PNC 11/09/23 Supplement: Special topics: Magazine Section

Interesting “News” in Power Sector

• Cockroach theory : A Story
• 15-MINUTE EV CHARGING:
• Green H2: why is it touted as a clean fuel/ Issues before India for Green H2 / Barodian's device produces green H2
• Battery recycling firm RecycleKaro to set up Nickel plant in PALGHAR Maha
• MoP announces National Framework for Promoting Energy Storage Systems
• GUVNL made ‘Excess Payment’ of ₹3,900 CR to Adani
• Texas power prices spike as temps soar

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All info in this PPT is collected from various open sources available on the internet. Opinions expressed/remarks are my own views, which are based on my LIMITED EXPOSURE in the Sector. I will be happy to have your comments

Compiled by

Vijay L Sonavane

ME (Electrical)

Cockroach theory : A story Worth reading

A beautiful speech by “Sundar Pichai”: Global Head, Google Chrome:

“The Cockroach theory for self development”

• “At a restaurant, a cockroach suddenly flew from somewhere & sat on a Lady. She started screaming out of fear.
• With a panic stricken face & trembling voice, she started jumping, with both her hands desperately, trying to get rid of the Cockroach. Her reaction was contagious, as everyone in her group also got panicky.
• The lady finally managed to push the cockroach away but ...it landed on another lady in the group.
• Now, it was the turn of the other lady in the group to continue the drama.
• The waiter rushed forward to their rescue. In the relay of throwing, the Cockroach next fell upon the waiter.

• The Waiter stood firm, composed himself & observed behavior of Cockroach on his shirt.
• When he was confident enough, he grabbed it with his fingers & threw it out of the Restaurant.

Sipping my coffee & watching the amusement, the antenna of my mind picked up a few thoughts & I started wondering:

• Was the Cockroach responsible for their histrionic behaviour?
• If so, then why was the waiter not disturbed? He handled it near to perfection, without any chaos.
• It is not the Cockroach, but the inability of those people to handle the disturbance caused by the Cockroach, that disturbed the ladies.

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• I realized that, it is not the shouting of my father or my boss or my wife that disturbs me, but it's my inability to handle the disturbances caused by their shouting that disturbs me.
• It's not the traffic jams on the road that disturbs me, but my inability to handle the disturbance caused by traffic jam that disturbs me.
• More than the problem, it's my reaction to the problem that creates chaos in my life.”

Lessons learnt from the story:

• I understood, I should not react in life. I should always respond.
• The women reacted, whereas the waiter responded.
• Reactions are always instinctive, whereas responses are always well thought of.

A beautiful way to understand............LIFE.

• Person who is HAPPY is not because Everything is RIGHT in his Life..He is HAPPY because his Attitude towards Everything in his Life is Right..!!!

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15-MINUTE EV CHARGING:

• Bengaluru’s start up Exponent Energy, has set the EV world abuzz with its ground-breaking charging solution. The technology promises charging an EV in merely 15 mins. This novel technology also offers improved battery life & efficiency, making it a potential game-changer in EV market.
• Traditional EV charging has been riddled with challenges, from extended charging times ranging from half an hour to almost half a day, to concerns over battery lifespan & efficiency.
• Exponent Energy's innovative approach bypasses these limitations. The cornerstone of this technological marvel is their patented off-board 'water-based' THM Management system. One of the greatest barriers to rapid charging has always been the threat of battery overheating. Not only does this raise safety concerns but also leads to faster battery degradation. Exponent Energy's solution addresses this issue, ensuring efficient & safe charging for vehicles across all categories
• Exponent Energy is not merely about fast charging; it's about smart charging. The company delves deeper into the mechanics of battery longevity by targeting issues like lithium plating, a primary factor that deteriorates battery performance over time.

