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ELECTRICAL MIR ROR
|| JULY 2018 || 9
EDITOR’S DESK Dear Reader!
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Design & Production
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We would like to thank everyone, very much, for all your help and support in putting this magazine together. We have really appreciated the amount of support we have had from our authors and readers across the country sending us their articles, research works, ideas, experiences, suggestions. We could not have done this without you. There are a lot of magazines about electricity industry in India. Electrical Mirror is not just one of them, it is about the entire gamut of power sector structure, technology, regulation & functioning spanning from generation to transmission to distribution to trading. “A debate has been blazing whether India, today, is a power surplus nation or there isn't enough electricity demand in the country. Chronic electricity shortages have routinely led to low electricity consumption, low industrialization & farm distress over many years. With the shift in the role of coal-based generation, it is imperative that a framework be developed to support Conventional generating stations in the transition while not compromising on the country’s clean energy aspirations. Underperformance in renewable energy sector has been caused by execution delays in tenders. To sustain the envisaged annual GDP growth rate of around 8-9% over the next 20 years, India will require to increase its electricity generation capacity by around 5 times by 2032. With the power ministry looking at an investment of Rs.15,000 lakh Cr. over the next 5 years, the sector will witness a huge growth trajectory. In all the outlays & announcements by the Govt. like smart cities mission, digital India, power sector, highway projects etc. there is expected to be a major demand hike for electrical equipment. This is a huge opportunity for CoS and can be positioned to take advantage of the demand. The future looks bright if these proposed plans take shape.” We want to attack what is bad in Indian power sector and preserve and encourage what is new and good and we want to be its voice, to capture what’s better to this sector. Here, we return to this mission, attempting to capture the India’s voice through stories that are spoken as much as written, almost entirely in the first person. On this, our 7th anniversary issue, the time has come to reflect on this sector and below, we've gathered stories for and about sectors such as thermal power generation, renewable energy, coal, transformers, diesel gensets, led lighting, wires & cable, capacitors, test & measurement equipment, control panels & switchgears, motors automation and much more, their market size, significant potential and challenges in the industry.
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48 Cover Story
Kunal Sharma Founder Green-Watt Green-Watt Techno Solutions Pvt. Ltd.
Anil Munjal CEO & Director Riello Power India Pvt. Ltd.
Baldev Raj Narang (CEO) Clariant Power System Ltd.
R. Ranjan CEO NHPTL Pvt. Ltd.
Rajesh K Mediratta Director Business Development Indian Energy Exchange Limited
Coal-based Power Generation in India: Current Challenges and Future Outlook
Focus: Test & Measurement
50 62 78
Dr. Muneer Vice President-Marketing Tibrewala Electronics Ltd.
88 104 110 120 134
Test & Measurement Equipment: Recognizing The Tremendous Potential of the Indian Market, Test and Measurement Industry is Witnessing a Significant Growth.
Focus: Wire & Cable Wire & Cable Market
Focus: Capacitors Indian Electronics & Hardware Industry: Fueling the Growth of Capacitors in India
Focus: Transmission & Distribution Power Transmission and Distribution: T&D Losses Still a Huge Concern for India
Case Study of the Month Various Case Studies on Operation and Control Schemes for Grid Sub-Station Contd….
Focus: Transformers India Transformers Industry: How the Industry Subsist the Challenges?
Focus: Gensets Gensets Market in India: Rental Power Market will Inevitably Grow to Bridge Power Deficit
Focus: Solar Energy Are India’s Solar Dreams Realistic
ELECTRICAL MIR ROR || JULY 2018 || 13
154 Guest Article Solvina Services in Thermal and Captive Power Plants
Neelav Samrat De G.M – Market Management ANDRITZ Hydro Pvt. Ltd.
Guest Article 162
Guest Article 168
146 LED lighting industry: Future looks bright but challenges like product quality, customization, technological competence & taxation policies remain
Motor Management and Efficiency: Choosing Between Soft Starters and Drives
Advertise Index 190 Event Diary
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Testing high-voltage plants with thermal imagers from Testo.
Product Info 186
Fluke Launches Set of 4 New Tools in India
ELECTRICAL MIR ROR || JULY 2018 || 15
Power Ministry Mulls Rs 50 crore Reward for Discoms Under Saubhagya
The power ministry is mulling a reward of Rs 50 lakh for state utility employees and a grant of Rs 50 crore for discoms which will meet household electrification target under Saubhagya scheme at the earliest. Under the Rs 16,320 crore Pradhan Mantri Sahaj Bijli Har Ghar Yojana - 'Saubhagya' scheme launched last year in September, the government aims to electrify all 3.6 crore un-electrified households by December-end. The ministry will form different group of states based on the parameters like geography and number of households to be electrified. Among each group, the state completing the task of 100 per cent household electrification at earliest will be rewarded. In each group, only the top performer
will be rewarded. The move is aimed at incentivising state discoms to compete against each other to give a push to achieve the objective of 100 per cent household electrification under 'Saubhagya' Scheme. "We are working on incentives for the state discoms to motivate and incentivise them to meet target under Saubhagya. We would give a shield and Rs 50 lakh for employees of the discoms who would come first and complete the task in their states. "We would also give Rs 50 crore grant to the winner discoms for adopting a scheme or programme for improvement of their operations," Power Minister R K Singh told PTI. Asked about how it would be fair for a big state like Uttar Pradesh with tall order of electrifying 1.49 crore households to compete with smaller states with lower number of un-electrified households, he replied,"We would have different groups of state to bring fair completion among them".
There will be a group of special category states or hill states. This group will include all Northeast and hill states like Himachal Pradesh, Uttarakhand and Jammu & Kashmir. There will be another group of state with lower number of household electrification target. The major states like Uttar Pradesh and Bihar will be competing in another group. "We have got one good suggestion from Uttar Pradesh Energy Minister Shrikant Sharma recently that there should be a Vidyut Rath to make public announcement regarding completion of household electrification in different areas. This would give another chance to the left out families to seek electricity connection and help us to achieve our goal," he said. According to the Saubhagya portal, 81,41,950 families have been provided electricity connection so far under the scheme, while the work is on to energise 2,78,46,217 households across the country. The largest number of 1.49 crore unelectrified households are in Uttar Pradesh out of which 19.99 lakh have been provided electricity connection so far. At the second place, there are 33.44 lakh unelectrified households in Bihar, out of which 15.55 lakh have already been electrified.
Power Demand Breaks Record in Punjab & Haryana
The sultry weather conduction prevailing across the region has further pushed the power demand in Punjab and Haryana forcing the two states to resort to overdrawal from the northern grid 16 || July 2018 || ELECTRICAL MIR R OR
to meet the highest demand for electricity ever. Punjab had met the highest demand of power on June 25 when it supplied 12,065 MW of power. However, the same rose further on with the Punjab State Power Corporation Limited (PSPCL) supplying 12,266 MW of power. While Haryana power utilities successful supplied 10,037 MW of power by drawing 260 MW of extra power from the grid, Punjab drew 100 MW to meet
the increased demand. In Punjab, four thermal units each at Ropar and Lehra Mohabbat produced a maximum of 1,600 MW while, the independent power producers chipped in 3,360 MW and hydro generation was registered is around 750 MW. Both units of Yamunanagar, one unit of Khedar and two units of Panipat were running. The water level in reservoirs of Punjab continues to be at low level as compared to last year’s. The Bhakra level is at 457.01 metre against last year’s level of 481.52 metre on a corresponding day, last year. This water level is about 24.5 metres less as compared to last year. In case of Ranjit Sagar Dam project, the water level is at 506.40 metres against last year’s level of 515. 56 metres. ||www.electricalmirror.net||
ELECTRICAL MIR ROR || JULY 2018 || 17
India Plans to Bring Down Emission Levels of Old Power Plants to National Standards by 2022: Official
Starting next year, India has planned to bring down emission levels of all old power plants to national standards by 2022, a top Environment Ministry official has said. Union Environment Secretary C K Mishra also said that "very old" plants in the country might be closed down. "When it comes to addressing climate change issues, the first thing that one needs to do is to acknowledge that there is an issue... In the backdrop of the Paris agreement, the NDCs (Nationally Determined Contributions) announced by India, so far, according to me, is already ambitious. "But, there are development imperatives, and India is one of the fastest growing economies, so as growth takes place, emissions levels are bound to rise. So, the story of India and the narrative is that of responsible growth," he said.
Mishra said this during the inaugural edition of 'The Earth Dialogues', hosted by a public advocacy firm here. He also discussed the road ahead for the government in the clean energy sector. We have a plan in place, wherein from 2019 onwards and by 2022, emission levels of all old power plants will be brought to national standards. Some may be closed which are very old, but rest will be done," Mishra said. State-run National Thermal Power Corporation (NTPC) is doing retrofitting works in old plants in a "big way", the secretary said. "It is a time-consuming process and one of these additions takes about 18 months," he said. Mishra said the emission scenario would improve if emission norms for boilers and technology that are friendly to emission reduction are implemented. Thermal and other fossil fuel-based power plants are one of the main causes of air pollution. "Doing is well worth it, as the cost of not doing is much higher," he said The secretary said the Badarpur Thermal Power Plant in Delhi remains "closed" and it would be operated only in case of "extremely critical power
situation" in the national capital. "The Badapur plant, for example, remains closed. We are holding it, and will operate only in case of extremely critical power situation in Delhi. Next year, anyways, we are shutting it down, as we have an alternative system being built," he said. In Bawana, the gas power plant is running at 20 per cent capacity. It has two units of 750 MW each, Mishra said. "By next month, the first unit of 750 MW will fully run on gas with full capacity. Gas is a much greener fuel," he said. Mishra said while the Paris agreement has it own modalities, "what about the pre-2020 commitments". The 2015 Paris accord is an agreement within the United Nations Framework Convention on Climate Change (UNFCCC) dealing with greenhouse gas emissions mitigation, adaptation, and finance starting in 2020. The agreement sets out a global action plan to put the world on track to avoid dangerous climate change by limiting global warming to well below two degrees Celsius. "There are two factors which are of importance in the backdrop of the Paris accord -- transfer of technology to developing countries must be unfettered and when it comes to climate finance, it should be new and distinguishing," Mishra said.
Solar Tariffs Showing Upward Trend Again Solar tariffs again showed an upward trend at the latest Solar Energy Corporation of India (SECI) auction on Friday, with winning tariffs of Rs 2.70-2.71 per unit. At SECI’s previous solar auction of 2000 MW three days ago, the lowest tariff had been Rs 2.44 per unit, while other winning tariffs were in the range of Rs 2.52 to Rs 2.54 per unit. The current auction, for 750 MW at the Kadapa Solar Park in Andhra Pradesh, was won by SB Energy, the joint venture of SoftBank, Foxconn and Bharti Airtel, which bid Rs 2.70 per unit; Sprng Energy, the renewable energy platform of London-headquartered private equity fund, Actic LLP, which quoted Rs 2.71 per unit; and Ayana Renewable Power, backed by 18 || July 2018 || ELECTRICAL MIR R OR
the UK government’s development finance institution CDC, which also sought the same price of Rs 2.71 per unit. The three were allotted 250 MW each. “The difference in tariffs is primarily because of the high solar park charges in Andhra Pradesh and the shorter time of only one year given to the developers to complete their projects,” said Vinay Rustagi, Managing Director at solar consultancy, Bridge to India. In the earlier auction for 2000 MW, projects were locationagnostic and could be set up anywhere, to be connected to the Inter State Transmission System (ISTS). “The time allotted was also 21-24 months,” said Rustagi. Solar tariffs hit an all time low of Rs 2.44 per unit for the first time in May 2017 at a SECI-conducted
500 MW auction at the Bhadla Solar Park (Phase III), Rajasthan. But thereafter they had been climbing steadily due to the rising cost of solar panels – which are largely imported from China – as well as fears of safeguard duty being imposed by India to protect local solar manufacturers. They rose to a high of Rs 2.94-3.54 at an 860 MW auction conducted by the Karnataka Renewable Energy Development Ltd in February this year. In end-May, however, the Chinese government stopped approving further solar projects within the country, fearing excess capacity, which in turn has weakened export prices of Chinese solar panels bringing down the solar tariff in the two auctions conducted since then in India. ||www.electricalmirror.net||
ELECTRICAL MIR ROR || JULY 2018 || 19
750MW MP Solar Plant Starts Operations, to Serve Delhi Metro
The 750 MW Rewa Solar Power Project in Madhya Pradesh, which is to supply power to the Delhi Metro, started operation, according to an announcement by the state-run Madhya Pradesh Urja Vikas Nigam Ltd (MPUVNL) -- and one of the biggest beneficiaries will be the Delhi Metro. A statement issued here said the plant, spread over 1,590 acres and being operated by Rewa Ultra Mega Solar Ltd, "is among the largest single-site solar power plants in the world".
"This is the first project in the country supplying power to an inter-state open access customer -- Delhi Metro. This opens up an entirely new chapter in utilisation of renewable energy in the country, where large institutional open access consumers can start procuring it inexpensively," it said. "State discoms will get 76 per cent of the power produced from the Rewa solar plant, while the Delhi Metro Rail Corporation (DMRC) will benefit from the remaining 24 per cent. The project is estimated to meet up to 90 per cent of the day electricity demand from DMRC. "The commissioning of this project will potentially result in a saving of Rs 4,600 crore to state discoms and Rs 1,400 crore to Delhi Metro over
its project life," it added. Commenting on the development, Madhya Pradesh Chief Minister Shivraj Singh Chouhan said: "The bidding for the project was conducted online for as long as the bidders were interested -- 33 hours without stop. The project made possible an investment of over Rs 4,000 crore in the state." According to MPUVNL, the project would lead to avoiding 15.4 lakh tonnes of carbon dioxide generation every year. "The Rewa solar plant is India's first and till now the only solar project to get funding from the Clean Technology Fund available at a rate of 0.25 per cent for a 40-year period. It is also the first and the only solar park in India to get a concessional loan from the World Bank," it said. The project is being developed by Mahindra Renewables, ACME Solar Holdings and Solengeri Power, who emerged as bid winners for the three project units.
Govt Plans to Make Local Manufacturing a key Element for Large Solar Power Projects The government plans to make local manufacturing of equipment a key element in tenders for large solar power projects, even as the country aims to add close to 500 gigawatts of renewable energy capacity by 2030, senior officials said. The ministry of new and renewable energy (MNRE) plans to design the bids in a way to bring manufacturing into the country while taking care of the interest of small and medium developers, said Anand Kumar, secretary, MNRE. “So the bigger bids will be focused on manufacturing, while smaller bids will take care of smaller developers. If there is one big bid and one player takes it all, that will be unfair.” It would be difficult to attract manufacturers with smaller bid sizes, Kumar said. While around 80% of the equipment used in wind power projects are manufactured locally, in the case
20 || July 2018 || ELECTRICAL MIR R OR
of solar projects about 90% of the equipment are imported and 85% of which come from China. The cost of solar equipment is expected to fall further after the Chinese government recently decided to put brakes on its solar capacity addition. The ministry of power, MNRE and the Central Electricity Authority (CEA) have worked out the country’s installed capacity till 2030. Of the total power requirement of 862 GW, as much as 350 GW will come from solar and another 140 GW will come from wind projects. “These long-term projections are being made so that manufacturing gets a boost and people are assured of what kind of market they are looking at,” Kumar said. To reach there, the ministry plans to bid out 30 GW solar and 10 GW wind projects every year till 2028. Solar Energy Corporation of India earlier this year floated a global tender for setting up 5 GW manufacturing capacity linked with Inter-
state transmission system (ISTS)-connected solar project for 10 GW aggregate capacity. As part of the tender, developers will be allowed to import polysilicon, but will have to manufacture solar modules locally. The government, however, has not mandated the use of locally manufactured solar panels in the project as part of the tender, thereby steering clear of landing into trouble at World Trade Organisation (WTO), officials said. “These tenders are WTO compliant,” Kumar said. “The developer is not bound to use the components in the power project. They are free to export,” he said. Industry experts said that while these tenders look compliant with WTO norms at the outset, they could be potentially challenged, as developers are allowed to bid higher tariffs for the power projects.
ELECTRICAL MIR ROR || JULY 2018 || 21
Tata Power Renewable Commissions 100 MW Solar Capacity in Anthapuramu Solar Park
Tata Power said its arm Tata Power Renewable Energy Ltd (TPREL) commissioned 100 MW (50 MW x 2) solar capacity at Anthapuramu Solar Park, Andhra Pradesh With this, the overall operating renewable capacity of the TPREL now stands at 2,215 MW in India, a company statement said.
The sale of power from this solar plant has been tied up under a 25 year power purchase agreement with Solar Energy Corporation of India (SECI). This is part of the implementation of the MNRE scheme for developing grid connected solar power capacity of Jawaharlal Nehru National Solar Mission (JNNSM) Phase II, Batch-III of the Government of India through Viability Gap Funding (VGF) Mode, it said. "Renewable energy is the future for 'New India' and will play a big role in providing the country "24X7 Power for All by 2019. For a tropical country
like India, solar energy has the highest potential. "Tata Power is focused to constantly proliferate the group's renewable energy portfolio and we plan to add around 1,000 MW renewable energy capacity to our portfolio every year, scaling it to 45 to 50 per cent in the next five years, largely through organic growth," Praveer Sinha, CEO and Managing Director, Tata Power, said in the statement. The commissioning of 100 MW capacity in Anthapuramu has fortified the company's position as a leading renewable energy company in the country with a strong presence in solar power generation, Ashish Khanna, PresidentRenewables, Tata Power said The company has organically added 159 MW wind and solar capacity in FY17 along with the acquisition of Welspun Renewables Energy Pvt Ltd last year, it added PTI.
Solar Tariffs Once Again hit at Rs 2.44 a unit at SECI Auction
Solar tariffs touched Rs 2.44 per unit once more, the lowest they have ever reached, in the latest 2000 MW auction conducted by Solar Corporation of India (SECI). Acme Solar, one of the biggest domestic solar developers, with around 1700 MW of commissioned solar projects, won 600 MW with this bid. The tariff had fallen to Rs 2.44 per unit only once before, in a SECI auction for projects at the Bhadla Solar Park in May 2017, but had been climbing significantly in subsequent auctions, the highest reached being Rs 2.94 to Rs 3.54 per unit in an 860 MW auction across different talukas of Karnataka, held by the Karnataka Renewable 22 || July 2018 || ELECTRICAL MIR R OR
Energy Development Ltd (KREDL) in February this year. Other auctions by Gujarat, Maharashtra and NTPC too have seen winning tariffs of well over Rs 2.50 per unit. The other winners at the auction were Shapoorji Pallonji, which won 250 MW bidding Rs 2.52 per unit, along with Azure Power, Hero Solar and Mahindra Susten, all three of which bid Rs 2.53 per unit. While Azure Power won 600 MW, Hero and Mahindra got 250 MW each. The remaining 50 MW was awarded to Mahoba Solar at Rs 2.54 per unit. All 2000 MW of projects will be connected directly to the Inter State Transmission System (ISTS). Industry sources attributed the sharp fall to developments in China, from which around 80% of the solar panels and modules used in Indian solar projects are imported. In end-May, the Chinese government stopped approving
further solar projects and cut subsidies for its solar developers, as it felt the sector was expanding too fast. With local demand falling, Chinese solar manufacturers have no choice but to export, leading to a weakening of prices. India accounted for 30.9% of China’s solar exports in 2017, according to the China Chamber of Commerce for Import and Export of Machinery and Electronic Products. Solar tariffs had been rising for the past year due to two main reasons – the rising cost of solar panels from China, and the possibility of safeguard duty being imposed on Chinese solar imports ever since domestic manufacturers complained to the Director General Safeguards that Chinese imports were seriously hurting their industry. However, domestic manufacturers do not have the capacity to meet India’s solar equipment requirements, sparked by its ambitious programme of achieving 100 GW of solar capacity by 2022. A decision on safeguard duty is expected shortly. But the trend of rising Chinese panel prices has clearly been dramatically reversed. ||www.electricalmirror.net||
110 Renewable Energy Developers to Pay Transmission Charges
Karnataka’s main power distribution company has asked 110 renewable energy developers to pay transmission charges as directed by the regulator in an order that was stayed by the state high court on a petition by seven other companies. The directive of the Bangalore Electric Supply Co. is not addressed to the seven developers that obtained the stay on the KRC order. In the communication, it asked them to sign a declaration indicating their willingness to pay wheeling and banking charges The May 14 order by the Karnataka Electricity
Regulatory Commission requires renewable energy developers to start paying “wheeling and banking charges” – charges for transmitting their power – in line with payments by conventional energy utilities. So far, solar developers had been exempt from these charges, while wind and small hydro developers paid 5% of what thermal and other developers did The regulator said renewable energy developers should start by paying 25% of the charges paid by conventional developers. It imposed the charges retrospectively, ordering solar developers to pay
from April 2017, wind developers from October 2013 and small hydro ones from January 2015. It argued that exemption had been granted to renewable energy developers earlier because they needed nurturing, not being able to compete with thermal power. Now, renewable energy tariffs have fallen steeply over the past three years to levels competitive with those of conventional power, renewable developers too should start paying wheeling and banking charges. Wind power developer Avaada, along with six other developers including Bengaluru-based Prestige Group and the Embassy Group contested the order in court and obtained an interim stay on May 25. Their main contention was that KERC had earlier maintained that there would be no change in the wheeling and banking charges paid by renewable energy developers till March 2018 and the retrospective demand for such charges violated this commitment. Other renewable energy developers have also appealed against the order, but their petitions are pending.
PPA Generate Electricity from Idling Plants and Repay Loans Sembcorp Energy, Jaiprakash Associates, IL&FS and RKM PowerGen are among eight companies that the responded to government’s pilot scheme to aggregate and auction power purchase agreements (PPAs), to help them generate electricity from idling plants and repay loans. Bids were received for 2,200 MW PPAs against 2,500 MW offered by the government. Projects of some companies, including GMR Energy, Coastal Energen and Lanco Infratech, which do not have assured coal supplies or gene pending in insolvency court, could not participate in the bidding process, people close to the development said. “Companies that are in the insolvency court did not receive the requisite permission from NCLT,” one of the sources said. “Companies that do not have an assured supply of coal have stayed away from bidding. The no escalation clause could also, 24 || July 2018 || ELECTRICAL MIR R OR
have been a deterrent,” the person said. The aggregate PPA demand from states, however, has been close to 5,000-MW, he said. The companies had submitted technical and price bids. The price bids of technically qualified companies will be opened on July 6. “It is a welcome step, idling capacity with coal linkage/imported coal of 2200 MW will get PPA and will be able to service loan and meet O&M costs,” said Ashok Khurana, director general at Association of Power Producers, said. “Next aggregated bid should be with coal linkage so that idling plants without coal can also bid,” he said. The government had in April kicked off the pilot scheme for procurement of aggregate power of 2,500 MW on competitive basis for three years from commissioned projects without PPAs PFC Consulting Ltd has been appointed as nodal
agency and PTC India is the PPA aggregator that will sign the PPAs with successful bidders and discoms. Under the scheme, a single entity can be allotted maximum capacity of 600 MW. The scheme assures minimum offtake of 55% of contracted capacity and the tariff will be fixed for three years without any escalation. Also the fixed cost for the PPA auction has been kept at 1 paisa per unit. The scheme looks to address the issue of stressed assets. Lack of PPAs is one of the key reasons for stress in the power sector, besides factors such as promoters’ equity crunch, no coal supply, and regulatory and contractual issues. Electricity distribution companies have not called long-term contracts in the last few years. Long-term PPAs of some states like Kerala, Maharashtra and Uttar Pradesh did not materialise.
ELECTRICAL MIR ROR || JULY 2018 || 25
HPL Electric & Power Ltd. Receives BIS Certification for Smart Meters Bags two big Tenders worth Rs. 76.23cr for meters
PL Electric & Power Ltd. (NSE: HPL, BSE: 540136) has received BIS certification for its Smart Meters under ‘IS 16444’.
HPL is one of the few companies in India which has BIS certification for smart meters. The market for meters is expected to witness explosive growth by 2022, with government promoting smart cities and smart grids, thus paving way for a robust demand for smart meters. The market for meters is expected to grow at a CAGR of 5.3% which would translate into double-digit growth. Commenting on the same, Mr. Gautam Seth, JMD, HPL Electric & Power Ltd. said, “We are pleased to receive BIS certification for our smart meters. This is a result of the hard work and consistency of our technology team to consistently manufacture and supply superior quality products at competitive prices. HPL is one of the few companies in India to have received this certification. It is a proud moment for us as it highlights our company as one of
26 || July 2018 || ELECTRICAL MIR R OR
the leading manufacturers of meters and gives us an edge in the smart metering opportunity. We are positive that this development will further reinforce customers’ belief in the quality of our products and services.” The certification is a true indication of the company’s technical capabilities and an assurance of product & service quality. This is a significant milestone for the company which will enhance its market position as a technologically advanced meter supplier. This comes along with the company bagging two tenders of meters from southern utilities for Rs. 76.23cr, and the total order book as on date for meters stands at Rs. 474.65 cr.
About HPL Electric & Power Ltd.
HPL is an established electric equipment manufacturing company in India, manufacturing a diverse portfolio of electric equipment, including metering solutions, switchgears, LED lighting equipment and wire & cables, catering to consumer and institutional customers
in the electrical equipment industry. HPL’ manufacturing capabilities are supported by a large sales and distribution network with a pan-India presence. They currently manufacture and sell its products under the umbrella brand ‘HPL’. HPL supplies switchgears, lighting equipment and wires and cables, primarily through their pan-India dealer network, which comprises of 2000+ dealers & distributors & 27000+ that are managed by the carrying and forwarding agents. In addition, HPL supplies their products to Power Utilities, which primarily includes supply of meters under direct contractual arrangements to electricity boards and power distribution companies, as well as through project contractors. Further, they supply their portfolio of products to developers of residential and commercial building projects, OEMs and to industrial customers through a mix of direct sales and supply through their authorized dealer network.
ELECTRICAL MIR ROR || JULY 2018 || 27
HARTING Expands Production Capacity in India The HARTING Technology Group continues to grow and expand its capacity: the production site in Chennai, India, which was officially opened in February 2017, has now been expanded.
H Opening the new building: Andreas Conrad, Senior Vice President Operations Marcus Goettig, General Manager Girish Rao, CEO HARTING India, Bernd Fischer, General Manager Corporate Regional Management. (from left to right).
ARTING sees ample growth potential in the country, especially in the important markets of mechanical and plant engineering, power generation and transportation. The production facility has now been doubled in size by some 1,200 square meters, bringing it to a total of 2,400 square meters. Additional hires are planned for the current financial year, with the number of employees slated to be increased from 40 to 60."Weâ€™re pleased with this continued good demand for HARTING products. This expansion strengthens our global HARTING production network," says Andreas Conrad, Operations Director. India was the partner country of the HANNOVER MESSE trade show in 2015. Indian Prime Minister Narendra Modi joined with German Chancellor Angela Merkel in visiting the HARTING booth on the first day of the fair at the time.
HARTING Technology Group is one of the world's leading providers of industrial connection technology for the three lifelines of "Dataâ€?, "Signal" and "Power" and has 13 production plants and branches in 43 countries. In addition, the company also produces retail checkout systems, electromagnetic actuators for automotive and industrial series use, as well as hardware and software for customers and applications in automation technology, robotics and transportation engineering. In the 2016/17 business year, some 4600 employees generated sales of EUR 672 million.
HARTING AG & Co. KG Detlef Sieverdingbeck, General Manager | Communication and Public Relations, Marienwerderstr, 32339 Espelkamp Phone: 05772 47-244 | Fax: 05772 47-400 | Detlef.Sieverdingbeck@HARTING.com | www.HARTING.com
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ELECTRICAL MIR ROR || JULY 2018 || 29
TDK Named Top 100 Global Innovator
Shigenao Ishiguro, President and CEO of TDK Corporation, and Yoshiko Tanahashi, Director of Clarivate Analytics Japan
DK Corporation announced that it has been selected as one of the 2017 Top 100 Global Innovators by Clarivate Analytics (formerly the Intellectual Property and Science business of Thomson Reuters). This is the fourth time TDK has been named to the prestigious list. To determine the world’s most innovative companies, Clarivate Analytics uses a methodology that analyzes four primary criteria: overall patent volume (i.e., a minimum of 100 patents must have been granted over the most recent five-year period), a successful patentapplication-to-grant ratio, global patent protection of the portfolio, especially by Chinese, European, Japanese and U.S. patent offices, and the number of citations by other organizations as evidence of
patent influence. Since its inception in 1935, TDK has dedicated itself to continue inventing superior materials, production technologies, and optimal processing techniques. TDK offers a comprehensive product portfolio spanning passive components such as capacitors, inductors and piezo and protection devices, as well as customized products including sensors, and energy devices. The company’s electronic solutions are used in a broad spectrum of applications including automotive and industrial electronics, as well as in communications technology and solutions for the Internet of Things (IoT). TDK will continue to improve its innovative strength by offering solutions that leverage the company's
broad spectrum of technologies. For example, some of TDK’s recent innovations include: • CeraCharge™, the world's first solid-state rechargeable battery in SMD technology. Thanks to its solid ceramic electrolyte this tiny component cannot leak, burn or explode. They are destined for IoT applications such as wearables or systems for energy harvesting. • The world's first 7-axis motion and pressure sensor, which integrates a 3-axis gyroscope, 3-axis accelerometer and MEMS barometric pressure sensor. This miniature solution enables ultra-precise position determination, for example, in outdoor navigation devices and wearables.
POWER FINANCE CORPORATION LTD. (PR UNIT)
PFC SANCTIONS RS.10,218 CR. TO RRVUNL
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Power Finance Corporation Ltd. (PFC) has extended additional financial assistance to Rajasthan Rajya Vidyut Utpadan Nigam Ltd.(RRVUNL) to support their efforts to comply with the new emission norms of MoE&F. This financial assistance totaling to Rs.2626 crore is mainly for installation of Flue Gas Desulphurization Plant (FGD) & Selective Catalytic Reactor (SCR) as part of environmental up-gradation works at ongoing Super-critical thermal power projects at Suratgarh and Chhabra having a capacity of 2x660 MW each. With this assistance, the cumulative sanction of PFC for the above two projects amounts to Rs. 10,218 crore. The loan documents for the additional financial assistance with PFC were executed recently at PFC’s Office in New Delhi in the presence of Shri Rajeev Sharma, CMD, PFC, Shri N.K. Kothari, CMD, RRVUNL and other Senior Officials of both the organizations. ||www.electricalmirror.net||
ELECTRICAL MIR ROR || JULY 2018 || 31
NEW FEATURE: Manage your Energy Costs with Metrel PQAs and PowerView 3.0
nergy management is the process of monitoring, controlling and conserving energy and is an essential measure to reduce and optimize the electricity costs. With proper energy management, you can achieve better business results through: • Reduction of maintenance costs of equipment • Usage of more effective equipment • Shifting your energy use to the period when energy is at lower tariff (rate) • Improving your business results by keeping track on your energy use To help facilitate this, we have added a new feature for our PowerView 3.0 PC software, which now supports report creation on the basis of recorder data, obtained with any of our latest 3rd generation PQA instruments (MI 2883, MI 2885 and MI 2892). It is possible to select between energy report and energy demand report (using data taken from general recorder) and between different monitoring intervals (hourly, daily and weekly time intervals).
Energy demand report provides information about energy consumption in the monitoring period, three highest maximum demands and (in pie chart) presentation of positive sequence of consumed active power vs positive sequence of consumed fundamental reactive power vs unbalance apparent power vs harmonic apparent power. Based on the relations between these parameters it is possible to take appropriate actions to improve the entire system.
Users can easily implement different tariff (rate) schedules with insertion of specific cost/tariff (rate), with daily and weekly analysis giving the exact info inside which period energy consumption (or cost) exceeds limits. There is also an option for direct comparison between different time intervals on the same location as well as the creation of same report for different measurement places. |For More Information Please contact : NSM Technologies Pvt.Ltd., Nasihk| |E-mail - firstname.lastname@example.org, Mobile - +91 9371236688,+91 9130009410.| 32 || July 2018 || ELECTRICAL MIR R OR
ELECTRICAL MIR ROR || JULY 2018 || 33
ccording to India Infra. Research, the total coal-based installed capacity stood at 197 GW as of March 2018, accounting for about 58% of the installed capacity of 344 GW across all sources of power generation. While, the share of coal-based capacity in total capacity has increased consistently b/w 2013 & 2015, it has continued to decline marginally since then. Meanwhile, in 2016-17, electricity generation from coal-based plants accounted for more than 80% of the total power produced during the year.
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With disruptive tech., controversy around clean energy targets, the resurgence of nuclear power, the rise of clean coal - & even cheaper renewables & cybercriminals targeting electricity grids, 2018 promises to be an interesting year across all energy & resource sectors. 2018 is set to be a year characterized by innovation & disruptive tech. across the major energy sectors, from fossil fuels to renewables. Coal production may have fallen by a record amount in 2016 but demand remains high. Fossil fuel will continue to supply around a third of all energy used globally & account for roughly 40% of electricity generation. In China, coal will continue to produce up to 70% of the nation’s electricity. Industry push toward zero-carbon coal-fired power plants will continue through 2018 with R&D into ultra-supercritical steam tech. & high-efficiency low-emissions solutions. Despite President Trump’s pledge to restore US coal industry & the US withdrawal from the 2015 Paris agreement, production looks certain to continue to fall thanks to cheap & plentiful shale gas. Thailandbased TTCL is set to build a $2.8bn coal-fired power plant in Myanmar in south-east Asia. Construction work on the controversial 1,280MW project in Hpa-An township in Kayin state could cost up to $2bn. The plant may use Japanese ultra-supercritical tech. & come online in 2023. Bharat Heavy Electricals will continue work through 2018 on the highest-value order in India’s power sector, a 4GW supercritical plant in Telangana, southern India. The Rs 204bn project in Yadadri comprising five 800MW units will be owned by Telangana State Power Generation. According to India Infra. Research, the total coal-based installed capacity stood at 197 GW as of March 2018, accounting for about 58% of the installed capacity of 344 GW across all sources of power generation. While, the share of coal-based capacity in total capacity has increased consistently b/w 2013 & 2015, it has continued to decline marginally since then. Meanwhile, in 2016-17, electricity generation from coal-based plants accounted for more than 80% of the total power produced during the year. Pvt. sector (IPPs & utilities) had the highest share in coal-based generation, followed by the central & state sectors. B/w 2012-13 & 2016-17, generation from coal-based power plants have increased at a CAGR of 8.1%. In 2017-18, coal-based generation until was around 951 BUs, maintaining the 80% share of the total power generation. PLF for coal-based power plants has declined considerably from about 70% in 2012-13 to 59% in 2017-18, & is set to decrease even further. Rapidly changing generation mix will require coal-based power plants to be more flexible through multiple physical changes. Moreover, the operational strategy of power plants will need to be changed in order to deal with the challenges posed by flexibilisation. By 2022, renewables are expected to account for 33% of the country’s power generation,
ELECTRICAL MIR ROR || JULY 2018 || 35
& 43% by 2027. Future load generation scenario suggests a heavy demand growth, likely to be fulfilled in part by renewable sources of energy. However, given the intermittent & variable nature of these sources, the role of load balancing will be sig.ly played by coal-based & hydropower plants. Installed coal-based power capacity is expected to reach 248,513 MW by 2026-27, as per CEA’s National Electricity Plan. An additional capacity of 51,342 MW is under-development & likely to yield benefits by 2021-22. Major changes are expected in the country’s installed capacity mix going forward. The share of coal-based power capacity in total installed capacity is expected to stand at about 48% by 2021-22 as against 57.3% in 2017-18. It is further expected to reduce to 39% by 2026-27. According to India Infra. Research, the average YoY growth rate of power generated by coal-based power plants during 2012-16 was 9.3%. Based on power generation forecasts, high-, medium- & low-growth scenarios have been determined to forecast the demand for coal by the power sector over the next 5 years. India has large reserves of coal. By the end of March 2018, total installed coal capacity in India stood at 196,957.50 MW. India’s proven natural gas capacity measures about 24,897.46 MW as on March 2018. Power is one of the most critical components of infra. crucial for the economic growth & welfare of nations. The existence & development of adequate infra. is essential for sustained growth of the Indian economy. India’s power sector is one of the most diversified in the world. Sources of power generation range from conventional sources such as coal, lignite, natural gas, oil, hydro & nuclear power to viable non-conventional sources such as wind, solar, & agricultural & domestic waste. Electricity demand in the country has increased rapidly & is expected to rise further in the years to come. In order to meet the increasing demand for electricity in the country, massive addition to the installed generating capacity is required. India ranks third among 40 countries in EY’s RE Country Attractiveness Index, 36 || July 2018 || ELECTRICAL MIR R OR
on back of strong focus by the Govt. on promoting RE & implementation of projects in a time bound manner. India has moved up 73 spots to rank 26th in the World Bank's list of electricity accessibility in 2017, MoP. In Sep’17, the GoI launched the Saubhagya scheme to provide electricity connections to over 40 mn families in rural & urban areas by Dec’18 at a cost of US$ 2.5 billion.
Indian power sector is undergoing a sig. change that has redefined the industry outlook. Sustained economic growth continues to drive electricity demand in India. The GoI’s focus on attaining ‘Power for all’ has accelerated capacity addition in the country. At the same time, the competitive intensity is increasing at both the market & supply sides (fuel, logistics, finances, & manpower). Total installed capacity of power stations in India stood at 334,146.91 MW as on Feb’18. MoP has set a target of 1,229.4 BU of electricity to be generated in the FY 2017-18, which is 50 BU’s higher than the target for 2016-17. The annual growth rate in RE generation has been est. to be 27% & 18% for conventional energy. Indian solar industry has installed a total of 2,247 MW in the third quarter of 2017, from 1,947 MW in the second quarter of 2017. Cumulative installed capacity reached 7,149 MW in the first 9 months of 2017, covering more than one-third of total new power capacity addition in 2017. Two under-construction hydro projects of NHPC in Himachal Pradesh & J&K, expected to be commissioned in 2018, will produce 4,458.69 MUs of additional power, according to the MoP. Total est. potential of tidal energy in India is about 8,000 MW, of which 7,000 MW is in the Gulf of Khambhat, 1,200 MW is in the Gulf of Kutch & 100 MW in the Gangetic Delta. The number of small hydro power projects set up in India stood at 1,085 with total installed capacity of 4,399.355 MW as of 30 Nov’17.
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ELECTRICAL MIR ROR || JULY 2018 || 37 21/03/18 11:30 AM
1,000 800 600 400 200 0.
Coal-based Generation (BUs)
Total Generation (BUs)
82 81 80 79 78 77 76 75 74 73
Trends in Coal-based Power Generation
Coal-based Generation as % of Total Generation
Expected Network Addition in Urban Rail Segment 1,200
2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 2022-23 Historical High Growth Scenario
Forecast Medium Growth Scenario
Low Growth Scenario
Conventional generation as an enabler of economy
For a growing economy like India, uninterrupted electricity generation & availability are key to stable economic growth. India’s electricity generation has grown steadily in the past, reaching about 1,228 BUs from an installed capacity of around 330 GW. This period has been a phase of exponential growth for the energy sector with rapid capacity addition across the board over the last 2 years. With India’s aspiration to continue to grow at a stable 7% p.a. as it has done in the past, reliable electricity supply for civil society & businesses is essential. For more than a century however, the backbone of the power sector in India has been the thermal generation plants (coal-fired thermal plants, in particular). Of the installed base of 330 GW in 2017, coal-based power plants contribute almost 60% (~194 GW). Power generation from renewable sources has grown rapidly over the last 2 years replacing hydroelectricity as the second highest installed base for electricity generation. Thermal Power has always historically accounted for more than 60% of the total generation capacity in the country. Furthermore, over the last 2 years alone, the coal-based power generation capacity in the country has grown by nearly 29 GW, the most by any fuel type in the country. 188 coal-based plants in the country account for greater than 70% of the total electricity generated. The conventional sources of power thus serve as the base load for the electricity demand 38 || July 2018 || ELECTRICAL MIR R OR
across the country. As a sector, the impact of coal-based power generation on the economy is far from insight To fully assess the impact the sector has on the economy one must evaluate not just the direct impact that reliable electricity generation has on the economy (through job creation at the plants themselves), but also the indirect means by which the sector enables communities by creating jobs & opportunities in ancillary industries. Total impact of this sector on the national GDP & employment can be categorized along 4 key dimensions. Direct effects: Which relate to the direct employment (at the plant) & direct output (electricity) generated by the sector over its lifetime. Indirect effects: Which relate to the incremental impact that the coal-based generation sector has on ancillary industries, including input industries, EPC services, O&M services, steel, cable & cement industries, instrumentation etc. Induced effects: Which relate to the spend & employment created by the expansion of power & allied sectors which in turn increase the overall spend in the economy through increasing the total demand. Second-order growth effects: Which relate to the multiplier impact more economical/ reliable electricity supply would have on downstream industries, boosting the total industrial output. Furthermore, this impact on the economy is created throughout the life cycle of a project: from the construction phase through the operational phase of the project. The construction phase of a conventional project has an economic multiplier of 1.48x (i.e., $1.48 of economic benefit for every $1 of investment in the project phase), while the operations phase of the plant has an employment multiplier of 2.8x (i.e., 2.8 jobs created for every job in the sector). This is in contrast to renewable-based projects, where the bulk of the economic impact is created in the construction phase (Economic multiplier of 2.32). Furthermore, a sig. fraction of the construction phase impact for solar projects is created in China (which has emerged as a manufacturing hub). The India share of value addition in the solar value chain is typically under 15% of the total investment, thereby weaning off the benefits accrued to India. Thus, it is clear that both renewables & conventional coal-based plants have a role to play in sustaining India’s stable economic growth both in terms of contribution to electricity generation & economy enablement.
Given the criticality of coal-based power plants both to the power sector & more generally to the economy as a whole, it is extremely important that the sector remains competitive with active participation from Govt., public & Pvt. players. The sector as a whole is not without its share of problems, with adverse trends in demand, supply & efficiency combined with weak policy support for conventional generation heralding difficult times in the coming years. A number of these challenges are structural in nature,
ELECTRICAL MIR ROR || JULY 2018 || 39
contributing to the present woes of coal-based generating stations. These challenges can be categorized along 3 key dimensions; procurer demand constraints, fuel supply risk & execution delays.
Procurer Demand Constraints…
Growth in energy demand has not kept pace with the rise in supply. the poor financial health of DISCOMs has been a major bottleneck to increase demand for electricity. With pending liabilities, DISCOMs have refrained from committing to long term PPAs. Most DISCOMs are burdened by debt overhangs which have only been growing since 2011. DISCOM debt has grown at an alarming CAGR of 18%, to reach a total of INR 430 thousand Cr. 85% of DISCOMs have a credit rating of B+ or less , impacting their cost of borrowing. Issues of high AT&C losses, insufficient tariff hikes & low subsidy collections from Govt. continue to be rampant, ruining profitability. As a result only 14 GW of PPAs were announced in the period b/w 2012-16 . This disproportionate capacity addition in the sector has created a situation of artificial demand scarcity. Out of 66 Pvt. commissioned plants in 2016, 15% did not have any PPAs. A number of power generation companies without capacity locked in PPAs have been exposed to the volatile prices of the short term market. This has been accompanied by a decline in the utilization of the coal fired power plants across the board. Although UDAY has improved the financial situation for DISCOMs by reducing their interest cost burden & AT&C losses, it is yet to drive confidence to invest in PPAs. With limited PPAs, prospects of future investment in the sector seem bleak with many of the existing power plants without PPAs now becoming stranded assets. There however is no shortage of demand for power. A bottom-up, back-of-the-envelope analysis reveals the existence of sig. latent demand. We are yet to achieve our goal of 100% electrification. Nearly 6 Cr. rural households & many urban households are still not connected to the grid & power supply in several parts of the country is limited to only a few hours a day. Accounting for the potential of increased per capita consumption in rural households with improved access to electricity & the consumption of subsidized consumers like farmers who are not connected to the grid, there is an est. latent demand for ~90 BU. After considering T&D losses & average specific generation (GWh/GW), the total latent demand is almost 29 GW3-~9% of the installed base of the country. A clear business case exists for latent demand not converted into PPAs due to the weak financials of DISCOMs. To further add to the woes of coal-based generation, increasingly stringent RPO/RGO obligations imposed by the Govt. have brought the sector in direct competition with renewable generation. Not only do these RPO obligations impose an additional financial burden on DISCOMs, they also further dis-incentivize investment in conventional generation.
Fuel Supply Risk…
Pvt. Players face 2 major sources of Supply risk: Availability of coal; Landed cost of coal to generating stations; Pvt. Players struggle to source fuel for their plants given the Govt. monopoly on coal supply. No new LOAs have been given to IPPs over the last few years. Existing LOAs are also converted to FSAs only if the IPP has a long term PPA in place.
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Given the current demand situation with DISCOMs, this creates a vicious cycle. This also inevitably creates generation capacity which does not have a stable source of domestic fuel (owing to the uncertainty associated with coal auctions) & often with no or limited access to imported coal markets (due to the location of the plant making imported coal unviable). While pithead prices for domestic coal are below those for imported coal prices on an absolute basis, an interesting trend is observed when current prices are indexed to their 2011 levels. With a bulk of the plants in the country operating on a Cost-plus model & primarily firing domestic coal for generation, this increase in prices has inevitably been passed on the end customer. However, an analysis of fuel costs suggests sig. potential to bring down the costs to the end customer through improvements to coal mining efficiency & Govt. policy interventions.
Mine Labour Productivity…
Although globally Coal India is among the lowest cost producers of coal in the world (driven by low strip ratios), processing costs & labour productivity present sig. potential for cost reduction, while maintaining CIL’s margins. Processing costs in Coal India are of the order of ~$16 / MT while best-in-class mines with similar strip ratios (especially in the US) incur processing costs of the order of ~$10 / MT or INR 650 / MT. Nearly 50% of these processing costs for Coal India are Employee costs. Benchmarking the productivity of labour, Coal India’s average output per man shift (a measure of productivity) was 6.2T for FY15 vs. the global average of more than 15 T/ man shift basis data from the World Coal Association. Thus, notwithstanding the lower cost of labour in the country, there is sig. potential to improve productivity through investments in capital equip.. In addition, given that the strip ratio of Indian mines are projected to increase over the next few years, sig. productivity gains would be required to offset the increased processing costs. Inefficiencies in the system have customarily been passed on to the end customer. Improving processing costs can however translate into savings of INR ~300 / MT for end customers while maintaining margins for Coal India.
Cross-subsidy of Renewables…
A flat indirect tax (“Clean energy cess”) is charged by the Govt. on all coal sold to power plants in a bid to promote “cleaner” renewable power. This Cess was introduced in the year 2010 at an effective rate of INR 50/ MT of coal. However, over the past few years, this cess has increased nearly eight-fold to its present rate of INR 400/MT. This steep increase has eroded the profitability of competitively bid plants while adding to the burden of consumers in case of cost-plus/ regulated assets. While serving the Govt. objective of dis-incentivizing coal as a fuel, the cess has also artificially brought renewables to parity with conventional generation. It is est. that the most recent hike in the clean energy cess from INR 200 / MT to INR 400/MT in FY16 has increased power tariffs by 10-12 paisa/ unit.
Inefficient Rail Transport…
Typically, freight constitutes 20-30% of the total landed cost of coal for Thermal Plants. A bulk of domestic coal in India is transported using the railways. Consequently, coal freight is the largest source of revenue for the ||www.electricalmirror.net||
ELECTRICAL MIR ROR || JULY 2018 || 41
Indian Railways, accounting for ~33% of their total revenue. However, the freight charges in India are among the highest in the world. For instance, a comparison of indexed freights suggests that rail freight has increased by ~50% over the last 5 years while in the same period sea freight has fallen by the same amount. The system is plagued by multiple inefficiencies: Inadequate network: Both freight & passenger trains share the same track capacity. Pricing policy: Railways hiked freight rates for coal transport b/w 200-700 KM by 8-14% while reducing freight rates by 4-13% for transport of coal >700 KM. This incentivizes less efficient plants located far from coal sources while dis-incentivizing plants with lower coal logistics costs. While it works for existing plants, this may become a challenge for new generation capacity set-up. The inefficiency of the railway system in India: The Indian Railways employs 1.3 mn people for a network spanning 65,000 km vs. the US railway system requiring only 44,000 people for a comparable length of track. There are innumerable delays in the execution of projects e.g., for track addition, rolling stock upgradation; Low Speed of Freight Trains: Trains operate at an average speed of about 20-24 km / hr. vs. a benchmark of 60 km / hr. Cross-subsidy of passenger business: Around 30% of railway commercial freight charges are utilized to subsidize passenger fares In order to make Thermal power more competitive, there is a strong need for reforms to the rail freight network, including re-allocations, enhancing labour productivity & pricing optimization.
Potential to regrade supplied coal…
Another typical concern of a number of plants operating on domestic coal has been the issue of Grade slippage: where there is a gap b/w 42 || July 2018 || ELECTRICAL MIR R OR
the quality of coal invoiced & the landed quality of coal received. Grade slippage is typically of the order of 1-2 grades of coal depending on the mine from where coal was sourced & is a loss that most generators have come to accept over time. This artificially inflates the cost of coal procurement, leading to higher tariffs for the end customer. If coal mines were regraded in line with actual quality of coal supply, with stringent norms for rejection of coal shipments basis landed quality of coal (as is the norm for imported shipments), the prospective grade slippage of 1-2 Grades could be averted. This would translate into a cost savings of INR ~170 / MT of coal. The net effect of these lacunae in the supply chain has been to inflate landed coal prices sig.ly.
Network of Generating Stations…
In addition to the supply challenges discussed above, the power sector as a whole also faces structural supply issues which it hasn’t fully overcome. The distribution of generating stations across the country does not correlate to the availability of coal. In fact, a sig. fraction of the total generation of the country is in North India which neither has coal mines nor has preferential access to imported coal through deep draft ports. Major chunk of India’s 194 GW coal-based generation capacity is set up in the West (70 GW), while the East has only 29 GW of installed capacity, generated from 40 thermal plants set up in the region. This is despite the fact that the East is the leading producer of coal in the country with an annual output of almost ~283 mn MT of coal. However, North India continues to generate ~52 GW of power, with a cumulative production of only 13 MMT of coal pa. & with no access to ports. A relic of a time prior to an ||www.electricalmirror.net||
interconnected grid, the current network of plants is highly sub-optimal: these Plants located far inland / close to the point of demand, incur sig. logistics costs in transporting coal from the mine pithead / port of unloading. With a majority of these plants being “cost-plus’ regulated assets, it is the end customer that once again bears the cost of this inefficiency. What is however interesting to note is the complementary nature of Solar & Coal power. Locations with low coal availability also seem to typically have higher solar irradiation (e.g., Rajasthan). With careful planning & augmentation to the transmission capacity across the country, the blueprint for an efficient network of coal & renewable generating stations can be set up to optimize tariff costs to procurers.
