Company Highlights

Key developments in the past 12 months

It was another year of significant action for power sector companies. In the generation segment, while thermal and hydro project commissioning was led by public majors, the renewable space was dominated by the private sector, which won a number of wind and solar power projects under central and state government tenders. The other highlights were the centralised power purchase agreement bids, which were awarded to private players, and coal supply contracts awarded under the SHAKTI scheme.

On the equipment side, tendering activity gathered pace as gencos placed orders for emission control equipment. In the transmission and distribution (T&D) segment, a number of contracts were awarded in line with the government’s distribution segment programmes and plans for evacuation of renewable energy. Contracts for smart meters and e-vehicles under the central government’s procurement plans were also won by private and public players during the year.

The power sector also witnessed increased merger and acquisition (M&A) activity across the value chain to reduce the debt burden and scale up capacity. Power Line presents a roundup of the key developments relating to power sector majors in the past year or so…

 

Key projects commissioned – Generation

Power majors NTPC Limited and NHPC Limited commissioned several key thermal and hydropower projects during the year, while large renewable power players Tata Power Renewable Energy Limited (TPREL) and ReNew Power Ventures led capacity additions in the solar and wind power segments.

  • During the past year, NTPC Limited has commissioned several projects – the 50 MW Rojmal wind project in Gujarat (January 2018), the third 800 MW unit of the 2,400 MW Kudgi coal-based power station in Karnataka (March 2018), the first 800 MW unit of the Lara super thermal power project (TPP) in March 2018, an 8 MW small- hydro power (SHP) project at Singrauli, Madhya Pradesh (March 2018), its first solar photovoltaic (PV) grid-connected project of 50 MW in Tamil Nadu (March 2018), and the first 660 MW unit of the 1,320 MW Meja TPP in Allahabad, Uttar Pradesh (April 2018). It also commenced operations at its Dulhaganga coal mine in Odisha.
  • In May 2018, NHPC Limited commissioned the 330 MW Kishanganga hydroelectric project (HEP) in Bandipore, north Kashmir. The project was started in 2007 but got stalled in 2010. Bharat Heavy Electricals Limited (BHEL) was the principal contractor for the project. In April 2018, NHPC Limited commissioned its first solar PV project of 50 MW in Tamil Nadu as part of the MoU signed with the Solar Energy Corporation of India (SECI).
  • In November 2017, BHEL commissioned the second 30 MW unit of the 60 MW Tuirial HEP in Mizoram.
  • In August 2018, ReNew Power Ventures commissioned the first phase (126 MW) of its 250 MW wind project located in Kutch district of Gujarat. Earlier, in October 2017, ReNew Power and China-based Hareon Solar Technology Company Limited jointly commissioned a 172 MW solar PV power plant in Telangana.
  • In September 2018, Essar Power Transmission Company Limited commissioned the 337 km 400 kV Mahan-Sipat transmission line, the final leg of a 465 km transmission system consisting of three interstate transmission lines. The lines have been built at an investment of Rs 24 million, of which Rs 20 billion have been spent on the Mahan-Sipat section.
  • In July 2018, TPREL commissioned two solar power plants with an aggregate capacity of 100 MW at the Ananthapuramu solar park in Andhra Pradesh. Earlier, in January 2018, it commissioned a 50 MW solar PV plant at the Pavagada solar park in Karnataka, in addition to a 100 MW solar plant commissioned in December 2017. In November, the company commissioned a 30 MW solar power plant in Palaswade, Maharashtra, and a 25 MW solar PV plant in Charanka, Gujarat Solar Park.
  • In January 2018, Azure Power Global Limited commissioned a 100 MW solar power project in Telangana. In April 2018, it commissioned a 40 MW solar power plant in Uttar Pradesh.
  • In January 2018, NLC India Limited commissioned a 130 MW solar power plant at Neyveli, Tamil Nadu. The plant consists of two 65 MW units and is spread over four different locations in Neyveli.
  • In January 2018, Meghalaya Power Generation Corporation Limited commissioned the 40 MW New Umtru HEP in Ri Bhoi district, Meghalaya.
  • In January 2018, Larsen & Toubro (L&T) commissioned the Bhermara combined cycle power plant in Bangladesh. The plant was developed by North Power Generation Company Limited , a fully owned subsidiary of the Bangladesh Power Development Board (BPDB). Earlier, in December 2017, L&T commissioned a 225 MW CCPP in Chittagong, Bangladesh.

Key projects commissioned – Transmission and distribution

Transmission and equipment majors such as Power Grid Corporation of India Limited (Powergrid), GE Power India Limited, Sterlite Power and ABB completed and commissioned several key transmission line projects, as well as grid strengthening and modernisation projects.

  • In September 2018, Essar Power commissioned the 337 km Mahan-Sipat transmission line, the final leg of a 465 km transmission system consisting of three interstate transmission lines that have been built at an investment of Rs 24 million. The 400 kV lines will help Essar Power’s 1,200 MW Mahan Thermal Power Plant in Madhya Pradesh to evacuate its entire generation. The Mahan-Sipat transmission line is part of the interstate transmission system (ISTS) and it extends from Mahan in Madhya Pradesh to the Sipat pooling station in Bilaspur, Chhattisgarh, which is connected to the national grid.
  • In July 2018, GE Grid Solutions commissioned the first phase of Powergrid’s mega-grid stabilisation project for the northern region grid, the unified real-time dynamic state measurement project which has been executed by GE T&D India Limited. Upon completion, it will be the world’s largest wide area monitoring system and will enable Powergrid to monitor the power flow across 110 substations in the northern grid.
  • In April 2018, ABB commissioned India’s first industrial solar-powered microgrid at its Vadodara manufacturing facility in Gujarat.
  • In April 2018, Tata Power launched an internet-of-things-based smart consumer substation in Mumbai. The solution is enabled by Tata Communications. It will provide an overview of the CSS spread across different zones, and help monitor its distribution substations in an effective manner.
  • In February 2018, Sterlite Power Grid Ventures Limited commissioned the 400 kV double circuit (D/C) Nizamabad-Shankarapally and 400 kV Maheshwaram-Mahboobnagar power transmission lines in Telangana. Recently, in August 2018, it upgraded the capacity of its 132 kV Hatia-Kamdara transmission line (61.6 km) in Jharkhand and delivered the project five months before schedule. In September 2018, it doubled the capacity of critical transmission corridors in Varanasi, Uttar Pradesh.
  • In November 2017, Torrent Power Limited commissioned a 400 kV gas-insulated switchgear (GIS) substation in Ahmedabad, Gujarat, to meet the power requirements of the city. The 945 MVA substation has increased the city’s power import capacity to 2,965 MVA.
  • In October 2017, Powergrid completed and charged the 220 kV Leh-Khalsti line section of the 220 kV Alusteng (Srinagar)-Leh transmission line, along with 220/66 kV GIS substations in Leh and Khalsti, Jammu & Kashmir. The project is part of the central government’s initiative to extend grid connectivity to the difficult geographical terrain of Leh and Ladakh. In September 2017, Powergrid commissioned the second 1,500 MW pole of the Champa-Kurukshetra high voltage direct current line in Chhattisgarh, which will improve the power supply situation in the northern region.

Project secured

Several key transmission line projects were awarded by transmission majors such as Powergrid, Adani Transmission Limited (ATL) and Sterlite Power. In the renewables segment, Azure Power, Sembcorp Green Infra and TPL won key projects. Another highlight was the award of smart meter tenders by Energy Efficiency Services Limited (EESL).

