Almost 14 hours of power cut a day for the last two months is forcing industries, small and big, to go in for generators. A generator supplier here says that the company used to supply about five generator sets a month. Now, it is 15 to 20 a month. The orders received are higher. Nearly four months ago, the company used to book orders for one or two a week. Now, it is much higher. The demand is mostly for generators of 10 KVA to 100 KVA capacity. While the 10 KVA or 15 KVA generators go for domestic use, the higher capacity ones are for industries. Several small and medium-scale units seek reduction in initial cost. The micro units make enquiries. Use of generator sets is not viable for applications such as welding. Apart from the demand for new generators, the second-hand market is also at its peak, the supplier said. Higher use of generators has pushed up the demand for diesel too. An official of an oil marketing company here told The Hindu that there is 30 per cent to 40 per cent increase during the last six months in the company’s diesel despatch from its terminal here as against the average monthly increase of 10 per cent in off-take earlier, which was mainly for the automobile sector. The company used to despatch 1,500 kilo litres of diesel a day earlier. On an average, it was 1,900 kl a day now. Some textile mills that purchased directly from the company used to take one or two loads of diesel a month earlier. Now, it was six to eight loads (normally a load is 12,000 litres). Some even ask for a load every day. J. James, president of Tamil Nadu Association of Cottage and Micro Enterprises, said that the job working units were in such a situation that they would not have orders if they did not have generator sets. The energy cost worked out to Rs.20 a unit with the use of generator. Though this is not viable, “we cannot afford to lose orders or the workers,” he said. The units had to give work to the employees at least for eight hours a day. So, most of them preferred to use power from the grid for four hours and generator for another four hours a day. Those who cannot afford to buy generator sets independently are looking at getting into groups of four or five and investing for a common generator (if the units are located on the same premises), he said. http://www.thehindu.com/news/cities/Coimbatore/power-cuts-lead-to-surge-in-generator-sales/article4122637.ece
Saturday, November 24, 2012
Power cuts lead to surge in generator sales
Almost 14 hours of power cut a day for the last two months is forcing industries, small and big, to go in for generators. A generator supplier here says that the company used to supply about five generator sets a month. Now, it is 15 to 20 a month. The orders received are higher. Nearly four months ago, the company used to book orders for one or two a week. Now, it is much higher. The demand is mostly for generators of 10 KVA to 100 KVA capacity. While the 10 KVA or 15 KVA generators go for domestic use, the higher capacity ones are for industries. Several small and medium-scale units seek reduction in initial cost. The micro units make enquiries. Use of generator sets is not viable for applications such as welding. Apart from the demand for new generators, the second-hand market is also at its peak, the supplier said. Higher use of generators has pushed up the demand for diesel too. An official of an oil marketing company here told The Hindu that there is 30 per cent to 40 per cent increase during the last six months in the company’s diesel despatch from its terminal here as against the average monthly increase of 10 per cent in off-take earlier, which was mainly for the automobile sector. The company used to despatch 1,500 kilo litres of diesel a day earlier. On an average, it was 1,900 kl a day now. Some textile mills that purchased directly from the company used to take one or two loads of diesel a month earlier. Now, it was six to eight loads (normally a load is 12,000 litres). Some even ask for a load every day. J. James, president of Tamil Nadu Association of Cottage and Micro Enterprises, said that the job working units were in such a situation that they would not have orders if they did not have generator sets. The energy cost worked out to Rs.20 a unit with the use of generator. Though this is not viable, “we cannot afford to lose orders or the workers,” he said. The units had to give work to the employees at least for eight hours a day. So, most of them preferred to use power from the grid for four hours and generator for another four hours a day. Those who cannot afford to buy generator sets independently are looking at getting into groups of four or five and investing for a common generator (if the units are located on the same premises), he said. http://www.thehindu.com/news/cities/Coimbatore/power-cuts-lead-to-surge-in-generator-sales/article4122637.ece
Power generation hit by technical snags
HYDERABAD: Repeated breakdowns of thermal power plants due to technical
snags are skewing the power supply position across the state.
As much as 1100 MW of thermal power generation has been lost due to these break downs on Wednesday after five thermal plants reported technical snags. According to APGenco sources, the snags are occurring because the annual shutdown and capital maintenance has not happened as yet.