To further compound the supply & demand challenges faced by developers today, a large number of projects have run into execution challenges leading to time delays & cost overruns. There has been a sig. underestimation of execution challenges by developers; projects remain stranded due to procedural delays in land acquisition.
The net impact of the demand & supply gaps has been the gradual increase in the number of stranded assets. Pvt. Participation in Indian power sector has been a story of starts & stops. A combination of slow demand growth, business environment problems, policy inaction & developer aggression has led to a rise in stranded assets in the sector. Nearly 50 GW of the total installed power capacity of India is stranded. There are over 34 stressed thermal power plants in India whose total debt exposure is around INR 1.77 lakh Cr.. In fact, after steel, NPAs in the power sector are highest, making up to 12% out of the total bad debts of India INR ~14 lakh Cr.. A total of 17 under-construction thermal power projects aggregating to a capacity of 18,420 MW were reported as stalled due to financial problems of the developers. A comparison with steel, the other major contributor to stressed assets in the country, helps identify & contrast the problems facing the Indian power sector: While demand in steel has taken a hit due to Chinese overcapacity, India’s power sector demand remains localized but has failed to grow at the expected pace; While steel prices remain strongly linked to market, PPAs have failed to provide the revenue guarantee to power plants.
Policy interventions focus on renewable sector… Over the past few years, Govt. policy has strongly supported the creation of renewable capacity. In-line with global expectations to reduce emissions, the Indian Govt. has set an ambitious target of achieving 175 GW installed RE capacity by 2022. In solar energy as well, the total installed capacity is slated to grow to 5x its 2016 value, which is even more aggressive than scenarios predicted by IEA. Consequently, policy interventions have largely focused on enabling the renewable sector. Govt. policy directly & indirectly subsidizes renewable generation, which in turn decreases the relative competitiveness of Conventional generation: RPO/ RGO obligations compel DISCOMs to procure a certain fraction of their demand from renewable sources, irrespective of where such a source would be positioned on the Merit Order for the DISCOM. No import duty is imposed on critical imports for the Solar sector: such as wafers, cells & modules. EPC projects in Solar can avail of a preferential taxation regime of 5% (even under GST) in comparison to Thermal projects where taxation on EPC projects can be as high as 18%. Renewable stations (both wind & Solar) can avail of Accelerated Depreciation for taxation purposes. DISCOMs need not pay transmission charges on inter-state transmission of solar power. In addition to direct power sales, Renewable-based generation also enjoys the benefit of sale of RE certificates. Limitations on the storage capacity for Solar & Wind power mandate the scheduling of power by a DISCOM to renewable players first, prior to scheduling the remainder to other conventional power generating stations. As a result, coal-generating stations in general effectively occupy a lower position on the merit order for DISCOMs. Clean energy cess charged on coal purchase for power consumption has doubled year-on-year since 2015: increasing the cost of Thermal power generation & cross-subsidizing renewable generation. Tripartite agreement b/w GoI, State Govt.s & RBI to support SECI has improved its credit rating, which has in turn led to the lowering of interest cost for Solar developers due to de-risking of the Solar business as a whole while support for renewable generation is critical to ensure that India meets its 2022 renewable targets, policy support is also required for conventional generation assets that would potentially be impacted by push for renewables so that both contribute simultaneously ELECTRICAL MIR ROR || JULY 2018 || 43
in ensuring the stability of the grid.
Fuel, Regulatory & Project Risksâ€Ś
Unlike Renewable sources of energy, conventional generating stations face tremendous fuel risk: both in terms of availability of supply & in terms of price. Plants based on domestic coal are over-dependent on the monopoly of Coal India for their supply while imported coal-based plants are vulnerable to sig. fuel price, regulatory & country risks. Furthermore, owing to the timelines involved in the setting up of Thermal projects (with projects taking anywhere from 2-3 years to be commissioned), these projects also face sig. project risk from change in Govt. policy. Interest & exchange rate risk also remain a concern for investors availing of debt from international markets.
in various stages of construction. With the aggressive push for renewable capacity addition, this ensures that few coal-based power plants need be set up in the country (at least till 2022). Limited opportunities hence remain for green-field investment in the sector. CEA has gone so far as to say that India does not need more coal-based capacity addition till 2022. With non-thermal capacities coming on stream over the next 5 years, existing coal based thermal power plants face the prospect of continued low utilization of their assets (with numbers as low as 48% by 2022), As a consequence, brown-field opportunities in the sector also remain limited.
Renewable Grid Parityâ€Ś
Another important threat comes from the renewables sector: from the dramatically falling costs (and consequently lower levelised tariffs) of solar energy. Solar has nearly reached tariff parity with thermal generation driven on the back of cheaper imports from China. As described earlier, these renewable resources are in direct competition (at least in the short term) for the same end customer demand. The Govt. is also planning on a dedicated Green energy corridor that prioritizes solar energy over Thermal.
Limited Investment Opportunitiesâ€Ś
Only around 86 GW of capacity addition in the next 5 years would need to come from coal power plants: a bulk of which (~50 GW) is already 44 || July 2018 || ELECTRICAL MIR R OR
2018 & the Indian power generation sector
The country’s power sector has been going through a massive transformation. The Govt. has undertaken various programmes such as the Integrated Power Development Scheme & the Deendayal Upadhyaya Gram Jyoti Yojana, & changes are already evident. India is expected to attract a substantial investment of Rs 11,55,652 Cr. in power generation sector by 2022 in setting up projects across thermal, hydro, nuclear & renewables segment. A total capacity addition of 58,384 MW from conventional sources has been foreseen consisting of 47,855 MW of coal-based power stations, 406 MW of gas-based power stations, 6,823 MW of hydropower stations & 3,300 MW of nuclear stations. In addition, the Govt. is also targeting ramping up the country’s RE capacity to 1,75,000 MW by 2022. Of this, 1,17,756 MW is expected to be set up during the period through 2022. National Electricity Plan report says that no additional fund will be required for gas-based generation capacity as the construction of these plants has been completed & could not be commissioned so far due to non-availability of domestic gas. The overall fund requisite includes Rs8,52,804 Cr. investment in projects likely to be commissioned during this period & Rs3,02,848 Cr. expenditure needed with respect to advance action for projects likely to be commissioned in the next five year period (2022-27). Of the Rs8,52,804 Cr. to be spent through 2022, Rs1,42,566 Cr. would be needed for central sector projects, Rs92,889 Cr. for state sector projects & Rs 6,17,349 Cr. for Pvt. sector projects. In this assessment, it is assumed that all the renewable projects will be implemented by Pvt. developer. The Govt. also estimates that an investment of around Rs9,56,214 Cr. will go into setting up the targeted 1,65,220 Mw generation capacity b/w 2022 & 2027. This consists of 46,420 MW of thermal projects, 12,000 MW of hydro projects, 6,800 MW of nuclear projects & 1,00,000 MW of RE projects. This estimate does not consist of investment related to advance action for projects expected to be commissioned in the next five-year period (2027-32). The need for a flexible, resilient & intelligent grid is becoming a priority for policymakers. With the future power system being requisite to deal with new challenges such as a greater incursion of RE, growth in electric vehicles, new forms of generation sources, & a considerable addition of new households to the grid, the Govt. is putting in place solutions & strategies for holistic smart grid development.
Present state of the sector…
India’s power system is the third largest power system in the world, & is complex & challenging. There is close to 335 GW of installed capacity & 275 mn customers in its network. The per capita consumption compared to world standards is very low at around 1,122 kWh. Consumption patterns are also quite diverse across different categories. In rural areas, consumption is low, while in the irrigation segment, consumption is high. Consumption in the commercial & industrial categories is varied & distributed. There are a mn circuit kilometres of grid network & an equal transformation capacity. The network includes grid lines across multiple voltages – 400 kV, 765 kV, high voltage DC lines, & now the industry is working on a 1,200 kV AC line. In 2017, India produced 1,160 billion units of electricity,
which amounted to around 4.7% growth over the previous year. If we consider the historical growth rate of around 7%, then 2017 was not such a great year. While 2018 does not appear to be much different but we can expect renewable sources, especially solar, to grow much faster. The potential for turnaround in 2018 exists in three areas. First, the finalization of PPA which will indeed be essential. Today, the biggest stress in the industry is on the low plant load factor, which has put many Pvt. sector companies at debt default risk. We expect the supply of coal to be steady in 2018; therefore, if the PPA issue is resolved, we can expect a strong turnaround in the industry, he says. Secondly, we will have to accelerate solar power generation so as to fulfill our Paris Climate Agreement goal of installing 175 GW of RE capacity by 2022. In 2017, Rs56,700 Cr.s initially allocated for renewable sector was diverted to subsidize GST losses. If the funds earmarked for RE are fully utilized in 2018, we will see a strong development towards our clean energy goals. From a tech. viewpoint, we are seeing rapid advancements in battery storage. Affordable battery storage technologies will improve the feasibility of solar power & lead to extensive adoption, he further adds. Finally, GoI’s Saubhagya scheme is likely to add 40 mn new consumers. At the same time, industrial growth is also expected to get stronger. If the PPA issue is resolved, we can expect the industry to show a healthy growth in 2018. Insufficient coal supply to thermal power plants is taking a huge toll on electricity generation. According to Coal Ministry data, Of total 495 MT, CIL has supplied 362 MT (accounting for 73%) to public sector thermal power plants from April 2017 to February 2018. On the other hand, Pvt. thermal power plants received 133 MT during these ten months, which accounts for 27% of total coal supplied to IPP’s. The supply of thermal grade coal (G11 to G12) is likely to remain in the same proportion in coming years. Moreover, the recent coal price hike will translate to 12-15 paisa/kWh & is a major setback to the IPP’s as most of the Case-1 competitive bidding PPAs do not allow pass through of increase in coal price to producers, whereas for public power plants the PPA’s are signed under Section-62 which allows the pass through of increased coal cost. In the wake of the insufficient coal availability, imported thermal coal remains the only way out to meet the rising fuel demand for power generation. However, the duty structure for thermal coal only adds to increase in imported thermal coal prices. Pre-GST Pvt. power producers were paying Rs515/tones on an assessable value of Rs5000/tonne, which includes CVD of 2% of assessable value; a green energy cess of Rs400/ tonne, & education cess of 3% on total duty component. In the case of thermal coal imported from other countries like South Africa, Australia, Columbia, etc. only basic duty has been abolished from 2.5% in pre-GST era, while other components such as CVD, green energy cess & education cess are combined under IGST of 5% of total assessable value. Thus, Pvt. power producers have to pay extra Rs131/tones on thermal coal imported from above mentioned countries, which is translated to 9 paisa/kWh. GoI has successfully implemented various initiatives such as adopting advanced technologies for power generation, bulk tendering of power projects to rapidly augment the generation capacity & supporting ELECTRICAL MIR ROR || JULY 2018 || 45
world renowned power equip. manufacturers to establish their facilities in India.” Various schemes have been introduced to boost Power generation in India & also create an optimal mix of conventional & RE sources. The revival of power sector especially the power from coal fired power plants supports the ‘Make-inIndia’ initiative & several manufacturing units were established in India. India must also focus on revamping & improving the existing power capacity in order to boost their efficiency. Efficiency can be measured at three levels i.e. economic, operational & energy efficiency. The efficiency levels can vary based on different types of thermal power plants. Setting up new power plants with supercritical & ultra-supercritical tech., instead of sub-critical tech., can help increase the efficiency of the thermal power plant from the earlier 36% to 42%. These plants should be designed to utilise imported technologies that are domestically manufactured. Secondly, of the total electricity produced by the plant, in many cases, the auxiliary power consumption of the plant is still more than 10%. One of the ways to improve the efficiency of an existing thermal power plant can be by reducing this consumption by installing latest tech. & infra.. Thirdly, the maintenance time & 46 || July 2018 || ELECTRICAL MIR R OR
volume needs to be cut down. While planning to set-up a power plant in India & evaluating the necessary tech. & equip. suppliers, it is of utmost importance to reach a fine balance b/w the initial cost & long-term durability of the plant. It has been observed that there are companies which go for lower initial investment to break-even sooner but in the longer run, partnering with a reliable & established power equip. manufacturer can result in initial high investment but it would eventually even out in the long run due to its durability & stability. India’s energy landscape requires a complete Engineering, Manufacturing, Procurement, Construction & Services (EMPCS) solutions for power plants under one roof. This will not only brings down the turnaround time, but also ensure complete compatibility of all systems operating within a grid, he further adds. The country is likely to fall short of its total power capacity addition target of 13171.15 Mw for 2017-18. At the end of December 2017, only 4765 Mw fresh capacity has been added. Annual report of the Union power ministry presents a depressing trend for power capacity addition in this financial year, especially for thermal power. Of the targeted 11366.15 Mw capacity addition, only 4300 Mw fresh capacity in thermal power
has been created by the end of December. In thermal power, the performance of Central & state-owned utilities has been lackluster. It was proposed to add 4800 Mw power in the central sector but an actual achievement is only 910 Mw. Likewise, state utilities have added 660 Mw as against the intended capacity of 3546.15 Mw. Pvt. power producers have fared better, inching close to the assigned target for the financial year. At the end of December 2017, capacity addition in Pvt. thermal power was 2730 Mw compared to their targeted figure of 2940 Mw. Nuclear power has drawn a blank as far as capacity addition goes. Through this source, 500 Mw was proposed to be added in FY18. Hydropower capacity addition, too, has been tepid. Only 465 Mw in hydropower capacity has been added vis-a-vis the target of 1305 Mw. Slow capacity addition in new power is despite a robust monitoring mechanism for capacity addition programme put in place by the MoP. The monitoring is done at three levels - CEA, the ministry & Power Project Monitoring Panel. In 2016-17 too, the power capacity addition target had missed its target. New capacity of 16654.5 Mw was targeted against which actual achievement was 14209. The target slippage in last financial ||www.electricalmirror.net||
year was largely due to zero capacity addition in nuclear power where 1500 Mw fresh capacity was supposed to be added. An industry source said the plunging tariffs at solar & wind power auctions & the Govt.’s enormous thrust on meeting RE targets have slowed the pace of thermal power generation. Cost of renewable power generation now is at par or even lesser than the average cost of power production by even the most competitive producers like NTPC. Coal-fired thermal power plants across the country are under stress due to recurring hikes in coal prices & revision in railway freight charges. Prices of thermal grade coal since the last notification by CIL in Jan’18 have moved up by 15-18%. This apart, the levy of evacuation charge of Rs 50 per tonne is est. to increase the cost of generation for coal-based power plants by 13-15 paise per unit. PLFs of thermal plants, including the ones operated by NTPC, have been steadily declining over the years due to flagging demand. From 77.5% in 2009-10, the PLF has fallen to 59.88% at the end of 2016-17.
the current & latent demand. The opening up of the mining sector also promises to help in the development of the sector as a whole with the Govt. planning to allow commercial mining in future coal block auctions. Regulators: Increase the pace of resolutions, approvals, design & enforcement of incentive mechanisms etc. within the purview of the law & regulation. Generating Companies: Rework internal processes, organization structures & investments to incentivize flexibility in plant operations going ahead & efficiency to keep pace with the fall in renewable tariffs. Additionally, focus on quality control & tighter fuel management.
Industry: East promises ample opportunities to the energy intensive industries with its strategic locational advantage close to coal mines. Energy intensive industries are typically reliant on captive power generation to meet their needs. Given that power would constitute a sig. fraction of input costs for such industries, locating integrated captive generating plants & manufacturing units close to source of fuel supply would sig.ly bring down total cost of production. This calls for more industry investment & action in the Eastern region.
With the shift in the role of coal-based generation, it is imperative that a framework is developed to support Conventional Gencos in the transition while not compromising on the country’s renewable aspirations. Thus, Stakeholder-wise interventions have been recommended to ensure sustainability of coal generation in India. Fuel Suppliers: Grade of coal supplied remains of critical interest to plants: renewed efforts from Coal India to regrade mines periodically combined with stricter rejection norms at the Genco would ensure greater transparency in the supply chain & reduce grade slippage. Productivity increase: Coal India should work towards improving labour productivity in line with best-in-class mines around the world through investment in Capital equip.. CIL should support Gencos in Power generation & in unlocking efficiencies in the value chain by optimizing type of coal used. Govt.: A hands-on approach is needed from the Govt. to resolve disputes related to FSAs, PPAs or land acquisition for stranded assets. Additionally, measures need to be taken to cure ailing DISCOMs: either by privatization or by recalibrating the price of power to consumers to ensure financial viability for ailing DISCOMs. This will in turn help capture ||www.electricalmirror.net||
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Kunal Sharma Founder Green-Watt
Green-Watt Techno Solutions Pvt. Ltd.
Mr. Tone - General Manager Kingsine (L) Mr. Kunal Sharma - Founder Green-Watt (R)
reen-Watt is a group of Technocrats, working diligently to bring worldâ€™s best technology at the doorsteps of Indian Customers. We believe in providing unique solutions & backing them with highest level of application & service support (Online & Onsite).
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Q. Tell us about the Green Watt Techno solution? Green-Watt is a group of Technocrats, working diligently to bring worldâ€™s best technology at the doorsteps of Indian Customers. We believe in providing unique solutions & backing them with highest level of application & service support (Online & Onsite). Our solutions are economic and come with highest ROI (return on investment) rewards. In the past few years, Green-Watt has expanded itself to become a well recognized brand . We have been lucky to have our well-wishers in the form of customers, partners, investors & principles etc. We are dedicated to serving our relationships with our undying efforts.
Q. Tell us something about the Green Watt Kingsine Association? Green-Watt, a reputed Indian manufacturer of electrical testing and measuring equipment and Kingsine, World's leading manufacturer of protection testing solutions announce the formation of a joint venture company "Green Watt Kingsine Mfg. India Pvt. Ltd" GW-Kingsine is aimed at manufacturing state of the art automatic relay test kits & power calibrators first time in the Indian subcontinent. With this aim as ||www.electricalmirror.net||
our core essence, we wish INDIAN ECOSYSTEM to be the creator instead of just being the consumer. This coming together of two enthusiastic leading manufacturers is going to provide a much feasible and cost-effective alternative to Indian power sector customers against high-cost western players. Each GW-Kingsine product is being supported by advance service centres and is backed by the expert application support from Team Green-Watt, India
According to you which of the testing & maintenance segment has the highest potential to grow very rapidly in India?
etc. Currently our services are more focused on being single point test solution provider for Power Industry, in future we have bright plans to expand our selves in the field of renewable energy and clean technology.
Share your marketing strategy with
We are working to develop Green-Watt as a popular brand known for unique solutions with most professional support system. We also believe that a satisfied customer is the most effective marketing tool. So, our support is our marketing in true sense
Share the future plans of your company with our readers. Where do you foresee your company in near future say after 5 or 6 years?
Green-Watt currently is a company which caters to various clients by supplying them Equipments as per their needs. In the next 5 years, we see ourselves manufacturing most of these technologies in-house with a strong footprint in Clean Technology. There is immense potential that young minds in this country have and our future plan is to tap on to that potential and grow as a business leader in this area.
Test equipment are used to avoid unplanned failures. While on contrary testing equipment themselves need the shutdown to perform various tests. Any technology which is able to reduce the testing downtime is the need of the hour. On these lines, there is an immense opportunity for the products which can monitor the working assets online. Our recent product G.E.R.M (Grid Earth Resistance Monitor) is a step in this direction . In other words, time is money & vice versa.
Green Technologies is getting popular in India, so do you have any plan to include the green technologies in your portfolio?
Green-Watt is having ambitious plans to enter in the Solar Photovoltaic field. Indian Photovoltaic sector needs to grow upto 20 times from its current capacity to match the 2022 target of 1 Gigawatt. We are committed to scale our renewable offering with strategic contribution in the coming times.
Tell us about some of your major clients and the services you offer them?
We consider ourselves fortunate that our esteemed clients placed so much trust in us and showed confidence in such a short time of our establishment. Our Clientele consists of both government and private power customers. Few amongst our government customers are PGCIL, STATE ELECTRICITY BOARDS, NTPC, NHPC, NEEPCO, NPCIL etc. We have also served many reputed private power companies like ADANI, Reliance, ABB, L & T, Andritz Hydro, Jindal Saw
Mr. Shawn - Managing Director Kingsine (L) Mr. Rajiv Parashar - Managing Director Green-Watt (R) ELECTRICAL MIR ROR || JULY 2018 || 49
&M Instruments Industry Steps forward Discussing the top T&M instruments trends & key product technologies that will influence the market growth - the electronic test equipment (testgear) industry is blossoming & expanding as never before. No longer limited to the production of such mainstays as ammeters, multi-meters, ohmmeters, & voltmeters, the industry now includes a wide array of products. General Purpose Electronic T&M Instruments include Multimeters, Logic Analyzers, Signal Generators (Radio Frequency Signal Generators, Microwave Signal Generators, & Arbitrary Waveform Generators), Oscilloscopes (Digital Oscilloscopes, Analog Oscilloscopes, & PC-Based Oscilloscopes), Spectrum Analyzers, Network Analyzers, ExtensionBased, & Others. End Use Industries are Communications, Aerospace & Military/ Defense, Electronics Manufacturing, Industrial Electronics & Automotive, & Others.
Test & Measurement Equipment: Recognizing The Tremendous Potential of the Indian Market, Test and Measurement Industry is Witnessing a Significant Growth. 50 || July 2018 || ELECTRICAL MIR R OR
oday’s T&M Trends & Developments
As consumer electronics devices get smarter, their applications are migrating from the personal to the work environment. Using laptops – the same laptop – at home & in the place of work (and all points in between) is a fact of life. But are smart phones & tablets taking this to a level that could change the way in which engineers interact with their working world? Not only will people expect to control their heating, TVs & entertainment, cooking et al with their consumer devices, they will also expect to do this at work as well. Megatrends such as connected living, big data, smart cities & wearable computing will drive the future of the communications test equipment market, according to Frost & Sullivan, as software technologies & connectivity become more pervasive & a digitalized world becomes inevitable & the complexity of smart devices, networks & applications create the need for customized testing & monitoring solutions. Buying an instrument used to be straightforward, in as much you specified what you wanted & then found equipment to meet that specification. Obviously, this defines the limitations of what that instrument can be used for, but T&M companies over more recent years have introduced ways to make their instruments both more affordable & more flexible. Instruments therefore became upgradeable, or scalable, to keep initial outlay to a minimum, while maximizing the potential applications for that instrument.
Speedy Growth of low-cost, portable, & PC-driven instruments
A new market for test instruments is being created by the separation of an instrument’s processing/control & measurement modules. With the accelerated performance of personal computers, it also has proven viable to create PC-driven instruments that interface through high-speed & common platform-interface technologies. Until recently, there were several technological barriers to using PC-driven techniques for high-performance test-andmeasurement instruments. One such restriction was the inability to rapidly transfer data through a common interface platform from a sensor to a PC. Here, speeds had to be fast enough to provide adequate fidelity. Additionally, CPU processing speeds, physical memory, & random-access memory (RAM) were not up to the speed or capacity challenge of handling professional-grade instrument data output. These factors would lead to a large bottleneck as attempts were made to handle the data from the instruments. To solve many of these limitations with current hardware would require a proprietary interface technology &
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a specialized workhorse of a computer, mitigating the benefits of a PC-driven computer. In 2008, the USB-IF released USB 3.0, an update to the USB standard that enabled raw data rates of 5.0 Gbps & 900 mA of simultaneous power draw. The PC world adopted USB 3.0 as the standard for the latest computers, laptops, & even several tablet computers. The low costs & high data capabilities associated with USB have supported the emergence of a variety of different applications. Portable & low-power processing, memory, & storage have all advanced, thanks to the growing demand for portable computers & the Internet-of-Things (IoT) connected environment. Meanwhile, higherperformance & smaller, solid-state memories & CMOS microelectronics have reduced both their size & power draw on computers. In fact, many of the latest laptops/tablets have nearly desktopequivalent processing capability. The portability of heavy processing has enabled convenient on-site programing, processing, & data storage for large amounts of complex sensor data. The benefits of PC-driven test-and-measurement instruments, such as cost, portability, & rich software potential, are attractive enough to encourage early technology innovators. Yet new techniques must be used to shrink the footprint of such high-performance electronics with a limited power budget & the necessary ruggedization.
New Phase of Test
The world is increasingly software oriented, & the way we interact with devices is changing. Smartphones, set top boxes & even automobiles are now defined by their embedded software. With this evolution, we are challenged to keep up with the pace of innovation & the resulting complexities. Two decades ago, testing a phone
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meant getting a signal. Today, the design, test & production of a mobile device involve an entire ecosystem of functionality, applications & technology, resulting in a necessarily different approach to test. Building a test system to solve today’s challenges is no longer a simple problem. Instead, it requires evaluation of expanding test requirements & an architecture that can last over time. It’s important to choose a platform that can harness the technology curve while enabling abstraction & integration. Devices under test (DUTs) are moving away from single purpose, hardware centric entities with limited capability to multipurpose, software-centric entities with endless capability. Why shouldn’t your test system evolve in the same way? Making the switch from traditional instruments with vendor defined functionality to software defined architecture, allows user defined measurements & analysis in real time. You can even extend this flexibility through the deployment of algorithms to an onboard FPGA for increased instrument performance. With software defined approach, the commercial off the shelf (COTS) technology powering the latest DUTs can power your test system in the same way – optimizing your test architecture for years to come. This transition under way in mobile devices offers insight into an important trend for T&M: the power of the software centric ecosystem. Early mobile telephones were built to make calls first and, later, to send text messages, but the capabilities were defined almost completely by the vendor. Once the software on these devices was opened up, extended capabilities – ranging from music players to cameras to email – followed quickly. But the effectiveness of the transition was more than just an open software experience. Apple, &
later Google, built robust ecosystems around their products & created a community of developers for ‘apps’ that accelerated usefulness. The inherent openness & community concept, arguably, could have been fostered by traditional mobile phone providers themselves, but it was Apple & Google who shifted the focus from hardware devices to software environments, developing & deploying mobile OSs, as well as hardware to leverage them. By exposing an appropriate level of customization to users & third party developers, they succeeded in changing fundamentally the way consumers view their mobile phones. This same concept is now making an impact on T&M. Communities of developers & integrators, building on standard software platforms, are using commercial off the shelf (COTS) technology to extend the functionality of complex hardware into applications previously impossible. The level of productivity & collaboration delivered by software centric ecosystems will have a profound effect on test system design over the next three to five years.
Mobile Network Operators (MNO): Managed Services concept is in demand & trend. Most of MNO are using this trend for IT, network related services besides other non-technical services. T&M on rent is another popular trend seen in the last 2-3 years. T&M on rent is good choice for shorter projects/ requirement while buying new T&M is value for longer use. Support of multiple technologies like GSM, CDMA, WiMAX, WCDMA, LTE or WiFion single platform is in demand from industry for T&M industry. Site sharing is another trend which helps to achieve lower CAPEX & OPEX. All in one Box for production testing is another demanding product which saves space,
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time & cost during production. Field instrument is more rugged now & they support multiple interface & technology, so that engineer does not need to carry multiple instruments. LTE, Cloud Computing, WiFi off load, WLAN, Green telecom, M2M, Connected life style, research toward 5G race are top trends for 2015 The engineering T&M equipment market is expected to witness a CAGR of 24.5% by end of 2015. Some of the major market drivers include the increasing demand for electronic products & the rising need for T&M equipment for use in semiconductor devices. The high cost of production & increasing competition among vendors are some of the major challenges faced by the market. One of the emerging trends in the Global T&M Equipment market is the miniaturization of T&M equipment. Miniaturized T&M equipment are flexible & easy to use. The fast growth of the market in the Electronics industry is leading to the development of small-sized electronic devices for which miniaturized T&M equipment are required. For instance, the T&M equipment used in consumer electronics & other minute components need to be very small in size. Hence, the vendors are moving toward the trend of miniaturization. The Indian growth story is giving new dimensions to every allied segment requirements. The Telecom, Defence, Automotive, Electronics Manufacturing, Aerospace, Consumer Electronics, contractmanufacturing, R&D, etc. have seen increased allocations in the area of product design / testing / Quality of Service improvement. T&M is a derivative market capitalizing on success of above & plays an important role in every phase of the product life cycle. One of the key beneficiaries of the growth in the Indian industry is Education sector that needs to adapt to new technologies & brace themselves for the next level. These all have resulted in the spurt in requirements for T&M instruments. Speaking on developments in the industry, there is vast impact of technological changes in T&M instruments by virtue of size, display technology, resolution, measuring frequencies & other features under test/ measurement. Integration of more & more test / measurement capabilities in single unit to simplify test process is outcome of such advancement. Advancement in digital convergence has made it 54 || July 2018 || ELECTRICAL MIR R OR
possible to monitor & control T&M instruments remotely too. Technological advancement in every related feature shall have an impact on this industry. We need to have close watch on future trends & brace ourselves with frequent Changes. We feel the thrust on digital convergence would have larger impact on future T&M products.
Rental â€“ An Attractive Alternative to keep pace with Latest Demand
Test equipment rental is now seeing considerable traction across India, given the rapid acceleration of the technology sector here. As a result we see a lot of potential for further growth during 2015. Next generation technologies are emerging rapidly & new industry standards are being adopted. This means that key test requirements are continuing to evolve. With everything in a constant state of flux, there is a risk that purchased equipment will quickly become outdated & effectively made redundant. Rental therefore presents an attractive alternative to direct purchase, as the customer is not tied down to any item of equipment long term â€“ they can change it as their test requirements change. Highlighting trends â€“Deployment of Fibre to the Home (FTTH) is becoming more widespread across Europe & here in India the fibre market is also growing at pace. In response to this we are investing heavily in advanced optical equipment, such as OTDRs, so that we can meet the needs of our customer base as this particular market develops further. In addition, the rollout of next generation mobile networks is calling for employment of new types of instrumentation. For example, GPS antenna alignment tools are becoming a key part of mobile site installation. Through this operators can ensure there are no holes in network coverage, around the borders between cells, due to antennas being badly positioned. This means that network quality is upheld & prevents drop calls occurring that will frustrate subscribers. Speaking on key drivers, the principle driver that we see characterizing the current Indian market is demand for higher quality equipment. People are becoming more aware that the test hardware they use must be serviced & recalibrated on a regular basis. They are moving away from older, less well looked after equipment & looking to gain access
to up to date models via rental. As well as the financial advantages that rental offers when it comes to sourcing quality equipment, there are logistical advantages too. Procedures in place so that equipment is available to cover the items being repaired, thereby safeguarding against loss of revenue through equipment downtime. In India the need to get sophisticated test equipment from a reliable & dependable source is greater now than ever. As a result rental companies that have good quality equipment, flexible rental options & an expansive portfolio of products will be well positioned to capitalize on the opportunities that lie ahead in the coming year. Government push for Make in India, new manufacturing establishment (SEZ), new spectrum auction, broadband for all, Information highways (building backbone network for high speed data usages), Upgradation of existing telecom network & roll out of LTE technology, local application content on smartphone are key drivers. Government planning to test all imported telecom gear. EMF Radiation measurement is another demand in T&M industry. Transport technology is updating to 100G from 1G/10G. Anritsu has been providing Telecom T&M solution to Indian market since long. We were biggest Optical T&M supplies to BSNL during initial fiber deployment phase in India. Anritsu products are known for its quality & high reliability in India. Anritsu works closely with all stakeholders in telecom eco system & preferred T&M partner. According to the new market research report by IndustryARC titled the market is expected to grow from $2.5 billion in 2017 to $3.7 billion by 2023, at a CAGR of 28.6%. Asia-Pacific continues to expand its market share & growth during 2018-2023. Since China has an enhanced information communication technology supply chain, which includes semiconductors & related equipment. Therefore, a huge demand for electrical test equipment from this sector has accelerated the growth of the market. A major change has been figured out where Asia-Pacific experienced an increase of 3% in revenue in the existing market. America is still the leading market for T&M, as it holds the highest share of 45% since 2015. High frequency of manufacturing, adoption of smartphones by the people & adoption of data ||www.electricalmirror.net||
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connections are other driving factors accelerating the growth of the market in America. Selected Industrial Vertical Analysis done in the full Report: Globally, there has been a consistent rise in mobile penetration from the past decade. The telecommunications sector is one of the fastest growing industries across the globe. Trends including mobile broadband, IoT, cloud computing & Big Data management are currently propelling the growth of the telecom industry. As wireless technology play a major role in the aerospace & defense market, demand for spectrum analyzers & signal generators with higher frequencies & wider bandwidths are estimated to increase over the forecast period. Followed by semiconductor & electronics industry & the medical industry, demand for electronic devices has been increasing which is simultaneously increasing the adoption of T&M by electronics OEMs in recent years. In the automated test equipment, new energy vehicles such as electric & hybrid vehicles & so on have been estimated to strengthen their footprint, which stimulates the automotive test equipment utilization, & there is a scope of embedding these systems in automobiles, thus increasing the adoption of T&M. High manufacturing of electronics parts such as displays, server/storage equipment, electronic measurement, electron-medical equipment & others across the globe have escalated the demand for the wireless test equipment market. National Instruments debuted a 5G New Radio (NR), sub-6GHz emulator. The company assures that the technology will reduce time-to-market & lower costs of 5G testing, a new engineering till date. Increasing internet penetration, evolution of communication technologies to support high data rates, low latency rate & so on, has elevated the use of consumer electronics. To meet the growing demands of the consumer electronics, OEMs have been focusing on T&M as a part of R&D equipment to sustain in a competitive environment & to increase the market revenue that has significantly propelled the T&M market revenue in the recent past.
T&M equipment: Raising the quality bar
With increasing usage of electronics (across industries) & stringent standards for quality, 56 || July 2018 || ELECTRICAL MIR R OR
safety, & environmental, the demand for T&M (T&M) equipment is expected to rise in near future. T&M (T&M) equipment finds application in the initial design, development, verification, maintenance, & repair of various electronic & mechanical products. Electronics industry is primarily considered to the growth driver of T&M equipment in the country. T&M equipment are used for testing & measuring in electronic devices such as cellphones, digital cameras, MP3 players, solar inverters, etc. According to TechNavio, the T&M equipment market in India is expected to grow at a CAGR of 13.24% over the period 2015-2019. T&M equipment market in India can be segmented into three product segments general purpose, wireless communications & fiber optic. The current market for general-purpose T&M equipment is estimated at worth over $ 200 million. Some of the leading vendors of T&M equipment are Agilent Technologies, Anritsu, JDS Uniphase, Rohde & Schwarz & Spirent Communications. Some of the mechanical products that have the use of T&M equipment include turbines, automotive car suspensions, & aircraft propulsion systems. Depending on end-user requirements, T&M equipment use can vary from simple to complex automated devices. T&M equipment enhance the efficiency, reliability, & accuracy of electronic/ mechanical products.
Some of the major drivers for T&M equipment industry include the increasing usage of electronics (across industries); growing need to validate the performance of equipment; & stringent standards for quality, safety, & environmental. In addition, the government initiatives such as Make in India, Smart Cities, indigenizing defense equipment manufacturing, Digital India, etc. are also pushing the demand for T&M equipment. Sectors such as telecom, defense, automotive, electronics, aerospace, etc. are increasing allocations in the areas of product design, testing & quality of service improvement. T&M industry is capitalizing on this trend as it plays an important role in every phase of the product life cycle. â€œThe growing demand for bandwidth, multiple devices & increasingly complex network architecture will continue fueling growth in the T&M market. The key driving factors would be the explosion in telecom & data services
in the aerospace/defense sector. The sector may witness the emergence of specialized companies & also consolidation. This will segregate pure-play hardware & T&M system companies. According to the TechNavio report, one of the main drivers in this market is the increase in R&D investment. Advantages such as high growth potential & relatively low manufacturing costs help to bring more technological innovations through continuous R&D. Megatrends such as connected living, big data, smart cities & wearable computing are driving the communications test equipment market. In a digitalized world, the complexity of smart devices, networks & applications are creating the need for customized testing & monitoring solutions. One key trend in the market is the need for compatibility of test equipment. The need for compatibility of test equipment is the main focus of T&M equipment vendors when developing new products. The continuously evolving technology has made the product lifecycle of T&M equipment short, thereby requiring new T&M equipment to test new technology. This has created a need for T&M vendors to develop new equipment capable of testing new technologies & are also compatible with old technologies.
Telecom: The prime growth engine
Testing & measurement requirements have changed over time with the evolving standards in the telecom industry. Telecom industry has witnessed unprecedented growth in the past two decades & with an increasing subscriber base, the deployment of next-generation technologies & unprecedented data traffic, network complexity has also increased. This market is mainly driven by two considerations â€“ performance & conformance of the equipment & systems to industry standards. While performance specifications are tested as per the manufacturerâ€™s references, conformance parameters are evaluated to meet the concerned industry standards. The key growth drivers of the T&M industry are the introduction of new telecom technologies, explosion of data/video services, roll-out of 4G services, new quality of service (QoS) demands resulting from the increase in call drops, conformity to radiation specifications, spectrum management, etc. In September 2017, the Department of Telecommunications issued ||www.electricalmirror.net||
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a notification mandating equipment makers to get their products tested & certified from the agency or body authorized by the DoT before selling or importing them in India. This order comes into effect from October 1, 2018. For this, the government plans to set up labs & testing centres which will go a long way in addressing the problems faced by operators while simultaneously opening up new opportunities for T&M players in the country.
Rentals on rise
One of the key challenges faced by industry is price sensitivity of consumers buying T&M equipment. Customers in the market are very price conscious & tend to purchase low-priced T&M equipment at the expense of quality & added features. Renting equipment on rent can be a viable solution to this problem. The inherent characteristic of the T&M market is such that the evolving telecom standards render T&M equipment obsolete quickly. Next generation technologies are emerging rapidly & new industry standards are being adopted. This means that key test requirements are continuing to evolve. With everything in a constant state of flux, there is a risk that purchased equipment will quickly become outdated & effectively made redundant. Therefore, rental is an attractive alternative to direct purchase, as the customer is not tied down to any item of equipment for long time & can opt for new equipment depending upon their changing test requirements. Experts believe that T&M on rent is good option for shorter projects, while buying new T&M will be cost-effective for longer use. In the last few years, the rental market has gained traction as it allows the customer flexibility to switch to the latest equipment without incurring significant investment. As a result rental companies that have good quality equipment, flexible rental options & an expansive portfolio of products are in position to capitalize on the opportunities that lie ahead in the coming year.
Miniaturization: The game changer
Thanks to the growing demand for portable devices & connected environment due the Internet of Things (IoT) consumers are looking to adopt on-site testing. This is also leading to miniaturizing of T&M equipment. Miniaturized T&M equipment are flexible & easy to use. The fast growth of the 58 || July 2018 || ELECTRICAL MIR R OR
market in the electronics industry is leading to the development of small-sized electronic devices for which miniaturized T&M equipment are required. For instance, the T&M equipment used in consumer electronics & other minute components need to be very small in size. Hence, the vendors are moving toward the trend of miniaturization.
The rapid evolution towards higher frequencies & wider modulation bandwidth, coupled with the advent of technologies such as 5G, is creating growth opportunities for advanced T&M equipment. According to Ghosh, 5G has the potential to revolutionize many industries such as telecommunications, automotive, energy, health care & more. The technology is expected to be several times faster than 4G & would provide a backdrop for the billions of devices to be connected to the internet as it would boost M2M communication & the internet of things (IoT) market. The demand for communication T&M solutions is on a rise on account of growing bandwidth demand & introduction of next generation cellular & wireless technologies. In addition, increased R&D spending in telecommunication sector coupled with growth in mobile phone market has fueled market momentum. Advancements in digital convergence have made it possible to monitor & control T&M instruments remotely. Devices under test are moving away from single purpose, hardware centric entities with limited capability to multipurpose, software-centric entities with endless capability. T&M equipment industry is following the same track. Today, T&M market is increasingly adopting a software-defined approach towards instrumentation, which allows expeditious upgradation of solutions as per changing network & technology requirements. Over the next three to five years, the level of productivity & collaboration delivered by software centric ecosystems will have a profound effect on test system design. India Test and Measurement industry is witnessing a good growth. The key growth driver is the largest end-user in telecommunications industry, as this sector has grown both terrestrially and via satellites. The sophistication here is high and it covers a wide range of techniques and measurement
topologies. Telecommunication networks are exceedingly dependent on the functionality of electronic test and measurement instruments, as the minutest distortion of signals can result in failure to communicate. Establishment of new networks need to upgrade existing communication infrastructure are the major demand drivers for electronic test and measurement instruments market. The next large market is education and training. Engineering education is growing and so is the market. Fast obsolescence is another reason for market growth. T&M products are also needed in applications such as defense and industrial automation. The Indian GP test equipment market is characterized by a mix of indigenous participants and multinationals. Agilent Technologies India Pvt. Ltd., Rhode&Schwarz, Anritsu, Tektronix, Inc., and Fluke are some of the major multinationals in the market. Indian manufacturers such as KusamMeco, Aplab Limited, Scientech Technologies Pvt. Ltd., and Scientific Mes-Technik Pvt. Ltd. also compete in the GP market. Indian suppliers focus on low frequency products and target educational institutes, whereas large multinational foreign suppliers focus on high-frequency products targeted at research institutes and the defence segment. With continuous change in the communication and electronics market, buttressed by the wireless revolution, OEMs are under constant pressure to offer turnkey test solutions for the constantly evolving technologies. In order to cater to the evolving demands of the end-user companies, test and measurement majors focus on R&D to constantly develop newer and advanced test equipment. With all of the above trends and development and approach setting in, the test and measurement market in India is all set to boom. There are areas of interest for every player in the market, and the global as well as domestic demand for test, measurement, and instrumentation is set to grow significantly in coming years.
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ur positioning has always been focused onto supply the best- in – class quality products rather than a low-cost cheap product that may give a negatively influence to the customers. We always want our customers to “invest in the future” and that’s why we focus on quality, for us “Quality is remembered long after the price is forgotten”.
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CEO & Director Riello Power India Private Limited ||www.electricalmirror.net||
Brief us about the Riello Power India Pvt Ltd and its success story?
Riello has been in India since 1998 under the pan India distributorship model with PCI (Prime group). During an early phase, Riello penetrated the domestic Indian market by collaborating with PCI to mark a base in the Indian UPS market. In 2010, Riello India was launched under a strategic JV between Riello and PCI (Prime group). The Indian- Italian collaboration made the beginning of supplying European UPS to domestic Indian market. Among varied businesses, Riello India was an extension arm of PCI UPS business vertical. During the initial years Riello PCI imported UPS from Italy and soon realized the surge of UPS market in India. To deliver the product within specific time, Riello PCI in 2013 set up a manufacturing facility at Manesar. Over years, Riello India has grown leaps and bounds and it was in the year 2016 when Riello India decided to operate as a sole entity in the Indian market and acquired 100% stake in Riello PCI joint venture to become a fully owned subsidiary of Riello S.p.A, Italy. Following continued growth and enormous demand, Riello India shifted to a bigger capacity manufacturing facility to produce varied range of UPS from 10 KVA-800 KVA from its facility in Manesar.
What is the USP of your products?
Riello India has always focused on its key values by delivering the best - in- class high quality product that can bear the highest capacity load while at work. Every UPS manufactured is equipped with the high quality components and passes through the stringent quality control process which includes three phase inspection of every part that are installed in the UPS. Moreover, Riello has always believed in the philosophy of “Customer satisfaction while maintaining the loyalty by providing quality deliverables to customer”. The philosophy has been indebted into the system and is followed by all the Riello subsidiaries across globe. Through our uniform business approach Riello have maintained the unequivocal quality standard across subsidiaries. We understand the criticality of an application and therefore manufacture the products in accordance to the best fit of the industry and applications. Additionally, Riello India has a competitive edge over others as we supply “customized based UPS solutions” based on applications. For e.g. UPS solution supplied in data center and IT Industry may differ to the UPS supplied in manufacturing industry.
UPS serves a diversified group of customer segments such as IT, manufacturing, transportation, telecom, banks, hospital etc. Scaling the use of UPS in varied
industries may vary from different manufacturers and therefore cannot be categorized as a highest usage of UPS system to a specific industry. Adding to it, UPS has its importance in almost every sector, as irregularities of power supplies cannot be accepted in business operations.
Indian market trends for UPS
What are your upcoming products?
India UPS market is projected to grow tremendously by 2022, due to the rising of industrialization, various technological developments and increasing demand for continuous power supply from IT and BFSI sectors. Growth in the market is also anticipated on account of government policies directed towards the development of smart cities and digital India.
Riello India has been manufacturing UPS ranging from 10- 800 KVA from Manesar plant. However in year’s ahead Riello India have some strategic plans to launch solar products in India, something which Riello S.p.A is already manufacturing in its Italy plant. Additionally, Riello India is undergoing research on some advanced series of higher efficient UPS to be launched in the Indian market.
What makes you best among other in the market; what strategies do you follow as per marketing prospect?
We are the only European manufacturer in India with a varied range of UPS produced locally. Moreover, Riello India has never focused on economization of its products, but has always focused on delivering the best quality to its customers. Our positioning has always been focused onto supply the best- in – class quality products rather than a low-cost cheap product that may give a negatively influence to the customers. We always want our customers to “invest in the future” and that’s why we focus on quality, for us “Quality is remembered long after the price is forgotten”.
Tell us about your exporting products market scenario?
What message would you like to give for our readers?
We are exporting UPS to neighboring countries like Nepal, Bhutan, Bangladesh and few African countries, which are considered to be an expansion market for UPS. In near future, we see our export market share equalizes to the current market share in India.
I would like to convey that customers should buy a good quality product and avoid spending on low-cost products. Mostly, customers compare UPS as a box instead of knowing the technical components used in the UPS. Customer should treat UPS as a good partner for the business, because it is a backbone of any critical process.
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Wire & Cable Market: Technological advancements and product innovations across different segments as well as competitive pressures have been significantly changing the market
he power sector looking at investments worth Rs.15,000 lakh Cr. over the next 5 years, & cables & wires - which are the main ingredient to enable this development - will witness a huge growth trajectory. Wires are materials used to conduct power from the point where it is generated to the point where it is used. Copper or aluminum wires without insulation are usually used for grounding connection & also for high tension or high voltage transmission lines; while nichrome wire, constantan, manganin, & German silver wires are used as resistance wires in electrical equipment & appliances. All wires have resistances that oppose the unlimited flow of current & causes voltage drop resulting in the eventual heat developed in the wire. The heat developed varies according to the square of the current in amperes. There is a limit to the degree of heat that various types of wire insulation & sizes can safely withstand. They should not be allowed to reach a temperature that might cause a fire. Thus, wires & cables form an important aspect of the power sector in terms of utility & safety.
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With rapid urban development, fire safety issues are a constant concern in public spaces like malls, commercial establishments like metros & also homes. With growing importance for safety, industry experts have seen a growth of fire survival cable. This provides optimum cabling solutions in fire mishaps, by maintaining circuit integrity for temperatures upto 650 C, 750 C and/or 950 C as per application requirements. They come with annealed bare copper or annealed tinned copper conductors. Having a double layer glass mica tape for insulation, these cables also come with special linked polyethylene. The inner & outer sheath comes with Halogen Free compound with galvanized steel wire which prevents spread of fire. Unlike other wires & cables made of plastic, these cables have the capacity to sustain high temperature for a minimum period of time under fire. There has also been growth in demand for Halogen-Free Flame Retardant (HFFR) cables that have excellent temperature index, are flame resistant & have oil resistance properties. These cables have outer sheaths that are specially designed with halogen free compound which reduces emission of fumes & acid gases in the event of fire.
We observed that, when major players start building up their capacity, it brings in an element of positiveness in the market. & indeed, several wires & cables manufacturers are striving towards it. For e.g., Polycab Wires, who claims to have a 40% market share when it comes to top five players & has invested Rs 500 Cr. in the last three years. They plan to invest heavily in capacity additions for brownfield as well as greenfield units. The Co. is doubling its capacity by investing in higher capacity machinery, & adding new products
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within the next 3 years to meet growing demand from various initiatives set by the Govt’. According to Anchor’s management, these are very positive signs for increase in demand. The management also suggested that, a portion of power projects is expected to shoot the demand further. Hence, the Co. is also exploring the export market that is showcasing a good potential. Meanwhile, one of the oldest players in the Indian continent, Lapp India is leaving no stone unturned when it comes to capacity addition. The Co. has always believed in India as a manufacturing destination & this inspired them to set up their manufacturing unit in India way back in 1996. Their Bangalore unit is the second largest manufacturing unit with a capacity to manufacture about 60,000 km of multi-core cables & 78,000 km of single core wires per annum. Lapp Group’s follow up investment in its manufacturing plant in Bhopal demonstrates their intent & long term commitment to India. The unit has strengthened their base in the single core wire segment & catered efficiently to growing customer demands in India. It has an existing capacity of 1,000 km of single core cables daily, catering mainly to the building segment. The Bhopal facility also produces 36,000 km of multi-core cables resulting in an overall capacity increase of 60% in multi-core cables, which is used in major industries today, in addition to the existing 216,000 km capacity in single core wires. Meanwhile, amongst these bigwigs, a relatively smaller player-Shilpi Cable-is making their presence felt. The Co. is increasing production capacities for non-RF cables which are widely used in automotive, consumer durable & B2C segment, with a total outlay of Rs 50 Cr. this year. However, KEC International, despite having a capacity to manufacture around 3,000 km of LT cables & 250 km of HT/EHV cables per month is cautiously making moves. According to the Co.
spokesperson, at present the industry capacity is under-utilized, & for capacity addition, demand has to increase significantly to justify any new investments, if they plan to grow organically.
Future potential of cable industry is in Indian projects
Just coming to China & India, China is maturing from youngest population to old population now. They are losing some competitive advantage in manufacturing. If you take the Govt’s key projects, be it smart city, power to everyone by 2020, housing for everyone, the whole focus is on infra.. For our industry, that is the potential. Power for everyone, for e.g., holds an immense opportunity for all of us, & I do not know if we have the capacity in the short run to even deliver the kind of ambition this Govt’ is exhibiting. So, we are very hopeful about all these projects, which sound great. We also understand the kind of work that will go behind them, but they have to come on ground, they still haven’t. So we are hoping that they come & we have a great opportunity lying ahead of us. There are a couple of open debates in India, we have a lot of people & cost of labour is also very low. Whether human resources can be a substitute for tech. or tech. will be a substitute for human resources. It is the market forces that will decide. So there is, for e.g., harness business, where one would definitely like to have a lot of manpower. But in cable manufacturing, if you deploy the same, you will be out of the market. So, it doesn’t matter what you think, it is the market economics which will drive. To what extent have we adopted standardization & global benchmarks in these areas & to what extent is an unorganised structure is able to survive. Chinese products have an image of lacking in longevity, which goes against the products, but the prices are so attractive that customers are
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still willing to buy them. However, I am sure that once the customers come across frequent failures, their opinion will change. I think it will take some time, but a quality product will always have a sustainable growth in long term. Even in India the share of branded market is increasing. If you notice, demand for quality & branded products is on the rise, generally. How do you tell customers that they are good vis a vis not good? This is the brand which does that. With manufacturers doubling their capacity, the wires & cable industry is gearing up for an overhaul. The demand, which was subdued due to a drastic drop in GDP, is likely to pick up at CAGR of 16%, post 2015. The wires & cables industry has moved on from being the small industry it was 20 years back, to a very large industry over the last decade. Predominantly providing challenging opportunities in the field of manufacturing, supply chain & procurement, India as a market, is gaining importance in this industry. With cabling being a necessary component across industries, manufacturers have started producing a multitude of cables such as power cables, fire safe cables, single cores, multi cores & data cables. According to Global Industry Analysts Inc., the wires
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& cables industry is expected to generate $113.9 bn by 2015. Cut to India, where the market has showcased steady growth, & a recent research at Netscribes, expects this to touch Rs 57,200 Cr. by 2018. Ergo, the industry’s slow shift from unorganised to organised with a growth CAGR of 15% due to propelled demand for power & infra. segments, has been touted as a positive sign. The Govt’s emphasis on power sector reforms & infra. will drive it further. Moreover, initiatives by the one-year-old Govt’ on overall developments, including plans for 100 smart cities, Make in India, PPP in railways, home for all by 2022, electricity for all, focus on defense equipment’s manufacturing, & focus on renewable energy is a positive sign for increase in demand.
