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Time of India
23-05-2025
- Business
- Time of India
India's power transmission body flags regulatory hurdles in equipment procurement
India's power transmission sector is facing acute supply-side bottlenecks, especially in procuring High Voltage Direct Current (HVDC) equipment critical for carrying renewable energy over long distances, raising concerns over the country's ability to meet its 2030 renewable energy targets. The Electric Power Transmission Association (EPTA) has urged the Power Ministry to provide a level-playing field in procurement policies, highlighting a regulatory mismatch that allows renewable energy (RE) developers to bypass subcontracting restrictions, while transmission companies remain bound by them. The association has called for a temporary exemption from these restrictions until December 2030, to help transmission developers procure key HVDC components without delay. 'This mismatch between generation and transmission is hurting the overall power sector and delaying addition of capacity,' said an official from a leading transmission company, reported PTI. According to the official, while RE projects are built in 12–18 months, transmission lines often take 3–4 years, and HVDC systems even longer. The issue stems from restrictions on suppliers and subcontractors from countries sharing land borders with India, particularly China, which is a major source of HVDC equipment. Although these curbs apply to central ministries, autonomous bodies, and public-private partnership (PPP) projects, they also extend to transmission developers operating under the fully privately funded Build-Own-Operate-Transfer (BOOT) model, leaving them similarly affected. The EPTA noted that renewable developers are exempt from these restrictions, following a 2022 clarification by the Ministry of New and Renewable Energy. It stated that while SECI's procurement qualifies as public procurement, the contracts don't fall under 'works contracts,' thereby allowing unrestricted subcontracting, including from China. Transmission developers, on the other hand, continue to face full restrictions under tariff-based competitive bidding (TBCB). 'Despite TBCB projects not being PPPs, the transmission service providers cannot procure or subcontract from countries sharing land borders with India, thereby severely limiting supplier choices,' said an industry official. This asymmetry, industry players say, has created a systemic gap between RE generation and transmission readiness, particularly in HVDC-dependent regions like Rajasthan and Khavda in Gujarat. At present, only two domestic OEMs offer LCC-based HVDC systems, while global manufacturers in Europe and the US are booked until 2030, amid surging renewable installations in the West. As a result, the constrained market is pushing project costs higher, with tariffs reaching up to 17% above levelised rates, and project timelines extending up to six years. 'HVDC projects are vital for renewable energy development, and must be governed by the same procurement norms as RE projects,' EPTA said in its representation to the Power Ministry. Data from two recently concluded HVDC bids show that it took 19 months just to finalise the tender, with an overall implementation window of 54 months. The Central Electricity Regulatory Commission (CERC) has also acknowledged the issue, noting that HVDC component supply constraints are inflating project costs and justifying higher bids. Calling for urgent policy harmonisation, EPTA Director General G P Upadhyaya said: 'A systemic gap has emerged between generation readiness and transmission infrastructure timelines, particularly for HVDC-dependent RE zones like Rajasthan and Khavda in Gujarat. The timely execution of HVDC systems is a critical path for achieving India's renewable energy targets.' With inputs from PTI
Time of India
23-05-2025
- Business
- Time of India
India's power transmission body flags regulatory hurdles in equipment procurement
India's power transmission sector is facing acute supply-side bottlenecks, especially in procuring High Voltage Direct Current (HVDC) equipment critical for carrying renewable energy over long distances, raising concerns over the country's ability to meet its 2030 renewable energy targets. The Electric Power Transmission Association (EPTA) has urged the Power Ministry to provide a level-playing field in procurement policies, highlighting a regulatory mismatch that allows renewable energy (RE) developers to bypass subcontracting restrictions, while transmission companies remain bound by them. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villas Prices In Dubai Might Be More Affordable Than You Think Villas In Dubai | Search Ads Get Quote Undo The association has called for a temporary exemption from these restrictions until December 2030, to help transmission developers procure key HVDC components without delay. 