The delay in carrying out the annual shutdown in thermal power plants is because of soaring electricity demand and lower output from hydropower plants, hit by weak rainfall during the monsoon season. It is this that is triggering breakdowns in the coal-fired generation units, they added.
At present, Vijayawada thermal station unit 1 and 6, Kothagudem thermal station unit 5 and 6 and Kakatiya thermal plant near Warangal have shut down causing a shortage of 1100 MW every day. It would take at least one week for all the units to resume functioning. In particular, the 500 MW Kakatiya thermal plant near Warangal and 6 and 7 units at Vijayawada thermal station are reporting high number of technical snags even after stabilization forcing the state to resort to the Srisailam hydel power during peak hours.
However, the hydel units are not of much help as several hydel power stations too have become inoperational due to precarious water levels in the reservoirs. The deficient monsoon rainfall has hurt hydropower generation in the state significantly, putting more pressure on thermal power generators as demand for electricity rises from consumers for cooling needs and farmers for irrigation using electric pumps.
The state government had asked the state-owned APGenco, country's third biggest power generator, to keep its plants running due to huge shortfall in hydel power generation during rainy season. According to senior officials of AP Genco, the risk of a breakdown is always there if repair and maintenance doesn't take place and every year some units at a project would have to go for capital maintenance like replacement of worn out equipment.
The state has five thermal stations producing 5,092 MW power at 23 units of various generation capacities. APGenco is the third largest power generating and the second highest hydro power generating utility in the country. It has achieved highest total energy generation and highest thermal power generation in 2008-09, first time since its inception. The plant load factor was 86.7% against the all India average of 77.2%.The hydro-power generation was 85% of available capacity.
As much as 1100 MW of thermal power generation has been lost due to these break downs on Wednesday after five thermal plants reported technical snags. According to APGenco sources, the snags are occurring because the annual shutdown and capital maintenance has not happened as yet.
The delay in carrying out the annual shutdown in thermal power plants is because of soaring electricity demand and lower output from hydropower plants, hit by weak rainfall during the monsoon season. It is this that is triggering breakdowns in the coal-fired generation units, they added.
At present, Vijayawada thermal station unit 1 and 6, Kothagudem thermal station unit 5 and 6 and Kakatiya thermal plant near Warangal have shut down causing a shortage of 1100 MW every day. It would take at least one week for all the units to resume functioning. In particular, the 500 MW Kakatiya thermal plant near Warangal and 6 and 7 units at Vijayawada thermal station are reporting high number of technical snags even after stabilization forcing the state to resort to the Srisailam hydel power during peak hours.
However, the hydel units are not of much help as several hydel power stations too have become inoperational due to precarious water levels in the reservoirs. The deficient monsoon rainfall has hurt hydropower generation in the state significantly, putting more pressure on thermal power generators as demand for electricity rises from consumers for cooling needs and farmers for irrigation using electric pumps.
The state government had asked the state-owned APGenco, country's third biggest power generator, to keep its plants running due to huge shortfall in hydel power generation during rainy season. According to senior officials of AP Genco, the risk of a breakdown is always there if repair and maintenance doesn't take place and every year some units at a project would have to go for capital maintenance like replacement of worn out equipment.
The state has five thermal stations producing 5,092 MW power at 23 units of various generation capacities. APGenco is the third largest power generating and the second highest hydro power generating utility in the country. It has achieved highest total energy generation and highest thermal power generation in 2008-09, first time since its inception. The plant load factor was 86.7% against the all India average of 77.2%.The hydro-power generation was 85% of available capacity.
Saturday, October 27, 2012
Power generators feel the heat from renewables
Australia’s big electricity generators are feeling the squeeze of
electricity demand falling in recent years and growing competition from
renewable energy.
This year, some environmentalists criticised the federal government for scrapping the “contracts for closure” negotiations, which would have made the federal government compensate operators to close up to 2000 megawatts of coal-fired power stations. However, more than 2000 megawatts of coal power plant has now been closed or “mothballed” across the country without paying the contracts for closure.
