PNC: Interesting Power Sector News �Aperiodic (A-niyatkalik): (26 Mar – 21 Apr 2024)

• Indian Power Sector: Recent Developments
• Developments in State Power Sectors
• Dist Franchisee: A reality check
• Community-scale Agrivoltaics powering Rural development thro’ RE
• Is India on the cusp of a Nuclear energy renaissance?
• How can AI transforms Energy sector?
• e-Cooking: Roadmap for achieving goals of “Mission LiFE” (LiFEStyle For Environment) by reducing GHGs & other pollutants
• GOM gets a proactive boost for promotion of Green power
• Enabling Energy Transition: Key trends & initiatives in Storage systems
• “CY 2023 was a record year for Wind installations as world ramps up Clean energy” GWC Report says
• 90% of Ukraine's Coal, Gas power Plants hit by Russian attacks: Ukraine Minister

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Compliled by:

Vijay L Sonavane

ME (Elect)

Date: 22^nd April 2024

All info in this PPT is collected from various open sources available on the internet & News papers. Opinions expressed/ remarks, are my own views, which are based on my LIMITED EXPOSURE. You need not agree with my opinion. I respect your views/ opinons

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

AI power consumption rises 1.4% to 129.89 BU in March 24

• AI consumption growth remained subdued at 1.4% to 129.89 BU in Mar 24 as compared to Mar 23 mainly due to pleasant weather & people did not feel the need for heating or cooling appliances, especially in North India.
• Highest supply in a day (peak Demd) rose to 221.70 GW in Mar 2024 as opposed to 208.92 GW in Mar 2023 & 199.43 GW in Mar 2022.
• MOP has estimated around 260 GW peak Demd during summer.
• MOP had estimated AI Demd to touch 229 GW during summer in 2023, but it did not reach the projected level in April-July due to unseasonal rainfall.
• Peak supply, however, touched a new high of 224.1 GW in June 23 before dropping to 209.03 GW in July 23

Peak Demd (in GW) in FY 23-24: AUG: 238.82, SEPT: 222.16, OCT: 204.77 NOV: 213,79, DEC: 213.79 JAN: 223.51 FEB: 222.72 MAR: 221.70

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AI Coal & Lignite production hits all-time high of over 1 Bn Tonnes

• For the first time ever, India's Coal & Lignite production has crossed one Billion Tonnes.
• Owing to favourable support from GOI resulting in capacity expansion, Coal & Lignite production has grown by more than 70% over the last 10 years
• India's TTL coal & lignite output was at 937 MMT in FY 2022-23
• In FY24, coal import for blending was around 22.20 MMT, while it was at 30.80 MMT in FY 2022-23. Savings to the tune of Rs 82,264 CR had been made thro’ reduction of coal imports in just one year.
• India is not very far from its next target to eliminate coal imports by 2025-26.

�India HEP output records steepest fall in nearly 4 decades�

• India experienced a drastic 16.3% drop in HEP output, the steepest decline in at least 38 years, due to erratic rainfal. This led to increased reliance on coal-fired power, with RE’s share in power Gen decreasing for the first time since commitments made at Paris climate talks in 2015.
• RE accounted for 11.7% of India's power output in FY 23-24 down from 11.8% , in FY 22-23.
• A 5-year low reservoir levels potentially boosting dependence on coal during a period of high demd before monsoon starts in June 24. Any impact on HEP output would not be visible before July 24
• HYD's share in AI total power O/P fell to a record low of 8.3% during FY 23-24 compared with an AVG of 12.3% in the 10 years.
• TTL power Gen rose 10.3% in 2023/24. India's dependence on fossil fuel for power hit a 5-year high of 77.2% in 2023/24.
• Globally, HEP output fell for only the 4^th time since 2000 due to lower rainfall & warmer temps brought about by the El Nino weather pattern, according to energy think tank Ember,
• AI HYD O/P the 6th-biggest HYD Power producer, fell nearly seven times faster than global AVG Ember data.

IEX Energy trade volume grows nearly 14%: all-time high of 110 BU in FY 24

• IEX has logged the highest-ever trade volume of 110 BU in FY 2023-24, (growth of nearly 14% YOY).
• 75.39 Lakh RECs, equivalent to 7,539 MUs, were traded during FY24, registering an increase of 26% YOY
• During FY24, sell liquidity on IEX increased by 16.9% Y-o-Y, which led to a decline in DAM (Day Ahead Market) prices by 12% from Rs 5.94 PU in FY23 to Rs 5.24 PU in FY24.
• During Q4 of FY24 (Jan-Mar 24), IEX achieved 30.1 BU volume across all segments, registering an increase of 15.7% annually.
• TTL volume comprises 25.9 BU from conventional power market segment, 1 BU from Green Market segment, & 32.48 Lakh RECs (3.2 BU).
• DAM prices on IEX reduced by 20% from Rs 6.08 PU in Q4 of FY23 to Rs 4.89 PU in the Q4 of FY24
• During Q4 of FY24, DAM volume stood at 14,916 MU against 14,301 MU in Q4 of FY 23, up 4.3% YoY.

