Power News Click:Aperiodic (Aniyatkalik): �(21^st Dec 2023 tp 15^th Jan 2024)

• DEL's Winter power Demd hits record high amid cold wave
• IEX Dec volumes surge 14.9% YoY, hitting 9,707 MU
• GOI revises RT Solar Subsidies to amplify clean energy reach
• “Ayodhya” to emerge as model in clean energy production with establishment of 40 MW Solar Plant
• India surpasses Japan to become third-largest auto market, eyes top spot in EV
• India awarded over 8 GW tenders for Energy Storage Systems in 2023: Report
• India's Coal production rises 10.75% in Dec 23, hits 92.87 MMT; CIL leads with roboust growth & some more issues
• MSAPL issues tender for 160 MW/366 M solar projects under �PM KUSU
• India's power sector reform: New Rules to ease business, cut Dist losses & an article by Former Member CEA
• World's biggest NUC plant in Japan to resume path towards restart
• What is a Microgrid (MG) with a case study
• China saw hottest recorded year in 2023

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Happy New Year 2024!!

Evening Peak Demd met (GW) & Energy Met (MU)�(Source:Grid Controller of India Ltd)

DEL's winter power Demd hits record high amid cold wave

• Delhi's peak power demand reached 5,611 MW, breaking the previous winter record of 5,559 MW set on Jan 5. The increase in demand is primarily due to consumers using more electricity for heating purposes.
• As per real-time data of SLDC Delhi, peak Demd was 5611 MW at 11:08 am on 10/01 The spike in power Demd is mainly due to enhanced use of electricity by consumers for heating purposes.
• The minimum temp in Delhi on 05/01 was 7.1 degrees Celsius. The city on 08/01 recorded its coldest day of the month so far as the minimum temp dropped to 5.3 degrees Celsius
• DEL surged to an all-time high of 5,701 MW at 1049 Hours on Friday 12^th Jan morning. It is estimated that DEL’s winter peak Demd to reach to 5,760 MW this year.
• Since Jan 1, 2024, Delhi's peak Demd has increased by over 8%. Barring Jan 2, Delhi's peak Demd this month has remained above the 5,000 MW mark.
• BRPL was handling 2350 MW & BYPL 1174 MW. Notably, up to 60% of the peak winter power dend in BSES area (3600 MW) is met by GREEN Power

IEX Dec volumes surge 14.9% YoY, hitting 9,707 MU (05/01)

• IEX reported a 14.9% YOY increase in its overall volume for Dec 2023, with a total of 9,707 MU traded. This includes 10.52 lakh RECs, equivalent to 1052 MU.
• Real-time electricity market (RTM) experienced a substantial surge, jumping from 1,763 MU in Dec 2022 to 2,405 MU in Dec 2023: a remarkable 36.4% YOY increase.
• Trading volume in Dec 23: 8655 MU (rise of 8.7%). In Q3 of FY 24, Total volume: 28,326 MU, 16.9% growth YOY
• In Dec '23, India's overall energy consumption remained almost flat at 119.07 BU (9707 MU thro’ IEX which is 8.15% of TTL Consumption)
• Day-Ahead Market (DAM) volume stood at 4,798 MU in Dec 23 compared with 5,001 MU in Dec 2022.
• DAM registered TTL volume of 14,684 MU in the Q3 up 1.5% YoY.
• In DAM, MCP was reported at Rs. 4.54 PU (13% decrease YOY)
• Day Ahead Contingency & Term-Ahead Market (TAM), comprising of contingency, daily, weekly & monthly contracts up to 3 months, traded 1,220 MU during Dec, up 48.4% on YoY basis.
• TTL volume on the segment during Q3 stood at 3,810 MU, up 91.4% over Q3 FY23.

• IEX Green Market, comprising Green Day-Ahead & Green Term-Ahead Market segments, achieved 232 MU volume in Dec 23.
• During Q3, FY24, the segment achieved volume of 609 MU.
• "Green Day-Ahead Market (G-DAM) achieved 216.6 MU volume during the month, with a weighted average price of Rs 4.86 PU.
• The segment saw participation from 187 market participants during Dec 23. During Q3 FY24, the segment achieved volume of 579.6 MU," IEX said.
• Green Term-Ahead Market (G-TAM) achieved 15.4 MU volume in Dec 23, IEX said, with AVG monthly price of Rs 6.08 PU (non-solar).
• For Q3 FY24, the segment achieved volume of 29.9 MU. In case of Renewable Energy Certificate (REC) market, a total of 10.52 lakh RECs (equivalent to 1052 MU) were traded in the trading sessions held on 13 Dec & 27 Dec, 2023, at a clearing price of Rs 370 per REC and Rs 360 per REC, respectively.
• "REC traded volume in Dec 2023 increased by 115.9% on YoY basis. A total of 20.24 lac RECs (equivalent to 2,024 MU) were traded during Q3 FY24. The next REC trading sessions at PEXs are scheduled on 10th Jan 2024 & 24th Jan 2024," (2^nd & 4^th Wed) IEX said.

