Archive for ‘Electricity’

25/11/2014

Nepal to ink India power deal during Modi visit – Businessweek

Nepal’s government is signing an agreement Tuesday with an Indian company to build a hydroelectricity plant that will export power to India and also boost supplies in the energy starved Himalayan nation.

The inking of the deal with Indian company Satluj Jal Vidyut Nigam Ltd. to build the 900 megawatt Arun III hydropower station will coincide with Indian Prime Minister Narendra Modi‘s visit to Nepal for a South Asian regional summit.

The $1.04 billion project is expected to begin producing electricity in 2020. More than three quarters of its output will be exported to India, said Ghanashyam Ojha, external affairs official at the Investment Board Nepal.

The Arun III agreement, which was endorsed by Nepal’s Cabinet late Monday, comes just two months after a similar deal with another Indian company.

They are the two biggest private foreign investments in Nepal, and put India ahead of neighboring China, which has long shown interest in developing Nepal’s power industry.

In September, Nepal signed an agreement with Indian company GMR to build the $1.15 billion Upper Karnali Hydro power plant.

via Nepal to ink India power deal during Modi visit – Businessweek.

20/11/2014

Cheap Electricity for Poor Squeezing Out Solar in India – Businessweek

The villagers of Dharnai in northern India had been living without electricity for more than 30 years when Greenpeace installed a microgrid to supply reliable, low-cost solar power.

Cooking By Candlelight

Then, within weeks of the lights flickering on in Dharnai’s mud huts, the government utility hooked up the grid — flooding the community with cheap power that undercut the fledgling solar network. While Greenpeace had come to Dharnai at Bihar’s invitation, the unannounced arrival of the state’s utility threatened to put it out of business.

“We wanted to set this up as a business model,” said Abhishek Pratap, a Greenpeace campaigner overseeing the project. “Now we’re in course correction.”

It’s a scenario playing out at dozens of ventures across India’s hinterlands. Competition from state utilities, with their erratic yet unbeatably cheap subsidized power, is scuppering efforts to supply clean, modern energy in a country where more people die from inhaling soot produced by indoor fires than from smoking.

About as many people in India are without electricity as there are residents of the U.S., and the number is growing by a Mumbai every year. Prime Minister Narendra Modi wants to bring electricity to every home by 2019 by leapfrogging the nation’s ailing power-distribution infrastructure with solar-powered local networks — the same way mobile-phones have enabled people in poor, remote places to bypass landlines.

via Cheap Electricity for Poor Squeezing Out Solar in India – Businessweek.

19/11/2014

More nuclear plants and renewable energy under new development plan | South China Morning Post

China will boost oil exploration, use less coal and more natural gas, build more nuclear plants and develop renewable energy under a new seven-year development plan.

nuclear.jpg

The State Council’s newly released plans for 2014-2020 marks the latest attempt by policymakers to limit the nation’s appetite for energy. Reflecting its rapid industrialisation and economic growth, China has become a voracious consumer of energy, changing global energy markets and the geopolitics of energy security.

The document sets out five strategic tasks for the nation’s energy development. The first is to achieve greater energy independence by promoting clean and efficient use of coal, increasing domestic oil production, and developing renewable energy .

China plans to develop new and existing oilfields in nine regions where it has large proven reserves – including in the northwestern, central and northeastern provinces as well as offshore fields in the Bohai Gulf and the East and South China seas.

The plan also calls for boosting offshore oil exploration though improved exploration trace analysis, promoting deep-sea bidding from foreign corporations to develop offshore sites and greater research and development in deep-sea oil discovery technology and equipment.

The plan’s second task is to curb excessive energy consumption and implement energy-efficiency programmes in urban and rural areas. The third task builds on this goal by cutting the proportion of coal used in the nation’s energy production while using more natural gas, nuclear power and renewable energy. The plan calls for more nuclear plants to be built along the coast “at a suitable time” while also studying the feasibility of inland nuclear plants.

The fourth task is to expand international cooperation in energy, establish regional markets and participate in global energy governance. The fifth is to promote innovation in energy-related technology.

via More nuclear plants and renewable energy under new development plan | South China Morning Post.

07/11/2014

China’s Solar Power Push – Businessweek

As the world’s largest emitter of carbon, China has decided that one of the best ways to clean up its polluted air is through solar power. The country has led the world in solar installations for the last two years and will likely do so again in 2015. It’s on pace to reach 33 gigawatts of solar power capacity by the end of 2014, 42 times more than it had in 2010 and more than exists in Spain, Italy, and the U.K. combined, according to Bloomberg New Energy Finance. (The U.S. will have 20 gigawatts by the end of this year.)