• RTM was 7,505 MU during Q4 of FY24, 27% higher than 5,914 MU in Q4 of FY 23.
• Green Day Ahead Market (GDAM) achieved volume of 885 MU during Q4 of FY24 & 2,502 MU during FY23-24
• Green Term Ahead Market (GTAM) volume stood at 75 MU in Q4 of FY24
• Overall volume reached 9.8 BU in Mar 24 (Y-o-Y growth of 6.2%)
• Clearing price in DAM market in Mar 24 was Rs 3.91 PU, down 28 %, due to increased sell quantum.
• DAM volume was at 4,653 MU in Mar 24, (4,745 MU in Mar FY23)
• RTM volume also increased 32.8% to 2,786 MU in Mar 24 from 2,098 MU in Mar 23.
• During the entire FY 23-24, DAM volume reached 53,353 MU, up 4.3% from 51,151 MU in FY 22-23.
• RTM achieved 30,125 MU volume during the entire FY 23-24, up 34.6 % against 24,174 MU in FY 22-23.
• GTM was 725 MU during the entire FY 23-24

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India adds record 18 GW RE capacity in FY24 (15/04)

• India added a record RE capacity of 18.48 GW in FY 2023-24, which is over 21% higher than 15.27 GW in FY 22-23
• Solar installations of 12.78 GW led RE capacity in 2023-24, followed by 2.27 GW Wind energy.
• India's installed RE capacity is 143.64 GW as of March 31, 2024, excluding 47 GW Large HEP capacity (plants having more than 25 MW capacity).
• TTL solar installed capacity is 81.81 GW, followed by about 46 GW wind energy, 9.43 GW of biomass cogen & 5 GW SHYD
• Installed RE Capacities: Guj & Raj have the largest RE capacities of 27 GW each, TN: 22 GW, KAR: 21 GW & Maha 17 GW. HP & AP: 11 GW each
• To achieve 500 GW RE target, India needs to add 310 GW in the next six years or at an AVG of 50 GW/annum.
• 103 GW RE capacity is under construction & 72 GW under bids

India braces for summer heat: Gas-based Power stns set for full operation (16/04)�

• GOI ordered Gas-Based power Stns (GBSs) to operate from May 1 to June 30, 2024, in response to an expected increase in electricity Demd during summer. This move is intended to maximize availability of power from GBSs during this Summer.
• Many GBSs have remained unutilized due to commercial factors. IMD has predicted above-normal max temps, over many parts of India during the 2024 summer.
• THM power is the largest source of power in India, generating about 71% of AI electricity.
• Under Sec 11 of EA 2003, which allows GOI to direct power stns to operate under extraordinary circumstances, these plants are to be fully operational to ensure sufficient power supply
• GRID-INDIA (NLDC) will notify the GBSs well in advance, about the specific days when their power gen will be required.
• Stns with existing PPAs, must initially offer their power to their PPA holders. Any surplus power not purchased by PPA Holder, will then be available for sale on PEXs. Stns without PPAs are directed to offer their power in Open Market

(PU Gen cost of GBSs will be more & Consumers will have to pay this thro FAC)

India doubles New Coal fired power capacity in CY 2023 (11/04)

• India's coal power sector saw a significant shift in 2023, adding 5.5 GW of new coal power capacity, an amount equal to what the European Union retired. This marks a doubling of new coal capacity added compared to CY 2022 & represents the lowest rate of coal-fired generating capacity retirement in India in eight years, with no units over 30 MW having been retired in 2023.
• 11.4 GW new proposals introduced by both public & private sector entities, the highest since 2016. This includes the revival of several long-stalled projects, indicating a significant shift towards expanding Coal power infrastructure.
• Globally, Coal power capacity increased by 2% in 2023, largely due to a slowdown in coal Power retirements & a notable increase in new coal power capacity in China
• 69.5 GW of Coal power capacity was commissioned worldwide, while only 21.1 GW was retired leading to a net annual increase of 48.4 GW. This brings the global total coal power capacity to 2130 GW.
• China added 47.6 GW of New capacity in CY 23 (68% worldwide)
• The EU is anticipated to see an increase in coal power retirements, with Germany, already having shut down 15 Coal power units (4.4 GW)

Iran-Israel conflict: Fuel prices may not rise in “poll” season

• Iran's attack on Israel is expected to send global crude oil prices higher as war premium gets built in, but retail fuel prices in India will likely stay unchanged due to General elections, starting later this week.
• Brent, the International Crude Benchmark, has sprinted to $90 per barrel from $80 in just about a month on escalating tensions between Iran & Israel. "A war premium may quickly show up in oil prices”. Heightened tension in oil supply zone or main oil transit zones may also cause increases in crude oil transport & insurance costs
• Oil prices could soar to $100 per barrel & beyond, said market watchers, after Iran mounted an aerial attack against Israel reigniting fears of a regional war.
• Iran is home to vast oil resources, & any disruption to its capacity to supply global markets could push prices higher.

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(Indian consumers will have to face Petrol/disel/Oil price Hikes after 4^th June 2024 (after election results))

IndiGrid operationalises Greenfield Trans project at Beed, in Maha

• Infrastructure investment Trust IndiGrid has operationalised its first Greenfield Trans project: Kallam Transmission Ltd, (KTL) at Beed, in Maha. The trust had won the project in Dec 2021, thro’ Tariff-Based Competitive Bidding (TBCB) to develop it on a build, own, operate & maintain (BOOM) basis for a period of 35 years.
• The project consists of one S/s of 2x500 MVA capacity with 400/220 kV, as well as 10 Bays with a LILO multi circuit line of 18 km.
• The project will enable evacuation of one GW of power from RE projects in Dharashiv area of Maha & will play a key role in strengthening the Trans system by improving the grid availability for RE integration.
• In Nov 2022, IndiGrid was also awarded the augmentation work in the Kallam Trans Ltd project for evacuation of an additional one GW RE under the Regulated Tariff Mechanism (RTM).

Juniper Green commissions 105 MW solar project at JALKOT in MAHA (10/04)

• Juniper Green Energy has announced commencement of operations of 105 MW Jalkot Solar Power Project in Latur Dist Maha.
• The project has been completed ahead of schedule, nearly 9 months prior to the project’s originally planned COD. Jalkot solar power project will provide power as a part of a 25-year PPA with MSEDCL
• The project is expected to generate about 200 MU/year,
• In Jan 2024, Juniper Green Energy & Govt of GUJ signed a MoU to set up 1,000 MW of wind & solar projects within GUJ involving a significant investment of Rs 80 Bn
• In Feb 2024, Juniper Green Energy collaborated with Envision Energy to set up a 300-MW Wind energy project in GUJ.