Wires & cables market in India has come a long way, from being a small industry to a very large one, over the past decade. The industry is mostly volume driven, although it comes with a lot of technical & quality nuances. Over the last 20 years, the industry has shifted from being an unorganised sector to an organised one, although 35% of the industry continues to be a part of the unorganised sector. The market has been
growing steadily, & according to Netscribes, it is expected to touch Rs. 572 bn by 2018. With industry growing at a CAGR of 15% as a result of growth in the power & infra. Segments, the present & the future of the sector looks promising. Wires & cables market in India has been characterized by a steady growth in demand with slight fluctuations, affected by economic turbulences. The industry is highly competitive, with a major proportion of the market being captured by few organised players. Unorganised sector is no major threat when it comes to quality for price. Though the unorganised sector is only limited to home & commercial segments, they have around 35% market share & it is here that the issues of quality & pricing come into play. In the unorganised sector, unfortunately cost is the main consideration rather than quality & certifications,’ he states. In the home & commercial segment, players suffer from a double whammy - it is not just the unorganised sector but also sub-standard Chinese imports that cause trouble & give the industry a bad reputation. But the industry is now gearing to take up the challenge head-on & is creating awareness about the need for certifications, besides educating influencers in the category. New product design & development
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is a crucial factor for the survival of a Co. In an industry that is changing fast, firms must continually revise their design & range of products. This is necessary due to continuous tech. change, development, competition & the changing preference of customers.
Safety & Regulation
Compliance with standards includes CoS adopting ISI certification marks to ensure quality of cables as per British Standards Institution (BSI). Electric defaults have been seen as the largest single reason for cause of building fires. GoI has accorded high importance to this area. Unfortunately, poor practices, improper & weak installations, undersized & inferior quality of wires in the buildings have resulted in an increasing no. of electrical accidents. Wires & cables are integral components of the electrical & power, infra., real estate & IT industries. For safety & reliability of electricity of users, the regulation standards are IS:694:2010. For fire safety in buildings, wire & cables are manufactured with flame self-extinguishing property & to prevent short circuit due to insulation if cut by rat, it is anti-rodent. Commenting on the safety & regulations for wires & cables, Copper is a vital element for wires & thus, the quality of copper plays a very important role in wires. Poor quality of copper used in the wire may result in safety hazard as well as energy loss. Thus periodic inspection & following right wiring practices is essential for electrical consultants, contractors & electricians. We encourage the electrical fraternity to adhere to the National Electrical Code & the National Building Code & use minimum 1.5 sq. mm copper wire as the minimum cross section for the light load depending on the appliance to be used for efficient use of electricity & ensuring safety.
few major refining & petrochemical projects that the Centre has lined up. There is also similar impetus in steel & cement sectors-India is expected to add an additional capacity of 50 MT of steel in the next 4-5 years. This will eventually lead to focus on supplying cables for specific applications pertaining to the industry needs. According to analysts, the cable industry in India has the potential to develop further, & they see demand in both top of the line & used machinery. Experts are of the opinion that the industry is passing through drastic changes, with frequent innovations in new customer savvy designs & quality. Furthermore, the Govt’s promise of investment in railways, ports, smart cities, renewable generation & distribution amongst others, will also help propel the demand for cables to around 16-20% annual growth over the next 5 years. Skilling India Skill development has been a priority for the Govt’, who have initiated programs through National Skill Development Corporation (NSDC) & various other agencies. Besides which, various industries & wires & cables manufacturers have also simultaneously initiated their own skill development training. In India, about 35% of wires & cables
Opportunities in offing
The opportunities & potential in any developing country is huge, as it relates to infra. development, housing, industries, etc. Today, growth expectations in India are very high, & there is also huge opportunity in developing new technologies for each segment. For e.g. the automotive industry is moving from the existing AV/AVS/AVSS family to light weight wires like T-3 & CIVUS. There is demand for fibre-optic lines in Tier III, IV, V & VI cities, as Tier I cities are wired up & Tier II are almost complete. Also, with Govt’ initiatives like Smart Cities & Digital India, the demand for these wires looks positive. This industry will continue to prosper, owing to demand from auxiliary industries & the nationwide smart-grid implementation. The slow shift towards renewable energy is also expected to provide opportunity for this industry. While the Indian electrical equipment industry is broadly segmented into the generation, equipment, transmission & distribution sectors; the wires & cable industry in India forms a quarter of the total T&D sector. Govt’ notified 14 power transmission schemes worth Rs 33,900 Cr. during 2014-15, which have all been allotted for bidding by private sector CoS. These schemes will facilitate ways for transfer of power from new hydroelectric projects in Bhutan & generation linked projects in Chhattisgarh & Odisha, among others. These include 765 kV & 400 kV transmission system strengthening schemes/ programs in the northern, western, southern & the north-eastern regions. Apart from this, the Indian market is set to offer opportunities in quite a 68 || July 2018 || ELECTRICAL MIR R OR
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available in the market are sourced from unorganised sector players that have a lackluster focus on quality & tech. This kind of parallel market is a grave concern & would be hard to tackle in the future. However, the organised market is becoming increasingly aware & is making efforts to create awareness & educate buyers on the significance of quality products. While the primary buyers for wires & cables are mainly electricians & contractors; Anchor is ensuring that they are introduced to good practices of safe wiring installation through ICAI (International Copper Association of India) seminars & handbooks, & making them aware of the importance of using good quality wires & cables. Meanwhile, KEC International Ltd.’s experience has been very positive. KEC is successfully using the SMT (self-managed team) model in their world-class Vadodara plant, under which, the Co. has recruited teenagers (around 18 years of age) from the rural hinterland in Madhya Pradesh, Gujarat & Rajasthan. We believe that there is no dearth of people in India who can be trained & developed into a capable & skilled workforce.’
The main challenges are the price rise & competition from Chinese imports. As the price of copper continues to increase, profit margins are reduced & the CoS find it difficult to compete in the international market. Furthermore, the importance of certifications like ISI & BSI are also required for better working operations. Nikhil Gupta from KEC International concurs. Nikhil has witnessed severe under-cutting in pricing in the highly competitive market. On many occasions, industry bigwigs have felt that the price prevailing in the market is simply unsustainable to deliver a quality product. While customers initially benefit with lower up-front cost, the same customers
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ultimately pays the price when deliveries are delayed, through product failures & higher total lifetime costs. Another challenge is, that although the Govt’ wants to promote ‘Make in India’, many export benefits have been taken away. Meanwhile, Anchor Electricals has another element to add. They feel that the key challenges plaguing the cable industry include tight liquidity positions, difficulty in getting the right manpower-towards manufacturing, operational & service activities, including reducing the lifetime of cables due to improper installation, which is due to lack of awareness of safe installation practices. Also, substandard products at low prices from unorganised sector, which follows unethical practices in manufacturing, are very unsafe for consumers. Tight vigilance to overcome counterfeit market with stringent control on the unorganized market for safer products is needed, Anchor feels. At the end, it is important that the Govt’ regulatory bodies expedite the decision making process to upgrade the rules & regulations for wires & cable & other industries that would result in a major industry overhaul. The focus should also be on having standards for cables with specialized applications like solar cables, ZHFR cables, RoHS & REACH compliant products, EV charging cable, fire alarm cables & communication cables.
The wires & cables segment has come into its own in India, & with plans for huge infra. projects in place & an expected positive outlook on GST, the future looks bright. India has the fifth largest power generation capacity in the world & the Govt’ has ambitious plans for infra. development. In the power sector, cables & wires are a must & with the Ministry of Power looking at an investment of Rs.15,000 lakh Cr. over the next five years, the sector will witness a huge growth trajectory.
The Indian wires & cables industry today is worth more than Rs.36,000 Cr., this is expected to grow to Rs.64,000 Cr. by 2020. The growth rate for the industry is thus in double digits, year-on-year, between 10-18%. The industry is currently growing at a CAGR of 15%. We are expecting that it will start growing at the CAGR of around 25% over the next five years. The next five-seven years will be a game changer for players in this segment.' Primary reasons for this growth expansion would be the huge Govt’ & private investments planned in segments such as smart cities, modernisation of railways, highways, digital India campaign & power for all by 2022. Thus rapid industrialization & automation, of which cable & connection tech. is the backbone of, will be the market boosters. 'The cable market is evolving where along with standard product offerings, customised solutions are now required to support customer applications. India is a challenging market & the Govt’s thrust on renewables has opened up other aspects for the segment. The market is price-sensitive & demands world class technologies at affordable pricing & as such R&D & innovation are key. Innovating to provide efficient transmission of power generated & shifting focus to the rooftop market - which is very price sensitive, is needed. Competition in the segment is fierce, especially in the retail category locally & globally, with MNCs, domestic players, the unorganised segment & cheap imports making huge inroads. But good margins can be generated by creating USPs in terms of product quality,
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innovative packaging, reducing inventory levels & creating value for the customers. In terms of renewables, Lapp, at present, caters to about 25% of the total 13 GW of installed grid-connected PV base in India. CMI too has noticed the Govt’s commitment. Another avenue opening up the segment for sustained growth is domestic manufacture, especially with 'Make in India' initiative gaining prominence. With the focus on new manufacturing facilities in India, the wire & cable industry market will definitely witness growth. & with the focus shifting to manufacturing in India, the industry wins in another way: sub-standard imports, that cause trouble & give a bad name to the industry, will possibly be replaced by more robust Indian counterparts.
The Indian market is fast catching up with developed countries in terms of their requirements for end-to-end connectivity solution as industrialization & Industry 4.0 gains momentum with more focus on 'Make in India'. The key triggers for business growth have been constant innovation & focus on R&D. Indian CoS in the industry will start focusing on R&D, innovation & product quality, now that the he industry is gearing up to take the global challenge head-on & is creating awareness about the need for certifications & educating the influencers in the category. Production today requires a tailored solution for a defined application. This includes, not only customized cables, but also a plug & play solution cable assembly solution. Thus parameters like, customization, R&D & innovation, followed by strict quality control & inspection are an emerging as aspects of real consideration in the Indian scenario.
Wire & cable market in India to expand
Industry experts forecast the global electric wire & cable in India market to expand at a CAGR of 15.61% during 2016-2020. Electric Wire &
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Cable in India Market Research Report covers the market landscape & its growth prospects over the coming years & discussion of the key vendors effective in this market. Report, by Market Reports World, contains a comprehensive market & vendor landscape in addition to a SWOT analysis of the key vendors. The study was conducted using an objective combination of primary & secondary information including inputs from key participants in the Electric Wire & Cable in India industry. Following CoS were the key players covered in the market report: Finolex Cables, KEI Industries, Havells India, & Polycab Wires. Other prominent vendors in the India market are: Cable Corporation of India, Cords Cable Industries, Apar Industries Limited, KEC International, LS Cable India, Shilpi Cable Technologies, Universal Cable, & V-Guard Industries. One of latest trends in the India market is increase in sales of HVDC power cables. HVDC underground power cables have become viable options for long distance & high-voltage safe power transfer. HVDC power systems provide a viable option for long distance bulk power delivery. European Commission has selected 43 major energy projects to build crossborder infra. to create an internal energy market & enhance the security of energy supply. For these projects, high loads of electricity would be required to be transferred from one country to another. HVDC cables are expected to become a viable option for such assignments in the future. India is likely to follow this trend during the forecast period. In addition, these HVDC light cables find preference over their AC counterparts, especially in submarine power transmission, due to their lightweight & dimensions. According to the report, one of the primary drivers in the market is growth in renewable power generation in India. A huge emphasis is given to the commercialization of renewable energy worldwide, which will create an enormous demand for electric wire & cables. This is because most of
these renewable energy resources are set up in places where proper T&D infra. is not available. Future expansion of existing networks worldwide is also expected. These expansion activities are fueled by emerging economies such as India, which are on the threshold of integrating regional grids to form a nationwide electric grid network to allow a seamless flow of electricity. All this calls for extensive T&D infra. development activities. Further, the report states that one major challenge in the market is compliance to regulations. Electrical wire & cable manufacturers in India are required to comply with various safety rules & regulations for the installation of power cable systems. These regulations are scripted & decided by regulatory bodies such as American National Standards Institute (ANSI), International Electro technical Commission (IEC), & IEEE. The rules vary depending on the circuit voltage, temperature rating, & environmental conditions.
India has the 5th largest power generation capacity in the world & the Govt’ has ambitious plans for infra. development. In the power sector, cables & wires are a must & with the MoP looking at an investment of Rs.15,000 lakh Cr. over the next five years, the sector will witness a huge growth trajectory. In all the outlays & announcements by the Govt’ (smart cities, highway projects, digital India, power sector), there is expected to be a major demand hike for wires & cables. CoS are already geared up & have increased capacities substantially to meet with these increased demands. MoP’s plans for investing Rs.15,000 lakh Cr. over the next 5 years. This is a huge opportunity for CoS and can be positioned to take advantage of the demand. The future looks bright if these proposed plans take shape. Moreover, new technologies & extensive R&D by key players is making it possible to collect more information in order to fully understand the market demand. GoI is also aiming to increase share of clean
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energy through renewables. The target of 20 GW of solar power proposed to be installed in the country has been reset by GoI, to achieve 5 times more, at 100 GW of solar power by 2022. Talking about the impact of the increased renewable targets, with such ambitious plans, huge outlay & given the investment figures we are talking about, there is expected to be a major demand hike for wires & cables. While we do not have much traction in the renewables as of now, with the focus in policy for this segment & witnessing the increasing demand in the segment, we are looking at this market closely. It is said that the sector will see investment ranging near Rs.65 lakh Cr. by 2030, including around 40% in power gear through domestic manufacturing. This is a huge figure & possibly points to the explosive growth in the sector. Future growth in this market looks very positive, as we see growth in the infra. sector of the country. Indiaâ€™s current power deficit & focus on renewables will be the biggest driver. SCTL is ready & prepared to be part of the Make in India initiatives. There are many challenges that the segment faces. Be it input costs, which can change majorly with the variation of cost of raw materials; certifications, which are not standard; & quality & R&D in the
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segment. The fluctuating price of raw material (copper, etc.) is a concern area for key players in the organised sector. It becomes an even bigger issue for players like us who are focused on the B2B segment & our bottom lines are impacted by any steep price rise in the raw materials. Global certifications & requirements are very different from that in India & it is therefore important that any Indian organization that is looking at sales abroad keeps itself updated on the global requirements. Constant quality checks, R&D, innovations, & certifications will be the way to excel in exports. Short turnaround times on customized requirements will also help the cable CoS in the global arena. Lack of focus on R&D is another challenge in any field of manufacturing activity. One has to keep abreast with any development in the industry in the country or abroad to compete with global standards & players. Additionally, India always had a very complex taxation structure which many MNCs found difficult to understand, manage & administer. It's complexity was a deterrent to do business, but the implementation of the GST is being seen to have an indirect effect on the various segments. GST impact in the B2B segment
should be revenue neutral, since they will be able to offset the GST paid through input credits. GST applicable on wires & cables at 28% is enhancing our working capital requirement for the average receivables credit period. In the long run, GST is a very positive step for the organised sector. GST will help ease all taxation with significant impact to attract investments. This change in taxation will smoothen the process of doing business in India & help India to attract FDI in core manufacturing sector. Today non-value added activities like stock transfers cause problems. By way of GST, CoS will be able to bill any customer in India as there will be no request for local VAT billing, requiring them to stock transfer the materials to the respective state & later bill it locally to the customer. This would save us about 50% of our time & effort. The process would be faster & CoS can reach our customers better. Introduction to GST will save transportation cost, transaction cost & administrative cost. It will also reduce errors, transit damages & delays.
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Vice President-Marketing Tibrewala Electronics Ltd.
EL has installed latest proven machines in the entire manufacturing process that helps us to produce highest quality capacitors. We have installed world-class automated machineries in all our 4 plants whether metallizer, spray equipments, slitting machines, winding machines, automated assembly and testing lines.
How successful have Indian manufacturers been in implementing advanced technology in Capacitors?
The customers in India majorly are not much precise on what they should expect out of a product or from the manufacturer. Mostly, an Indian customer will look for the replacement of failed product. However, the customerâ€™s practice should be to analyse why the certain product has failed to take the corrective steps. Cost and delivery gets upper pose over quality of the product that applies to Capacitors industry as well. The large number of manufacturers from unorganised sector, lack of importance in brand recognition, intense competition among manufacturers, faith in old specifications, anarchistic buying practice and ignorance of quality of products are generally some basic challenges that manufacturers are facing in Indian market. Lower price realisation with rise in manufacturing costs and minimal margin has brought the industry on edge. Burdened with problems to basic survival, the capacitor industry in India has hardly witnessed implementation of technology advancement in India.
What are the challenges faced by capacitor manufacturers; and how do you cope these hurdles?
The Capacitor Industry majorly dependent on import of crucial raw materials which constitute 50-55% of total raw material cost which are mainly imported. The dip of the value of Indian Rupee in global markets also bringing this industry to an edge. Also, the government plays an important role in imposing compliances and specification. Absence of proper legislation and regulations to enforce basic minimum quality of product put major challenges for Capacitor manufacturers in India. Further, this sector has multiple suppliers that offers tremendous bargaining power to buyers. It is very important to promote healthy competitions among manufacturers however, the overall lack
of focus on quality of Capacitor and bringing the prices down by smaller scale manufacturers defeats the entire purpose of offering a better product and also importantly, in promoting safety in electrical equipment. However, we have been consistent to ensure our manufactured Capacitor as best buy quality product to user keeping commercial activities at minimum. Challenges for India include building our own design capability. To be competitive with the world today with advancement in continuous change in technologies and innovations, the country must have its own design capabilities rather than following rest of the world. This sector also faces lack of skilled manpower in Capacitor manufacturing technologies. Lesser Gross Domestic Product (GDP) Growth rate of India had also been a major setback. However, with new market openings and the country aiming GDP rate at 8-10% in next few years may enable to implement advanced technology and innovative products for prosperous future of this industry.
What are your quality Parameters; what kind of strategies are you following to be the best in the Indian market?
In order to manufacture world class products, a company needs world class facilities. TEL is an ISO 9001:2015 certified company, whereby strong systems are in place manufacturing quality products consistently. Tibcon Capacitors are manufactured using best quality raw materials and imported MPP Film at state-of-art air-conditioned facilities. TEL has installed latest proven machines in the entire manufacturing process that helps us to produce highest quality capacitors. We have installed world class automated machineries in all our 4 plants whether metallizer, spray equipments, slitting machines, winding machines, automated assembly and testing lines. We have also gone through extensive process of licensing by the Bureau of Indian Standards. Apart from stringent in house testing, our Capacitors are tested for the highest quality standards at ERDA. Our Capacitors are CE marked and RoHS compliant confirmed by TUV India. We also have UL and CSA Certifications.
Do you see a price war vis-avis global players? Have they dominated this space till now? What are the reasons behind Chinaâ€™s lead in the export market?
Presence of domestic players from a large unorganised sector which constitute 45 percent of overall market share has encouraged the undue bargaining power of consumers that subsequently led to price erosion in India. However, branded companies and other global players would never enter into price war in Indian market. Currently, the share of Indian's export in the global market is less than 1%. The reasons for the rise of China in the export market are that Chinese manufacturers are given export subsidies, social security subsidies and access to financing rate below 6% per annum. Also, Chinese manufacturers have access to key raw materials at subsidised prices. In tenders issued by Chinese National Power Companies, other foreign companies including Indian companies cannot participate directly as they need a local presence. No such conditions exist in India. Unlike China, Indian utilities accept performance certificate issued by any utilities and do not insist on certification by reputed international agencies.
How has the growth of your company been over these years? What is your current order book position? Have you witnessed any shift in trend on year on year basis?
In past few years, the Capacitor industry has witnessed increase in demand of Capacitors especially after a push from utility companies to charge on KVA consumed. Small business establishments and also the households are showing interest in power management now a days. Few Government run programme & schemes also has given certain boost to the Capacitor industry. In the last few years, our company has grown in the range of 15-20 per cent except the financial year 2015-16. Our turnover has increased by more than 45% after financial year 2014-15.
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Indian Electronics & Hardware Industry: Fueling the Growth of Capacitors in India
ndian electronics & hardware industry overview
Electronics & hardware sector includes electronic products & components. Indian electronics & hardware market grew by 8.6% YoY. Rising consumer demand for electronics products can be attributed to growing middle class, rising disposable incomes, declining prices of electronics, & numerous GoI initiatives such as widespread broadband connectivity & e-governance programs. The electronics products segment contributed 82% to the overall market in 2015, & the rest comprised electronic components. On the supply side, the domestic manufacturing of the Indian electronics & hardware picked up in 2015, as more global & domestic CoS expand their manufacturing base in the country. During 2013–15, the domestic manufacturing of electronics has catered to an increasing share of local demand. However, local value addition is still limited as majority of manufacturing is final assembly in the country. The Indian electronics & hardware industry is expected to grow at a CAGR of 13%–16% during
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2013–18 to reach US$ 112–130 bn by 2018. However, given the local manufacturing state, the dependence on imports is likely to remain similar. Hence, the focus on growing India’s electronics manufacturing capability is increasing due to widening demand-supply gap. Although India’s electronics & hardware industry is growing at a robust rate, majority of the demand is met through imports. Around 50-60% of the demand for electronic products is fulfilled through imports, while nearly 70-80% of the electronic components market is imports-dependent. Growing reliance on imports for electronic components & rapidly increasing demand for electronic products is making it indispensable to grow & strengthen India’ s electronics manufacturing capabilities. Realizing the need, GoI is increasing its focus on this sector & aims to transform it from a predominantly consumption-driven market to the one with manufacturing capability to cater to local & overseas demand while focusing on producing high-value add electronic products. The “Make in India” campaign has given a strong impetus to the Indian electronics sector. ||www.electricalmirror.net||
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The GoI has also taken several steps toward increasing the ease of doing business in India & announced policy initiatives to foster the growth of the Indian electronics ecosystem. As a result, multiple foreign manufacturers are setting shops in the country. The electronics exports are also expected to grow with global CoS looking to invest in India for manufacturing set-ups. The electronic components industry in India was valued at US$ 13.5 bn in 2015, growing from US$ 10.8 bn in 2013 at a CAGR of 11%. The market is dominated by electromechanical components (such as PCB & connectors) which form 30% of the total demand, followed by passive components (such as resistors & capacitors) at 27%. Over the next 5 years, accelerated local manufacturing of electronics products to cater to growing domestic demand will drive the market for electronics components in India.
Indiaâ€™s Capacitor Industry
India as a country has witnessed unprecedented change in last 30 years for Electrical Power. It is a journey where expectations have moved from Power Availability to Power Quality. Capacitor has all along been part of this journey & kept upgrading & adapting based on the customer requirements & application needs. Capacitor division represents AC Capacitors popularly known as condensers, LV Power Capacitors, MV/HV Power Capacitors, LV/MV Automatic Power Factor Correction solutions, Allied products like Reactors-Thyristor Switches-Automatic Power Factor Correction Relays-Vacuum Contactor- Capacitor Duty Contactors. More advance tech. products like Active Harmonic Filters, Static VAR Compensators/ Hybrid VAR Compensators. Application specific products like High Frequency Induction Furnace Capacitors, DC capacitors & more. The use of Capacitors is long been accepted as the most practical solution to improve power factor in any electrical power system. The application of Capacitors has multiple benefits like reduction in current losses, reduction in demand, better asset management, deferred capital expenditure, enhanced voltage profile, higher quality of power, release of blocked capacity, reduced T&D losses etc. Estimated size of Capacitor industry, represented by Capacitor division for Y 2016-17 is 640 Crores including LV +MV+AHF. India has witnessed rapid electrification, Buildings & Industrial growth, need for process automation to improve efficiency & drive for energy efficiency. Electricity production has increased from 771 Bn Units (Year 2010) to 1160 Bn Units (Year 2017) with CAGR of 7%. Indian has turned from power deficit nation to power surplus nation. With advent of Solar rooftops consumers are turning into prosumers. Govt. of India through EESL distributed more than 280 Mn LED bulbs under UJALA scheme at affordable price by Dec 2017. All of above has given rise to some of the issues which were never witnessed earlier. Transients, Flicker & Harmonics are very commonly visible. Customer expectations have moved beyond Power Availability. Now they are looking forward for Power Quality. Increasing growth of HVDC transmission tech., renewable energy source like wind/ solar, evolution of charging infrastructure for electric vehicles, microgrids are expected to drive the future need for capacitors & advance solution. 80 || July 2018 || ELECTRICAL MIR R OR
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Key tech. trends in capacitors
Several experiments are currently on to design & develop capacitors that can hold the charge for a longer period. This will enable them to be used in several other fields. Some of the global trends in capacitors include the following: With the world moving towards developing energy efficient devices, super capacitors & ultra-capacitors are gaining importance. Super capacitors are expected to replace traditional storage battery as these have a lower discharge loss than traditional storage battery. Ultra-capacitors are expected to help us in engaging fuel efficient transport as well as in renewable energy. Niobium oxide (NbO) capacitors are being increasingly preferred over the conventional Aluminum electrolyte capacitors as these capacitors have stable electrical parameters like capacitance, ESR, leakage current. These features make it more suitable for being used in Audio devices, PCs, Automobiles & miniature devices like portable digital sound processors, echoes, gates, microphone amplifiers, DVD players etc.
Fixed power capacitors market
Worldwide market for Fixed Power Capacitors is expected to grow at a CAGR of roughly 2.8% over the next 5 years, will reach 2200 mn US$ in 2023, from 1870 mn US$ in 2017, according to a new GIR (Global Info Research) study. Strong moves in the fixed power capacitors markets have greatly modified the competitive landscape. ABB is now a market revenue & tech. leader. ABB & Schneider Electric have remained strong. Meanwhile, many of the leading manufacturers have investment to in China to build their Chinabased facilities. This report focuses on the Fixed Power Capacitors in global market, especially in North America, Europe & Asia-Pacific, South America, Middle East & Africa. The production of fixed power capacitors was largest in China in 2015, which accounts for 38.93% of the market. The production of Europe is a bit larger than other regions with 15.70% in 2015. United States & India had similar market with 12.51% & 13.57% resp. in 2015. In terms of consumption, China is still the largest due to the fast economic growth, but China still needs to improve tech. to meet the requirement of customers. Upstream of fixed power capacitors is polypropylene films & anode foil, 82 || July 2018 || ELECTRICAL MIR R OR
cathode foil as well as electrolytic paper. With the demand development, fixed power capacitors demand growth is bound to drive the growth of upstream raw materials & other relevant industries, & from this viewpoint, in the future cost & the price of fixed power capacitors will fluctuate with the price of raw materials. The leading manufacturers of this segment are ABB, Schneider Electric, Eaton, Nissin Electric, China XD, Siyuan, Guilin Power Capacitor, Electronicon, GE Grid Solutions, Herong Electric, New Northeast Electric, TDK, Vishay, LandT, LIFASA, Shreem Electric, Frako, RTR, ICAR, DUCATI, ZEZ, ACPES, CIRCUTOR, COMAR, Franke GMKP, AB Power System, KBR .
Capacitor manufacturing for LEDs: Fueling the growth of capacitors in India
As India shifted from conventional lighting to LED lighting, the demand for the components used in the latter also accelerated exponentially. The current market requirement for smaller sized, slimmer & longer lasting LED bulbs has put pressure on manufacturers to incorporate electronic components judiciously. It often happens that LED bulbs fail not because of the failure of LED chips, but because of the failure of associated components like capacitors. Of all the electronic components that go into the manufacturing of LED bulbs, capacitors are most vulnerable to mechanical, electrical & environmental fluctuations but are extremely reliable when used optimally. The capacitors attached to the LED drivers regulate the power used by bulbs or streetlights. The three main types of capacitors are: multi-layer ceramic chip capacitors (MLCC), electrolytic capacitors & film capacitors. MLCCs are chip capacitors with multiple layers of ceramics arranged & compressed in the form of a block, which reduces
the overall size of the board. These capacitors are not leaded & show stable performance at high temperatures, with good humidity resistance. Flexibility remains an issue, which restricts their compatibility with the latest LED bulb designs. Film capacitors contain an insulated plastic film as the dielectric. These are mostly used in the LED lighting industry because they offer design flexibility. Because of their unique healing property after any electric breakdown, they can be used for voltage dropping, interference suppression & many other applications. In addition, they are highly compatible with modern LED assembly methods that demand miniaturized & sleeker designs. The cost factor remains the main reason for the popularity of electrolytic capacitors. Their main function is to smooth the voltage going into the driver as well as the current flowing through LEDs to avoid flickering at high temperature. These capacitors cannot be deployed in LEDs that are used for high temperature applications because of the faster evaporation of the electrolyte. GoI has embraced LED lighting tech. with open arms, be it the ‘100 Smartcities’ programme, the ‘Prakash Path’ project or even the ‘Make in India’ initiative. The impact has been felt even at the micro level, where people are lighting up their homes with LED lights. So, while the Govt. is promoting this tech. by distributing these lights at highly subsidized rates, people’s awareness of its eco-friendly benefits is also on the rise & ||www.electricalmirror.net||
they are now purchasing these lights for their homes. But with so much focus on the LED lights, a key stakeholder that often goes unnoticed is the supplier of LED capacitors, in spite of the fact that a capacitor is one of the most important passive components in an LED circuit. It helps in making the lights energy efficient. Pushing the demand for capacitors: GoI has set a target for the LED industry to manufacture 200 mn lights in the next two years, which translates to 100 mn lights in each year. Each LED light requires one to two capacitors in its circuit; this clearly indicates that about 300 to 400 mn capacitors will be sold in the next two years. As a consequence of the Govt.’s target & its inclination towards LED lighting, a lot of tenders have come out, which indicate that the number of LED lights manufactured in the next two years will surpass the target by huge numbers. Charting the path towards growth: This ambitious Govt. target essentially includes 7W bulbs. However, there are two other types of lights which are also in demand these days; streetlights & downlights, in addition to the target that has been already set. There are only two types of capacitors used in these kinds of lights; metalized polyester & metalized polypropylene. So, the demand for capacitors will not only fuel the Indian manufacturing ecosystem, it will also bolster the country’s economy. These components are in constant demand & that, too, at a particular price. Since all these Govt. tenders are being given out on the basis of a bidding process, it has become impossible for LED manufacturers to import these capacitors at such a short notice. So they are willing to source the capacitors from anyone who can supply to them immediately. In fact, the target given by the Govt. has opened up an immense opportunity for every Indian manufacturer of capacitors to step up their operations. After all, the skyrocketing demand for LED capacitors in the years to come might become too much for the current prominent CoS to cater to. Inspiration for new players: This phenomenon will probably inspire a lot of new Indian CoS to manufacture capacitors. But Bali expresses his doubts, as he says that sourcing the new machines required for manufacturing these capacitors is
expensive & might take time. This can delay the setting up of a manufacturing facility to an extent that might make it difficult for these new firms to contribute to the two-year target. The current momentum in the Indian LED lighting segment indicates that the demand for these lights will only rise in the next couple of years. In fact, consumers will acquire a deeper understanding of this tech. as time passes, leading to its wider acceptance. Key to success: Amidst all the opportunities emerging in the course of the LED lighting revolution, price plays a critical role. The price of L1 lights has fallen from ₹ 314 in the first tender to ₹ 69.76 in the most recent one. So there is a constant pressure for all stakeholders in the LED lighting business to operate in sync with this price competition. One of the proven ways to deliver products at a competitive price is to manufacture in volumes, hold stocks & be ready to supply whenever there is a requirement.
Impact of the rise in demand for LEDs
With LED lights capturing the residential, industrial & outdoor space, the requirement for capacitors has increased manifold. The expected sale of LED bulbs in FY 2017-18 was about 200 mn pieces & of streetlights was about 7 mn pieces. So, the number of film capacitors required in LED bulbs was about 400 mn & in streetlights about 28 mn. According to 6Wresearch, the Indian LED lighting market is projected to grow at 26.6% between 2017-23. This makes it quite evident that the capacitor requirement in LED manufacturing is going to intensify. To tap the trend of miniaturization, the Indian LED industry has adopted two new types of capacitors; fusible metalized polypropylene & metalized polyester capacitors, which address different needs. Both are comparatively smaller in size & sold in bulk. In metalized polypropylene capacitors, a thin film of polypropylene is used as a dielectric instead of plastic. These capacitors possess high degrees of tolerance, & exhibit very little change in capacitance with time & applied voltages. That’s what makes them ideal for LED lighting applications, where a stable level of capacitance is needed. The operating life of metalized polyester capacitors is comparatively higher and, therefore, these are used in applications that handle high
peak current levels. This makes them suitable for high power LEDs. Also, at a moderate cost, these capacitors provide a higher level of efficiency than any other film capacitor. Despite high demand in the LED sector, India lags far behind in capacitor manufacturing on the global front, due to a small manufacturing base. Only a handful of CoS are engaged in manufacturing capacitors, which is not sufficient to meet the explosion in the demand for LEDs. Therefore, LED bulb makers are importing capacitors from countries like China & Taiwan. Capacitors fall under the Information Tech. Agreement; so there is zero duty on the imports. The local industry feels that allowing zero% import duty is a drastic step, as it discourages new investments in manufacturing. Plus, taking advantage of the price sensitive nature of the Indian market, China is dumping large quantities of capacitors without paying attention to the quality, which affects the quality of the end product in the long run. Underlining the benefits that Chinese capacitor manufacturers are getting. The Chinese capacitor makers are getting benefits like refund in VAT, whereas there is no provision for any kind of refunds for the local capacitor maker in India. GST rate of 18% with zero% subsidies or tax benefits is further breaking the backs of the local capacitor manufacturers. Despite the Govt. allowing 100% FDI in the electronics hardware manufacturing sector, the existing components manufacturing ecosystem remains uncompetitive, because of the absence of both capability & scale. Industry players are pinning their hopes on the upcoming electronics policy & recommend the Govt. should come up with a concrete policy that can give a boost to the dying electronic components manufacturing sector.
Importance of supercapacitors
The Indian super capacitor market has huge potential, but due to lack of general awareness about this capacitor & its benefits, this opportunity is yet to be tapped. India has developed supercapacitors for the defense & space sectors using indigenous materials. This serves as an import substitute & will assist in overcoming energy deficiencies in critical equipment. C-MET (Centre for Materials for Electronics Tech.), under the Department of Electronics & Information Tech. ELECTRICAL MIR ROR || JULY 2018 || 83
(DeitY), has developed supercapacitors under a pilot project at its Thrissur laboratory in Kerala. These capacitors have been sent for trials to state-run defense & space agencies in India as a power source for diverse applications. The global supercapacitor market is estimated to register a CAGR of around 35.4% for the period 2015-2020 & is projected to reach around US$ 4.2 bn by 2020. Consumer electronics & automotive will be the highest revenue generating segments during this period. The USA was the leader for supercapacitors in 2014, earning 43% of the overall market revenue, followed by Europe with 26%. Presently, India has under a 3% share in the global supercapacitor market. This is due to lack of local manufacturers, plus lack of application support on the technological front, apart from the cost factor. India is poised to make inroads into the US market share with its entry into the supercapacitor manufacturing domain. The supercapacitor (also known as the ultra-capacitor) market in India has witnessed a steady increase in demand. The value of India’s supercapacitor shipments reached US$ 10.70 mn in FY 2013, with a steady 20% growth in shipments, with major demand for the 1.0 Farad to 50 Farad range of supercapacitors. The demand for 1.0 Farad supercapacitors has been over 76% followed by the demand for 25 Farad & 50 Farad variants. High demand for 1.0 Farad capacitors has come
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from automation related control applications like computer boards, PLCs, etc.
India is one of the fastest growing economies in the world today. Amid growing concerns on environmental issues, global warming, air pollution, green energy as well as the Govt.’s Initiatives to make India a manufacturing hub, the Indian market is poised for an ‘explosive’ demand for supercapacitors in various sectors due to their diverse applications. Automobile sector: India has the world’s largest market for two-wheelers, the second largest for tractors & is ranked tenth for passenger cars. Owing to global green energy awareness, there is a major push for electric vehicles worldwide. India also shares this dream, & has launched the National Electric Mobility Mission Plan (NEMMP); supercapacitors are included in that draft plan. NEMMP-2020 envisages the penetration of 5 to 7 mn electric vehicles on Indian roads by 2020. Indian Railways: The Indian Railways is one of the world’s largest rail networks, with the metro trains also rapidly increasing in urban centres. With a major thrust on safety, efficiency, energy conservation, power quality & freight wagon tracking, supercapacitors are poised to play a key role in the Indian Railways. Power recuperation & dynamic brake energy storage could be major applications, & it is estimated that demand would
reach around 10 mn units of various supercapacitor modules in the next three years. Renewable energy: Wind energy sector: It is estimated that the wind power potential of India is to the tune of 1GW to 5GW. In wind turbines supercapacitor based electrical pitch control can provide the best solution. Globally, more than 14,000 installed turbines are already using supercapacitors. It is anticipated that by 2020, supercapacitor penetration will increase by 30%, for which an estimated 0.17 mn units of supercapacitors will be required. Solar energy sector: With the launch of the Jawaharlal Nehru National Solar Mission (JNNSM) in 2010, India is poised for the solar energy sector to take off. In general, solar panels are used in both modes, online as well as offline, for which supercapacitors are strong options. With a conservative forecast of 40% penetration of supercapacitors by 2020, demand in this sector is estimated to touch around 416,000 units. Various Govt.-supported programmes like SHS, MNRE’s solar lanterns, etc., are estimated to create additional demand for supercapacitors, amounting to another 10 mn units. Consumer electronics: The consumer electronics market in India is growing at an incredible pace. There are a lot of opportunities in this sector for supercapacitors, ranging from memory backup, power backup, LED flash lights, to critical
applications. With an optimistic prediction of 20% penetration by 2020, estimated demand in this sector will add up to over 37 mn units of supercapacitors of various capacities. Defence sector: India is the world’s largest importer of defense equipment. Looking at previous data, the trend indicates that 40% of the country’s defense budget is spent on weapon systems & security equipment, & in these purchases, nearly 40% is for electronics/electrical related devices. Assuming a conservative 0.5% requirement for supercapacitor energy storage in some of these systems & equipment, the estimated opportunity in this sector is more than ₹ 2 bn. Power sector: The world’s population is expected to grow by two bn people by 2050 & global energy demand is expected to roughly double during the same period. Concurrently, the power sector is on the brink of a major transformation, like the adoption & grid integration of solar &
wind energy. Unlike in the past, the grid has to accommodate producers & consumers with disparate usage patterns. The stability of the power grid depends on various actors working in concert to maintain a balance between electricity supply & demand. Traditionally, electricity assets are categorized based on their function, i.e., generation, transmission or distribution. The smart grid concept has made inroads owing to the above referred-to situation. There is demand for smart supercapacitor based storage systems, which have the ability to balance supply & demand across the segments that comprise the value chain. The new control points offered by supercapacitor based storage systems enable operators to selectively & instantly respond to fluctuations in grid inputs & outputs. Such functionality is an essential requirement of the ‘Smart cities’ concept, wherein producers & consumers are equally informed & equipped to respond to market dynamics in
real-time. The GoI has released its first list of smart cities. In the coming years, supercapacitors will be in high demand in this sector for smart grid applications, smart utility energy meter applications, etc. Medical applications: Supercapacitors have penetrated rather silently into the field of medical applications. They are used in non-lifesupport applications as well as in critical medical equipment. Supercapacitors are widely used in pumps or solenoid activation for drug delivery, & also used for heating wire to vaporize a drug for inhalation. Manufacturing obstacles: The Indian supercapacitor market has huge potential, but due to lack of general awareness about this capacitor & its benefits, this opportunity is yet to be tapped. Potential manufacturers need support to make supercapacitors, right from ensuring the successful adoption of tech.. A wider indigenous
ELECTRICAL MIR ROR || JULY 2018 || 85
manufacturing base for supercapacitors would have helped to improve the scenario for new entrants. A major hurdle on the manufacturing front is that supercapacitor tech. is in evolution mode, with a lot of improvements lined up. Till the tech. matures, it can be considered a technocrat’s wonder child, which will require special nourishment & attention. The second biggest hurdle is the unavailability of indigenous raw materials, with almost everything being imported including aluminium foil, separators, carbon & electrolytes. A lot of attention also has to be paid to standardization of machinery & equipment. Benefits: A recent report on ‘Supercapacitor Market Landscape Study’ prepared by ELCINA on behalf of the Department of Electronics & Information Tech. (DeitY), Govt. of India, states, SPEL in Pune is the only private entity that has come out with in-house development of supercapacitors in India, & has successfully conducted & demonstrated various applications for it. SPEL Pune is apparently the first manufacturer of supercapacitors in India, & it is in the process of making it commercially available for the Indian market. The manufacture of supercapacitors in India directly falls under the ‘import substitute category’. Creating our very own indigenous supercapacitor manufacturing facilities would directly result in savings on import bills, & looking at the widespread global adoption of supercapacitors, we have good opportunities
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for export also. Venturing into indigenous manufacturing of supercapacitors will certainly improve India’s balance of payments & also help in adding foreign exchange reserves. Indigenous manufacturing of supercapacitors would also create jobs for skilled manpower. This will augment the purchasing power of the common Indian, mitigate poverty & expand the consumer base for CoS. Besides, it will help in reducing brain drain. Impact on the Indian economy: It is a well-known fact that the world economy rides on the automobile sector, & the Indian scenario is no different. Worldwide, the automobile sector is being geared for changing over to electricity based mobility. Supercapacitors are vital to the successful implementation of electric mobility. India has ambitious plans to make India a manufacturing hub, increasing the contribution of the manufacturing sector to the country’s GDP. It is estimated that 300 mn people will join India’s workforce between 2010 & 2040, so each year, 10 mn jobs are needed. The thrust on the manufacturing sector is to create about 100 mn jobs by 2022. Indigenous manufacturing of supercapacitors will indirectly help in this cause. Supercapacitors are known for being environment-friendly & efficient; for their performance, reliability, fast-charging capabilities, virtually infinite charge discharge life cycles, being maintenance-free; & for having a
wide temperature range. All these properties pay in the long run, on the environment & economic fronts, besides leading to power savings, improving power quality, & also contributing towards the national fuel security policies. Farad supercapacitors are steadily making way for hybrid power storage applications such as complementing batteries, especially in two-wheeler applications. Various market reports estimate global demand for supercapacitors to grow tremendously, primarily driven by different consumer electronics & automotive applications; in order to provide backup power. Supercapacitors provide the necessary power backup required for smooth functioning of various applications such as video calling, cameras, wireless communications & GPS navigation. Other industrial handheld devices, such as GSM/ GPRS & RFID (radio-frequency identification) communication tools, LED flashlights, thermal printers, barcode scanners & GPS (global positioning system) chips, among others, can also be operated more conveniently with the help of supercapacitors to provide the required power boost. Using supercapacitors in line with batteries in these electronic devices increases the life cycle of conventional batteries by reducing the load of voltage drops. Thus, battery runtime & operational life is improved extensively by using supercapacitors. The current practice, across the globe, of upgrading
to power generation from renewable resources in order to reduce rapid depletion of natural resources is also expected to drive the market for supercapacitors in the coming years.
Capacitor is a key passive electrical component used to store energy in electrical & electronic equipment or devices. In India, the demand for electrical capacitor is expected to increase primarily due to rising demand for consumer durables, IT hardware coupled with use of electrical circuitry in diverse applications. Various types of capacitors that are available in the market include electrolytic, ceramic, film, solid double layer, carbon, dielectric & paper & plastic. Despite significant demand for capacitors, India lags behind in capacitor manufacturing due to lack of manufacturing base for the same. Although India majorly relies on imports of numerous electronics products, equipment & components from other countries, primarily China, Japan & Taiwan, the country’s Electronic System Design & Manufacturing (ESDM) market has witnessed a significant transformation over the past few years. In addition, the Govt.’s support of allowing 100% FDI in the electronics hardware manufacturing sector has provided an automatic route for increasing electronic component manufacturing, including electrical capacitors in the country. According to a recently published report by TechSci Research “India Electrical Capacitor Market Forecast & Opportunities, 2019”, the country’s electrical capacitor market is projected to grow at a CAGR of around 3.6% during 2014-19. India has grown multi folds in terms of electrical & electronic product manufacturing, & the revenue growth in these industries is the key driver for electrical capacitors market in the country, especially in southern & northern regions. Domestic CoS engaged in manufacturing capacitors in India include Deki Electronics Pvt. Ltd., Desai Electronics Pvt. Ltd. & Filcon Electronics Pvt. Ltd. These players have a strong pan-India distribution network & also export their products to other countries. However, these players are facing intense competition from low-cost imports from countries like China. Consumer Durables & IT Hardware are the major application areas for electrical capacitors & anticipated growth in ||www.electricalmirror.net||
these industries is expected to drive the electrical capacitor market in India over the next five years. The growing trend for adoption of polymer as well as hybrid capacitors is also expected to continue propelling market growth. India has to increase its share in exports of capacitors as the global demand for the device used to store electric charge is set to peak at $20.2 bn by 2018, according to a study. Germany is the largest export destination for the Indian capacitors, accounting for a share of 27.88% in India's total capacitor export valued at $96.2 mn for 2012-13, according to the position paper prepared by Electronics & Computer Software Export Promotion Council (ESC). In absolute terms, export of capacitors to Germany during 2012-13 is estimated at $31 mn. This was followed by the US with a share of 11.73%, the paper said. In value terms, export of capacitors to the US in 2012-13 is estimated at $10 mn. China, Turkey & Hong Kong are the next 3 destinations with a share of around 5% each. UAE falls under the top 15 countries of export for Indian capacitors. Considering the surge in global demand for capacitors, which is estimated to peak to $20.2 bn by 2018, India has to gear up its share in global exports, the paper said. The good news is that capacitors' world demand is growing at a healthy rate of CAGR 2.5%. This trend will continue even after 2018, which can throw up opportunities for the Indian CoS, which have the potential to considerably up the production in tune with the global demand. India's export of capacitors was valued at a miniscule $96.3 mn in 2012-13. The world demand is now for compact, portable, & complex capacitors with higher capacitance value with a low cost. Also, there is a preference for devices with better connectivity & mobility, the ESC position paper pointed out. The world demand for electronic devices would surge in the coming years. Some estimates put that the world import bill for electronics items is going to overtake that of the oil imports. By focusing on items that it has
comparative advantage such as capacitors, India can slowly move to an orbit where it can capture the growing market for electronic devices. In the last few years, the Govt. has taken steps toward creating business-friendly & more governanceoriented financial & economic environment in India. At has also taken measures to attract foreign investment. The flagship schemes, which have already gained popularity, include “Make in India”. This scheme promotes manufacturing in India to boost job creation & skill enhancement, facilitate investment, foster innovation, protect intellectual property, & build best-in-class manufacturing infrastructure. The electronics & hardware industry has taken these initiatives in a positive way & various Indian as well as global manufacturers have announced their expansion plans in the country. Nonetheless, they look up to the Govt. to play a key role in incentivizing CoS to set up facilities for designing, engineering, testing & R&D of innovative products to bring real “ Made in India” product & make a mark in the global map as the favorable manufacturing destination. In spite of certain hurdles, the LED lighting industry is expected to grow exponentially in the future; to the extent that India might become capable of even exporting LED lights to a lot of countries. According to Bali, the country could well become a manufacturing hub for LED bulbs & LED streetlights.
