energy and utilities sector in india monthly update june 2013

7/28/2019 Energy and Utilities Sector in India Monthly Update June 2013

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Energy and Utilities Sector in

India

Monthly Update

June 2013



Energy and Utility – Monthly Update

Top Story

Power

Grid

plans

to

introduce

smart

grid

in

the

Indian

energy

&

utility

sector

Gurgaon‐based Power Grid Corporation of India Ltd. has sought permission from the Central

Electricity Regulatory Commission (CERC) for upgradation of their 1,700 stations. This

comes with its plan to implement smart grid mechanism which is an evolving concept in the

Indian energy & utility segment. The projected cost for implementation of the mechanism

would be approximately INR 6,550 mn and the project is likely to be completed in 3 years.

The implementation of smart grid and smart meters will help in reducing power outages and

thefts as well as power consumption. Services will become more reliable as error in meter

readings, huge billings and other disputes can be avoided that will ensure reliability of the

Indian energy & utility segment.

News Update

General Godawari CSP project 1st to produce power in Indian energy & utility segment

Raipur‐based Godawari Green Energy Ltd. (GGEL) project has delivered power to the grid for

the 1st time on Jun 5, 2013. Being the 1st utility‐scale solar thermal project in India, the

project is a 50 MW concentrating solar power plant.

Out of a collection of 470 MW projects approved for development under Phase I, Batch 1, of

the Jawaharlal Nehru National Solar Mission for renewable energy in Indian energy & utility

segment, Godawari CSP project stands out among them.

Tamil Nadu may lose its top position in the Indian wind energy segment

Investments for wind farms installation in Tamil Nadu have taken a dip to around INR 6 bn

invested so far this year as compared to INR 70 bn in 2011‐12. It is estimated that in year

2011‐12, about 1,000 MW of wind farms were installed which translate into about INR 65‐70

bn investment in the state. But last year this has dropped to 170 MW and in the current year

it is expected to be much lesser. All the investments are shifting to other states, especially

Gujarat and Rajasthan.

Installation of wind power generation capacities in Gujarat has increased by 36% during

2011‐12 to 2,966 MW, making the state 2nd only to Tamil Nadu in India's wind energy &

utility sector. Wind quality of Rajasthan is not as good as it is in Tamil Nadu, but the tariff is

good and it has also some good infrastructure.




Global power utilities pull the plug on India plans

Foreign power utilities such as Germany‐based E.ON and France‐based GDF Suez, which

were focusing at India to fuel their growth ambition, are losing patience and in some

instances wrapping up their presence in the country due to uncertainties in the power sectorand the slow pace of reform.

E.ON has already closed its India office in Mumbai but interested in the long‐term growth

opportunities in Indian power sector, while GDF is looking for opportunities in order to grow

their portfolio in the country.

Automated Export System (AES) has scaled down its operations restricting presence to its

stake in a plant in Odisha and China Light and Power (CLP) has wrapped up thermal power

plans and will only focus on renewable energy projects.

India to

assist

Pakistan

to

tackle

energy

crisis

India is willing to assist Pakistan as the country had sustained a huge loss of INR 1,000 bn in

the last 5 years. Pakistan is currently facing a power deficit of 4,000‐5,000 MW per day. India

is exploring the ideas to hook‐up to the grid in Pakistan through a high‐voltage direct current

(HVDC) line. 500 MW of electricity is sought from India by laying a transmission line from

Punjab to Lahore in the last month.

Pakistan's Prime Minister Nawaz Sharif has also advised Khawaja Muhammad Asif, Minister

for Water and Power, to visit India and discover potential areas of cooperation between the

two countries.

USAID to

facilitate

INR

5.97

bn

to

promote

clean

energy

United States Agency for International Development (USAID) said that it will invest INR 5.97

bn in India's growing clean energy sector in its energy & utility segment to help the country's

transition to low carbon economy and open new development opportunities. USAID together

with US‐based institutional investor Northern Lights Capital Group will facilitate the

investment via Nereus Capital.

This investment is expected to create as much as 300‐400 additional MW of sustainable

energy capacity, which is equivalent to lighting the homes of tens of 1000 of Indian families.

USAID has partnered with a private investment fund for the 1st time to facilitate targeted

investment.