• By integrating sophisticated software & electronic methodologies into their Battery Management System (BMS), & fine-tuning their charging algorithms, Exponent Energy ensures a significant reduction in Li- plating. The result is Enhanced battery lifespan & performance.
• From Vision to Reality: Behind this disruptive technology are two visionary founders: Arun Vinayak & Sanjay Byalal, former executives from Ather Energy.
• Founded in 2020, Exponent Energy's overarching mission is to streamline the evolution of OEMs to electric propulsion. Their collaborative venture with Altigreen Propulsion Labs is a testament to this commitment, aiming for efficient last-mile deliveries via their cutting-edge tech stack.
• Exponent Energy envisages expanding its technological footprint to major Indian cities like DEL NCR DEL, Mumbai, HYD, Chennai, & Ahmedabad. Their ambitious goal of launching 1,000 'e^pumps' & empowering 25,000 EVs with their technology by 2025 underscores their commitment to a sustainable future
• Exponent Energy is a trendsetter. By intertwining charging efficiency with eco-friendliness, the firm is poised to redefine EV charging standards not just in India but globally. As the green revolution picks up pace, Exponent Energy is sure to lead the charge, heralding an era of Swift, Sustainable, & Smart Electric Mobility.

What is Green H2? Why is it touted as a clean fuel? (06/09)

• GREEN HYDROGEN?: H2 is produced by separating that element from others in molecules where H2 occurs. When H2 production is powered by RE, the resulting H2 is called Green H2.
• Global market for green H2 is expected to reach $410 Bn by 2030.
• Water (chemical symbol of H20: two H2 atoms & one O2 atom): can be split into those component atoms thro’ electrolysis.
• H2 is produced & used for over a century, primarily to, make fertilizers, chemicals, plastics, to refine Oil, Steel-making, Concrete production. It is mostly produced using fossil fuels especially Natural gas. It can also be used to generate electricity, & as a fuel for transport, heat homes & offices.
• Researchers are optimistic about green H2's role in the transition to clean energy, especially where energy from RE like solar & wind can't practically be stored & used via battery like aviation, shipping & some IND processes.
• H2 is highly flammable & requires special pipelines for safe transport: means most green H2 will likely be used close to where it is manufactured

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• Flammability plus transport issues limit H2's use in "dispersed applications such as Res heating, according to a report by the “Energy Transitions Commission”. It also is less efficient than direct electrification as some energy is lost when RE is converted to H2 & then the H2 is converted again to power. There is a strong potential for H2 as an alternative to batteries for energy storage at large scale & for long periods.
• Other Issues: Hi cost of production, investment risks, greater need for water than other clean power & lack of international standards: hinders a global markets.
• Green H2 is being oversold in part due to lobbying by the oil & gas INDs. Projected H2 demand will grow to 550 MMT by 2050, up from the current Demd of 100 MT
• IEA says production of H2 is responsible for around 830 Mn tons of CO2/ year. Just replacing gray H2 (produced from fossil fuels) would ensure a long-term market for green H2
• The first thing we have to do is to start replacing existing Demd for gray H2. And then we can add additional Demd & applications of green H2 as a fuel for INDs, shipping & Aviation.

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Major issues before India in its quest for Green H2 (31/08)

• India is targeting to bring down cost of production of Green H2 to $1/Kg as against $ 5.7/Kg currently, but it would be difficult to produce, use or export Green H2 at a large scale at this cost

Key question before India is:

• Whether to upscale Green H2 on the strength of largely imported electrolysers & wait for gradual localisation of electrolysers manufacturing, or choose the path of raising protections, for boosting local manufacturing of electrolysers & bear the cost of delayed expansion of Green H2.
• It is the dilemma between speed of expnasion & localisation. A solution is that, like in solar, initial expansion can be done using imports.
• Second important consideration: the cost of RE for Green H2 production. Around 60-70% cost of Green H2 is the cost of RE itself. MOP has decided to waive off ISTS charges on Green H2 projects for 25 years. It’s a major incentive for Green H2 Production.
• But big question is that we will have to pass on the burden of the ISTS charge waiver to Indian consumers for exporting Green H2 to other countries? That is a big policy issue.