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Power Transmission and Distribution: T&D Losses Still a Huge Concern for India
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A debate has been raging in newspapers & on social media whether India, today, is a power surplus country or there just isn’t enough demand for electricity in the country. This follows from recent Govt. statements about the power demand & supply gap in India being at an all-time low. Graph below from a CEA report explaining India’s power demand-supply deficit shows that both the peak as well as the average power deficit is constantly reducing & stands at an all-time low at the end of last fiscal. In the past few weeks, some columnists have pointed that this situation is not so much because there is a lot of power being generated; it is because there is no demand for electricity. Critics point to load shedding & unavailability of power for retail consumers. That electricity is a critical component, which drives economic growth, is uncontested. Chronic electricity shortages have routinely led to low electricity consumption, low industrialization & farm distress over many years. The crucial “surplus test” should essentially ask one fundamental question – if a consumer today wants more electricity for industry, agriculture or personal use, can this additional delta be generated in the country. The answer to that question is an overwhelming yes. The challenge lies in matching the supply to the demand. The challenge of getting the power generated to the place of consumption demand is being used to question the existence of surplus itself, which is an incorrect measure of evaluating surplus. India’s first power plant was set up in 1897 in Darjeeling. Since then, a conventional capacity of 214 GW was built up to Mar’14. In the next three years since, under the present Govt., 60 GW or almost 28% of the 117 years’ worth of capacity addition has been topped up on the 2014 no.. % 6.0
06 0.0 Agu-13
Feb-15 Peak deficit
Power supply-demand deficit
Power generation data
One key reason of continuing generation capacity addition is the steps taken to remove the supply bottlenecks, especially on
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coal. There is no shortage of coal as compared to 2014, when two-third of the plants had critically low stocks of coal. This quarter, all but three plants in the country have sufficient coal to continue their operations. On the demand side too, the Govt. has taken several steps to address power equity & access. Of the 18,000+ villages un-electrified as of 31 March 2015, less than 4,000 villages now remain to be electrified. Every village in India will have access to power by May 2018. To top this, Govt. is now running a household electrification program – the work will not stop just at getting a power line to a village, it will ensure every household is electrified. There are 4.5 Cr. such households & the task of getting power to every household is expected to be completed by 2022. Critics routinely underestimate the demand boost from complete electrification because rural electrification is often confused with household electrification. The affordability aspect is being addressed through leveraging economies of scale under the Unnat Jyoti by Affordable LEDs for All (UJALA) program. The world’s largest LED bulb distribution program is now using the same model to supply appliances like solar pumps & fans to consumers nationally. The hitherto un-served consumer benefits from a low entry price as well as low ongoing operating costs of the appliances. The demand boost will likely follow a hockey stick pattern between 2018 & 2022, assuming both programs stay on track. The progress of both the electrification initiatives can be tracked online on the GARV app. What sits between power generation & power consumption are two other critical functions; power transmission & power distribution. The former is an area largely controlled by the central Govt., while the latter is controlled by state Govt.s & private players in select cities. Power transmission is critical because often the place of power generation & the place of power consumption are located far apart. Coal rich states or states with run of rivers can generate a lot of power, but they may not be rich enough to consume this power. As a rule of thumb, the eastern & northern states have
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more generation capacity while the western & southern states want this power. While this is a known problem, India never invested in large scale power transmission overhaul, letting regional grids work disparately. This started changing only in 2014. In the three fiscal years from March 2014, there has been more than 40% increase in transmission capacity, which has helped increase available transfer capability to southern states by 116%. India also achieved One Nation One Grid One Price parity in December 2015. With all transmission grids interconnected, a power discom could buy the cheapest available power from the power exchanges to manage its peak load. Power distribution is the trickiest area. There may be enough coal & every plant in the country may be working. There may be a customer willing to pay for the power & there may even be an option to evacuate the generated power & bring it to the state where the consumer is located. Yet the consumer may not get this power, because distribution – that last mile function - has been broken in the country since Independence. The state discoms run perennially in losses as they hardly ever pass the cost of their operations to the consumer. The reasons mainly are political & economic - these firms were never run like a business. Given their precarious finances, they hardly ever invest in upgrading the local urban & rural infra. –that’s why a fallen wire or a rain induced malfunctioning circuit, or a burnt transformer in the neighborhood are such routine instances. In some ways, these discoms are like Indian e-commerce firms – the more they sell, the more loss they make. While the e-commerce firms are funded by deep pocket venture capitalists, discoms are unfortunately funded by the Govt. & hence the taxpayer. To ensure that distribution sector is not an impediment in ensuring access to affordable & reliable power, the UDAY was launched to resolve all past, present & future problems. By making states accountable for discom finances, there has been a positive movement to bring about operational & financial efficiencies. UDAY
program has led to savings of nearly Rs 12,000 Cr. per year for discoms nationally, translating into lower prices for consumers. There are some green shoots already in states like Rajasthan, Haryana, Andhra Pradesh, Uttar Pradesh, & Bihar, where the gap between the cost of power for the discom & the revenue made by selling it is reducing. Power theft is also on a decline in many states - an endemic problem leading to shortages & wastages. Another large state, Tamil Nadu is expected to break even on discom operations by end 2018. Yet, the discom improvement is a waiting game. Firstly, they need to break even operationally. Then they need to generate sufficient free cash flows to apportion money for the all-important capital expenditure to improve both urban & rural infra.. This process is ongoing, but will still take a few years to fully reach a logical conclusion. While the central Govt. continues to support & goad states towards making rapid changes, ultimately the political will of the states is critical. Even with all these constraints, rapid strides have been made since the launch of UDAY in curing long-standing historical problems of discoms. The fact is that CAGR of power generation has been 6.4% between 2014 & 2017. This growth rate was 6.15% between 2004 & 2014. The power generation CAGR in the last 3 years is higher than those achieved in the years when the economy was growing between 8% & 9%. The current CAGR aptly captures the level of economic activity, & would perhaps have been more but for the consumption efficiency initiatives in place. Power generation is the most robust method of calculating electricity growth since electricity cannot be stored. It is also a metric that directly impacts power generators. These players are in for a long haul & they are concerned about what they can generate & sell, not what reaches the last consumer standing. India, today, has enough generation capacity to meet even a 50% demand rise – the available generation capacity will still meet this ramp up. If power sector was a simple & unitary demand-supply matching marketplace, the supply today will easily clear the demand.
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That’s the essence of power surplus – at the point of generation. Changes being made across the value chain will eventually keep right shifting (a right shift indicates an increase in the quantity supplied) this surplus to the point of consumption & this right shift is also now an accelerated process. GoI is targeting 24x7 affordable ‘power for all’ by 2022. Power Ministry is spearheading this initiative, methodically resolving problems at various points of a complex value chain. Today, there are column inches devoted to torturing the consumption data to question the generation surplus. Quite likely, these column inches will vanish as the intermediary infra. deficit continues to be bridged. A few hours of load shedding here or there do not change the fact that India, today, is a power surplus country.
Progress of Transmission Sector in the Country at the end of Nov’17 Growth in Transmission Sector 1
(All Figures in CKM)
At the end of
During 2017-18 Upto
Capacity as on
+500 KV HVDC Central
At the end of
During 2017-18 Upto
Capacity as on
66 KV and Above
1 Power Plant
2 Transmission Substation
T R A N S M I S S I O N L O S S
3 Distribution 33 KV and Below Substation
Distribution (AT&C) Loss
Classification of Technical Losses
There are many reasons for technical losses but these losses are intrinsic to power transmission/distribution system & all the countries report some percentage of technical losses. Technical Losses can further be segregated into losses due to following reasons
(All Figures in MVA/MW) 7th plan
+500 KV HVDC Converter/BTB Station Central
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Existing Legal/Regulatory & Policy Framework
There are various policy frameworks in the country which support development of new tech’s which will help in reduction of T&D losses. Some of the policy framework available in India is: Electricity Act 2003. The act provides various provisions to reduce AT&C losses in the country. Some of the provisions provided in EA 2003 are as follows: 1. Provides legal frame work for making theft of electricity a cognizable offence. 2. States to set up special courts & special police stations 3. To provide special powers to utility personnel for checking the installations. 4. Regulatory framework provides for franchising of power distribution related activities in part or full. IEGC, 2010 India Electricity Grid Code 2010, lays down the rules, guidelines & standards to be followed by various persons & participants in the system to plan, develop, maintain & operate the power system, in the most secure, reliable, economic & efficient manner, while facilitating healthy competition in the generation & supply of electricity. India Smart Grid Roadmap Smart Grid Vision & Roadmap for India aims to transform the Indian power sector into a secure, adaptive, sustainable & digitally enabled ecosystem that provides reliable & quality energy for all with active participation of stakeholders. R-APDRP GoI launched the RAPDRP with the aim to reduce AT&C losses in the country & to improve the power distribution sector of state utilities, during 11th plan period. R-APDRP Part A: Preparation of base-line data for the project area covering consumer indexing, asset mapping on GIS maps, automatic metering & data logging for all distribution transformers ||www.electricalmirror.net||
INDIAN PARTNER OF
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& feeders & SCADA / DMS system. It will also include adoption of IT applications for meter reading, billing & collection; energy accounting & auditing; MIS; redressal of consumer grievances; establishment of IT enabled consumer service centres etc. R-APDRP Part B: Renovation, modernization & strengthening of 11 kV level substations, re-conductoring of lines at 11kV level & below, load bifurcation, feeder separation, load balancing, HVDS (11kV). Aerial bunched conductoring in densely populated areas, replacement of electromagnetic energy meters with tamper proof electronics meters, installation of capacitor banks & mobile service centres etc. In exceptional cases, where sub-transmission system is weak, strengthening at 33 kV or 66 kV levels are also being undertaken. IPDS the R-APDRP scheme which was approved by the GoI for 11th Plan will be carried forwarded under the new IPDS. The objective of this scheme is: Strengthening of sub-T&D network in the urban areas; Metering of distribution transformers/feeders/consumers in the urban areas; IT enablement of distribution sector & strengthening of distribution network. NSGM GoI approved National Smart Grid Mission (NSGM) in 2015 with the objective of development of smart grid, development of micro grids, consumer engagements & training & capacity building etc. NSGM entails implementation of a smart electrical grid based on state-of-the art technology in the fields of automation, communication & IT systems that can monitor & control power flows from points of generation to points of consumption. DDUGJY GoI approved DDUGJY with the following component: Separation of agriculture & non-agriculture feeders facilitating judicious rostering of supply to agricultural & non-agricultural consumers in rural area; Strengthening & augmentation of sub-T&D infra. in rural areas; including metering of distribution transformers/ feeders/ consumers; Rural electrification, as per CCEA approval for completion of the targets laid down under RGGVY for 12th & 13th plan by carrying forward the approved outlay for RGGVY to DDUGJY Due to segregation of the feeders, the HT:LT ratio will improve
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which will result in reduction of T&D losses. NERPSIP the GoI approved the North Eastern Region Power System Improvement Project (NERPSlP) for six States (Assam, Manipur, Meghalaya, Mizoram, Tripura & Nagaland) for strengthening of the Intra State T&D System at an estimated cost of Rs.5111.33 Cr. including capacity building expenditure of Rs.89 Cr. The scheme is to be taken up under a new Central Sector Plan Scheme of MoP. The scheme is to be implemented with the assistance of World Bank loan & the budget of MoP. The project will be funded on 50:50 (World Bank loan: Gol) basis except the component of capacity building for Rs.89 Cr. for which GoI will bear entirely.
Power to all With MoP aiming to provide round the clock electricity to everyone across country, more & more T&D infra. needs to be added & existing infra. needs to be made more efficient so that losses can be reduced. With the reduction of T&D losses, less no. of generation capacity will be required as power lost during T&D will be reduced. Power Deficit The infra. requires considerable modernisation. On account of outdated infra. Power loss is very high. The power generated & transmitted is far lower than the demand due to which India faced power deficit of >5% during April 2015. If T&D losses can be reduced then this power deficit can be partially met from the power saved by the loss reduction. Loss reduction is critical for economic development & requires immediate attention by implementing new techâ€™s. High O&M cost T&D infra. in India is very old & it requires regular maintenance. Power sector suffered from problems of high technical losses due to poor maintenance of existing infra. & very little augmentation. Cost of maintaining these old infra. is very high & with the implementation of new techâ€™s, maintenance cost & power lost due to technical losses can be reduced considerably.
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AT&C Losses and Energy Consumption (State wise) 4 1 33 7 24 43
62 37 35
Dist. Loss Color 10%-15% 15%-20% 20%-25% 25%-30% >30% NA
15 State wide annual energy consumption number '000 Mn KWh (2010-11) Source: Crisil
T&D losses: A huge concern
Uninterrupted power supply is one of most the important election issues in the country. Even in the recent UP election, the issue of power supply was raised in various election rallies. States also make it a point to highlight uninterrupted power supply in their bid to promote Industry & Investment. While the aggregate power deficit in the country has decreased from 8.5% in 2011-12 to 0.7% in 2016-17, T&D losses also referred to as AT&C losses are still above 20% in 2015-16.
Power Deficit in the country & in states
At an all India level, the power deficit has significantly decreased from 8.5% in 2011-12 to 0.7% in 2016-17. Both the power generation & demand has gone up significantly during this six-year period. While the supply has increased by about 32%, the demand has gone up by around 22% during this period. In fact, India also supplied 2991 mn units of energy to Bangladesh between Apr & Nov of 2016. Among the various regions of the country, the western regionâ€™s deficit has become zero in 2016-17 from 11.4% in 2011-12. The deficit in the south is also close to zero in 2016-17 from a high of 15.5% in 2012-13. The North-East still has a deficit of 2.8% in 2016-17, the highest in the country. It is interesting to note that the states that had the most power deficit were different in 2011-12 & 2012-13. Meghalaya had a 25% deficit followed by J&K. In 2012-13, J&K had a 25% power deficit, the highest for any state. Starting 2013-14, J&K had the highest power deficit of all the states till 2016-17. There has been a remarkable improvement in the power supply for many states during these years. In 2011-12, there were 6 States/UTs with a power deficit of more than 15%. In 2012-13, this no. reduced to 5 & it further reduced to 2 in 2013-14. This again increased to 5 States/UTs in 2014-15. In 2015-16, J&K & Andaman & Nicobar Islands are the only ones with a power deficit of more than 15%. In 2016-17, these two were the only places with a deficit of more than 5%. In India, power distribution to the last mile is 96 || July 2018 || ELECTRICAL MIR R OR
done by the Discoms, popularly known as Discoms. Every state has one or more Discoms in charge of power distribution. Some states like Uttar Pradesh have 6 Discoms while some other states like Maharashtra has a single Discom. Traditionally, losses in the power sector are accounted as T&D losses. These losses are accounted as a percentage of output. T&D losses, as a measure of grid losses, have been replaced by AT&C Losses for better clarity. T&D losses together with loss in revenue collection give AT&C losses. As per info. available with the Govt., the following are the major factors responsible for AT&C losses. Technical Losses: Overloading of existing lines & substation equipment; Low HT: LT lines ratio- Higher amount of current flow in the system results in higher losses; Poor repair & maintenance of equipment; Non-installation of sufficient capacitors/reactive power equipment. Commercial Losses: Low metering/ billing/ collection efficiency; Theft, pilferage of electricity & tampering of meters; Low accountability of employees; Absence of Energy Accounting & Auditing. At an All-India level, the total losses have come down from 26.63% in 2011-12 to 21.81% in 2015-16. It is clear that the fruits of increased power generation cannot be reaped unless there is serious effort towards reducing losses. Even in 2015-16, there are 17 States/UTs with aggregate losses exceeding 25%. In other words, out of the 100 units of energy supplied, the Govt. is able to account for less than 75 units in these places. South of India is the only region in the country where every State/UT has an aggregate loss of <20%. In all other regions, there are places with losses >30% as well. In J&K, Bihar & Arunachal Pradesh, the aggregate losses are close to 50%. Power Deficti in% 2011-12
0 5 10 15 20 0 5 10 15 200 5 10 15 20 0 5 10 15 20 0 5 10 15 20 0 5 10 15 20 All India Eastern Northern North-Eastern Southern Western
Power Deficit in States in % 21.3
2016-17 0.1 0
2 10 20 Andhra Pradesh
0.5 10 Bihar
21.9 19.1 15.3 18.4
0 10 20 Karnataka
10 20 Madhya Pradesh
10 20 Jammu & Kashmir
ELECTRICAL MIR ROR || JULY 2018 || 97
Power Deficit in States in % 2011-12
2015-16 2016-17 0 0
1.7 10 Tamil Nadu
0 5 10 Mizoram
2.5 10 20 Meghalaya
0 10 Uttar Pradesh
T & D Losses in % 59.24
20 40 60 Chhattisgarh
20 40 60 Jharkhand
20 40 60 Jammu & Kasmir
20 40 60 Uttar Pradesh
Recognizing that electricity is one of the key drivers for rapid economic growth & poverty alleviation, the Govt. & the industry has set itself the target of providing electricity access to all households over the next few years. As per Govt. reports, about one third of the households do not 98 || July 2018 || ELECTRICAL MIR R OR
have access to electricity. Hence, meeting the target of providing universal access is a daunting task requiring significant addition to generation capacity & expansion of the T&D network. Restoration of the financial health of SEBs & improvement of their operating performances continue to remain the critical issue for the sector. As such, effective implementation of the restructuring package remains the key. While the power distribution space has been a loss-making business in India on an overall basis, the investments in T&D are expected to improve with privatization coming in. Going forward, it is expected that the demand will grow to cater to the continued economic growth of the country, creating more volume in the power market with strengthening of financials of Discoms. The demand is also likely to come from shift of usage from fuel to electricity in transport & agriculture sector in particular from distributed generation with solar installations. Trading of solar power is one segment that has not picked up yet due to aggressive tariffs, however, this also maybe an opportunity in future from the perspective of stronger payment security mechanism. Efficiency improvement measures in the sector especially through the IT enablement, promotion of environment-friendly renewable tech’s & energy efficiency solutions in the coming future are expected to provide business opportunities to various stakeholders.
Digitalization & tech upgradation are imperative for energy management & development of the power sector in India. It is inspiring to see that the GoI is committed to the cause of providing 24×7 affordable & environment friendly ‘Power for All’ by 2019. Innovation & ingenuity are deeply ingrained in the Indian DNA. This $2.5 trillion economy is reaping the benefits of widespread modernisation, adoption of cutting-edge tech’s, & global best practices. This upward socio-economic mobility of the Indian population ||www.electricalmirror.net||
is contributing to global economic growth. In the words of the World Bank president, Jim Yong Kim, India is one of the few bright spots on the world economic map today. What matters now is to keep the momentum going on the road to inclusive prosperity. To fuel this march, it is imperative that India focuses on its infra. For that to happen, the need for a prerequisite called ‘uninterrupted power supply’ cannot be overemphasized. India is currently the seventh largest market in the world in terms of T&D & has the highest growth rate of 7% per annum. In order to support this demand in a sustainable manner, it is required that India multiplies its transmission reliability & last-mile power delivery capacities. From developing insight into consumer behavior, customizing solutions for end users, to plugging gaps & spillage in the transmission systems by purging malpractices, the future of energy management lies in the integration of digital technology with the existing infra. & strategic usage of data across applications. What is possible through the fusion of digital with the existing power infra. is exemplified by the Northern Region transmission grid, overseen by NRLDC. It is one of the biggest transmission grids in the world, powering nine states across northern India. More than 360 mn people are dependent on it for continuous power supply. It is a complete overhaul of the power infra., where the old system was replaced with innovative hardware & software solutions built around an integrated platform. The system now features a network of Load Dispatch Centres & backup control centres. NRLDC is now able to handle complex operations more effectively & in real time, strengthening one of the biggest transmission systems in India which encompasses nine states – New Delhi, Punjab, Rajasthan, Haryana, J&K, HP, Chandigarh, UP & Kolkata. The system offers multisite functionality for the main & backup control centres, providing a seamless changeover of the entire operation from main to backup control centre, so as to avoid data loss, alarms, changeovers & blackouts. The implementation of this project has resulted in a surge of economic activity & improved living conditions with higher literacy & better access to jobs. With secure remote web login feature through internet, one can check the load shedding, forecast details & online reports. ||www.electricalmirror.net||
It is inspiring to see that the GoI is committed to the cause of providing 24×7 affordable & environment friendly ‘Power for All’ by 2019. Its schemes involve specific actions to enhance electricity access to all households & steps for strengthening the sub-T&D infra. including metering, at all levels. Ideas such as prepaid & smart meters are inventive & have the potential to boost the quality of living & kick start overall economic activities. Along with the consumer, the Govt. is also reviving the discoms. Its move to take up DISCOM debts is a step in the right direction. In order to address the demand-side issues, it envisages digital interventions like upgrading to smart meters, consumer indexing & GIS Mapping & reducing AT&C losses. Powering the effort on the transmission level is a host of cutting-edge tech’s that have made possible the continuous supply of power over large distances. For instance, the High Voltage Direct Current Transmission Systems offers an excellent opportunity to support & improve the power supply from sustainable, efficient, & reliable future grids. They not only offer economic bulk power transmission & interconnection of asynchronous AC grids, but also allow renewable energy generators like windfarms to access the grid. Similarly, the FACTS increase the reliability of AC grids. It improves power quality & transmission efficiency from generation through transmission down to the consumers. It enables better network utilisation, increased availability & reliability as well as improved network stability. Need of the hour also is grid integration solutions that allow integration of renewable energy sources with the grid & ensure bi-directional power & communication flows. It also enables the preservation of the grid data for future references by fusing IT capabilities & protecting the grid against cyber-attacks. While advanced & scalable SCADA systems further allows remote monitoring of the grids & data collection, Big Data is used to analyze the massive data generated by the smart grids. This high technology, data supported approach to grid operations & maintenance presents a tectonic shift in thinking in the energy transmission sector in India. Grid operators can now manage the performance of energy transmission assets; lower operation & maintenance cost, & reduce failure. Digital &
power electronics supported tech’s will prove to be a game changer for the energy management & power sector in India. It will help the consumer take centre stage. The smarter, more decentralized, & yet more connected power system will help in achieving objectives like security, environmental sustainability, better asset utilisation & open new frontiers for businesses. Yet, the fact remains that while energy consumption in India has doubled since the turn of the century, one in five Indians still lacks access to power from a power grid. Is predicted that over the next 25 years, the country will contribute more than any other in the rise of global energy demands. The International Energy Agency predicts that by 2040, India will have to cater to about 600 mn new electricity consumers. Clearly, while a lot is happening, we have miles to go.
A national discom…
It is a curious phenomenon. Problematic issues in the political economy seem to be governed by a peculiar circle of governance. Every few years a problem ostensibly resolved returns to haunt the political economy & the issues enveloping the issue are veritably the same. On 18 Jan’12, Dr Manmohan Singh, the then prime minister, met with industry bigwigs of the power sector. Over Rs. 2 lakh Cr. of public monies were locked in stranded projects hit by poor fuel linkage, clearances & payment dues from debt-laden state electricity boards. The projects were on RBI’s list of stressed assets as early as in December 2011. A committee was tasked with chalking out 30-day, 60-day & 90-day plans to resolve issues. A series of meetings & standoffs followed, & over 850 days later, most of the issues were pending when UPA demitted office in May’14. On 12 Feb’18, an RBI notification mandating banks to classify even a one-day delay in debt servicing as default launched the sequel of an old script. Banks & the promoters of power projects argued for forbearance by the regulator. On March 7, 2018, the Parliamentary Standing Committee on Energy unraveled the state of affairs & said, “Thousands of MWs are under severe financial stress & are on the brink of becoming NPA. This is due to fuel shortage, sub-optimal loading, untied capacities, absence of FSA & lack of PPA, etc.” In 2018, banks’ exposure to stressed projects ELECTRICAL MIR ROR || JULY 2018 || 99
stood at Rs. 4.82 lakh Cr. 34 projects with 40,130 MW generating capacity & outstanding loans of Rs. 1.74 lakh Cr. were NPAs. On June 1, 2018, the Allahabad High Court heard a petition filed by the Independent Power Producers Association of India & directed the finance ministry to hold meetings with stakeholders to resolve the issue. In June 2018, it would seem the saga of stranded power projects is back to square nay circle one. There are plants with PPAs but without fuel linkage & there are plants without either plus the sanctity of the PPA is being questioned. To be fair the Ministry of Power has taken steps since 2014. One major step was UDAY, wherein the Govt. created a mechanism to shift the high-cost debt of state electricity boards on to the state budgets & pushed for reforms that included curbing of T&D losses. The cost of debt & losses came down. Clearly it was not enough & there is only so much the Central Govt. can do; and shifting the debt off the SEB books is akin to liposuction if states continue with a high-cholesterol diet of profligacy. Can bankrupt SEBs power the promise of 24X7electricity on an unsustainable economic model? The power sector is like any businessâ€”a supply chain, a producer, a distributor & a buyer. India has an installed generating capacity of 3.43 lakh megawatt, of which 45%, or over 1.55 lakh MW, is privately owned (CEA/May2018). The data on plant load factor is revealing. Private projects are operating at 57.8% plant load factor. Can a business be viable if its capacity is not fully utilized? Can a project be viable if it pays for inputs in advance but faces uncertainty over dues? The Govt. informed Parliament that in 2016-17, 240,864.31 Mn Units or 21.81% of power generated was lost. Each% lost costs Rs. 4,146.60 Cr.; do the math to get a picture of the loss of public money. Can a business survive if it cannot extract the cost/price of a fifth of its output, if it cannot meter supply & is obliged to supply another chunk free? Einstein once said that doing
the same thing repeatedly & expecting different results was madness. He could have been talking about public policy failures in India. For two decades India has tried solving the same problem with similar solutions. This must change. The power sector requires a total overhaul. To start with, there is an urgent need to induct technology-enabled competition in the most neglected segment, which is distribution. India needs a national discom; publicly owned by a consortium of Central utilities like PGC, PFC, NTPC & REC but which can outsource to franchisees; to offer the paying consumer choice & competition to the dysfunctional SEBs. This entity, with some financial engineering, can enter into agreements with its own utilities & stranded projects (PPA portability can enable purchase of idle capacities & alleviate the problem of NPAs) & supply electricity, perhaps at a premium for reliability, to consumers using the SEBsâ€™ grid for a fee. To ensure viability the issue of costs & pricing must be re-arranged. The Electricity Act 2003 demands metering of every unit & this must be implemented. Unquestionably, democracy obliges Govt.s to nurture the weakest. Subsidies to farmers & domestic consumers could be through direct benefit transfers as it is now with LPG. Over a period of time the national discom can, through competition, propel the adoption of new technology, for instance direct current (DC) supply to homes, enabling conservation, buying renewable power from entities like townships, promoting transition of agricultural pumps from diesel/electricity to hybrid power et al. The question to ask is whether all those who want/need electricity get it. Nearly 31 mn homes are not yet electrified. The second question is whether all those who are connected get reliable power. The per capita consumption data says it all. The moot point is that no economy has progressed without fixing energy security. The aspiration for growth cannot be fulfilled without fixing the sector that will power it.
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ELECTRICAL MIR ROR || JULY 2018 || 101
O || Baldev Raj Narang || || (CEO) || || Clariant Power System Ltd. ||
What is the success story of the Clariant Power system Limited?
Clariant Power System Ltd is in operation since 1998. The unit is consistently growing and serving bulk electricity consumers in all sections of industry, commercial installations and utilities. The major factors contributing to growth are collaboration since inception with FRAKO Germany-the world leader in the field of Reactive Power and Power Quality; a large loyal and satisfied customer base; professionally qualified and motivated working team; corporate working culture etc.
Brief us about your product and services that you serve?
Electrical Power Quality and Reactive Power Management are the core fields of our specialization. Nonlinear nature of loads coupled with power factor incentives have made simplistic solutions in these fields unworkable as they lead to heavy power quality distortion. We have complete range of products like Active Filters, Thyristor based or Contactor based Passive Tuned Filters with Power Factor correction, Static Reactive Power Compensators, Shunt Reactors; Special Filters for VFDs etc. Our major strength lies in customization for each application, unique expertise in passive Tuned Filtration and judicious combination of Active and Passive contribution to solution. We design and manufacture solutions at all voltage levels. These factors make our solutions optimum and long lasting. We also conduct power quality audits.
Tell us about your international and national presence?
We are authorized by FRAKO Germany to represent them in GCC countries and we have impressive presence there. In India we are providing solutions to all major
102 || July 2018 || ELECTRICAL MIR R OR
ur major strength lies in customization for each application, unique expertise in passive Tuned Filtration and judicious combination of Active and Passive contribution to solution. We design and manufacture solutions at all voltage levels. These factors make our solutions optimum and long-lasting. We also conduct power quality audits.
industrial houses in diverse sectors and in all geographical areas. We are equipped to provide speedy after sales services through our network of own offices and that of our associates.
Thermograpy is a solution the electrical safety products, what we can accept new in this technology?
We provide Thermography studies along with Power Quality Audits. Thermography studies are essential to predict likely failures and for taking timely corrective actions. Besides the safety of products these studies help in preventing accidents and hazardous working conditions.
What is the USP of your product?
Our USP lies in specialized design based on our expertise in Passive Tuned Filtration and design based on judicious combination of Active, Passive, LT & HT components.
What is your upcoming plans where do foresee yourself in coming years?
We are adding aggressively to our manufacturing facilities, investing on Design and development activities, investing on testing infrastructure increasing manpower capabilities by trainings etc. We see ourselves as leading and most respected solution provider in our field in coming years.
Tell us something about need for Power Quality reforms and Regulations in India?
There is an urgent need for regulation all across the country asking for strict compliance to power quality standards in line with internationally accepted IEEE519 norms. This measure will bring about a revolutionary change in the power sector. There will be all round
improvement in operational efficiency, life of installations, stability of operations; huge savings etc. both for consumers as well as for utility companies. The minimum that can be done before comprehensive regulations can be brought about is to link power factor incentives with power quality requirements thus making consumers who do not meet power quality requirements ineligible for power factor incentives and for KVAH billing. The power quality situation in the country is pathetic and it will remain so till utilities come forward and enforce compliance to power quality norms. Utilities are major victims of poor power quality as it stresses their distribution network and leads to premature failure of distribution transformers and they also fail in their duty to supply clean power to consumers. The nodal agencies CEA and CERC which are required to act as facilitators and help utilities in implementing the Power Quality norms are doing precious little in this direction. Tamil Nadu took the lead and incorporated Penalties in Power Quality distortion for defaulting consumers. This was an excellent initiative and needed to be replicated in other states. However, the measure was diluted in Tamil Nadu itself by exempting majority of erring consumers who were connected to the grid at voltage levels of less than 33kV. Strangely enough the Central Electricity Authority specifically published a clarification making the CEA regulations on harmonics applicable only to consumers who were drawing power from grid at 33kV or above. Majority of consumers draw power from the grid at less than 33kV and most of them are heavily polluting the grid at these voltage levels. The CEA is said to be formulating model regulations covering all aspects of power quality including transient issues like voltage dips and voltage swells besides Harmonic distortions. Clubbing transient issues where the responsibility cannot be easily fixed with the major power quality issue of permanent nature related to Harmonics will only dilute the purpose of improving power quality. ||www.electricalmirror.net||
ELECTRICAL MIR ROR || JULY 2018 || 103
Er P.K.Pattanaik, is presently working with OPTCL as Dy. General Manager (Elect) in E & MR Division, Bhubaneswar- Odisha and associated with the Protection and Control schemes of Electrical systems. He is having 25 years of technical experience in Designing, Testing and Commissioning of Protection Control and operational Schemes, project Implementation, co-ordination, operations & maintenance of Electrical Equipments at various LT/ HT/ EHT level Grid Sub- Stations. He has also published around 70 technical papers in different national/international seminars/journals. firstname.lastname@example.org
VARIOUS CASE STUDIES ON OPERATION AND CONTROL SCHEMES FOR GRID SUB-STATION Contdâ€Ś. 1. Introduction: For the last few months, the response of the readers to the case studies on various incidents is overwhelming. Hence this month we are again choosing the write up on similar kind of studies for developing the synchronisation of practical observation to the theoretical concepts. The analysis of each incident being supported by actual observations had been described during the situation to add awareness amongst the operation, testing and commissioning engineers to know the cause of problems and be helpful for easy rectification of the problems. This can also help to develop economic schemes for the smooth running of the operation and control system in the Grid Sub-Station. 2.1: Non-operation of SPAR for a feeder Protection: At one of the 220/132KV Grid sub-station, in one of the feeder of 40 Km long of 220 Kv system was not performing the correct operation of SPAR (Single Phase Auto Reclose). Each time it was found with tripping of the system in PD( Pole discrepancy) feature. 104 || July 2018 || ELECTRICAL MIR R OR
1. The type of breaker was checked, it was of spring operated SF6 breaker. 2. This breaker was equipped with PD relay and timing was set of 800 mSec. 3. The relay used with this feature of AR scheme was checked and found with setting of Reclose dead time as 1000 sec. 4. The Auto reclose command was getting extended with the use of Auxiliary relay for the actuation of closing coil.
1. The relay was tested on availing shutdown on this feeder. 2. The setting of the PD was disabled on first attempt for proper closing extension from the relay. 3. During testing, the conditions of all possible inputs as per the scheme for the operation of the AR were checked and found in order. 4. Then in the next attempt, the PD relay was activated and tested on sending the reclose
command from the relay. 5. This time it was found with the operation of the PD rather causing the reclose of the breaker from the relay. 6. So on analysis it was found with lesser PD as compared to the reclose dead time. The setting was changed and kept with PD time as 1.2 second and AR reclose time as 1.0 sec. 7. Then when this testing was done again observed with similar tripping of PD ahead of the AR time. 8. The detail circuit was studied and found with involvement of an auxiliary relay before final arrival of closing command to the Closing coil. 9. The actuation time of this relay was tested and found with little delay of around 150mSec to 200 mSec. 10. So this relay was by-passed and command was extended individually from the system to the breaker closing coil. 11. Then on-wards it was found with correct ||www.electricalmirror.net||
acting of the AR function and closure of the breaker before PD and final setting was adopted AR reclose time = 1.0 sec, PD time 1.25 second. 2.
Analysis of the Problem:
Auto reclose feature requires the condition like healthiness of the breaker, status of the breaker and setting of the reclose time to be lesser to PD and LBB timing. In the first situation the PD was provided with the time of lesser value as 800mSec. Moreover the closing command was also not going directly to the Closing coil. In between them one auxiliary relay was remaining and causing delay of reaching the command for closing of the breaker. On testing it was observed with the delay of this auxiliary relay as around 150mSec to 200 mSec. So all settings like reclose time selection considered as 1.0 sec and PD timing was of 1.25 sec and command was send directly to closing coil by avoiding the use of auxiliary relay, the auto reclose function worked properly and AR becomes successful. 2.2: Damage of Density monitor for 145 KV breaker: At one of the 132/33 KV Grid sub-station, one of the spring operated SF6 breaker was commissioned and charged in the system successfully. But one day at around noon 14.00 Hours, the SF6 density monitor was damaged casing breakage of the monitor glass window with severe sound.
1. The type of breaker was checked, it was of spring operated SF6 breaker. 2. The density meter was equipped inside the breaker central mechanism box ( Fig 2.2.1). 3. This breaker was of gang operated and used to get operated by the common operating rod. 4. From the date of the commissioning it was reported with the complaint of the SF6 leakage. 5. So thrice the filling of the gas had been attempted. 6. But for the last attempt, the operators filled the gas little more to manage leakage to study further. This attempt had been tried during the morning time just after the rain affected day with temperature being around 20 deg centigrade. 7. But during the same day at around 14.00 hours, the density meter got damaged with breakage of the glass window of meter, producing heavy sound.
Burdon Tube Damaged Meter Fig 2.2.1 Action taken:
1. The damaged density monitor was studied and the pointer was re-fixed upon the slot to study the approximate pressure during that time. It was
3. 4. 5. 6. 7.
approximated of pressure of 9 bar more than the allowed pressure of 7.6 bar. After this incident, the breaker operations were checked for the confirmation of the availability of SF6 gas in the limb on availing shut down of the system. Both OPEN, CLOSE operation were obtained successful. For the replacement of the monitor, the valve on the individual limbs was closed. The damaged monitor was replaced by a good one and planned for the filling of the gas. But on replacement and after opening of the valve, it was found with pressure of 9.8 bar as approximated of 9 bar. This time the pressure was reduced to 7.6 bar. The breaker operation was checked and it was taken into the service successfully.
Analysis of the incident
1. The cause of breakage of the glass window was due to leakage of the SF6 gas inside the monitor at the point of burdon tube causing the expansion of the capillary for the pointer to glide upon the graduated scale. 2. As the leakage was resulting inside the monitor and SF6 pressure was more, the abnormal change of the capillary caused the breakage of the glass window.
Recommendations: So during commissioning the leakage at the Gas monitor area to be checked properly and pressure at the required temperature as per the recommendation of the OEM or in the manual has to be filled. 2.3: Discrepancies on the LBB scheme: At one of the 132/33 KV GIS Grid sub-station, LBB scheme was designed on hardware connection of wirings. But discrepancy was observed during the situation of coupling of both the busses by the use of Bus-coupler system in the network.
Observations and action taken:
1. The LBB scheme was checked independently on individual bus arrangement. 2. The simulation from the testing kit was done developing the situation of mechanical stuck of the breaker and operation of all the associated breakers connected to that bus.
3. Similarly the testing was done with the second Bus and found with the correct operation of all the associated breakers of the affected BUS. 4. But when testing was done with both of the BUS being in coupled condition by the Bus coupler system, it was observed with tripping of all the breakers of both the Busses.
ELECTRICAL MIR ROR || JULY 2018 || 105
5. Actual requirement should be the tripping of all the breakers of the associated Bus only, in which the mechanical faulty breaker remains.
Fig 2.3.2 BUS
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A-Trip B-Trip BUS BUS
6. The Double bus scheme with BUS-COUPLER being in close condition has been shown in Fig 2.3.1) with Feeder 2 and 4 in BUS-A and feeder 3 &5 in BUS-B. 7. In this circuit, as bus-coupler was connecting both the busses hence during breaker problem on B4 breaker, all the breakers irrespective of bus (All breakers B1,B2,B3,B5) were tripping. The detail hard ware ||www.electricalmirror.net||
scheme has been shown in Fig 2.3.2 that causes the actuation of common trip bus as per the selection of Bus isolators. 8. The circuit was proposed to be changed as per Fig 2.3.3 in consultation of the technical wings being involved in the scheme. 9. In this modified scheme, during the fault on B4 (The breaker being selected to Bus-A), all the breakers connected to this Bus shall be tripping along with Bus-coupler breaker B1. But the breakers on Bus-B shall not trip. 10. In this fig 2.3.3 during the fault occurrence on Bus A, the selected DC as per the Bus-A isolator on the Bus-coupler circuit shall be causing the actuation of 96-1(LBB Master relay of Feeder-1) without extension of DC to the master relay of other Bus. Similarly during the fault on the BUS-COUPLER breaker and both of the BUS isolator being in close condition all the breakers of both the breaker shall trip. 11. Now on change of the circuit, the scheme was simulated by the testing kit. 12. This time successful tripping of the involved breakers on the corresponding bus were tripped. 13. During the coupling of both the buses also, only the affected bus breakers tripped for the case of mechanical stuck of any breaker.
2.4.ZERO Insulation resistance between C-F and C-T for Transformer: At 220/132 KV Grid Substation, it was reported with the generation of objectionable gases on interval causing the intermittent tripping of Buchholtz relay. During such situation no electrical protection used to initiate.
1. This situation was causing on every 3-4 months of interval and tripping to cause on Buchholtz relay after causing alarm. 2. The gas as accumulated was taken for the testing for DGA and found with the generation of ACETYLENE gas. Generation of ACETYLENE gas indicates the burning of metal parts but non-actuation of any electrical protection was indicating that the fault is not on the active part of the winding. So each time due to the requirement of the system, the said transformer was allowed to charge and taken into the circuit for catering the load
to the system. 3. The test results as obtained after the occurrence of such incidences were also found within the limit of allowable values including Tan-delta, winding resistance, TTR etc.. 4. After occurrence of such repeated faults, at one of the attempt it was decided to check the IR (Insulation Resistance) value of the Core, Tank and Frame. 5. On checking the IR value, it was observed with C-T, C-F value came ZERO. Such results indicate that the core, frame and tank might have been shorted (Earthed) internally at any other points. So on doing the connection of the actual links, multi paths were getting established in the system. 6. The paths other than the actual links might not be perfect as compared to the links to be provided. So such path on technical reason may cause the ionization of the system around and result the heating of the metal parts of the non-electrical parts. So the acetylene gas, as the consequence of metal burning was evolving. 7. As this effect was not on the actual part of the winding or on the active part of the transformer system, so electrical relays were not actuating in the system.
the LINKS to run the transformer till the arrangement of Lifting device for detail checking of the Core, Frame and Tank. 9. On doing such, the evolution of C2H2 gas again stopped and the unit was allowed to run with full load for study. 10. Finally the job was decided to be checked thoroughly on lifting the CORE, FRAME. 11. On physical verification it was observed with a temporary link between CORE and its frame which was found with total burning of the bolts and disconnected. 12. So this temporary link was removed completely. Then the transformer was allowed to be taken into the system with connection of actual links on the top of the cubicle. 13. Then onwards no such abnormality get observed on this transformer and this unit was kept in the service with its actual loads.
1. Always measure the Insulation Resistance of CORE, FRAME and TANK just before erection at site. The results of IR value should be at least of 25 Mohm. 2. During every routine test after keeping the transformer in the circuit, also measure this IR value to ensure of no such parallel path other than the links.
1. On trial it was decided to remove the links of the CORE, TANK and FRAME as provided on the top of the transformer inside a cabinet box. 2. The links were removed and energized for loading of the transformer with the allowable loads for the trial running of the transformer. 3. This time it was found with no such abnormal evolution of ACITYLENE gas as it was resulting before. 4. The tripping on BUCHOLTZ relay also stopped. 5. Then the transformer was loaded to its maximum for study and found with no such abnormality for few months. 6. Again after 6 to 7 months, the accumulation of C2H2 (Acetylene gas) resulted. 7. This time on availing shutdown, the testing of Core, Frame and Tank was done. The results as found were of certain IR values between the terminals. 8. So the decision was again taken to use ELECTRICAL MIR ROR || JULY 2018 || 107
CEO NHPTL Pvt. Ltd.
HPTL is a unique type of project Laboratory in it is self & it’s a first Online Grid-based testing facility in the world up to 765kV level. Equipment’s from more than 10 countries have been imported.
Give us a brief understanding of your company and its promoters?
National High Power Test Laboratory (Pvt.) Ltd. (NHPTL) is a Joint Venture Company of NTPC, NHPC, POWERGRID, DVC & CPRI. It was planned for the establishment of a fully independent, standalone, state-of-the art, professionally managed, international class, On Line High Power Test Laboratory in India to provide full range of short circuit testing for the electrical equipment manufacturing industry and power utilities in conformance to Indian and International Standards. Subsequent to testing of 120MVA, 400/11.511.5kV, 3Ph, Station Transformer of BHEL as first commercial test on 01.07.2017, NHPTL declared the High Voltage Transformer (HVTR) Section of its Laboratory under Stage-I, commercially operational at 400kV at Bina, M.P on 01.07.2017. Further, NHPTL tested 85MVA, 765/132kV, 1Ph, Tie Transformer as first commercial test on 11.09.17 and NHPTL declared its capacity enhancement of SC testing upto 765kV class of transformer in HVTR section of Lab. Now the Stage-I shall cater to the requirement of Short Circuit Test of Power Transformers from 50MVA, 132kV Class to 333.3MVA, 765 kV Class which is in process of further up-gradation. NHPTL have also been accredited ISO- 17025 by NABL on 12.10.2017.
What are the company’s key priorities and focus areas with respect to the Indian Power sector?
Earlier, for Short Circuit testing of Power Transformers, Indian manufacturers have to send their transformers to other foreign laboratories for S/C testing which takes a lot of time, involves high
risk of transportation of transformer through ship for a long distance and they were losing a lot of foreign exchange also. After start of our facility, the time required in testing has been reduced to substaintly w.r.t other foreign laboratories leading to reduction in the delivery time of equipment and thus saving time & cost of the project as well as foreign exchange. It will help to Indian Power Sector to complete their projects on time which were delayed due to spending more time while testing of transformers at other foreign laboratories. Since, NHPTL have already tested 10 nos. of different rating of 400KV & 765kV class of transformers, hence, NHPTL are in position to meet the Global standard of quality in the field of testing and now, we expect that customer from all parts of the world will visit us as a most preferred testing destination.
What have been the most desirable achievements in power sector and what were the challenges which NHPTL face during startup of this?
Commercial start-up of this Lab was the most awaited moment for the Indian Power Sector. NHPTL is a unique type of Laboratory in itself & it is a first Online Grid based Short Circuit Testing Laboratory for Power Transformers in the world up to 765kV level. Equipment’s from more than 10 countries have been imported. Hence, Engineering co-ordination/clearances were very critical. Since, the facility is grid based, study on impact on grid through system study and different statutory clearances from various organizations / utilities were very challenging. Hence, even construction work was completed, going for
commercial clearance was a big challenge.
What are your upcoming plans for coming years?
This Laboratory shall provide an opportunity for India to become a global hub for short circuit testing and certification of Power Transformers. This will help us to generate the foreign exchange from foreign companies. The test services of NHPTL may also be utilized by SAARC Countries, ASEAN & Middle East Countries, as it will have lower testing and shipping cost as compared to the testing facilities in other Countries. NHPTL is further planning to upgrade the testing facility from 333.3MVA to 500MVA, 765kV Class Transformers.
How has the growth of your company been over these years? What is your current order book position? Have you witnessed any shift in trend on a year on year basis?
NHPTL has enhanced its capacity for grid based testing of transformers from 400kV class to 765kV class and it has now become the world’s highest voltage level test facility of its kind. The order booking is very encouraging as advance booking for more than six months has already been done. As per present power scenario of India & neighboring Countries, there is a huge capacity addition for Generation as well as Transmission line. Hence, in further there will be high demand with respect to present demand in short circuit testing of Transformers. We are planning to add some more Tools & Plants (T&P) to further increasing our testing capabilities as we are expecting a high increase in testing orders for 220kV, 400kV & 765kV transformers in future.
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Market size in billion U.S. dollars
10 8 5.9
6 4 2 0
Market size of transformers across India from FY 2015 to FY 2022 (in bn U.S. dollars). Source: Statista
Above statistic represents the market size of transformers across India from fiscal years 2015 to 2022. The market size of transformers across the country was est. to be around 11 bn U.S. dollars in fiscal year 2022. To sustain the envisaged annual GDP growth rate of around 8-9% over the next 20 years, it has been est. that India will require to increase its electricity generation capacity by around five times by 2032. Rapid growth in metros, airports & others infra. projects is expected to generate huge demand for matching transformers & equip.. External demand: currently, share of Indiaâ€™s exports in the global market is about 1%. With the electricity sector being a sunrise sector across the entire developing world, there exists a significant export potential for the domestic industry. Increasing emphasis on power & infra. sector by the GoI, there is a huge potential for the contractor for the coming years in this sector.
Use of STs is proving to be ideal for power systems designed for the integration of renewable energy. India has been witnessing a significant rise in power demand for the past few decades on account of rapid growth in population, industrialization & urbanization. The total installed generation capacity is expected to reach about 320 GW by the end of the 12th Five-Year Plan. During the same time, India is likely to achieve AC transformation capacity of 670 GVA with approx. 65 GW of interregional grid transfer capacity in addition to HVDC transmission. Over the years, transformer tech. has evolved considerably to meet the emerging req.s of utilities & enhance power system reliability. The conventional oil-filled transformers are being replaced with dry-type transformers & advanced STs. The esterfilled transformers, which offer the unique features of fire resistance, biodegradability & enhanced reliability, have become popular in the T&D segments. Phase shifting transformers (PSTs) are also gaining traction as they protect the equip. from
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thermal overload & increase the stability of the transmission system. Further, with the increase in HVDC lines, the demand for converter transformers has increased in recent years to enable efficient electricity transfer over long distances. With huge investments proposed across sectors such as power, infra. etc., the transformers market in India is slated for strong growth. The excess capacity in the Transformer industry in India, & entry of new players is further expected to increase market competitiveness. Market consolidation over the next few years is inevitable. STs are an integral part of digital substations, which independently regulate voltage & maintain contact with the smart grid in order to allow remote administration & real-time feedback on power supply parameters. The use of these transformers is gaining traction at the distribution & transmission levels. These transformers are equipped with intelligent electronic devices & intelligent monitoring & diagnostics features. Besides, they provide web & supervisory control & data acquisition interfaces. A smart transformer (ST) provides the accurate amount of power that is req. & immediately responds to fluctuations within the power grid, acting as a voltage regulator. Further, as STs consume less energy, they help in reducing greenhouse gas emissions. During 112 || July 2018 || ELECTRICAL MIR R OR
instances of power supply fluctuations, STs can be monitored & controlled in real time to optimize the voltage levels. These features make STs ideal for power systems designed for the integration of renewable energy. With regard to the type segment, DT is expected to constitute the fastest growing market from 2017-22. Smart distribution networks require STs to communicate with consumers & also for continuous load monitoring. DTs are less efficient than power transformers as they are subject to load fluctuations & the chances of failure are higher. Power distribution sometimes results in increased load above the peak limit of the equip.. Hence, the implementation of a distribution network is essential for proper load management, resulting in better power quality & less power outages. STs Market is expected to grow from an est. USD 1.47 bn in 2017 to USD 2.43 bn by 2022, registering a CAGR of 10.54%, from 2017-22. The global market is set to witness a significant growth due to increasing emphasis on alternative energy production across the globe, digitalization of power utilities, & huge investments in smart grids & energy systems.
Advanced transformer technologies
Transformers are an indispensable component of
an AC electrical system for electricity generation, transmission or distribution. In India, power utility application holds the major share in power & DT market & is further expected to witness robust growth in the coming years. Advanced transformer tech. work independently to constantly regulate voltage & maintain contact with the smart grid in order to allow remote administration & to provide information & feedback about the power supply & the transformer. Smart grid will require ‘STs’- which is the epitome of energy collection & distribution. Most of the transformers in the distribution network lack any intelligence or communication capabilities – or to generalize the concept of AMI- are parts of an advanced sensor infra. (ASI) network. A Smart Gird Transformer (SGT) with managerial role in the electric distribution grid is generally called ST. STs work independently to constantly regulate voltage & maintain contact with the smart grid in order to allow remote administration (if needed) & to provide information & feedback about the power supply & the transformer. Moreover, these types of transformers are used in Point of Common Coupling (PCC) in a microgrid for voltage control & it acts as a protecting device for electrical equip.’s during power fluctuations. Transformer is a conventional electrical application ||www.electricalmirror.net||
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of the most basics of principles. It has been & will be around for decades to come, with the same working principle; as it was first build by William Stanley in 1885. However, there have been significant developments in the field of transformer tech.; which either pertains to its efficiency or to its reliability. The earlier part of this development was majorly focused on improving the efficiencies of the transformer & reduction of AT&C losses in the T&D system. Whereas, the past few years has now been with focused development in enhancement of the systems’ reliability & ensuring ‘zero’ breakdown system. We can begin to see this change in focus, as the electrical boards have also implemented down-time based penalties towards the power discoms in certain part of our nation. CoS now have access to decades of database, which has enormously enhanced their capabilities to detect an incipient fault in the transformer system, may that be through like transformer oil analysis, trending & condition monitoring, cross-data interpretation. With such technologies, which were not possible in earlier times; & now can be immediately implemented by-large across nations, globally; & with collaborate & effectively designed maintenance & condition monitoring programs, the T&D system stands to not only be more reliable, but with the reducing of breakdownbe highly economically efficient as well.