Recently closed coal-fired power plants include Playford in South Australia and Munmorah in NSW. Partial shutdowns have taken place at Yallourn in Victoria and Tarong in Queensland. The Northern coal-fired power plant in South Australia is expected to run in summer only.
The carbon price has played a minor part in the closures. Playford, an old and inefficient power plant, was much less economical in the electricity market with the added carbon price. Other brown coal power stations such as Yallourn and Northern face the same problem.
Falling demand and competition from renewables are a larger consideration. To illustrate this, in the last financial year NSW’s biggest power station at Bayswater ran at 59% capacity — well below optimum economic levels.
Australia’s large-scale Renewable Energy Target (LRET) is commonly understood to be 20% of energy supply by 2020. But in fact the target is set at a fixed amount of 41,000 gigawatt hours. Earlier projections said that this would amount to 20% of electricity needed by 2020. But this amount may actually end up being as much as 25% come 2020.
Despite all sides of federal politics claiming to support the LRET, it has been subjected to review by the Gillard government. The large energy generator/retailer companies Origin and Energy Australia have called for the target to be reduced and changed to a floating percentage instead of a fixed amount of energy.
Renewable industry sources and environmentalists have pointed out that a floating percentage would not give the security and investor confidence required to build enough renewable energy.
The Climate Change Authority’s preliminary report, released on October 26, recommended that the target remain unchanged.
Campaign group 100% Renewable have teamed up with the Australian Conservation Foundation to launch a “People’s RET Review” where members of the public can fill in an online survey of their own views on the LRET. The groups say: “Big power companies and lobby groups who want to slow the development of renewables in Australia are using the RET review process to try and reduce the renewable energy target.”
Coal industry associated analysts ACIL Tasman have released a report claiming the LRET is going to add $53 billion to household electricity bills. But as energy industry commentator Giles Parkinson has pointed out at RenewEconomy: “Even if you accept the ACIL Tasman numbers — which no one outside the coal industry does — it translates into $840 per household over 18 years, or $46 a year, or 90c a week, or 13c a day.”
Other estimates challenge the ACIL Tasman figures. A report commissioned by the Clean Energy Council has found that the LRET will help keep wholesale prices lower, due to what is known as the “merit order effect”, which preferences renewable energy.
Meanwhile, renewable energy has made a large inroad into generation capacity in South Australia, with wind power generating about 28% of that state’s electricity and still growing. The state’s solar power use is also at the highest level in the country.
The merit order effect has lowered South Australian wholesale spot prices. The Essential Services Commission of South Australia ruled that standing contract electricity prices must be reduced by 8.1% from January due to low wholesale electricity prices. This would equate to about $160 a year for household bills.
In response, electricity generator and retailer AGL has said it would suspend operations and halt any further investment in new generating capacity in South Australia (including renewables).
Wind farms continue to be built in the state. The latest project started being built last week, Snowtown II, and will add 270 megawatts of generating capacity. Owner TrustPower (a NZ utility) claims it will be capable of generating more than 10% of South Australia’s electricity.
http://www.greenleft.org.au/node/52654
This year, some environmentalists criticised the federal government for scrapping the “contracts for closure” negotiations, which would have made the federal government compensate operators to close up to 2000 megawatts of coal-fired power stations. However, more than 2000 megawatts of coal power plant has now been closed or “mothballed” across the country without paying the contracts for closure.
Recently closed coal-fired power plants include Playford in South Australia and Munmorah in NSW. Partial shutdowns have taken place at Yallourn in Victoria and Tarong in Queensland. The Northern coal-fired power plant in South Australia is expected to run in summer only.
Playford power station was recently closed. Photo: DecarboniseSA
The carbon price has played a minor part in the closures. Playford, an old and inefficient power plant, was much less economical in the electricity market with the added carbon price. Other brown coal power stations such as Yallourn and Northern face the same problem.
Falling demand and competition from renewables are a larger consideration. To illustrate this, in the last financial year NSW’s biggest power station at Bayswater ran at 59% capacity — well below optimum economic levels.
Australia’s large-scale Renewable Energy Target (LRET) is commonly understood to be 20% of energy supply by 2020. But in fact the target is set at a fixed amount of 41,000 gigawatt hours. Earlier projections said that this would amount to 20% of electricity needed by 2020. But this amount may actually end up being as much as 25% come 2020.