Adani Electricity showcases green energy with RT solar & Battery storage (11/04)

• Adani Electricity's Borivali office in Mumbai has a 100-kW rooftop solar plant & Battery Energy Storage System (BESS).
• BESS stores excess solar power during the day, making it available for use during evenings & night. The system takes advantage of Time-of-Day (TOD) tariffs by storing energy during off peak hours & utilizing it during peak hours when electricity costs are higher. The BESS also acts as dependable backup source, ensuring uninterrupted operations in case of power outages,"
• This innovative system demonstrates Green Energy potential, ENV responsibility, cost savings, & efficiency. It also sets an IND example for integrated clean energy solutions, of integrating RT solar & battery storage
• Adani Electricity is making Green energy accessible to all. Currently, they produce 38% of their energy thro’ RE & aim to reach 60% by 2027. They also offer a Green Tariff that provides a seamless transition to RE
• RT solar panels provide immediate savings on Power bills, protection from future tariff increases, low maint costs, lower carbon footprints, & improved property value.

Storm damages World's largest floating solar plant in MP's Khandwa (13/04)

• Solar facility in Khandwa Dist in MP incorporates unique technology akin to that of a Hydroelectric power plant, enabling electricity Gen from water. Floaters positioned atop the water's surface are connected to solar panels. These floaters are securely anchored together to safeguard panels from any potential harm resulting from fluctuations in water flow or level.
• Recent heavy rain & strong storms have wreaked havoc in the Malwa region, causing distress among farmers & damaging several ongoing projects. Among the affected projects is a solar plant built on Narmada Omkareshwar Dam, which sustained significant damage during the storm
• World's largest floating solar plant in MP's Khandwa has been damaged by a storm. The plant is built on the backwaters of Omkareshwar Dam. It was ready for launch, however, was hit by a summer storm on 09/04,
• The plant is a JV of NHPC & MP Govt. A ‘major loss’ occurred to solar panels installed for plant. NHPC Officials are assessing the loss.

Pics of 88 MW floating Solar plant at Indhawadi (Khndawa) on 02/02/24 & 09/04/24

• Despite the setback, power Gen is expected to resume soon, Sr official said.
• Omkareshwar Dam backwaters are housing plants with capacities of 100MW in Kelwa Khurd area, 88 MW in Indawadi region, & 90 MW in Ekhand village.
• Among them, the 100 MW project in Kela Khurd village is nearly complete. Damage was reported in panels of 88 MW Indhawadi plant
• The floaters supporting solar panels are interconnected to prevent damage from water flow.
• However, storm’s intensity led to unexpected incidents, such as an iron sheet flying off & injuring a motorcyclist near Moratakka culvert in Khandwa Dist. The injured rider was promptly taken to the hospital for medical attention.

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�Distribution Franchisees (DFs): a Reality Check�(By Ms Ashwini Chitnis: Visiting Fellow at Centre for Social and Economic Progress (CSEP).Published in The Quint dated 13 APR 2024.)�

What is a Distribution Franchisee (DF)?

• A franchisee is an entity appointed by a Discom to undertake all Dist operations within a given area, except for power procurement.
• Discom remains responsible forRregulatory & legal compliances. It supplies electricity to the area, & DF pays a fixed, pre-determined rate PU of electricity supplied known as the "input rate.”
• The franchise aims to make profits by reducing losses lower (& quicker) than the level indicated by the input rate quoted in its bid.
• This arrangement is known as “Input-Based Distribution Franchisee (IBDF) & is the most prevalent model currently adopted by Discoms nationwide.
• Inspired by the success of the "Bhiwandi Model” in the late 2000s, DFs have become a mainstay of Dist reform toolkit. Bailout packages ranging from Financial Restructuring Plan (FRP) of 2012 to Revamped RDSS in 2023, advocates are implementing DF to reduce losses.
• While the policy prescription is unequivocal, the ground-level experience suggests a different story.

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Status & Data Unavailability:

• To date, 28 DFs have been implemented across 9 states. Of these, only 12 are operational. These include
• Torrent Power Ltd which operates 3 DFs in Maha & One in UP,
• CESC Ltd which operates 2 in Raj & One in Maha,
• FEDCO that runs 2 DFs in Meghalaya,
• Sai Computers which runs 2 DFs in Tripura &
• Tata Power Ltd which operates Ajmer DF in Raj.

Out of these 12, the status of 2 DFs in Meghalaya & 2 DFs in Tripura could not be assessed due to unviability of public data

• Regarding loss reduction, except in case of Bhiwandi till FY 2016, when its Dist loss was 24%, & in the case of Agra till FY 2016 when it was 32%, there is no publicly available third-party audited data on Dist losses for any of the operational DFs. (No Data Available: NDA)
• All Dfs claim significant loss reduction in their annual reports, but this data is self-reported. Despite contractual requirements & regulatory directives, independently verified third-party audits of their performance are either delayed or publicly unavailable.

• Data regarding their CAPEX plans & actual capitalisation is also publicly not available. However, similar data for Discom is publicly available thro’ the tariff revision process.

Discom’s Inability to Enforce Contractual Provisions:

• Almost all State experiences highlight Discom’s failure to enforce contractual terms about third-party audits & other provisions that would secure its financial interests.
• Discom’s monthly revenue from DF depends on an accurate assessment of AVG Billing Rate (ABR) for the base year, which forms the foundation for its revenue calculation.
• As per DF contract, it should be audited & verified within 90 days from signing of the contract. Despite this, it has been found that 3rd-party independent audit of the base-year ABR was not conducted on time in many cases.
• Annual ABR audits are also similarly pending or at least the reports are unavailable in public domain. Despite Regulatory directives for undertaking these audits which would secure their revenue from the DFs, Discoms seem almost reluctant to take steps in this regard.