  • In September 2018, Adani Green Energy won SECI’s tender for setting up 300 MW wind generation project to be set up anywhere in India. The project is expected to be commissioned by the second quarter of 2020-21.
  • In July 2018, Sterlite Power won six transmission projects worth Rs 64 billion in Brazil. The project licences include a 30-year contract to operate the lines. Earlier, in December 2017, the company secured a transmission project contract worth $800 million in Brazil. The project entails building and operating about 1,800 km of transmission lines running through Brazil’s northern states of Para and Tocantins.
  • In July 2018, TPREL won a contract from Karnataka Renewable Energy Development Limited to develop 250 MW of solar power capacity in Tumkur district, Karnataka. The project has been secured through a competitive bidding process at a tariff of Rs 2.85 per kWh.
  • In June 2018, ATL emerged as the successful bidder for implementing the transmission project for the 1,980 MW Ghatampur TPP in Uttar Pradesh. The Ghatampur TPP is being developed by a joint venture (JV) between NLC India Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited. Earlier, in February 2018, ATL received a letter of intent from PFC Consulting Limited for the Fatehgarh-Bhadla transmission project in Rajasthan to construct, own, operate and maintain the project.
  • In February 2018, Powergrid emerged as the lowest bidder for the 765 kV Vindhyachal-Varanasi transmission line. The Rs 10 billion project is a part of the new Western Region-Northern Region interregional corridor.
  • In February 2018, TPL emerged as the biggest winner in SECI’s 2 GW wind power project auction. The company won a capacity of 499.8 MW. The project is scheduled to be commissioned within 18 months from the effective date of the power purchase agreement (PPA). Earlier, in November 2017, TPL secured a 124.4 MW wind power project from Maharashtra State Electricity Distribution Company Limited under the competitive bidding and e-reverse auction process.
  • In November 2017, Sembcorp Green Infra Limited secured a 250 MW project in the second wind power tender conducted by SECI. The project is expected to commence operations by the first half of 2019. In March 2018, the company won another 300 MW project in the wind power auction conducted by SECI proposed to be set up in Gujarat and will be connected to the country’s interstate transmission system.
  • In October 2017, Azure Power Global Limited won a 1.3 MW solar rooftop project through an auction conducted by NTPC Vidyut Vyapar Nigam Limited. It secured another 250 MW of solar PV capacity in the same month under the domestic content requirement tender conducted by NTPC. In January 2018, the company secured a 200 MW solar PV power project and a 2 MW rooftop solar project in Rajasthan from Udaipur Smart City Limited.
  • In October 2017, ITI Limited quoted the lowest bid of Rs 2,503 per unit in the reverse auction conducted by EESL for the procurement of 5 million smart meters. The second and third lowest bidders were Genus Power Infrastructure Limited and Karnataka State Electronics Development Corporation Limited. Earlier, in October 2017, L&T quoted the lowest bid of Rs 2,722 per single-phase smart meter for EESL’s mega tender for the procurement of 5 million smart meters.

MoUs and JVs

Some of the key MoUs signed and JV companies formed in the past year are as follows:

  • In September 2018, Tata Power signed an agreement with the Afghanistan government-owned electricity distribution company Da Afghanistan Bresha Sherkat for the generation, transmission and distribution of electricity. Through the agreement, Tata Power aims to tap opportunities in Afghanistan’s power sector.
  • In July 2018, GE signed an agreement with French utility EDF Energy for constructing six evolutionary power reactors at the ongoing 9,900 MW Jaitapur nuclear power plant in Maharashtra. Under the agreement, GE Power will design the conventional island for the nuclear power plant and will be responsible for supplying its main components.
  • In June 2018, BHEL signed a technology collaboration agreement (TCA) with Korea-based Nano Company Limited to design and manufacture solutions to ensure the compliance of its TPPs with the new emission norms issued by the Ministry of Environment, Forest and Climate Change (MoEFCC). Earlier, in March 2018, BHEL entered into a TCA with South Korea-based HLB Power. The agreement covers in-house design and manufacture of large-size gates and dampers for coal-fired power plants, to be commissioned or retrofitted with high capacity emission control equipment.
  • In June 2018, BSES Yamuna Power Limited (BYPL) signed an MoU with Business Finland, a Finnish government agency, to collaborate on energy efficiency, energy storage, smart grid initiatives and electric vehicles (EVs), etc.
  • In May 2018, Infrastructure Leasing and Financial Services Limited (IL&FS) partnered with SB Energy Holdings Limited (part of the Softbank Group) to develop grid-connected solar parks across India. IL&FS and SB Energy will jointly develop more than 20 GW of solar parks by 2025.
  • In May 2018, Essar Power Limited signed an MoU with Russian firm Inter RAO Export to jointly develop power projects in India. Under the agreement, both companies will explore opportunities for joint investment in new coal-based power assets, including associated coal mines, and in brownfield expansion of the existing coal-based power plants.
  • In May 2018, NTPC Limited signed an MoU with the Bihar government for the transfer of three power projects. Under the agreement, NTPC will acquire 100 per cent stake in two JVs, Nabinagar Power Generating Company Limited (NPGC) and Kanti Bijlee Utpadan Nigam Limited (KBUNL), and also buy the 720 MW Barauni thermal power station (TPS).
  • In April 2018, BSES Rajdhani Power Limited entered into a strategic partnership with EESL for promoting energy efficiency measures and renewables in south and west Delhi. Under the agreement, nearly 10,000 inefficient agricultural pumps are expected to be replaced, resulting in energy savings of around 1.5 billion units over the course of three years.
  • In April 2018, the Indian Energy Exchange entered into an MoU with the Japan Electric Power Exchange to jointly explore opportunities in the electricity market. The two energy exchanges will cooperate on technology and product development. The scope of the MoU also includes organising knowledge-sharing programmes.
  • In March 2018, ReNew Power Ventures Private Limited signed an MoU with the Andhra Pradesh government for developing 1,000 MW of solar power capacity and 1,000 MW of wind capacity in the state, over the next five years. As per the agreement, ReNew Power will invest Rs 130 billion in the proposed projects.
  • In February 2018, JSW Energy Limited entered into an MoU with the Maharashtra government to set up facilities for manufacturing EV and energy storage systems in the state.
  • In January 2018, Power Finance Corporation Consulting Limited signed an MoU with PTC India Limited for exploring coal-based power procurement opportunities to facilitate the signing of PPAs with discoms.
  • In November 2017, Tata Power Delhi Distribution Limited and German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) signed an MoU to explore the potential areas of collaboration at the electric utility level. The MoU was signed for promoting grid-connected solar rooftop PV, energy storage systems, EVs and smart grid projects, among other initiatives.
  • In October 2017, Fortum Oyj, a Finnish clean energy firm, signed an MoU with NBCC (India) Limited to set up EV charging infrastructure at all upcoming NBCC projects across India. The scope of the project includes all major activities from design and execution to fund infusion and operations using a cloud-based system.

Key equipment contracts – Generation

In the generation segment, a series of equipment contracts were awarded, particularly in the emission control technology segment, to BHEL, Reliance Infrastructure (RInfra), GE and other players.