'This mismatch between generation and transmission is hurting the overall power sector and delaying addition of capacity,' said an official from a leading transmission company, reported PTI. According to the official, while RE projects are built in 12–18 months, transmission lines often take 3–4 years, and HVDC systems even longer. Live Events Also Read: Adani to announce ₹20,000 crore investments in North East The issue stems from restrictions on suppliers and subcontractors from countries sharing land borders with India, particularly China, which is a major source of HVDC equipment. Although these curbs apply to central ministries, autonomous bodies, and public-private partnership (PPP) projects, they also extend to transmission developers operating under the fully privately funded Build-Own-Operate-Transfer (BOOT) model, leaving them similarly affected. The EPTA noted that renewable developers are exempt from these restrictions, following a 2022 clarification by the Ministry of New and Renewable Energy. It stated that while SECI's procurement qualifies as public procurement, the contracts don't fall under 'works contracts,' thereby allowing unrestricted subcontracting, including from China. Transmission developers, on the other hand, continue to face full restrictions under tariff-based competitive bidding (TBCB). 'Despite TBCB projects not being PPPs, the transmission service providers cannot procure or subcontract from countries sharing land borders with India, thereby severely limiting supplier choices,' said an industry official. This asymmetry, industry players say, has created a systemic gap between RE generation and transmission readiness, particularly in HVDC-dependent regions like Rajasthan and Khavda in Gujarat. Also Read: Maharatna PSU Powergrid projects capex of over Rs 3 lakh crore by 2032 At present, only two domestic OEMs offer LCC-based HVDC systems, while global manufacturers in Europe and the US are booked until 2030, amid surging renewable installations in the West. As a result, the constrained market is pushing project costs higher, with tariffs reaching up to 17% above levelised rates, and project timelines extending up to six years. 'HVDC projects are vital for renewable energy development, and must be governed by the same procurement norms as RE projects,' EPTA said in its representation to the Power Ministry. Data from two recently concluded HVDC bids show that it took 19 months just to finalise the tender, with an overall implementation window of 54 months. The Central Electricity Regulatory Commission (CERC) has also acknowledged the issue, noting that HVDC component supply constraints are inflating project costs and justifying higher bids. Calling for urgent policy harmonisation, EPTA Director General G P Upadhyaya said: 'A systemic gap has emerged between generation readiness and transmission infrastructure timelines, particularly for HVDC-dependent RE zones like Rajasthan and Khavda in Gujarat. The timely execution of HVDC systems is a critical path for achieving India's renewable energy targets.' With inputs from PTI
The Spinoff
20-05-2025
- Business
- The Spinoff
Why the electricity balance between the North Island and South Island is shifting
With the cable that links New Zealand's islands together electrically due for replacement, and our electricity needs expected to grow enormously, Shanti Mathias explores the major shift under way in how we generate it. Each day, a service vital to New Zealanders traverses Cook Strait carrying essential supplies. But with the risks of a breakdown, the authorities managing the service are proposing that it gets replaced. That replacement won't come cheap: the manufacturers who could make it are all overseas and a high degree of technical knowledge is needed. The replacement will have to be planned years in advance. I'm talking, of course, about the cable that runs under Cook Strait, carrying electricity between Te Waipounamu and Te Ika a Māui. Known as the HVDC, for High Voltage Direct Current, the cable has been an essential part of New Zealand's electricity infrastructure since the islands were electrically connected in 1965. 'It enables a level of resilience for New Zealand's electricity system,' says James Kilty, the chief executive of Transpower. The state-owned company has just released a proposal for public consultation about how it would renew the cables; the plan will be approved after it's submitted to the Commerce Commission, which regulates Transpower. Part of the renewal of the HVDC, which is estimated to cost $1.38bn, is about capacity increase. There are already three cables journeying under the ocean. Together they carry 1,200 megawatts of electricity. How much electricity is that? When I ask Kilty, there's a long pause. 'I'm not sure how to describe it without saying megawatts again,' he says. 'You can fuel large cities with the amount of electricity these things transfer, put it that way.' Transpower is proposing to add a fourth cable under the strait, more kilometres of copper and insulating plastic filled with tumbling charged electrons. New Zealand has been consuming more electricity over time, as more things in our houses, and industrial processes, are electrified. 