Stable Political Support is Crucial to DF Success

• Since DFs need to operate in chronically high loss-making areas, they need to break entrenched patterns of electricity theft & illegal usage. This needs political support & cooperation from State Administration.
• Even the mere continuation of DF contract after say, a change in the State political Leadership, can become challenging, as the Jharkhand example demonstrates.
• The experience of MP also shows that without political will & support, it is not possible to set up DFs, let alone sustain them.
• DFs are often seen as a benign form of privatisation when it seems politically infeasible.
• Need for political support puts them at par with privatisation when evaluated from a structural reforms point of view.

Terminating Bad Contracts is Expensive:

• Terminating a contract is time-consuming & expensive. Presently, there are at least four contracts (two in Maha & two in Odisha) that are under arbitral proceedings & the estimated impact is more than Rs 1,000 CR. Cost of litigation & liabilities caused by contract termination are non-trivial.

• Thus, instead of receiving benefits from the supposed efficiency gains by appointing DFs, the Discom is likely to end up with dues & bad debts. Hence, there's a need for caution.
• As energy transition unfolds, the role of Discom is transforming. With reduction in prices of RE sources & storage systems, large & high-paying consumers are likely to move away from the discom & manage their supply. Thus, Discom of the future might be largely a wires’ company that would also cater to small, rural, & AG consumers
• In such a system, there needs to be a robust framework for incentivising efficient Dist network development & management while ensuring non-discriminatory access to all its users.

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The key challenge would be to respond to these changes in a timely, nimble, & cost-effective manner. The experience with DFs so far does not generate confidence that the model can deliver under such evolving circumstances.

Community-scale Agrivoltaics powering rural development thro’ RE

• India’s rural populace requires reliable electricity access to improve their quality of life
• Barriers: limited power gen capacity, geographical remoteness, & limited funds hinder this goal.
• In many developed economies such as Germany, France, Italy, & Japan, effective implementation of Agrivoltaics: a combination of Solar PV installations with AG operations, has drastically improved the living conditions of farmers
• Agrivoltaics: novel approach to land use that combines solar PV installations with AG operations, enhancing O/P of electricity & food
• It addresses the competition for land resources & rift between RE initiatives & AG productivity. Studies have shown that co-locating Agrivoltaics with grape farming can increase revenue by 15 times compared to traditional farming, & if replicated across India, we can generate 16,000 GWh electricity,

Real-world solutions for rural communities

• Agrovoltaics is a sustainable technology that uses land for both solar power gen & food production, making it particularly beneficial in limited land areas. it enhances economic value of AG land, providing real-world solutions for rural communities The surplus energy generated can be sold back to the grid, allowing for financial rewards to be invested back into farming operations or the local community.
• Elevated panels offer shelter for delicate crops like Berries & Grapes & improve power O/P by staying cooler under panels. Additionally, raised panels allow sheep & cattle grazing to control weeds & reduce grass-cutting costs
• Commercialization of Agrivoltaics in India requires technological innovations & viable business models

Three potential business models include:

• Jointly owned by farmer & developer,
• Solely owned by either, &
• developer as a primary promoter & farmer as a partner.
• Govts could provide financial incentives for Agrivoltaics adoption by providing early-stage support to farmers thro’ loan guarantees or direct support mechanisms

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• Technological innovations like bifacial panels & Sun Tracking can be encouraged thro’ state-sponsored pilots.
• Arid & semi-arid regions, as well as peri-urban areas, are likely to be favourable locations for Agrivoltaics due to their favourable conditions for AG & energy gen.
• Presently, there is a shortage of pilots in this field. Only a limited variety of crops & AG settings have been tested so far, which is hindering the growth of Agrivoltaics in India.
• Technical feasibility of Agrivoltaics is suggested for some crops like leafy vegetables, millet, & medicinal plants under shading conditions. However, better-designed pilots with rich data collection on crop microenvironments are needed.
• Continuous innovation & peer learning is essential to overcome operational challenges, such as safety concerns, increased maint costs, structural decay, & coordination with farmers. Further research is needed to scale up solutions like rainwater harvesting structures.

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Technological advancements & pilot projects are expected to enhance efficiency & feasibility. Govt policies & incentives will play a pivotal role in propelling Agrivoltaics, addressing challenges like initial investment costs & land-use Regulations.

Is India on the cusp of a Nuclear Energy renaissance? (15/04)

• India’s NUC energy expansion program turned ambitious over the past 10 years. During this time, it took significant strides towards needs-based expansion of its clean energy basket, focusing on energy security, reliability & sustainable development.
• As a relatively clean source of stable energy, NUC power emerged as a potential option, especially given the advances in development of Small Modular Reactors (SMR) & Advanced Small Modular Reactors (ASMR) alongside a favourable international ENV.
• In Sept 2023, 22 countries called for “unprecedented collaboration” between Govt & IND leaders to at least triple global NUC capacity by 2050”.
• In Dec 2023, this was officially endorsed at COP28 held in Dubai, while recognising the “critical role of NUC energy for reducing the effects of climate change”.

A NUC renaissance (rebirth) is thus on the horizon.

• India also enjoys a degree of competitive & comparative advantage on NUC energy front, since the Dept of Atomic Energy (DoAE) has been working on a 3-stage development strategy for over 60 years, which has led to significant advances in technology & HR development.

• Indian NUC power program is largely indigenous & it aims to utilise India’s vast Thorium reserves, (estimated at 1.07 MT), to achieve energy independence. But the road remains bumpy.
• In the past, a number of challenges: technological, geopolitical, financing & policy-related: deterred energy planners from proceeding with NUC projects.
• For instance, the construction of a prototype Fast Breeder Reactor (FBR) at Kalpakkam in TN, scheduled for completion in Sept 2010, was delayed by over 14 years, resulting in the cost doubling.
• At the same time, safety concerns arising out of NUC plant-related disasters, such as 1986 Chernobyl & 2011 Fukushima accidents, also lurk in the periphery.. Add to this the concerns expressed two years ago about the safety of the Zaporizhia NUC plant in Ukraine.
• Of greater concern has been India’s institutional framework for its Civil NUC energy sector. The “deadlocks precipitated” by the Civil Liability for Nuclear Damage Act (CLNDA) 2010 (passed into law almost 14 years ago) contributed significantly in deferring the realisation of objectives such as sourcing of about “40GW of capacity from international suppliers” & slow progress in fulfilling the goals set out by 2005 India-US nuclear deal.
• A specific provision of the Act: stipulating supplier liability obligations, discouraged DOM Cos from supplying components for NUC power plants.