  • In September 2018, GE Power was selected by NTPC to upgrade its coal-fired boilers in India with its low NOx firing system. This is the first installation of this technology in India and it will be implemented at NTPC’s 2×490 thermal plant in Dadri, Uttar Pradesh. In July 2018, GE Power India secured two boiler equipment orders from BHEL for supercritical TPPs in Jharkhand and Tamil Nadu worth Rs 4.67 billion. In March 2018, it secured a Rs 3.09 billion contract from NTPC to install a flue gas desulphurisation (FGD) system at the 1,600 MW Phase 1 of NTPC’s super TPP in Telangana. Earlier, in September 2017, GE Power India was awarded a contract by the Shapoorji Pallonji Group for the supply of power generation equipment to its upcoming 220 MW CCPP in Bhola district, Bangladesh, and a contract worth Rs 3.27 billion from Doosan Power Systems India Private for the supply of four units of electrostatic precipitators (ESPs) for supercritical units in Uttar Pradesh.
  • Recently, in June 2018, Siemens Gamesa Renewable Power received an order from ReNew Power Ventures Private Limited for setting up a 150 MW wind farm in Kutch district, Gujarat. In April 2018, it secured an engineering, procurement, construction (EPC) contract for the country’s first large commercial-level wind-solar hybrid project in Karnataka. In November 2017, it also secured an order from Orange Renewable for setting up a 200 MW wind power project in Poovani, Tamil Nadu.
  • In July 2018, ThyssenKrupp secured a contract worth $115 million from DPSI to supply coal handling systems for two TPPs in Uttar Pradesh. The order involves engineering, delivery and installation of the coal handling systems, including associated structural and electrical works.
  • In June 2018, BHEL won two orders aggregating Rs 1.25 billion for setting up solar PV power projects in Gujarat and another two orders aggregating Rs 10 billion for the supply of emission control equipment from Telangana State Power Generation Corporation Limited (TSGENCO). Earlier, in April 2018, it secured a Rs 44 billion order from UPRVUNL to set up a 660 MW supercritical thermal power plant in Kanpur, Uttar Pradesh, and another Rs 1,370 million order for the renovation and modernisation of ESPs for the Ramagundam super thermal power station (STPS). In March 2018, it won an order of Rs 117 billion from NTPC’s JV company Patratu Vidyut Utpadan Nigam Limited to set up the 2,400 MW Patratu supercritical power plant in Ramgarh district, Jharkhand. In the same month, it secured an order for setting up a 75 MW solar PV power plant in Gujarat, its largest solar PV project. In January 2018, it secured a Rs 28 billion contract from Maharashtra State Power Generation Company Limited for setting up the 600 MW Unit 6 of its Bhusawal coal-based power station. In October 2017, BHEL secured a Rs 204 billion EPC order from TSGENCO for the 4,000 MW Yadadri supercritical power project. In December 2017, it secured an order worth Rs 73 billion from TANGEDCO for setting up the 1,320 MW Udangudi super critical power plant in Thoothukudi district, Tamil Nadu.
  • In February 2018, RInfra received an EPC contract worth Rs 36.47 billion from TANGEDCO for the balance of plant (BoP) package and allied civil works for the 1,600 MW Uppur super thermal power plant in Tamil Nadu. Earlier, in January 2018, the company secured an EPC contract worth Rs 5.67 billion from NTPC for carrying out FGD works at the latter’s 1,500 MW Jhajjar coal-based power plant in Haryana. In December 2017, it secured orders worth Rs 5 billion in Bangladesh for setting up infrastructure for Reliance Power Limited’s 750 MW liquefied natural gas (LNG)-based CCPP at Meghnaghat, and building a 500 million standard cubic feet per day floating storage regasification-based LNG terminal on Kutubdia Island. In November 2017, it secured an EPC contract for Units 3 and 4 of 1,000 MW each of the Kudankulam Nuclear Power Project (KNPP) in Tamil Nadu.
  • In February 2018, Suzlon Energy Limited secured an order for a 96.6 MW wind energy project from ReNew Power Ventures. In March 2018, the Suzlon Group won two wind power projects aggregating 500 MW to be set up in Kutch district, Gujarat. Suzlon will execute both projects on a turnkey basis.
  • In February 2018, Gamesa Renewable Energy won two EPC contracts for the construction of 160 MW of solar capacity in Tamil Nadu and Karnataka. As per the contracts, the firm will build two large-scale solar farms of 100 MW and 60 MW capacity.
  • In November 2017, L&T secured an EPC contract worth $250 million for setting up a 400 MW gas-based power plant in Bangladesh. In February 2018, it secured contracts worth Rs 5.9 billion from NLC India Limited to develop two solar parks with an aggregate capacity of 200 MW in Tamil Nadu and Rajasthan. In March 2018, L&T Special Steels and Heavy Forgings Private Limited, a JV of L&T Limited and Nuclear Power Corporation of India Limited (NPCIL), secured an order worth Rs 4.42 billion for the supply of forgings for steam generators from NPCIL. Recently, in September 2018, it won two orders for setting up FGD systems from NTPC at its Vindhyachal Super Thermal Power Plant in Madhya Pradesh and Darlipali Super Thermal Power Project in Odisha.

Key equipment contracts – Transmission and distribution

Several T&D equipment contracts were also awarded in the past year to key industry players including BHEL, L&T, Sterlite Power, Kalpataru Power Transmission Limited (KPTL), KEC International and ABB.

  • In July 2018, Hartek Power Private Limited secured an order from the Haryana State Industrial and Infrastructure Development Corporation for executing 132 kV substation projects at Kundli and Rai in Sonepat district, Haryana. The estimated cost of the project is Rs 91.7 million.
  • In June 2018, KPTL received orders aggregating Rs 3.46 billion for the construction of transmission lines and substations in India and Tajikistan. In addition, Rail Vikas Nigam Limited awarded a Rs 1.85 billion order to KPTL for railway electrification. Earlier, in March 2018, KPTL secured a Rs 6.43 billion turnkey order from TANGEDCO for the construction of a 765 kV D/C transmission line and a Rs 1.95 billion order for railway electrification networks from the Central Organisation for Railway Electrification. It also received transmission line contracts worth Rs 0.64 billion from Powergrid and other state utilities. In January 2018, KPTL secured a Rs 2.82 billion order from APTRANSCO for substations and associated transmission lines. In the same month, it also secured an order for a 400 kV D/C transmission line from Power Grid Company of Bangladesh (PGCB) and for a 132 kV transmission line from the Nepal Electricity Authority totalling about Rs 1 billion.
  • In June 2018, BGR Energy Systems Limited secured two orders aggregating Rs 4.31 billion from NPCIL for Units 3 and 4 of the KNPP. Under the first order worth Rs 3.45 billion, the scope of work includes design and detailed engineering, manufacture, procurement and supply of 400 kV and 230 kV switchyards and BoP electrical areas for the projects. In the same month, the company received another order worth Rs 0.86 billion for loading/unloading, transportation and handling at site, storage, etc. for the project. The project is expected to be completed within 60 months.
  • In May 2018, L&T Construction secured an EPC order worth Rs 24.4 billion for the erection and commissioning of multiple transmission and distribution (T&D) projects under the Sahaj Bijli Har Ghar Yojana (Saubhagya). Further, in January 2018, the power T&D business of L&T secured orders worth Rs 5.68 billion from both domestic and international customers. In the domestic market, the company secured an EPC order from Sterlite Power Grid Ventures Limited for 765 kV, 400 kV and 220 kV transmission lines associated with the Goa-Tamnar transmission project. Further, it secured an order from Chamundeshwari Electricity Supply Corporation Limited for system strengthening works in several subdivisions of the Mysuru area. The company also secured an order from the Egyptian Electricity Transmission Company for the turnkey construction of the 500/220 kV Sokhna GIS substation in Egypt. In September 2017, the power T&D business of L&T in collaboration with consortium partners secured an order from the Electricity Generating Authority of Thailand.
  • In May 2018, Sterlite Power secured a $47 million order from the South Korea-based GS Group for the supply of high-performance conductor such as ACCC (aluminium conductor composite core) for a new 169 km 400 kV transmission line project being developed by PGCB. This marked the largest global order for ACCC in the region.
  • In April 2018, Bajaj Electricals Limited secured orders aggregating Rs 23.89 billion from Purvanchal Vidyut Vitaran Nigam Limited for rural electrification projects in Uttar Pradesh. The orders were awarded to the EPC arm of the company under Saubhagya.
  • In February 2018, the Avantha Group Company, CG Power and Industrial Solutions Limited (CG) received an order worth Rs 1.07 billion from EESL for low voltage motors. In the tendering process, CG received more than 50 per cent of the tender quantity as the largest supplier.
  • In November 2017, BHEL won another order worth Rs 3.5 billion from Powergrid Medinipur-Jeerat Transmission Limited for setting up two 765 kV substations in West Bengal. The scope of work includes the construction of two greenfield 3,000 MVA, 765/400 kV substations at Medinipur and Jeerat.
  • In October 2017, KEC International Limited secured orders totalling Rs 19.31 billion across India, the Middle East, Africa, SAARC, West Asia and the Americas. In India, the company secured orders worth Rs 3.92 billion for the construction of 400 kV transmission lines and substations for Powergrid and Tamil Nadu Transmission Corporation Limited. In addition, the company’s solar business received orders worth Rs 90 million for the construction of a 6 MW ground-mounted project in northern India.