'The fourth cable means additional capacity – New Zealand is a global leader in renewable electricity, but we need more power if we want to reach net zero by 2050,' Kilty says. Hydro from the past As the need for an HVDC cable upgrade indicates, New Zealand's electricity needs are growing. But the source of electricity carried through the cable is changing, too, as New Zealand's semi-privatised electricity companies shift how and where they generate. Most people associate New Zealand's electricity sources with hydroelectricity. Fair enough: hydro projects currently provide about 57% of New Zealand's electricity (it fluctuates each year depending on how much water is in the hydro lakes). Historically, New Zealand's largest hydro projects have been built in the South Island. Te Waipounamu has sharp, tall mountains, which catch precipitation as rain and snow. That water then tumbles to the sea via rivers and lakes, the force of thousands of tonnes of water spinning turbines, which make electricity. Essentially, it has more water that can fall from higher levels and generate more electricity. Major sources of electricity are New Zealand's largest power station at Lake Manapouri; the Clyde Dam on the Clutha River; and the Waitaki Hydro Scheme, a series of eight stations along one river in the central South Island. The HVDC link Transpower is proposing to replace runs from the Benmore substation at the bottom of the Waitaki scheme to a substation in the Hutt. The scheme was first conceived in 1904 and construction in the Waitaki Valley began in the 1920s; the last station was constructed in 1985. 'Building hydro power is incredibly capital intensive – most hydro dams were built with state backing from the Ministry of Works,' says Ed Miller, a researcher with the Centre for International Corporate Tax Accountability and Research. If you're going through the MacKenzie District, it's impossible to miss how much land and water is dedicated to making electricity. The glacial blues of lakes Ōhau and Pukaki twine into kilometres of canals, often frequented by anglers after the wild salmon which live there. There's a distinct smell of concrete when Sarah Hutchinson gives The Spinoff a tour of the Ōhau A power station. Hutchinson, an electricity supply manager for the six Waitaki stations run by Meridian (the two others are run by Genesis), offers earplugs and hi-vis overalls and leads us into the vibrating belly of the station, which is mostly underground. It feels awesome, in the old-fashioned sense: an amazement that people have built this, like entering a cathedral. It's a different kind of awe than glimpsing Aoraki outside, although surely some of the water charging through the feed pipes rolled off his shoulders. The power station is loud, even though only one turbine is running – there's not much demand just after Easter – and echoey: a secular cathedral, dedicated to the process of making water energy into something new. The vision and technical expertise to keep this running amazes me. I note down some of the words I don't recognise. 'Thrust bearing', 'drainage gallery', 'buzzbar'. A roar of water that sends a line of deep bass through all of Ōhau A. The sound is just a byproduct: the transformation of water and gravity into sparkling electricity happens in the turbines. The turbines spin on a long rotor: their flow is controlled by gates, kind of like window blinds, which are eased open and closed by high-pressure oil in hydraulic systems, which has to be strong enough to withstand the pressure of the water. Ōhau A also shows its age. Construction took place in the 1970s; it's now more than 40 years old. 'Hydropower is reasonably old technology – there's been a lot of changes in how efficient a turbine can be,' says Chris Ewers, the GM of wholesale power at Meridian. 'We're always trying to identify technical limitations or control systems upgrades that will allow us to do more with the assets we have.' For instance, changes to turbines at the Benmore station last year meant its capacity was reassessed as 552 megawatts, a 12-megawatt increase. Making existing hydro generation more efficient is an alternative to building new hydro stations. 'There's a general consensus in the sector that under the resource Management Act, those big hydro projects couldn't be consented now,' Miller says. Ewers agrees, calling consenting, as well as environmental concerns, a 'key challenge' in New Zealand, pointing to the example of the controversial Hawke's Bay Ruataniwha dam. Generating power and selling it wholesale is profitable, and Meridian and the other big three power companies want to return dividends to their shareholders. 'Post privatisation we've seen investment in new generation absolutely collapse while gentailers have generated huge profits and pay enormous dividends,' says Miller. 'That includes the Crown, which is the largest share owner in the sector.' Over time, the amount of hydro energy flowing from the South Island to the North Island under Cook Strait is set to decrease. The Energy Efficiency and Conservation Authority estimates that by the 2030s, hydro will make up just 46-50% of New Zealand's electricity generation, and that percentage will keep falling. What replaces hydro? Wind and solar At the hydro station it seems so simple: water goes in, electricity and water come out. The electricity goes into the grid and, using a system of supply and demand, travels to where it's needed. But it's not so straightforward. It's better for electricity to be close to where it's going to be used. That's why New Zealand's biggest power station, at Lake Manapouri, is close to the Tiwai Point aluminium smelter, which uses about 13% of New Zealand's electricity supply (with extremely subsidised power costs estimated to add $200 to the power bill of every household in the country each year). If that electricity had to travel to Auckland, say, about 10-13% of it would be lost during the process of transmission and distribution – just like how wifi signals are weaker when you're further away from a cellphone tower. That's why the electricity spot market, which finds the cheapest source of power about every half hour, takes into account the distance the generation is away from the demand. Power might be wanted in Auckland – but even if there's lake capacity and cheap electricity in the Waitaki hydro system, it might be better to get slightly more expensive power from a wind farm in Raglan. That's why Meridian has been building wind and solar capacity, Ewers says. 