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Share of power market in TTL electricity sales in India will soon rise to the targeted 25%, given the various structural reforms being undertaken in the sector, Rohit Bajaj, ED IEX tells

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GOI revises RT Solar Subsidies to amplify clean energy reach (09/01)

• MNRE has revised financial aid for RE residential solar installations, under Phase-II to bolster the use of clean energy. This adjustment in Central Financial Assistance (CFA) will influence all upcoming bids & is expected to accelerate the adoption of solar RTs
• For individual H/H projects with a capacity between 1 to 3 kW, the subsidy has been set Rs 18,000/ kW for general States & Rs 20,000/KW for special category states, which include the NER, Sikkim, U’khand, HP, and UTs (J&K, Ladakh, L’Dweep & A&N islands.
• Projects above 3-10 KW are now subsidized at Rs 9,000/ kW in general states and Rs 10,000/KW for SPL category states.
• The scheme also provides CFA for common facilities up to 500 kW in RWAs & Group HSG societies maintaining the aid at Rs 9,000/ kW for general states & Rs 10,000/kW for SPL category states ..
• The new rates will apply to all future bids that are scheduled to be closed post 20 Jan & for all bids submitted after the issuance of the revised rates on January 5.
• Ministry has directed implementation agencies to carry out a tendering process for rate discovery & vendor empanelment in accordance with existing guidelines. The CFA will be calculated. based on the tender cost, adhering to the stipulated % for various capacities

“Ayodhya” to emerge as model in clean energy production with establishment of 40 MW Solar Plant (06/01)

• Ayodhya is taking strides towards clean energy solutions to address its energy requirements. Work of development & operation of a solar power plant capable of generating 40 MW in Majha Rampur Halwara village of Navya Ayodhya has reached the final stage, spinning over 160 Acres with Rs 200 CR Capex.
• Land has been provided by UP Govt Admin on lease of Rs 1/ Acre/year for 30 years to UPNEDA which in turn has engaged NTPC Green Energy Ltd to operate the plant.
• For Development & operation of plant NTPC has contracted Jackson Solar, thro’ a PPA. The plant will produce 8.65 CR units of power/ year.
• A total of 104580 solar panels with a power O/P of 550 & 555 Watts are installed in the plant. Schedule inauguration of the plant is on 22 Jan 2024 initially operating at 10 MW Gen capacity. When operated at full capacity of 40 MW, this plant will be able to meet 10% of electricity consumption of Ayodhya The electrical energy generated from the plant will be transmitted to the Darshanagar s/s thro’ 132/33 KV O/H Power lines
• The initiative is poised to become a significant milestone in Ayodhya's journey to establish itself as a model solar city. Furthermore, it will set the stage for transforming Ayodhya into a city powered by solar energy.

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Jakson Group installs 250 kW solar RT at “Ayodhya” Airport (04/01)

• Jakson Group has upgraded the energy infrastructure of Maharishi Valmiki International Airport in Ayodhya, by installing a 250 kW solar rooftop & equipped the airport with a cutting-edge solar RT & reliable power backup thro’ 3 best-in-class diesel Gens (3×500 kVA).

KERC approves tariff of Rs 3.57 PU for RT solar projects (04/01)

• KARNATAKA ERC (KERC) has granted a favorable decision to two RT solar consumers, affirming their eligibility for a tariff of Rs 3.57 PU for the net energy injected into the grid. Nevertheless, KERC clarified that the right to this entitlement depends on the petitioners entering into new PPAs within a 2-month timeframe.

India surpasses Japan to become third-largest auto market, eyes top spot in EV (12/01)

• “India has overtaken Japan to become the world's third-largest automobile market”, said Gadkari Minister GOI in Vibrant Guj 2024 summit.
• He informed a remarkable 500% increase in EV sales in 2023 compared to 2021, projecting an annual growth rate of 50% by 2030. He is anticipating annual EV sales of 1 CR & creation of 5 CR jobs by 2030, spurred by Li-Ion battery costs
• MN Pandey Minster for Heavy IND reflected on GOI’s continuous efforts since 2015 to create an EV-friendly ecosystem, with plans to commence production of Advanced Chemistry Cell (ACC) batteries by FEB 2024

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Govt is pressing hard for consumers to use EVs. The reality of EV charging stns in Delhi is seen in this pic. Policy makers need to seriously think on the Ground reality rather than only advertisements

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India awarded over 8 GW tenders for Energy Storage Systems in 2023: Report

• According to a recent report, India has awarded over 8 GW of energy storage systems (ESS) tenders, with 60% of those tenders allocated in 2023.
• MOP has also notified a long-term trajectory for Energy Storage Obligations (ESO). This trajectory aims to ensure that obligated entities have sufficient storage capacity. ESO will gradually increase from 1% in FY 2023-24 to 4% by FY 2029-30, with an annual increase of 0.5%.
• Pumped Hydro Storage (PHS) dominates the ESS market, accounting for more than half the grid-scale tender capacity issued in India in 2023.
• An in-depth analysis of India's burgeoning ESS sector reveals its poised growth in the coming years, aligning with the exponential rise of RE sector globally.
• Report, emphasizes the crucial role of ESS in overcoming the intermittency of RE, ensuring a continuous & reliable energy supply. The exponential surge in RE installations within the past decade has exposed the grid infrastructure to increased risks arising from REs’ intermittent & variable nature, especially solar & wind.
• ESS is crucial in overcoming this intermittency & enabling a continuous energy supply when needed. Thus, for sustainable RE addition, a concurrent growth of ESS capacity is also imperative.