PPA developments

A major highlight during the year was the bidding undertaken by PTC India under the pilot scheme for power procurement aimed at alleviating the stress in the sector due to lack of demand from discoms.

  • In September 2018, PTC finalised bids for 1,900 MW of capacity at a tariff of Rs 4.20 per unit under the pilot scheme launched by the government to procure 2,500 MW of power for three years under the medium-term arrangement from commissioned power plants without PPAs.
  • In September 2018, NTPC Vidyut Vyapar Nigam (NVVN) signed a PPA with BPDB for the supply of 300 MW of power in Bangladesh from the Damodar Valley Corporation (DVC) with effect from September 10, 2018.
  • In July 2018, BYPL signed a PPA with SECI for 100 MW of wind power. Under the agreement, BYPL will procure power at a tariff of Rs 2.52 per unit for a period of 25 years, which will be supplied by wind power developers in Kutch, Gujarat.
  • In September 2018, Sembcorp Gayatri Power Limited (SGPL), a wholly owned subsidiary of Sembcorp Energy India Limited (SEIL), won a competitive tender to supply 250 MW of power to Bangladesh over a period of 15 years. Power supply will commence after the receipt of regulatory approvals.
  • In July 2018, NHPC Limited signed a PPA with Uttar Pradesh Power Corporation Limited for a period of 35 years. Under the agreement, NHPC will supply electricity from its 330 MW Kishanganga HEP, which was fully commissioned in April 2018.
  • In December 2017, JSW Energy Limited signed PPAs aggregating 208 MW with the Haryana Power Purchase Centre. The agreements included a 176 MW PPA for the supply of power from the Karcham Wangtoo HEP, and a 32 MW PPA under the group captive scheme for power supply from the Ratnagiri TPP. Both projects are owned by Himachal Baspa Power Company Limited.
  • In November 2017, Adani Power Limited signed a 25-year PPA with BPDB for the supply of power to Bangladesh. The contract was signed by Adani Power (Jharkhand) Limited for a net capacity of 1,496 MW to be supplied from the upcoming 1,600 MW coal-based plant in Godda, Jharkhand.

Fuel-related developments

While the supply of coal under the Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) scheme was a major highlight, the captive coal block segment also witnessed some key developments on account of Essar Power and Reliance Power.

  • In March 2018, Adani Enterprises Limited (AEL) signed a coal mining agreement with NLC India Limited for the development and operation of its Talabira II and III coal blocks in Odisha. The project is expected to generate revenue of Rs 122 billion. The Talabira II and III coal blocks are located in the IB valley coalfields in Sambalpur and Jharsuguda and have a total mining capacity of 20 million tonnes per annum (mtpa).
  • In March 2018, Reliance Power Limited was granted approval by the central government to produce 18 mtpa of coal from its Moher and Moher-Amlohri captive coal blocks in 2017-18. The company was given permission to produce 1 mtpa in addition to the cap of 17 mtpa for the financial year to run its 3,960 MW Sasan UMPP in Madhya Pradesh.
  • In February 2018, NTPC Limited invited bids for procuring 1,000 tonnes of agro residue-based fuel for its 1,820 MW Dadri coal-based power plant in Uttar Pradesh. The tender sought supply for two years and the price of agro residue-based pellets was capped at Rs 5,500 per tonne while that for briquettes of torrefied agro residue was at Rs 6,600 per tonne.
  • In February 2018, Essar Power Limited decided to surrender the Tokisud north coal block in Jharkhand owing to unexpected changes in tariff and delays in approval. Essar had already invested Rs 4.9 billion in the coal block and reportedly, an additional investment of Rs 6 billion was required.
  • In December 2017, Coal India Limited awarded coal contracts to the 10 power plants that had won supply contracts in the first round of the SHAKTI auction held in September 2017. In the first round of the auction, coal linkages for 27.18 million tonnes were booked. The beneficiaries included Adani Power, GMR Energy, KSK Energy and GVK Power.

Clearances received/accorded

  • In December 2017, the MoEFCC’s expert appraisal committee recommended grant of environmental clearance to NHPC Limited’s 800 MW Bursar HEP in Jammu & Kashmir. The Rs 245.89 billion project is proposed to be constructed on the Marusudar river in Kishtwar district.

Electric vehicle and charging infrastructure developments

In the e-mobility space, key highlights were Tata Power and JSW Energy announcing their foray into the EV segment, and EESL awarding a mega contract for the supply of EVs.

  • In September 2018, ABB unveiled its Terra HP fast-charging system at the MOVE Global Mobility Summit, in Delhi. The system can power batteries of a car in flat 8 minutes to run up to 200 km. Earlier, in February 2018, ABB India Limited installed its first public EV charging station at the NITI Aayog office in Delhi. The charging station can fully charge an EV in 30 minutes.
  • In June 2018, Tata Power Company partnered with Tata Motors Limited to set up EV charging stations in Maharashtra. As part of the initiative, EV charging stations have been installed at various locations.
  • In May 2018, Powergrid, in collaboration with L&T Metro Rail (Hyderabad) Limited, announced its plan to set up EV charging facilities at metro stations. Powergrid will initially develop the charging facilities at the Miyapur and Dr B.R. Ambedkar Balanagar metro stations and will eventually cover the entire metro corridor. The charging stations will be remotely operated and monitored by Powergrid.
  • In May 2018, NTPC installed an EV charging station at the Talcher STPS in Odisha. The charging station will power the EVs owned by the company and its employees. The company was initially seeking a pan-Indian licence to construct and set up EV charging stations across the country.
  • In March 2018, JSW Energy marked its entry in the EV, energy storage systems and charging infrastructure segments upon acquiring 100 per cent stake in JSW Electric Vehicles Private Limited at a face value of Rs 100,000. Also, it entered into an MoU with the Maharashtra government to set up EV manufacturing facilities and energy storage systems in the state.
  • In October 2017, EESL procured 500 EVs, of which 350 units were delivered by Tata Motors and 150 units by Mahindra. In the second phase, EESL was expected to order 10,000 EVs.  However, it decided to scrap the tender as the final deadline of May 2018 for the procurement of cars was not met. A new tender will be floated once EESL gets the charger and battery specifications from the Department of Science and Technology.