• International suppliers too were wary of this provision, causing uncertainty over the future of Indian civil NUC power program
• Subsequently, however, DoAE’s clarifications did assuage DOM IND concerns, but liability clause continues to remain a sticking point for foreign suppliers, including the French company Electicite-de-France which had bid for construction of Six NUC power reactors at Jaitapur (Maha) in 2021.
• American Cos too have been cautious & hesitant. Westinghouse Electric Corporation, which supplies high-output NUC power plants, has been apprehensive about sales to India because of the “absence of a durable assurance on limited liability in the event of an accident”.
• Talks with Westinghouse for building six AP1000 reactors in AP were grounded to a halt some time ago, preventing the US & India from realising the “Commercial Promise” of the civil NUC deal.
• Geopolitical challenges also loom large. This is linked to India not being a signatory to Nuclear Non-proliferation Treaty (NPT), which has led to apprehensions on the part of some countries about potential weapons proliferation.
• Additionally, India’s bid for membership of Nuclear Suppliers Group (NSG), which regulates global NUC commerce, is seen as a challenge to India’s full integration into the global NUC market.Despite these seemingly insurmountable challenges, the future holds many promises & opportunities.

• In Mar 24, India achieved a historic landmark in its NUC energy development with the successful Core loading of first indigenous 500 MWe Fast Breeder Reactor (FBR) at Kalpakkam, TN.
• In Feb 2024, two new indigenously built 700 MW reactors were commissioned at Kakrapar in Guj, boosting DOM Gen capacity
• Kerala Govt recently proposed exploring possibility of tapping the rich Thorium deposits in the state. NPCIL is planning to commission a new reactor every year.
• To augment finances, GOI is planning to tap private sector to invest around US$ 26 Bn in NUC energy sector
• The Water-Water Energetic Reactor (VVER) 1200 developed by Russia promises 20% higher power output, a 60-year lifespan, high-capacity utilisation (90%), an 18-month refuelling cycle & capable of producing 9.1 TR kWh/year.
• However, this could be achieved if the DoAE is fast-tracks utilising its Thorium deposits & developing SMRs & ASMRs, which would address many of the concerns related to technical, safety & cost aspects.
• NUC Harmonization Initiative of International Atomic Energy Agency (IAEA) could help in this regard.About a year ago, the US NuScale Power Corporation received a crucial design certification from Nuclear Regulatory Commission (NRC) for its SMR design. This could pave the way for potential future deployments of these smaller, more flexible reactors.

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• Equally important is the moulding of public perception on the importance of NUC energy as a clean, secure & safe energy source.
• Resolving issues related to liability & insurance is therefore essential for attracting international partners & investment.
• A global partnership for managing the risks of reactors & proliferation also appears desirable in this context. Similarly, a dialogue between NUC & non-NUC States can help build mutual trust & reduce tensions.
• A comprehensive set of institutional reforms, a robust Civil NUC program with sufficient checks & balances & continued thrust on engineering and R&D could hasten India’s NUC renaissance.

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(By: K Ramanathan is a Distinguished Fellow, TERI. Formerly a Member CEA, Ramanathan provided consultancy support thro’ TERI on numerous technical issues related to power sector development. He is also a Member State Advisory Committee of DERC & serves as Adjunct Faculty with the TERI School of Advanced Studies)

• Hon K Ramnathan Sir has been my GURU for over 45 years. I was with him for a 14 months training program at Siemens AG, West Germany during June 1981 to Aug 1982 on “Application Software for Enery Management Centers”

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How can AI transforms Energy sector?

• Artificial Intelligence (AI) is a powerful technology that can help solve some of the most pressing challenges in the energy sector, such as:
• reducing GHG emissions,
• improving efficiency, &
• enhancing reliability

1. Smart Grid Management:

• One of the main applications of AI is Smart Grid (SG) management.
• Smart Grid is a network of electricity G/T/D & consumption that can monitor & optimize power flow in real-time using data from sensors, smart meters, weather forecasts,& other sources.
• AI can help optimize operation of SG by analyzing data & adjusting supply & Demd of electricity accordingly.
• For example, AI can help balance integration of RE sources, such (solar & wind), which are variable & intermittent, by predicting their output & coordinating with other sources, such as batteries & gas turbines.
• AI can also help to detect & prevent faults, outages, & cyber-attacks on electricity grid by monitoring, Power system's health & performance & taking corrective actions when needed.

2. Predictive Maintenance (PM)

• PM involves using AI to monitor the condition & performance of energy assets, such as power plants, turbines, pipelines, transformers,& to detect/ diagnose potential failures before they occur. This can help reduce downtime, extend equipment lifespan, & save costs.
• For example, GE has developed a cloud-based Platform-as-a-Service (PaaS) for IND Internet. Predix connects machines, data, people, & other assets, using leading technologies for Distributed Computing, Big-data Analytics, Asset Data Management, AI & machine-to-machine communication to collect & analyze data from IND assets & provide predictive insights & recommendations for maintenance.