'It's a lot cheaper,' he says. Most of that capacity growth is going to be in the North Island, closer to where the demand is – meaning less hydropower from the South Island will be needed, and when lakes are dry, the North Island can actually power the South. 'Solar investment in Northland could flow to Auckland, and in the summer it could even flow south to power the hydro lakes.' Meridian is building a 130-megawatt solar farm and battery system at Ruakākā, near Whangārei; five of its six operational wind farms are in the North Island, closer to demand. Wind farms, and solar generation even more so, are faster to build than massive hydro projects. None of the massive earthworks which built the cathedral-like spaces of Ōhau A are required. The turbines and panels don't need to withstand the force of tonnes of water pushing through a penstock. While the hydro lake levels have to be within a certain limit (less than a metre for Lake Ōhau, 14 metres for Pukaki), summer electricity from wind and solar farms could mean that hydro capacity is saved for winter, when there's less solar energy. 'That diversity of fuel is important for the security of generation,' Ewers says. While Transpower is independent, he says upgrades to New Zealand's transmission like the HVDC are essential for companies like Meridian to increase generation capacity. 'We need investment in transmission, because it takes longer to build than generation.' New Zealand's electricity needs are expected to grow enormously as manufacturers and individuals move away from fossil fuels. A recent report from Rewiring Aotearoa showed, for example, that 8.4 million fossil fuel-powered machines in New Zealand could feasibly be replaced by electric equivalents. 'Large businesses will start moving forward with electrified kit, not fossil fuel kit – it's much cheaper in the long run,' Miller says. It's particularly cheap if you can generate power where you are. Rapidly dropping prices of manufacturing in China has made it cheaper than ever to use solar panels, either for personal use or bigger industrial use. 'There are so many industrial areas with seas of rooftop spaces, you can imagine more and more solar panels and battery rigs next to them to keep charging,' Miller says. 'That will bring the cost of electricity down because you're not paying for transmission and distribution.' Instead of the big gentailers controlling power, solar will make the electricity market more local, more affordable, and less dependent on fossil fuels. 'It's a lot cheaper to generate on site than import fossil fuels to power an inefficient machine,' Miller says. Ewers thinks the privatised electricity market is working well to create the right amount of affordable, renewable power for New Zealanders. 'Every dollar spent on generation ultimately flows to consumers – you are very much incentivised to invest just the right amount, and do it in the most economic way so you're not burdening New Zealand consumers with huge costs. That's where wind and solar come in.' Miller disagrees. 'Generation investment has been increasing as security of supply has gotten tighter,' he acknowledges. But 'in general, there is a strong incentive [for generation companies] not to invest.' Companies tend to buy ideal wind or solar sites, get consents for new projects, then not build until the energy is absolutely needed – because the capital needed to build a project can go towards sharemarket returns instead. He thinks the government should forgo its share dividends, so money can be directed at building electricity capacity instead. 'The government retaining a significant state shareholding should mean there are the tools to do this, but it hasn't played out that way.' If the government making shareholder resolutions and using seats on the board isn't enough, he says the electricity companies should be regulated into increasing power generation – because if electricity isn't cheap, companies won't replace fossil fuels with electric-powered machines. While solar currently only provides just over 1% of New Zealand's electricity, the EECA estimates that it will be as much as 6% by 2035 and more from 2040 onwards. That rapid growth applies to wind, too, which is estimated to go from 6% of energy in 2021 to 20-34% by 2035. Geotherma l, too, is expected to increase, but not as dramatically. Solar and wind, which are less constant sources (solar doesn't work at night, the wind doesn't always blow), will need to be supported by battery systems. 'It's an exciting time, there are so many renewables in the pipeline and a real opportunity for New Zealand to electrify,' says Kilty, the Transpower CEO. In about five years' time the cable-laying ship will arrive to put the HVDC replacement under Cook Strait. That new cable will carry a very different mix of electricity generation sources to when the cable was last replaced in the 1990s. 'As wind, geothermal and solar farms grow around the nation, we're going to need increased connection between the islands.'