Mergers and acquisitions

The sector witnessed several merger and acquisition (M&A) deals, with key acquisitions being made by ReNew Power, ATL, Schneider Electric, ABB and Hinduja Power Corporation, amongst others.

  • In September 2018, European renewable energy generator Statkraft acquired the 100 MW Tidong hydropower project in Himachal Pradesh with 100 per cent stake acquisition from NSL Tidong Power Generation Private Limited. The project is approximately 60 per cent complete and the remaining construction will resume after the closing of the transaction. It is expected to be commissioned by the second quarter of 2020-21.
  • In July 2018, Sterlite Power won six transmission projects worth Rs 64 billion in Brazil. The project licences include a 30-year contract to operate the lines. Earlier, in December 2017, the company secured a transmission project contract worth $800 million in Brazil. The project entails building and operating about 1,800 km of transmission lines running through Brazil’s northern states of Para and Tocantins.
  • In July 2018, TPREL won a contract from Karnataka Renewable Energy Development Limited to develop 250 MW of solar power capacity in Tumkur district, Karnataka. The project has been secured through a competitive bidding process at a tariff of Rs 2.85 per kWh.
  • In June 2018, ATL emerged as the successful bidder for implementing the transmission project for the 1,980 MW Ghatampur TPP in Uttar Pradesh. The Ghatampur TPP is being developed by a joint venture (JV) between NLC India Limited and Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited. Earlier, in February 2018, ATL received a letter of intent from PFC Consulting Limited for the Fatehgarh-Bhadla transmission project in Rajasthan to construct, own, operate and maintain the project.
  • In February 2018, Powergrid emerged as the lowest bidder for the 765 kV Vindhyachal-Varanasi transmission line. The Rs 10 billion project is a part of the new Western Region-Northern Region interregional corridor.
  • In February 2018, TPL emerged as the biggest winner in SECI’s 2 GW wind power project auction. The company won a capacity of 499.8 MW. The project is scheduled to be commissioned within 18 months from the effective date of the power purchase agreement (PPA). Earlier, in November 2017, TPL secured a 124.4 MW wind power project from Maharashtra State Electricity Distribution Company Limited under the competitive bidding and e-reverse auction process.
  • In November 2017, Sembcorp Green Infra Limited secured a 250 MW project in the second wind power tender conducted by SECI. The project is expected to commence operations by the first half of 2019. In March 2018, the company won another 300 MW project in the wind power auction conducted by SECI proposed to be set up in Gujarat and will be connected to the country’s interstate transmission system.
  • In October 2017, Azure Power Global Limited won a 1.3 MW solar rooftop project through an auction conducted by NTPC Vidyut Vyapar Nigam Limited. It secured another 250 MW of solar PV capacity in the same month under the domestic content requirement tender conducted by NTPC. In January 2018, the company secured a 200 MW solar PV power project and a 2 MW rooftop solar project in Rajasthan from Udaipur Smart City Limited.
  • In October 2017, ITI Limited quoted the lowest bid of Rs 2,503 per unit in the reverse auction conducted by EESL for the procurement of 5 million smart meters. The second and third lowest bidders were Genus Power Infrastructure Limited and Karnataka State Electronics Development Corporation Limited. Earlier, in October 2017, L&T quoted the lowest bid of Rs 2,722 per single-phase smart meter for EESL’s mega tender for the procurement of 5 million smart meters.

MoUs and JVs

Some of the key MoUs signed and JV companies formed in the past year are as follows:

  • In September 2018, Tata Power signed an agreement with the Afghanistan government-owned electricity distribution company Da Afghanistan Bresha Sherkat for the generation, transmission and distribution of electricity. Through the agreement, Tata Power aims to tap opportunities in Afghanistan’s power sector.
  • In July 2018, GE signed an agreement with French utility EDF Energy for constructing six evolutionary power reactors at the ongoing 9,900 MW Jaitapur nuclear power plant in Maharashtra. Under the agreement, GE Power will design the conventional island for the nuclear power plant and will be responsible for supplying its main components.
  • In June 2018, BHEL signed a technology collaboration agreement (TCA) with Korea-based Nano Company Limited to design and manufacture solutions to ensure the compliance of its TPPs with the new emission norms issued by the Ministry of Environment, Forest and Climate Change (MoEFCC). Earlier, in March 2018, BHEL entered into a TCA with South Korea-based HLB Power. The agreement covers in-house design and manufacture of large-size gates and dampers for coal-fired power plants, to be commissioned or retrofitted with high capacity emission control equipment.
  • In June 2018, BSES Yamuna Power Limited (BYPL) signed an MoU with Business Finland, a Finnish government agency, to collaborate on energy efficiency, energy storage, smart grid initiatives and electric vehicles (EVs), etc.
  • In May 2018, Infrastructure Leasing and Financial Services Limited (IL&FS) partnered with SB Energy Holdings Limited (part of the Softbank Group) to develop grid-connected solar parks across India. IL&FS and SB Energy will jointly develop more than 20 GW of solar parks by 2025.
  • In May 2018, Essar Power Limited signed an MoU with Russian firm Inter RAO Export to jointly develop power projects in India. Under the agreement, both companies will explore opportunities for joint investment in new coal-based power assets, including associated coal mines, and in brownfield expansion of the existing coal-based power plants.
  • In May 2018, NTPC Limited signed an MoU with the Bihar government for the transfer of three power projects. Under the agreement, NTPC will acquire 100 per cent stake in two JVs, Nabinagar Power Generating Company Limited (NPGC) and Kanti Bijlee Utpadan Nigam Limited (KBUNL), and also buy the 720 MW Barauni thermal power station (TPS).
  • In April 2018, BSES Rajdhani Power Limited entered into a strategic partnership with EESL for promoting energy efficiency measures and renewables in south and west Delhi. Under the agreement, nearly 10,000 inefficient agricultural pumps are expected to be replaced, resulting in energy savings of around 1.5 billion units over the course of three years.

In April 2018, the Indian Energy Exchange entered into an MoU with the Japan Electric Power Exchange to jointly explore opportunities in the electricity market. The two energy exchanges will cooperate on technology and product development. The scope of the MoU also includes organising knowledge-sharing programmes.

  • In March 2018, ReNew Power Ventures Private Limited signed an MoU with the Andhra Pradesh government for developing 1,000 MW of solar power capacity and 1,000 MW of wind capacity in the state, over the next five years. As per the agreement, ReNew Power will invest Rs 130 billion in the proposed projects.
  • In February 2018, JSW Energy Limited entered into an MoU with the Maharashtra government to set up facilities for manufacturing EV and energy storage systems in the state.
  • In January 2018, Power Finance Corporation Consulting Limited signed an MoU with PTC India Limited for exploring coal-based power procurement opportunities to facilitate the signing of PPAs with discoms.
  • In November 2017, Tata Power Delhi Distribution Limited and German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) signed an MoU to explore the potential areas of collaboration at the electric utility level. The MoU was signed for promoting grid-connected solar rooftop PV, energy storage systems, EVs and smart grid projects, among other initiatives.
  • In October 2017, Fortum Oyj, a Finnish clean energy firm, signed an MoU with NBCC (India) Limited to set up EV charging infrastructure at all upcoming NBCC projects across India. The scope of the project includes all major activities from design and execution to fund infusion and operations using a cloud-based system.

