Electricity Act, 2018 proposal encapsulates changing power market

The draft amendments to the Electricity Act, 2003 is finally out and it aims to keep at pace with the changing market dynamics, increasing renewable capacity and challenge of providing quality power supply. Business Standard explains the major changes introduced in the 2018 avatar of the torch-bearing Act for the sector and its impact. The draft amendments would need comment from the industry and stakeholders before being placed on the floor of the Parliament. Direct Benefit Transfer of Subsidy: Breaking the cycle of subsidy and losses incurred by the discoms, the Act has introduced DBT in electricity as well. The Act says: if the State Government or Central Government desires the grant of any subsidy to any consumer or class of consumers, such subsidy shall be directly transferred to the beneficiary by direct benefit transfer into the bank account of the beneficiary.” The same will apply if subsidy is given through any government scheme as well. Separation of content & carriage: The long-pending demand to separate the infrastructure builder for power distribution to consumers and the licensee to supply has been introduced in the Act. This would entail more than one electricity supplier in an area and consumer will have options to choose their preferred electricity supplier. Allied to it is introduction of time of the day tariff – power rate as per the energy source, season, time and demand.

Macron announces additional 700 mn euros for development of solar energy

French President Emmanuel Macron on Sunday announced an additional investment of 700 million euros for global solar energy generation by 2022 to reduce the use of fossil fuel and help combat climate change.

Speaking at the launch of the first International Solar Alliance (ISA) summit, Macron called for "joint duties" towards a "planet that we are sharing" and took a dig at his US counterpart Donald Trump who pulled out of the 2015 Paris climate deal.

Macron said the summit to revolutionize the use of the clean energy by generating over 1,000 GW of solar power by 2030 was an outcome of the Paris accord even as "some left the floor" but others decided to act and keep acting.

The French President co-chaired the summit with with Prime Minister Narendra Modi at the Rashtrapati Bhavan that was also attended by the heads of 23 nations and 10 ministerial representatives.

Nepal, China sign three pacts to boost energy, economic, technological ties

Nepal and China on Tuesday signed three pacts to further boost their ties in power and energy sectors and undertake a feasibility study to excavate natural gas and petroleum in the Himalayan country, including in the southern Terai plains.

The pacts were signed after visiting Chinese vice premier Wang Yang held discussions with Nepal's deputy prime ministers Bijaya Kumar Gachhadar and Krishna Bahadur Mahara.

The agreements cover three different domains - economic and technological cooperation, China-aid oil and gas resources survey project and framework agreement on promotion of investment and economic cooperation, Nepal's state-run National News Agency reported.

They include a feasibility study for excavating natural gas and petroleum in mountain areas and plains of the Terai region.

The two countries agreed to establish hydropower projects and transmission lines and take steps for economic and technological development in Nepal, which suffers from acute shortage of electricity.

Finance Secretary Shanta Raj Subedi told the agency the pacts would make significant contributions in Nepal's socio- economic transformation.

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Workers' lives be damned as Trump seeks to milk Papua New Guinea gold mines

The Grasberg Mine is a massive scar 14,000 feet atop West Papua’s part of New Guinea’s Central Cordillera. It’s is the world’s biggest, most profitable gold mine and the world’s third biggest copper mine, with estimated reserves of $100 billion.

Some 20,000 people work there, making it the largest employer on the divided island and the largest source of revenue in all of Indonesia. Many of those engaged in the dangerous work of mining come from the 40,000-year-old indigenous community of New Guinea, a people the Indonesian authorities are slowly pushing into non-existence.

In 1962, the Indonesians, with the connivance of the US, grabbed the western half of New Guinea. Since then, the destruction of the environment and the local communities has advanced as Indonesians displace the indigenous population and scramble over valuable resources. Although Indonesia has barred a full accounting, there have been hundreds of thousands of deaths—many in the most brutal and deliberate fashion.

Responsibility for the destruction and slow genocide now rests securely with the Indonesian government. But the US continues to defer to its ally in the same way it does to, say, Saudi Arabia: in short, weak complaints and no action.

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Oil prices plunge as drop in US inventories encourage more production

Oil prices rose to near eight-week highs on Wednesday, as a fall in US inventories bolstered expectations that the long-oversupplied market was moving toward balance.

Brent crude futures rose 40 cents to $50.60 a barrel by 1213 GMT, after rallying more than 3 percent on Tuesday.

U.S. West Texas Intermediate futures climbed 50 cents to $48.39 a barrel.

U.S. crude stockpiles fell sharply last week as refineries boosted output, while gasoline inventories increased and distillate stocks decreased, the industry group the American Petroleum Institute said on Tuesday.

Crude inventories fell 10.2 million barrels in the week ending July 21 to 487 million, more than the expected decrease of 2.6 million barrels. Data from the U.S. Energy Information Administration on Wednesday could provide more support, with forecasts of a drop for a fourth week in a row.

Tuesday's stock draw added to hopes the long-awaited oil market rebalancing was underway. Saudi Arabia said on Monday it would limit oil exports to 6.6 million barrels per day (bpd) in August, down nearly 1 million bpd from a year earlier.
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Lowering China's coal-fired power overcapacity can save water for 27 mn

Urging China to cut down on its "severe" coal power overcapacity, a report on Wednesday said this could save enough water to meet annual needs of 27 million people in water-stressed areas.

The report by Greenpeace East Asia said that despite reduction in coal powered plants since 2014, the Chinese coal-fired capacity in areas of high water stress continues to increase.

However, China's per capita water resources amount to only one-third of the global average. According to the report, by 2020, more than 60 per cent of the coal power industry's water consumption is projected to take place in areas of high water stress.

China is the world's largest coal consumer, Greenpeace said.

The report also recommends that both the coal power overcapacity and water stress problems be resolved by optimising water saving in the 162 provinces.

"The proposed plan could reduce water consumption in the coal power sector by up to 500 million cubic metres in 2020 in high water-stressed areas," the report stated.

Greenpeace stated that if the expansion goes unabated, the coal power capacity in water stressed areas is projected to jump from 437 GW in 2016 to 527 GW in 2020.

It thus urged that China reduce its coal-fired capacity by retiring plants in areas of high water stress and halting the planning and construction of new coal-fired power plants.

"Targeted capacity cuts in regions with high water stress would free up water for human consumption and economically productive uses," said senior global coal campaigner Lauri Myllyvirta.
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Railways' 'Mission 41K' to save energy worth Rs 41,000 cr

Latest News -Union Railway Minister Suresh Prabhu today unveiled 'Mission 41K' to save Rs 41,000 crore on the Indian Railways' expenditure on energy consumption over the next 10 years.

This target will be achieved by taking a slew of measures which include moving 90 per cent of traffic to electric traction over diesel. Presently, this is at 50 per cent of the total rail traffic.

The ministry plans to achieve this target by doubling the current pace of electrification, Railway Board Chairman A K Mittal said in an official statement.

The railways also aim to(Read More)