BEE, CPWD to promote energy efficiency in buildings

The Bureau of Energy Efficiency (BEE) and the Central Public Works Department (CPWD) have signed a memorandum of understanding (MoU) for co-operation in building energy efficiency.

ECO Niwas Samhita 2018 an Energy Conservation Building Code for residential buildings, to push for energy efficiency in the residential sector was launched on December 14, 2018. It aims to promote design and construction of homes including apartments and townships to give benefits of energy efficiency to the occupants. Ministry of Power launched the ECO Niwas Samhita 2018.

The aim of ECO Niwas Samhita 2018:

To benefit the occupants and the environment by promoting energy efficiency in the design and construction of homes, apartments, and townships.

Roles and Responsibilities:

Role of BEE –

  • Processing of application for the star rating of buildings
  • Preliminary scrutiny of application
  • Data verification of CPWD maintained buildings
  • Installation of smart meters
  • Award of certificate & label
  • Support for Energy Efficiency in Buildings
  • Support for construction of ECBC complaint buildings
  • Efficient coordination with CPWD
  • Capacity building of CPWD officials

Role of CPWD –

  • Completely filled application for the star rating
  • Support and facilitation to data verification and monitoring
  • Construction of ECBC Complaint buildings
  • Support for Energy Efficiency in Buildings
  • Efficient coordination with BEE
  • It is anticipated that this initiative will result in an energy saving of more than 260 million units in the first stage with operational savings of about Rs. 100 crore.

Star Rating for Commercial Buildings:

  • It is based on the actual performance of a building in terms of its specific energy usage in kWh/sqm/year.
  • It rates office buildings on a 1-5 Star scale, with 5 star labeled buildings being the most efficient.
  • It is on a voluntary basis and label provided under it is applicable for a period of 5 years from the date of issue.
  • It provides public recognition to energy efficient buildings and creates a “demand side” pull.
  • Various categories of buildings like Day Use Office Buildings, BPOs, Shopping Malls and Hospitals in the five climatic zones have been identified under the scheme.

About Bureau of Energy Efficiency (BEE) –

  • Bureau of Energy Efficiency (BEE) is a statutory body, set up by the Government of India on 1st March 2002 under the provision of the Energy Conservation Act, 2001.
  • The mission is to assist in developing policies and strategies with a thrust on self-regulation and market principles with the primary objective of reducing the energy intensity of the Indian economy within the overall framework of the Energy Conservation Act, 2001.
  • This will be achieved with the active participation of all stakeholders, resulting in accelerated and sustained adoption of energy efficiency in all sectors.

About the Central Public Works Department (CPWD) –

  • CPWD came into existence in July 1854 when Lord Dalhousie established a central agency for execution of public works and set up Ajmer Provincial Division.
  • It is headed by DG who is also the Principal Technical Advisor to the Government of India.
  • It has PAN India presence and has the ability to undertake construction of complex projects.
  • It has been involved in the construction of stadiums and other infrastructure requirements for Asian Games 1982 and Commonwealth Games 2010.
  • CPWD is now engaged in the construction of Afghan Parliament Building (beyond national boundaries).
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Establishing Gas Trading Hub/Exchange in the country

It has been agreed to establish the gas trading hub(s)/exchange(s) in the country wherein the natural gas can be freely traded and supplied through a market mechanism. In view of the administrative, legal, operational issues involved, a precise timeframe for operationalizing the gas trading exchange/hub cannot be indicated at this stage.

As per draft National Energy Policy of NITI Aayog, the US $ 150 billion capital investment is needed in the energy sector on an annual basis until 2040.

Development of Natural Gas Grid:

  • To develop the natural gas grid, Government has taken a decision to provide a capital grant of Rs. 5176 crore (i.e. 40% of the estimated capital cost of Rs. 12,940 Crore) to GAIL for development of a 2655 Km long Jaddishpur-Haldia/Bokaro-Dhamra Gas Pipeline (JHBDPL) project.
  • This pipeline will transport Natural Gas to the industrial, commercial, domestic and transport sectors in the States of Bihar, Jharkhand, Odisha, West Bengal, and Uttar Pradesh.