Key equipment contracts – Generation

In the generation segment, a series of equipment contracts were awarded, particularly in the emission control technology segment, to BHEL, Reliance Infrastructure (RInfra), GE and other players.

  • In September 2018, GE Power was selected by NTPC to upgrade its coal-fired boilers in India with its low NOx firing system. This is the first installation of this technology in India and it will be implemented at NTPC’s 2×490 thermal plant in Dadri, Uttar Pradesh. In July 2018, GE Power India secured two boiler equipment orders from BHEL for supercritical TPPs in Jharkhand and Tamil Nadu worth Rs 4.67 billion. In March 2018, it secured a Rs 3.09 billion contract from NTPC to install a flue gas desulphurisation (FGD) system at the 1,600 MW Phase 1 of NTPC’s super TPP in Telangana. Earlier, in September 2017, GE Power India was awarded a contract by the Shapoorji Pallonji Group for the supply of power generation equipment to its upcoming 220 MW CCPP in Bhola district, Bangladesh, and a contract worth Rs 3.27 billion from Doosan Power Systems India Private for the supply of four units of electrostatic precipitators (ESPs) for supercritical units in Uttar Pradesh.
  • Recently, in June 2018, Siemens Gamesa Renewable Power received an order from ReNew Power Ventures Private Limited for setting up a 150 MW wind farm in Kutch district, Gujarat. In April 2018, it secured an engineering, procurement, construction (EPC) contract for the country’s first large commercial-level wind-solar hybrid project in Karnataka. In November 2017, it also secured an order from Orange Renewable for setting up a 200 MW wind power project in Poovani, Tamil Nadu.
  • In July 2018, ThyssenKrupp secured a contract worth $115 million from DPSI to supply coal handling systems for two TPPs in Uttar Pradesh. The order involves engineering, delivery and installation of the coal handling systems, including associated structural and electrical works.
  • In June 2018, BHEL won two orders aggregating Rs 1.25 billion for setting up solar PV power projects in Gujarat and another two orders aggregating Rs 10 billion for the supply of emission control equipment from Telangana State Power Generation Corporation Limited (TSGENCO). Earlier, in April 2018, it secured a Rs 44 billion order from UPRVUNL to set up a 660 MW supercritical thermal power plant in Kanpur, Uttar Pradesh, and another Rs 1,370 million order for the renovation and modernisation of ESPs for the Ramagundam super thermal power station (STPS). In March 2018, it won an order of Rs 117 billion from NTPC’s JV company Patratu Vidyut Utpadan Nigam Limited to set up the 2,400 MW Patratu supercritical power plant in Ramgarh district, Jharkhand. In the same month, it secured an order for setting up a 75 MW solar PV power plant in Gujarat, its largest solar PV project. In January 2018, it secured a Rs 28 billion contract from Maharashtra State Power Generation Company Limited for setting up the 600 MW Unit 6 of its Bhusawal coal-based power station. In October 2017, BHEL secured a Rs 204 billion EPC order from TSGENCO for the 4,000 MW Yadadri supercritical power project. In December 2017, it secured an order worth Rs 73 billion from TANGEDCO for setting up the 1,320 MW Udangudi super critical power plant in Thoothukudi district, Tamil Nadu.
  • In February 2018, RInfra received an EPC contract worth Rs 36.47 billion from TANGEDCO for the balance of plant (BoP) package and allied civil works for the 1,600 MW Uppur super thermal power plant in Tamil Nadu. Earlier, in January 2018, the company secured an EPC contract worth Rs 5.67 billion from NTPC for carrying out FGD works at the latter’s 1,500 MW Jhajjar coal-based power plant in Haryana. In December 2017, it secured orders worth Rs 5 billion in Bangladesh for setting up infrastructure for Reliance Power Limited’s 750 MW liquefied natural gas (LNG)-based CCPP at Meghnaghat, and building a 500 million standard cubic feet per day floating storage regasification-based LNG terminal on Kutubdia Island. In November 2017, it secured an EPC contract for Units 3 and 4 of 1,000 MW each of the Kudankulam Nuclear Power Project (KNPP) in Tamil Nadu.
  • In February 2018, Suzlon Energy Limited secured an order for a 96.6 MW wind energy project from ReNew Power Ventures. In March 2018, the Suzlon Group won two wind power projects aggregating 500 MW to be set up in Kutch district, Gujarat. Suzlon will execute both projects on a turnkey basis.
  • In February 2018, Gamesa Renewable Energy won two EPC contracts for the construction of 160 MW of solar capacity in Tamil Nadu and Karnataka. As per the contracts, the firm will build two large-scale solar farms of 100 MW and 60 MW capacity.
  • In November 2017, L&T secured an EPC contract worth $250 million for setting up a 400 MW gas-based power plant in Bangladesh. In February 2018, it secured contracts worth Rs 5.9 billion from NLC India Limited to develop two solar parks with an aggregate capacity of 200 MW in Tamil Nadu and Rajasthan. In March 2018, L&T Special Steels and Heavy Forgings Private Limited, a JV of L&T Limited and Nuclear Power Corporation of India Limited (NPCIL), secured an order worth Rs 4.42 billion for the supply of forgings for steam generators from NPCIL. Recently, in September 2018, it won two orders for setting up FGD systems from NTPC at its Vindhyachal Super Thermal Power Plant in Madhya Pradesh and Darlipali Super Thermal Power Project in Odisha.

Key equipment contracts – Transmission and distribution

Several T&D equipment contracts were also awarded in the past year to key industry players including BHEL, L&T, Sterlite Power, Kalpataru Power Transmission Limited (KPTL), KEC International and ABB.