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Business Standard
14-05-2025
- Business
- Business Standard
GE Vernova shares up 5% on ₹140 crore capex plans to expand footprint
Shares of GE Vernova T&D India rose nearly 5 per cent on Wednesday on the company's plans to invest ₹140 crore to expand the manufacturing footprint in India. GE Vernova's stock rose as much as 4.8 per cent during the day to ₹1,778.4 per share, the highest level since February 6 this year. The stock pared gains to trade 3.7 per cent higher at ₹1,757 apiece, compared to a 0.31 per cent advance in Nifty 50 as of 1:28 AM. Shares of the company extended gains to their sixth day and have risen by over 40 per cent from its lows of ₹1,254, which it hit early April. The counter has fallen 15 per cent this year, compared to a 4.5 per cent rise in the benchmark Nifty 50. GE Vernova has a total market capitalisation of ₹44,938.7 crore, according to BSE data. Capex plans The energy manufacturing firm will invest ₹140 crore ($16 million) in India to expand its electrification manufacturing and engineering footprint, it said in an exchange filing. The investment will be made specifically in advanced grid technologies that enable stable, reliable, and secure delivery of electricity, it added. These expansions are expected to enhance manufacturing capabilities and key next-generation equipment used in modern transmission systems, the company said in the statement. These new expansions will focus on High Voltage Direct Current (HVDC) and Flexible Alternating Current Transmission Systems (FACTS) technologies, it added. GE Vernova's Electrification equipment backlog has more than tripled over the past year, Johan Bindele, vice president of Grid Systems Integration at GE Vernova, said in the filing. "These new expansions are aimed at enhancing our capabilities in the region, helping reduce supply chain dependencies, and allowing us to deliver faster, smarter solutions to customers in India and around the world.' About GE Vernova The company operates in the power transmission and distribution business. The company provides a versatile and robust range of solutions for connecting and evacuating power from generation sources to the grid, offering utilities the tools needed to swiftly meet increasing demand. It offers products ranging from medium voltage to ultra-high voltage (1200 kv) for the power generation, transmission, and distribution industries. The firm posted a nearly 3-fold jump in its net profit to ₹142.68 crore in the December quarter compared to a year ago, mainly on the back of higher revenues. The company had a net profit of ₹49.35 crore in the quarter ended on December 31, 2023. Total income rose to ₹1,099.45 crore during the third quarter against ₹834.72 crore a year ago.
Time of India
14-05-2025
- Business
- Time of India
GE Vernova to invest Rs 140 crore to expand manufacturing in India
GE Vernova on Wednesday announced plans to invest Rs 140 crore through its listed Indian arm, GE Vernova T&D India, to expand its manufacturing footprint in the country. The investment aims to meet the growing demand for advanced grid infrastructure. The expansions are expected to enhance the ability of GE Vernova T&D India Ltd to manufacture and test key next-generation equipment used in modern transmission systems, supporting both India's energy transition and export demand from other fast-growing economies, a company statement said. The investment plans will help GE Vernova to expand its electrification manufacturing and engineering footprint in India, specifically, advanced grid technologies that enable stable, reliable, and secure delivery of electricity, according to the statement. The investment will be made by GE Vernova T&D India Ltd, the listed entity of GE Vernova's electrification business in India and includes the development of a new manufacturing line at its existing facility in Chennai (Pallavaram) and a new facility in Noida. The new expansions will focus on High Voltage Direct Current (HVDC) and Flexible Alternating Current Transmission Systems (FACTS) technologies, which help stabilise power grids, reduce transmission losses, and make it easier to connect renewable energy like solar and wind. Live Events These systems are critical for getting renewable energy from where it's generated, often in remote areas, where it's needed most -- cities, industries, and communities. "India continues to be a critical part of our global strategy --both for our customers and as a manufacturing hub," said Johan Bindele, VP of Grid Systems Integration at GE Vernova. "With energy demand rising and more renewables being added to the grid, the need for strong, smart, and flexible infrastructure has never been greater," said Sandeep Zanzaria, Managing Director and CEO of GE Vernova T&D India. The new manufacturing line at the existing Chennai facility will produce Line Commutated Converter (LCC) HVDC valves and Voltage Source Converter (VSC) Static Synchronous Compensator (STATCOM) valves. These valves are key components of advanced HVDC and FACTS systems. LCC is typically used for long-distance, high-capacity power transmission, while VSC is more suitable for connecting renewable energy sources and providing grid stability. In Noida, GE Vernova T&D India will set up a new engineering and test lab to support design and system validation for these solutions, as well as supply control systems ensuring quality and performance in real-world grid conditions. The Noida lab is expected to be operational by the end of 2025, and the new manufacturing line at the Chennai facility by early 2027. As part of GE Vernova's previously announced USD 4 billion cumulative capital expenditure plan through 2028, this investment is part of the company's broader "Asia for Asia" strategy. The initiative aims to build localised manufacturing capacity to better serve regional needs while contributing to global supply chain resilience. It also supports India's ambition to become a renewable energy leader by expanding access to "Make in India" technologies that power everything from homes to factories with more efficiency and less environmental impact. GE Vernova T&D India currently operates five manufacturing facilities across the country and has served the Indian grid for over 100 years.