An Integrated Refinery-cum-Petrochemical Complex:

  • Oil Public Sector Undertakings (PSUs) namely Indian Oil Corporation Limited (IOCL), Bharat Petroleum Corporation Limited (BPCL) and Hindustan Petroleum Corporation Limited (HPCL) have decided to set up an integrated refinery-cum-petrochemical complex with a refining capacity of 60 MMTPA (Million Metric Tonnes Per Annum) at Babulwadi, Taluka Rajapur in Ratnagiri District in the state of Maharashtra.
  • The establishment of a hub is an attempt to meet operators’ demands for the adoption of a market-based gas-pricing regime. But India faces challenges in making the dream a reality, amid concerns over third-party access and competition.
  • The gas hub plan ties in with Prime Minister Narendra Modi’s efforts to boost the share of natural gas in India’s energy mix to 15% by 2030, from just over 6% now.
  • Domestic supply is also increasing. ONGC, India’s largest producer, supplied 23.5bn cubic meters of gas in the 2017-18 financial year and plans to almost double this within the next four years.
  • The Indian authorities are considering overhauling the policy of fixed domestic gas prices, currently based on a formula derived from prices in the US, Canada, UK, and Russia. Delhi sees itself as a potential candidate for Asia’s largest LNG trading hub, in a region that lacks accurate benchmarks reflecting Asian gas fundamentals.
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Power sector distortions dented GDP by 4% in FY’15-16: World Bank

Distortions in the power sector had imposed a total economic cost of around $ 86.1 billion or 4.13 per cent of India’s Gross Domestic Product (GDP) in the financial year 2015-2016 according to a World Bank report.

The fiscal cost, consisting of subsidies to distribution utilities, was $ 8.8 billion (or 0.42 per cent of GDP) in the financial year 2015-2016 according to the ‘In the dark’ report by Fan Zhang, Senior Economist, South Asia Region, World Bank.

Commenting on the immediate interventions the government can take, Zhang told BusinessLine, “It is very important to rapidly increase efficiency by addressing institutional distortions and this should be a top priority. Some of the tools to address this institutional distortion include promoting competition and providing non-discriminatory access to fuel.”

According to the report, the impact of power shortages on downstream rural households and firms is the second-largest source of economic cost, estimated at 1.42 per cent of GDP a year. “It includes the potential income losses of unelectrified households and the income losses of households and firms that are already connected to the grid but affected by power outages,” the report added.

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India Creates World Record in Non-Stop Nuclear Power Production

India’s Kaiga Atomic Power Station has set a new world record as one of its units completed uninterrupted operation for more than 941 days on Monday morning. This is a record for all kinds of nuclear power-generating units in the world, including advanced gas-based reactors.

KGS located in the sylvan surroundings of the Western Ghats at Kaiga in Uttara Kannada district of the southern state of Karnataka is a cluster of four indigenously developed Pressurized Heavy Water Reactors of 220 MW each.  The first and second reactors started commercial operation in the year 2000, and the third and fourth reactors in the years 2007 and 2011.

Currently, India has 22 nuclear power reactors with an installed capacity of 6780 megawatts while 21 other reactors are under the different stage of construction, which includes four units at Kudankulam with Russian collaboration and one fast breeder reactor augmenting the total installed capacity to 22480 MW by 2031-32.

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Panel suggests measures to tackle crisis in stressed thermal power projects

Earlier this month, the High-Level Empowered Committee (HLEC) set up by the Government of India in July 2018 came out with its report on stranded thermal power projects. The Committee, chaired by Cabinet Secretary P K Sinha, has assessed the landscape of these stranded assets and identified the various reasons that have contributed to the current scenario. This report focused on 34 thermal power stations, totaling to a capacity of 40 gigawatts (GW), which are entirely fuelled by coal and lignite. The report has also suggested measures to resolve the challenges. These power plants were first identified by the Ministry of Power as stressed assets in March 2017.

The Committee has assessed the landscape of these stranded assets and identified the various reasons that have contributed to the current scenario. The report has also suggested measures to resolve the challenges. These power plants were first identified by the Ministry of Power as stressed assets in March 2017.

Multiple reasons behind the crisis:

The HLEC identified several critical reasons that have contributed to the crisis, which has been festering for more than two years now.