  • In July 2018, Hartek Power Private Limited secured an order from the Haryana State Industrial and Infrastructure Development Corporation for executing 132 kV substation projects at Kundli and Rai in Sonepat district, Haryana. The estimated cost of the project is Rs 91.7 million.
  • In June 2018, KPTL received orders aggregating Rs 3.46 billion for the construction of transmission lines and substations in India and Tajikistan. In addition, Rail Vikas Nigam Limited awarded a Rs 1.85 billion order to KPTL for railway electrification. Earlier, in March 2018, KPTL secured a Rs 6.43 billion turnkey order from TANGEDCO for the construction of a 765 kV D/C transmission line and a Rs 1.95 billion order for railway electrification networks from the Central Organisation for Railway Electrification. It also received transmission line contracts worth Rs 0.64 billion from Powergrid and other state utilities. In January 2018, KPTL secured a Rs 2.82 billion order from APTRANSCO for substations and associated transmission lines. In the same month, it also secured an order for a 400 kV D/C transmission line from Power Grid Company of Bangladesh (PGCB) and for a 132 kV transmission line from the Nepal Electricity Authority totalling about Rs 1 billion.
  • In June 2018, BGR Energy Systems Limited secured two orders aggregating Rs 4.31 billion from NPCIL for Units 3 and 4 of the KNPP. Under the first order worth Rs 3.45 billion, the scope of work includes design and detailed engineering, manufacture, procurement and supply of 400 kV and 230 kV switchyards and BoP electrical areas for the projects. In the same month, the company received another order worth Rs 0.86 billion for loading/unloading, transportation and handling at site, storage, etc. for the project. The project is expected to be completed within 60 months.
  • In May 2018, L&T Construction secured an EPC order worth Rs 24.4 billion for the erection and commissioning of multiple transmission and distribution (T&D) projects under the Sahaj Bijli Har Ghar Yojana (Saubhagya). Further, in January 2018, the power T&D business of L&T secured orders worth Rs 5.68 billion from both domestic and international customers. In the domestic market, the company secured an EPC order from Sterlite Power Grid Ventures Limited for 765 kV, 400 kV and 220 kV transmission lines associated with the Goa-Tamnar transmission project. Further, it secured an order from Chamundeshwari Electricity Supply Corporation Limited for system strengthening works in several subdivisions of the Mysuru area. The company also secured an order from the Egyptian Electricity Transmission Company for the turnkey construction of the 500/220 kV Sokhna GIS substation in Egypt. In September 2017, the power T&D business of L&T in collaboration with consortium partners secured an order from the Electricity Generating Authority of Thailand.
  • In May 2018, Sterlite Power secured a $47 million order from the South Korea-based GS Group for the supply of high-performance conductor such as ACCC (aluminium conductor composite core) for a new 169 km 400 kV transmission line project being developed by PGCB. This marked the largest global order for ACCC in the region.
  • In April 2018, Bajaj Electricals Limited secured orders aggregating Rs 23.89 billion from Purvanchal Vidyut Vitaran Nigam Limited for rural electrification projects in Uttar Pradesh. The orders were awarded to the EPC arm of the company under Saubhagya.
  • In February 2018, the Avantha Group Company, CG Power and Industrial Solutions Limited (CG) received an order worth Rs 1.07 billion from EESL for low voltage motors. In the tendering process, CG received more than 50 per cent of the tender quantity as the largest supplier.
  • In November 2017, BHEL won another order worth Rs 3.5 billion from Powergrid Medinipur-Jeerat Transmission Limited for setting up two 765 kV substations in West Bengal. The scope of work includes the construction of two greenfield 3,000 MVA, 765/400 kV substations at Medinipur and Jeerat.
  • In October 2017, KEC International Limited secured orders totalling Rs 19.31 billion across India, the Middle East, Africa, SAARC, West Asia and the Americas. In India, the company secured orders worth Rs 3.92 billion for the construction of 400 kV transmission lines and substations for Powergrid and Tamil Nadu Transmission Corporation Limited. In addition, the company’s solar business received orders worth Rs 90 million for the construction of a 6 MW ground-mounted project in northern India.

PPA developments

A major highlight during the year was the bidding undertaken by PTC India under the pilot scheme for power procurement aimed at alleviating the stress in the sector due to lack of demand from discoms.

  • In September 2018, PTC finalised bids for 1,900 MW of capacity at a tariff of Rs 4.20 per unit under the pilot scheme launched by the government to procure 2,500 MW of power for three years under the medium-term arrangement from commissioned power plants without PPAs.
  • In September 2018, NTPC Vidyut Vyapar Nigam (NVVN) signed a PPA with BPDB for the supply of 300 MW of power in Bangladesh from the Damodar Valley Corporation (DVC) with effect from September 10, 2018.
  • In July 2018, BYPL signed a PPA with SECI for 100 MW of wind power. Under the agreement, BYPL will procure power at a tariff of Rs 2.52 per unit for a period of 25 years, which will be supplied by wind power developers in Kutch, Gujarat.
  • In September 2018, Sembcorp Gayatri Power Limited (SGPL), a wholly owned subsidiary of Sembcorp Energy India Limited (SEIL), won a competitive tender to supply 250 MW of power to Bangladesh over a period of 15 years. Power supply will commence after the receipt of regulatory approvals.
  • In July 2018, NHPC Limited signed a PPA with Uttar Pradesh Power Corporation Limited for a period of 35 years. Under the agreement, NHPC will supply electricity from its 330 MW Kishanganga HEP, which was fully commissioned in April 2018.
  • In December 2017, JSW Energy Limited signed PPAs aggregating 208 MW with the Haryana Power Purchase Centre. The agreements included a 176 MW PPA for the supply of power from the Karcham Wangtoo HEP, and a 32 MW PPA under the group captive scheme for power supply from the Ratnagiri TPP. Both projects are owned by Himachal Baspa Power Company Limited.
  • In November 2017, Adani Power Limited signed a 25-year PPA with BPDB for the supply of power to Bangladesh. The contract was signed by Adani Power (Jharkhand) Limited for a net capacity of 1,496 MW to be supplied from the upcoming 1,600 MW coal-based plant in Godda, Jharkhand.

Fuel-related developments

While the supply of coal under the Scheme for Harnessing and Allocating Koyala (Coal) Transparently in India (SHAKTI) scheme was a major highlight, the captive coal block segment also witnessed some key developments on account of Essar Power and Reliance Power.

  • In March 2018, Adani Enterprises Limited (AEL) signed a coal mining agreement with NLC India Limited for the development and operation of its Talabira II and III coal blocks in Odisha. The project is expected to generate revenue of Rs 122 billion. The Talabira II and III coal blocks are located in the IB valley coalfields in Sambalpur and Jharsuguda and have a total mining capacity of 20 million tonnes per annum (mtpa).
  • In March 2018, Reliance Power Limited was granted approval by the central government to produce 18 mtpa of coal from its Moher and Moher-Amlohri captive coal blocks in 2017-18. The company was given permission to produce 1 mtpa in addition to the cap of 17 mtpa for the financial year to run its 3,960 MW Sasan UMPP in Madhya Pradesh.
  • In February 2018, NTPC Limited invited bids for procuring 1,000 tonnes of agro residue-based fuel for its 1,820 MW Dadri coal-based power plant in Uttar Pradesh. The tender sought supply for two years and the price of agro residue-based pellets was capped at Rs 5,500 per tonne while that for briquettes of torrefied agro residue was at Rs 6,600 per tonne.
  • In February 2018, Essar Power Limited decided to surrender the Tokisud north coal block in Jharkhand owing to unexpected changes in tariff and delays in approval. Essar had already invested Rs 4.9 billion in the coal block and reportedly, an additional investment of Rs 6 billion was required.
  • In December 2017, Coal India Limited awarded coal contracts to the 10 power plants that had won supply contracts in the first round of the SHAKTI auction held in September 2017. In the first round of the auction, coal linkages for 27.18 million tonnes were booked. The beneficiaries included Adani Power, GMR Energy, KSK Energy and GVK Power.

Clearances received/accorded

  • In December 2017, the MoEFCC’s expert appraisal committee recommended grant of environmental clearance to NHPC Limited’s 800 MW Bursar HEP in Jammu & Kashmir. The Rs 245.89 billion project is proposed to be constructed on the Marusudar river in Kishtwar district.

Electric vehicle and charging infrastructure developments

In the e-mobility space, key highlights were Tata Power and JSW Energy announcing their foray into the EV segment, and EESL awarding a mega contract for the supply of EVs.