3. Energy Efficiency (EE)

• AI can help to improve EE of buildings, Vehicles, Appliances, & IND processes by learning from Data & providing insights & recommendations on how to reduce energy consumption & waste.
• AI can help optimize the Heating, Ventilation, & Air Conditioning (HVAC) systems of buildings, by analyzing data from sensors, thermostats, occupancy patterns, & weather forecasts & adjusting temp & airflow accordingly. AI can also help optimize the fuel efficiency of Vehicles by analyzing data from sensors, GPS, Traffic conditions, and driver behavior & adjusting speed, acceleration, braking, & routing accordingly.
• For example, Microsoft has developed an AI solution called Azure IoT Central that can connect & manage millions of IoT devices & provide insights & actions for EE
• Another example is Nest Thermostat. Developed by Nest Labs & later acquired by Google, the Nest Thermostat is an AI-enabled thermostat that optimizes heating & cooling of its ENV to only use the energy needed, when it’s needed.

4. Energy trading

• Another application of AI in the energy sector, which is not be popular (yet), is energy trading. AI can help facilitate trading of energy commodities, such as electricity, gas, oil, and carbon credits, by analyzing data from markets, prices, supply & demand trends, regulations,& weather forecasts & providing insights & predictions on optimal Trading strategies.
• For example, AI can help optimize the bidding & scheduling of electricity Gens & consumers in wholesale markets, by predicting the market prices & demand curves & maximizing the profits or minimizing the costs. AI can also help to optimize the trading of carbon credits in emission markets by predicting the carbon prices & emission levels & maximizing the returns or minimizing the penalties.

Final words :

• These are just some examples of how AI is transforming the energy sector with real-life applications. AI has the potential to create significant value for both consumers & producers of energy by enhancing efficiency, reliability, sustainability, & profitability.

However, AI also poses some challenges & risks for energy sector, such as ethical issues, social impacts, Regulatory uncertainties, Data quality & security issues. Therefore, it is crucial to ensure that AI is developed & deployed responsibly that respects human values & principles.

e-Cooking: Roadmap for achieving goals of “Mission LiFE” (LiFEStyle For Environment) by reducing GHGs & other pollutants (04/04)

• Electric-cooking can be cheaper than LPG in the long run.
• However, e-cooking can pollute more than LPG if the energy used is not from green sources.
• To achieve the goals of Mission LiFE (Lifestyle For Enviroment), i.e. to reduce GHGs & other pollutants, GOI suggests the following:
• Universal access to Green electricity/Public participation
• Behavioural change/ Starting in cities & urban areas
• Moving to Tier-2 & Tier-3 towns/ Focusing on rural areas
• Mission LiFE, aims to mobilize Indians & other global citizens to take individual & collective action to protect & conserve the ENV (2022–2028). The goal is to make at least 80% of all villages & urban local bodies ENV-friendly by 2028.
• World population has already crossed 8 Bn people out of which 2.4 Bn, do not have access to clean cooking solutions.
• They mostly depend on firewood, charcoal, animal dung or AG waste. These produce indoor air pollution; in some cases, it is so severe that gases emitted kill people prematurely.
• According to annual Sample Survey, around 2.3 Mn people die globally because of these emitted gases

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In India around 520 Mn people still use some form of Coal, Charcoal, Wood, animal Waste or other biomass to cook food for their family. (GHG Producing local fuel)

• For Promoting the concept of LiFE, India first acted for switching from GHG these local fuels to LPG, but is now GOI is advocating for electric cooking. The planned e-cooking solutions, apart from reducing National CO2 emissions, will reduce black carbon, CH4 & NO2 emissions. Thus, emission will be reduced & green cover will be maintained contributing to India’s climate action.
• More than 96 Mn households have already received LPG cylinders but how many are not in use. Exact data is not avialable (No Data Available: NDA)
• Even LPG produces GHG gases but it at least saves the house women from drudgery of severe smoke emitted from burning of wood, coal, & other such fuels though it still has some health issues
• Minstry of Petrolieum claims that H/H LPG "coverage" stands at 99.8% but National Family Health Survey conducted in 2019–21 (NFHS-5) states that 41% of the population still cooks on biomass. (Authentic data not available)
• GOI feels that, replacement of LPG cooking with e-cooking is needed at the earliest. In this regard the ‘Go Electric’ campaign was initiated by MOP in FEB 21 & EESL too has come forward to ensure better utilisation of RE also in the cookin Sector
• LiFE requires universal access to Green electricity. Further, public participation is a must for promotion of e-cooking. It requires conviction & behavioural change among people.

Best way to introduce & get required benefit will be to first implement e-cooking in cities & urban areas and move to Tier- 2 & Tier-3 towns, where the effect of GHG reduction will be maximum, before concentrating on Rural areas.

, where the effect of GHG reduction will be maximum

GOM gets boost for promotion of Green power

• MahaYuti Govt received a major boost after BJP in its Sankalp-Patra (manifesto) proposed to increase RE production, accelerate the RE transition, increase green H2 production capacity & install Smart Meters.
• GOM has not only taken a slew of decisions but also launched the implementation for energy transition.
• Maha is the first State to implement World's largest Distributed Solar Program for AG as it awarded Letters of Award to 95 project developers on 7^th March 2024 for a whopping 9,000 MW distributed Solar capacity for supplying reliable day time supply to AG Sector
• This is a program aimed at deploying solar capacity, of 2-10 MW, at Dist S/s that predominantly supply to AG.
• Due to enormous preparatory work done before award of LoAs, this capacity is expected to be commissioned in the next 18 months, (by Sept 2025)
• Proposed 9,000 MW capacity will be deployed in a distributed manner across Maha covering 1,368 S/S & 5,293 AG feeders.
• Maha-Cabinet approved borrowing of Rs 17,000 CR from: Asian Development Bank (Rs 8,109 CR) & Asia Infrastructure Development Bank (Rs 9,020 CR) to strengthen the network for AG Solar pumps across Maha
• Maha Govt also signed an MoU with NTPC Green Energy for development of Green H2 & its derivatives such as Green Ammonia & Green Methanol of up to 1 Mn tonne capacity/year.