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• Battery-based ESS (BESS) & pumped hydro storage (PHS) stand out as the most widespread & commercially viable means for implementing ESS solutions in India. The report anticipates that green H2 will play an increasingly significant role in India's RE mix in the coming years.
• CEA estimates a substantial need for about 42 GW BESS & 19 GW PHS capacity by 2030 to meet India's evolving energy landscape.
• Large, grid-scale ESS projects are identified as critical in fulfilling these future energy needs, with the latest demand-driven Firm & Dispatchable RE (FDRE) tenders presenting an ideal model for India. FDRE tenders, first issued in 2023, are demand profile-driven tenders to ensure firmness & dispatch ability of RE & create a win-win scenario for power developers & off-takers.”
• FDRE represents the latest & most advanced iteration of tender models, with tariffs already comparable to, if not lower than, traditional fossil fuel-based power Gen. With longer tenures of up to 25 years, the tariffs of mature grid-scale FDRE storage projects are expected to become even more attractive.
• Falling ESS costs, especially for BESS, & sustained cash flow over a longer duration enable ESS developers to offer lower tariffs. Policy measures, including ESO targets, are creating a conducive environment for ESS projects.
• However, obstacles to expansion of ESS persist, such as high initial CAPEX, longer gestation periods (especially for PHS projects), suboptimal infrastructure, & a lack of Dom manufacturing, highlighting potential supply chain risks.
• India's ambitious plan to increase its Variable RE (VRE) installed capacity from 117 GW to more than 392 GW by 2030 necessitates a simultaneous growth in ESS capacity to support this surge in VRE penetration.

GOI launches Lakshadweep’s first on-grid Solar project with Battery Storage (10/01)

• PM inaugurated Lakshadweep’s first on-grid solar project with a battery energy storage system. (BESS)
• Developed by SECI, the project spans islands of Kavaratti & Agatti with a combined solar capacity of 1.7 MW & 1.4 MWh battery storage facility at Kavaratti.
• The move towards sustainable energy solutions is poised to reduce reliance on diesel-based Gen plant at Kavaratti. The project is estimated to result in comm savings of approxi Rs 2.5 Bn.
• This initiative is expected to significantly cut diesel consumption by up to 19 Mn litres & offset 58,000 tonnes of CO2 emissions.

CERC notifies draft CERC (Terms & Conditions of Tariff) Regulations, 2024 (10/01).

• As per the draft, tariffs for Gen stns & emission control systems, if applicable, can be determined for the entire station or unit, while Trans system tariffs apply to the whole system or its elements.
• For units or systems in COD before April 1, 2024, a consolidated petition must be filed for tariff determination from April 1, 2024, to March 31, 2029.
• The tariffs for communication systems associated with Trans, operational before April 1, 2014, shall follow the methodology approved by CERC before that date.
• Further, GENCOs must apply for supplementary tariff determination for emission control systems in coal or lignite-based THM stations within 90 days of their operation, following the specified regulations.

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India's Coal production rises 10.75% in Dec 23, hits 92.87 MMT; CIL leads with roboust growth (03/01)

• According to an official statement, India's coal production increased by 10.75% to 92.87 MMT in Dec 2023, compared to Dec 22. This increase is part of a broader rise in output and dispatches in the sector.
• Cumulative Coal Production (up to Dec 2023) has seen quantum jump to 684.31MMT in FY’ 23-24 as compared to 608.34 MT during AR-Dec 22. A growth of 12.47 %.
• Coal India operates through 83 mining areas in 8 States of India. Coal India Ltd (CIL) and its subsidiaries include:
• Bharat Coking Coal Ltd (BCCL)
• Central Coalfields Ltd (CCL)
• Eastern Coalfields Ltd (ECL)
• Western Coalfields Ltd (WCL)
• South Eastern Coalfields Ltd (SECL)
• Northern Coalfields Ltd (NCL)
• Mahanadi Coalfields Ltd (MCL)
• Central Mine Planning & Design Institute (CMPDI)
• Coal dispatch in Dec 2023, reached 86.23 MMT, showcasing notable progress compared to 79.58 MMT recorded in Dec 2022, with a growth rate of 8.36%. CIL dispatch stood at 66.10 MMT in Dec 2023, compared to 62.66 MMT in Dec 2022, representing a growth of 5.49%. The Cumulative Coal Dispatch (up to Dec 2023) has seen significant jump to 709.80 MMT in FY’ 23-24 as compared to 637.40 MMT during the corresponding period in FY’ 22-23, with a growth of 11.36 %.

