sought bids from users for 0.6 million standard cubic meters per day of gas it plans to produce from the RJ-ON-90/1 block in the Barmer basin of Rajasthan in three months beginning 1 October. Gas extracted from below ground is used to produce electricity, make fertilizer, turned into CNG to fire automobiles, or piped to household kitchens for cooking purposes. In the tender, Vedanta asked users to quote a variable ‘P’ that they are willing to pay over and above 14.5 percent of Brent crude oil price.

Haryana plans policy to boost CNG infrastructure
21 August: The Haryan government is set to launch the ‘Right of Use and Right of Way’ policy, aimed at facilitating the smooth establishment of the CNG (compressed natural gas) and PNG (piped natural gas) distribution network. This policy is poised to play a pivotal role in enhancing infrastructure flexibility and catalysing progress, Chief Secretary Sanjeev Kaushal said. He presided over a review meeting, convened by the Department of Industries and Commerce, to expedite the deployment of CNG and PNG infrastructure across the state. Kaushal directed the officers concerned to inspect industrial units not using the approved fuel and take strict action against the erring units. A total of 632 industries have adopted gas as their fuel choice, out of which 257 are operating within the industrial zone. Additionally, 403 industries are operational using the approved alternative fuels. He announced the constitution of a state-level apex monitoring committee to oversee the strategic implementation of CNG/PNG infratructure projects. This committee will include representatives from the Departments of Industries and Commerce, Urban Development and Urban Local Bodies.

National: Coal
Trials for Coal India’s in-house e-auction platform successful
20 August: The trials for Coal India’s in-house e-auction platform have been carried out satisfactorily, and the mechanism can have a full-fledged rollout across the company’s coal-producing subsidiaries. A total of seven trial auctions involving nearly 18 million tonnes (MT) of coal have been conducted. The mining major has entrusted its wholly owned subsidiary Central Mine Planning & Design Institute (CMPDI) to rollout the in-house e-auction system, with technical assistance from the National Informatics Centre.

India’s coal emissions set for new highs on low-grade imports
16 August: India’s annual coal emissions are on track to scale new highs in 2023, after the power sector discharged record volumes of carbon dioxide in the first half and lifted import of low-quality and high-polluting coal on world markets. India’s power producers discharged over 500 million tonnes of CO2 (carbon dioxide) from burning coal over the first half of 2023, a 4% rise over the same period in 2022 when a new annual record for coal power emissions was set, data from think tank Ember shows. Indian utilities use a mix of low-grade domestic coal plus imports to feed power stations, and coal shipments into the second largest coal consumer can provide a leading indicator of potential emissions from key coastal power plants, which are among the largest in the country. Roughly 80 percent of India’s thermal coal imports over the first half of 2023 came from Indonesia, South Africa and Russia, known for primarily exporting low-quality thermal coal which emits CO2 and sulphur dioxide when burned in power stations. Around 7 percent of India’s thermal imports came from Australia, supplier of some of the cleanest-burning coal on world markets.

National: Power
Uttarakhad CM seeks central relief for damaged power lines
22 August: Uttarakhand Chief Minister (CM) Pushkar Singh Dhami requested Union Energy Minister R K Singh for compensation for loss caused by recent calamities on power infrastructure. Singh assured Dhami the Centre would provide compensation after a survey of damaged power lines and towers. The CM requested Singh to set up power lines and power plants in border areas as soon as possible. He said they would be set up soon. Emphasising the need to stabilise the state’s energy security and prevent extensive power shortages, Dhami requested a permanent allocation of 400–450 MW from coal-based plants to Uttarakhand. Dhami thanked the Minister for providing an average of 300 MW of electricity per month from the unallocated quota from April to September 2023.

Discom’s prepaid meter plan finds only 650 takers in city
22 August: The Dakshin Haryana Bijli Vitran Nigam Limited (DHBVN)’s prepaid meter scheme has failed to get a good response from onsumers. Till now, only 650 consumers in the city — less than 1 percent — have opted for the scheme. There are around 3.7 lakh electricity consumers, and 2.5 lakh of them have smart meters installed by DHBVN as part of its smart grid project. Among other facilities, smart meters offer the option of prepaid billing. The discom (distribution company) offers a 5 percent discount on the monthly energy bill to consumers who switch to prepaid billing. The meters have an internal communication module which provides wireless data connectivity, enabling DHBVN to remotely disconnect power supply in case of bill payment default or any other violation. Any consumer planning to switch to the prepaid option first needs to download the ‘Smart Meter’ application on their smartphone. The app will ask for the consumer’s phone number to register for the switch. Consumers can also call the toll-free number 1912 for instructions.

