India Energy Summit, New Delhi

India Energy Summit 2007, New Delhi, 5th – 6th October 2007

Important Observations:

ICICI Project Finance:

1. Equity Kicker: Allowing 20% capacity of developed project for trading in hands of Developer will make Power Project Investment by private parties in PPP mode more lucrative.
2. Major decision variable in Independent Power Project appraisals:
A. Access to fuel
B. Access to market
C. Implementation
D. Project Management

TERI, Mr. Ramanathan

Wind Power Generation:

A. Intermittent generation
B. At least 300KM away from nearest load center
C. No balancing generation

Ravi capoor, IAS

Japan’s Energy requirement remained constant for last 30-40 years (achieved with energy efficiency)?

PGCIL, SK Soonee, ED

Availability based tariff: Datum fixed, Imbalance, fixed cost, variable cost
Unscheduled Interchange: Approx business of 6800 crore in year 2006-2007.

PTC, CMD, Mr. TNT

CMD PTC: 25% stake in India’s first Power exchange but doubtful of feasibility of exchange in India:

A. Trader can not resale power to another trader
B. High Margin money @ 100%
C. MPP requires balance sheet support
D. Absence of strong power transmission
E. Intra State Sell: Exchanges should be regulated by CERC and not by State (SERC)
F. Captives: needs to be connected to Grid. Cap of 4% cost over generation cost against risk of open access

IREDA, CMD Mr. Debasish Majumdar

(Various hindrances to Renewable Energy development in India)

A. ROE of 14% not sufficient for private participation, Risk involved are higher
B. Land: Hydro and Wind projects land acquisition takes long time: needs help from state
C. Insufficient Contractors availability specifically for Hydro projects
D. Regulatory benefits: Depreciation linked with investment cost, required to move towards Production related Tax Credit which will help in increasing PLF
E. RPO obligation: Maharashtra has taken lead in this direction, should spread to other states also.
F. 25MW Wind power project shall be eligible for SOPs available for Mega Projects
G. Access to low cost fund


Secretary, Ministry of Power, Mr. Anil Razdan

A. Incentives shall be linked to Generation
B. Micro and Mini Hydro Project shall be developed in Himalayan states
C. LED’ through solar energy
D. Bio fuels for Localized Load centers
E. Cluster of industries around the Power plants to capture waste heat through (cooling tower)è waste heat can be utilized by near by small scale industries like textile industry etc.

Renewable Energy Ministry, Mr. Vilas Muttmewar
(Developments)
A. Target by 2031-2032 è 54,000 MW for renewable energy, 40,000 MW by wind energy, 6500 by small hydro, 7500 MW by Bio Fuel.
B. National policy on bio-fuel under preparation for accelerated growth.
C. SEZ for manufacturing of machinery for Renewable energy (wind power etc)