While the Twelfth Five Year Plan had envisaged a capacity addition requirement of 88 GW, 99 GW capacity was added during the corresponding period — this led to a glut of supply, causing plants to perform below their rated capacities.

Apart from this, the debt burden of the distribution utilities and the financial stress on banks/financial institutions as well as promoters and bidders.

It is important to note that a significant chunk of the problem has been caused by the erratic coal supply and the uncertainty of coal supplies due to the scrapping of mine auctions by the Supreme Court. Clearly, institutional challenges related to the government have contributed to the problem.

In the case of the Ultra Mega Power Projects (UMPP), for which bidding took place, several players quoted very aggressively, a decision they have since come to regret. Several other promoters did not even secure coal linkages before commencing with the project. Cost and time overruns also took place with some.

Coal supply is an inter-ministerial issue, whereby the ministries for coal and railways have been requested to work out mechanisms to address short-term issues of supply, alongside the sale of coal at notified prices without entering bidding in case of short-term power purchase agreements.

Further, linking coal supply to power plant efficiency is a good way to incentivize better, newer and more efficient assets.

Closing down of old, inefficient thermal power units make for good economics and good environmental sense.

Several measures related to power markets to address the financial risks have been strongly recommended by the HLEC. These include getting NTPC or any other agency to act as an aggregator for power purchases, which can subsequently be sold to distribution utilities.

Further, suggestion on payment security mechanism—all PPAs have support for a letter of credit (LoC) for one month’s purchase equivalent to guarantee it. It would rather be prudent to increase the value of the LoC instead of seeking a separate mechanism, and ensure that it can trigger automatically against a payment default or delay.

In conclusion, the HLEC has shown that ways can be found to sort out the mess within the thermal power sector for coal-fired power plants. However, the sole focus on coal has meant that gas-based power plants will have to wait for their turn under the sun.

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PM Modi lays foundation stones of City Gas Distribution projects in 129 districts

The Prime Minister also launched the 10th CGD bidding round. Stressing that the nation is now moving towards Gas Based Economy, Prime Minister said the Union Government is paying attention towards all dimensions of Gas Based Economy.

The foundation stone laying of City Gas Distribution Projects is symbolic of the transformation that India is witnessing.

CGD networks will increase the availability of clean cooking fuel or Piped Natural Gas and transportation fuel Compressed Natural Gas for consumers.

These projects will bring gas to around 70% of the country’s population in 26 states and Union Territories.

The expansion of CGD network will also benefit industrial and commercial units by ensuring the uninterrupted supply of natural gas.

Till 2014, 66 districts were covered by the City Gas Distribution Network. Today work is on in 174 districts.

The target is to cover more than 400 districts in the next two to three years. In 2014 only 55% of homes were covered by under the domestic gas net…in just 4 years this has gone up to 90 %.

Natural gas forms 6.2% of the energy mix in India while the global average is 24%. Part of the efforts to fulfill the pledge taken in Paris includes

– Setting up 5000 Compressed Bio Gas plants to create clean energy from farm wastes.

– Ethanol blending has gone up nearly four times as compared to 2014.

– The government has upgraded from BS Four engines to BS 6 engines.

– Work is in progress to set up 10,000 CNG Stations in the next 10 years so that tier 2 and tier 3 towns can be connected to CNG stations.

Prime Minister Narendra Modi used the Natural Gas sector to highlight the transformation that is sweeping across India since 2014.

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ADB inks loans agreements worth $574 million for various projects in India

The Asian Development Bank (ADB) signed three loan agreements with the government to provide debt of $574 million for on-lending, electricity transmission, and water supply infrastructure projects.

ADB and the government signed three separate loan agreements for USD 300 million, USD 169 million and USD 105 million.

As part of the loan agreements, ADB will provide USD 300 million to support lending by India Infrastructure Finance Company Ltd (IIFCL).

The project will enhance the availability of long-term finance for PPP projects, improve operations capacity of IIFCL and expand the portfolio of infrastructure financing instruments available to IIFCL, said Finance Ministry Additional Secretary Sameer Kumar Khare, who signed the agreement on behalf of the government.

ADB said that this loan of USD 300 million is expected to help catalyze the financial closing of USD 2.4 billion investments.