CRGO bottlenecks in the industry
Long overdue demand of transformer Industry to Govt. is to pursue companies like SAIL or Tata to set up manufacturing plant in India which would save considerable FOREX outflow. Indian power transformer market is set to grow at a CAGR of 14% between 2013 & 2018. However, challenges are many. Indian steel producers should be forced to set up CRGO plant to meet the demand. India is known to be an active supplier of transformers to nations worldwide. What has led to its growth in export in the recent years? India has always been an exporter of transformers & this avenue is
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set to become even more lucrative in the coming years. Exports from India are diverse including power & DTs & even special purpose transformers. It is est. that around 15% of India’s production of power transformers is destined for international markets. With India proving its technological edge by producing even 1,200kV transformers, surpassing global standards, the country has a very bright future. It is not only developing African & Central Asian economies that are importing from India; India-made transformers are even finding their way in developed markets like USA, UK, Canada, South Africa etc. India has been net exporter of transformers till now. Several of international players who already have base in India are looking forward to making their Indian setups as manufacturing base for supplying to other countries. Indian transformer industry is gradually gaining prominence in developed markets on the basis of its quality & pricing. The domestic transformer industry has the potential of becoming the manufacturing or sourcing hub for the supply of transformers in foreign markets. The market is highly fragmented with a large no. of small & medium enterprises involved in the manufacturing processes, & is dominated by organised players. The domestic manufacturing industry is fairly well established with manufacturers having capabilities to develop all type of transformers up to the 800 kV & 1,200 kV levels. The industry also exports to several countries including the US, South Africa, Cyprus, Syria & Iraq, apart from Europe. Indian transformer industry is currently exporting about 10% of their production. If this additional exports share continues at 8-10% level, it may only add 2% to CAGR growth. Hence, increasing the export market basket or share is imp. for a substantial growth i.e. to align with mission plan objective – ‘go global’. What shifting market trends & opportunities are you witnessing in the Indian transformer market? The Indian transformer
industry is one of the oldest manufacturing segments in the country & is broadly categorized in to power & DTs. The tech. used is contemporary & two types of core materials are generally used. CRGO forms the major chunk of core material while amorphous metals used by limited no.s of manufacturers as core material but the usage is increasing. Large transformer segment is dominated by multinationals & large sized Indian companies as capital req. is high due to high level of tech. & sophisticated manufacturing & testing facilities. DT segment is concentrated within small scale sector. The industry is currently operating at about 60% capacity as the Govt. projected demand has not materialized fully. However, more & more players are entering this segment. The industry witnessed large level of imports from countries like China, Korea etc. The transformer market in India has been in a healthy state for quite some years now. The market is further expected to witness healthy growth rates & stimulating demand for the coming years. The initiatives undertaken by GoI along with the need of replacement of transformers installed in the earlier years is expected to drive growth in the Indian transformers market. As a result of increased Govt. spending on electrification & rising power demands, the electrical equip. manufacturers are likely to get benefitted. Programmes such as RGGVY & R-APDRP are bolstering the demand for electrical equip. such as switchgears, conductors, capacitors & transformers. Transformers being used in generation, transmission as well as distribution network have experienced healthy growth over the last few years & the market is further set to rise as a result of increased Govt.al focus towards rural electrification. RGGVY has a programme to electrify 1.15 lakh un-electrified villages & providing free electricity connections to 2.34 crore BPL household wherein GoI will provide funds to the tune of 90% of the
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project cost as grant while the remaining 10% will be provided by the REC as loan. So far, 562 projects have been sanctioned at total cost of Rs. 265 bn of which Rs. 135 bn has been spent for providing 6.35 mn rural household electricity connections for electrifying villages. For this scheme, lakhs of small transformers are req. to be manufactured for which the Indian industry is adequately equipped. China has already entered the Indian power transformer market. If we will talk about China, yes, it is in our knowledge that some Chinese power transformer manufacturers are setting up their units in India. This will definitely give impetus to Indian manufacturers to enhance their production capacity with the best & latest technologies, so as to give competition to the Chinese & other manufacturers in the world due to open economy at global level. A few players also said that there are players entering India from China which is one of the reasons why the industry is feeling the heat. We are not denying that Indian transformer industry consistently facing tough competition from the Chinese manufacturers. In addition, cheaper imports from China & Korea have majorly impacted the industry. Our margins have drastically gone down due to steep competition. According to reports, China manufactured products are much cheaper & are technologically advanced. This has a bigger direct impact on small & medium sized transformer manufacturer. However, keeping in mind the stronger electrification drive which is 116 || July 2018 || ELECTRICAL MIR R OR
happening in India, players said that the industry will be able to overcome the main issues & maintain a healthy growth rate. It is felt that future for quality transformer manufacturer seems bright as there is lot of scope for electrification in India. Under international trade law, remedies are available for Govt.s that intends to take action against imports which are causing injury to their local industries. In addition, the Govt. needs to conduct research through R&D schemes as well as priorities the promotion of domestic brands. It must always weigh the economic benefits of allowing cheap imports against their negative effects. For instance, where domestic markets are struggling, it is prudent to allow cheap imported goods. This will not only ensure the availability of necessary goods that Chinese imports can offer, but also offers necessary competition for the benefit of consumers. It is crucial, however, that Govt.s simultaneously take advantage of tech. transfer agreements (and negotiate new ones) in order to benefit from the technical know-how & skills from China necessary to efficiently develop & run the ailing industries. In this way, trade with China will add real economic value. Indian transformer industry continues to face tough competition from the Chinese manufacturers. However, with the continuous support from the Govt. to promote the power transformer industry through investments, tax benefits, subsidies etc. will help the industry to grow over the coming years. The most imp.
recommendations from the Govt. would be: Indian steel producers such as SAIL, JSW, Tata, Mittal group etc. should be forced to set up CRGO plant as the demand is about 3 lakh tonnes per year, with lot of scope for export. Excellent testing facilities should be created as at present EHV/ UHV transformers have to be sent abroad for type testing. However one test lab for UHV is being established in Bina which needs to be expedited. Such more labs are req. in northern & northern eastern zone. The transformer industry in India has evolved & now has a well-matured tech. base up to 800 KV class. India has a field-proven tech. & capacity to manufacture a wide range of power transformers, DTs & other types of special transformers for welding, traction, furnace etc. Today, about 95% of the transformers installed in the Indian Power Network are of indigenous origin. Energy efficient transformer with low losses & low noise levels can be manufactured in India to meet international req.s. India has a good & sound base of over 700 industries & has total transformer manufacturing capacity of 1,000 GVA sufficient for domestic & export market. The present net worth of industry is about Rs. 12,500 Cr. & now has planned to add 100,000 MW in the 12th Plan period which shall result in annual market of Rs. 15,000 Cr. for transformer industry. The Indian transformer industry is facing some key challenges, which restrict it from growing of its full potential & targets. Some of these ||www.electricalmirror.net||
challenges include: One of the major concerns for the industry is the growing imports from China & South Korea. As per estimates, the Chinese manufacturers’ share in Indian electrical equip. imports has increased. The absence of a level playing field for the domestic industry poses a major threat to local manufacturers. Inadequate testing facilities, especially for high voltage electrical equip., Dependence of some sub-sectors on import of critical inputs, CRGO, which is one of the major raw materials for transformers, is not being manufactured in India. Long overdue demand of transformer Industry to Govt. is to pursue companies like SAIL or Tata to set up manufacturing plant in India which would save considerable FOREX outflow. Delay in release of payments by power utilities adversely effects top line & bottom line of the industry. Low investment in R&D & no structured long-term approach for basic research. Lack of standardization of product specification, design parameters & ratings for generation & distribution equip. across different utilities. Bouncing of orders by utilities, because of factors beyond their control such as Govt. approvals, release of funds etc. Outdated tendering procedures & contract awarding based on L1 bidder by utilities. Unavailability & cost of power project funding.
Transformer market in India is est. to be over Rs 12,000 Cr. where power transformers contribute 45% of the total market & DTs contribute 55%. India’s transformer market is predominantly unorganised with many small participants catering to the smaller DT markets. However, many are slowly graduating to the medium-sized category, thus expanding the organised participants’ base. Anticipating the huge domestic demand, Toshiba T&D Systems (India) [TTDI] has invested around US$30-mn at its Hyderabad factory that has boosted production capacity for transformers up by 50% & established two production lines for new tech. products. In India, the road towards developing power infra. is over the horizon. High generation demands, capable enough to cater the present power req.s is still in its phase of development whereas the
prospective of infra. development puts us under significant load of enhancing our capacities to fuel the growth of the nation. To simply put, any growth or development requires industry to expand, which will directly increase their power consumption thereby needs investing in transformer (distribution) assets to enhance loads. Every link to this cycle is interdependent, & power is one of the key factors for the promising India to meets its expectations. Transformers in the distribution system entail highest volumes in the power utility, supply & consumer chain. Irrespective to the advancements made in the field of power generation, DT is an irreplaceable asset. Today most of our power distribution system, including the several HV consumer plants & facilities, are on their peaks of the asset ageing cycle. Most of the transformers installed today are severely aged whereas aged doesn’t necessarily means unfit-foroperation or not reliable; but they certainly need maintenance & up keeping. Engineers today are well aware of this challenge & understand that like their past generation reactive approach cannot be entertained & they along with transformer lifecycle management professionals are working towards the life-enhancement of these assets.
Gauging the competitive landscape
Indian DT industry is currently dominated by unorganised sector. The capacity for supply is more than market demand resulting into unethical competition & manufacturing practices. Inclusion of DT in the mandatory standard of IS1180 Part 1 & raising the efficiency standards are the right directions taken by the Indian Govt. With the BIS – Quality control order coming into the picture, we expect some improvement in the quality aspects & healthy completion thereon. When designing & procuring today, transformer should be looked as a capital asset, & investment made which shall bear returns to the stakeholder. The buyer today needs to understand, transformer is static equip. with all capital intensive material as its composition which shall probably bear higher scrap value down a few decades as compared to the present market value. We should be concerned about the cost of operation & the transformer ownership cost; not the best-buy price of transformers. In the same breath, unfortunately the competition in the market today amongst the manufactures is
showing its ugly face. In the past decade, where the tech. & efficiencies has sig. increased, we have experienced a sig. downturn in the quality of transformers. Big brands in transformer manufacturing are mostly focused towards power & DT of over 220KV, & hence outpouring the DT from several OEMs. There are several factors responsible but only when the consumer understands & looks transformer as a capital investment, & is self-aware about all malpractices existing in the industry, they can steer towards reliable & effective power system. Indian transformer market is predominantly unorganised with many small participants catering to the smaller DT markets. However, many are slowly graduating to the medium-sized category, thus expanding the organised participants’ base. Transformer over capacity in the Indian market has led to immense pricing pressure scenario severely impacting the profitability of the market players. It is felt that FY 2017-18 will be year of consolidation where we will see lot of incompetent (quality) industry will find difficult to survive where as new entrants will also come looking the heavy investment in power sector by Indian Govt. If focus is kept on quality then it should make things easier for transformer manufacturer to sustain & have incremental growth at same time.
Opportunities & Challenges
India is on the verge of becoming major power nation among developing economies. Electricity is a key constituent for the economic growth of the country & is directly linked to GDP of the country. There has been a surge in demand for power in India due to increase in capacity utilisation, industrialization, urbanization & population. Currently through reforms such as ‘Power for all’, Govt. plans to add 93 GW by 2022, this would fuel the demand for power T&D equip.. The Indian power & DT market is forecast to reach $2.9 bn by 2022. Presently the Govt. is taking major steps to strengthen the power T&D network & has undertaken imitativeness such as UDAY for financial turn-around of power discoms. Further, the Govt. has projected an investment of Rs 146,000 crore. In transmission sector by FY 2019 which results in demand for distribution & power transformers. As per various researchers, the industry is going to increase by more than 10% ELECTRICAL MIR ROR || JULY 2018 || 117
CAGR in the next 5 years. With implementation of UDAY & other discom schemes there is a huge acceleration of infrastructural amendment in India. This has influenced invitation for bids for refurbishment & up-gradation of existing T&D network. Till date 27 states & UTs have opted for the scheme. Thanks to GoI in bailing out most of the discoms in order to make them financially self-sufficient so that they distribute electricity at reasonable cost to domestic & industrial users. It has really taken care of all the issues spread across India right from remotest village to the nearest town. So naturally transformers are on demand all across India because energy distribution always needs this single most imp. device in the network that is transformer. Both power as well as distribution network is getting strengthened all across the country. Also the discoms are instructed to reduce losses to the tune of 10-12% which means they have to go for efficient transformers. Recently, BIS circulation has issued strict norms on transformer losses & it is expected that in next 3 years’ time discoms have to replace all existing transformers with level 3 transformers (Level 3 means 5-Star Rated Transformers). Transformer manufacturers have to manufacture & supply these new transformers in mns to the discoms in a maximum period of 3 years. Indian transformer industry has been stagnant over the past 1-2 years due to slowdown in projects both in the power T&D sectors. In addition, ambiguity around GST rates for capital goods products has added further to the business slowdown. The transformer industry largely depends on the spending from T&D utilities & recent tenders/ordering activity by utilities clearly demonstrate the downward trend. It has also been observed that the no. of projects, especially in the transmission sector which have been initiated have been put on hold due to delay in approvals & lack of funds.
The investment climate is positive in the Indian power sector. Due to policy of liberalization, the sector has witnessed higher investment flows than envisaged. MoP has set a target of adding 93,000 MW in the XIII FYP (2017-2022). The industry has attracted FDI worth Rs 48,357.00 Cr. or US$9,828.08 mn during the period April 2000 118 || July 2018 || ELECTRICAL MIR R OR
to June 2015. The Govt. has launched schemes like DDUGJY, IPDS & NEF for improving distribution sector since distribution sector is a link between consumers & utilities, it is a cash register for the entire sector. All these projects will lead to lot of demand of transformers in coming 3 years. “But only worry is proper & timely implementation of these projects,” points out Patel while sharing expressing his concern. The Govt. initiatives like DDUGJY, IPDS & growing FDI in power industry are few growth drivers in the industry. The growth in renewable energy sector also substantially helps in increase in demand for transformers. Informing about the major growth drivers Patel says, “Design team of transformers should be very strong & is one of the major growth drivers in industry. They need to make the designs in such a way that material req. for manufacturing transformers should be available freely (many suppliers) & less customized materials need to be ordered. The windings should be made easy so that workmen find them easy to assemble. The other growth driver is coordination between different departments (active path & tanks). Apart from manufacturing transformers, transformer service industry can also be started thus achieving third-party contracts from Govt.s or other private players. Current transformers & potential transformers can be manufactured from the wastage of distribution & power transformers reducing the manufacturing costs. Govt. schemes such as DDUGJY & IPDS which are aimed at improving the distribution networks in rural & urban areas, respectively, largely drive the DT demand in India. The demand from these schemes is expected to continue & in addition new schemes such as Saubhagya scheme which aims to provide last mile connectivity to rural consumers should increase future demand. Infra. segment (especially Metro Rail Projects) are witnessing increase in demand for DTs & increased Govt. spending in this segment is set to drive demand in future. For power transformers, intra-state transmission projects (400 kV & below) are expected to drive demand. State TRANSCOS will majorly drive this demand & float new transmission projects through the TBCB model. PGCIL, which is mainly into executing & implementing interstate projects, is planning to aggressively enter intrastate projects
by forming JV’s with state utilities. DTs up to 2 MVA remains the hot cake as this is the range defined by BIS however with increase of power demand & up-gradation of substation is continuously chasing behind the main power transformer. The power transformers hence also needs replacement or relocation to less populated demand centre. Most of the solar power generation built last year are now almost connected to the national grid & often throwing huge power flow in the cycle which is meeting country 23% power demand in few demand centre during peak hours. The solar boom has crashed a new demand of Inverter duty special transformers. NTPC, NHPC & SECI have been continuously inviting GW bids & with Indian Govt.’s dream of 20 GW by 2022 has created a restless situation is solar field raising a high need with high speed supply derivatives. The prevalent scenarios suggest an optimistic growth potential within the organised sector of the industry. Initiative like rural electrification, privatization of utilities & ‘Make in India’ shall be the primitive drivers towards the growth story of the industry. However, to our understanding, only efficient & quality focused org. can be benefited from such drivers.
It is est. that the transformer industry in India as on date is worth around Rs 15,500 Cr. However, since past one year the market for DTs in India has taken a major hit due to following reasons: Delay in implementation of REC norms by various state electricity boards. Since past two years REC has made mandatory for all SEBs to purchase BIS marked Level 2 rated DTs. Most of the states have taken lot of time in approving the REC norms. Due to delay in implementation of above all the DDUGJY & IPDS tenders have been delayed by at least a year. The Govt. has approved budget of Rs 110,000 Cr. for both schemes combined but most of the SEBs have still not seriously started release of orders to turnkey contractors. As on date, there are only two NABL accredited laboratory in India – CPRI & ERDA for complete testing of DTs. Also, waiting period in both these labs is not less than 2 to 3 months for testing to be conducted. Due to this delay lot of transformer manufacturing companies have not got BIS license till date. The industry requires min. 25 such laboratory to get ||www.electricalmirror.net||
testing done on time. Unfortunately in India to supply DTs you need dual certification BIS & BEE. BEE certification is also taking lot of time anywhere between 2-3 months. To get certification for different sizes with different star ratings is expensive & tedious process. Inadequate supply of prime quality CRGO steel is the biggest challenge faced by transformer manufacturers in the country. CRGO req. is completely met through imports; it is in fact challenging to assess the true quality of the material that is used by the transformer manufacturers in India. India needs 2.5 lakh tonnes of CRGO every year. As & when above issues get sorted out transformer industry should grow with leaps & bounds especially with proper implementation of DDUGJY & IPDS schemes. It is anticipated that the industry can grow with min. 10% incremental yearly growth for coming 3 years. Some of the major bottlenecks which are affecting the growth of the industry are: Procedural delay in implementing the projects (DDUGJY & IPDS schemes). This also brings forth the lack in synergy between central & state Govt.s. Poor financial condition of major utilities are resulting into lower allocation or budgets for the procurement of new material. Govt.’s new scheme “UDAY” is expected to give boost for the utilities & improvement in the procurement activities thereon. Non-uniform procurement policies & qualifying criteria for vendors. Tendering procedures & contract awarding based on L1 bidder & negotiations leads to malpractices due to price pressure & hence market is driven by prices rather than quality (low qualifying criteria). Pre-Qualifying Req.s (PQR) provide no encouragement for field trials of innovative products or technologies. India’s transformer market is predominantly unorganised with many small participants catering to the smaller DT markets. However, many are slowly graduating to the medium-sized category, thus expanding the organised participants’ base. This makes the market more competitive & price sensitive rather than quality. If an org. focuses on quality manufacturing of transformers, they can sustain the competition & have incremental growth. Pointing out the challenges. The supply of CRGO is one of the major challenge in this industry as it needs to be imported & there is less supply. This challenge needs to be overcome by ||www.electricalmirror.net||
forecasting material planning properly. The failure rate of transformers is also a concern. There are wide variety of products & different star ratings req. from customers/clients. So, certifications of each & every product become an expensive process due to less no. of testing facilities. Testing infra. available at India’s premium agency, the CPRI is proving short of demand as they are not in pace with the production both quantitatively & qualitatively. So, large power transformers are sometimes sent to overseas facilities for testing. It takes around 2-3 months for BEE certification. Dual certification from both BIS & BEE is req. in India which is even more challenging. New BIS efficiency standards were introduced last year: the transition to meet these new standards has led to a few hiccups on the DTs market. Most of the manufacturers were not ready with mandatory BIS certification & has a result the supply to DISCOMs was affected resulting in low demand. The stringent efficiency levels are also expected to consolidate the market; currently only 250-300 manufacturers have applied or obtained BIS certification out of the total industry size of 500 plus manufacturers. This is mainly because of unorganised manufacturers who were highly price competitive & majorly rely on use sub-standard raw materials. The demand from the manufacturing segment is still a major concern for the industry, the manufacturing sector is yet to see an investment uptick due to low capacity utilisation & this has led to slowdown in new as well as expansion projects. Slowdown in the manufacturing segment has a ‘Domino’ effect on the overall transformer industry – low power demand from the manufacturing segment is one of the major reasons for reducing peak power deficit in the country, excess power from the manufacturing sector is diverted to residential & agricultural sectors shortening power outages in these sectors. Unless power demand from manufacturing segment increases the utilities will be not be very enthusiastic to spend on improving power availability or expanding the network. Hence, demand expansion in the core manufacturing sectors is very critical for the transformer industry. RE sector projects, especially in the solar segment have witnessed a serious slowdown in projects after
showing significant growth in 2015 & 2016. This has hampered spending on transmission projects resulting in delay in project approvals & project cancellations. In a recent move, Indian Govt. imposed 70% safeguard duty on imported solar cells; this could increase the overall project cost & is further expected to impact growth in solar projects & will cause low spending in associated transmission projects. Challenges remain always for quality manufacturers because MKT Realization versus cost always will race with each other. Cost of manufacturing of quality transformers as per Level 3 is quite high (IS 1180 transformer almost costs double of IS 2026) so few competitors are finding nook & corners to sacrifice on materials to bag orders which ultimately does not serve the basic purpose that is to reduce distribution losses by supply highly efficient transformer. Govt. has to come forward & promote quality suppliers to permanently raise the health level of electrical network. It is worth to mention that more & more inefficient transformers in distribution circuit actually make the total T&D system paralyzed because there is huge line losses on 24×7 basis totaling mns of rupees. Wastage which otherwise could have helped the country to progress. What remains to be seen, is how our industry can cope the challenges that we face today. Right from the lack of tech. for Indian produced CRGO core, which in-turn translates to utilisation of poor quality, or pre-used / scraped core in the majority market; to the lack of awareness in the mid-sized industries towards reliable management of transformer & power system; what we need is a paradise shift in our approach as a nation. The immediate target for the transformers industry as well as the policy makers will be to curb the losses associated with DT failure which are relatively higher in the Indian context compared to global benchmark. In addition, standardize & improve the efficiency of the transformers over a period of time which will add to overall efficiency gains & savings across the T&D grid operation. Transformers account for significant capital expenditure for the utilities. One of the key goals for the industry will be to gradually move from CAPEX based mindset to look at the transformer total cost of ownership which in long run will benefit the utilities.
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Gensets Market in India: Rental Power Market will Inevitably Grow to Bridge Power Deficit 120 || July 2018 || ELECTRICAL MIR R OR
GSET market designates the use of internal combustion engines for distributed power production. Today, reciprocating engine-based gensets are among the fastest-selling, least expensive distributed generation (DG) technologies in the world. The many specialized segments spanning power classes, applications, & end-use customers offer a rich ecosystem of opportunities for market participants. In backup or standby applications, DGSETs offer reliable performance with expanding opportunities among homeowners & commercial facilities like hospitals & data centers requiring mission-critical power in the event of a grid outage. As a source of continuous or prime power, DGSETs have historically been the leading baseload DG technology. However, natural gas (NG) gensets are now capturing increasing market share as emissions regulations & inexpensive NG point to long-term value for new installations. As a whole, the DGSET market has experienced steady historical growth. From a cost perspective, DGSETs are characterized by very low installation costs, but high fuel costs & risk of price volatility. Gasoline is the leading fuel choice in the consumer market (<15 kW). In the higher power class ranges, though, diesel & NG are the primary options. To date, the NG genset market has represented a fraction of the overall genset market due to historically high prices & lack of NG infra.. Over the next decade, however, the boom in unconventional gas resources & tightening emissions regulations for stationary generators will favor clean-burning NG systems over their diesel counterparts in North America. There may be a ripple effect throughout the world as other countries seek to tap unconventional shale gas reserves, as well. These developments, however, will take time to fully materialize. In the short-term, countries with strong economic and/or population growth rates that are increasingly burdened by blackouts such as Nigeria, India, Chile, South Africa, & others, continue to drive DGSET sales. Industries in India have become highly dependent on diesel due to power outages spanning as much as 16 hours per day, making them more vulnerable to price volatility. According to TechNavio market research analysts, the genset market in India will record an impressive CAGR of close to 14% over the forecast period (2016-20). The developing country such as India has been reeling under the problem of frequent power outages triggering the demand for genets. Apart from this, India, being the fastest development country, requires power for its industrial, commercial, transportation, infrastructural development consumption. Although the country is the third-largest producer & consumer of electricity in the world after the US & China, an estimated 27% of the energy generated in India gets lost during transmission or is stolen. Peak supply falls short of 9%, & frequent power outages last
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for an average of 10 hours in many regions of the country such as Meghalaya, Andhra Pradesh, Uttar Pradesh, Jammu & Kashmir, Andaman & Nicobar, Bihar, & Tamil Nadu. This has led to the augmented adoption of gensets, which are used to solve power outage issues in the country. Hybrid genset that run on gas, diesel, solar & batteries is the new trend in the genset market. Soaring demand for these genset leads to several manufactures to introduce hybrid gensets & offer better cost & fuel efficiency than the conventional gensets. As compared to the conventional gensets, these gensets have less carbon footprint on the environment, emitting fewer harmful substances like NOx, CO, hydrocarbons, & particulates. They are cost-effective solutions for applications where the average running of the load is much below the size of installed gensets. A DGSET paired with solar panels & dual fuel is another hybrid option that is expected to gain traction in the market over the next four years.
Ensuring 24X7 Power
A power hungry India bodes well for genset manufacturers, be it as standby backup power or as a primary power source. Power outages across the country, & rising demand for mobile power across industry segments & the construction & infra sectors are generating plenty of demand across various types & capacities of gensets. Its versatility of applications has always ensured powerful demand for gensets in India. India currently suffers from almost 15 percent peak power deficit which is hampering growth of all sectors in the economy, ranging from manufacturing to services sector, health & hospitality, & construction & infra sector. Almost each & every organization needs consistent power supply, as data loss can be more expensive than the capital expenditure required for backup power equipment. Therefore, it is expected that the demand for diesel generators will grow in the coming years.
Emissions - the greatest concern
Arguably, the biggest single development in the coming years will be the influx of regulations relating to off road engines. This will provide both challenges & opportunities for genset companies. The challenge lies in the obvious but complex task of manufacturing engines that 122 || July 2018 || ELECTRICAL MIR R OR
comply with emission & noise level regulations, but also carry the same level of performance. The broader challenge, however, is to maintain revenues & market share in an industry that will become increasingly inhospitable for 'old' energy in the future. This is particularly true for the diesel variety of gensets, which carry high emission levels, are noisy, & contain physically harmful substances. So where does the opportunity lie? Well, the opportunity lies in the fact that 'built to comply' engines are now a market in their own right, & a lucrative one at that. End-users have little choice but to comply, & demand is expected be strong. Though the alternate energy market is growing, the technology is not yet mature enough to meet such huge demand & 'traditional' power generation technologies such as gensets will continue to be popular. Genset companies can also bolster revenues by charging technology premiums. Companies which establish a reputation for producing compliant engines with high performance levels will attract huge demand from the commercial, utilities & industrial sectors. In addition, opportunities exist to sell non-compliant engines. Despite the whole world's 'going green' narrative continually reinforced by the media & politicians, there remain a number of unregulated regions where genset companies can sell units from their existing product lines. One of them happens to be the second largest economy in the world, China. By attempting to target these markets genset companies can maintain a revenue stream selling engines that would be worthless in the regulated markets. In short, emission regulation will be a huge development in the gensets market. The drive to reduce harmful emissions only seems to be gaining momentum. How companies adapt to the environmental drive is key to the future success of the market. In highlighting the above areas where genset companies may have to alter its strategic thinking, it is clear the extent to which the industry is changing. The degree to which companies strategize & account for these changes in the market, will largely determine its success going forward. Of course, not everything can be accounted for, & genset manufacturers are in many respects slaves to events. Rising fuel &
raw materials costs are examples of areas that market participants can do little to influence & yet they have a huge effect on companies' growth. However, by focusing on areas it can control, particularly in relation to its market strategy, genset players can continue to enjoy success well into the 21st century.
India’s surging demand
In their latest research study, “India DGSET Market Outlook 2018,” RNCOS analysts identified that diesel generator market is growing with rising demand for power back-up systems in the country. In 2013, the Indian diesel generator market grew 9.5 percentage compared to the previous year. Further, the Indian diesel generator market (upto 100 KVA) is anticipated to grow at a CAGR of around 11 per cent in value terms by 2018. The Indian diesel generator market has been largely occupied by medium range (20 to 62.5 KVA), accounting for nearly half of the total diesel generator market. Due to the high investment cost of DGSETs, end users prefer renting gensets either on a monthly or hourly basis. Major players in the Indian market include market leader Kirloskar Oil Engines Ltd (KOEL), F G Wilson, JCB Power Products India Pvt., Cummins India, Ashok Leyland, Mahindra Powerol, Cooper Corp. etc. are among the leading DGSET players operating in India. Kirloskar is expanding its dealership network, offering 24/7 support services & addressing client queries through call centres. Moreover, the Co.'s long-term service agreement program for customers, Bandhan, is expected to aid KOEL in consolidating its market presence through 2020. The Indian market for DGSET is broadly classified into four segments on the basis of kVA rating: low (5-75 kVA), medium (75.1-350 kVA), high (350.1-750 kVA) & very high (750.13000 kVA). Low-rating DGSETs constitute a major share of the market, & are used in the telecom sector for backup power in grid-connected areas & also as a main power source in off-grid areas. India is the second largest mobile phone market in the world with 500 million users & 700,000 telecom towers, which require continuous power supply - on average, the country's telecom tower network consumes over 11 TWh annually, & this is likely to increase to 17 TWh by the end of this year. “The market size for gensets is roughly about ||www.electricalmirror.net||
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1,50,000 units for the organized sector. In terms of value it goes up to Rs 6,000 crore. During 2016-17, the growth has been around 9-10 per cent. With the new products launched, KOEL is now the only organization to offer a wide range of products starting from 2 KVA to 1010 KVA DG sets in India. These additions will also help KOEL to boost their market leadership further in power generation business in India holding 33 per cent market share in this segment. According to 6Wresearch, India DGSET market is projected to grow at a CAGR of 6.64 per cent by 2022. During 2014-15, the market recorded sluggish demand owing to improvement of power infra., generation of electricity from cleaner renewable sources & surge in the prices. However, in the forecast period, with increasing investments in manufacturing sector, construction & expansion of public infra’s, ‘Make in India’ campaign & smart cities project would drive the growth of the market. In India, DGSETs with rating 5KVA-75KVA accounted for majority of the market share due to ease of availability, low cost & wide range usage of across various applications. 5KVA-75KVA rating genset market is expected to maintain its market dominance through the forecast period. Utilization of these gensets across power, telecom, infra., in unreliable & off-grid areas is also expected to drive the growth of the market. According to a TechSci Research report, “India Gas Gensets Market Forecast & Opportunities, 2020”, gas gensets market in India is projected 124 || July 2018 || ELECTRICAL MIR R OR
to witness a CAGR of more than 15percentage during 2015 – 2020. Growth in the market is anticipated on account of widening electricity demand-supply gap, low operational cost, rising industrialization, & increasing greenhouse gas emissions. Moreover, with expanding City Gas Distribution network, natural gas, which is the basic fuel used in gas gensets, is reaching to more & more consumers in the country. This is expected to boost the adoption of gas gensets in India during the forecast period. In India, gas gensets market is still at the nascent stage, & the market is being propelled by the low cost & eco-friendliness of natural gas. By 2025, according to Ministry of Petroleum & Natural Gas (Government of India), natural gas will contribute 20percentage in the country’s energy mix. Moreover, Central Pollution Control Board (under the Ministry of Environment & Forests, Government of India) has laid out various norms for regulating the level of harmful emissions from DGSETs, which is also expected to positively influence the gas-gensets market in India. On the basis of rating, the country’s gas gensets market has been segmented into four broad categories, namely, low (1kVA-75kVA), medium (76kVA-350kVA), high (351kVA-750kVA) & very high (more than 750kVA) gas gensets. Among these gas gensets categories, medium (76kVA-350kVA) gas gensets segment is anticipated to dominate the country’s gas gensets market over the next five years on account of their wide acceptance across industrial & residential sector. Region-wise, West India dominated the gas
gensets market in 2014, & the region is forecast to maintain its dominance during 2015 – 2020.
Competitive landscape & key vendors
The gensets market in India is characterized by the presence of well-diversified international & regional vendors. With international players increasing their footprint in the market, regional vendors are finding it difficult to compete with them in terms of quality, technology, & pricing. Competition among these vendors is leading to the introduction of many innovative & advanced products. These vendors also provide innovative solutions as a part of their product portfolio. The competitive environment in this market will intensify further with the increase in technological innovations, M&A, & product or service extensions. International players will grow inorganically by acquiring regional or local players. Key vendors in this market are Caterpillar, Cummins, Kirloskar, & Mahindra & Mahindra. Other prominent vendors in the market include Atlas Copco, Ashok Leyland, C&S Electric, Escorts Group, Eicher Motors, FG Wilson, Generac Power Systems, Greaves Cotton, Honda Siel Power, Kohler, International Tractors Ltd. (Sonalika), Sterling Generators, & TATA Motors. Being one of the fastest growing segments in India, the gas genset segment is anticipated to post a growth at a CAGR of close to 20% over the forecast period. Natural gas is being increasingly used as a fuel source for gensets in many industries as it is an affordable option in terms of operations & maintenance. However,
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limited availability of high-power output capacity gas gensets & the difficulties in procuring a natural gas supply, especially, in emergency situations such as floods & earthquakes, are major challenges to the growth of this segment. However, the demand for natural gas gensets will increase during the forecast period owing to the increasing use of eco-friendly fuels & the increased production & expansion of gas distribution network in the country. During 2015, the industrial sector was one of the highest revenue generating segments in the market & is likely to grow at a CAGR of more 14% over the forecast period. Rapid industrialization in the country will boost the demand for electricity & because of the deficit in the power supply; it will lead to the increased adoption of gensets in the industrial sector in India.
According to MarketsandMarkets report, the generator sales market is expected to grow from an estimated USD 18.57 bn in 2016 to USD 24.45 Bn in 2021, at a CAGR of 5.7%. The market is set to witness growth, due to growing demand for uninterrupted & reliable power supply from all major endâ€“users, such as industrial & commercial end-users. The diesel generator sales segment is expected to hold the largest share of the generator sales market, by type, during the forecast period. The diesel generator sales segment led the generator sales market in 2015
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& is expected to grow at a decent pace during the forecast period. A long running life, easy parts & fuel availability, & quick response have helped the diesel generator market grow worldwide. This segment is primarily driven by increasing demand from data centres, IT facilities, & healthcare infra. in developing regions & is expected to create new revenue pockets for the generator sales market during the forecast period. The generator sales market, in this report, has been analyzed with respect to five regions, namely, North America, Europe, Asia-Pacific, South America, & the Middle East & Africa. The Asia-Pacific market is expected to dominate the global generator sales market with the growth of the manufacturing sector in China, India, Indonesia, & Taiwan. Also, the growth of the IT industry & healthcare infra. in China, India, Australia, & Singapore has played a significant role in the growth of the generator sales market in the Asia-Pacific region. To enable an in-depth understanding of the competitive landscape, the report includes profiles of some of the top players in the generator sales market. These players include Caterpillar, Inc. (US), Cummins, Inc. (US), Generac Holdings, Inc. (US), Kohler Co (US), & Mitsubishi Heavy Industries Ltd. (Japan). The leading players are trying to penetrate the markets in developing economies, & are adopting various strategies to increase their market share. Annual DGSET
capacity installations are expected to increase by 30.9 GW from 2013 to 2018, representing a 9.9% compound annual growth rate (CAGR). Meanwhile, global revenue from the installation of DGSETs is expected to grow from $25.7 bn in 2013 to $41.2 bn in 2018. In total, 395.7 GW of cumulative capacity will be installed during that time, representing $197.9 bn in cumulative revenue. Asia Pacific & North America, which together will account for 73% of the capacity shipped in 2018, are expected to continue to be the two largest markets for DGSETs, led by China & the United States, respectively. Globally, annual capacity installations of DGSETs in the 500.1 kW to 6,000 kW power class will lead growth across all regions, but gensets in the 15.1-50 kW power class will also show strong growth.
DGSETs in the Indian market
India's DGSET market has witnessed steady growth due to power supply shortages, rising long-term infra. investments & unreliable grid supply. India's DGSET market has seen steady growth due to power supply shortages, rising long-term infra. investments & unreliable grid supply. Rapid growth in heavy industry, infra., telecommunication & the information technology sector is expected to further escalate this demand over the next five years. DGSETs are mainly used as a source of emergency power during supply shortages, or in off-grid locations. The
market has been witnessing increasing production of DGSETs with improved engine life & other features such as synchronization with the grid, remote monitoring & control, & automated data analysis. Due to the high investment cost of DGSETs, industrialists & manufacturers prefer renting them, either on a monthly or hourly basis. Various construction projects across the country, such as the implementation of the four-lane Bhopal-Biaora road & the Gujarat/Maharashtra Border-Surat-Hazira Port section road in Gujarat are propelling growth in the rental DGSET market in India. The residential & manufacturing sectors dominate the market, & cumulatively accounted for more than 52% of the market share in 2014. And, with an increasing number of real estate construction projects & anticipated growth in foreign investments in newly launched smart city projects in India, the demand for DGSETs is expected to grow through to 2020. In addition, the growing demand for uninterrupted power supply from various manufacturing facilities such as automobile & auto components is also expected to propel market growth over the course of the next 5 years. Residential sector - comprising domestic houses, residential apartments & buildings - dominates the DGSET market in India & demand is expected to be fueled by massive development plans such as the AMRUT program, which envisages the development of 500 cities. Growth in demand for DGSETs from the manufacturing sector is projected to be fueled by the booming auto component industry. India is also projected to become the second largest steel producer in the world by the end of this year. This industry requires continuous power supply for running processing units, machining, resin moulding, pressing, welding & assembling. KOEL, Cummins India, Ashok Leyland & Mahindra Powerol are among the leading DGSET players operating in India. Kirloskar is expected to maintain its leadership position in the coming years - it is increasing its focus on expanding its dealership network, offering 24/7 support services & addressing client queries through call centres. Moreover, the Co.'s long-term service agreement program for customers, Bandhan, is expected to aid KOEL in strengthening its market presence through 2020. ||www.electricalmirror.net||
Cummins India offers DGSETs in the range of 7.5 kVA-3000 kVA, 40 kVA biogas gensets & 15 kVA gensets that can be run on vegetable oil & Pongamia (SVO). Cummins has a large distribution network in the country & the Co.'s products are marketed & distributed by three channel partners Jakson, Sudhir Gensets & Powerica. Ashok Leyland operates under LEYPOWER for selling its DGSETs in India - the Co. provides DGSETs in the 10 kVA-2250 kVA range - & Mahindra & Mahindra operates its power business under Mahindra Powerol. The Co. offers DGSETs in the range of 5 kVA to 500 kVA & since 2002 has sold 270,000 diesel generators & industrial engines. Mahindra Powerol distributes its products through 70 retail showrooms & the Co.'s major end-users include telecom, government & defense organizations, the banking & retail industries & utilities. High power deficits & rapid industrialization in southern cities such as Bangalore, Hyderabad & Chennai has meant the south of the country boasts the highest demand for DGSETs. The manufacturing & auto component industries in Tamil Nadu, information technology in Karnataka, bio-technology & pharmaceutical businesses in Andhra Pradesh & tourism & general engineering in Kerala & Puducherry are among the major markets for DGSETs in this region. The western region holds the second highest position in the Indian DGSET market because it is home to the largest number of industries in the country, including iron & steel, automobile, chemical & petrochemical, jewellery, textiles, cement & pharmaceuticals. Maharashtra & Gujarat account for the maximum share in driving DGSET growth in western India. Though the power deficit in the western region is decreasing year-on-year, the demand for gensets remains constant, as they are used as a reliable source of backup power. A large number of companies operating in the general engineering, automobile, chemical, pharmaceutical, textile & IT sectors are based in Maharashtra. In 2013-2014, Maharashtra accounted for around 30% of India's export of jewellery, textiles, leather goods & pharmaceuticals. Power deficit in Gujarat is also declining. However, demand for DGSETs is still growing due to the booming construction sector. The presence of large refineries & petrochemical complexes in this region
requires reliable standby, emergency & mobile power that continues to boost demand. Indian DGSET market is broadly classified into four segments on the basis of kVA rating: low (5-75 kVA), medium (75.1-350 kVA), high (350.1-750 kVA) & very high (750.1- 3000 kVA). Low-rating DGSETs constitute a major share of the market, & are used in the telecom sector for backup power in grid-connected areas & also as a main power source in off-grid areas. India is the second largest mobile phone market in the world with 500 million users & 700,000 telecom towers, which require continuous power supply - on average, the country's telecom tower network consumes over 11 TWh annually, & this is likely to increase to 17 TWh by the end of this year. TRAI wants Telcos to switch to renewable sources of power as this would save millions of litres of diesel & in turn millions of rupees per year. Of the total number of towers, 10% have a regular power supply, & for the rest their power is supplied by DGSETs. The medium rating of DGSETs is the second largest category used in India. However, demand for these machines is anticipated to decline due to its shrinking application in the telecoms sector.
Rental power market to bridge power deficit
Although, globally, the 'rental' option is quite widely accepted & preferred over the 'own' option, it never succeeded in the Indian peninsula. This can possibly be, because of the depreciation advantage in owning the equipment & concerns of technical expertise of the rental power providers. However many factors need to be considered before one can really decide upon whether to own a power plant or simply rent it out. The uncertainty encompassing the global economic scenario coupled with pressures to reduce cost have resulted in shrinking of investment globally in the capital-intensive power sector. The Indian subcontinent is no exception to this phenomenon. The reasons for deliberation are numerous. Of late, the above economic scenario has set the pace for substitute services by power suppliers. With more conglomerates joining the bandwagon of rental suppliers, the confidence on service offerings is gradually picking up. While few could have predicted such a change, the reasons for ELECTRICAL MIR ROR || JULY 2018 || 127
it are sound & straightforward. Simply stated, uncertain times call for flexible solutions. In a market moving rapidly toward supply-anddemand pricing, industrial consumers shy away from long-term investments in major power plants & transmission & distribution upgrades. Firstly there are all of the financial liabilities involved with the capital purchase of power plant such as up-front costs, loan repayments, interest charges & other hidden fees. Then, the plant owner & operator will need their own team of engineering personnel to operate & maintain the power generating & auxiliary equipment. Also, there are necessary items such as power distribution systems & the plant's constant requirement for spares & oil supplies to be taken into consideration. Rental power provides fast-track solutions for managing growth in demand & assuring customers of a reliable power supply at competitive prices. For these reasons, industry observers expect the use of rentals to expand significantly as the booming economy increases demand & as the competitive power markets slowly take shape. When a Co. is considering whether to rent or purchase power equipment, the best choice depends on the circumstances of the business & the length of time the equipment will be used. If the power user does not make use of the power equipment on a continual or a regular basis over a long period then power rentals make good business sense. There are many factors that make power rentals attractive, including improved cash flow & speed of supply. There are no down payments for a loan for purchase purposes & power rentals have a guaranteed payments schedule over the agreed term with options to extend the rental period if required. Also, the rental option provides the Co. with operation & maintenance as part of the power rental agreement. When a manufacturing Co. rents a temporary power plant the management team is simply transferring the numerous short-term & long-term uncertainties & problems of power plant ownership to the specialist power rentals Co.. This process allows the Co. to concentrate on its core business knowing they can rely on continuous supplies of power from the rented equipment. If required, the power supply solution can be tailored to meet specific needs & later should the power supply needs increase 128 || July 2018 || ELECTRICAL MIR R OR
or decrease in size or the time needed, the power plant or the period of rental can be adjusted to suit the new demands. Choosing a distribution model for rental power is one major challenge for power suppliers. Few industry participants have leveraged their dealer networks to gain entry into this business. The model has its own risk & rewards. On one end, constant monitoring & technical & financial support is to be rendered to the dealer, while on the other end, working through a dealership relieves operational burden of the manufacturer. Another way is to offer rental power to end users directly such as Cummins, Inc., or Caterpillar do in the Indian subcontinent. The penetration for the already existing market participants is easier. However, high volume rental to low-end segments using few direct outlets becomes a difficult task & therefore, many companies shy away from this model. With a focus on providing a fuel efficient, easily operational power plant, the consultant conducts a detailed load study based on which, genset sizing is calculated. Flexibility of operations, tenure & operating hours is the hallmark of rental projects & the concept is especially useful in cases where 'load dependent start - stop' is desired. Generally a rental service provider offers a solution for more than 2 MW with a rental tenure of minimum six months. In addition to offering fuel-efficient gensets, today a rental service provider also provides synchronizing systems with state-of-the art genset controllers. In case of HT requirements, transformers too are provided. These units can be easily paralleled with other generator sets or utility power. Once the generator is delivered, it is usually up to the certified electrical contractor to connect the unit to the power distribution system for the site. For small to medium size generators, the general contractor or its electrical division is usually responsible for daily operation of the generator. This involves
checking the oil & fluid levels daily before starting the unit. Oil & filter changes are usually required after 300 hours of operation, & that service is contracted with the nearest representative of the rental services provider.
In the gensets market, there has been a significant increase in local manufacturers, dealers & distributors in recent years. Competition in nearly every part of the country is fierce. This has provided end users with a significant amount of choice when sourcing their supplier, & they are increasingly taking into account factors that go beyond price or even product reliability. These factors, of course, are important, but for end users the ability of a Co. to provide adequate technical support after the point of sale is a key consideration. Moving forward, the nature & scope of after sales support a Co. offers will be key in acquiring new business & gaining repeat business. Companies, which compete solely on the basis of price may see short term rewards but will struggle with long term client retention.
India's thrust on achieving higher economic growth rate has intensified construction activities all across the country. This has also created huge demand for power supply. According to some market research, there is a demand-supply gap of about 17 per cent in power generation. This has thrown open huge market opportunities for the power backup providing companies. The power backup market in
India is growing at an annual rate of 15-20 per cent, varying within the three different segments - generators, UPS & inverters. Major players like Kirloskar Oil Engines (KOEL), Mahindra-Powerol, Cummins India, Greaves Cotton, Ashok Leyland, Eicher, Caterpillar, MTU, Birla Power & few other imported brands are seeing huge market potential to grow in India. India's power market is growing faster than most other countries. With an installed generation capacity of 147 GW, generation of more than 600 bn kWh, & a transmission & distribution network of more than 6.3 million circuit kms, India is now the fifth largest power market in the world. The per capita electricity consumption in the country is around 665 units which is envisaged to increase to 1,000 units by 2011-12. The demand for power is typically driven by sectors such as Telecom, Commercial construction, IT, ITES, Retail, etc. KOEL is into manufacturing air cooled & liquid engines/ DGSETs with power output covering from 5kVA to 625kVA & 1800kVA to 6300 kVA. Diversifying into the power generation sector, Mahindra & Mahindra, another player to have its strong presence, had launched its Mahindra Powerol brand in the India market in 2001. The Co. realized huge potential in the segment & decided to start manufacturing & supplying complete DG sets under the new brand. This has helped them to grow their business to Rs1010 crore in 2009 from its earlier revenue of Rs 51 crore in 2005. The Co. manufactures engines which can power Diesel generating sets ranging from 5kVA to 320kVA. Mahindra had also launched B100 bio diesel generator sets for the Indian market. The Co. says Mahindra Powerol engines & diesel generator sets are certified for the stringent noise & exhaust emission norms made mandatory by the Central Pollution Control Board, India.
Europe & North America have traditionally been two of the more attractive markets for gensets companies. Home to a vast number of commercial businesses, public buildings, & two of the largest consumer bases in the world, demand has always been strong. The relative lack of small manufacturers producing low quality, cheap gensets, so prevalent in developing regions, have helped to keep prices & consequently profits high ||www.electricalmirror.net||
for the players. However the forthcoming years are likely to see a subtle change in regional emphasis, away from both Europe & North America. Though these two regions are certainly lucrative for companies with a strong market presence, there is not expected to be a significant increase in new projects or new areas of demand. Competition is fierce, with a number multi-national & local manufacturers competing with each other to acquire the limited new business that is available. Given the relative stability of the grid in these two regions, demand for prime power gensets is extremely low. Demand in the coming years is likely to be concentrated in specialist or niche applications, with demand for standard power generation equipment expected to reduce. They are, in short, very mature markets. By contrast, developing regions are likely to offer a plethora of new opportunities for genset manufacturers, packagers & distributors. Regions of interest include Eastern Europe, Latin America, The Middle East & the booming economies of India & China. The common thread that links these diverse regions includes significant economic growth, considerable investment in public infra., an expanding private sector, rapid urbanisation & population growth. Demand from the industrial, commercial & public infra. segments is expected be strong. Standard power generation equipment will generally be sufficient to meet demand, reducing the pressure on companies to produce specialist equipment, thereby reducing manufacturing costs & lead times. Demand for prime power gensets is expected to be significantly higher, given that there are low rates of electrification in many developing countries. In Africa & the Middle East for example, about 40 per cent of the market is concentrated in prime power applications, as opposed to about 10 per cent in Europe & North America. Thus, the growth potential is immense. Genset companies must be pro-active in targeting these markets, while being cautious about entering the market in the right manner. Establishing a local presence is essential. The companies will be well placed to capitalize on new opportunities by partnering with local manufacturers & by setting up effective distribution networks. In some cases, it may be advisable to set up manufacturing facilities in these regions. The lower cost of labour will keep
manufacturing prices down, while providing closer proximity to the target market. A good example of this is Kohler Power, which intends to expand its power division segment with a manufacturing plant in Abramabad, India. The Co.'s move reflects the fact that India is likely to become the largest market for gensets in the world over the next few years. The whole of the developing world will need power, & genset manufacturers will need to make the strategic alterations necessary to adjust to the new dynamics in the gensets market. According to TechSci Research report, â€œGlobal DGSET Market Forecast & Opportunities, 2019â€?, the global market for DGSETs is projected to reach $19.9 bn by 2019. Low power rating DGSET is the largest revenue generating segment in the global DGSET market due to high volume usage of these gensets in commercial, manufacturing, power utility, telecom, data center, mining & petrochemical industries. However, the very high power DGSET segment is expected to witness fastest growth among all other segments during the forecast period. The global market for DGSETs is largely dominated by Asia-Pacific due to rapid urbanization & industrialization in this region, with China & India emerging as the largest revenue contributing countries in the regionâ€™s DGSET market. During the forecast period, DGSET market in Middle East & Africa & South America is expected to grow at the fastest rate, driven by strong market growth in countries such as Brazil, Argentina, Saudi Arabia & the UAE. Globally, power demand is increasing rapidly, while supply is not growing at the same pace, thus creating huge power deficit in many parts of the world. Consequently, the demand for power generation equipment such as diesel generators continues to increase worldwide. Poor power infra. & unreliable grid power supply have been largely responsible for increasing frequency of power outages, which is likely to boost the demand for DGSETs across the globe. Rising demand for mobile DGSETs & biofuel based DGSETs is also expected to benefit the DGSET market. Expanding activity across all segments in the manufacturing sector, construction & infra sectors, & standby power from the residential segment, all add up to generating a robust demand for gensets in India, across all types & capacities. ELECTRICAL MIR ROR || JULY 2018 || 129
Rajesh K Mediratta
Director Business Development Indian Energy Exchange Limited 130 || July 2018 || ELECTRICAL MIR R OR
Please tell us about Indian Energy Exchange Ltd. and its strength overall?
e have been always at the forefront of technology in terms of providing the best platform, for convenience of the market participants. We were the first to provide , day-ahead (Jun08), then term-ahead (Sep09), REC (Feb11) and Escert (Sep17) markets
IEX is India's first and largest power exchange offering participants an automated platform to trade in Electricity, Renewable Energy Certificates (RECs) and Energy Saving Certificates (ESCerts). The Exchange enables a competitive and efficient price discovery, increases the accessibility and transparency of the power market thereby enhancing efficiency of trade execution. IEX is automated trading platform, not only facilitating trading of power by its participants, but also discovering price for the sector. The prices signals from the exchange sets reference for transactions across all segments. The strength of exchange is transparency in price setting, lower cost of transactions, payment security and managing variability in the daily demand curve. State of the art technology, competitiveness, efficient price discovery, transparency, neutrality, accessibility and highly scalable technology infrastructure are key strengths our platform. IEX has diversified and large set of participants. All discoms, conventional generators including IPPs, CPP and large consumers including commercial establishments and industries. As of May 2018, the Exchange has a registered participant base of 6500+ participants who are located across 29 States and 5 Union Territories with 4000+ open access consumers, 400 + electricity generators, and 50 Discoms. Industries use this platform to buy power more competitively and on the other hand, discoms look up to the Exchange to meet their short term demand and also optimize power procurement costs by buying cheaper power even when it has adequate power tied up in medium/long / short term.