The coal sector has witnessed an unprecedented upswing, with production, dispatch & stock levels soaring to remarkable heights. This growth is attributed to Coal PSUs, which has played a pivotal role in driving this progress. This underscores the dedication of coal supply chain, ensuring seamless dist of coal nationwide. Ministry of Coal reaffirms its commitment to maintaining consistent coal production & dispatch, ensuring an uninterrupted supply for a reliable & resilient energy sector.

National Coal Index declines by 17.54%, indicates strong coal supply in India (11/01)

• National Coal Index (NCI) dropped 17.54% in Nov 2023, at 155.09 points compared to Nov 2022, where it was at 188.08 points. Low NCI indicates a strong supply of coal in the market, with sufficient availability to meet the growing demands.
• NCI is used to determine the premium & revenue share for raw coal transactions in India.
• NCI's downward trend indicates a more balanced market, with supply & demand aligning. With enough coal, India can meet growing demand & support its long-term energy needs.
• NCI peaked in June 2022 at 238.83 points, but has since declined. The Coal stockpile held by Indian coal Cos shows the IND's ability to maintain a stable supply for sectors that depend on coal.
• Coal is a valuable fossil fuel that is widely used for electricity Gen. It takes millions of years for coal to form, which is why it is categorized as a non-renewable energy source.

Coal Scam: Spl court convicts Maha-based Co., three of its former office bearers (06/01)

• A Special Court on 05/01 convicted a Maha-based CO Topworth Urja & Metals Ltd. (formerly known as Virangana Steels Ltd.) & three of its former office bearers for cheating, forgery & criminal conspiracy in a case related to the allocation of Marki Mangli-Il, Ill and IV coal blocks in Yavatmal Dist, Maha, to the Co.
• Anand Nandkishore Sarda, the then Director of Virangana Steels Ltd, Manoj Maheshwari, the former Director are the concerned officials
• Special Judge Sanjay Bansal convicted them under Section 120B, read with sections 417, 420, 468 and 471 IPC, and fixed January 11 and January 12, 2024, for the arguments on the point of the sentence.
• According to CBI, the case was an outcome of the preliminary enquiry to look into allegations of irregularities in the allocation of coal blocks between 1996-2003 (it’s over 25 year old case. Is it taken out selectively
• In the FIR, CBI alleged the accused “irregularly entered mining lease deeds under the name of Virangana Steels, which did not exist”. CBI further said the request to change the name of company to Topworth was not approved by the Ministry of coal on the grounds that there was a change in the shareholding pattern of the company.
• CBI had also claimed to have found during its inquiry that the company resorted to excessive mining, without augmenting the capacity of its existing sponge iron plant, in violation of norms

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(JUSTICE DELAYED IS JUSTICE DENIED) (WHY so much delay)??

MSAPL issues tender for 160 MW solar projects under �PM KUSUM (12/01)

• MSEB Solar Agro Power Ltd (MSAPL) has issued a request for proposals to purchase power from 160 MW solar projects under component C of PM-KUSUM program for feeder level solarisation. The projects will be established as a part of second phase of Mukhyamantri Saur Krushi Vahini Yojana Program.Bid submission deadline is Feb 27, 2024.
• If MSEDCL discover any new S/s in Amravati region that meet the prescribed criteria for interconnection at voltage levels of 11 kV / 22 kV / 33 kV before the bid due date, the option to acquire an additional 242 MW of solar power capacity is available.
• Solar power installations should be linked to voltage levels of 11 /22 KV/ 33 kV, or EHV level of S/s. The developer is obligated to manage the power evacuation process up to the designated delivery point & establish the necessary energy accounting infrastructure at their own cost. The developer will also take on the responsibility for arrangements of obtaining grid connectivity approvals for the project, with support from MSAPL. MSAPL has obtained 942 acres of revenue-generating land thro’ lease agreements to establish the foundational capacity. If private land is required, MSAPL has compiled a list of privately-owned land parcels that can be leased through its portal.

Maha issues tender for 366 MW solar project (15/01)

• MSEB Solar Agro Power Ltd (MSAPL) has issued a request for proposals to purchase power from 366 MW solar projects under component C of PM-KUSUM) program for feeder level solarisation. The project will be established as a part of 2^nd phase of Mukhyamantri Saur Krushi Vahini Yojana Program. The bid submission deadline is Feb 27, 2024.
• If MSEDCL discover any new S/Ss in the Solapur region that meet the prescribed criteria for interconnection at voltage levels of 11/ 22/ 33 kV before the bid due date, the option to acquire an additional 91 MW solar capacity is available.  MSAPL has obtained around 1,686 acres of revenue-generating land from GOM thro’ lease agreements, with sub-lease rent of RS 1/hectare/anuum.
• The yearly sub-lease fee for this revenue-generating land will amount to Rs 1/hectare. If bidders need private land, MSAPL has gathered a list of private land parcels that are open for leasing on its portal. The fundamental lease charge for these private lands will be Rs 125,000/ hectare/ annum or 6% of the ready reckoner rate, whichever is greater, with an annual escalation provision of 3%
• MSAPL has mandated the use of indigenously manufactured solar modules listed in the Approved List of Models & Manufacturers (ALMM)