• This is a part of GOM’s Green Investment Plan for next 5 years. GOM envisages a potential investment of approx Rs 80,000 CR.
• MoU also includes creation of 2GW Pumped Hydro Storage projects & development of RE projects with or without Storage upto 5 GW in Maha
• 9000 MW Distributed Solar initiative aims to provide 12 hours of Uninterrupted Power Supply to farmers during the day. GOM’s decision will enable 40% of AG feeders to be driven by Solar Power by Sept 2025.
• GOM’s decision is important as it plans to give power to farmers at a subsidised rate of Rs 1.25 PU leading to an expenditure of Rs 13,000 CR
• Maha has 1.6 CR farmers with 78% under low & marginal category. Solar power would help them not only in cost-effectiveness but also in avoding working in fields after sunset.
• Maha-Cabinet has sanctioned Rs 8,562 CR funds to provide subsidies & benefits to Cos generating this Green energy in the coming years.
• Further, MSEDCL has already awarded contracts worth Rs 13,888 CR for Smart Pre-paid Meter installations
• Existing conventional meters of more than 2 CR consumers will be replaced with Prepaid Smart Meters. After SM installation, customers will be able to decide how much to spend on electricity.

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• While the Mukhyamantri Saur Krushi Vahini Yojana (MSKVY) was initially launched in 2017, only about 600 MW Solar capacity has been installed till date in 7 years. (Now MAHA is planning 9000 MW in 18 months) MSKVY is also analogous to & part of PM-KUSUM component-C launched by GOI in 2019.

(Kindly note 600MW Solar capacity in 7 years & now a plan for 9000 MW solar capacity in 18 months. A huge target)

• Beyond the ambitious target setting,real success of MSKVY lies in preparatory work done by MSEDCL. This involved consultations with all important stakeholders in sector to understand what challenges & practical problems were preventing developers from deploying solar capacity under the erstwhile scheme.

Scheme included

• Financial support of 15-25 PSPU for 3 years for developers,
• Rs. 25 lakh/substation, grant to MSEDCL for ensuring reliable project connectivity,
• a social benefit grant of Rs. 5 lakh/year for 3 years to Gram Panchayats where such projects will be deployed &
• Finally creation of a revolving fund of Rs. 700 CR. to ensure timely payment to solar developers. Being part of PM-KUSUM, CFA of Rs. 1 CR/MW will also be provided to developers
• Apart from this financial support, GoM established a “Single Window Clearance Portal (thro’ MEDA) & IT Dashboard for project monitoring. “
• Over 20 clearances for each project were issued, even before project tendering.
• Crucially, & possibly most important was the support given by GoM in terms of identification & aggregation of “Govt & private land parcels” within 5/10 km radius of S/s & further availing NOCs for identified land parcels & connectivity permissions to fasten implementation.

• This was only possible due to active involvement of all District Collectors & it turned out to be a critical step to bolster the confidence of developers in participating in competitive bids. This work on land identification & availability among other aspects of MSKVY 2.0 model was duly appreciated by GOI
• On 5th March, MERC proactively adopted tariff for 7,783 MW capacity & winning bids range from Rs 2.90 to 3.10 PU. Similar or slightly lower winning bids were received for the balance capacity as well.
• This Project is likely to generate 15 BU/year & save nearly Rs 2.5 PU (avg. PP Cost: Rs 5.54 PU – Avg. winning tariff of ~ Rs 3.06/kWh) resulting in a nominal PP cost saving of Rs 1 Lakh CR over the 25-year PPA period. This will go a long way in reducing the subsidy & cross-subsidy burden of GoM and MSEDCL respectively.

At the heart of this initiative is a commitment to addressing the long-standing challenge of providing reliable day-time power to farmers, while catalysing socio-economic benefits such as rural job creation. This is the world's largest Distributed Solar program for AG

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(GOM took this proactive decesion before Loksabha Elections. Let us wait & watch the progress. Touch wood, Maha badly needs a grand success)

Enabling Energy Transition: Key trends & initiatives in Energy Storage Systems (ESS) (19/04)

• As global efforts for promotion of intermittent RE intensify, the significance of ESSs has surged.
• India is taking key steps to achieve energy transition. GOI has set several targets in this space: to set up 500 GW non-fossil fuel capacity & meet 50% of India’s Electricity Demd thro’ non-fossil fuel sources by 2030.
• To achieve these targets, uptake of ESS will be essential, as it helps balance supply & Demd, enhances grid stability, & enables seamless integration of RES into existing energy infrastructure.

Key Govt initiatives to promote ESS:

• In Mar 2022, MoP issued detailed guidelines for procurement & utilisation of BESS as part of G/T/D assets, along with ancillary services. Aim of guidelines was to facilitate growth of Battery Storage Sector & help establish a uniform framework for all stakeholders.
• In July 2022, MoP announced Energy Storage Obligation (ESO) as a separate component from RPO which mandates a gradual increase in ESO requirements for all Obligated Entities, starting from 1% in FY 2023-24 & escalating to 4% in FY 2029-30.
• In Aug 2023, MoP announced National framework for promoting ESS, consolidating all Govt policies related to ESS market.