  • In September 2018, ABB unveiled its Terra HP fast-charging system at the MOVE Global Mobility Summit, in Delhi. The system can power batteries of a car in flat 8 minutes to run up to 200 km. Earlier, in February 2018, ABB India Limited installed its first public EV charging station at the NITI Aayog office in Delhi. The charging station can fully charge an EV in 30 minutes.
  • In June 2018, Tata Power Company partnered with Tata Motors Limited to set up EV charging stations in Maharashtra. As part of the initiative, EV charging stations have been installed at various locations.
  • In May 2018, Powergrid, in collaboration with L&T Metro Rail (Hyderabad) Limited, announced its plan to set up EV charging facilities at metro stations. Powergrid will initially develop the charging facilities at the Miyapur and Dr B.R. Ambedkar Balanagar metro stations and will eventually cover the entire metro corridor. The charging stations will be remotely operated and monitored by Powergrid.
  • In May 2018, NTPC installed an EV charging station at the Talcher STPS in Odisha. The charging station will power the EVs owned by the company and its employees. The company was initially seeking a pan-Indian licence to construct and set up EV charging stations across the country.
  • In March 2018, JSW Energy marked its entry in the EV, energy storage systems and charging infrastructure segments upon acquiring 100 per cent stake in JSW Electric Vehicles Private Limited at a face value of Rs 100,000. Also, it entered into an MoU with the Maharashtra government to set up EV manufacturing facilities and energy storage systems in the state.
  • In October 2017, EESL procured 500 EVs, of which 350 units were delivered by Tata Motors and 150 units by Mahindra. In the second phase, EESL was expected to order 10,000 EVs.  However, it decided to scrap the tender as the final deadline of May 2018 for the procurement of cars was not met. A new tender will be floated once EESL gets the charger and battery specifications from the Department of Science and Technology.

Mergers and acquisitions

The sector witnessed several merger and acquisition (M&A) deals, with key acquisitions being made by ReNew Power, ATL, Schneider Electric, ABB and Hinduja Power Corporation, amongst others.

  • In September 2018, European renewable energy generator Statkraft acquired the 100 MW Tidong hydropower project in Himachal Pradesh with 100 per cent stake acquisition from NSL Tidong Power Generation Private Limited. The project is approximately 60 per cent complete and the remaining construction will resume after the closing of the transaction. It is expected to be completed in two years, with a possibility of increasing the installed capacity beyond 100 MW.
  • In September 2018, Canadian pension fund Caisse de depot et placement du Québec agreed to acquire CLP India for $368 million, which is the largest fundraising through private investment in the Indian renewables sector, and will value CLP India at $920 million. The CLP Group will retain a 60 per cent stake in the Indian unit. The deal with CLP is CPDQ’s third transaction in the Indian energy sector.
  • In May 2018, Hinduja Power Corporation acquired Mumbai-based Kiran Energy Solar Power in an all-cash deal. The enterprise value of the deal was estimated at Rs 9 billion-Rs 9.5 billion. The deal was facilitated by the Yes Securities Sustainable Investment Banking Team, the sole adviser to the transaction, and led to the acquisition of 85 MW of operational portfolio by Hinduja Power. With this transaction, the three private equity (PE) players who collectively owned a major stake of 80 per cent in Kiran Energy will exit the company. These are Argonaut Ventures, New Silk Route and Bessemer Venture Partners India.
  • In May 2018, L&T signed a definitive agreement with Schneider Electric for the sale of L&T’s electrical and automation business for an all-cash consideration of Rs 140 billion. Schneider Electric formed a consortium with Singapore’s state investment firm Temasek Holdings for the proposed deal. Both the parties of the consortium decided to infuse fresh investment in the subsidiary. After the completion of the deal, Schneider Electric will hold 65 per cent stake in the company while the remaining will be held by Temasek.
  • In April 2018, ReNew Power Ventures Private Limited, acquired Ostro Energy Private Limited from PE firm Actis Capital, for an undisclosed amount. The company’s existing investor, the Canada Pension Plan Investment Board, made an additional investment of $247 million in ReNew Power to support the acquisition, increasing the combined investment of ReNew Power to $391 million. Earlier, in November 2017, ReNew Power acquired the wind power assets of the KC Thapar Group for Rs 10 billion.
  • In March 2018, EESL’s subsidiary EESL Energy Pro Assets Limited acquired UK-based power generation solutions provider EdinaPower Services at $76 million. The acquisition has allowed EESL to expand its footprint in the UK’s $8.4 billion market for energy efficiency products and services. It will also help the company improve its offering in the energy service contract model for combined heat and power technology.
  • In December 2017, ATL signed a definitive binding agreement with RInfra for 100 per cent acquisition of its electricity generation, transmission and distribution businesses in Mumbai, at a total deal value of Rs 132.51 billion. The total consideration value is estimated at Rs 188 billion. The deal was approved by the Competition Commission of India in February 2018. Earlier, in November 2017, ATL acquired the operational transmission assets of the Western Region System Strengthening Scheme of RInfra for Rs 100 billion. As part of the deal, ATL also acquired 100 per cent stakes in Western Region Transmission Maharashtra Limited and Western Region Transmission Gujarat Limited, which have an aggregate transmission network of 3,063 ckt. km.
  • In October 2017, ABB acquired GE’s industrial solutions business for $2.6 billion, putting on hold its $3 billion share buyback programme. ABB is likely to realise cost synergies amounting to $200 million annually, post five years of the completion of the deal.
  • In September 2018, Tata Power and India Power Corporation Limited placed bids to acquire Odisha’s discom, Central Electricity Supply Utility (CESU), which is being privatised after 17 years. This is the first discom privatisation attempt after licences for the Delhi Vidyut Board were handed over to private players in 2002. CESU has a debt burden of about Rs 20 billion while its receivables are at around Rs 17 billion. Companies placing bids will have the option to float joint ventures with the Odisha government or acquire the licence completely. The successful bidder will manage, invest and operate the company for 25 years.

Restructuring moves

  • In April 2018, NTPC decided to exit its JV with BHEL. The NTPC-BHEL Power Projects Private Limited was set up in December 2007 as a 50:50 JV for manufacturing power equipment and the manufacturing facility commenced operations in Andhra Pradesh in 2016. Recently, in May 2018, the Bihar government signed an MoU with NTPC Limited for the transfer of three power projects. Under the agreement, NTPC will acquire complete stake in two JVs, Nabinagar Power Generating Company Limited (NPGC) and Kanti Bijlee Utpadan Nigam Limited (KBUNL), as well as buy the 720 MW Barauni TPS. NPGC is a 50:50 JV of NTPC and Bihar State Power Generation Company Limited (BSPGCL), while KBUNL is a subsidiary of NTPC in JV with BSPGCL, in which NTPC has an equity holding of 72.64 per cent.
  • In May 2018, Reliance Power Limited sold its 3,960 MW Tilaiya ultra mega power project (UMPP) at Rs 1.12 billion to state-run Jharkhand Urja Vikas Nigam Limited. The company has transferred its entire shareholding to Jharkhand Integrated Power Limited, a special purpose vehicle created for the development of the Tilaiya UMPP.
  • In October 2017, AEL announced the demerger of its renewable energy business into an associate company, Adani Green Energy Limited (AGEL), in an attempt to simplify its overall business structure. AGEL will be listed on the exchanges and will issue 761 new equity shares for every 1,000 equity shares of AEL.
  • In October 2017, DVC shelved its plan to transfer the 1,200 MW Raghunathpur coal-based power plant in Purulia, West Bengal to NLC India Limited owing to lack of approval from the state government.

 

 

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