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Jakson Green to ship 1^st green H2 electrolyser in few months

• Green H2 electrolyser’ has been a buzzword in green H2 space for past few days. This was specifically with regards to India’s first auction for GH production & electrolyser manufacturing subsidies.
• The auction was oversubscribed with Cos bidding for Govt sops to set up 3,428 MW manufacturing capacities annually as against 1,500 MW on offer.
• Jakson Green, an energy transition platform that recently launched a 100-MW electrolyser manufacturing plant,which it now plans to raise to 1 GW.
• The company will be shipping out their first green H2 electrolyser in a couple of months & is in advanced stages of partnering with technology providers for electrolyser manufacturing. While, the full-fledged production will begin in the next FY
• It has narrowed down a small pool of Cos, which are currently under evaluation for various technologies including PEM, AEM, or alkaline. These partnerships will be for both, manufacturing in India as well as abroad,
• Apart from the company’s recent MoU with RAJ Govt to set up a GH & Green Amonia Project, in phases, they are also looking at states such as GUJ, TN & Orissa for export oriented scale up.

NTPC declares winners of its 1,500 MW Wind-Solar Hybrid auction (02/01)

• Results for NTPC’s auction to develop 1,500 MW ISTS connected wind-solar hybrid power projects have been announced. The tender for the project was issued in Oct 2023. The project will be located anywhere in India.
• By quoting Rs 3.35PU, O2 Power & Sprng Energy have won 300 MW & 250 MW, respectively. ACME Cleantech Soutions & Juniper Green Energy have won 300 MW & 230 MW by quoting Rs 3.36 PU. While Avaada Energy has won 24 MW by quoting Rs 3.37 PU. Of the total tendered capacity, only 1,104 MW was auctioned.
• NTPC has mandated use of indigenously manufactured Solar modules listed in the Approved List of Models & Manufacturers (ALMM). Additionally, under the tender, only type-certified wind-turbine models issued by MNRE listed in Revised list of Models & Manufacturers will be allowed. Developers will be accountable for developing ISTS connectivity for the projects.

India's Power Sector Reform: New Rules eased business, cut Dist losses (16/01)

• MOP had introduced new rules aimed at facilitating ease of doing business for energy intensive Inds like green H2 manufacturers, & enhancing India's energy transition & security. These Regulations, part of broader strategy have helped reduce the losses of Discoms significantly, from 27% in 2014 to 15.41 in 2022-23 period

This reduction in losses in sector is as a result of a number of reforms & measures taken by GOI which include:

• Putting in place Rules to ensure timely payment of subsidy declared by Govt.
• Ensuring that tariffs are up to date: SERC
• Reducing the Legacy dues of GENCOs, under Late Payment Surcharge Rules, which have come down substantially from around Rs. 1.40 lakh CR. to around 0.52 lakh CR.
• Ensuring that GENCOs are paid on time/Ensuring Energy Accounting & Energy Audit
• Putting in place revised “Prudential Norms”: providing that no DISCOM or GENCO of a State Govt will be able to get loans from PFC / REC, if DISCOM is making a loss, unless the DISCOM, with the approval of the State Govt, works out a plan for loss reduction & files it with GOI, & adheres to that loss reduction trajectories.

• Putting in place an incentive of an additional borrowing space of 0.5% of GSDP if DISCOM puts in place loss reduction measures.
• Dist system has been strengthened Rs 1.85 lakh CR
• Adding 2927 new S/s & upgrading 3965 existing S/ss.
• 6,92,200 DTs have been installed,
• Feeder separation of 1,13,938 Ckt Km has been done &
• 8.5 Lakh CKt km of HT & LT lines have been added/changed, covering w high loss areas,
• Works like GIS, UG cabling, ABC etc. were taken up.
• Further, GOI has approved “Revamped Dist Sector Schemes” (RDSS) on 30.06.2021 with an outlay of Rs. 3,03,758 CR & Gross Budgetary Support of Rs. 97,631 CRs over a period of 5 years from FY 2021-22 to FY 2025-26.
• Under RDSS, DPRs of Loss Reduction works having total outlay of Rs. 1,21,778 CR (GBS: Rs. 77,920 CR) have been sanctioned till date.
• Loss making DISCOMs will not be able to draw funds under any GOI Power Sector Scheme ofunless they put in place measures for loss reduction.
• As per the 'Report on Performance of Power Utilities' published annually by PFC, Financial Losses of Dist utilities have also come down from Rs. 46,521 CR in FY 2020-21 to Rs. 31,026 CR in FY 2021-22 .