Adani to invest INR20 bn to build 2 transmission lines in Mumbai city
20 Auust: Adani Electricity Mumbai is investing over INR20 billion to build two new transmissions lines in the city to strengthen its network as it moves closer to go more green by sourcing as much as 60 percent of the energy needed for the city from renewables by 2027. The two new transmission lines comprise the 84 ckm Kharghar (in Navi Mumbai) Vikhroli line in the northeastern suburb of the megalopolis and the Thane-Aarey Colony line. The Vikhroli line will be ready by 2025. The transmission lines project involves developing the city’s first-ever 400 kilovolt (kV) substation facility. The Kharghar-Vikhroli project comprises 34 km of 400 kV and 220 kV transmission lines, including a 400 kV substation at Vikhroli. This project is critical to the city as the existing capacity of the transmission corridor is not sufficient to carry further power into the city. This project would enable additional power of 1000 megawatt (MW) to be brought into Mumbai and would thus help in meeting the future dmand of the city. Adani received the licence for the project in December 2019.

India’s peak power demand hits record 234 GW on rising temperatures
18 August: India’s peak power demand breached all previous records on August 17 as the country clocked a demand of 234,058 megawatt (MW) or 234 gigawatt (GW) owing to rising temperatures and humidity. According to data presented by the India Meteorological Department (IMD), rainfall went from a positive 15 percent in July to a negative 36 percent in August as 263 out of 717 districts in India received inadequate rainfall. However, the demand that could not be met, also known as the peak demand deficit, stood at 7,255 MW. The unusually high peak demand deficit reflects that several parts of the country are facing power cuts. Even as urban areas might not feel the pinch, the real impact of the deficit plays out in the form of power cuts in India’s rural areas. Uttar Pradesh had a shortage of 800 MW in meeting its peak demand on 17 August, whie Bihar had a deficit of 207 MW. Rajasthan too has been witnessing power cuts, especially in its industrial and rural areas.

National: Non-Fossil Fuels/ Climate Change Trends
1.3k government buildings in Patna to get solar panels soon
22 August: In a bid to reduce the consumption of electricity produced by coal and promote green energy, the Bihar Renewable Energy Development Authority (BREDA) has geared up to install rooftop solar panels at around 1,300 government buildings, including offices, hospitals, schools and other buildings, in the state capital. In the first phase, school and hospital buildings will be covered on priority basis. These selected buildings have been divided into two categories as per the consumption. Out of the 1,300 buildings, rooftop solar panels above 40 kilowatt (kW) load will be installed at 300 buildings. At the same time, solar panels of less than 40 kW will be installed at 1,000 buildings. The BREDA has set a target of three months to complete the instalation process. According to BREDA, a target has been set to generate 65 megawatt (MW) of electricity by equipping 1300 buildings in Patna with solar panels. The works of installation of solar panels would be further expanded in other cities after Patna in a phased manner. It will also be started in cities like Muzaffarpur, Bhagalpur, Gaya and Darbhanga in the next phase.

Renewables to account for 65 percent of India’s energy mix by 2030: Singh
22 August: Union Power Minister R K Singh said renewables will account for 65 percent of the country’s energy mix by 2030. India has 186 GW non-fossil fuel-based installed power generation capacity at present, the Union Minister of Power, New and Renewable Energy said.

NLC India signs pact with Rajasthan government for 300 MW solar power supply
18 August: NLC India said it has entered into an agreement with Rajasthan Urja Vikas Nigam (RUVNL) for supplying 300 megawatt (MW) of solar power under the CPSU scheme. According to the coal ministry, NL’s 300 MW solar project capacity is under execution at Barsingsar, Bikaner district, Rajasthan. The engineering, procurement, and construction (EPC) contract for the project has been awarded to Tata Power Solar Systems through competitive bidding. The power usage agreement (PUA) for the 300 MW solar project was signed between NLC India and RUVNL on 17 August at Jaipur for supply of solar power to the State for the next 25 years. Tamil Nadu-based NLCIL has 1,421 MW of renewable energy capacity. As per the corporate plan of the company, it contemplates establishing 6,031 MW capacity by 2030. The project will help Rajasthan meet its renewable purchase obligation targets. The power generated from the project will help in the reduction of carbon emissions to the tune of 0.726 million tonnes of carbon dioxide emissions every year.