• Another issue is RE Banking. Green H2 will require banking of RE on GW scale, which no State Grids can afford. So, “Grid-Banking” needs to be used only for marginal requirement. Green H2 producers will also have to set up storage capacities.
• Economics of Green H2 production: Cost of solar power: Rs 2.60 PU + Trans losses + banking cost + storage cost etc.
• Lastly, unless an obligation is imposed for Green H2 purchase a fast rollout will be difficult. Demd growth has to be visible for setting up electrolyser factories, which requires huge investments

There are 2 routes:

• Under recent amendment to EC Act, there are possibilities of imposing the non-fossil fuel energy specific obligations on the fertilizer plants, refineries etc.
• Second route: Carbon markets. Obligations can be imposed in the form of emission intensity caps & entities can opt for carbon trading.

Imposing Green H2 Obligations will be a simple route

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Major areas of work for developing Green H2 ecosystem on a large scale:

• Supply of critical minerals or rare earth minerals which are used for manufacturing electrolysers or fuel cells.
• Technology development because, based on current efficiency levels of electrolysers a lot of RE/KG is required for production of Green H2

Barodian's device produces Green H2 at very low cost (22/08)

• VADODARA: A team of engineers led by a Barodian have successfully in developing a device that makes H2 from Sunlight with record efficiency: moving a step closer towards using solar-harvested Electricity to convert feedstocks into fuels. Green H2 produced by this device comes at a low cost.
• Team is led by Prof. Aditya Mohite at Rice University in the US, have built an integrated photo-reactor that has achieved 20.8% Solar-to-H2 conversion efficiency, says a study published in “Nature Communications”.
• Using Sunlight as an energy source to manufacture chemicals is one of the biggest hurdles to a clean Energy Economy. However, engineers at Rice University have designed a system that absorbs light & completes electro-chemical water-splitting Chemistry on its surface.
• The device called Photo-Electro-Chemical-Cell absorbs light, converts it into electricity, & uses the same electricity to power a chemical reaction.
• So far, using photo-electro-chemical technology to produce green H2 was hampered by low efficiencies & the high cost of semiconductors,” Prof. Mohite, a Chemical & Biomolecular Engineer, who heads the Mohite Lab & is faculty Director of Rice Engineering Initiative for Energy Transition & Sustainability (REINVENTS) Program.

Barodian's device to produce green H2�(innovation by Prof. Aditya Mohite, Rice University Housten Texas, USA)

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The device was created by turning highly competitive Solar cells into a reactor that uses harvested Energy to split water into H2 &O2.

Houston, Texas, United States.

• Prof Aditya said: We have developed the device, by turning highly competitive Solar Cell into a reactor that uses harvested energy to split water into O2 & H2 “Currently, all devices of this type produce green H2 using only Sunlight & Water. But ours is exceptional because it has record-breaking efficiency & it uses a semiconductor that is very cheap,” he said.
• He said Solar cells that have been initially used for developing green H2 cost nearly US $ 50,000/ SQ Met whereas the solar cells that have been used by his collaborators at the lab cost US $10-15/ SQ metre.
• “At the same time, the highest Solar-to-H2 conversion efficiency that was recorded so far was 16-18%. We have achieved almost 21% efficiency & our device has potential to achieve 25% efficiency,” he said,
• “One kg of H2 has the same energy density as that of one Gallon Petrol. But the challenge is to develop green H2 which is economically feasible.
• The H2 Shot goal defined by the US DOE in 2021 is also aimed towards reducing cost of clean H2 by 80%: to US $ 1/ Kg in 1 decade (“111”). As we are scaling up the device, we are moving closer towards this goal,” he said. The research was supported by the US Department of Energy, SARIN Energy Inc. & Rice’s Shared Equipment Authority.