Remedy proves elusive: RDSS hasn’t yielded any large delta in the rate of reduction of such losses (12/01)

(Somit Dasgupta, Senior visiting fellow, ICRIER, & former Member, CEA)

• There has been a lot of chest thumping over the fact that AT&C losses in Indian Dist sector, which were close to 25% in 2015, now stands close to 15%.
• A 15% AT&C loss would mean that one has not been able to account for 15% of the power that was received in the periphery of a discom &, hence, this is a leakage in the system. And Discom is losing revenue to that extent
• If one were to put it in simplistic terms, had the discom been able to plug this leakage, it could have offered lower retail tariffs. Thus, in a system where retails tariffs are determined on a cost-plus basis (as in our case), it is the consumer who loses because of inefficiency of discom.
• Before examining whether this euphoria over AT&C loss of 15% is justified or not, it would be useful to see what GOI has done over the years to lower AT&C loss figures.
• The story began sometime in 2001, when “Accelerated Power Development Scheme” (APDP) was introduced. Under APDP, GOI provided soft loans/grants to the States to improve their Dist infrastructure, including metering.

• Assistance was, however, linked to the condition there would be a reduction in AT&C losses. Not all components of APDP scheme were supposed to help in lowering AT&C losses.
• Some components were for system strengthening that would enable discoms to supply better quality power , of course, a part of it was for metering, replacement of cables, etc, which would directly help in lowering losses.
• There have been several versions of APDP scheme, but what was common in all these was that they were linked to reduction in loss levels of Discom. The fact is that despite the thousands of CRs of Rs pumped into sector, actual reduction in losses was marginal, as can be seen in the graph.
• The approach changed when the Ujjwal Discom Assurance Yojana (UDAY) scheme was launched in 2015. For the first time, GOI desisted from giving money to the states &, instead, provided sops like increased supply of DOM coal, rationalisation of coal linkage, allowing coal swaps from inefficient to efficient plants, etc. The scheme was operated thro’ the issue of bonds, both by the States & Discoms.
• UDAY was never really a success & we went back to the old system of giving money to States thro’ the “Revamped Dist Sector Scheme” (RDSS), initiated in 2021-22 for a period of five years. The total money involved was substantial, at about `3 Trillion, which also included a budgetary support of a little less than `1 trillion.
• While RDSS scheme will come to an end in about 2 years’ time, GOI has announced the continuation of RDSS (as 2^nd phase) for another period of 5 years (beginning from 2026-27) with financial implications that are identical to those of the first phase.

• Now coming back to figure of 15% for AT&C losses for 2022-23. There is little reason to be merry, given a clutch of considerations.
• First, the estimate of 15% is a provisional assessment, perhaps meaning that it is based on unaudited figures. Once the accounts are audited, a completely different picture may emerge.
• Second, given the fact that we had already reached 16.42% in 2021-22, the reduction achieved in 2022-23 is marginal as it is only an improvement of about 1%. So we are actually back to our old niggardly reductions of about 1%/year which we had witnessed over the period 2012-13 to 2020-21.
• As can be seen from the graph, we had achieved a substantial reduction in AT&C losses in 2021-22 when the loss level reduced by just under 6% over the previous year.(Effect of Pandemic)

• However, what we must bear in mind is that 2020-21 was an abnormal year due to the pandemic. There were disruptions in revenue collection, consequent to which the loss figure actually went up by about 1.3% compared to the previous year (ie.2019-20). So what could have possibly happened was that the revenue that should have actually accrued in 2020-21 was made good in 2021-22, resulting in the massive fall in AT&C losses. Now that all the pending revenue has been accounted for in 2021-22, our AT&C loss reduction trajectory has also reduced to just meagre improvements.
• Instead of doing some soul searching, GOI was quick to publicise that we have achieved the loss level of near 15% as was planned when RDSS was launched. Nowhere did it mention that we were actually on 16.42% in 2021-22 and thus fared poorly in 2022-23.
• RDSS cannot be given the credit for reaching 15% AT&C losses since DPR have just been approved & money has been disbursed & now one is going thro’ the process of tendering. So nothing much is available on the ground today. To give an example, while about 220 Mn meters have been sanctioned, only about 0.8 Mn have actually been installed. Benefits, if any, will probably be visible in 2024-25 or, better still, in 2025-26.
• To sum up, reduction in AT&C losses remains as elusive as it was earlier. It only strengthens the thinking that it is more of a managerial issue rather than that of infrastructure. Of course, meters (especially pre-paid meters) do help, but they can only complement the managerial will to improve & cannot be a substitute.
• This author has always opined that given our political economy, doling out money to states will not turn around the Dist sector. The answer lies in privatising the discoms with Govt handholding. The oft quoted example is that of Delhi.

What is a Microgrid (MG)

How is a microgrid defined?