The project supports the renewed effort of the government of India in accelerating infrastructure growth through increased private sector investment. The project is relevant and responsive to the constraints to bank-based infrastructure financing, fiscal space creation, and repercussions on GDP growth, ADB said.

Among others, the USD 169 million loan is the first tranche of up to USD 500 million loans that will be used to develop climate-resilient water supply, sewerage and drainage infrastructure in at least 10 cities in Tamil Nadu.

The state has faced recurring droughts and erratic monsoons in the recent past resulting in severe water scarcity and urban flooding. ADB’s support will help address these complex urban challenges through innovative and climate-resilient investment and deeper institutional support, Khare said.

The USD 105 million is the third tranche of the USD 350 million multi-tranche financing facility for multi-tranche financing facility (MFF) for Himachal Pradesh Clean Energy Transmission Investment Program approved by the ADB Board in September 2011.

It is aimed at developing and expanding the transmission network to evacuate clean and renewable power generated from the state’s hydropower sources to load centers within and outside the state, ADB said.

It is also supporting the institutional capacity development of the state transmission utility, Himachal Pradesh Power Transmission Corporation Limited (HPPTCL), as the executing agency for this project.

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Ministry of Renewable Energy prepares draft of Indian Wind Turbine Certification Scheme

The Union Ministry of New and Renewable Energy (MNRE), in consultation with National Institute of Wind Energy Chennai, has prepared a draft of a new scheme called Indian Wind Turbine Certification Scheme (IWTCS), which incorporates various guidelines of the Turbine Certification Scheme.

The scheme is a consolidation of all relevant national and international standards, technical regulations and requirements issued by Central Electricity Authority (CEA), guidelines issued by MNRE and other international guidelines.

The IWTCS is a consolidation of relevant National and International Standards (IS/IEC/IEEE), Technical Regulations and requirements issued by Central Electricity Authority (CEA), guidelines issued by MNRE and other international guidelines. It also incorporates various best practices from other countries to ensure the quality of wind energy projects.

The draft Scheme enlists the guidelines for the benefit of all the stakeholders from concept to lifetime of the wind turbine, including Indian Type Approved Model (ITAM), Indian Type Certification Scheme (ITCS), Wind Farm Project Certification Scheme (WFPCS) and Wind Turbine Safety & Performance Certification Scheme (WTSPCS).

The IWTCS is envisaged to assist and facilitate the following stakeholders; (i.) Original Equipment Manufacturers (OEMs) (ii.) End Users -Utilities, SNAs, Developers, IPPs, Owners, Authorities, Investors, and Insurers (iii.) Certification Bodies (iv.) Testing Laboratories.

Need for a scheme in this context:

Wind sector in India is growing at a rapid pace with increased utilization of wind energy for power development. The modern wind turbines have higher hub heights, larger rotor diameter, higher capacity and improved Capacity Utilization Factor (CUF) along with technological improvements.

Under these developments, there is a need for a comprehensive document which provides the complete technical requirements which shall have to be complied by the wind turbines for the safe and reliable operation by all the stakeholders viz, OEMs, Independent Power Producers (IPPs), wind farm developers, Financial Institutions, Utilities, and others. Also, there is a need for technical regulations which shall facilitate common ground for OEMs, Developers, Investors and Financial Institution for systematic development.

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ISPRL Signs Memorandum of Understanding with ADNOC to explore storage of Crude Oil at Padur Underground Facility in Karnataka

Indian Strategic Petroleum Reserves Ltd (ISPRL) signed a Memorandum of Understanding (MoU) in Abu Dhabi with the Abu Dhabi National Oil Company (ADNOC) to explore the possibility of storing ADNOC crude oil at ISPRL’s underground oil storage facility at Padur in Karnataka, which has a 2.5 million tonne capacity. Under the MoU, ADNOC is expected to store crude in compartments at Padur.

The MoU with ISPRL, an Indian government-owned company mandated to store crude oil for emergency needs, follows the arrival, on November 4, of the final shipment of the initial delivery of ADNOC crude to be stored in another ISPRL underground facility at Mangalore, also in Karnataka, which will store 5.86 million barrels of ADNOC crude oil.

ISPRL is an Indian government-owned company mandated to store crude oil for emergency needs.

ADNOC is the only foreign oil and gas company, so far, to invest by way of crude oil in India’s strategic petroleum reserves program.