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Battery recycling firm RecycleKaro to invest Rs 100 CR to set up Nickel plant in “PALGHAR” Maha (25/08)

• Li-ion battery recycling firm RecycleKaro announced its ambitious plans to invest Rs 100 CR for setting up a Nickel plant in Maha with a capacity to produce 1,200 tonnes of Nickel annually.
• India's Demd for Nickel stands around 45 Kilo-Tonnes which is entirely met thro’ imports
• The plant aims to contribute to India’s self reliance by addressing the low global inventory of Nickel & reducing dependence on China’s dominance in this sector.
• Spread across 17 Acres of land, the upcoming facility in Palghar Dist of Maha will incorporate a plant capable of producing Nickel from scrapped lithium-ion batteries & Nickel Hydroxide. The plant will commence production by Dec 2023.
• This venture is aimed at completing the value chain of a circular economy & meeting the surging Demd for Li-ion batteries in India's fast expanding EV market.

MoP announces National Framework for �Promoting Energy Storage Systems (04/09)

• MoP announced National Framework for Promoting Energy Storage Systems (ESS). The initiative aligns with India’s commitment to employ RE sources & to reduce GHG emissions.

Main goals of ESS framework:

• to encourage deployment of ESS
• Reduce reliance on fossil fuel plants,
• Ensuring a steady supply of RTC RE,
• Reduce emissions, &
• Minimise Energy costs.
• To promote innovation in ESS technologies,
• Enable fair access to energy storage for all segments of population,
• improve grid stability & dependability.

Objective: to use Policy & Regulatory measures, financial & fiscal incentives, & performance-based incentives to assist development & installation of ESS.

• With respect to storage requirement, CEA has estimated that by 2026–27, 16.13 GW of ESS capacity will be needed to integrate additional RE capacity, with significant expansion expected in coming years.

• For advancing ESS technology, overall fund Demd for pumped storage projects (PSP) & Battery Energy Storage System (BESS) for the years 2022–2027, is Rs 542.03 Bn & Rs 566.47 Bn, respectively.

By 2047, need for ESS is anticipated to rise to 320 GW, which includes 90 GW PSP & 230 GW BESS, with a storage capacity of 2,380 GWh.

• Electricity (Amendment) Rules, 2022 notified that ESS can be used independently or in combination with G/T/D infrastructure & ESS has to be considered as a part of Power System.
• MoP had also notified long-term trajectory for energy storage obligations: (a minimum % of power consumption that must be sourced from RE sources thro’ ESS within a Discom’s service region)

Framework also provides for several policy measures & incentives for energy storage,

• A waiver of ISTS fees for ESS use,
• Rules for BESS procurement, &
• the inclusion of ESS in infrastructure harmonised master list.

Main Intension: is to offer stakeholders to help them comprehend GOI’s strategy for ESS & its importance in India’s energy transition.

GUJ power utility GUVNL made ‘Excess Payment’ of ₹3,900 CR to Adani (27/08)

• GUJ Congress President Shaktisinh Gohil on 26/08 accused GUJ Govt of favouring the Adani Group by making an “excess payment” of ₹3,900 CR to Adani Power between 2018 & 2023
• He produced a letter dated 15 May 23 written by Gujarat Urja Vikas Nigam Ltd (GUVNL) to Adani Power, Mundra, in which GUVNL has stated that it made excess payment & asked Adani for recovery
• Letter also said that Adani Power was not cooperating, & had failed to submit detailed invoices & supporting documents of coal procurement from Indonesia. It also indicated that Coal price at which Adani Power was procuring Indonesian coal was substantially higher than the actual market price of coal
• A Guj Govt spokesman denied that there was any scam, & said payments were ongoing, & would be adjusted.

‘Crony corruption’

• “This is a classic case of cronyism of Govt. For five years from Oct 2018 to March 2023, GUVNL paid ₹13,802 CR as energy charges, out of which ₹3,900 CR (39.4%) was excess,” “It is categorically mentioned that the Adani Power was buying coal from a select few spot suppliers in Indinesia at premium price while the actual market price was substantially lower,” Mr. Gohil said.

He also asked why Auditors had not raised any query regarding payments which were made without any supporting documents submitted by Adani Power regarding the fuel procurement.