• MG is a self-sufficient energy system that serves a discrete geographic footprint, such as a college campus, hospital complex, business center or neighborhood.
• Within MGs are one or more kinds of Distributed energy (solar panels, wind turbines, combined heat & power, Gens) that produce its power. In addition, many newer MGs contain energy storage, typically from batteries. Some also now have EV charging stns.
• Interconnected to nearby buildings, the MG provides electricity & possibly heat/ cooling for its customers, delivered via sophisticated software & control systems.

MG defined by three key characteristics

1. A microgrid is local

• First, this is a form of local energy, meaning it creates energy for nearby customers. This distinguishes MG from the kind of large centralized grids that have provided most of our electricity for the last century. Central grids push electricity from power plants over long distances via T&D lines. Delivering power from afar is inefficient because some of the electricity – as much as 8% to 15% – dissipates in transit. A MG overcomes this inefficiency by generating power close to those it serves; the generators are near or within the building, or in the case of solar panels, on the roof.

2. A MG is independent

• Second, a MG can disconnect from the central grid & operate independently. This islanding capability allows it to supply power to its customers when a storm or other calamity causes an outage on power grid. In the US, the Central grid is especially prone to outages because of its sheer size & interconnectedness: more than 5.7 Mn miles of T&D lines.
• During US Northeast Blackout of 2003, a single tree falling on a power line knocked out power in several States, even across international boundaries into Canada. By islanding, a MG escapes such cascading grid failures.
• While MGs can run independently, most of the time they do not (unless they are located in a remote area, where there is no Xentral grid or an unreliable one). Instead, MG typically remain connected to the Central grid. As long as the Central grid is operating normally, the two function in a kind of symbiotic relationship.

3. A MG is intelligent

• Third, MG: especially advanced systems: is intelligent. This intelligence emanates from what’s known as the MG controller, the central brain of the system, which manages the generators, batteries & nearby building energy systems with a high degree of sophistication.
• The controller orchestrates multiple resources to meet the energy goals established by MG’s customers. They may be trying to achieve lowest prices, cleanest energy, greatest electric reliability or some other outcome. The controller achieves these goals by increasing or decreasing use of any of the MG’s resources, or combinations of those resources, much as a conductor would call upon various musicians to heighten, lower or stop playing their instruments for maximum effect.
• A software-based system, the controller can manage energy supply in many different ways. For Example. an advanced controller can track real-time changes in the power prices on the central grid. (Wholesale electricity prices fluctuate constantly based on electricity supply & demand.) If energy prices are inexpensive at any point, it may choose to buy power from the central grid to serve its customers, rather than use energy from, say, its own solar panels. The MG’s solar panels could instead charge its battery systems. Later in the day, when grid power becomes expensive, MG may discharge its batteries rather than use grid power.

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• MGs may contain other energy resources: combined heat & power, wind power, reciprocating engine Gens, fuel cells It adds greater complexity & nuance to these permutations.
• Working together via complex algorithms, the M’s resources create a whole that is greater than the sum of its parts. They drive system performance to a level of efficiency none could do alone. All of this orchestration is managed in a near instantaneous fashion: autonomously. There is no need for human intervention.

What a MG is not?

• Some people use the term to describe a simple distributed energy system, such as RT solar panels. A key difference is that a MG will keep the power flowing when the central grid fails; a solar panel alone will not. Many homeowners with solar panels are unaware of this fact & are surprised that they lose power during a grid outage.
• Simple backup Gens also are not MGs. Such systems are only employed in emergencies; MGs operate 24/7/365 managing & supplying energy to their customers.
• MGs have been around for decades, but until recently were used largely by college campuses and the military. So the total number of microgrids is relatively small but growing. But the pace of installation has picked up and is expected to grow dramatically as distributed energy prices drop & worries heighten about electric reliability because of severe storms, cyberattacks & other threats.
• Guidehouse expects global MG capacity to reach 19,888.8 MW by 2028, up from 3,480.5 MW in 2019, with North America & Asia Pacific as the centers of growth.

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Contact Lens Manufacturer Installs 780 KW RT Solar & MG at California Production Facility (05/01)

• Staar Surgical, a contact lens manufacturer, has installed a RT solar MG atop its production facility in Lake Forest, California to reduce energy costs & prevent operational downtime in the event of a grid outage.
• The 1.1 MW grid-tied Microgrid: designed, installed, & maintained by ReVamp Energy: is powered by a 780-kW RT solar array paired with SolarEdge DC-optimized inverters. The system was installed on the facility’s roof & 2 adjacent carports.
• The system features 1,752 modules & is projected to reduce Staar Surgical’s electricity costs by 50%, representing an annual savings of nearly $325,000. The MG will also help prevent further losses incurred by spoiled production runs due to power outages occurring during the manufacturing process.
• “Manufacturing contact lenses is a highly energy-intensive process that requires each lens to be heated in an industrial kiln continuously for several days,” said Jay Cutting, ReVamp Energy.