ONGC to invest INR1 trillion by 2030 to transform into low-carbon energy player
17 August: Oil and Natural Gas Corporation (ONGC) is investing INR1 trillion by th end of this decade in low-carbon energy opportunities, including renewables and green hydrogen as it looks to transform into a low-carbon energy player, the company said. It said the firm has adopted various de-carbonization levers resulting in significant emission reductions over years. The firm is in an advanced stage of crafting collaborations with leading players in the energy space on various low-carbon energy opportunities including renewables, green hydrogen, green ammonia and other derivatives of green hydrogen. ONGC is also actively exploring collaborations with leading players to leverage various low-carbon energy opportunities including renewables, green hydrogen, green ammonia and other derivatives of green hydrogen. Also, the focus is on research and development in carbon capture, utilization, and storage (CCUS) technologies to mitigate emissions from existing processes.

Tamil Nadu’s solar power generation hits a new record
17 August: Tamil Nadu’s solar power generation it a new record reaching 4,882 MW on 16 August. This surpassed the previous record of 4,866 MW set on 26 February 2023, Tamil Nadu Generation and Distribution Corporation (TANGEDCO) said. The State also recorded solar consumption of 36.10 million units on August 16, which is the highest so far this year, it said. On 16 August, the State’s peak power demand was 16, 744 MW and daily consumption was 355.050 million units. According to data from Central Electricity Authority (CEA), Tamil Nadu’s cumulative solar generation was 520.70 million units so far in August. Tamil Nadu has an installed solar capacity of 6,750.62 MW (including rooftop solar).

International: Oil
US energy firm payouts to oil investors top exploration spending for first time
22 August: Top United States (US) energy companies last year paid out more of their earnings to shareholders than they invested in new oil and gas fields for the first time. The outlook for stronger energy prices has not changed the focus on investr returns from the US industry, according to the report’s authors, Ernst & Young LLP. US energy companies have been focused on regaining favor with investors after years of overspending on production growth hurt returns and put them in the doghouse. Spending on dividends and share buybacks by the top 50 US independent oil and gas producers hit US$58.8 billion last year, topping the US$55.1 billion allocated to exploration and development, according to the EY research.

China’s Saudi crude imports to remain depressed through third quarter
21 August: China’s crude oil imports from top exporter Saudi Arabia are expected to remain depressed through the third quarter, analysts said, after its customs office reported inbound shipments from the kingdom fell to their lowest in 13 months in July. Chinese crude imports from both Russia and Saudi Arabia have dropped with the output cuts made by members of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group know asOPEC+. Saudi Arabia has in addition volunteered to cut output by another 1 million barrels per day (bpd) from July through September. Imports from Saudi Arabia in July came in at 5.65 million metric tonnes, or 1.33 million bpd, the lowest since June 2022, China customs data showed. July’s Saudi imports slipped 31 percent from June and are down 14 percent from a year earlier. Oil imports from Russia, a member of OPEC+ and China’s largest supplier this year, fell around 26 percent month-on-month in July to 1.9 million bpd as sanctions-imposed discounts on ESPO grade crude have been steadily eroded by rising Indian and Russian domestic demand. Moscow has also pledged to cut exports by 500,000 bpd in August to cater to stronger domestic refining demand.

Exxon proposes sixth oil project in Guyana for US$12.9 bn
21 August: Exxon Mobil Corporation and partners plan to spend US$12.93 billion to develop their sixth offshore oil project in Guyana. The floating production platform for the so-caled Whiptail project would start operations in 2027 and bring the Exxon-led consortium’s oil output in Guyana over 1.2 million barrels per day (bpd). Guyana has emerged as the world’s fastest-growing new oil province in a decade with discoveries of more than 11 billion barrels of oil and gas. Exxon and partners Hess Corporation and CNOOC Ltd produce 400,000 bpd from two vessels and have said they could develop up to 10 offshore projects.

Most markets in Gulf track oil prices higher
21 August: Most major stock markets in the Gulf tracked oil prices higher, although the gains were limited after China, the second-biggest economy in the world, delivered a smaller cut to lending rates than markets had counted on. Oil prices – which fuel the Gulf economy – rose as global supply is tightening with lower exports from Saudi Arabia and Russia, offsetting nagging concerns about global demand growth amid high interest rates.