News Update

Expansion Plans Tata Power establishes new plant in Karnataka

Mumbai‐based Tata Power, a leading integrated power utility supplier, has launched a new

50.4 mega watt (MW) energy plant at Gadag, Karnataka. The project has been set up under

the Clean Development Mechanism (CDM) certified by United Nations Framework

Convention on Climate Change (UNFCCC).The Clean Development mechanism was set up

under Kyoto Protocol to reduce the emission and effect of Green House Gas in a cost effective

way.

This power plant at Gadag will be using 63 turbines of 800 KW each to generate 107,064 MW

of clean energy annually to help reduce CO2 emission to an enormous extent. The company

has 3 other renewable energy plants, one at Maharashtra and the other two in Gujarat, whichmakes it one of the largest producers of renewable energy in India.

P2 solar increases its renewable presence with Project Tibba

Canada‐based P2 Solar, Inc. has recently acquired its 2 nd renewable project in India with

Project Tibba. This comes after its previous acquisition of Project Rajgarh in Ludhiana. New

Delhi‐based Jagat Energy Pvt. Ltd. has acquired the 500 KW mini‐hydro power plant in

Ludhiana for P2 Solar, Inc. The company is considering both its acquisitions as a series.

The company is expecting an annual revenue generation of approximately INR 47.67 mn

from the 2 projects. It is also considering the possibility of installing solar photovoltaic

panels atop the canal space for generating additional electricity. P2 solar is also looking forother opportunities related to mini‐hydro and solar rooftop projects in India in order to

increase its renewable presence.

News Update

Regulatory Power rates hike in Indian energy & utility segment

Electricity tariff rates will rise by a minimum of 15 to 17 paise per unit in energy & utilitysegment as power generators are allowed by the government of India to pass on higher cost

of imported coal to consumers.

There will be a marginal increase on unit cost of power depending upon the cost of imported

coal. Coal India will import the coal and this additional price which they pay for imported

coal, will be passing through the power tariff. Government of India has taken the initiative to




increase production and certain other decisions will also be taken in Indian energy & utility

segment to open up more coal mines and to generate more coal by 1st week of Jul 2013.

Smart grid

pilot

project

in

Mysore

got

the

approval

The 1st smart grid pilot project in Mysore, which is projected to cost around INR 320 mn, has

been approved by the Ministry of Power. 50% of the total cost would be provided by the

Ministry of Power, while the rest would be borne by the Chamundeshwari Electricity Supply

Corporation (CESC).

The project would cover a total of 14 feeders and 24,532 consumers as well as 580 irrigation

pump‐sets and 504 distribution transformers and address various issues such as efficiency,

reliability and sustainability of power generation and distribution.

Industry Expert Speak

Power rates hike in Indian energy & utility segment – P Chidambaram, FM,

Government of India

“The Cabinet Committee on Economic Affairs has approved the pass‐through proposal, which

would result increase in power tariff. There will be small increase in power tariff. It will be

very marginal increase on unit cost of power depending upon the cost of import of coal. They

(IPPs) can import coal themselves if they wish, otherwise Coal India will import and this

additional price which we pay for imported coal, obviously, has to be pass through in the

power tariff. “

India to assist Pakistan to tackle energy crisis – Nawaz Sharif, PM, Government of Pakistan

"We are facing acute electricity shortage and any assistance in the power sector will help us

in addressing the problem."

Transactions (Apr 2013 – Jun 2013)

Date Buyer Target Deal Size

(INR mn) % stake Deal Status

Type of

Transaction

13th Jun2013

BanyanTreeGrowth Capital II

LLC

Atria BrindavanPower Ltd.

