Reliance Power places $10 Billion equipment order for 32,000 MW
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Reliance Power places $10 Billion equipment order for 32,000 MW

Thursday, 28 October 2010, 17:52 Hrs   |    2 Comments
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New Delhi: In one of the largest such orders of its kind, Reliance Power, a part the Anil Dhirubhai Ambani Group, Thursday said it has awarded a $10-billion contract to a Chinese firm to provide power plants equipment of 32,000 MW capacity.

China's Shanghai Electric Corp (SEC) has been contracted to provide boilers, turbines and generators to Reliance Power's coal-based power plants, including the supply of 42 units of 660 MW each using what is called super critical technology.

"The strategic cooperation between Reliance Power and a leading global supplier like the Shanghai Electric Corp will enable faster project execution of our projects," said J.P. Chalasani, chief executive of Reliance Power.

"Shanghai Electric Corp's after-sales support will ensure higher availability and also assured maintenance support through the operating life of the our Projects," Chalasani added, soon after signing of the accord in the presence of group chairman Anil Ambani.

The financing for the deal is proposed to be provided by commercial banks, export credit agencies and other financial institutions in China, he said.

Among institutions which will provide financing are Bank of China, the China Development Bank (CDB), The Export-Import Bank of China (C-EXIM) and the Industrial and Commercial Bank of China (ICBC).

Shanghai Electric will also provide long-term supply of spares, training of manpower, support for the operation and maintenance, erection, testing and commissioning of the boiler, turbine and generator and after-sales service.

The supply of the boiler, turbine and generator packages has already started and will be completed over the next three years, said a Reliance Power statement.

The Indian company on its own and through subsidiaries has a portfolio of 37,000 MW of power generation capacity, both operational as well as under development.

The company had earlier announced the conclusion of one of the largest fund-raisers in India that had helped the financial closure for two ultra-mega power projects of 4,000 MW each - at Sasan in Madhya Pradesh and Krishnapatnam in Andhra Pradesh.
Source: IANS
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Reader's comments(2)

The Reliance Power plans for a 32000 MW generation will fill the gap to much extent between demand and supply in the power. Private sector has a major role to play in the expansion of power in the country.
Here is an interesting note on Power scenario in the country and the need for expansion,( Powering the People: India’s Capacity Expansion Plans Sonal Patel POWER,Business and Technology for the Global Generation Industry May 1, 2009):
The challenge is formidable. Despite progressive reforms India’s electricity supply already lags 11% behind demand, and peak shortages surge as high as 17%. The quality of the power supply is also very poor, owing to unstable voltages and routine frequency excursions. More than often state governments force the industrial sector to bear the brunt of power shortages to meet demand, crippling productivity and hampering economic development. The prevalent outages which frequently last eight hours at a time — have also been known to cause violent skirmishes in urban areas.

A generation gap. Since 2002, when the government’s 9th plan ended, the gap between energy availability and requirements has widened, and peak demand continues to soar. India will need to add 92,000 MW before 2012 to eliminate these deficits and meet its economic goals. It has only planned to add 78 GW however and even this goal is unlikely to be met. Note that peak met and energy availability represent net consumption (including transmission losses). Sources: Economic Survey 2007 Central Electricity Authority