• Apart from these, other key initiatives include:
• Exemptions for Trans related to ESS projects,
• production-linked incentives (PLIs) for advanced chemistry cells,
• financial assistance for pumped storage projects (PSPs),
• concessional green finance for ESS projects, &
• introduction of a PLI scheme targeting BESS.
• BESS: In Union Budget 2023, GOI unveiled intentions to support BESS with a cumulative capacity of 4,000 MWh.
• In Sept 2023, GOI approved the Viability Gap Funding (VGF) scheme to support the development of BESS with an initial outlay of Rs 94 Bn, including budgetary support of Rs 37.6 Bn.
• The scheme aims to develop at least 4 GW BESS capacity by 2030, with objective of achieving a levellised cost of storage ranging from Rs 5.50-6.60 PU. This would make stored RE a viable option for managing peak power Demd across the country.
• PSPs: slowly PSP is recognised as the cheapest energy storage option in the long run.
• In April 2023, MoP released a detailed policy specifically addressing the PSP segment, recognising PSP as a crucial ESS technology offering cost-effective, long-duration storage capabilities exceeding six hours.
• The waiver of ISTS charges will be extended to all those PSPs where construction work is awarded by June 30, 2025. Graded ISTS charges will be levied on PSPs for which construction work is awarded after June 30, 2025

• Green H2: Green H2 is also emerging as a viable Storage option to utilise excess RE.
• Apart from release of National Green H2 Mission, auction of tenders for green H2 production & electrolyser manufacturing, GOI has also released guidelines for conducting pilot initiatives aimed at implementing green H2 in the shipping, steel & mobility sectors. In addition, incentives have also been announced fo production of green H2 & green ammonia.
• Firm & Despatchable RE (FDRE): Given the issues with standalone RE, Discoms are now, looking to procure FDRE.
• To promote FDRE, MoP issued guidelines for Competitive Bidding of Firm & Despatchable Power from grid-connected RE projects with ESS in June 2023. According to guidelines, FDRE tenders aim to ensure availability of guaranteed peak power & RTC power at any given hour as requested by Discoms.
• For Power Gen Planning, several factors need to be considered, such as sustainable development, operational flexibility & reliability, efficient resource utilisation, & fuel availability constraints.
• In these scenarios, BESSs & PSPs are expected to play a critical role in managing the intermittency of RE & ensuring grid stability in the coming years.

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Going forward, the Power sector is likely to witness increased investments, with a focus not only on BESS but also on mature technologies such as PSPs. Additionally, a shift towards exploring more affordable & readily available components across the ESS Chain will significantly contribute to enhancing self-sufficiency & security within India’s energy sector.

“CY 2023 was a record year for Wind installations as world ramps up Clean energy” GWEC Report says

• CY 2023 was a record year for wind installations as world ramps up clean energy. The world installed 117 GW of new wind power capacity in CY 2023, a 50% increase from CY 2022, making it the best year for new wind projects on record, according to a new report by Global Wind Energy Council published on 16/04/24
• Global cumulative wind power capacity now totals 1,021 GW
• China led all other countries for both new onshore & offshore wind power installations in CY 2023. It had 65% of new installations, & was followed by the U.S., Brazil & Germany. Together, these four countries accounted for 77% of new installations globally in CY 23
• Top five markets for wind energy are China, the U.S., Germany, India & Spain
• “Increase in wind installations shows that world is moving in right direction in combating climate change" the GWEC report said.
• But authors warned that wind IND must increase its annual growth to at least 320 GW by 2030 in order to meet the COP28 pledge to triple world’s installed RE GEN capacity by 2030, as well as to meet the Paris Agreement’s ambition of capping global warming to 1.5 degrees Celsius (2.7 Fahrenheit).

• GWEC Report shows that wind IND is “picking up pace" by attracting investments & gaining maturity, & that may lead to a snowball effect leading to future growth. For the planet, it indicates that it is possible to ramp up to reach climate targets. This is an important building block in transition towards a net-zero emission society.
• Africa & Middle East installed nearly 1 GW Wind power capacity in CY 2023, almost triple that of 2022. With upcoming projects in South Africa, Egypt & Saudi Arabia, the GWEC report predicts that new onshore wind additions for Africa & Middle East will grow fivefold by 2028 compared with 2023.
• In Kenya windpower provides around 17% of electricity, Kenya has the largest wind farm in Africa, the 310 MW Lake Turkana Wind Power Project, & GWEC report notes new planned large-scale wind projects in Kenya, including a 1 GW wind park by local power generator KenGen.
• Building wind power installations is expensive & entails high up-front investments,& emerging & developing countries face higher CAPEX & pay higher loan rates to build out their wind PS
• Wind energy also faces grid challenges, as innovation is needed to integrate intermittent wind energy onto the grid while retaining reliability.
• Offshore wind, has some very specialized equipment & also requires expertise in finance & business models.

“The recent growth, & Nations’ support for Wind IND, are hopeful signs that the supply chain is being established,“ the GWEC Report says

90% of Ukraine's Coal, Gas power Plants hit by Russian attacks: Ukraine Minister (10/04) (News from Mascow Times)

• Russia has hit up to 80% of Ukraine's conventional power plants & 50% its HE plants in recent weeks in the heaviest attacks since the war began, in Feb 2022.
• Ukrainian Energy Minister German Galushchenko said on 08/04 in Kviv. Moscow has launched almost daily strikes on Ukraine's Power grid since late March 2024, causing major blackouts in the NE city of Kharkiv.
• Before Russia's invasion, Ukraine's Gen was fairly evenly balanced between Coal, Natural Gas & Nuclear, with a smaller % of HEP
• “The scale & impact of these attacks is much greater" than earlier attacks over the winter during 2022-2023 when millions suffered in freezing temps without electricity & heating”.
• Ukraine’s largest NUC station in Zaporizhzhia has been under Russian control since near the start of the war.
• "We see that Russians modified the weapons," the minister said, adding that they now use Iranian-style explosive drones & missiles that cause more damage per attack.”

Appeal from Moscow Times:

• “The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by Russian Govt. This blatant attempt to silence our voice is a direct assault on the integrity of journalism & values we hold dear.
• We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate & unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.
• Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, & you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.”

(Vldimir Putin (71 years age): elected as the President of Russia for the 3^rd time. In his regime, there is threat to free & fair journalism He does not like any criticism. Can you find similar examples of Media under Govt Control, any where in the World? Pl comment)

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Thanks!!!�Contant me: vlsonavane@gmail.com/ M:983362062

Desmond Tutu (7Oct 1931-26Dec 2021) was a South African Anglican Bishop and theologian, known for his work as an anti-apartheid & human rights activist)