• “Any reduction in power of more than a few seconds has the potential to ruin an entire production run, leading to losses of potentially hundreds or thousands of dollars.
• “The increasing frequency of red flag weather events in California necessitated that Staar Surgical address the mission-critical challenge of identifying a cost-effective & sustainable method to safeguard production.”
• Any excess solar production will be stored using a 450-kW battery, which can provide up to 24 hours of backup power, depending on the facility’s load requirements. The company also opted to install a Disel generator to ensure production schedules can be maintained.
• In addition to providing the MG, ReVamp Energy also designed custom-made switchgear that automatically switch the site’s energy supply to utilize the generated backup power in the event of a power outage.
• The monitoring platform was provided by SolarEdge, allowing Staar Surgical & ReVamp Energy to analyze key parameters: such as solar energy production, consumption, & battery energy levels – in real time.

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World's biggest NUC plant in Japan to resume path towards restart (28/12)

• On Dec 27, 2023, Japan's NUC power Regulator lifted a ban on the Kashiwazaki-Kariwa NUC power plant, allowing it to resume the process of restarting. The plant has been offline since 2011 due to safety issues & Fukushima disaster.
• No-one was killed in the Nuclear Meltdown, but the Tsunami that caused it left 18,500 people dead or missing. Kashiwazaki-Kariwa plant was partially damaged in a 2007 earthquake, causing safety concerns & distrust among local municipalities.
• Then, March 2011 Fukushima disaster brought all 54 reactors in Japan to a halt & saw many shut down due to additional safety costs.
• Today, there are 33 unusable reactors in Japan. Twelve reactors have been restarted under tougher safety standards, & Govt wants to bring more than 20 others back online: a goal widely considered overly ambitious.
• Kashiwazaki-Kariwa NUC plant is located in Niigata prefecture, straddling Kashiwazaki City & Kariwa Village. It's the world's largest NUC power plant, with a capacity of 8,212 MW

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• Nuclear Regulation Authority (NRA) barred Tokyo Electric Power Company (TEPCO) from operating the plant in 2021 due to safety breaches. NRA approved a 20-year license extension in 2018, & work on safety measures is expected to be completed in Sept 24.
• Japanese Govt wants to rely on nuclear power to reduce its reliance on imported fossil fuels.
• Japanese Govt recently began a push to restart as many reactors as possible to maximise nuclear energy & meet decarbonisation targets. The resource-poor Japan believes NUC plants will help reduce its reliance on imported fossil fuels like LNG
• The Institute of Energy Economics predicts Japan's LNG imports will fall from 64 Mn tonnes this year to 58.5 Mn tonnes in the next FY. Shares in TEPCO soared after NRA indicated it would consider lifting the ban earlier this month.
• TEPCO President Tomoaki Kobayakawa said: TEPCO would provide its safety & security measures to local residents, who must approve a restart.

China saw hottest recorded year in 2023 (03/01)

• According to State media, 2023 was China's hottest year on record, with a National AVG temp of 10.7 degrees Celsius (51.3 degrees F). This broke the previous record of 10.5 degrees Celsius set in 2021.
• Record-setting temps were part of an unprecedented series of extreme events last year around the world: including heatwaves, droughts & wildfires that scientists say are being exacerbated by climate change. "Temp across most of China was higher by 0.5C-1C.
• Across China, 127 National weather stns broke records for daily high temps over the course of the year. 27 consecutive days of temps above 35C. Records continued as the year progressed, with the capital logging its hottest ever late Oct day, among others. Sept 2023 was also the warmest Sept on record, according to Reuters. Experts warn that global warming caused by GHG emissions makes extreme weather more likely.
• A recent jump in approvals for coal-fired power plants added to concerns that China will backtrack on its goals to peak emissions between 2026 & 2030 and become carbon-neutral by 2060.

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• A study released 2023, found that China's air pollution worsened in 2023, the first time it has done so in a decade.

Expansion of renewables -

• China has also turbocharged its use of REs in recent years, becoming the world's top producer of wind & solar energy.
• UN ENV Program said in Nov 23, that China was "likely" to meet its climate commitments, citing rapid implementation by Govt. It noted over half of all installed electricity gen capacity is now from non-fossil fuel sources, ahead of a 2025 target, & that share is forecast to continue growing.
• But Demd continues to increase, & energy security concerns have helped drive continued expansion & even overcapacity of coal-fired power, UNEP warned.
• As well as the record-smashing heat, 2023 also saw devastating floods across China's North. And in the winter, a persistent cold snap forced authorities to issue alerts across a vast area of China, with all-time Dec temp lows being recorded in multiple places.

Thanks !!!

An American Engineering Journal once sent a questionnaire to 100 eminent Engineers to elicit their opinion on:

• “As to what makes for the success of an engineer?”

Tabulated answers showed that:

“It was:

• 25% Technical Knowledge &
• 75% Human Engineering”.

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Richard Feynman: NOBEL PRIZE Winner: AMERICA'S GREATEST PHYSICIST:

FOR HIS GROUNDBREAKING WORK IN REMAKING THE THEORY OF QUANTUM ELECTRODYNAMICS.