Please elaborate the products and services that you offered to the market?
In the electricity segment IEX has diverse and vibrant market segments such as Day Ahead Market (DAM) and Term Ahead Market (TAM) which offers for the same day to upto 11 days in advance. DAM offers standardized contracts
of 15 minutes allowing participants to trade for electricity for a day in advance. It is a deliverybased market that provides flexibility to trade as low as 100 KW and facilitates price discovery for every fifteen minutes block for the next day as well an overall price discover on a daily basis. Today, IEX dominates the space, with an average market share of over 97% of total volume traded through power exchanges. In FY18, the total volume traded across all market segments saw an increase of 26% with 56,822 MU traded. The electricity traded through IEX accounts for 38% of the power transacted in the short term market. IEX has been actively serving the renewable energy sector through REC (Renewable Energy Certificate) since 2012. Over the years, the acceptance of this particular segment has been progressing well. Every year, about certificates worth 45 Lacs are issued for about 5000 MW of REC projects, however, demand is expected to be more than available RECs. So now again, there is demand of RE projects to register under RECs. This surge has facilitated the demand for RECs. Thus, IEX is facilitating development of RE through â€˜greenâ€™ power market. Many of renewable generators, particularly solar generators, have started selling in our normal day ahead market (DAM). About 14 solar generator projects with total capacity of 525 MW are registered with IEX, three of them are selling continuously. This year, the prices in the day- ahead market are higher by 40 per cent as compared to last year ensuring better returns than solar bid prices. Competitive pricing are seamless transaction process are attracting the developers to the Exchange. In addition to this, IEX has become the first power exchange to trade in energy saving certificates (EScerts) in September 2017. A total of 12.98 lac were traded last year.
What new innovation in technology and services we can expect from you?
We have been always at the forefront of technology in terms of providing the best platform, for convenience of the market participants. We were the first to provide , day-ahead (Jun08),
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then term-ahead (Sep09), REC (Feb11) and Escert (Sep17) markets. Further, we have also provided straight-through processing of settlements with our market participants on trading day itself. Real-time curtailments are handled in smooth manner. We have also been providing very robust and credible solution to the market without any dispute and error in last 10 years. We have also provided all information on market data giving price, volumes, area prices and volumes. These data seen We have developed SMART procurement software, a tool for discoms to optimize power purchase. We are in the process of implementing this tool in many States. Till now, our day-ahead markets – have single and block orders. We propose to provide more order types to suit thermal coal based generators. Going forward our focus would be • To introduce new bid types in DAM and TAM to help both buyers and sellers to participate on exchange more efficiently • Create Green Power Exchange platform to integrate greater number of RE generators, particularly solar and wind generators • Promote use of SMART procurement by discoms to optimize power purchase
What are some of the immediate interventions require in subjected to renewable sector?
In the renewable sector, we feel that markets can provide instruments to facilitate transactions from RE rich States to deficient States so that costs associated with green power are distributed across all States. Green power impose two restraints on the host discom and host States- that has to be absorbed as must-run and their fixed costs (which generally has been higher than conventional generation so far) are to be paid on energy generated. Exchanges provide green attributes to be traded through REC segment. We ropose to provide further solutions to handle two emerging challenges – i. Green power market - trade of green power in short-term and ii. Better intra-day
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markets – to handle variability of wind and solar generation. We are working to develop a green market so as to facilitate discoms and merchant RE generators to sell green power to RE deficient entities.
charges for sale both whereas it should pay on net transactions ( net of purchase-sale), so should be required to pay less. This anomaly increases cost of power for sale in intra-day, which needs correction.
Intra-day Market - Gate Closure time to be reduced to facilitate transactions in new scenario
Short term markets in the country have remained low at 10% since last 10 years. There has been less focused policy-making towards creating more vibrant and comprehensive markets. Power exchange based markets have grown from 0.8% of total energy generation in the country to 3.8% last 10 years. In most of developed markets, exchanges have market share of 10-80%. So, exchange based transactions have yet to grow significantly to be significant, PPAs and MoUs for power plants have already been signed for more quantum than peak demand in many States so as to get coal linkage and sign Fuel Supply Agreements to ensure domestic coal supply. Policy of firm coal supply to power plants with PPA – has been major bottleneck in making more power available to short-term markets.
Generators and Consumers should be allowed to buy/sell respectively in intra-day market:
Reduction in duration of PPA: Term of PPAs which is normally of 25 years, should be reduced to 10-12 years only for comfort of lenders. Later, these plants should be selling their output in the market based on their merit.
What are the biggest deficiencies in power market now; and how do you cope with these hurdles?
of High Renewables. Open Access registry expected to enable this reduction in gate closure.
In the current framework, generators are not allowed to buy & consumers are not allowed to sell power which prevent their ability to minimize their deviation. Therefore, it is proposed that they should be allowed to buy/sell at least in the intra day market.
Waiver of transmission charges on intra-day transactions : As in developed US markets, there
is no transmission charges levied on intra-day transactions. Intra-day markets are only 3-4% of day-ahead markets which in turn is about 3.7% of overall generation. Overall intra-day market constitute of 0.2% of total electricity generation. Till it becomes bit more significant, transmission charges may be waived off.
What are your upcoming plans include; what additional facilities will you add on in nearly future?
We are planning to develop and grow in the
No renewal of Long term PPA beyond 25 years following areas and segments. Long term PPAs for base load only: Long term Cross Border Trade through Exchange: MoP PPAs should only be signed for base demand of the discoms, rest should be managed through medium and short term markets. Over contracting of PPA leads to payment of capacity charges even when discoms are not utilizing the generation.
guidelines issues in December 2016 allowing Term Ahead Market for CBT. We are awaiting final regulations from CERC allowing Cross-border transactions through exchanges.
The transmission allocation and charges are currently being applied for long-term, medium and short-term basis. In case, discom finds itself surplus power during sometime in day, and sells in day-ahead or intra-day, it has to pay transmission
resolution of jurisdiction issue to allow Monthly and Quarterly delivery based contracts on IEX. Post such clearance, exchange will file application with CERC for approval.
Longer duration delivery contracts (monthly/ Rationalisation of transmission charges. quarterly) on the Exchange – CERC to expedite
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Are Indiaâ€™s Solar Dreams Realistic 134 || July 2018 || ELECTRICAL MIR R OR
urge of new tenders & fall in module prices bring hope to the sector
Indiaâ€™s total installed capacity is estimated to have reached 23,748 MW as on 31 Marâ€™18. This includes utility scale solar capacity of 21,331 MW (90%) & rooftop solar capacity of 2,417 MW (10%). 4 southern states along with Rajasthan continue to lead with 70% of total installed capacity.
Q1 2018 saw commissioning of 3,766 MW of utility scale projects including 1,359 MW of open access projects. Out of a total of 3,650 MW of tendered projects that were scheduled/ anticipated to be commissioned in the quarter, 2,407 MW capacity has been commissioned. The underperformance has been caused by execution delays in SECI tenders in Maharashtra, Odisha & Andhra Pradesh.
Adani commissioned the largest capacity in Q1 (640 MW) across Karnataka, Chhattisgarh & Maharashtra. It was followed by Hero (300) & Acme (260). In module supply, Canadian Solar was the largest module supplier with 455 MW DC capacity supplied for projects commissioned in Q1 2018. It was followed by Trina (398), GCL (375), JA solar (363)) & Risen (307). The top five suppliers had a combined market share of 56% by capacity commissioned. Huawei gained market share (22%, 757 MW) in the inverter market in Q1. It was followed by ABB (584) & ||www.electricalmirror.net||
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Sungrow (527). Domestic module manufacturing volume in the quarter was 821 MW, up by 19% over previous quarter. Mundra (200 MW), Vikram Solar (166) & Waaree (84) were the top three manufacturers. Q1 2018 witnessed significant increase in issuance of new utility scale tenders. 13 new utility scale tenders totaling 11,945 MW were issued, 68% more than in entire 2017. But rooftop solar tender capacity (size >1 MW) was down 50% at 102 MW. Auctions were completed for three tenders with total capacity 2,560 MW but they were all affected by ongoing safeguard duty uncertainty. Karnataka 860 MW state tender saw only 640 MW of allocation at tariffs of INR 2.94 - 3.34/ kWh. Another 1,200 MW tender in the state was also undersubscribed with only 550 MW of allocation to ReNew (300 MW, INR 2.91/ kWh), Avaada (150, 2.92) & Azure (100, 2.93). Gujarat canceled its 500 MW tender after the auction, deeming winning tariffs of INR 2.94-3.34/ kWh too high. After steadily rising for about 6-9 months, EPC cost & module prices began their downward trajectory. EPC cost for utility scale projects fell marginally to INR 38/ W due to reduction in module prices (USD 0.33/ W, down 6% over Q4 2017). Q1 saw increased activity in PE deals in the sector. Canada Pension Plan Investment Board (CPPIB) bought out Asian Development Bank’s (ADB) 6.3% equity share in ReNew for USD 144 million. SunSource Energy & Orb Energy, both
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rooftop solar EPC players, also raised funds from varied group of investors. Vector Green, owned 100% by an IDFC Alternatives fund, acquired 2 projects of 20 MW each in Madhya Pradesh from IL&FS. MNRE’s push to issue new tenders & falling module prices have provided much needed relief to the industry at a time when duty uncertainty continues to remain a major concern for all stakeholders. There is no clarity on the duty announcement timeline, creating a really challenging situation for the industry. Tariffs have increased marginally as a result but DISCOMs seem unwilling to accept higher tariffs. While Q1 saw substantial capacity addition, slowdown will bite hard over the next three quarters. Weak tender activity in late 2016 & early 2017 means that expected capacity addition in next few quarters is likely to be only about 700-1,100 MW per quarter.
Even with the threat of duties, falling tariffs, weak power demand & various policy challenges, bulk of respondents are optimistic about the industry & its growth prospects. Sentiment regarding total solar power capacity addition by Mar’22 is in line with previous year. Most respondents believe that India will achieve total solar capacity of 50-75 GW by 2022, a little over 60% of the Govt. of India’s target. 60% of respondents expect total rooftop solar capacity to be less than 10 GW by Mar’22. Wind power has undergone a compete paradigm shift in the last year by moving from
feed-in-tariffs to auctions. Despite the resulting disruption, 58% of the industry believes that India would achieve a total capacity of over 50 GW by Mar’22. OA prospects seem largely unchanged from last year. Most respondents feel that India will add about 6-10 GW of open access power by Mar’22. Notwithstanding the ongoing safeguard duty investigation & the Govt.’s Make in India push, the industry is pessimistic about module manufacturing prospects in India. 61% of the respondents believe that India will have less than 3 GW of integrated manufacturing capacity by Mar’22. Outlook for individual business growth seems a little muted in comparison to last year. Most industry players believe that their business shall grow by 3-5x by 2022. India's utility solar capacity grew by a whopping 72% in 2017-18 over the previous year, says solar Consultancy Bridge to India in its latest annual report on the sector. It installed 9.1GW of utility solar against 5.5GW in 2016-17. Total solar installation was 10.4GW, the rest comprising rooftop solar plants & off-grid solutions, taking the country’s cumulative solar capacity to 24.4GW. Solar capacity addition in 2017-18 was higher than that of all other energy sources, both conventional & renewable, combined, the report notes. In comparison coal & wind only added 4.6GW & 1.7GW resp. Among the states, Karnataka added the most capacity at 4.1GW, which was 46% of total capacity installed in 2017-18. This also makes
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Karnataka the state with the largest commissioned solar capacity in the country, at 5.2GW. The report notes that the open access market in the state grew substantially because of favorable exemptions under its solar policy, but that these are being phased out from this year. The second highest cumulative capacity was in Telangana (3.28GW), followed by Rajasthan (2.3GW), Andhra Pradesh (2.28GW) & Tamil Nadu (1.86GW). Adani Green Energy, Renew Power & Acme Solar were the top three developers in 2017-18, installing a total capacity of 2.3GW between them, according to the study. Indian solar market has grown spectacularly over last 4 years. But we are still only at 24.4GW, way short of the 100GW target. GoI had set the 100GW target in 2015, as part of an overall RE target of 175GW for 2022. Recently, the new & RE ministry announced it expects to surpass this target to reach 227GW, including 113.5GW of onshore solar & another 31GW of floating solar & wind. The study, however, estimates that capacity addition will be lower in 2018-19 because of a slowdown in tender activity in late 2016 & early 2017. The majority of installations this year were driven by state Govt. tenders. While falling prices & Govt. support have helped in boosting demand, supply side factors like land & transmission still remain a concern. There is also the fear of safeguard duty being imposed on imported solar equipment, as the DG of Trade Remedies examines a complaint from domestic manufacturers on the matter. In early January, a provisional safeguard duty of 70% 138 || July 2018 || ELECTRICAL MIR R OR
for a period of 200 days had been suggested, but a final decision will be taken after a public hearing later this month. As in previous years, rooftop solar installations have been lagging, says the report. Total rooftop capacity stood at 2.4GW as of March 2018, with around 1GW having been added in 2017-18, against a target of 40GW by 2022. Growth in rooftop solar slowed down marginally in the year due to GST & safeguard related uncertainty. Solar tariffs reached a record low of Rs 2.44 per unit at an auction held by SECI for 500 MW of projects at the Bhadla Solar Park in Rajasthan in May’17, but have been rising slowly since then. Even so, solar tariffs compare favorably with the cost of thermal power. In just the first half of the year, India’s booming RE sector has seen M&A deals worth over $2.5 bn (around Rs. 16,631 Cr.). In April, ReNew Power, India’s largest RE company, acquired New Delhi-based Ostro Energy for around $1.5 bn, what has been the biggest such deal in the country so far. & now, Greenko, a Hyderabadbased renewable power producer, is set to acquire Orange Renewables at an enterprise value of $1 bn. Backed by Singapore’s GIC & the Abu Dhabi Investment Authority, Greenko has just raised $447 mn from its existing investors to fund the acquisition. Greenko currently operates around 3,000 MW of wind, solar, & hydro power projects. Following its acquisition of Orange Renewables, the company will have a total installed capacity of around 4,200 MW, taking it to the second place in the country’s renewable power sector.
In addition to scaling up operations, Greenko’s acquisition of Orange, a 100% subsidiary of Singapore’s AT Holdings, will help it diversify into the energy storage space. The acquisition is Greenko’s second major M&A deal, coming two years after it acquired the Indian assets of American RE giant SunEdison, which went bankrupt in 2016. Analysts suggest that this is only the beginning of the consolidation that the Indian RE sector will see over the next year. The industry witnessed a shake-up last year, with both wind & solar power tariffs crashing to record lows & CoS having to face multiple policy & regulatory issues. Now, as the sector turns around & matures, there will be more such acquisitions of smaller CoS by larger ones that have weathered the challenges. Only the strong hands will survive. This acquisition of Greenko-Orange is a step in that direction. Firms such as ReNew Power, Greenko, & Tata Power, with installed capacities of several thousand MWs, will be driving growth & acquire smaller players that can’t compete in a market where the internal rate of return; the yield an investor gets on investments; are low. The consolidation will also help CoS raise funds. Earlier Indian renewable power producers were heavily dependent of private equity funds & foreign investors. Now, they are looking at public markets. For instance, ReNew power, in May, launched the first IPO from the sector on the Indian bourses; more are set to follow. ReNew was the first to hit the block, but seems Greenko is also moving in that direction ||www.electricalmirror.net||
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so that’s why they are scaling it up & combining the resources. Funding will also let firms expand into emerging areas within the clean-tech space such as energy storage or offshore wind power. Greenko, for example, now intends to focus on integrating energy storage facilities with its renewable power plants. That’s because one of the drawbacks of the sector is that wind & solar power are infirm & don’t run round the clock, leading consumers to lean back on coal or gas-based power plants. However, integrating storage facilities will help stabilize renewable power. In a market where renewable addition is far higher than the base load (coal-based power) right now, balance is the key issue. Going forward we want a stable RE instead of a standalone RE.
India second largest solar market
With 11 GW, India is set to become the second largest solar PV market in 2018, usurping the U.S., as global demand reaches 113 GW, says IHS Markit. It adds that Q4 will be the biggest quarter in history for installations, with 34 GW expected. India will become the second biggest market in 2018 on the back of developers looking
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to secure modules before tariffs are introduced. Upping its original forecast for this year, from an anticipated 108 GW of new solar PV installations, IHS Markit now expects 113 GW driven, once again, by demand in China, which has successfully transitioned from a utility-scale market to one with a strong focus on distributed PV. This represents growth of 19% in 2017, which saw just under 100 GW installed. This latest forecast is close to the global polysilicon limit manufacturers can supply. At this rate of installation, module availability will once again be the limiting factor, & prices may limit investment returns on solar projects already under contract to sell electricity at low prices. Stable module prices are expected throughout the year, which is a direct result of continued high demand. As has long been clear, China is set to continue its reigning role with between 53 & 60 GW, or around a 47% market share, according to the latest PV Installation Tracker Q1 2018. Two sharp installation peaks are expected in Q2 & Q4 on the back of feed-in tariff deadlines. India meanwhile, will usurp the U.S. to become the second biggest market in 2018 on the back of developers looking to secure modules before tariffs are introduced. Analysts at IHS Markit tell
that they expect to see 11 GW in India this year, while the U.S. should install 10 GW. Bridge to India, however, has recently forecast that India will install just 6 GW in 2018 following the recent trade conflicts, down from 9.3 GW in 2017. If IHS Markit’s estimate does prove accurate, it will be the second time in a year that the U.S. has been overtaken: in February, GTM Research found that Latin America was the largest solar tracker market in 2017, kicking the U.S. to second spot. Emerging markets are also set to step up their game this year. In particular, Mexico & Egypt will enter the ranks of the top 10 biggest solar markets, kicking out South Korea & the U.K., with an 1.8% & 1.3% share of the global market, respectively. Overall, the top 10 markets are expected to install 92 GW of the 113 GW capacity, says Berg. They are: China, India, United States, Japan, Australia, Germany, Mexico, Brazil, Turkey & Egypt. The United States continues to import modules, despite the latest import tariffs. In emerging markets, countries like Egypt, Brazil & Mexico have large PV projects requiring modules in 2018. Several projects that were postponed in 2017, due to high module prices, will need to be installed this year. Two weeks ago, IHS Markit said it expected ||www.electricalmirror.net||
Europe to install just 11 GW in 2018, up from around 9 GW in 2017, meaning the remaining 102 GW will be installed outside of what was, up until 2013, the world’s leading region for solar PV. The Spanish market is predicted to become Europe’s fifth-largest PV market this year, while leading the pack will be Germany, Turkey & France. Overall, the last quarter of the year is expected to be the biggest in history, with a record 34 GW of new installations expected. In comparison, at the end of 2017, Bloomberg New Energy Finance said that with an expected stabilization of the polysilicon market, improved cost-efficiencies on the upstream side & increased efforts to meet 2020 energy targets in Europe, demand in 2018 should be between 94 & 111 GW.
Challenges and driving forces
Not surprisingly, the current bidding environment is irrationally aggressive. Tariffs ought to move up particularly in view of the increasing tender issuance, but it remains to be seen if DISCOMs are willing to accept that. The three biggest concerns are safeguarding duty threat, poor policy environment & weak financial condition of DISCOMs. Storage has been talked about as a vital component of clean energy grid, but it ||www.electricalmirror.net||
is yet to find acceptance in India. The industry feels that high cost, lack of awareness & enabling policy environment (in that order) are restricting the growth of this market. While the interest, economics, & resources are in place, regulatory hurdles & a lack of Govt. support could still stall this newfound momentum. For one, the policies of most Indian states are unclear when it comes to corporate use of RE. An important element of rooftop solar power is net metering, a mechanism that lets users sell surplus power generated to the state electricity utility. & most Indian states don’t have net metering policies. We don’t have a battery backup. So, on Sundays & holidays, we are generating power, but it goes waste. Almost 16% of the power we are generating in a year is not getting utilized. As industrial users increasingly take to renewables, the already financially-stressed Govt.-run power distribution firms lose a large chunk of high-paying customers. So, states have no incentive to promote green energy. For instance, CoS that choose to buy power from private firms have to pay a host of regulatory charges called open access charges which include levies for using the state grid or a cross-subsidy charge to subsidize agricultural &
residential buyers. Nevertheless, corporate India’s shift towards sustainable power consumption is here to stay. Overall, (not using clean energy) has become almost an exception. Gujarat (followed by Madhya Pradesh & Andhra Pradesh) tops ratings for the most favorable state for policy framework (clarity & visibility), land acquisition, transmission capacity, permits & approval process. The three worst states on these combined parameters are Maharashtra, Tamil Nadu & Haryana. Karnataka is understandably the overwhelming favorite for open access projects because of its very attractive policy & ease of getting approvals. It is followed by Andhra Pradesh & Tamil Nadu. The bottom three states are Rajasthan, Maharashtra & Gujarat. Madhya Pradesh, Maharashtra & Haryana are the most preferred states for rooftop solar. Less enthusiasm for Tamil Nadu, Punjab & Uttar Pradesh. Tapping RE is a major economic opportunity for developing economies like India. There is a master plan to clean up cities & this would lead to more jobs. But we need to invest & corporate world is taking money out of the carbon-related business. It is all about how to use resources with the highest most efficiency. This is also referring to money. India needs a plan for all states & all villages with technical proposals & investment demands. & suddenly the whole 'problem' turns into a huge develop India venture. Look at all the biomass you are throwing into landfills. Millions of litres of oil polluting the environment. This could be energy & fertilizer. If you do the numbers on a large scale, you will see (the solution). The problem is the complexity of opportunities, i.e., fertilizer, energy, environment protection, local jobs plus climate protection. All this has to be calculated together. The use of solar-powered water pumps in India could save millions of rupees for the provincial Govt.s, which could use this money for education or more investment in RE. On some of India's most polluted cities in the world, shifting investment towards renewables will help the economy. Targets should be more ambitious in order to push the country's technical & scientific brains, he said. Aim for 100 percent & make a proper time schedule. That's what Germany did & so far, all parties have stuck to 2050 as the final date for goodbye ELECTRICAL MIR ROR || JULY 2018 || 141
to fossil fuels. In Germany, Govt. programmes helping CoS to reflect on their consumption & their opportunities in the market with the help of efficiency & RE. (Investment advisory) DEG is offering RECs (resource efficiency checks) for CoS as a customer service. On high emissions in China, China will consequently improve because of industrial policy strategies. They got the numbers & the opportunities & will do it. Unfortunately, they will also continue to sell coal to Africa & Asia together with old technology. But in China, despite the nightmare situation, we have seen a change. India has low industrial development. You have the unique chance to avoid all the mistakes & misallocations of capital by opting for a shortcut in energy supply. It would greatly help to fight poverty & push India technically & scientifically. CoS are aware & are investing directly for own supply or in divestment, i.e., taking money out of carbon-related business, an optimistic Heck said, adding: The fossil ones will be the losers. The 2018 National Electricity Plan sets India on a similarly ambitious trajectory of a staggering 275 GW of renewables by 2027. The boom in the renewable energy sector in India has attracted investors from abroad. The ambitious target of 100 GW by 2022 is tough, & to achieve this mission, India solar sector requires investment from foreign countries. In 2015, the solar sector had secured more than $278 million through various avenues. The international business consulting firm KPMG forecasts that the market share of solar power in India would be 5.7 percent (54 GW) & 12.5 percent (166 GW) in 2020 & 2025, respectively. Several countries look at investing in the renewable energy sector in India. In 2016, the U.S. & India partnered to launch the U.S.-India
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Clean Energy Finance (USICEF), an initiative to help promising distributed solar projects develop into viable investment opportunities via essential early-stage project preparation support. The massive push for solar energy opened up ways of employment with hopes to reduce the poverty rate in India. In fact, 22 percent of the population or 270 million people live below the poverty line in India. Clean-energy jobs are seen as a game changer in India’s rural & urban areas. There are various positions of job profiles that have opened up due to India commitment to go solar. Jobs like installation, operations & maintenance, sales & more. Many of these jobs provide steady incomes, healthcare benefits & skillbuilding opportunities for unskilled & semi-skilled workers. A report by World Resource Institute ‘Can Renewable Energy Jobs Help Reduce Poverty in India?’ states that in addition to improving energy security, enhancing energy access & mitigating climate change, renewable energy may be able to help reduce poverty by creating good jobs that poor people can perform. The majority of jobs in the sector are contractual & do not offer benefits or job stability. Permanent jobs in the sector have the potential to reduce poverty, but they need strengthening before they become “good” jobs. Most poor people face barriers to entry to training & the job market. Few programs include features that help reduce poverty, such as capacity building, development of ownership opportunities or the inclusion of women. The absence of data makes it difficult to establish connections between jobs in renewable energy & poverty reduction. India depends heavily on fossil fuels. Energy production & consumption accounts for 58 percent
of India’s greenhouse gas emissions & is projected to grow exponentially in the coming decades due to a rising energy demand associated with urbanization, better living standards & economic modernization. As a result, clean energy is the main focus for the Govt. of India in the coming years. In order to meet the commitment under Paris Agreement, India must dramatically boost solar & wind power to light up millions of houses that still lack electricity. Due to the initiatives by the Govt. of India, India is looking at renewable energy options & acts as a home for the largest solar plants in the world. The Govt. schemes & policies have contributed in transitioning from fossil fuels to clean & green energy in India, & with solar tariffs falling to a record low, new Govt. schemes to encourage rooftop installation has put India on the map in the renewable energy sector. Being a part of this renewable energy sector has the potential to create jobs, reduce poverty & propel India into the ways of the future.
Are India’s solar dreams realistic
We’re racing forward on the solar-power front, building parks set to be among the biggest in the world. Can we keep up with our targets? Eight minutes & 20 seconds. That’s how long it takes for sunlight to travel to Earth. & India has never been better prepared to receive it. As part of the world’s largest renewable-energy expansion plan, India is banking heavily on sunshine to meet an ambitious target. In four years, it expects to have 175 GW of energy coming from renewable sources; with 100 GW of this to be solar power. Twelve years from now, the plan is for 40% of all the power we use to come from renewable energy, up from 18% today. Meeting the 2022 deadline is expected to cost Rs 125 bn (Rs 8.5
tn), but if we make it, India will be the biggest solar energy generator after China & the US, a daring, expensive dream for a nation whose solar programme started much after those two nations. It’s also a goal India can no longer put off. Electricity consumption has skyrocketed in the last two decades; we now use twice as much energy as we did in 2000, & eight times as much as in the 1970s. The estimated fuel costs to power India are enormous, & it’s devastating for the environment. More than half our power currently comes from burning coal & natural gas; they heat up the planet, they pollute, they’ll eventually run out. India is well placed to harness solar energy. Most regions receive plenty of sunshine, & arid land can be given over to installing solar panels. Large-scale parks are the most feasible way to generate electricity, given the large populations & growing demand. When China started its solar journey a decade ago, the goals were size, speed & efficiency. Unlike the US & Germany, which encouraged rooftop panels to harness sunlight piecemeal, it introduced solar-friendly subsidies, began manufacturing photovoltaic cells on an industrial scale, & covered massive swathes of land & water in gleaming solar parks. China is now the world’s largest solar power generator. Last year alone, it added 53 GW; more than half of all new global solar capacity in that year. It’s also home to the world’s largest solar park, the 1.5 GW project in the Tengger Desert. The numbers might look different in the coming years. Falling Govt. subsidies suggest China’s solar power growth will be slower in 2018. Of the world’s 10 largest solar parks under construction, only 1 is in China. But five are being built in India, two of which are bigger than China’s biggest. In fact, there’s even a 5 GW park on the cards, in Gujarat’s Dholera Special Investment Region. By 2022, India expects to have 38 solar parks selling power to state-owned companies to supply to end-users. Unlike dams for hydroelectricity, a solar park is easy to build & there are fewer problems with geological sensitivity, losing forest cover & displacing people. India has already achieved a key step in promoting the use of clean energy. In 2017, solar power became cheaper than grid power for most commercial & industrial customers. China, which gets proportionally less of its total ||www.electricalmirror.net||
power from solar, hopes to achieve the same only by 2022. India’s biggest parks are being built in Karnataka, Telangana, Rajasthan, & Gujarat. essentially, sunny regions where there is vacant, arid land. But across the country, farms, airports, hospitals, campuses, malls & office complexes are setting up their own solar power systems. Panels are getting less expensive, making the sun’s energy more viable to use. Urban homes & residential societies, however, haven’t been as enthusiastic. Institutional projects are easier, there are few decision makers. It’s harder to get 150 homeowners to agree to invest Rs 60-80 lakh in an electrical system that takes 10 years to break even.
Grid view: here’s what it takes to harness the sun’s energy…
A solar park with a capacity of 1MW would need 5 to 6 acres of land covered in solar panels. This would cost about Rs 7.5 crore to set up (not including the cost of the land). 25 sq km is the amount of land that would be needed to solar power Delhi. 19 sq km is the amount of land that would be needed to solar power Mumbai. Just to put that in perspective, the area of Panaji city, the capital of Goa, is 21 sq km. To solar power all of India, we need panels covering an area 2-3 times the size of Goa. 0.2 sq km is the area Diu has covered in solar panels to power its 42-sq-km city of 52,074 residents during the day. About 1,000 sq ft is the amount of land needed to solar power a 3-bedroom home for an urban family of four. This is why rooftop panels can only be part of the solution. Gigantic swathes of land or water, covered in solar panels, is the most feasible way of harnessing the sun’s power. The electricity generated is sold to state Govt. grids, who then supply it to consumers. Even if they were enthusiastic, space is an issue. In vertical cities such as Mumbai or Gurugram, there often isn’t enough sky-facing space to generate power for all residents. Also, battery packs to store solar power are expensive & need regular replacing. Institutional projects, however, are growing in scale & number. In Amritsar, Punjab, a 19 MW project across the 82-acre campus of the RSSB Educational & Environmental Society is the largest rooftop solar project anywhere in the world. In
Kochi, the international airport is India’s first fully solar-powered one, with a 12 MW plant. In the solar industry, size matters, but so does technique. The industry is new, so grandiose central Govt. plans fumble at the state level. Often, power grids are unable to access, transmit or cope the intermittent power supply from the new parks. Power distribution companies have not been guided on the mix of coal & power use for their grids. The industry essentially needs systems that allow power to be evacuated from areas of concentration. In regions where excess power is being generated via the sun, there aren’t enough ways to store it. A series of Green Energy Corridors, with high-voltage lines & renewable energy management centres, are being planned to address these concerns. Both are running behind schedule. A central Govt. committee on the matter has said we need to install five times more transmission lines in 2018-19 than we did in the previous year, to keep the power flowing. A major concern is India’s scattered state policies for rooftop systems that are connected to the electricity grid. An office complex or mall may use much of its power in the day, while homes tend to use more electricity after sunset, when everyone’s home but the sun isn’t shining. Institutions with rooftop panels also harness solar power on holidays.” Net-metering systems; which offset units contributed to the grid against units drawn from it; are a good way to promote rooftop solar use. Customers pay lower bills & recover the cost for their panels faster. But states have varied polices about this. Some limit the amount of energy you can send to the grid, some companies don’t want to ‘buy’ from small-scale rooftop systems at all. This prevents widespread use. In addition, there are environmental concerns associated with solar parks. The panels need weekly cleaning for peak efficiency & while larger parks can afford robotic systems to dry brush, smaller ones use water; lots of it. The total land required to power all of India by the sun isn’t much; an area two to three times the size of Goa. Everyone agrees that solar energy is necessary & a good investment. But it’s not clear whether we’ll be able to raise those trillions for our growth ambitions. There’s too much left to do.
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LED lights have emerged as a powerful source for lighting over the past several years. Due to their numerous advantages over conventional lighting tech., they have swiftly gained prominence in the Indian lighting market. Although Indian LED lighting market is at a nascent stage, it offers innumerable opportunities for growth over the next few decades. As India represents one of the biggest lighting markets, it offers a lucrative option for LED manufacturers to set up their facilities in the region. Skilled labour, ease of doing business & demographic advantages provides a sustainable environment for the LED industry. Currently, the demand for LED lighting systems is primarily concentrated in the North & South regions due to growing urbanization rates & increasing number of Govt. initiatives that encourage the use of LED lights. The Govt.’s support through various regulations that promote the investments in energy efficient lighting technologies has expanded the applications of LED lights across various industrial, commercial & residential sectors. A rapidly growing automotive industry also provides productive opportunities for the use of LEDs in head lamps, rear lamps, turn signal & brake lights. Other imp. factors such as increasing infrastructural investments, rapid growth of street lighting systems, decline in average prices of LEDs & various Govt. & upcoming smart building projects are expected to drive the demand of LED lights in India. According to new report published by IMARC Group, the Indian LED Lighting market was worth US$ 1.5 Bn in 2017, growing at a CAGR of around 52% during 2010-17. Moreover, easy availability at affordable prices coupled with distribution of LED bulbs by Indian Govt. at subsidized rates to promote the use of LED lights over halogens & incandescent lighting products is augmenting demand for LEDs in the country. Indian lighting market has seen positive trends in the past years & so did the LED lighting market. The Indian LED lighting market in precedent years has been witnessing tremendous growth in terms of value as well as volume. The governance of market is maintained by the exhaustive efforts being done by the Govt. through various schemes such as UJALA & SLNP as well as the efforts by the major players in terms of bringing awareness in India. India is a market of huge opportunity & it will continue to grow at a healthy rate in the next few years to come. LED lighting industry which was struggling in the initial years to get a market has finally seen a tremendous rise in the market share in just last 3 years. LED lighting market has literally increased in a very steep manner & the major factor behind this was the Govt.’s initiatives of providing
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LED light 9W bulbs at a cheaper rate than the market as well as the program for replacing the traditional street lights with LED street lights. The other factors which have made this sig. impact are the advertisements for increasing the awareness of LED lights amongst the people as well as the new architectural designs which have boost up the growth of LED Panel & LED Down lights. Philips & Surya Roshni have emerged as the big players in the LED lighting market acquiring almost 30% of the total market share while Havells & Bajaj are also sig. players. Another catchy factor in the LED market is the presence as well as acceptance of products of the Local players which makes it a lucrative market for the budding enterprises. The wind of the transition from the CFL & incandescent bulbs to LED lights is gaining pace with major population replacing the old lights when stop working with the LED lights. Use of solar LED lights is also gaining momentum in the rural areas of India. Govt. is yet supposed to distribute nearly 52 Cr. LED light bulbs under UJALA. With a wider market to be penetrated as well as the re-purchasing market the LED lighting market in India is expected to perform very well in the future years.
UJALA scheme: 80% non-compliant with BIS regulations
Indian LED lighting industry is going through a boom phase. According to some estimates, the market has grown at a CAGR of 17.5% between 148 || July 2018 || ELECTRICAL MIR R OR
2009 & 2016 & is now worth around $3.7 bn (with LEDs at around 40% of the market share). This makes the industry worth much more than the total GDP of over two dozen countries around the world. GoI’s UJALA program, the world’s largest non-subsidized LED bulb distribution scheme, has given the industry an added push. Over 250 mn LED bulbs have been successfully distributed under the program. The eventual target is to replace 770 mn incandescent bulbs across India with LEDs. Such a humongous production target opens up prospects of great employment opportunities & exponential growth within the industry. However, the situation is not so straightforward. Market distortions due to corruption & illegal activities have always been a bane for India & the lighting industry is no exception. According to a recent study by ELCOMA, the manufacturers’ umbrella body, across three Indian metropolitan cities, 54% of LED brands & 63% of down lighter brands are non-compliant with industry regulations. This makes more than half the lighting market illegal in its operations & out of the purview of tax authorities in these cities. The situation can only be worse in smaller cities. Moreover, about 80% & 77% of LED & down lighter manufacturers were found to be non-compliant of BIS safety regulations. This puts the consumers of these goods at risk. Such disproportionately high levels of illegal operations diminish the gains that the economy can make
from a thriving manufacturing industry. First are the employment losses that are generated as a result of these illegal manufacturers. Such operators either illegally import finished products from China/ merely assemble imported parts in India; reducing any requirement for labour within the country. Second, since the illegal market evades taxes by definition, it results in a huge loss for the national exchequer. When more than half the market is unaccounted for, a $4 bn industry can be said to amount to at least twice that number. With a GST of 12% on LEDs, the loss in revenue should sum up to approximately $0.5 bn. Finally, by not complying with safety standards, these operators put at risk quite a few consumers, most of whom are at the bottom of the pyramid. Apart from these inimical effects on the economy, such illegal operations tend to distort the pricing of the market as well. Since this segment of the market does not have to incur the cost of compliance/ pay any taxes, their costs of operation are lower than the rest of the market. Due to these reasons, products manufactured through the legal route have a price mark-up of about four times in the LED market. Hence, unless the consumer is brand & safety conscious, the illegal market keeps capturing a higher market share. This creates a vicious self-fulfilling cycle for the expansion of tax-avoiding manufacturers which dis-incentivizes compliance. The lighting industry is not a unique case in India.
A parallel illegal market exists for virtually all products in the country & this is mostly true for all economies. However, the magnitude & size of the parallel market in the lighting industry is alarming. The elimination of these activities & expansion of organised manufacturing is crucial for achievement of higher levels of development for the economy. Jobs, revenue & safety all hang in balance due to the existence of such illegal markets. Cracking down on the problem can also go a long way in remedying the job problem that is currently ailing the economy & provide the Govt with higher tax revenues which can be used for productive investments. These markets can only be eliminated if the cost of evasion is pushed upwards. Hence, stricter enforcement of compliance regulations & safety norms is needed on an urgent basis. Regular raids also need to be conducted by tax authorities in these trading & assembling units. However, all of these measures can only arise after recognition of the existence of a problem by the authorities concerned.
Behold the Indian LED-volution
With the growing demand for LED lighting across sectors & the Govt’s policy push of making LED products mainstream, the lighting industry in India is today witnessing a churn. The LED adoption rate has increased drastically in the last couple of years & we are fast nearing the day when LEDs will gain complete acceptance in urban as well as rural India. One of the major growth drivers behind this all is the EESL’s UJALA scheme which has completely transformed the energy efficiency market in India. The scheme, which aims to replace conventional lights with affordable LED lights by deploying 770 mn bulbs & 35 mn street lights by 2019, has turned out to be an enormous success. It has also triggered investment, technological innovation & indigenous manufacturing in line with the Make in India initiative. As the demand increases & the manufacturing tech. continue to advance, we can expect LED lighting to become even more affordable in the coming years. With LEDs offering an array of benefits including energy efficiency, cost effectiveness, longevity & greater design flexibility, lighting is now no more a necessity but a lifestyle requirement. Consumers today are more informed & more involved, they no more look at lighting as some product but as a complete package while considering varied factors such as design, aesthetics, functionality, efficiency, output & longevity. While key influencers in this category for increasing LED awareness include Govt, architects, designers & electricians, brands also can be instrumental in educating the consumers about the multiple benefits of switching to LED lighting. In the recent times, the Indian lighting industry has also started to focus on delivering customized lighting solutions besides the basic fixture with an aim to cater to varied aesthetic preferences, needs & usage environments. Of late, the demand for high quality programmable & customized LED lighting solutions has grown sig.ly. Modern Indian consumers are seeking LED lighting fixtures in different shapes & sizes in order to complement the design & décor of their spaces. LEDs come in an array of colours which gives interior decorators the freedom to think outside the box & use the changing colours to pep up the decor. Indian lighting brands are acknowledging this shift by investing more in R&D & manufacturing with ||www.electricalmirror.net||
an objective to deliver aesthetically pleasing lighting products to the new age consumers. An interesting shift has also been seen in the retailing process, especially in case of decorative lighting, wherein brands are turning to experience led purchasing models. A major development in the Indian lighting landscape is that the manufacturing today is not limited to lighting CoS only; instead, many other small players that excel in electronics & LED sources have jumped on the bandwagon. The market has opened up & the organised sector is facing the heat as these new entrants are offering technologically advanced LED solutions at very competitive prices. The trends have made it clear that the lighting CoS need to decide whether they want to focus on electronics competence/ change their capabilities to LED assembly. Amongst lighting majors that have tuned themselves to the shift in view of the changing customer preferences & expectations is Orient Electric. Having ventured into the lighting arena in 2008, Orient has progressively set its national footprint & has emerged as the third largest manufacturer of LED bulbs in India. It is also the first lighting brand in India to have been awarded BEE star rating for its LED bulbs. We have supplied more than 12.5 mn LED bulbs under the Govt’s UJALA program & have emerged as a respected brand when it comes to B2G business. The major growth drivers for our lighting business are the LED products especially LED bulbs, LED Batten, & LED Street lighting projects. Our strength is our in-house R&D & manufacturing which helps us to provide differentiation needed for the Indian market. We have an established competence centre which has helped us to improve our product reliability & cost efficiency while also enabling us to develop tailor-made products to meet specific requirements. Over the last couple of years, we have made sig. investments towards new product development, quality enhancement & automation, indigenizing components & expanding production capacities.
India’s LED Lighting Story
Lighting is the most basic use of electricity in a home. Lighting’s share in the total residential electricity consumption is estimated to be in the range of 18% to 27%. In 2013, about a bn & a half lighting devices were sold in India; half of them being incandescent bulbs followed by CFLs (%31), tube-lights (%16) & a negligible share of LED bulbs. In 2014, the Govt launched a program to promote LED bulbs in Indian households & later named it UJALA. This is because LED bulbs consume less electricity, last longer, & does not contain mercury. The program, arguably the world’s largest, has sold more than 27 Cr. LED bulbs with no subsidy from the Govt. How did the program change India’s lighting industry & consumer behavior? What part of program design worked & what can be improved? Answers to these questions can improve future programs designed to improve energy efficiency in India.
EESL, is responsible for implementing the UJALA program. The company bought LED bulbs in bulk from manufacturers through multiple rounds of competitive bidding. The large volumes & assured sales incentivized the manufacturers to drop the bid price from Rs. 310 per LED bulb in ELECTRICAL MIR ROR || JULY 2018 || 149
the first round to as low as Rs. 38 in later rounds. EESL sold these bulbs to consumers through contract vendors in co-ordination with the local discoms, bypassing the retail supply chain & further bringing down the final distribution price. As a result, the current price of LED bulbs under UJALA is Rs. 70, about half of the price of the LED bulbs available in the shops. Yet, there is no subsidy from the Govt/ the discoms. EESL also conducted innovative marketing campaigns to create public awareness.
Our surveys show that LED bulbs are now a major source of lighting for the households that participated in the UJALA program (Figure 2). Most of the households also said that they would buy a new LED bulb from the market when the installed LED bulb reached the end of its useful life.
UJALA program transformed the LED lighting industry in India. Demand for LED bulbs has gone up 50 times in the three years since 2014, while the retail market price (for bulbs sold beyond UJALA) has dropped to a third. The fall in prices can be attributed to the economies of scale achieved due to substantial demand creation by the UJALA program, in tandem with the global trend of reduction in prices of the LED chips. India’s LED bulb manufacturing capacity has also grown substantially, with about 176 registered manufacturing units in India.
Sales trends of lighting devices in India Source: ELCOMA
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Share of lighting sources in the surveyed households. Source: Prayas Consumer survey (January – March 2017)
Increased demand for LED bulbs seems to replace the demand for CFLs instead of incandescent bulbs. About 810 mn incandescent bulbs were sold in 2016, a 5% drop over previous year’s sale whereas the sales of CFLs have dropped by a third since their peak in 2013. Our surveys corroborate this trend as we find that a considerably large proportion of the UJALA LED bulbs were used to replace CFLs, followed by incandescent bulbs & tube lights. The more that people replace CFLs with LEDs, the lesser the saving that are actually realized. Our sample of households in Pune was distributed across different income classes. A typical LED bulb saved 2.5 times more in a low income household compared to a high income household. This makes a case for program to focus more on low income households. ||www.electricalmirror.net||
Figure 3: Lighting options replaced by LED bulbs bought under UJALA for surveyed households. Source: Prayas Consumer survey (Jan – Mar 2017)
% Incandescent bulbs replaced
Low 45% Medi18% um High 18% Comparison between low, medium, Consumer survey (Jan – Mar 2017)
Average usage (hours)
No. of LED bulbs
(kWh)/LED bought bulb per HH 56 3
3.2 22 6 & high income households surveyed, Pune. Source: Prayas
Quality & Warranty
Our surveys found that 2% of LED bulbs failed in Pune after a year of launch of the program, while 14% of the LED bulbs failed in Puducherry three years after the launch. The bulbs sold in Pune carried a warranty of 3 years while the bulbs sold in Puducherry carried a warranty of 8 years. However, very few households got their faulty bulbs replaced. Lower expectations from a Govt program & higher tolerance levels for faults in low cost LED bulbs, ignorance about warranty, & hassles in the process were cited as reasons for not replacing the faulty bulbs under warranty. To conclude, UJALA has created a large & sustainable market for LED bulbs in India using the no-subsidy, bulk procurement model. Demand for LED bulbs has increased manifold & the retail market price (for the LED bulbs sold beyond UJALA) has dropped by a third. It has also created sig. awareness about LED bulbs, further contributing to increasing demand. Going ahead, EESL can ensure stricter monitoring & evaluation of the program. It can also focus on low income households & small commercial establishments who are still buying incandescent bulbs.
Failure rate & exchange rate of UJALA bulbs (for surveyed consumers). Source: Prayas Consumer survey (January – March 2017)
Spurious LED bulbs
Spurious LED bulbs have potential to jeopardize the Govt’s energy efficiency targets, as it has embarked on a mission to replace power guzzling ||www.electricalmirror.net||
incandescent bulbs across the country. The LED industry has sold 52.4 Cr. LEDs till Oct’17. The lighting industry has called for stronger regulatory enforcement to ensure that LED bulbs sold in the market comply with safety standards mandated for these products by the BIS & the MeitY. A study conducted by Nielsen across New Delhi, Mumbai, Ahmedabad & Hyderabad has found that 76% of LED bulb brands are non-compliant with the Govt mandates. LED industry has sold 52.4 Cr. LEDs till Oct’17. It is imp. for the Govt to act against these spurious & non-branded products for safeguarding consumer safety & protecting their revenues against these CoS. As per Elcoma (Electric Lamp & Component Manufacturers’ Association), the total LED lighting market in India is worth Rs 10,000 Cr., significantly higher than Rs 500 Cr. in 2010. Nielsen survey showed that 48% of LED bulb brands had no mention of manufacturer’s address & 31% brands did not have a manufacturer’s name, violating Indian legal metrology regulations. Delhi had highest degree of violation of BIS norms in the country. Spurious LED bulbs have potential to jeopardize the Govt’s energy efficiency targets, as it has embarked on a mission to replace power guzzling incandescent bulbs across the country. It is extremely likely that they (spurious products) will be non-compliant with energy efficiency parameters as well. The Govt plans to replace 77 Cr. incandescent bulbs with LED bulbs by Mar’19 under the national LED lighting programs launched by GoI in 2015. Govt has distributed more than 27.5 Cr. LED bulbs till date through EESL, the implementing agency for the central Govt’s LED programs. This has helped avoid peak demand of 7,161 MW & saving 35,769 mn units of electricity & Rs. 14,142 Cr. in power bills every year. EESL said it not only checks BIS compliance of suppliers, but carries independent verification & testing of these bulbs as well.
Being the second most populous country & fifth major electricity consumer, India has been witnessing widening electricity demand-supply gap. A substantial portion of world’s total electricity generation is consumed for lighting by illumination sources & systems alone. The consumption continues to increase due to the emergence of new areas of applications such as Entertainment Lighting, Advertisement Lighting, Biological Lighting, Aqua Tissue Culture, etc. However, the production of electricity cannot be increased beyond certain limits due to fast depletion of natural resources. It is, hence, essential that the appliances consuming less electricity, & also using natural sources of electricity like sun, wind etc. need to be developed. New technologies are being continuously used to improve lighting efficiency & energy conservation. Lighting is the single most imp. element in the visual environment. Effective lighting improves productivity & strengthens security. Lighting consumes upto 40% of the energy used in our buildings. A well designed lighting system reduces energy, maintenance, & potential liability costs. Both public & private interests are served by more effective lighting & reduced operating costs. Rapid improvements in lighting systems & equipment offer potential solutions, yet they have also made lighting practice more complex. On the other hand, the use of inefficient light sources & controls, & the wasteful usage of lighting results in polluting the environment leading to global warming. ELECTRICAL MIR ROR || JULY 2018 || 151
LED lights have been growing at such a big rate all over the world. Certainly, India is no exception. In reality, LED lighting has vast potential in India owing to power shortages & high electricity costs. Now-a-days, India struggles to meet the increasing electricity demand with its exceptional growth in the economy leading to building more power plants for sustaining the higher electricity demand of its widely growing population. But there is also another very simple solution; just change light bulbs to the new LED tech. & this can surprisingly reduce the country’s electricity demand by as much as 40 percent. With the biggest benefit of energy saving, long lamp life & environment friendly tech., LEDs would notably lessen the lighting load, peak demand & overall energy consumption of India, even without compromising on the environment & safety. As India has been declared as one of the polluted countries in the world, such eco-friendly aspect of LED lighting would definitely add more strength to the future growth of Indian LED light segment. As such, usage of energy efficient products such as LED lighting products is expected to grow in the coming years. Moreover, rising Govt support & introduction of innovative LED lighting products by manufacturers has resulted in reduction in prices of these products, thereby, offering consumers with more options to choose from, according to their needs & preferences. 20000 18000 16000 14000 12000 10000 8000 6000 4000 2000 0
Considering the growth potential of LED industry based on the above figures wherein a growth rate of 50 % was recorded in 2015, the LED lighting market in India is projected to register a CAGR of 26.6% during 2017-23. Basis for this projection is due to rise in personal disposable income, growing Govt initiatives encouraging use of LED lights, & focus on Smart City Projects. For instance, Govt of India announced plans to develop additional 30 cities under Smart City Mission, totaling to 90 cities. Further, recently in September, 2017 Prime Minister Narendra Modi launched Pradhan Mantri Sahaj Bijli Har Ghar Yojana - Saubhagya, with an aim to provide electricity free of cost to over four Cr. underprivileged families in rural & urban areas by December 2018. These initiatives are expected to further increase Govt emphasis on energy efficient lighting products such as LEDs in the coming years. Favorable Govt initiatives & policies through state & national level programs that offer LED lighting products at subsidized rates is contributing in a huge way towards boosting LED adoption in the country. In India, not a complete ban, but through the Ujala Scheme launched in 2016 decided to replace 770 mn incandescent light bulbs with LED bulbs by 2019. This is expected to reduce energy consumption by over 100 bn kWh annually & reduce annual electricity bills by `400 bn (US$6.2 bn). As of April 2017, 229 mn LED bulbs had been distributed across the country. The states of Tamil Nadu, Kerala & Karnataka in India have banned the use of incandescent bulbs in Govt departments, public sector undertakings, various boards, cooperative institutions, local bodies, & institutions running on Govt aid. Further, under Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY), 273 lakhs LED bulbs are to be distributed to BPL households.