Most of China’s solar power comes from sprawling utility-scale solar farms in the country’s rural west. Now the idea is to distribute solar panels in urban areas, putting them on top of office buildings and factories and connecting them to the grid without building miles of costly transmission lines. In 2015, BNEF estimates that China will add as much as 15 gigawatts of solar capacity, enough to power roughly 16 million homes. More than half of that increase will come from cheap panels installed on commercial buildings. If the 2015 projection holds, China will have installed twice as much solar power in factories and office towers in one year than currently exists in all of Australia, one of the world’s sunniest countries.

via China’s Solar Power Push – Businessweek.

26/10/2014

Electricity: Generational shift | The Economist

MUCH of what China has achieved in the past three decades—its impressive economic growth, the rise of its global stature and the considerable improvement of living standards for hundreds of millions of people—is attributable to one decision: ditching the Maoist model of central-planning that had shackled the economy. Yet some important industries have yet to embrace the market. Power generation is one. As China struggles to reconcile its soaring energy demand with its need to clean up an increasingly toxic environment, reform is becoming more urgent.

China knows it must reduce its reliance on dirty coal and increase its use of (more expensive) renewable energy. Of the new power-generating capacity that China built last year, renewables such as wind and solar power for the first time accounted for more than the share made up of fossil fuels and nuclear energy.

China wants to satisfy the surging electricity demands of its increasingly urban population and to keep its industries running smoothly. It does both reasonably well and blackouts are rare. But officials fret about how grumpy—and vocal—people are becoming about the poisonous air that envelops so many Chinese cities. (An annual international marathon race, pictured above, took place in Beijing on October 19th in air that was nearly 14 times more polluted than the safety limit recommended by the World Health Organisation.) China is aware that its standing abroad will partly depend on its efforts to limit carbon emissions. This will involve weaning itself off coal, which supplies nearly 80% of its energy.

Progress is being hampered by a largely unreformed power industry dominated by large state-owned enterprises (SOEs) which operate under a mix of rigid planning, secrecy and poor regulation. Power suppliers have too little incentive to compete on price, efficiency or greenness. Two international NGOs, the World Wildlife Fund and the Energy Transition Research Institute, describe the SOEs that control all transmission and distribution and most non-renewable generation as “unregulated corporate monopolies”. Their bosses are usually appointed by the central government, but they often ally with regional leaders to resist oversight by a variety of largely toothless regulators.

One problem is China’s system for “dispatch”; that is, determining which power sources will supply electricity to the grid at any given time. A report by the Regulatory Assistance Project (RAP), an American NGO, notes that in most countries dispatch decisions are made in order to minimise costs (including environmental ones). In China regulations would appear to encourage a similar approach: grid-operators are supposed to give priority to electricity supplied by more efficient and greener producers. In practice, grid-operators are more inclined to help coal-fired plants recoup the cost of their investments. Both sides are members of a cosy club of energy-related SOEs. Even if the grid-operators were to try to stick to the rules, they would struggle. Coal plants can easily conceal how much they waste and pollute.

Generators of wind and solar energy thus find themselves handicapped by more than just the high cost of their technologies. Much of China’s most cleanly produced energy is wasted. For wind power, rates of “curtailment”, or energy generated but not taken up by the grid, have improved in recent years as grid systems have become better able to cope with the technical challenge of handling such unsteady sources of power. But the rate still stands at about 10% nationwide. In Britain it was less than 2% between 2011 and 2013.

The government launched pilot reforms in five provinces in 2007 to encourage more efficient dispatch, but they achieved little and have not been expanded. Max Dupuy of RAP’s Beijing office says the scheme met opposition because of its failure to compensate coal-fired plants for the revenue share lost to clean producers.

via Electricity: Generational shift | The Economist.

05/09/2014

Australia to sign uranium export deal with India – Businessweek


Embed from Getty Images

Australia’s Prime Minister Tony Abbott met with his Indian counterpart Friday on a two-day state visit during which they are expected to sign a deal to allow the export of Australian uranium to India for use in power generation.

The agreement is expected to be signed Friday evening. Australia, which has almost a third of the world’s known uranium reserves, imposes strict conditions on uranium exports and India’s failure to sign the Nuclear Non-proliferation Treaty had long been a barrier to a trade deal.