Despite all sides of federal politics claiming to support the LRET, it has been subjected to review by the Gillard government. The large energy generator/retailer companies Origin and Energy Australia have called for the target to be reduced and changed to a floating percentage instead of a fixed amount of energy.
Renewable industry sources and environmentalists have pointed out that a floating percentage would not give the security and investor confidence required to build enough renewable energy.
The Climate Change Authority’s preliminary report, released on October 26, recommended that the target remain unchanged.
Campaign group 100% Renewable have teamed up with the Australian Conservation Foundation to launch a “People’s RET Review” where members of the public can fill in an online survey of their own views on the LRET. The groups say: “Big power companies and lobby groups who want to slow the development of renewables in Australia are using the RET review process to try and reduce the renewable energy target.”
Coal industry associated analysts ACIL Tasman have released a report claiming the LRET is going to add $53 billion to household electricity bills. But as energy industry commentator Giles Parkinson has pointed out at RenewEconomy: “Even if you accept the ACIL Tasman numbers — which no one outside the coal industry does — it translates into $840 per household over 18 years, or $46 a year, or 90c a week, or 13c a day.”
Other estimates challenge the ACIL Tasman figures. A report commissioned by the Clean Energy Council has found that the LRET will help keep wholesale prices lower, due to what is known as the “merit order effect”, which preferences renewable energy.
Meanwhile, renewable energy has made a large inroad into generation capacity in South Australia, with wind power generating about 28% of that state’s electricity and still growing. The state’s solar power use is also at the highest level in the country.
The merit order effect has lowered South Australian wholesale spot prices. The Essential Services Commission of South Australia ruled that standing contract electricity prices must be reduced by 8.1% from January due to low wholesale electricity prices. This would equate to about $160 a year for household bills.
In response, electricity generator and retailer AGL has said it would suspend operations and halt any further investment in new generating capacity in South Australia (including renewables).
Wind farms continue to be built in the state. The latest project started being built last week, Snowtown II, and will add 270 megawatts of generating capacity. Owner TrustPower (a NZ utility) claims it will be capable of generating more than 10% of South Australia’s electricity.
http://www.greenleft.org.au/node/52654
Tuesday, August 14, 2012
China's power generators eye shale gas to drive down cost
BEIJING, Aug. 13 (Xinhua) ? China's power generating companies show
strong desire to tap the nascent shale gas business in order to get
alternative fuel and drive down generating cost, said a report by
Shanghai Securities News on Monday.
All Chinese five state-owned power generating companies and some local power companies have expressed their intention to participate in the upcoming 2nd round auction of the exploration rights of shale gas blocks, said the report.
Firstly open to private investors and nontraditional players, the planned 2nd round of auction is expected to take place in September with more than 70 companies having expressed interest to participate.
Dominated by thermal power, China's electricity generating companies have strong demand for upstream resources, aiming to reduce their dependence on coal miners.
The substantial utilization of shale gas in power generation will help rein in surging coal prices, provide more options on raw materials and improve efficiency via co-business of electricity and gas.
By contrast, few coal miners show willingness to participate in the auction of shale gas blocks except Shenhua Group Corporation and China National Coal Group Corporation.
China held its first round of shale gas auction of four blocks in June, 2010. Six state-owned companies were invited, including PetroChina (PTR.NYSE; 601857.SH; 0857.HK), Sinopec (SNP.NYSE; 600028.SH; 0386.HK), CNOOC (CEO.NYSE; 00883.HK), Shaanxi Yanchang Petroleum Group, China United Coalbed Methane Corporation and Henan Provincial Coalbed Methane Development and Utilization Co., Limited.
With 25.08 trillion cubic meters of onshore shale gas resources excluding Qinghai and Tibet, China aims to produce 6.5 billion cubic meters of shale gas in 2015. (Edited by Liu Yanan, liuyn@xinhua.org )
http://www.power-eng.com/news/2012/08/14/china-s-power-generators-eye-shale-gas-to-drive-down-cost.html
All Chinese five state-owned power generating companies and some local power companies have expressed their intention to participate in the upcoming 2nd round auction of the exploration rights of shale gas blocks, said the report.