As well as being rapid and reliable the supply expansion must also be affordable. Pointing to the yawning gap between India’s superpower economic aspirations and realities on the ground is the fact that its energy consumption on a per capita basis (a factor loosely correlated with gross national product) ranks among the lowest in the world. In terms of electricity use, per capita consumption was only 480 kWh in 2005 a quarter of China’s and 1/20th that of developed countries.
At the same time, expansion must not come at a steep cost to the environment. The country already emits 4.6% of the world’s greenhouse gases making it the fourth-largest contributor, after the U.S China and Russia. Though it says it is concerned about climate change, India has pointed out that, considering it has 17% of the world’s population, those emissions on a per-capita basis are relatively low.
Securing its fuel supplies will be another primary consideration. Today more than 50% of India’s power is generated with coal, and 10% is natural gas – fired . But though India has the world’s fourth-largest reserves of coal and has recently made important gas discoveries, the power sector routinely suffers acute shortages of quality coal and gas. Because coal power’s dominance is unlikely to subside as the Planning Commission recognizes, the country must step up coal production or importation and expand supply of the fuel to more than 2 billion tonnes (2.2 U.S. tons)/year based on the quality of domestic coal.
Sharing power. Though it was liberalized almost 20 years ago India’s power sector continues to be dominated by the government. Today state governments produce 52% of the nation’s power followed by the central government (34%) and the private sector (15%). Source: Central Electricity Authority
State governments produce 52% of the nation’s power followed by the central government (34%) and the private sector (15%). The industry’s other major players are also central government owned: The National Thermal Power Corp. (NTPC), for example accounts for 28% of the country’s capacity while the Nuclear Power Corp. of India (NPCIL) owns all 17 existing nuclear power plants. The Ministry of Power also oversees key organizations like the national grid operator Power Grid Corp and the Central Electricity Authority (CEA) which conducts techno-economic assessments. The coal sector is also dominated by public sector institutions as is the electric power technology manufacturing sector. Bharat Heavy Electrical Ltd. (BHEL) a holding company overseen by the Ministry of Heavy Industry manufactured more than 60% of the generation units installed in the 1970s and it will build many of the power plants planned in the coming decades.
Running Renewables
India’s Ministry of New and Renewable Energy perhaps the world’s only ministry dedicated solely to the development of renewable energy evolved from a government agency created in 1982 to steer the nation away from its reliance on oil, following two oil shocks in the 1970s. The ministry pursues a similar mission today, pushing renewables to supplement the country’s coal-heavy portfolio. And it has been largely successful. In 2006 before the ministry had been formally named nonconventional sources of energy like small hydro wind solar and biogas constituted less than 1% of the country’s portfolio. Today 9% (14,224 MW) of India’s power is produced by these sources, and the 11th plan projects that this capacity will more than double
Doubling clean capacity. India currently has 13,880 MW of grid-connected wind small hydro biomass cogeneration waste-to-energy and solar power plus 350 MW of off grid power including captive power plants. The 11th plan seeks to add 15,000 MW of new renewable power including 10.5 GW from wind. Source: Ministry of New and Renewable Power
Wind power particularly has seen stellar growth. During the 10th plan, India saw the installation of 5.4 GW against a target of 2 GW. With 9.8 GW India now has the fifth highest level of installed wind capacity trailing the U.S. Germany Spain and China. Tamil Nadu boasts the most wind power (about 4 GW) followed by Maharashtra Karnataka Rajasthan and Gujarat. But though these states are also expected to receive most of the 10.5 GW of new capacity called for by the 11th plan experts say that India’s wind power potential of 45 GW in 13 states and up to 100 GW with current technology will remain relatively untapped.
Monsoon power. India’s wind-powered capacity has quickly grown to 9.8 GW and it is set to double by 2012 per the 11th plan. Currently 12 wind turbine manufacturers are vying for market share in this sector.The growth may have been fueled by federal tax incentives and tariff structures fashioned by state governments, but it has benefited exponentially from home-grown wind turbine manufacturers.
India’s renewable energy sector is also seeing increased interest in solar power. Though India is located in the equatorial sunbelt and experiences 250 to 300 days a year of sunny weather installed grid-connected and off grid capacity has so far sprouted only a paltry 5 MW its growth stunted mainly by cost concerns. The Ministry of Power is looking to expand solar capacity tenfold by 2012.
According to the U.S. Commercial Service which recently organized a 14 company solar delegation to India this target is achievable with foreign investment and international cooperation. The Indian government is encouraging foreign investment, it said, by offering solar developers who build own and operate projects financial incentives of about 30 cents for each kWh produced.
The opportunities are abundant: India currently has 19 manufacturers of solar photovoltaic (PV) modules and several large investments are in the pipeline. "There is a lack of technical expertise in installation operations troubleshooting and other aspects of clean energy implementation," the service said in a statement to POWER. "There is demand for thin-film solar cell technology, technology for megawatt scale power generation and improvements in crystalline silicon solar cell/module technology. Building integration for PV and solar thermal systems is also an area of opportunity."
India’s grid-connected biomass cogeneration and small hydro generation options are also slated to see significant increases by 2012. Because the government has pledged to connect all rural villages under its rural electrification program by 2012, off-grid projects will also see tremendous growth .”This should translate into a seven-fold market increase for renewable power generation from $3 billion today to more than $21 billion by 2012," the U.S. Commercial Service said.

Dr.A.Jagadeesh Nellore(AP)
Posted by:Dr.A.Jagadeesh - 28 Oct, 2010
indian or global solar energy capabilites are grossly underutilized. India gets 6000 trillion kWh of solar energy each year which is 50 times more than global energy use. If every indian uses heat and light energy falling on only one square meter each directly without converting it in electricity by SPV or CSP route our energy generation capacity can theoritically double in fraction of a second without any govt. or industrial investment. We forgot this free energy source as farmers are given free electricity and we all are given mineral water priced LPG and SKO. Asolar cooker of Rs 1500 can save 30 cylinders of lpg or 6000 kWh at 25 paise per kWh and can save more energy than our current electricity production . We never talk about it though it is a very good option for BPL people and all of us. for example if every indian 4 cylinder of lpg every year and as each lpg cylinder is equal to 200 kWh of electricity than 200x 1.2x4 =960 billion kwh electricity can be saved. This energy is more than our electricity generation. Free infinite green energy is available at our doorstep. Kindly promote it.
alok Replied to: Dr.A.Jagadeesh - 29 Oct, 2010