Australia and India have been negotiating a nuclear safeguards agreement with verification mechanisms since 2012, when a former Australian government agreed on civil nuclear energy cooperation with India that would eventually allow the export of Australian uranium to the energy-starved South Asian nation.

India faces chronic shortages of electricity and about 65 percent of its installed power generation capacity comes from burning fossil fuels including oil, coal and natural gas. India is eager to expand its nuclear power capacity.

Australia’s decision to sell uranium to India follows a civil nuclear agreement with the United States. The deal with the U.S. was signed in 2008 and allowed Washington to sell nuclear fuel and technology to India without it giving up its military nuclear program.

India is seeking a similar agreement with Japan. The two sides have claimed “significant progress” but failed to reach a last-minute agreement on safeguards sought by Tokyo when the Indian Prime Minister Narendra Modi was in Japan earlier this month.

via Australia to sign uranium export deal with India – Businessweek.

30/08/2014

The backup power in Indian apartments are funded in the name of a poor Indian farmer

In India’s urban areas, you can tell the interruption in power supply by an accompanying noise – a diesel genset whirring into life somewhere nearby, releasing plumes of dark smoke into the air. Power failure is so endemic in some areas that factories, call centres, hotels and apartment complexes all install large gensets to provide back-up power.

So much so, that the installed power generation capacity of diesel gensets in India has now exceeded 90,000 megawatts, or the equivalent of 36% of India’s total power generation capacity. This estimation by the power regulator, the Central Electricity Regulatory Commission, in fact takes into account only large units with over 100 kilo volt ampere. If smaller units in apartment complexes and household are taken into account, the figure could be much larger.

Policymakers thus far believed that the installed capacity of such units was just over 1,000 MWs, while in reality it was 90 times as much. And so there is no estimation of how much fuel is consumed by these gensets.

There should be. Because these gensets all consume subsidized diesel.

Fuel subsidies were a little under 2% of India’s GDP in 2011-12, according to IMF calculations. Diesel subsidies accounted for nearly half of it.

The rationale for subsidizing diesel is two-fold. Farmers use it to operate motor pumps to irrigate their farms. And second, cost of transporting essential goods and food needs to be kept down to rein in inflation.

Both these reasons are undermined by the situation on the ground and what researchers have shown.

Nearly 27% of diesel sold in India is consumed by vehicles, the economist Kirit Parikh estimated in 2013. All of these are not trucks transporting vegetables. Many are sports utility vehicles owned by the rich. Parikh estimated that an SUV owner received an annual subsidy of Rs50,000 on account of the diesel subsidy in the name of the poor.

Researchers at the thinktank Integrated Research and Action for Development showed in 2012 that a 10% increase in the price of diesel would only result in a 0.6% rise in consumption expenditure of the poorest 10% of people both in the rural and urban areas. A 4% rise in wholesale price index, which can be caused by fiscal deficit-fuelled inflation, can have a much greater impact, they found.

The government recently set up an expenditure reform commission to streamline spending and ensure better targeting of subsidies.

via Scroll.in – News. Politics. Culture..

13/08/2014

Beijing cuts coal use by 7 percent in first half of year – China – Chinadaily.com.cn

Beijing cut coal consumption by 7 percent in the first half of 2014 as part of its efforts to tackle smog, the city’s environmental protection bureau said.

Beijing cuts coal use by 7 percent in first half of year

Beijing is at the front line of a “war on pollution” declared by the central government earlier this year in a bid to head off public unrest about the growing environmental costs of economic development.

The city has already started to close or relocate hundreds of factories and industrial plants.

The coal-fired power generators at Beijing’s Gaojing Thermal Power Plant are decommissioned on July 23. Provided to China Daily

It will also raise vehicle fuel standards and is mulling the introduction of a congestion charge.

To reduce coal consumption, it is in the process of shutting down all of its aging coal-fired power plants and replacing them with cleaner natural gas-fired capacity or with power delivered via the grid.

Based on last year’s coal consumption level of 19 million metric tons, the 7 percent cut would amount to around 1.33 million tons per year.

Beijing has said previously that it plans to reduce total coal use by 2.6 million tons in 2014, and aims to slash consumption to less than 10 million tons per year by 2017.

The Beijing environmental bureau said the city had cut sulfur dioxide emissions by 5.4 percent over the first six months of the year.