Firstly open to private investors and nontraditional players, the planned 2nd round of auction is expected to take place in September with more than 70 companies having expressed interest to participate.
Dominated by thermal power, China's electricity generating companies have strong demand for upstream resources, aiming to reduce their dependence on coal miners.
The substantial utilization of shale gas in power generation will help rein in surging coal prices, provide more options on raw materials and improve efficiency via co-business of electricity and gas.
By contrast, few coal miners show willingness to participate in the auction of shale gas blocks except Shenhua Group Corporation and China National Coal Group Corporation.
China held its first round of shale gas auction of four blocks in June, 2010. Six state-owned companies were invited, including PetroChina (PTR.NYSE; 601857.SH; 0857.HK), Sinopec (SNP.NYSE; 600028.SH; 0386.HK), CNOOC (CEO.NYSE; 00883.HK), Shaanxi Yanchang Petroleum Group, China United Coalbed Methane Corporation and Henan Provincial Coalbed Methane Development and Utilization Co., Limited.
With 25.08 trillion cubic meters of onshore shale gas resources excluding Qinghai and Tibet, China aims to produce 6.5 billion cubic meters of shale gas in 2015. (Edited by Liu Yanan, liuyn@xinhua.org )
http://www.power-eng.com/news/2012/08/14/china-s-power-generators-eye-shale-gas-to-drive-down-cost.html
Saturday, July 14, 2012
COMPETITION AMONG FUELS FOR POWER GENERATION DRIVEN BY CHANGES IN FUEL PRICES
Natural gas power generation matches coal's for first time
It is reported that coal stocks like Alpha Natural, Peabody Energy.
James River Coal, Walter Energy and Arch Coal have been beaten up of
late as Patriot Coal's bankruptcy cast a cloud over the sector. But a
long term trend that reached an historic inflection point recently is
adding to coal's recent stock market woe is for the first time since the
agency was set up decades ago.
According to data from April 2012 that was recently released by the US Energy Information Administration, natural gas fired plants equaled the power output from coal. Monthly coal and natural gas generation both provided about 32% of total generation for the US.
The trend has been encouraged by much lower natural gas prices and more stringent regulations on emissions from coal-fired plants. A chart accompanying the release shows a sharp drop in coal generation starting late last year, just as natural gas took a leap upward.
Analysts at the Energy Information Administration pointed out that the weather played a factor in the trend, since overall power demand was low in April due to a mild spring. At the same time, the price of natural gas to power plants touched a 10 year low.
Since then, natural gas prices have moved up now that a hot summer has kicked in.
The EIA said that "With warmer summer weather and increased electric demand for air conditioning, demand will increase, requiring increased output from both coal and natural gas fired generators."
So while coal will continue to provide power this summer, it may no longer be King Coal for the time being, as energy companies continue to produce ample natural gas in the US and government regulations on air pollution encourage new plants that burn natural gas.
http://www.steelguru.com/raw_material_news/Natural_gas_power_generation_matches_coals_for_first_time/273502.html
According to data from April 2012 that was recently released by the US Energy Information Administration, natural gas fired plants equaled the power output from coal. Monthly coal and natural gas generation both provided about 32% of total generation for the US.
The trend has been encouraged by much lower natural gas prices and more stringent regulations on emissions from coal-fired plants. A chart accompanying the release shows a sharp drop in coal generation starting late last year, just as natural gas took a leap upward.
Analysts at the Energy Information Administration pointed out that the weather played a factor in the trend, since overall power demand was low in April due to a mild spring. At the same time, the price of natural gas to power plants touched a 10 year low.
Since then, natural gas prices have moved up now that a hot summer has kicked in.
The EIA said that "With warmer summer weather and increased electric demand for air conditioning, demand will increase, requiring increased output from both coal and natural gas fired generators."
So while coal will continue to provide power this summer, it may no longer be King Coal for the time being, as energy companies continue to produce ample natural gas in the US and government regulations on air pollution encourage new plants that burn natural gas.
http://www.steelguru.com/raw_material_news/Natural_gas_power_generation_matches_coals_for_first_time/273502.html
Subscribe to:
Posts (Atom)