Vision for development of led/ lighting industry
Growth in LED Industry
Growth in LIGHTING INDUSTRY
(Value in Crores(Rs.)
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During deliberation on the subject, there are two specific major issues – education & testing - which need to be addressed to develop lighting industry in general & LED industry, in particular. More specifically, if we talk about the latest light source – the LED, there is likely to be exponential growth in next five years. This will require sig. number of trained lighting professionals under various disciplines-
designing, manufacturing, quality, marketing, & so on. The above graph clearly indicates that the lighting industry in India is in its maturing stages. With an estimated market of about ` 20,000 Cr., the lighting industry is witnessing tremendous growth. Further, in LED segment alone, there is a growth of more than 80 %. As such the main issue being faced by LED industry is the lack of skilled manpower. But regrettably nothing much has been done to develop the professionals/ skilled manpower in this vital field of lighting/ LED/ solar energy, who can further progress with more scientific & innovative approach. The lighting industry is now poised to take a broad look into the future by considering the diverse trends & uncertainties acting among its many constituents. The lighting industry needs to play a critical role so in the context of the larger issues of energy, health & sustainable growth. However, till now unfortunately, there is a lack of formal education in this vital field. Since as mentioned in the earlier paragraphs, the lighting has been taken for granted as other commodities, the necessity of formal education is not felt so far. With the advancement in tech. & the presence of lighting in the form of electromagnetic waves in all spheres of life, starting from lighting as illumination for proper visibility to the communication by mobile phones through satellite, the necessity of formal education is being felt by users as well as industries to achieve following objectives: Productive man force from day 1 of joining employment; Higher standards in delivering quality of service; Reduced in- house training cost due to industry ready personnel
There’s more to lighting than meets the eye. Lighting is not just about lamps & fixtures, it is a complete subject in itself to understand the art & science of lighting for a particular environment. However, there are only few institutions/ universities in India who are providing only one of the elective subjects on Illumination Engineering/ Tech.. At one/ two places, the PG Programs are being run, but these are also on the Illumination Engineering/ Tech. & not on
lighting tech./ management. As per information available till date, the following institutes are imparting lighting education of different levels. Considering the varied performance of LED & its aggregates, specifically, which are being dumped in the country from China, Korea & other South Asian Countries, BEE has already declared LED Light Source under their Star Rating Program. On a study, it is seen that very few accredited testing facilities are available in the country. As such without adequate testing facilities, such programs may not result in effective implementation. Further to improve quality & reliability, there is a need of standardization.
Although Govt is encouraging industries/ institutes/ industry associations to develop educational & testing facilities, it has not got satisfactory results. Apart from above to bring confidence in the mind of the users, following aspects also need to be addressed: Increase energy efficiency in India to create consumer awareness for LED lamps & luminaires & thereby generate demand for them, to bring down the power consumption at the national level. Quality Benchmark Develop Standard & Laboratories for LED Testing lay down standards for imported & indigenously manufactured parts & create our quality benchmark for exporting Make in India LED products. Local demand increase manufacturing capability to cater to the local Indian market to discourage importing sub-standard parts & products. Technical advancement keeps the stakeholders aware of recent advancements in the field of LEDs through seminars, conferences, workshops, bulletins on website etc. Cost effectiveness be instrumental in bringing down the cost of LEDs in India to make it affordable for commercial & domestic use through monitoring, smart controls & a common pool of resources. Global presence provides impetus for India to rise on the world map for quality & safe LED products & its contribution to a cleaner & greener environment. It is further felt that there is a huge potential for the unemployed rural youth to train them for the operation & maintenance of all these solar systems empowering them to solve their problems at their community level.
Although tremendous scope/ potential exists, but considering the present status of MSMEs in solar & LED which includes manufacturers, assemblers, designers, academicians & students, nothing much has been done in this direction to develop infrastructural facilities specifically in the areas of skill development & quality monitoring. An integrating approach is, hence, required to promote & form a consortium of solar & LED professionals/ MSMEs. Although Indian Society of Lighting Engineers is instrumental in developing academic courses since 1988, still there appears to be a lack of interest in students & their parents to opt for career in this upcoming field. LED bulbs revolution that started 2 years back has become a success story. LED bulb industry is going strong, we now have an exhaustive range in the category covering all possible wattages & applications like high-wattage bulbs for commercial & industrial use & decorative & candle shaped lamps for residential applications. Key challenge for the industry remains the import of cheap & low-quality LED products & the dependency on import of LED chips. However, the growing demand for made-inIndia LED products, ramping up of indigenous manufacturing capacities, stringent import requirements & implementation of standardized norms will gradually put the brakes on the import of inferior quality imported counterparts. Believe that the next phase of growth will be triggered by LED streetlights & LED battens & tubes. Speaking of LED battens, a modest assumption brings out the fact if all 24.8 Cr. households in India use two LED battens for a year, there will be annual cost saving of approx. Rs. 24000 Cr. & annual energy saving of about 4000 Cr. kWh. Govt has already rolled out energy efficiency initiatives to transform the markets for street lighting & tube lights. Retrofitting market is also shaping up strong as modern consumers do not want to be stuck with the same lighting for 10-12 years & this will further boost the demand for LED lighting solutions. Without doubt, the future looks bright for the LED lighting industry & Indian CoS will be able to address challenges facing product quality & customization, technological competence & taxation policies. ELECTRICAL MIR ROR || JULY 2018 || 153
||Neelav Samrat De|| ||General Manager – Market Management||
||ANDRITZ Hydro Pvt. Ltd.||
to cater to the region’s hydropower segment. It currently employs over 1500 qualified engineers and technicians. ANDRITZ Hydro has been present in India since 1996 and has supplied electromechanical equipment aggregating over 33,000 MW in India and South East Asia. The company has its corporate office in New Delhi and has over 200 employees in this location.
company focusses on customer requirements, needs and satisfaction through its stringent globally accepted quality standards. Timely deliveries and constant research and development in innovation and sustainable practices ensure that the customer is given priority over anything else.
What is your quality parameter? What It has also developed a single console panel for control, protection and monitoring of hydro kind of strategies do you follow to be the turbines. ANDRITZ Hydro is a wholly owned subsidiary of best in the Indian market? Austrian Group Andritz AG. The company has 2 The company has acquired standard certificates Q. Please elaborate the Indian market state of the art manufacturing facilities in India in ISO 9001, ISO 14001 and OHSAS 18001. Our experience and potential in your business? Please tell us about Andritz Hydro Private Ltd.?
Q. What are your long-term and midPlease elaborate the products and the term plans for the future? services that you offer? The company is well aligned with the Government
ANDRITZ Hydro manufactures all types of hydro turbines and generators, automation, control, protection and monitoring systems, control valves, governors, hydro-mechanical equipment, Operation and Maintenance of hydro plants and other associated work. The company undertakes the complete turnkey contract including manufacturing, supply, transportation, erection, supervision, commissioning and testing. In short, it is a pioneer in the “water-to-wire” concept in hydropower technology. ANDRITZ also supplies high capacity engineered pumps for lift irrigation schemes. 154 || July 2018 || ELECTRICAL MIR R OR
of India’s “Make in India” policy and proposes to augment its manufacturing in India to near double by 2022.
What innovative technologies is Andritz Hydro known for?
ANDRITZ Hydro is globally the leading manufacturer in Pelton turbine technology. Its patented MicroGuss runners are well known in the hydro market. ANDRITZ also has its own technology development for grid applications like the Hydromatrix technology.
ANDRITZ Hydro has been present in the Indian market since 1902 since the time it supplied the runners for the Sivasamudram hydro project in Karnataka. Later in 1996, it set-up its generator plant in Mandideep near Bhopal. Thereafter in 2001, it opened its turbine and mechanical factory in Palwal near Faridabad. Through these factories, the company has supplied equipment to several plants in J&K, Himachal, Uttaranchal, North East, Sikkim, West Bengal, Karnataka, Tamil Nadu, Kerala and other areas in India including Andaman Islands. Today, the company has an installed base aggregating over 20,000 MW in India, Nepal, Bhutan and Bangladesh. While in the South East Asian market, ANDRITZ has supplied to plants with an aggregate totaling over 30,000 MW. Today, the company is a leader in the India region market along with a superior standing also in the South East Asia market having supplied equipment to countries like Indonesia, Philippines, Malaysia, Vietnam, Lao PDR, Thailand, Myanmar amongst others. ||www.electricalmirror.net||
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Motor Management and Efficiency: Choosing Between Soft Starters and Drives electing a motor for an industrial application
There are many aspects to consider when selecting a motor, such as application, operational, mechanical, & environmental issues. Generally speaking, the choice is either, an AC motor or a DC motor, or a servo/stepper motor. Knowing which one to use depends on the industrial application & if there are any special needs required. A constant or variable torque & horsepower will be required for the motor depending on the type of load the motor is driving. The size of the load, the required speed, & acceleration/ deceleration; particularly if it's fast and/ or frequent; will define the torque & horsepower that is required. Requirements for controlling motor speed & position also need to be considered.
Motor load typesâ€Ś
There are 4 types of industrial automation motor loads: Variable horsepower & constant torque; Variable torque & constant horsepower; Variable horsepower & variable torque; Positional control or torque control. Variable horsepower & constant torque applications include conveyors, cranes, & gear-type pumps. In these applications, the torque is constant because the load doesn't change. The required horsepower may vary depending on the 156 || July 2018 || ELECTRICAL MIR R OR
application, which makes constant speed ac & dc motors a good choice. An e.g. of a variable torque & constant horsepower application is a machine rewinding paper. The material speed remains constant, which means the horsepower doesn't change. The load does change, however, as the roll diameter increases. In small systems, this is a good application for dc motors or a servo motor. Regenerative power also is a concern & should be considered when sizing the motor or choosing the energy control method. AC motors with encoders, closed-loop control, & full quadrant drives may be beneficial for larger systems. Fans, centrifugal pumps, & agitators require variable horsepower & torque. As the motor speed increases, the load output also increases along with the required horsepower & torque. These types of loads are where much of the motor efficiency discussion begins with inverter duty ac motors using variable speed drives (VSDs). Applications such as linear actuators, which need to move to multiple positions accurately, require tight positional or torque control & often require feedback to verify correct motor position. Servo or stepper motors are the best options for these applications, but a dc motor with feedback or an inverter duty ac motor with an encoder often is
used for tight torque control in steel or paper lines as well as similar applications.
Different motor typesâ€Ś
While there are two main motor classifications; ac & dc; there are over three dozen types of motors used in industrial applications. While there are many motor types, there is a great deal of overlap in industrial applications & the market has pushed to simplify motor selection. This has narrowed practical choices for motors in most application. The six most common motor types, which fit the vast majority of applications, are brushless & brush dc motors, ac squirrel cage & wound rotor motors, & servo & stepper motors. These motor types fit the vast majority of applications with the other types used only in specialty applications.
3 main application typesâ€Ś
The three main applications for motors are constant speed, variable speed, & position (or torque) control. Different industrial automation situations require different applications & questions & their own set of questions. For e.g., a gearbox may be required if the top speed<motor's base speed. This also may allow a smaller motor running at a more efficient speed. While there is a great deal of
information online on how to size a motor, users must account for many factors because there are many details to consider. Calculating load inertia, torque, & speed requires the user to know about parameters such as total mass & size (radius) of the load as well as friction, gearbox losses, & the machine cycle. Changes in load speed of acceleration or deceleration, & the application's duty cycle also must be considered or the motor may overheat. After the motor type is selected & sized, users also need to consider environmental factors & motor enclosure types such as open frame & stainless housing for wash-down applications.
Constant speed application In a constant speed application, a motor often runs at an approximate speed with little or no concern about acceleration & deceleration ramps. This type of application is usually run using across-the-line on/off control. The control circuits often consist of a branch circuit fusing with a contractor, an overload motor starter, & a manual motor controller or soft starter. Both ac & dc motors are suitable for constant speed applications. DC motors provide full torque at zero speed & have a large installed base. AC motors are also a good choice because they have a high power factor & require little maintenance. A servo or stepper motor's high performance characteristics, by comparison, would be considered overkill for a simple application. Variable speed application Variable speed applications usually require tight velocity & speed changes as well as defined acceleration & deceleration ramps. Reducing the motor speed in application, such as fans & centrifugal pumps often improves efficiency by matching the power consumed to the load instead of running at full speed & throttling or dampening the output. These are very important considerations for conveying applications, such as bottling lines. Both ac & dc motors with the appropriate drives work well in variable speed applications. A dc motor & drive configuration was the only variable speed motor option for a long time & the components are developed & proven. Even now, dc motors are popular in variable speed, fractional horsepower applications & are useful in low-speed applications because they can provide full torque at low speed & constant torque across a wide range of motor ||www.electricalmirror.net||
speeds. Maintenance can be a concern with dc motors, however, because many require brushes for commutation, & they wear out from being in contact with moving parts. Brushless dc motors eliminate this issue, but they are more expensive in upfront costs & the range of available motors is smaller. Brush wear is not an issue with ac induction motors & a variable frequency drive (VFD) creates a useful choice for applications over 1 hp such as fan & pumping applications, which lead to improved efficiency. The type of drive chosen to run the motor can add some positional awareness. An encoder can be added to the motor if the application requires it, & a drive can be specified to use the encoder feedback. This setup can provide servo-like speed as a result. Position control Tight position control is accomplished through continuous verification of the motor's position as it moves. Applications such as positioning a linear actuator can use a stepper motor with or without feedback or a servo motor with inherent feedback. A stepper is designed to accurately move to a position at a moderate speed & then hold the position. An open-loop stepper system offers strong positional control if properly sized. While there is no feedback, the stepper will move the exact number of steps unless it encounters a load disruption beyond its capacity. As the application's speed & dynamics increase, open-loop stepper control may not be able to meet system requirements, which requires an upgrade to a stepper with feedback or to a servo motor system. A closed-loop system provides accurate, high-speed motion profiles & precise position control. A servo system will provide higher torque at high speeds compared to a stepper, & they also work better in high-dynamic load or complex-motion applications. For high-performance motion with low-position overshoot, the reflected load inertia should be matched to the servo motor inertia as closely as possible. Up to a 10:1 mismatch will perform adequately in some applications, but a 1:1 match is optimal. Geared speed reduction is an excellent way to solve inertia mismatch problems as the reflected load inertia falls by the square of the gear ratio, but gearbox inertia must be included in the calculations.
Integrated Motors: Define, Design, Apply
Manufacturers offer a wide selection of motors
for industrial applications. Stepper, servo, ac, & dc motors can meet most industrial automation requirements, but the ideal motor depends on the application. Whether it's a constant speed, variable speed, or position control applicationusers should work closely with the motor & drive the supplier to select the right motor for the application. Motors make things go. Add in a current market with computing & information processing power continuing to strengthen & technology costs lowering, & it's all kinds of motors, including a growing class of integrated & gear motors, that make up the infrastructure of the current automation boom. Automation technology providers are calling the current market the right space at the right time as more CoS want to automate their processes where labor costs are rising & technology costs are falling.
Define & Describe
Motors can be defined as general motion control (GMC) & computer numerical control (CNC) classes to better track applications & growth. GMC motors are defined as motors & drives used in conjunction with a general motion controller independent of the final application, such as those used in packaging machinery, food-processing lines, semiconductor manufacturing, printing equipment, & so on. CNC motors & drives, by comparison, program in G code for movements in machine tools that deliver discrete parts, including turning centers, machining centers, multi-axis multitasking machines, transfer lines, & others. GMC motors account for 56.5% of the global market, according to the report ("Motion Controls: A Global Market Update," sponsored by the Association for Advancing Automation in 2014). CNC motors account for 43.5%. Machine tools, in both metalcutting & metal-forming categories, accounted for nearly 45% of market revenues. Add on the GMC-dominant categories of packaging & labeling equipment, semiconductor machinery, robotics, rubber & plastics equipment, & material-handling applications, & these 6 categories alone account for more than 70% of the motors market.
So What Do Integrated Motors Integrate?
Defining an integrated motor is like beauty being in the eye of the beholder. Integrating the electronics of the drive with the motor can
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be one description; gearheads fitted to motors of various types are another description used in the market. The concept is not that old. Integrated motors continue to develop due to how they consolidate things mechanically & electronically. One benefit, for e.g., is reducing the level of wiring between controllers & motors. Integrated motors may simplify things mechanically, but there are downsides to watch for. Harsh or high-temperature industrial environments may present heat-management issues that may cause integrated motors to reach upper performance limits sooner. The integrated drive may not power the motor to its highest performance level.
Integrating a gearhead with a motor is an evolving motor application. Originally, when the AC motor was a simple rotating device, the gearhead was mainly used to change the motor speed & as a torque amplifier. With the introduction of motors incorporating speed-control functions, the primary role of the gearhead was to amplify torque. But with the development & wide acceptance of stepping motors to meet requirements for controlling speed & position, gearheads found new purposes, including improvement in permissible inertia & reduction of motor vibration. Furthermore, the accurate positioning capability of motors has created a demand for high-precision, backlash-free gearheads, unlike conventional gearheads for AC motors. Bodine Electric's tech paper advises that it takes more than determining the right speed & torque to design the best gearmotor for a given application.
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Considerations include: Mounting Orientation Gearmotors are typically designed to be mounted with the gearbox level with the motor, & with the drive shaft in horizontal orientation. If an oil-lubricated gearmotor is mounted in a position other than horizontal, the chance of leakage increases in both static & dynamic conditions as shaft seals wear. Greaselubricated products are less prone to leakage, but gear life can be compromised. Gearhead Efficiency The worm gears found in most right-angle gearboxes are less efficient & generate more heat than spur or helical gear assemblies used in parallel-shaft gearboxes. Hence, rightangle gearmotors often require a larger motor to match the output torque of a parallel-shaft gearmotor with the same gear ratio. Noise & Shock Load Noise from a gearbox is affected by the number of gear stages, load, & armature/rotor input speed. Some smaller parallel-shaft & planetary gearboxes use a nylon-type first-stage gear to reduce noise & vibration. Worm gears are generally quieter than spur/helical gear reducers because they operate on a sliding action. Because worm & gear teeth are under crushing rather than cantilever loads & more teeth are usually in contact, worm gears have higher resistance to shock loads than spur or helical gearing. Other Wear & Tear Gearmotor life is affected by many factors. Obvious ones are operating speed, load, duty cycle, & ambient temperature. The higher any of these operating conditions are, the
sooner gearhead components will wear out. But design details inside a gearbox also determine gearmotor life. For e.g.: the sliding action of worm gears is more difficult to lubricate & is less efficient than the rolling action of spur & helical gearing. Hence, metallic worm & gear teeth will wear faster than metallic spur & helical gear teeth. Non-metallic gears will wear slower than metallic gears if no severe or shock loads are applied. Oil-lubricated gears will last longer than grease-lubricated gears because oil provides more consistent lubrication to gear teeth under load conditions.
Soft Starters Vs Drives
Regardless of whether they are used in processing plants or in discrete manufacturing, commercial, municipal, or institutional facilities; motors that are started across the line require large amounts of energy when accelerating quickly to full speed. Standard EPAct motors started across the line typically require 5-6 times the lockedrotor or full load amp (FLA) starting current to reach operating speed, & NEMA premium motors can require 8-10 times FLA at start up. In applications such as fans, pumps, compressors, mixers, & conveyorsâ€”reduced voltage soft starters (RVSS) or variable frequency drives (VFD) can be used instead of traditional contactors or motor starters to reduce inrush current. Both RVSSs & VFDs reduce the AC RMS voltage applied to the motor during startup. Both can also reduce inrush currents, & consequently start torque, by as much as 30-70% compared to across-the-line starting. In equipment that experiences frequent starts &
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stops, reducing the inrush current significantly reduces motor heating because it lowers I2R, resulting in longer motor life. Reduced start up motor torque can also significantly extend the life of belt-driven & mechanically-geared equipment. In fact, some equipment such as large fans & pumps requires extended ramp times at start up to prevent mechanical system damage. RVSSs & VFDs share energy, motor, & equipment saving attributes—but they have significant differences. The choice between VFDs & RVSSs depends on the application, control & performance requirements, initial cost & system life cycle costs, & operational complexity.
RVSSs offer lower initial cost; limited digital & analog diagnostic signals, simple RUN/STOP control schemes, & the ability to reduce peak current draws & mechanical shock to equipment (see Comparison Table). Potential applications for RVSSs include very large (200-500 hp) pumps, fans, mixer, & centrifuges that generally require very few starts & stops; have little or no integration into plant control networks; & are required to run at full rated speed during operation. An RVSS adjusts the voltage applied to the motor to control its current & torque characteristics during startup. Silicon-controlled rectifier arrays are configured back-to-back so that the control circuit can gate them on both positive & negative excursions of the AC waveform. The control circuit, or gate-firing control processor, controls the slope of the acceleration & deceleration ramps. The amount of the AC line voltage waveform allowed to pass through to the motor is directly proportional to the gate-firing ramp. This allows the RVSS to regulate the voltage applied to the motor from
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zero up to line voltage. Most RVSSs incorporate current transformers (CTs) on two of the three phase outputs to provide current measuring feedback to the control processor. Current feedback allows the soft starter to adjust to programmed torque limits during acceleration. Monitoring current feedback over time also allows an RVSS to be used as an external motor overload device. Acceleration times vary depending on the load on the motor when started. When bypass relays are used, they allow the RVSS to be taken out of the circuit when the motor reaches operating speed. The efficiency of an RVSS is typically around 99.5%. Some soft starters have the ability to limit the output voltage to the motor. Applications that don’t require the motor to be fully loaded also don’t require full magnetizing current. Reducing the voltage to the motor also reduces the current, which increases its efficiency without sacrificing speed.
Although VFDs offer many application benefits such as energy efficiency, reduced stress on motors & equipment, diagnostic capabilities, & process control integration—the primary reason to use a VFD is to control motor speed. The bonus is that lowering motor speed usually increases energy efficiency. For e.g., using VFDs to lower speed or flow by just 20% can potentially reduce energy use by 50%. Although a VFD is typically about 95% to 97% efficient—its ability to directly vary motor speed instead of using dampers, flow controls & blocking valves usually results in an overall increase in system efficiency along with lower maintenance costs. A VFD rectifies the AC line voltage into DC voltage, which is applied to a DC bus. The DC bus voltage is “inverted” into pulsed
DC, the RMS value of which simulates a sine-coded AC voltage. The result is a pulse-width-modulated DC output gated through insulated-gate bipolar transistors. The output frequency of a VFD typically varies from 0 to the AC input line frequency. However, on some applications, the frequency can exceed the line frequency to beneficial effect. Like RVSSs, VFDs use CTs to measure motor current. Sensing current allows VFDs to implement motor overload monitoring, stall prevention, & torque & current limiting.
The major advantage of a VFD over an RVSS is speed control. VFDs can vary output frequency from zero to above base motor frequency. If a process requires very tight speed regulation, the frequency applied to the motor must be changed in relation to the load in order to accurately control the speed. By contrast, an RVSS applies only the line frequency, & the motor operating speed is hence fixed. But for applications that don’t need to vary the load’s speed, a soft starter can be a very cost-effective solution. VFDs fit well in applications that require consistent acceleration times. Acceleration time for an RVSS depends more on the load than the selected ramp time, so unlike a VFD precise acceleration time can’t be controlled. But if consistent acceleration time isn’t an issue, & controlling the torque or current is all that’s needed, an RVSS may be the more cost-effective solution. If current limiting is the main reason for not starting at full voltage, an RVSS may be an appropriate choice. The difference in cost between an RVSS & a VFD at the Amp rating where current limiting becomes a factor may be the deciding factor. VFDs can be two to three
times the initial cost of an RVSS, & generally require a slightly higher expertise to integrate into a process. However, they offer much greater control over the processes & applications in which they are used. There are applications in which the additional cost of a VFD is justified, such as when the motor can’t provide sufficient torque to start the load because of the current limitations imposed by the distribution system. Unlike an RVSS, a VFD can accelerate a motor to full speed at full-load torque with line current that does not exceed the motor’s FLA. If starting torque is a concern, consider that VFDs have a much higher torque per amp ratio. Besides motor control advantages, VFDs provide functionality benefits over RVSSs. VFDs provide more analog & digital diagnostic information, & have programmable performance parameters that can interface with plant automation & control networks. They can often be customized to function within process requirements, eliminating the need for higher-level external controllers. Using VFDs in variable torque applications such as centrifugal pumps & fans can provide very fast payback in energy saving because processes are maintained at reduced speeds, which offsets initial investment costs. Some applications can even pay back the entire cost of a typical VFD within months, especially if the local utility offers a VFD rebate program. Both RVSSs & VFDs provide reduced voltage motor starting, reduced energy consumption, & reduced stress on motors & mechanical equipment. But when looking for value, users may need to look beyond initial cost & determine if the added performance & functionality of a VFD justifies the added cost.
Motor management in control panels drives energy savings
Contrary to the world's challenged economic health, energy costs continue to escalate. Better management of energy consumption & the reduction of resultant costs will be an essential component of a company's economic well-being for the near & distant future. In the 21st century industrial manufacturing facility, maximized energy & cost savings increasingly means more astute management of electrical motors, because motors account for more than 50 percent of a
typical facility’s energy consumption. This can be done via motor management measures incorporated within control panels. Low power dissipation motor starters Energy consumption by electrical motors accounts for a major portion of the energy usage of a typical facility. However, the power dissipated by motor starters themselves can be significant, & can range from a few watts to multiple watts depending on the type of motor starter used. This translates to thousands of dollars of energy costs per year if a facility has, for e.g., 100 motor starters installed. Traditional motor starters usually have three sets of power contacts (short circuit protection, contactor & overload relay) & use unmanaged electrical coils to close the contactor poles. To minimize this power dissipation, an all-in-one electronic motor starter can be used. These devices only have one set of power contacts (and can hence reduce by a factor of three the power dissipated in the power circuit); plus they now utilize low consumption electronic coil control. These advanced, low power dissipation motor starters can dissipate as little as 3W for a 12A load compared to 15W to 20W from a traditional, combination motor starter for the same load. This translates to significant energy savings over time. Smart motor control systems Before a facility can save substantial energy, management first needs to clearly understand how & where energy is used in its facility. As in any other problem-solving situation, one first needs to clearly measure & understand the current situation before taking any corrective action. This is where smart motor control systems with energy management features become very useful. These motor control systems are able to precisely measure power & energy consumption at the load level. They are also able to send warnings to programmable logic controls (PLCs) or Supervisory Control & Data Acquisition (SCADA) systems through communication networks if power consumption exceeds a pre-defined threshold. These features will help management to better run their facility & find ways to optimize their overall energy savings. Smart motor control systems are essential to determine if electric motors are running correctly. These systems may
detect abnormal running conditions, for e.g. when motors are at end of life. In this situation, electric motors are likely to use more energy than in normal conditions. Smart motor control systems that can detect these end-of-life situations are essential to better energy management. Power monitoring systems Getting detailed power & energy consumption at the load level is important information to have. However, the ensuing amount of data, & the management of this data, can quickly become overwhelming. This is why smart motor control systems must be configured to seamlessly connect to SCADA & advanced software packages for power monitoring. These flexible systems can quickly sort & organize data provided by hundreds of smart motor control systems. They are also able to provide summary reports that will allow management to better utilize energy in its facility. The first critical point is to choose a motor control system flexible enough to connect directly to advanced power monitoring systems. The second critical point is to choose the right power monitoring system which embeds pre-defined device types for the motor control system to use. A pre-defined device type will allow direct readings of critical monitoring variables without having to fully integrate the operational details of the smart motor control system. Variable speed drives it’s a fact that some of the electric motors used in facilities do not need to operate at full speed all the time. When a reduced speed is acceptable for part of a process at certain times of the day, variable speed drives will help greatly reduce a facility’s energy consumption. If electric motors are required to start & stop very frequently, the use of a soft start will limit current peaks when the electrical motors start, & hence help to reduce energy consumption. However, a variable speed drive or a soft start is not the solution to every electrical motor starter application. In fact, if electric motors have to run full speed at all times, or if they do not start very frequently, the use of a variable speed drive or the use of a soft start will actually use an unnecessary amount of energy. For those applications, it is better to use a motor control system with low power dissipation.
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Solvina Services in Thermal and Captive Power Plants ndian Power Sector
India has one of the largest power network across the globe with variety of generation-mix, where electricity is playing a vital role in country’s overall growth. India's electricity sector is dominated by fossil fuels which in 2017-18 produced about three fourths of all electricity. The government is pushing for an increased investment in renewable energy. The National Electricity Plan of 2018 prepared by the Government of India states that the country does not need additional non-renewable power plants in the utility sector until 2027, with the commissioning of 50,025 MW coal-based power plants under construction and achieving 275,000 MW total installed renewable power capacity. Though the government is supporting power generation by renewable resources, thermal power plants will continue to be the most dominant source for power generation for at least some years ahead due to the flexibility it provides for grid stability. Integration of renewables and thermal power plants in the existing grid would be a major challenge. Thermal power is a far cheaper source for base load and effective grid management than new storage technologies. For developing countries like India, affordability remains a key consideration. The key advantage of thermal power plants is their ability to ramp up and ramp down operations in a short span of time.
The thermal power plants are undoubtedly facing huge stress due to fuel issues, statutory obligations, emission levels, water scarcity, less power demand growth, poor quality of coal, availability of transmission corridor, lower performance of old power plants, financial crisis of private power generators/IPP’s etc. The government has listed numerous power plants for shut down due to their poor efficiency, high emission levels, constant blackouts, low maintenance and repairs, poor overall equipment effectiveness,
non-compliance to statutory rules etc. Major Indian industries are relying on their own captive power plant due to regulations, unavailability of supply, high per unit prices and unreliable grid. In India, most of these captive power plants are coal based. Large industrial plants and energy systems are highly complex and contain many technical disciplines. It is therefore virtually impossible to achieve high degrees of reliability, stability and availability with conventional steady state design methods. Operators that do not implement advanced dynamic analysis methods face greater risks in terms of equipment failure and tripping due to disturbances, and ultimately potentially substantial revenue loss.
Role of Solvina in IPP
Solvina, a Swedish Engineering consultant having its head office in Gothenburg Sweden. Sweden is a world leader in Innovation and ranked among top three countries in the Global Innovation Index for the past consecutive years. Solvina started their Indian operations in 2015 to bring in the best of their global expertise. Solvina with its years of experience in power plant operations and with its state of art testing equipment and promising human resources dealing with variety of the issues across globe and reviving plants life, plays an important role as consultants to these power plants. The vision of ministry of power is to provide electricity to all with adequate quality in reasonable price. For maintaining the quality of power, all generators spinning with grid must assure compliance with grid code. Solvina conducts advanced power measurements that achieve and verify optimal performance of power plants and their control systems. Optimal performance may include fulfilling grid code requirements, maximizing efficiency, minimizing start-up time during commissioning, maximizing availability or avoiding instability, component failure or unwanted outages. Solvina offers unique services in achieving and ensuring island operation capability.
“When performance is not optimized and verified by agreed measurement criteria,
an installation may experience poor efficiency levels, unwanted outages, increased wear and tear of components, and failure to supply customers with power, which in turn may lead to financial losses or even refusal to connect to the power grid,” stated Mr. Shahzad Alam, Managing Director at Solvina India. He further stated that Solvina brings in Swedish expertise and innovative technique for testing. 162 || ||July July 2018 2018|| ||ELECTRICAL ELECTRICALMIR MIRRROR OR 162
Role of Solvina in CPP
The major challenge before Captive Power Plants is the successful and stable operation after disconnection from grid. They are facing several issues in island operation due to inefficient boilers, poorly tuned controllers, improper voltage controllers, non-linear valve operations, etc. and hence report huge loss in terms of production loss, unscheduled downtime and wasted man hours in repair and maintenance. Solvina has developed a unique method for optimising and verifying the frequency control capability of power plants, in a thorough and safe manner. The method is called Simulated Island Operation and allows for testing the island operation capability of a unit while it is still synchronised to the main grid. This way, the testing is performed without the risk of blackout, which may come with a live island operation test. The method uses hardwarein-loop, that is, a real-time simulator which is connected to the speed controller (governor) of the turbine. The governor will then act as if the unit is running in island operation.
Advanced analysis, measurable results
A key component of Solvina Analysis is a thorough power plant or system analysis, which includes data collection, (describing the properties and performance of studied areas); modeling of the plant or system; measurements of the actual plant; validation of models; simulations and analysis of results; and finally, conclusions and recommendations.
Our Analysis services help customers to reach a complete understanding of the dynamic behavior of studied plants, and, by involving customers throughout the process, propose remedies for improved stability, reliability, efficiency and availability of operations in the short medium- and long-term”, said Peter Dahlstrom, Senior Advisor at Solvina. Solvina Analysis delivers a number of measurable results for customers, including: improved efficiency due to more stable operations; improved product quality due to reduced fluctuations, improved availability and fewer outages.
Figure above depicts the live island testing method of Solvina
Solvina provides expert analysis of dynamic performance at large process and power plants and transmission systems. Advanced simulator technologies and measurements are combined to obtain comprehensive and highly accurate assessments of operational performance; complex mathematical calculations are applied, the validation of which drives real-life behavioral changes. Key objectives of these methods include: trouble-shooting, failure analysis, design, and tuning. Our methods are universal and can be applied on any power plant.
“cause We perform detailed root analysis of power plant
failures and fixing issues with high accuracy. We perform boiler tuning and optimization, integrated steam & power studies, primary response test, generator capability test, governor tuning, AVR & PSS testing and tuning, protection coordination, harmonic analysis etc.” said Mr. Niclas Krantz, Managing Director of Solvina International.
www.solvina.com ||www.electricalmirror.net|| ||www.electricalmirror.net||
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Improving Quality Using System-Based End-To-End Tests The most frequent causes of protection misoperations are setting, logic and design errors, caused for the most part by the increasing complexity of modern protection systems. Line differential protection is a case in point. To date, dedicated test plans and sequences have been created for every test set and every test case, all of which had to be calculated and evaluated individually. By combining the three core functions of the test process in a software package, OMICRON electronics is raising the security and dependability of system test results to a new level.
hen commissioning a protection system, utilities always endeavor to test relays in a way that reflects how they will later be used in operation. Line differential protection fulfills its function using two or more relays that communicate with each other. The relays are distributed across various substations. The testing of line differential protection under operational conditions, or as realistically as possible, requires the extremely precise time-synchronized simulation of a fault scenario at each end of the protected line, also referred to as an end-to-end test. To date, a separate test sequence was created for each end of the line. In the facility, a phone call is made to a colleague at the opposite end so that the respective pair of test cases can be started at exactly the same instant. This methodology has stood the test of time. However, what is evident is that the costs involved and the susceptibility to errors of this approach â€“ in its preparation, execution and troubleshooting â€“ are very high. This has led to the scope of the test being kept to a minimum and even avoiding end-to-end testing altogether, relying instead on the self-tests carried out by the relays. But it is precisely the end-to-end test that guarantees that the protection is working securely, dependable and selectively. An innovative solution has, therefore, been developed that enables this important test to be carried out at a reasonable cost while still satisfying the testing prerequisites.
The End-To-End Test as a System Test
The main purpose of an end-to-end test is to validate the communications connection. However, it can also be used as a system test. Studies such as the NERC Study  have shown that most protection misoperations are caused by incorrect settings, or logic, or design errors. This is due to the complexity of the power systems and the increasing demands, resulting in an ever-growing number of protection and logic functions, not to mention relays. A system test can be a great help in detecting the faults that can occur as a result. If a threshold has already been calculated incorrectly in the design, a conventional test is only able to check if the relay picks up at the incorrect threshold. This fault can be detected by simulating the power system while calculating the end-to-end test. If we calculate the test signals by simulating a fault at 70% of the line, it is possible to validate whether the settings would in fact trip a
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fault at 70% instantaneously. Logic errors occur most frequently when coordinating the individual components, for example, different interval times in the event of an autoreclosure (AR) at each end. Such an error is easy to identify with an end-to-end test. Coordination is not only required for differential protection. As a backup, a relay often has an additional distance protection function with a communication scheme; additionally in transmission systems, a separate backup protection relay is fitted. Practical experience shows that faults also occur in the coordination between the primary and backup protection systems. These are not detected unless a system-based testing approach is adopted, as seen in the example of the Irish utility ESB . In this instance, the AR of the backup protection was blocked by the primary protection, resulting in unwanted three-pole tripping. The cause was a single incorrect setting in the backup protection relay. This demonstrates that the system test has to cover as much of the system as possible in order to detect interface errors.
Weaknesses of a "Classic" End-To-End Test
Preparing a classic end-to-end test is usually a very expensive business. If it is also going to be used as a system test, the output values have to be based on realistic fault simulations, which means that every status has to be calculated separately or exported for every test case and every test set. Then, all the test cases have to be imported into the respective test plans in the same sequence. Creating the sequence when testing the logic is even more difficult. If, for example, a state change is triggered by a circuit breaker (CB) off command at just one end, the voltage and current signals at the other end of the line must also change. The distance between the test sets means that binary triggers can only be used to a limited extent. Precise time sequences must also be known so that these sequences can be created with time triggers. Furthermore, all the test engineers involved must be equally familiar with the testing procedure. They must all know which test is to be carried out to ensure that the correct sequence is implemented simultaneously at all ends. This is often a source of errors. To evaluate whether the system has passed the test, the results from the individual ends have to be communicated by telephone, which means a single test can take several
minutes. If the system fails the test, then modifications may have to be made to the test sequence, a process that is extremely cumbersome and error-prone if done by phone.
The Right Tool Makes all the Difference
Three core functions have been combined to create innovative testing software to improve the end-to-end test process. 1. Transient power system simulation to calculate the test variables. 2. Central control of test sets from a single PC. 3. Iterative closed-loop as a patented solution for testing distributed logic.
Simulating the power system has two benefits. A system test based on power system data can pick up errors in the settings. The integrated power system simulation also saves a huge amount of time and greatly simplifies the preparation and execution of an end-to-end test. In the best-case scenario, the only data that need to be entered are the primary line impedance, the transformer ratios and, if desired, the short-circuit currents on the busbar. Then, all that needs to be done for the individual test cases is to create a fault at the required point and define its evaluation criteria. This takes no more than a couple of minutes and only needs to be done once due to the fact that the test sets are being controlled by the main application. A "main application" in this sense refers to a PC-based application that is controlling several test sets in a time-synchronized manner.
Integrated grid simulation
The signal paths are recorded on the respective test sets and the synchronous starting time for all the sets is defined. On completion of the test, the test system fetches the recorded binary traces (for example, the off command) from all the test sets and evaluates them. One test engineer can initiate the entire process by pressing the Start button â€“ no different to the testing of a single relay. Not only is the test evaluated immediately, a comprehensive test report is also produced. Should the test fail, necessitating a modification, the on-site test engineer can move the fault and repeat the test immediately. The connection between the PC and the test set can be established directly or via a simple internet connection, in which case another PC connected to the internet at the remote end will also be required. However, this will only permit access to the connected test set via a password-protected Cloud connection from the main application. All the benefits remain though.
Setup of an end-to-end test
The integrated power system simulation correctly calculates the signals for all ends simultaneously at the moment of execution. Distributed testing controlled centrally by a PC
Under no circumstances should testing of the logic be neglected. The specially developed iterative closed-loop algorithm significantly reduces the complexity of the logic test, something that is exemplified in the testing sequence for an autoreclosure. As before, the user picks a fault on the line. When the fault currents are output, the relays respond after a specified time with an off command. As the test sets are distributed, it is not possible to respond quickly enough with new signals on all ends. The application therefore ||www.electricalmirror.net||
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starts the next iteration, beginning with the same fault currents. As the same trip times are expected, a command to open the CB was added to the sequence in advance. Once the trip occurs, the relays respond with a close command. The next iteration starts. This contains the fault, the trip and also the closing of the CB. The iterative closed loop repeats the process automatically until the complete autoreclosure sequence has been tested. The test engineer does not have to define the pause times, or even whether it is a single-pole or three-pole autoreclosure. Any faulty logic or
coordination is detected immediately. Preparation and Execution of System-Based End-To-End Tests An end-to-end test remains logistically complex, despite the immense improvements in the tools. It is, therefore, important to make good use of valuable time. This means creating and maintaining a checklist, as shown in this example: • Verification of the power system data: do the simulated short-circuit currents approximate to what was expected? • Is the protection concept sufficiently familiar to ensure that the response can be correctly evaluated and tested? • Are an adequate number of test sets available with the required licenses and firmware? • Are enough test leads, plugs and cables available? • Is the cable for the GPS antenna long enough? (We recommend the use of GPS antennae with RJ45 connections, as random Ethernet cable drums can be used.) • Is the cell phone charged? • Are the test sets connected?
Over recent years, this innovative testing solution has detected many faults and saved commissioning engineers a great deal of time. An end-to-end test should, therefore, be an indispensable part of the commissioning of every line protection (differential and distance protection the signal comparison). It is also worth noting that a testing solution like this can also be used with other distributed protection systems, such as busbar differential protection, reverse interlocking, CB failure, etc., to name just a few. The transient simulation also enables transient ground fault protection, power swing blocking and other transient functions to be tested.
 Protection System Misoperations Task Force, "Misoperations Report", North American Electric Reliability Corporation (NERC), Atlanta, 2013.  Eoin Cowhey (ESB International, Ireland), Alan Rossiter (ESB Networks, Ireland): Experiences of an energy utility with system-based end-to-end testing of protection systems in the EHV range, Protection & Testing Conference & Workshop, 2016
Christopher Pritchard was born in Dortmund in 1982 and studied electrical engineering at the University of Applied Science in Dortmund, from where he graduated in 2006. He then joined OMICRON electronics as a developer of application software, specializing in testing solutions for protection and measuring systems. He is now product manager for application software in the protection testing department.
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-Lite Industries, a part of ‘Kumbhat Group’ is an ISO certified company with pan India presence and Head Office in Chennai. The company, after crossing the Silver jubilee year has been steadily growing in the manufacturing of electrical luminaires, marketed under the brand name K-LITE. Along with expertise and experience in manufacturing custom built luminaries we have an exclusive range of outdoor luminaire as a standing testimony of our commitment to innovation, quality, durability and proven performance. To assure the technical excellence of our products, we have illumination laboratory that is fully equipped to international standards. K-LITE has been exporting its products to various countries. Being a trend setter in the market, we have
time and again introduced an innovative range of indoor / outdoor luminaries. With quality as prime objective, our aim is to achieve Clean Lighting for a Greener World. Multifarious wide ranging designs specially in Outdoor Luminaires, Bollards, Flood Lights, Landscape Luminaires, Bulk Head Luminaires, In-Ground Luminaires, Path Finder’s, Under Water Luminaires, Street Lights and Area Lights are characterized by their high efficiency, uniform luminance, and an extremely long service life. The fixture and the driver are designed to provide value technology that is ideally suited to the Indian conditions. The 190,000 Square feet egregious infrastructure, comprehensive and section-wise facilities, modern plant, and professional staff enable them to
manufacture a wide range of products in a short period of time.
GREEN & SMART LIGHTING
The superior quality seeker K-Lite industries is also a vigilant environment conscious manufacturer that endeavors towards reduction in power consumption, Co2 an emission and light pollution with optimized efficiency of its products with reduced wattage. The smart and sustainable LED technology offers durability with optimal light output with less power consumption. It not only strives to serve it's customers in line with the latest fashion and trends with its products gaining constant popularity in India and all over the world, it's competitive pricing along with the value for money goods keeps it on a coruscating edge in this dazzling industry.
Company’s recent phenomenal success has been due to Ms. Sharmila Kumbhat’s vision of growth through quality and continuous innovation. She is an interior designer by profession but a proven and dynamic entrepreneur by choice and commitment. Having started her career at a very young age at Metal Craft, Chennai, she learned about various dynamics of manufacturing processes at national and international levels. Amongst various acknowledgements bestowed, Ms.Kumbhat received award for best young entrepreneur in 1996 by the Government of Tamil Nadu and also stood state first in Fashion Designing. After completing her Interior designing in New York, she headed K-Lite’s in USA operations. Inspired by her father Mr. Dilip Kumbhat, her constant
focus is on energy conservation and continuous innovation for the greater good of the environment. Her zest to achieve perfection in terms of design and quality has enabled the company to place itself as one of the best in premier lighting brands at a global level.
Ms. SHARMILA KUMBHAT (Managing Director)
• Contact details : Tel : 26257710, 48581950, Mobile : 95000 79797, 95000 85511 • Year of establishment : 1977 • Line of business : Manufacturers of Indoor and Outdoor Luminaires and Lighting Poles of all types. • Quality certifications : ISO 9001:2008, CE
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Inrush Current and its Impact on the Product’s Life INRUSH CURRENTS in LAMPS
All electrical and electronic devices have a steady state operating current and an inrush current. The inrush current or input surge current, as it is sometimes called refers to the maximum instantaneous input current drawn by the electrical device when it is first turned on. The size of the inrush current is usually much higher than the device’s steady state operating current. Inrush Current
Current Turn on Voltage
IMPACT OF INRUSH CURRENT Load type Solenold Incandescent bulb Motor Flelay Capacitor Resistive load
Inrush current/stoadystate current
Approx 10 times Approx 10 to 15 times Approx 5 to 10 times
Approx 2 to 3 times Approx 20 to 50 times 1
When designing a lighting system, awareness of inrush current is important and is often critical in retrofit applications. Standard residential and commercial lights are installed on a “branch circuit”, which is operated with a Switch. While using the energy saving components like MOVEMENT DETECTORS or LIGHT DEPENDENT RELAYS (LDRs) or TIME SWITCHES, it is important to note that each of these devices has switches inside which are sized to the nominal or maximum amount of current the associated LAMP is rated to safely carry. But to SWITCH the LAMPS they have to bear the practical INRUSH CURRENTS arising in the lighting load circuits. For example if two 60W bulbs are operated on a switch in a residential applications
An incandescent bulb typically has an inrush current that is typically 12-15 times the amount of the steady state operating current. Thus for a 60 watt bulb that normally draws about 1/2 Amp steady state current, the inrush current is about 7.5A, when using the high end of the multiplier to be conservative. The more efficient Compact Fluorescent (CFL) and LAMPS made out of LEDs, generally have a switching power supply, even if it is built into the “bulb.” For LEDs, the power supply is generally referred to as the “driver” and the entire light or four lamps in a commercial application will have an inrush current of 15A and Waveform 30 Amp respectively. The issue for lighting comes in when the 60W bulbs are replaced by electronic lights such as a CFLs or LEDs. In this case, both the CFL and LED replacements have a switching power supply powering the end light. Here’s where the problem comes in. Like an incandescent bulb, very few CFL or LED products state their inrush current. As long as the inrush current is less or roughly equivalent to the 7.3A inrush current of a 60W bulb there are no problems. Unfortunately that is rarely the case. While “good” CFLs often a to have fairly equivalent in-rush current, many don’t. Many if not most of the “lower cost” LED drivers have a 30A inrush, with some as high as 45 or even 60 amps! In comparison, even the inrush current of a 100W incandescent bulb is only about 12A. You can often actually notice the increase in the inrush current when one changes out a few incandescent bulbs for CFLs or LEDs by listening as the light switch is turned on. A louder “snap” emanating from the wall switch is a to have higher inrush current surging Steady-state current
WHAT IS INRUSH CURRENT:
assembly is often referred to as a “luminaries.” Regardless, a switching power supply usually has a large capacitor on the supply’s input that must be charged up when power is first applied. This is what generates the inrush current. Once the capacitor is charged, it requires only the steady state operating current to keep it charged. It is worth noting that the capacitor is required to keep the light from having a flicker as the response time of a CFL and LED is much faster and greater than a tungsten filament to a change in voltage. The inrush current of a switching power supply all depends on the design of the switching power supply. Usually the inrush current is much higher than that of a 60W incandescent bulb unless special, and more costly, steps are taken to limit the inrush current to lower values. For switching power supplies, an inrush current of 30A is fairly typical for a circuit. “Good” CFLs are engineered to have lower in-rush currents. across the switch’s contacts. A larger current surge will wear out and ultimately destroy the switch’s contacts faster than a smaller surge current will. How much faster will depend on the amount of the surge current, the quality of the switch, and how often the switch is turned on and off. However, given that most switches in the Movement Detectors or Astro Timers are now made in China… Now as more and more incandescent bulbs are being directly replaced by CFLs bulbs or LED luminaries with larger inrush currents, there are general problems. The new “high efficiency” lights can actually result in pre-mature failures in these devices meant for the energy saving. It would be a gross understatement to say that nobody would appreciate early failures of Movement Detectors, LDRs, Time Switches when they turn on the lights. Especially when these Energy Saving Switches need to operate for more than a year (on an average) to give the return on investment. The only solution for this potential problem is to get CFLs or LEDs that have an equivalent or low inrush current. Since very few manufacturers state the inrush current number, good luck in finding one. The other best option is to use Movement Detector, LDR, and Timers etc which have been designed to handle these inrush currents without getting worn-out prematurely and maintain a good Electrical Life.
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n 28 April 2018 Indian Prime Minister Narendra Modi announced that India had achieved its goal, ahead of schedule, of providing electricity to every village in India. Leisang, a village in Manipur, was electrified. This is a milestone in India’s electrification programme, as all inhabited villages have been lit up. This is one of the greatest achievements in the history of energy. Does it mean that electricity has reached every household ? The electricity has definitely reached every village but last mile connectivity to every household is yet to happen. Impressive as India’s electrification achievement is, it’s best to regard providing electricity to every village as a first step. It deserves celebrations, certainly, but the unfinished task is critical. The journey ahead must be used to contextualise milestone of reaching every household. The electricity coverage in India is still mere 80% with installed capacity of around 340 GW. About 30 Crore (300 Mn) people still have no access to power i.e. huge 23 % of the India’s population. India is the third largest producer & third larger consumer of electricity after China & United States. We are making 1.1 trillion units of electricity annually now. India has surplus power generation capacity but lacks adequate infrastructure for supplying electricity to all needy people. Unlike advanced countries like
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INDO – CHINA COLLABORATION FOR TESTING SOLUTIONS
in Europe & United States, we neither have uninterrupted power, nor clean power or cost effective advance & highly reliable testing solutions to gauge the quality of the power.