It also took 176,000 substandard vehicles off the road.

Previous data issued by the Ministry of Environmental Protection showed that concentrations of hazardous airborne particles known as PM2.5 stood at 91.6 micrograms per cubic meter in Beijing in the first half of the year, down 11.2 percent year-on-year but still more than twice the recommended national limit of 35 mcg.

Much of the pollution that hits Beijing drifts in from the surrounding province of Hebei, a major industrial region that is home to seven of China’s 10 most polluted cities.

Under new plans to integrate Beijing with Hebei and the port city of Tianjin, the region will be treated as a “single entity” with unified industrial and emission standards.

Hebei said last week that it had cut coal consumption by 7.53 million tons in the first half of 2014, amounting to just over half of its target of 15 million tons for the year.

The province agreed last year to cut coal use by 40 million tons by 2017, and it is also planning to shed at least 60 million tons of excess steel capacity over the same period.

via Beijing cuts coal use by 7 percent in first half of year – China – Chinadaily.com.cn.

26/06/2014

CaptureSolar Raises $107 Million for India Solar Project – Businessweek

CaptureSolar Energy Ltd. raised $107 million for a solar park to supply Indian businesses suffering from rising costs for power generated mostly from coal.

The utility will get 86 percent of the $125 million for the project from Cyprus-based Concept Solutions & Innovations Ltd., CaptureSolar Chief Executive Officer Raju Bhosale said today by phone. Pune-based CaptureSolar will pay for the rest.

The 75-megawatt photovoltaic park will be completed in two phases by March 2015 and charge about 6 rupees (10 U.S. cents) a kilowatt-hour under a 25-year contract, Bhosale said. The price is about 8 percent below the level industrial and commercial businesses currently pay, he said.

via CaptureSolar Raises $107 Million for India Solar Project – Businessweek.

17/06/2014

China battles to be first ecological civilisation – environment – 13 June 2014 – New Scientist

SO YOU want to live in a country that is guided by a philosophy of “ecological civilisation”, run by people with the vision to implement policies that will benefit their children even if it costs more in the short term? Move to China.

Easing off coal

Not convinced? Last week, news circulated that China is considering limiting its greenhouse gas emissions so that they peak in 2030, followed by an orchestrated fall.

It was one man’s view, expressed at a Beijing conference, not an official announcement. But He Jiankun is chairman of China’s Advisory Committee on Climate Change, and his words are in line with actions China is now taking to address global warming.

“China is already doing a lot,” says Fergus Green of the London School of Economics. “They are probably making the most progress of any country, given that they are starting from a position that is far more challenging.”

“Things are changing very, very fast,” says Changhua Wu of The Climate Group think tank in Beijing.

To be clear, China is still the biggest emitter of carbon dioxide. Cities like Beijing are plagued by smog, and efforts to clean them up may just move the pollution elsewhere. But there is a huge push for change.

Water scarcity and awareness that China will suffer from global warming are factors, but it is health concerns that loom large. The air in many cities is dangerous to breathe, the water is toxic and there are often food health scares. “People are fed up,” says Wu.

Premier Li Keqiang has declared a “war on pollution”. His leadership has drawn up a philosophical framework called ecological civilisation. It aims to “bring everything back to the relationship between man and nature”, says Wu, and is driving major changes.

Prompted by the idea that used resources must be paid for, China has launched carbon trading schemes in six areas. There, companies must pay to pollute, and abide by a cap on overall emissions. A seventh scheme should start within weeks. They will form the world’s second largest carbon trading scheme, after Europe’s. A national programme should begin this decade.

China has set targets to make more wealth using less energy and it is on course to meet them. It contributes one-fifth of global investment in renewables, more than any other nation, has more installed wind power than anywhere else and in 2013 doubled its solar capacity.

The smog is turning people off dirty power. Construction of coal-fired power stations peaked in 2007 (see graph), and smaller power stations are being switched off. According to the London-based think tank Carbon Tracker, 10 out of 30 provinces have cut their coal use, and wind capacity is growing twice as fast as coal. “The coal-fired power plants that China is building are some of the most high-tech and efficient available,” says Carbon Tracker’s Luke Sussams. There are also schemes in place to make people who pollute water pay those who suffer as a result.

Environmentalists have pushed policies like these for years. But while Western nations debate them, China is testing them and rolling out those that work.

via China battles to be first ecological civilisation – environment – 13 June 2014 – New Scientist.

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India