500 N.A. CompletedPrivateEquity

5th Jun2013

Goldman SachsReNew Power

Pvt Ltd.8,045.6 N.A. Completed

PrivateEquity




Date Buyer Target Deal Size

(INR mn) % stake Deal Status

Type of

Transaction

18th

April2013

IFC ACME Solar 2,500 N.A. Completed PrivateEquity

Annual Financial Results – Revenue (INR mn)

Companies FY ‘10 FY ‘11 FY ‘12 FY ‘13

Amara Raja Batteries Ltd. 14,644.8 17,610.5 23,673.6 29,810.8

Bharat Petroleum Corp. Ltd. 1,238,167.2 1,537,649.1 2,121,395.6 2,420,433.9

Exide Industries Ltd. 39,788.5 47,660.8 53,156.5 63,658.9

GAIL India Ltd. 270,353.0 351,916.1 441,821.4 508,927.1

Gujarat Gas Co. Ltd. 18,493.3 24,185.9 30,669.1 31,154.8

HBL Power Systems Ltd. 11,173.4 12,053.7 15,644.2 N.A.

IKF Technologies 2,101.123 2,398.691 1,877.888 N.A.

Indian Oil Corporation Ltd. 2,502,393.3 3,097,970.2 4,089,240.3 4,607,497.1

Indraprastha Gas Ltd. 10,781.2 17,461.1 25,186.6 33,646.7

Oil and Natural Gas Corp. Ltd. 1,026,655.8 1,201,338.7 1,473,057.2 1,614,491.5

Oil India Ltd. 79,335.3 83,206.0 98,632.3 95,457.8

Petronet LNG Ltd. 106,490.9 131,972.9 226,958.6 314,674.4

Praj Industries Ltd. 7,344.4 6,649.3 10,031.1 9,190.7

Suzlon Energy Ltd. 206,196.6 178,791.3 210,823.7 187,431.4

Tata Power Co. Ltd. 189,765.2 194,507.6 260,014.0 328,360.5




* Change in Financial Year Ending

Annual Financial Results – Income (INR mn)

Companies FY ‘10 FY ‘11 FY ‘12 FY ‘13


Bharat Petroleum Corp. Ltd. 16,323.6 16,349.6 7,808.3 18,808.3

Exide Industries Ltd. 4,935.2 6,188.2 4,460.6 5,493.5

GAIL India Ltd. 33,278.3 40,209.7 44,436.1 43,736.0


HBL Power Systems Ltd. 995.9 168.6 185.4 N.A.

IKF Technologies 354.144 434.884 262.145 N.A.

Indian Oil Corporation Ltd. 107,131.9 78,307.2 42,259.8 44,490.1


Oil and Natural Gas Corp. Ltd. 194,035.3 224,559.3 281,436.2 242,196.4

Oil India Ltd. 26,104.4 28,837.6 34,691.8 35,920.5

Petronet LNG Ltd. 4,045.0 6,196.2 10,575.4 11,492.8

Praj Industries Ltd. 1,195.9 577.5 678.9 680.2

Suzlon Energy Ltd. (9,825.6) (13,239.7) (4,785.8) (47,239.6)

Tata Power Co. Ltd. 19,668.4 20,596.0 (10,876.8) (854.3)

* Change in Financial Year Ending




Quarterly Financial Results – Revenue (INR mn)

Companies

Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

Jan-Mar

2013




Petronet LNG Ltd. 70,304.1 74,878.9 83,753.1 86,113.2

Suzlon Energy Ltd. 47,467.2 57,022.3 40,136.6 42,805.3

Tata Power Co. Ltd. 71,975.7 76,494.9 89,916.8 84,416.3

* Change in quarter

Quarterly Financial Results – Income (INR mn)

Companies Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

Jan-Mar

2013

Amara Raja Batteries Ltd. 760.9 701.0 809.1 596.0

Gujarat Gas Co. Ltd. 520.6 994.8 701.2 592.8

Indraprastha Gas Ltd. 850.5 992.1 863.4 835.3

Petronet LNG Ltd. 2,708.5 3,147.9 3,185.0 2,451.4

Suzlon Energy Ltd. (8,489.7) (8,077.4) (11,545.3) (19,127.2)

Tata Power Co. Ltd. 1,459.3 (838.0) (3,289.2) 1,813.6

* Change in quarter




Events Calendar

SolarTech Expo

India

2013

Date: 22nd – 23rd Jul 2013Venue: TBA

City: New DelhiContact Person: Diego Salvati

Contact No: +44 (0)7956 163810Organizer: Green World ConferencesWebsite:

www.greenworldconferences.com/produkt_104_solartech_expo_india_2014.htm




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energy and utilities sector in india monthly update june 2013

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