• “This cannot be done by bureaucrats alone. This scam of making excess payment has been committed with blessings from their political bosses,” he said, asking how the GUVNL had suddenly realised in May 2023 that it had paid more than required.
• “GUVNL has said, that Adani Power has not shown transparency in coal procurement & it buys coal from some shell Cos that are directly or indirectly linked with Adani group’s sprawling network of shell entities which has been exposed in the Hindenburg Report,” Mr. Gohil said.

‘Loot of public money’:

• “In view of the fact of excess payment has been received by Adani Power Mundra Ltd from GUVNL for energy invoices for period of Oct 2018 onwards, pending the final approval of base rate by the Govt of Guj, Adani Power is hereby requested to immediately refund the excess amount received towards energy charges,” says the letter signed by J.J. Gandhi, GM (Comm), GUVNL.
• Mr. Gohil asked why GUJ Govt had not ordered any probe by ED / CBI, as Adani Group had failed to submit genuine invoices & supporting documents regarding fuel procurement.

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• “This is a case of loot of public money by creating layers within layers to inflate the energy costs,” he said, “this clearly amounts to money laundering”

‘Out of context’:

• Responding to allegations, GUJ Minister Rushikesh Patel said that there was no “scam”, & the payments were an ongoing matter & would be adjusted as per the norms.
• He admitted that the letter by GUVNL was genuine. “GUVNL has written as a commercial communication between the two parties. There is no scam & Congress has quoted from it without context,” Mr. Patel said in a media briefing on 26/08 evening.
• However, the copy of the letter circulated by Opposition party has raised questions about the functioning of GUJ Energy Dept , where there have been allegations of non-transparency for several years.
• GUVNL procures power from Adani, Tata, & Essar groups, & from other suppliers, as per the long-term PPAs inked with these private power firms.

Congress questions SEBI delay:

• In another matter related to the Adani group, Congress said that the “inability” of Securities and Exchange Board of India (SEBI) to reach a conclusive finding on allegations of round-tripping & money-laundering against Adani group is “deeply troubling”.
• SEBI’s 25 Aug Status Report submitted to the Supreme Court raises questions, & reiterated that only a Joint Parliamentary Committee (JPC) probe can effectively answer the queries.

• “Of the 24 matters SEBI investigated relating to t Adani Mega-Scam, TWO Matters still have “Interim status”.
• One of the interim reports relates to the important question of whether Adani violated Minimum Public Shareholding requirement under Rule 19A of Securities Contracts (Regulation) Rules.
• In simple terms, did Adani use opaque entities based in “Overseas Tax Havens” to engage in the kind of “round-tripping & money laundering”
• SEBI stated that reason for delay is that info from “external agencies & entities” is still awaited,”

SEBI Diluting Regulations in 2018 & deleting them in 2019:

• MP Jayram Ramesh said: the country is “paying a heavy price” for SEBI’s decision in 2018 to dilute, & in 2019 to delete, the reporting requirements relating to ultimate beneficial (i.e. actual) ownership of foreign funds. ( FDI)
• “SC’s Expert Committee pointed out that reason SEBI has failed to identify beneficial ownership of overseas investors in Adani Cos was that SEBI suspects wrongdoing’ but is ‘drawing a blank worldwide’ due to its ‘piquant’ decision to remove these stipulations. Thus, giving free rein to opaque funds based in tax havens,” Mr. Ramesh said.
• Reintroduction of strict reporting rules following SEBI’s 28 June meeting represented a public admission of guilt by SEBI, even though the horse has already bolted from the stable. “Final reports on these critical questions are awaited.
• Will SEBI identify source of the ₹20,000 CR of benami overseas funds that have flowed into Adani Group.
• The answer to how & why SEBI decided to dilute these rules, the prime beneficiary of which appears to be Adani Group, can only be answered by a JPC,” Mr. Ramesh noted.