No pressure from government on fuel prices: Brazil’s Petrobras CEO
16 Auust: Brazil’s Petrobras was not pressured by the federal government to refrain from raising local fuel prices, its CEO (chief executive officer) Jean Paul Prates said, after the state-run oil company announced a major hike in gasoline and diesel prices to track an “abrupt” global spike. The move was welcomed by investors but is likely to upset the government, which has vowed to keep prices at the pump affordable, and brings renewed inflation fears just as the central bank started lowering interest rates. Petrobras had been operating at discounts to international rates for weeks and until the price hike announced, markets had speculated on government interference. The price increase, which would raise average gasoline and diesel prices by 16.3 percent and 25.8 percent respectively, is the first by the oil giant since a new pricing policy was implemented under President Luiz Inacio Lula da Silva in May. Prates said the weeks Petrobras spent without increasing prices were to avoid passinginternational volatility onto customers, as the new policy intended. However, as global oil prices consolidated at higher levels following seven weeks of gains, Petrobras had to hike local prices to avoid losing money, CEO said.

Sri Lanka scraps US$3.85 bn foreign-funded oil refinery deal
16 August: Sri Lanka announced it was scrapping a US$3.85 billion deal to build an oil refinery that was set to become the island’s largest foreign investment. Energy Minister Kanchana Wijesekera said the government would seek a different foreign partner to set up a refinery primarily for the export of petroleum products. China’s Sinopec and Vitol had been short-listed to set up what would become the island’s second oil refinery, near the Chinese-managed southern port of Hambantota, he said. Some 1,200 acres (485 hectares) of land allocated for the refinery were taken back, he said.

International: Gas
Asian buyers may seek US LNG if Australia worker disputes worsen
22 August: Major Asian buyers of lquefied natural gas (LNG) could seek US (United States) cargoes in the coming weeks if worker-related disputes at key LNG facilities in Australia escalate, analysts said, as electricity demand continues surge due to warm weather. Uncertainty over labour disputes at western Australian facilities run by Woodside Energy Group and US major Chevron have spurred Asian LNG prices to their highest in five months, and analysts say they could rise further. US LNG exports to Asia snapped an eight-year growth streak and plunged 44 percent in 2022, data from analytics firm Kpler showed, as European buyers paid a premium for Atlantic LNG to make up for lost imports from Russia, its main gas supplier.

Sinopec boosts reserves by 30.55 bcm in deep tight-gas field in Sichuan Basin
21 August: Sinopec Corp has received certification for another 30.55 billion cubic meters (bcm) of proven geological reserves in a deep natural gas reservoir in the Bazhong gasfield of the Sichuan basin, the company said. Thenew reserves, certified by the Ministry of Natural Resources, brought Sinopec’s total proven geological reserves in the northeastern part of the Sichuan basin to 154.7 bcm, the company said. Tight gas refers to natural gas found in reservoir rocks with low permeability, most often sandstone. Sinopec described the reservoir in the Bazhong field as being typical extra-deep, some 4,550-5,225 meters below the surface. It said a task force has been set up to meet the technological challenges in order to optimise exploitation of the field. The Sichuan basin is one of China’ largest natural gas sources alongside Erdos basin in the north, where top energy major PetroChina dominates drilling, and the offshore Bohai Bay basin, operated mostly by CNOOC Ltd.

Unions notify Woodside they may strike at key Australia gas platforms
20 August: Unions at Woodside Energy Group’s North West Shelf offshore gas platforms announced plans to strike as early as 2 September, which could eventually disrupt shipmnts of liquefied natural gas (LNG) from top global exporter Australia. The strike threat escalates a long-running dispute between Woodside and workers over pay and conditions on its North West Shelf gas platforms, which feed Australia’s biggest LNG plant. Woodside’s and Chevron’s facilities together supply about 10 percent of the global LNG market. Concerns about a strike have spurred volatility in European gas prices over fears the move would fuel competition between Asian and European buyers for cargoes.

Hungary will receive LNG from Qatar starting in 2027
18 August: Hungary can begin to receive shipments of liquefied natural gas (LNG) from Qatar in 2027, Hungarian Foreign Minister Peter Szijjarto said. Demand for LNG has skyrocketed following Russia’s invasion of Ukraine, giving Qatar and the United States (US) significantly larger roles in supplying gas to Europe, and forcing landlocked countries, such as Hungary, to seek to diversify their energy sources. Qatar, the world’s bigget LNG exporter, has no spare export capacity until 2027, Szijjarto said. Under a 15-year deal signed in 2021, Hungary currently receives 4.5 billion cubic meters (bcm) of gas per year via Bulgaria and Serbia under a long-term deal with Russia.

Abu Dhabi’s ADNOC Gas signs 5 year LNG supply deal with JAPEX
17 August: Abu Dhabi’s ADNOC Gas said it has signed a five-year deal to supply liquefied natural gas (LNG) to Japan Petroleum Exploration Company (JAPEX). The deal is valued at between US$450 million to US$550 million, ADNOC Gas said, without providing LNG volumes or timing for the shipments start. The deal follows Japanese Prime Minister Fumio Kishida’s visit to the UAE and other Gulf states in July, which focused on securing energy supplies for Japan, which remains highly dependent on oil and gas imports.

