Capacity size requirement of India’s UMPPs may be cut
The Central Electrical Authority (CEA) of India wants the federal government to reduce the size of its ultra mega power projects (UMPPs) from 4000 MW, which currently qualifies projects for this special status, to 2000 MW.
The rationale being the smaller size will make the projects easier to fund, says the CEA. Projects with a capacity of 4000 MW can require an investment of as much as Rs20 000 crore ($4.3bn).
The CEA has proposed reducing the UMPP size to 3000 MW or even 2000 MW, and would be applicable to all future UMPPs.
The UMPPs are critical to the Government of India’s efforts to raise the country’s power generation capacity to meet the needs of its rapidly expanding economy. The government has planned a total of nine UMPPs; four of which have already been awarded.
The UMPPs differ from regular projects because they involve a competitive tariff-based bidding process in which a special purpose vehicle (SPV) is created to reduce risk perceptions and increase investor confidence. The SPV takes care of regulatory requirements.
Solar thermal deal reached in China
US solar thermal firm eSolar and Penglai Electric, a Chinese OEM, have announced an agreement that will see a minimum of 2 GW of solar thermal power plants being built in China over the next ten years.
The deal represents China’s largest concentrating solar power (CSP) project, with groundbreaking of the first 92 MW taking place this year.
Penglai Electric plans to develop 2 GW of power plants by 2021 using eSolar’s proven solar thermal technology. The solar thermal power plants will be co-located with biomass electricity generation facilities.
China is currently the market leader in the photovoltaic manufacturing industry. and this deal represents its first major move into CSP.
China Huadian to build 338 MW hydropower plant in Cambodia
China Huadian Corporation, which is one of China’s largest electricity producers, has announced plans to build a $558m hydropower plant in Cambodia in an effort to expand its overseas hydropower operations.
The hydropower plant will be the largest in Cambodia and will be located 180 km west of the capital Phnom Penh, reported Bloomberg.
Other Chinese companies such as Sinohydro Corporation are offering to build or finance hydroelectric projects in developing nations in exchange for access to resources and to benefit from demand for non-fossil energy.
In 2007, Cambodia announced it was seeking $3bn of investments to build power plants in the next decade to meet rising demand.
Financing finalized for Thai 110 MW cogeneration project
International Power (IP) has signed a power purchase agreement (PPA), an engineering procurement and construction (EPC) agreement, and has successfully completed the financing for Thai National Power 2 (TNP2), a 110 MW gas fired cogeneration project in Thailand.
The TNP2 project will be located on a site adjacent to IP’s existing 143 MW TNP1 gas fired power plant. The majority of the output from the new plant (90 MW) will be sold to the Energy Generating Authority of Thailand under a 25-year PPA, with the balance of up to 20 MW sold to industrial users.
The new plant, which will be operational in 2012, will be owned and operated as a subsidiary of IP’s existing TNP1 plant.
The TNP2 project will be constructed by IHI/Jurong under a fixed price, turnkey EPC contract using GE LM6000PF gas turbines. Natural gas will be supplied by the Petroleum Authority of Thailand under a 25-year supply agreement.
Funds secured for Punjab coal plant
GVK Power and Infrastructure of India, has successfully arranged funding for its 540 MW coal fired power plant in the state of Punjab.
The Hyderabad-based company has reportedly raised Rs2400 crore ($513m) in debt to part finance the Rs3200 crore project called Goindwal Sahib. The GVK group is also providing Rs800 crore as its equity contribution.
IDBI, lead bank of the 13-member consortium, is understood to be contributing a Rs450 crore term loan for the project, which is expected to be completed in 36 months.
The Goindwal Sahib project is GVK’s first coal plant, and the first private power plant in Punjab.
China reaches nuclear milestone
The Shaw Group of the USA and Westinghouse Electric Company have announced the successful completion of the lifting and setting of the containment vessel bottom head of the first unit of the Sanmen AP1000 nuclear power plant in the Chinese province of Zheijang.
In conjuction with China’s Sate Nuclear Power Technology Corporation, Sanmen Nuclear Power Company and China Nuclear Industry Fifth Construction Corporation, Shaw Group is providing engineering, commissioning and project management services for two Westinghouse AP1000 nuclear units.
Bangladesh: Shanghai Electric Company of China has provided the lowest bid for the 150 MW Khulna peaking power plant, while Spanish company Cobra made the lowest offer for the 150 MW Sirajganj power project.
Cambodia: Leader Universal Holdings has entered into a 25-year build-operate-transfer agreement with Cambodian Transmission Limited to develop a power transmission system in Kampong Cham. The Malaysian firm will work with its Cambodian partner to develop the $107m project for Eléctricité du Cambodge.
Japan: Toshiba has won a contract to test a smart grid system from Okinawa Electric Power. The study will investigate the impact of introducing new energy sources onto the existing network on Miyako Island.
Laos: Vietnam’s Hoang Anh Gia Lai Joint Stock Company is to build the $120m Nam Cong 2 hydroelectric plant in Laos following the recent signing of a memorandum of understanding with the Laos Ministry of Planning and Investment.
Malaysia: According to Sabah Electricity, the environmental impact assessment report on the controversial 300 MW Sabah coal fired power plant is expected to be published next month.
Pakistan: The federal minister for Water and Power has announced that work on the Diamer-Bhasha dam, which will generate 4500 MW of power, would begin this year and that the Asian Development Bank has given assurance of financing the project.
South Korea: Hyundai Heavy Industries Company plans to build a wind farm that can produce up to 200 MW. The Korean firm will work on the project with state-run Korea Southern Power Company.
Thailand: Financing for a 6 MW solar photovoltaic plant, which is to be located in Korat province in the northeast of the country, has been completed.
Vietnam: Work is expected to begin soon on the Kien Luong Thermal Power Plant No.1. This plant forms part of the Kien Luong Thermal Power Centre, which represents the largest thermal power project awarded to a private company.