Energy & Power

WORLD WATCH

ABB to Clinch Rs. 2,000 Cr. Power Contracts

Bangalore-based ABB Ltd., power equipment and engineering company, anticipates to clinch new orders worth Rs. 2,000 crores, in case the company is successful in winning contracts from the developers of ultra mega power projects - UMPPs. Besides, the company's strategy is also to make India a hub to meet the demand from Southeast Asian countries.

The Regional Chief Financial Officer, South Asia Region, K. Rajagopal, said that the company is in discussions with Tata Power Ltd. and Reliance Power Ltd. to supply balance of electrical equipment for the three UMPPs of 4,000MW each to be developed by these utilities.

ABB's scope of the contract comprises supply of capacitors, transformers, switchgear, control systems and disconnecters and each of these orders will be valued between Rs. 200 crores and Rs. 400 crores.

Tata Power is developing the Mundra project in Gujarat, while Reliance is developing two such projects at Sasan in Madhya Pradesh and Krishnapattnam in Andhra Pradesh.

ABB has 6,000 employees in India and plans to increase to 7,000 by the end of 2008. It clocked net profit of Rs. 492 crores on total revenue of Rs. 6,001crores for the fiscal year ended December 31, 2007.

Long Term National Energy Efficiency Program Planned in Pakistan

Planning Commission of Pakistan is preparing a national strategy to develop and implement a "Comprehensive energy efficiency program", with the financial assistance of Asian Development Bank and National Assessment of Energy Efficiency Market and Economy will be completed up to July 2008.

According to officials, short-term policy and regulatory improvement recommendations and targeted public relations programmes will be developed by August 2008 by international consultants.

Strategy and action plans for initiating a long-term national energy efficiency program will be developed by September 2008. A roadmap for implementing the national energy efficiency program with corresponding investment plans will also be prepared.
Planning Commission officials mentioned that new project will design a suitable program proposal that supports government efforts to establish an enabling policy and business environment for energy efficiency, and to provide immediate financing of priority projects.

Key activities will include (i) an in-depth assessment of the energy efficiency market and the economy; (ii) an awareness-building program for energy efficiency through short-term policy and regulatory improvement recommendations, as well as targeted public relations programs; (iii) strategy and action guidelines for initiating a sustainable long-term national energy efficiency program; (iv) a roadmap for implementing the national energy efficiency program with corresponding investment plans; and (v) design of bankable investment projects.

Nepali Private Sector to Build 100 MW Project

Nepal's private sector is to build the 100 MW Kaligandaki Gorge Hydropower Project, the largest hydropower initiative undertaken by Nepalese promoters to date.

The project, which will supply power to the national grid, is to be completed within four years, or before Nepal Electricity Authority (NEA) completes the 309 MW Upper Tamakoshi, said Gyanendra Lal Pradhan, Chairman of Khudi Hydropower Ltd.

"Nepali business houses and individual investors have already expressed their commitment to investing over Rs 2 billion in the project," Pradhan told a function organized in Kathmandu to announce the project. "Equity for the project will be financed exclusively by local investors," he added. The project is estimated to cost Rs 10 billion.

Canadian, Norwegian and Indian investors have shown keen interest in the run-of-river project located in Mustang and Myagdi districts of Dhaulagiri Zone. "But our intention is to use as much national capital as possible and to acquire only locally unavailable resources from abroad," Pradhan said.

India to Help Sri Lanka Build Power Plant

Ending the nearly 14-month stalemate, India and Sri Lanka recently agreed on the exact location in Trincomalee in the east for setting up a 500-MW coal-based thermal plant and signed an understanding for commissioning the project by 2012.

The agreement, with revised ‘milestones’ for completion of the project, was signed here by representatives of National Thermal Power Corporation (NTPC) and the Ceylon Electricity Board (CEB) in the presence of Sri Lanka Minister for Power John Seneviratne and visiting Indian Minister of State for Commerce Jairam Ramesh.

Indian High Commissioner to Sri Lanka Alok Prasad, who was present on the occasion told journalists later that the project would be located at Veloore in north of Trincomalee.

The project, involving an investment of $500 million, would be implemented through a 50:50 joint venture company to be formed by NTPC and the CEB, and would be funded with a debt equity ratio of 70:30.

SAFE Commends Rice Energy Testimony

Securing America's Future Energy (SAFE) applauded US Secretary of State Condoleezza Rice's testimony before the US Senate Foreign Relations Committee recently.

Rice, in response to questions from Senator Richard Lugar, confirmed that the US State Department intends to appoint a high-level special envoy tasked to the issue of energy security, and added that "the politics of energy is warping diplomacy in certain parts of the world."

"Secretary Rice's testimony shows a genuine appreciation of the energy security issue," Robbie Diamond, SAFE's Founder and President, said. "The creation of a high-level position to deal specifically with these challenges sends a message to the world that energy security will now be even more of a core issue at the US State Department, as it should be.

Now we hope that our leaders follow this important first step with an ongoing commitment to confront America's energy security challenge.

"Just this week, Venezuelan President Hugo Chavez announced the suspension of crude oil sales to Exxon Mobil," Diamond added. "There is little doubt that oil is used as diplomacy by other means. Secretary Rice clearly recognizes the challenges and is taking important first steps to face them."

According to Rice, the appointee would focus on the use of oil and natural gas for geopolitical purposes, with a particular focus on central
Asia and the Caspian region. She emphasized the importance of what she called "US energy vulnerability," saying that "It is a really important part of diplomacy."