India is an important oil market and the MoU underscores the strategic energy partnership between the UAE and India that leverages the UAE and ADNOC’s expertise and oil resources.

The agreement will allow ISPRL to explore, with ADNOC, opportunities related to the possible storage of ADNOC crude at Padur, which would help to significantly strengthen the country’s strategic petroleum reserves.

It also reflects the strong bonds of cooperation between India and the UAE and provides a foundation for strengthening and expanding the strategic energy relationship between the two nations.

ISPRL has already built 5.33 million tonnes of underground storage capacity at three locations – Visakhapatnam (1.33 million tonnes), Mangalore (1.5 million tonnes) and Padur (2.5 million tonnes), that can meet around 9.5 days of the country’s oil needs as per consumption data of last financial year.

In June 2018, the Union Government had announced the creation of two new reserves, a 4 million tonnes storage facility at Chandikhol in the eastern state of Odisha and an additional 2.5 million-tonne facility at Padur.

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Power Minister inaugurates INSPIRE 2018; gives away awards to the winners of the #InnovateToINSPIRE challenge

“Energy efficiency saves the environment and makes businesses more competitive. While India needs to grow but we need to grow responsibly and the Government has taken several measures in this regard,” said Shri R K Singh, Union Minister of State (IC) for Power and New & Renewable Energy.

The #InnovateToINSPIRE challenge was organized by EESL and World Resources Institute (WRI) between 21 August 2018 and 12 October 2018 in the run-up to INSPIRE 2018. The challenge invited participants to submit sustainable and scalable solutions to seven specific challenges spanning grid management, e-Mobility, energy efficient technologies and financial instruments. From 94 entries, four winners were selected by an eminent jury comprised of Indian and international experts in the field of energy. The winning entries received an award of Rs. 5 lakhs, each, along with mentoring and guidance from EESL to help them bring their solutions to market.

To support investments in new, innovative and scalable business models, EESL and Asian Development Bank (ADB) signed an agreement for a Global Environment Facility (GEF) grant of USD 13 million to establish an Energy Efficiency Revolving Fund (EERF). EERF aims to expand and sustain investments in the energy efficiency market in India, build market diversification, and scale up existing technologies.

During INSPIRE 2018, EESL and GAIL, a wholly owned subsidiary of GAIL (India) Limited signed a MoU to develop natural gas-based cogeneration and trigeneration projects in Commercial & Industrial Sectors in India. This MoU is set to benefit industries such as Hotels, Hospitals, Airports, Commercial Malls, Commercial/Government Buildings, Integrated Residential Complexes, Educational Institutions, Data Center, among others, with the advantages of Combined Heat & Power technology.

INSPIRE 2018 has been organized in collaboration with the Bureau of Energy Efficiency (BEE), The Energy & Resources Institute (TERI), Asian Development Bank (ADB), the United Nations Environment Program (UNEP), and the Administrative Staff College of India (ASCI). The event is bringing together policy-makers, influencers, innovators, thought leaders, researchers, leading energy-efficient companies, government agencies, business leaders and other stakeholders to deliberate on key energy policies, market transformation strategies, and sustainable business models that will help leverage the full potential of energy efficiency and bring its multiple co-benefits to the fore.

The event was attended by senior officials from the Ministry of Power, EESL, Dr. Junaid K. Ahmad, Country Director, The World Bank (WB); Mr. Kenichi Yokoyama, Country Director, Asian Development Bank (ADB).

About EESL   

Energy Efficiency Services Limited (EESL), under the administration of Ministry of Power, Government of India, is working towards mainstreaming energy efficiency and is implementing the world’s largest energy efficiency portfolio in the country. Driven by the mission of Enabling More – more transparency, more transformation, and more innovation, EESL aims to create market access for efficient and future-ready transformative solutions that create a win-win situation for every stakeholder. By 2020, EESL seeks to be a US$ 1.5 billion (INR 10,000 crore) company.

EESL has pioneered innovative business approaches to successfully roll-out large-scale programs that allow for incentive alignment across the value chain and rapidly drive transformative impact. EESL aims to leverage this implementation experience and explore new overseas market opportunities for diversification of its portfolio. As on date, EESL has begun its operations in UK, South Asia, and South-East Asia.

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