International: Coal
Explosion at coal mine kills 11 in northern China
22 August: Authorities said at least 11 people were killed on the outskirts of the historic city of Yanan in he mountainous Shaanxi province. The explosion took place at the Xintai Coal Mine near Yanan. China remains dependent on coal for the bulk of its energy and is the world’s largest producer and consumer of the fuel.

South Africa Church fights class action against coal mines
16 August: The Catholic Church said it is shepherding a class action against mining companies in South Africa on behalf of coal miners who suffered from lung disease. The Southern African Bishops Conference said lawyers filed papers with South Africa’s High Court. Filed on behalf of 17 former and current mine workers, the case targets global mining giant BHP, its spin-off South32 and South Africa’s Seriti, Dasantha Pillay, a lawyer with Spoors’ firm, told AFP. South32, which was active in South Africa’s coal sector between 2015 and 2021, confirmed it was notified of the class action. Coal is a bedrock of South Africa’s economy, employing almost 100,000 people and accounting for 80 percent of electricity production. espite knowing the risks to coal miners, the companies failed to provide their workers with adequate training, equipment, and a safe working environment, according to the class action.

International: Non-Fossil Fuels/ Climate Change Trends
Germany set to miss net zero by 2045 target as climate efforts falter
22 August: German goals to cut greenhouse emissions by 65 percent by 2030 are likely to be missed, meaning a longer-term net zero by a 2045 target is also in doubt, reports by government climate advisers and the Federal Environment Agency (UBA) show. The European Union has sought to be a climate leader and Germany has set itself more ambitious targets than the bloc as a whole, but in many countries politics and the economic crisis have pushed the climate crisis down the agenda. Germany aims to cut its carbon dioxide emissions by 65 percent by 2030 compared with 1990. Last year its CO2 levels were already 40 percent below the 1990 level, but the new reports said that was not enough

Renewables companies hit brakes on Alberta projects after government delays approvals
21 August: Alberta’s seven-month pause on approving new renewable power projects in the Canadian province has caused four major international companies at various development stages to stop work on their plans. Alberta paused approvals on 3 August of new renewable electricity generation projects over one megawatt until 29 February, chilling investment in the fast-growing industry. The pause is necessary to address concerns about renewables’ reliability and land use. The move has increased tensions between Smith and Prime Minister Justin Trudeau’s Liberal government, which is drafting regulations to force provinces to eliminate greenhouse gas emissions from their grids on a net basis by 2035.

US places tariffs on some big solar companies for dodging China duties
18 August: The United States (US) finalized a decision to impose import duties on solar panel makers who finished their products in Southeat Asian nations to avoid tariffs on Chinese-made goods, according to Commerce Department. The decision, which largely mirrors a preliminary finding the agency made in December, was opposed by buyers of solar panels that rely on cheap products made overseas to make their projects competitive. But it is good news for the small US solar manufacturing industry, which for years has struggled to compete with Chinese goods and is enjoying renewed investment due to subsidies in US President Joe Biden’s landmark climate-change law. The US has had anti-dumping duties in place for a decade on Chinese-made solar products after a Commerce probe found Chinese companies were receiving unfair government subsidies that kept their prices artificially low. The solar industry said the Commerce decision will jeopardize the boom in solar manufacturing spurred by the Biden administration’s Inflation Reduction Act.

US investor group clinches tax credit deal for US$1.5 bn renewable power acquisition
16 August Invenergy Renewables, Blackstone and Canada’s second-largest pension fund said they struck a deal with Bank of America to help buy wind and solar plants worth US$1.5 billion, capitalising on a new tax structure included in US (United States) President Joe Biden’s landmark climate law. Developers and investors are working on ways to take advantage of a provision in the 2022 Inflation Reduction Act which gives companies tax breaks for funding the clean energy projects which can help wean the world off fossil fuels. Invenergy said it agreed to sell tax credits worth US$580 million to Bank of America, and put those funds towards buying 14 projects from American Electric Power. Policymakers hope the new system will bring more money from fresh sources into renewables projects which have long relied on a limited group of large banks which can handle the process of buying equity stakes and taking the associated tax breaks.

This is a weekly publication of the Observer Research Foundation (ORF. It covers current national and international information on energy categorised systematically to add value. The year 2023 is the twentieth continuous year of publication of the newsletter. The newsletter is registered with the Registrar of News Paper for India under No. DELENG / 2004 / 13485.

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