After Congress, AAP demands probe into Adani Power issue (29/08)

• Aam Aadmi Party (AAP) MP Sanjay Singh demanded action against officials & Ministers in Guj for an alleged excess payment made to Adani Power Mundra Ltd (APMuL) over 5 years under two PPAs.
• Guj Govt had denied allegation after GUJ Congress chief Shaktisinh Gohil had on 26 Aug raised the issue & claimed that GUJ BJP Govt had made “excess payment of ₹3,900 CR” to APMuL. Guj Minister Rushikesh Patel said allegations were “misleading” & that payment was only interim & not final.
• Mr. Singh on 28/08 demanded a probe into the “corruption”. “Where is the ED/CBI? You reach WB, TEL at the drop of a hat. But you are not able to see the corruption that is happening. It is only after Hindenburg report that they realised that corruption was happening. How did this corruption happen? There should be action against officials & Ministers involved in this,” he said.
• It has been alleged that GUVNL paid Adani Power ₹13,802 CR between Oct 2018 & Mar 2023 even when Adanis’ did not submit any invoice or supporting documents of coal procurement (for its power plants).
• Mr. Singh produced a letter written by GUVNL, dated May 15, 2023 & addressed to Adani Mundra, seeking recovery of ₹3,802 CR, excess payment made by the GUVNL towards energy charges under two PPAs signed with Adani.

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Texas power prices spike as temps soar (06/09)

• Texas day-ahead power prices hit a 30-month high on 25 Aug as high temps hiked Demd to record-breaking levels, Prices at the ERCOT North Hub, which includes Dallas, soared to $1,599/MWh ($1.6 PU) for 26 Aug, the highest since Feb 2021freeze which knocked out Gen facilities & saw prices exceed $8,000/MWh. ($8 PU)
• Grid operator ERCOT urged consumers to “conserve energy” on consecutive days as sweltering temps above 100 degrees F drove up Demd for AC units
• Texas is the fastest growing solar market in the U.S. & operates the largest wind power fleet, accounting for 26% of total U.S. wind gen last year.
• Energy Information Administration (EIA) projects Solar & Wind capacity will double to over 100 GW by 2035 & Battery storage is also on the rise, spurred by a growing need for dispatchable power & new tax credits in the 2022 Inflation Reduction Act.
• Texas solar developers are adding Storage as inflation act tax benefits increase profit margins but a lack of Trans N/W could delay projects & keep huge solar resources in the west beyond reach.
• Most solar developers are expected to pair solar facilities with 1-4-hour Li-ion battery storage systems. This represents a dramatic change in just a couple of years.

• At the start of 2022, only 27% of all solar projects in Texas grid connection were coupled with storage & by the end of 2022 this had risen to 42%, according to preliminary data from LBNL (Berkeley Lab). In California, & tin the areas, where solar penetration is higher, the figure was around 97%.

Rising US Solar panel shipments signal installation push:

• U.S. Solar panel shipments rose 10% in 2022 to hit a record high of 31.7 GW peak capacity, foreshadowing a sharp increase in installations expected in 2023.
• Some 88% of shipments were imports, primarily from Asia, with the rest made up of domestically supplied panels. Last year, U.S. solar installations dipped as global inflation, logistics issues & new import rules drove up prices & delayed projects.
• In 2023, installations are forecast to rebound & hit record levels as supply chain challenges ease & developers complete delayed projects. Developers brought online a record 6.1 GW of solar capacity in the first quarter of CY 2023, including 3.8 GW of utility-scale plants
• Solar PPA prices in North America fell in Q2 of CY2023, representing the first drop since early 2020, pricing platform LevelTen Energy said. AVG solar PPA prices in April-June softened by 1% on Q1 to $49.09/MWh in an indication that supply market conditions were "starting to stabilise”.. The price reflects the "market-averaged" price across the country.
• Developers are also incorporating benefits from the 2022 Inflation Reduction Act into their projects. The act provides Tax Credits for Solar, Wind, Storage & Clean technology manufacturing, softening the impact of rising component prices on power offtake deals.

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Share of US Utility scale Gen: (26% of US Wind Gen & 16% of US Solar Gen in Texas/ 25% of US Solar Gen in California)

Thanks �(Contact me: vlsonavane@gamil.com/M: 98333 62062)

SHORTAGE:

Political leaders & Industrialists see Opportunities in them.

Common man tries to find out solution on every shortage