Keeping above gap areas in mind, birth of RELIPOWER, INDIA has taken place. RELIPOWER, INDIA is committed to make whatever little contribution it could make in this area. The endeavor of RELIPOWER, INDIA is to fill the gap by bringing latest innovative world class cutting edge solutions in this area by providing uninterrupted clean power solutions also using alternative green energy sources like Sun & Wind and also provide cost effective advanced & highly accurate testing solutions to test the quality of the power. RELIPOWER, INDIA is pleased to announce that it has entered into collaboration with globally renowned & two decade market leader in China, PONOVO POWER for providing cost effective advanced & highly accurate testing solutions in India. Ponovo Power Co. Ltd. Beijing, China is a public listed company in China with 2 factories & 21 own offices across China with touch base of 40 countries. This Indo China collaboration between two companies with focus & commitment to provide cost effective latest innovative world class cutting edge test solutions shall endeavor to address
this area. Ponovo Power, China already has presence in India since last 10 years but with this new joint collaboration, it shall address this gap area more aggressively. Both, Mr. Chen Wei, Managing Director, Ponovo Power, China & Mr. Sanjay Gupta, Managing Director, Relipower, India are very excited about India market & to achieve this fulfilling mission to address this gap area. In a phased manner, all these testing solutions would be manufactured in India under Make in India initiative encouragement given to us by our Prime Minister Narendra Modi. It shall give great advantage to end customers to have customized solutions with local repair & service support within India. There shall be no compromise on quality as both of our companies strongly believe in it and see quality is a profit. All the testing solutions shall be co-branded as RELIPOWER-PONOVO. PONOVO POWER is the first relay testing equipment and power amplifier manufacturer in China since 1998 and dominated No.1 market share until now. After 20 years of development, PONOVO POWER has become professional electrical testing and service providers, not only for primary and secondary injection testing solutions, smart grid testing solutions, but also new-energy testing solutions for both AC & DC applications for all global users in more than 40 countries. ||www.electricalmirror.net||
ABOUT RELIPOWER-PONOVO PRODUCTS L336i Relay Test System :
It is the incomparable smallest and lightest relay test set in the world, which is only 8.8 kg, best portable solution for engineers who need to take test set to different field for testings. It is the 1st choice of the engineers who travel a lot. It is with 2 versions, one is standard version with 6 current output and the other one is economic version named L336i-E with 3 current output so that users could choose suitable one according to their testing requirements. L336i supports not only laptop control but also cellphone APP(Both IOS and Android) control to do various relay testings. Powertest software used for L336i, has more than 30 testing modules, support all relay testing functions required. Also, we offer customized template service for users, which is free additional technical service for the users.
L336i Relay Test System
PCT200 CT/PT Test System :
PCT200 CT/PT test system is the best CT testing assistance, with additional PT test function as well, for engineers. It supports not only IEC60044-1/6, IEC61896-2, IEEE/ANSI C57.13, but it also supports Indian CT standard, IS2705, which is specially R&D created for Indian market. For Indian market customers, PCT200 CT/PT tester could directly test the CT based on IS2705 standard, which is much more convenient in the field testing. PCT200 CT/PT tester is with local windows OS and owns auto-assessment function in its local testing software, so that engineer shall directly to check the test result as PASS or Fail automatically after testing, which is much more efficient in the filed testings.
Beside, PCT200i has another report tool software which could be used for managing, analyzing testing results and convert the report into excel format on PC. Beside CT testing, it also has PT testing functions for Polarity, Excitation curve, ratio testing with large color display.
PCT 200 CT/PT Test System
T200A Single Phase Test Set :
T200A is the best single phase test set which could output 250A continuously for 2 minutes. It is electronically integrated design with electrically grid isolation. All current and voltage source are built-in one test set, no need external meter to support to do testings. Only one button pressed, T200A shall start outputing necessary current or voltage value to do the testings. Its local test software support various single phase relay testings, such as moter overload relay, overcurrent, undervoltage, auto-reclosing, differential, distance, synchronizer, etc. Also it could be used for testing basic charateristics of CT and PT, such as polarity, ratio, etc. It could also used as a timer or other application for single phase testings.
Both conventional type & 4-quadrant type are produced. There are 2 kinds of linear amplifiers, panelmounted which only we manufacture across the globe and another one is portable one. The amplifiers shall need to work together with simulation system to do the simulation, such as, simulation of a substation, or microgrid, or distributed generation or wind power, photovoltaic, or ship grid, etc. For the customers who want to purchase simulation system or already purchased the simulation system, they must have to purchase amplifiers because the signal output from simulation system is low-level signal, which could not be directly connected to other devices, such as relays or breaker circurity, other IEDs, etc. The amplifier received the low-level signal from the simulation system and then amplify the signals into the normal level signals, like current, voltage, frequency. And then the normal level signals could output into other devices. The amplifier seems like a necessary media between simulation system and other devices.
Panel Mounted Power Amplifier
T200A Single Phase Test Set
Portable Power Amplifier
You could reach us to know more about us & our solutions at www.relipower.in or write to us at email@example.com ||www.electricalmirror.net||
ELECTRICAL MIR ROR || JULY 2018 || 171
“ SKS Sensors® Temperature Sensors go ‘Hand in Hand’ With PR Temperature Transmitters to Hazardous Locations all Over the World ” SKS values PR products’ ability to complete temperature measuring solutions with quality and reliability... SKS Group is an ATEX and IECEX certified temperature sensor manufacturer located in Finland. The company develops, manufactures and sells thermocouples and Pt100 resistance thermometers (RTDs) of the trade mark SKS Sensors®, imports and sells cables, connectors and other process and factory automation components. SKS also processes wire harnesses, offers electrical assembly service and performs temperature calibration tasks according to customer needs. SKS Sensors® temperature sensors are represented by a rapidly expanding chain of distributors all over the world.
Products used - examples: • • • •
4114 - universal transmitter 4501 - display/programming front 5104B - Ex repeater / power supply 5333A - 2-wire programmable transmitter ®
• 5337D - 2-wire Ex-transmitter with HART protocol
4114- Universal transmitter
SKS and PR electronics have been working together since 1982. SKS values PR products’ ability to complete their temperature measuring solutions with quality and reliability.
• Input for RTD, TC, Ohm, potentiometer, mA and V • 2-wire supply > 16 V • FM-approved for installation in Div. 2 • Output for current and voltage
5104B -Ex repeater / power supply • • • •
1- or 2-channel version 3- / 5-port 3.75 kVAC galvanic isolation Loop supply > 17.1 V in hazardous area 20 programmable measurement ranges
• Universal supply by AC or DC
• Universal AC or DC supply
Matching portfolio and values
“The biggest advantage is that we can create complete packages of temperature measuring circuits. The widely approved PR products with our certified SKS Sensors® are a matching technical solution, even for hazardous environments. On our certificates there are PR product types specified to guarantee the quality, safety and reliability of the whole package. Many decades long co-working periods has taught us to easily choose “the red boxes” - the right solutions for our customers. Besides - both PR devices and SKS Sensors® are guaranteed by a five year product warranty - another matching feature, which is appreciated by our customers”.
4501 -Display / programming front
5104B -Ex repeater / power supply
5333A - 2-wire programmable transmitter
4114 -Universal transmitter
4501 -Display / programming front
• Modification of operational parameters in system 4000 and 9000 devices • Fixed display for visualisation of process data and status • Password protection • Scrolling help text in 7 languages • Clicks on to the front of the device mounted in the process
• • • • •
RTD or Ohm input High measurement accuracy 3-wire connection Programmable sensor error value For DIN form B sensor head mounting
5333A - 2-wire programmable transmitter 172 || July 2018 || ELECTRICAL MIR R OR
isual level indicators combine up to three functions in one instrument: Level indicator, level switch and level transmitter. The display that can be read even over large distances works without energy and automatically as a result of the physical law of liquids in communicating vessels. The WEKA visual level indicators are characterized by their compact design and the wide range of applications.
Wide application range
Operating pressures can range from a vacuum up to 500 bar as well as calculation pressures for the float standpipe up to the nominal pressure PN 630. Liquid densities > 0.27 g/cm3 as well as a temperature range from 77 K to 673 K (-196 °C to 400 °C) allow use in applications for cryogenic liquid gases as well as in water hydraulics and steam boilers. Hermetically sealed floats for condensing media are available up to a max. operating pressure of 320 bar.
Flexibility through the choice of suitable materials
• Standard materials: 316/316L 1.4435/1.4404, group A4 stainless austenitic steel. • Other possible stainless austenitic steels: 304/304L 1.4301/1.4306, 1.4571, 321, 1.4541.
Energy-free, automatic operation
The WEKA visual level indicator is ideal for the
commissioning of systems. The display works without energy and automatically as a result of the physical law of liquids in communicating vessels. Independent of a controller - and thus also independent in the event of a power supply failure - visual level indication on site is ensured.
The wide, red- and silver-colored flag indicator system is easily and clearly readable, even from over large distances. The fully transparent flag indicator system made of polycarbonate (PC) also ensures readability for the side. The liquids, which are not always unproblematic and sometimes also hazardous, are safely enclosed in the dense and pressure-tight float standpipe and separated from the indicator.
As described, WEKA visual level indicators offer the ideal solution for almost all operating conditions. For most applications, you will find a suitable device from our standard program. Again and again, however, customized solutions are also required for special operating conditions. Many designs can, for example, also be used in hazardous areas according to ATEX or IECEx. (ATEX is a widely used synonym for the ATEX guidelines of the european union.) The designation ATEX is derived from the french abbreviation for atmosphere explosibles. Our instruments can thus also be used in potentially explosive atmospheres.
For Details contact: Toshniwal Hyvac Pvt Ltd 267,Kilpauk Garden Road Chennai - 600010 Contact : +91 44 26445626/ 8983 Email firstname.lastname@example.org Web: www.toshniwal.net
Applications: Explosion-proof plants | Mechanical & Plant engineering | Water management | Ship building | Energy | Space | Research.
MECO “POWERGUARD” MECO offer POWERGUARD in four Models – PG07, PG08, PG09, PG09H POWERGUARD is a simple to use and easy to handle product which can be widely used because of its portability and light weight. It can be used to measure various parameters like Voltage (V), Current(mA), Power factor(PF), Power consumption(kw), Energy usage time(EUT), Energy consumption(kWh), Frequency(Hz) and Carbon Emission (CO2). You can use POWERGUARD • During Research & Development to measure power factor, energy consumption and current drawn by your product & use the measurements to optimize your product design. • For Quality Check on the manufacturing line POWERGUARD will help you to know power consumption of your manufactured Electrical Products. • At the Point of Sale POWERGUARD will help you to demonstrate energy efficiency of your product over the competition. ||www.electricalmirror.net||
• POWERGUARD is also useful during field visits to help you to demonstrate testing of appliances easily as this is a handy product. • You should use POWERGUARD because • It is an economical product and gives maximum value for your money. • You don’t need to buy many instruments to measure different parameters; as POWERGUARD has 7 – 8 measurements in one instrument. • It has memory retention so that it stores selected data during the power failure or power off condition. • Simple to use, Easy to handle and accurate to measure. • Backlight display helps to read even in dark / low light areas. How to use POWERGUARD? Just put POWERGUARD’s plug into a power socket, and then put your electric equipment’s plug into Power Guard’s socket, values of each given parameters can be displayed on LCD.
For details please visit our website: www.mecoinst.com
ELECTRICAL MIR ROR || JULY 2018 || 173
Critical Power Solutions for Data Centres
hat industry needs?
Modern organisations depend on reliable access to data. They increasingly expect their data to be available from any location across a wide range of devices. Access needs to be fast, reliable, and secure. Meeting these needs has led to tremendous growth of data centres. Data centre growth is driven by increasing requirements from Banking, Financial Sector & Insurance, IT & ITES, Telecom and social media. Aggressive government policies such as National Informatics Centre (NIC), State Wide Area Network (SWAN), Common Service Centre (CSC), State data centre (SDC) to increase the digitalisation of records have also aided to the data centre growth. Managing a data centre can be a significant challenge, as it needs to have high availability, extremely secure, scalable, and connected to great communications infrastructure. Infrastructure that would support future expansion for at least over a decade without major modifications is preferred. Availability of reliable power is the biggest challenge for data centre growth. Demand for continuous power supply and energy efficient products to manage the operating costs is high. Power outages force data centres to look
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for alternate power sources, where diesel genset are the most favoured option for in house power generation. On the other hand, downtime results in lost revenue and poor customer satisfaction. Hence a data centre with higher availability is always a favoured destination for clients to have their servers.
We suffice your requirements
DEIF specialises in developing emergency, standby and backup power solutions for both, captive and colocation data centres. DEIF has a strong track record in developing emergency, standby and backup power solutions for mission-critical facilities such as data centres. DEIF's Automatic Genset Controller, AGC-4 features proven technology for a wide range of generation systems in critical power applications. Deploying DEIFâ€™s solution for your mission critical facilities will give you the crucial business edge over your competitors and benefit you in numerous ways to elevate your data centre to Tier-4 level by reducing your maximum annual downtime. â€˘ Increased reliability and flexibility Normally N+1 systems are used in data centres to have reserve genset. We further add to the reliability ||www.electricalmirror.net||
of system by providing a redundant controller so that your backup genset power has no single point of failure. In DEIF’s redundant control system, two controllers operate in Hot Standby mode, with one as active controller while the other acts as a standby controller. The standby controller is connected to the active controller through CAN bus and remains updated with the latest events and information at all times. In case of any unexpected fault in the active controller, the standby controller assumes control without any load or speed jumps during transition, thus ensuring continuous flow of power. • Fast energy backup AGC-4 controllers are capable of synchronous starting of multiple genset using Close Before Excitation and can deliver record start-up from an impressive less than ten seconds for multiple genset in parallel, redundant control systems, or even an entire redundant power plant. Switching over the load of whole data centre quickly to backup genset is made efficient using digital voltage control. Communication between DEIF’s Digital
AVR and genset controllers facilitates the enhanced performance. The Digital AVR also delivers superior step load performance leading to lesser requirement of reserve power and hence less number of online genset for a given load. • Fuel optimisation DEIF’s controllers are designed to run optimum combination of genset thus reducing fuel consumption, cutting emissions and operating cost, and increasing efficiency of your backup genset power making it greener with fast ROI. • Remote monitoring DEIF’s Advanced Graphical Interface - AGI 400 series, allows the user to view the entire system on a single screen thus facilitating convenient and effective monitoring and control of all systems or any other third party systems and critical parameters simultaneously; over one centralised IP based network from a remote location at the touch of the graphical user interface.
• Scalability Aiding your future growth and expansion plans, DEIF’s controller system is fully scalable multi-master system of up to 992 genset with plant management option in one application without making major modifications in the existing project. • Quick Service DEIF has a classic team that has strong technical know-how in the areas we operate and a support system at your service which is nearer to you to solve the toughest challenges that you may face. DEIF India has offices in Mumbai, Delhi, Bangalore, Chennai and a repair centre for fault identification, rectification & testing in Mumbai. Choosing DEIF means reliable and fast on-site service & support. Communicate with us DEIF solutions enable you to fulfil the demand of end users and serve your clients better. With these solutions, DEIF not only meets the data centre requirements, but also exceed the expectations of our customers.
If you want to be the preferred destination of your probable clients to have their servers and be distinguished from the rest, get in touch with us at email@example.com or call 022-4245 2000. We will be happy to help you.
Automatic Control Indoor as Well as Outdoor Lights of your Plants Light dependent relays, also known as Daylight Sensors can be used to control your lights according to the increasing/decreasing ambient sunlight intensity (LUX level). The level of the ambient lux setting can be done with the help of adjustable knob on the sensor. Street lights can be automatically controlled (ON & OFF) depending upon the fall or rise of the ambient lux level beyond your set limit. In other words your lights will be automatically switched ON in the evening or during cloudy conditions & switch OFF in the morning. The sensors can be mounted directly on the individual poles, walls or inside the feeder panel on DIN rail. A) 10 series LDR: These LDRs comes with inbuilt lux sensor, can be directly mounted on the individual light poles, and mostly used when a light feeder panel is not available. B) 11 series LDR: These LDRs comes with external lux sensor. The controller can be easily mounted inside the feeder panel on the DIN rail and the lux sensing sensor can be mounted on the panel body to sense the external lux level. ||www.electricalmirror.net||
Advantages of Finder make LDRs:
• High inrush current handling capacity. • Very high electrical life of 1 lakh switching cycles at full load, which ensures its durability over a long period of time. • High ambient temperature range of -30..+75 deg C, ensures normal working even in extreme temperature conditions. • IP protection rating of IP 54/IP67, which ensures high ingress protection, thus makes it Suitable to use in external environment. • “LIGHT FEEDBACK COMPENSATION PRINCIPLE”: This is the unique inbuilt smart patent technology which avoids the sensor from false switching or hunting if any artificial light is thrown on the sensor. • “ZERO HYSTERESIS”: This inbuilt patent feature ensures the Switching ON & OFF of lights at the set lux level itself without any hysteresis or delay. Contact us for detailed information, other ENERGY saving devices also available for Indoor & outdoor light control.
Finder India Pvt. Ltd. Delhi – 110034 | Ph: 011 – 47564343 E mail: firstname.lastname@example.org ELECTRICAL MIR ROR || JULY 2018 || 175
CBA3000 – ALL IN ONE CIRCUIT BREAKER ANALYZER ISA - ALTANOVA GROUP has released its brand-new CBA3000 especially designed for Testing of Circuit Beaker at Site as well as Factory. The ultimate all-in-one circuit breaker analyzer: safer, faster and more accurate than ever. It allows any timing test, motion and speed analysis, multiple contemporary static and dynamic contact resistance measurements, Both Sides Grounded (BSG) tests, Undervoltage condition test and more. All these functions are integrated into a single lightweight test case without the need of connecting additional external modules. • Faster: one single connection set up to perform automatically all possible Circuit Breaker tests • Safer: Both Side Grounded feature without any additional external boxes/modules
• F/6 static and dynamic contact resistance measurements – 200A DC output each • 16 or 24 fully user configurable Main/PIR and auxiliary input contacts • 2, 4 or 6 Open / Close coil commands • 3 analog linear/rotary transducers and 3 digital transducers inputs for travel/ speed analysis • Up to 8 analog input measurements. • Minimum voltage trip coil test, fully automatic • On-screen control and test results evaluation • TDMS software suitable for test executions, results analysis, archiving and test report creation
FALCON – Introducing a New Era of PD Monitoring for MV Applications
ECHIMP - ALTANOVA GROUP has released its brand-new FALCON PD acquisition unit especially designed for MV applications like MV-switchgear, Ring-Main-Units (RMU), MV-cables and motors. Currently permanent partial discharge monitoring is applied mostly to the costliest electrical devices like HV-cables, GIS, Power Transformer and Generators, as PDM systems are known to be complex and exclusive. Today for this reason only in rare cases, where process stability or other critical parameters prevail (mostly in industries), MV assets are furnished with PDM systems. The FALCON will radically change this perception by combining high-end technology, easy installation and high reliability with affordable cost. The technology of the FALCON benefits from decades of research of partial discharge phenomena within TECHIMP. Proven Technology has been transferred from HV monitoring like GIS, HV-cable, Power Transformer and Generators to the brain of the FALCON. The device incorporates TECHIMP’s patented and well recognized T/F-map technology for unsurpassed noise suppression as well as PD source separation and identification. The FALCON will be connected to PD sensors like HFCTs, TEVs or coupling capacitors.
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Onboard computing power and data storage allow for detailed analysis of actual and historical data through a web-browser interface making a central server obsolete. The unit can be connected to the LAN-network and reached through a web-browser from any PC/Laptop anywhere inside the network. Alternatively, the unit can be connected to a laptop directly on site. The HMI informs the customer about status, alarm events, system notifications, trends of various statistical magnitudes and setup functions. A Smart Alarm configuration is considering Q-max and trending, thus avoiding false alarms. Dry contacts for RTU / SCADA communication are available. Easy installation and commissioning through auto-setting keep installation costs low. However, in the expert-mode the customer can establish his own settings. Any number of FALCON units can be daisy chained. The FALCON is the new device introducing reliable PD monitoring in distribution networks on a larger scale. With the FALCON asset managers
of distribution networks have the opportunity to apply proven technology for condition assessment to their assets to increase availability and to reduce maintenance costs. ALTANOVA - Each day around the world we help asset managers with custom-made condition assessments to fulfil their tasks to maintain highest availability within budget limitations.
ISA ADVANCED INSTRUMENTS PVT LTD- Altanova Group Company C-33, GF, Sector-2, NOIDA-201301, UP, India. Phone: +91 120 4222712 / 4543853 / 54 |Fax: +91 120 4574772 email@example.com www.altanova-group.com | www.isatest.com | www.techimp.com ||www.electricalmirror.net||
ENERGISING THE INDUSTRY 5 - 7 MARCH 2019 DUBAI WORLD TRADE CENTRE, UAE
TRANSMISSION & DISTRIBUTION
ENERGY STORAGE & MANAGEMENT SOLUTIONS
ENQUIRE FOR YOUR STAND
ELECTRICAL MIR ROR || JULY 2018 || 177
Gandhi Automations Pvt Ltd - India's No.1 Entrance Automation and Loading Bay Equipment Company
his widely recognized position has been achieved over years of hard work, innovation, commitment to quality and reliable customer service. The company is also proud to be certified to ISO 9001 : 2008. Since its inception in 1996 we have been manufacturing, importing, distributing and installing products that are problem free and easy to operate. The company offers complete logistics solutions by providing Dock Levelers, Dock Shelters, Sectional Overhead Doors and Dock Houses. Electro-hydraulic Dock Levelers offered by Gandhi Automations are not only “a bridge for connecting a vehicle”, but also facilitate fast, smooth and safe transition by compensating the difference in heights between the loading bay and the vehicle. This contributes to minimizing energy used and savings on heating and chilling costs resulting in maintaining the quality of the transported goods. Dock Levelers offered by Gandhi Automations are designed as per EN 1398 standard for the most demanding loading and unloading operations.
Efficient loading & unloading the goods:
For further details contact:
Gandhi Automations Pvt Ltd Chawda Commercial Centre Link Road, Malad (W) Mumbai – 400064, India Off : +91 22 66720200 / 66720300 Fax : +91 22 66720201 Email : firstname.lastname@example.org Website: www.geapl.co.in 178 || July 2018 || ELECTRICAL MIR R OR
The importance of efficient loading the goods has always been evident, and it have increased over the years, essentially for two reasons: the lesser availability and the higher cost of manpower. Consequently lesser qualified manpower is being utilised which leads to damage to the goods. The cost of loading and unloading the goods can be calculated precisely and is exactly definable, which allows for a scientific approach to find out the investment that goes into the process. Gandhi Automations has always designed solutions based on such scientific approach and feedback from clients. The Dock Levelers offered by the company ensure loading
and unloading with lesser effort and minimal cost. It is possible to load and unload your products in a safe way and in the process obtain remarkable energy savings. The loading bay remains with the Dock Leveler in rest position and the Sectional Overhead Door closed, until the vehicle is positioned. The driver drives back centring to the Dock Shelter and stops the vehicle the moment it gets in contact with the bumpers. The Sectional Overhead Door is then opened only when the vehicle is positioned, brakes applied and engines shut off .This eliminates the exit of hot air, intake of cold air (or the opposite in hot and inside conditioned places) and intake of exhausting gases in the warehouse. After the Sectional Overhead Door opens, the lip of the Dock Leveler connects to the truck bed for loading / unloading to take place. At the end of the loading/unloading the Dock Leveler is put in rest position and the Sectional Overhead Door is closed, without moving the vehicle. The vehicle then departs at the end of the process. Following are the two types of Dock Levelers a) Radius Lip Dock Levelers Radius Lip Dock Levelers allow the dock to connect with the truck bed, thus making it possible to drive directly on and off with forklift trucks etc. The self-cleaning lip hinging system does not retain rubbish with automatic end-of-run, so as to keep the 25 mm security distance between the folded lip and structure as per EN 1398 & EN 349. b) Telescopic Lip Dock Levelers Telescopic Lip Dock Levelers are ideal for connecting vehicles unable to drive near dock i.e. sea containers, side loading railway wagons etc. These types can be supplied with a lip extending up to 1 m.
Gandhi Automation’s Dock Levelers are equipped with the most secure safety devices and accessories. ||www.electricalmirror.net||
A Frontline Global Presence in Electrical Test & Measurement Equipment Since 1940, with Specialized Expertise in Low Voltage Test & Measurement. In India, the company has been present for many decades already, offering world class products optimized for Indian needs at 'just
right prices'. Many of these products have for long been the choice equipment of every Indian electrical installation professional.
Kyoritsu India offers one of its Widest Ranges of • Multimeters features more than 15 diverse models, with test voltages ranging from 0V to 1000V, and analogue or digital indicators. Battery-powered, compact and user-friendly. • Voltage detector is a handheld probe for non-contact voltage detection. Voltage detectors or test pens rely on capacitive current only and essentially detect the changing electric field around AC energized objects. • Clamp meter features more than 25 diverse models in categories like AC Clamp Meters (Analogue & Digital), AC Fork & Flex Type Clamp Meters, AC/DC Clamp Meters; Milliamp Clamp Meters (DC & AC/DC); Leakage Clamp Meters. Compact, Safe and user-friendly, many of these Models are industry standard in their respective categories. • Insulation Testers features more than 20 diverse models, with test voltages ranging from 15V to 12KV, and analogue or digital indicators. Battery-powered, compact and user-friendly, each and every product is an industry standard today. • Earth Ground Tester is measure 3pole and
2pole Earth Resistance and also this tester makes earth resistance measurement with fall of potential method, which is method to obtain earth resistance value Rx by applying AC constant current I between the measurement object E (earth electrode) and H(C) (current electrode) and finding out the potential difference V between E and S (P) potential electrode. • Power Quality analyzer is used to measure the power in W, kWh or to analyze and measure harmonics, apart from being used as energy-measuring devices Power analyzer can also be used for network analysis and determination of harmonics. • Phase Rotation Tester is used for detecting the sequence of the supply in three-phase electric circuits. Since the direction of rotation of three phase electric motors can be changed by changing the phase sequence of supply. Different types of phase sequence testers are available in today’s market like contact or non-contact. • RCD testers measures trip time and trip out current at different ranges. Constant current
source circuitry ensures that a fluctuating mains voltage does not affect the accuracy of readings. • Data logger is a compact, batterypowered device equipped with an internal microprocessor, data storage, and one or more sensors, or sensor ports. Data logger is used for data logging of various electrical parameter of 3 channel inputs for the simultaneous recording of Le • Multi-Function Tester is a 4 in 1 extremely handy tool; can do PV Insulation, Insulation, Earth Testing, Voltage Measurement all in one. And that’s not all it has Timer for PV Insulation Testing & has logging & PC Interface for Record Keeping too. • Portable appliance tester is used widely in electrical equipment preventive maintenance programs and enable users to verify the electrical safety of all type of appliances quickly and effectively.
Kyoritsu Products are readily available in India & have complete Service & Calibration Support Setup too.
ELECTRICAL MIR ROR || JULY 2018 || 179
Push-In-Technology is the new modular terminal block generation in the CLIPLINE complete system. The push-in technology with up to 50% lower insertion forces provides user-friendly wiring with maximum contact quality never previously reached. Pullout forces are 5 times the IEC requirement Direct push in of ferruled wire can be accomplished with the lower insertion force, and stripped, stranded wire is easily terminated using the orange indicator push button.
Push-In-Technology terminal blocks are also based on the compression spring principle, but they set new standards for ease of use and ergonomics. Up to now, only rigid cables the size of the terminal’s nominal cross section had sufficient stiffness for tool-free and relatively practical wiring of comparable products. Push-In-Technology terminal blocks, however, work with plug-in forces reduced by approximately 50 percent.
With the new terminal principle, flexible cables with ferrules starting at 0.14 sq.mm. to 185 sq.mm. can be connected directly to the terminal point without tools. The Push-In-Technology terminal block with stripped stranded wire also offers time savings (35%) over traditional spring cage, with ease of use and identification. Metal parts made of corrosion-free, high-grade copper alloys
which provide good electrical conductivity, Low temperature rise, surface protected by a lead-free, galvanic nickel or tin plating, leg springs made of high-strength stainless steel. Insulating housing made of elastic plastic with a high impact strength with Certification in accordance with UL 94 for inflammability class V0 that can be operated upto 130 deg. Celcius
Additional benefits of push-in technology:
• Vibration resistance according to railway standard DIN EN 50155 • Shock and corrosion resistance according to current shipbuilding registers • Certified for process engineering for increased safety (Ex e)
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Han-Eco® B: REAR-MOUNTED CONNECTOR SAVES TIME AND MONEY HARTING multiplies the possible uses of plastic connectors. The Han-Eco® range now includes plastic housings that are fully compatible with the standard Han® B. This opens up the entire portfolio of Han® B inserts for the Han-Eco®. New improvements are the rearward mounting of prefabricated inserts, e.g. in a bulkhead-mounting housing on the switch cabinet.
he new Han-Eco ® connectors provide enhanced functionality for the industry standard Han ® B compared to their metal-case counterparts. Innovations include e.g. the option of rear mounting when assembling a switch cabinet: pre-assembled inserts no longer need to be inserted from the outside into a bulkhead-mounted housing on the control cabinet wall. During assembly, the ends of the wiring harnesses can be snapped into the mounting housing from the inside of the switch cabinet rearward. This option simplifies assembly and thus saves time and costs. Switch cabinet units and cable harnesses can be
pre-assembled separately. A better division of labour is possible and, if necessary, processes can even be outsourced.In addition to monoblocks for Han® B, the Han-Modular® range can also be used in plug-compatible fashion in the new Han-Eco®. The hinged frame allows the modules to be integrated into the plastic housing. As a result, this considerably increases the application possibilities for plastic housings in manufacturing. The new plastic connectors are plug-compatible with the standard metallic Han® B housings. Compatibility with
existing interfaces in environments using the Han® B standard is thus fully guaranteed. Subject to cost and quality requirements, designers can take advantage of all the benefits of plastic and/ or metal. The high-performance plastic of the Han-Eco® B is as robust as that of all other Han-Eco® components. The usual advantages are retained: plastic connectors are not only easy to install, they are also resistant to corrosion and offer flexible assembly options. They are fire resistant to UL94 V0 – which means they are also suitable for use in railway scenarios – and weigh only about half as much as a connector in a die-cast aluminium housing.
In addition to monoblocks for Han® B, the Han-Modular®_ range can also be used in plug-compatible fashion.
ELECTRICAL MIR ROR || JULY 2018 || 181
IR270 IR Thermometer with Color Alert Fast response with high accuracy, the Extech IR270 is ideal for quick checks of multiple spots in a process or for catching spikes in temperature. Easy programmable High/Low Alarm with tri-color display and audible alarm measures non-contact temperature up to 1202OF (650OC).
A. Bright backlit LCD for easy viewing in challenging light conditions B. Display charges color to Blue when temperature is Below low alarm user set point C. Display Charges color to Red when temperature is above high alarm user set point
• Take non-contact temperature measurements form-4 to 1202OF (-20 to 650OC) • Max resolution of 0.1OF/OC and basic accuracy of ±(1% of reading + 2OF/1OC) • 12:1 distance to spot (target) ratio • Built-in laser pointer identifies target area with on/off button • Programmable Hi/Low alarms with audible beeper - tri-color LCD display changes to Blue backlight when reading goes below low alarm setting and Red backlight when reading exceeds High set point • Adjustable emissivity (0. 10 to 1.00) increases measurement accuracy • • • •
• • • •
Record/Recall up to 20 readings Automatic Data Hold when trigger released MAX/MIN/AVG/DIF functions Bright white backlighting illuminates display for taking measurements at night or in areas with low background light levels Auto power off Low battery indicator Dimensions: 7. 1x4.2x1.6" (180x107xx40mm): Weight: 5.3oz (150g) Complete with 9V battery and pouch
FLIR Systems India Pvt. Ltd 1111, D Mall, Netaji Subhash Place, Pitampura, New Delhi – 110034, INDIA Tel: +91-11-4560 3555 | Fax: +91-11-4721 2006 | Email: email@example.com | www.flir.in 182 || July 2018 || ELECTRICAL MIR R OR
KUSAM-MECO” HIGH VOLTAGE DETECTOR “KUSAM-MECO” has introduced the High Voltage Detector Model 276HD, which detects the presence of voltage in AC lines. An elongate insulation rod permits checking of high tension circuits at safe distance for Voltage. This High voltage detector is telescopic, compact, light weight (approx. 185g.) & easy to use & handy. This High Voltage detector is also available for voltage detection in low tension circuits. The equipment, whether in stretched state, is available for voltage detection in high tension circuit (3.3kV, 6.6kV & 24kV) whether the wires involved are naked or insulated. It can be used for voltage detection in low tension circuits (80V ~ 600V) by holding the nameplate portion of the detecting head. Easy to recognize indication with the intermittent lighting in red of a high
intensity light-emitting diode and intermittent audible sound of an electronic buzzer are readily recognizable at a full daylight, noisy location. It has a water proof detecting head, being tightly enclosed, is free form any trouble due to dust, dirt & water. Model 276HD High voltage Detector’s working voltage range for 3kV ~ 24kV & Low voltage range is 80kV ~ 600kV AC. Frequency range is 50Hz / 60HZ. Operation start distance is from 1cm to 20cm & dielectric strength is 4kV AC ~ 50kV AC. Dielectric Strength 50kV AC, 1 min. Working Temperature Range is -10°C ~ +50°C. It operates on 2 button-cells LR44 (1.5V) battery. It supplied with instruction manual & Carrying case.
KUSAM –MECO THERMO HYGROMETER. KUSAM–MECO” introduces New Thermo Hygrometer Model-918–A. This meter has 3 functions: Temperature & Humidity & Time function. These meters read indoor temperature & humidity. Large easy-to-read LCD screen allows you to see the results even in bright sunlight. The meter can measure temperature from –10 to 60oC & 14 to 140oF with ± 1oC/oF Accuracy & Humidity from 20% RH ~ 95% RH with
1% RH resolution. It has also a clock function & Alarm function. In clock function display of ‘hour’, ‘minute’, and 'AM/PM’. The time format is switchable (12 hours or 24 hours format). It has 4 buttons to set clock / Alarm & memorization of maximum / minimum Temperature & maximum / minimum Humidity. The unit runs on 1.5 VDC batteries. It can be mounted on wall or table.
DIGITAL CONTACT TYPE TACHOMETER KUSAM-MECO has introduced a new Digital Display Hand Tachometer Model KM-2235B. The Tachometer has an exclusive one chip micro computer LSI circuit. It is housed in a tough ABS case and has an ergronomic design for easy holding in the hand. It has 5 digits LCD display
with function annunciation. It has memory function to store last, Maximum & Minimum reading. It has a wide measuring range 0-19, 999RPM. It is supplied with accessories and in a convenient case for carrying the instrument safely. It is supplied complete with battery & Manual.
For More Details Contact : KUSAM ELECTRICAL INDUSTRIES LTD. G-17, Bharat Industrial Estate, T. J. Road, Sewree (W), Mumbai - 400015. Tel.: 022 - 24124540, 24181649. | Fax : 022 - 24149659 Email : firstname.lastname@example.org Website : www.kusamelectrical.com ||www.electricalmirror.net||
MODEL - KM 2235B ELECTRICAL MIR ROR || JULY 2018 || 183
Kyoritsu, Japan. A frontline global presence in Electrical Test & Measurement Equipment since 1940, with specialized expertise in Low Voltage Test & Measurement. In India, the company has been present for many decades already, offering world class products optimized for Indian needs at 'just right prices'. Many of these products have for long been the choice equipment of every Indian electrical installation professional. Kyoritsu AC/DC Digital Clamp Meters measure AC/ DC Current with help of small jaw size clamp meter. Kyoritsu 2010’s key features are:
• High sensitivity, miniature AC/DC clamp meter. • 0.1mA minimum resolution for AC current and 1mA minimum resolution for DC current.
• Output terminal for recorder connection.
Clamp on sensor is separated from the display unit, allowing the user to take easy measurements and readings at cramped quarters and crowded wiring Low battery warning symbol plus battery check switch to indicate battery voltage. External power supply jack permits the use of an optional AC adaptor. Convenience for continuous operation by connecting a recorder. Field effect 3 ½ digit liquid crystal display with maximum indication of 1999. Over range indication and sample rate 3 times per second. Kyoritsu Products are readily available in India & have complete Service & Calibration Support Setup too.
Kyoritsu KEW India Instruments Pvt. Ltd. #4, S P Nagar, Navrangpura, Ahmedabad-380006. T : 91 79-2640 9686 | M 0 98246 80404 E : email@example.com | W: www.kew-ltd.co.in
AC DISTRIBUTION BOX (ACDB) for Solar Application • The ACDB receives AC power from the solar inverter and directs it to AC loads / LT Panel. • ACDB is an important part of SPV system as it provides extra protection to the system in case of failures on load side • A provision can also be made in ACDB to monitor the consumption of power from SPV Power Plant • AC Distribution Box makes maintenance easier and enhances system reliability • ACDBs from HPL are designed to deliver high performance and added protection by isolating inverter from mains as and when required • Inclusion of ACDB significantly reduces overall system installation time • ACDB enables installer to isolate different loads from each other at same location thus making repair and maintenance much safer and faster
• All of HPL-AC Distribution boxes are tested/certified as per IEC/ IS standard • The enclosure is available only via the use of designated tools
184 || July 2018 || ELECTRICAL MIR R OR
• • • •
in order to ensure the protection Customizable based solution as per customer needs & requirements Reliable electric safety to prevent Wall mounting design for easy installation and maintenance Every terminal is secured and weather proof making it suitable for outdoor applications also, highly secure wiring, besides being insulated with PG Cable Gland or built-in MC4 terminal connector on demand. Protects the system if there is any fault during failure in AC side Internal Wiring with lugs, ferrules and dressing included
1 IN 1 OUT
For Single Phase
1 IN 2 OUT
For Single Phase
1 IN 3 OUT
For Single Phase
1 IN 1 OUT
For Three Phase
2 IN 1 OUT
For Three Phase
1 IN 2 OUT
For Three Phase
3 IN 1 OUT
For Three Phase
3 IN 3 OUT
For Three Phase
Testing high-voltage plants with thermal imagers from Testo.
hermography increases reliability of supply
As an integral part of electrical supply networks, high-voltage plants such as substations must ensure as uninterrupted a supply of electricity as possible due to the high availability of their electrical systems. A malfunction or interruption of the electrical grid is often preceded by thermal warming caused by electrical resistance. This must be localized, evaluated and if required, the time frame for a repair determined. Using the thermal imagers from Testo, thermal warming can be tested without contact and from a safe distance, without endangering the user or needing to shut down the system.
The solution The challenge
Most symptoms of wear, material fatigue or cable rupture in the transmission of electrical current are preceded by thermal warming due to increased resistance. If this resistance becomes too high, the heat development destroys the component, with the possible result of a power cut. The objective of maintenance work is to obtain an overview of the switchgear which is comprehensive as well as detailed â€“ including all circuit breakers and power switches, converters, insulators, screw fittings, cables or other connections. A further challenge lies in the cooling oil of the transformers. Due to eroded insulation, slurry can occur here, which is deposited in the cooling ribs. The blockage of the through-flow in the affected cooling ribs initially compromises the cooling, and in the worst case can result in the failure of the complete cooling function of the transformer.
With the high-resolution thermal imager testo 890, these sources of malfunction can be quickly and precisely identified before they become serious problems endangering the reliability of supply. The wide-angle lens of the imager quickly provides a meaningful overview of the overall status of the plant being tested. To assess distant measurement objects precisely, the telephoto lens is recommended. It reliably and precisely measures objects with a size of 19 mm from 15 m distance. Anomalies, so-called hotspots, are identifiable from a size of approx. 6 mm. This allows the smallest cable ruptures or warming in circuit breakers, for example, to be evaluated from a safe distance. The large fold-out, rotatable display of the testo 890 allows overhead imaging work, and in combination with the rotating, ergonomic grip, the imager can be confidently handled even in difficult-to-access places. Finally, the status of the system being tested can be professionally documented using the intuitive evaluation functions and the easy report creation of the analysis software IRSoft.
For more details login to our website www.testo.com or write back to us on firstname.lastname@example.org ||www.electricalmirror.net||
ELECTRICAL MIR ROR || JULY 2018 || 185
Livingston India Rent, Buy or Lease Test Instruments for Power Projects Livingston India, Part of Microlease Group is the market leader in electronic test equipment, offering a range of solutions to help organisations globally use test equipment efficiently. Its services help minimises the costs of purchasing test equipment, optimise its use and maximise return at end of life without stretching capital expenditure, and include rental, leasing, sale
of new and used equipment and buy-back as well as full asset management. A team of 350 specialists serves Microlease customers in over 150 countries from offices across Europe, the US and Asia. In India, Livingston is operation from Gurgaon (NCR) and Bangalore offices.
In electrical installation and maintenance projects, Livingston has substantial inventory available in measuring tools, injection devices and analysis devices. Livingston owns inventory from world leading OEMs such as Fluke, Tektronix and Omicron. Below are the details of the instruments, Fluke
Multifunction Process Calibrator
Digital Quality Power Clamp Meter
Phase Rotation Indicator
Transformer Test Systems for Sub stations
Current Boosters, Output current 2000A
Omicron CT Analyzer
Multiple Switch box Analyzer
DSO Oscilloscopes and probes
For renting, leasing or second-hand purchase of the instruments, please do let us know. For more information, call at 0124 4831433 or email at email@example.com 186 || July 2018 || ELECTRICAL MIR R OR
Fluke Launches Set of 4 New Tools in India Anemometer, Lux Meter, Sound Level Meter and Tachometers Fluke Corporation introduces a set of 4 New tools as part of its environmental products range. These new tools are Lux Level Meters, Sound Level Meters, Anemometers Meters and Contact & Non-contact Tachometers.
All the tools are designed keeping HVAC installation & maintenance professional’s and facility manager’s requirement in mind. These rugged and highly accurate tools are ideal for Indoor air quality monitoring, facility maintenance, energy efficiency
management and to conduct HVAC testing and IAQ commissioning and investigations in buildings. These new set of tools shall be launched as part of Fluke Environmental portfolio in India in June 2018, same as the global launch date.
Fluke 925 vane anemometer Easy to use and economical anemometer Designed to meet the measurement requirements of safety Engineers, Health, Industrial safety offices and quality control in a wide variety of industrial environments
Key Product Highlights:
• Ability to measure wind speed in feet per minute or meters per second
• Data capture using one button and the ability to average multiple readings • Min and Max alarm setting to alert the user when limits have been met • Durable over mold housing to protect the unit from drops • 1 M extension of a sensor from display to ensure air flow is captured in hard to reach locations
Fluke 930 & Fluke 931 Contact and Non-contact Tachometers The Fluke 930 is a Non-contact Tachometer and Fluke 931 is a Dual function Contact and Non-contact Tachometer.. Both tools can accurately measure the revolutions per minute (RPM) or surface speed on rotating machinery.
Key Product Highlights:
• 6-digit backlit display for easy data visualization • Signal detection reminder minimizes false readings
• Maximum/Minimum/Average value and final readings • Small size with rugged housing to protect against drops • Easy switching of the contact and non-contact measurement modes (Fluke 931 only) • Different speed measuring heads to adapt to different measurement occasions (Fluke 931 only)
Fluke 941 Light Meter Designed for use in multiple environments, the Fluke 941light meter is easy to use and provides clear data display for a variety of applications.
Key Product Highlights:
• Measure in lux or foot-candles, with one button
• • • •
to switch Measuring range up to 20,000 lux or foot candles Data hold to freeze reading on the digital display Min/max ability to show high and low readings Includes protective sensor cap
• • • •
Auto ranging with Max/Min recording Frequency weighting ranges: A, C Auto power off Large, easy to read Backlit display
Fluke 945 Sound Level Meter Designed to meet the measurement requirements of safety Engineers, Health, Industrial safety offices and quality control in a wide variety of industrial environments.
Key Product Highlights: • Data storage
All products comes with 1 year Fluke India Standard Warranty and Free Statement of Calibration (SOC) certificate to validate instruments accuracy. For more information, visit the Fluke India website. ||www.electricalmirror.net||
ELECTRICAL MIR ROR || JULY 2018 || 187
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Construction Of 400Kv Gis Substation With Sas On Turnkey Basis
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Construction of 765 kV and 400 kV Bays and Supply and Commissioning of 765/400 kV, 3x500 MVA Single Phase Transformers at 765/400 kV GSS Phagi.
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188 || July 2018 || ELECTRICAL MIR R OR
Projects State Government | Himachal Pradesh - India | PID: 178039 Value:Rs. 160 Crore | The Una Municipal Committee signed an agreement with AG Dauters Waste Processing Pvt Ltd., a private firm, for installing a solid waste to energy project in the town. According to Amarjot Bedi, Chairman of the Una Municipal Committee, the project, estimated at Rs 160 crore will convert municipal waste into electricity, fuel and water | Updated on: 04 - Jul - 2018 Private Sector | Orissa - India | PID: 176166 Value:Rs. 7.26 Crore | Alfa Transformers Ltd is engaged in the manufacturing of energy efficient amorphous distribution transformers and thus contributing to Power for All program of Government of India. The company is one of the largest manufacturer for such item in the State of Odisha The company has received a letter of award valuing INR 7.26 Crores from one of our reputed customer M/s ODISHA POWER TRANSMISSION CORPORATION LIMITED, serving the needs of people of the State of ODISHA | Updated on: 11 - May - 2018 Central Government/Public Sector | Bihar - India | PID: 178005 NTPC had signed a memorandum of understanding with government of Bihar and Bihar power utilities for acquiring stakes in power projects on 15 May 2018 NTPC has acquired 27.36 percent equity of Bihar State Power Generation Company (BSPGCL) in Kanti Bijlee Utpadan Nigam (KBUN) which owns 610 MW Muzaffarpur Thermal Power Station The company has also acquired 50 percent equity of BSPGCL in Nabinagar Power Generating Company (NPGC) which is developing 1980 MW Nabinagar Super Thermal Power Project in district Aurangabad, Bihar With this acquisition, KBUN and NPGC are now wholly-owned subsidiaries of NTPC | Updated on: 03 - Jul - 2018 Central Government/Public Sector | Rajasthan - India | PID: 177874 Value:Rs. 227.66Crore | The Rajasthan Rajya Vidyut Prasaran Nigam has invited bids for design, supply and implementation of renewable energy integration-real time data acquisition system for monitoring and control of transmission grid under smart transmission network and asset management system (Part-A1) in Rajasthan The estimated value of the project is Rs 227.66 crore | Updated on: 29 - Jun - 2018 Central Government/Public Sector | Telangana - India | PID: 177544 State-run power equipment maker BHEL has bagged two
orders worth Rs 1,000 crore from Telangana The orders from Telangana Power Generation Corporation (TSGENCO) are for supply and installation of emission control equipment at Kothagudem and Bhadradri thermal power stations, BHEL said The installation of Flue Gas Desulphurisation (FGD) systems will control the emission of sulphur oxides at the two power plants, it said BHEL is executing these projects on Engineering, Procurement and Construction (EPC) basis. The power sector has seen an uptick in the ordering of emission control equipment due to the revised and more stringent emission norms notified by the environment ministry | Updated on: 20 - Jun - 2018 Private Sector | Himachal Pradesh - India | PID: 177500 The Himachal Power Corporation Limited (HPCL) has set March 2019 as the new deadline for the completion of the 111 MW SawraKuddu power project on the Pabbar in Jubbal valley. The project is running almost six years behind the schedule and its cost has shot up more than 30 per cent Power Minister Anil Sharma along the Additional Chief Secretary (Power) Tarun Kapur inspected the project on Sunday. The minister directed the HPCL to complete all works by March 2019 so that the project gets commissioned as early as possible. Though HPCL contractors completed the construction of the much-delayed 11.36-km-long head race tunnel, it failed to meet the December 2018 deadline to commission the project Even CAG report assailed the HPCL for delay and cost overruns. The project was scheduled to be completed in December 2011, but due to delay on the part of the HPCL, contractors pushed the project behind schedule and year after year the deadline was pushed back, revealed the sources The project would produce 386 million units of electricity every year. “The lining work of the tunnel is complete. Power house and barrage works are also complete,” the minister said In fact, the 1,600-m length of the 11.36-km-long head race tunnel was yet to be constructed as the HPCL rescinded the tunnel work from its first contractor in 2014 As a result, the cost of the Sawra-Kuddu project has shot up by about 28 per cent from about Rs 900 crore in 2007 to Rs 1,100 crore, revealed insiders According to HPCL, the affected families will get free 100 units of electricity per month for a period of 10 years, while 1 per cent of revenue from power generation shall be contributed towards the Local Area Development fund during the operational period
is expected to be ready for allotment by the end of 2019 Kinfra managing director K.A. Santhosh Kumar said around 20 acres of the total available 69 acres was being developed in the first phase, and nearly 12 crore had been spent on construction of road and compound wall and preliminary requirements. He was speaking on the sidelines of a seminar on food processing industry held here The seminar, with focus on Kerala as a processing industry destination, was organised by the Confederation of Indian Industry (CII) The electronics cluster at Kakkanad, meant as a facility of international standards, is being set up with Central government assistance. Kinfra has its focus on promoting mostly Micro, Small and Medium Enterprises (MSME), and the upcoming facility has generated encouraging enquiries, Mr. Kumar said During his presentation on the activities of Kinfra at the inaugural ceremony of the food processing summit, he said Kinfra had introduced theme-based industrial parks with designated facilities for sectors like gem and jewellery, food processing, information and entertainment, and apparels Food park Mr. Kumar also spoke about the work in progress at the mega food park in Palakkad, defence park at Ottappalam, spices park at Thodupuzha, footwear park in Kozhikode, and the Global Ayurveda Village projects at Thonnakkal and Varkala Another major initiative of the State government is the seafood hub being set up at Cherthala at a cost of around 129 crore The hub that is coming up at Kakkanad will be served by pre-processing units at Vypeen, Thoppumpady, and Munambam, the three major fish landing centres in the State The Palakkad Mega Food Park will also provide common facilities specially meant to cater to the requirements of the food processing sector like spices processing, warehousing, and packaging houses | Updated on: 29 - Jun - 2018
Private Sector | Uttar Pradesh - India | PID: 178392 Intex Technologies (India), a consumer durables and accessories manufacturer, expects to begin operations at its newly built plan in Greater Noida in the next two months The company’s production in the existing three facilities is in a rented premises. Once the project is completed, these facilities will be shifted to the new plant which will have additional production lines for some of the consumer durables like washing machines and air-conditioners The total investment in the facility will be Rs 500 crore in different phases The new facility is being developed on a 20 acre of land | Updated on: 19 - Jun - 2018 parcel in Greater Noida. At present, the capacity of plants is 112 million units including 55 million mobile phones. With the new State Government | Kerala - India | PID: 177881 The State facility the installed capacity will be raised to 150 million units government-owned Kerala Industrial Infrastructure Development all products put together The company has facilities in Jammu Corporation (Kinfra), has obtained environmental clearance for the and Baddi (Himachal Pradesh) proposed electronics manufacturing hub at Kakkanad The project | Updated on: 13 - Jul - 2018
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ELECTRICAL MIR ROR || JULY 2018 || 189
ABB India Ltd. .................................................................................... Ador Welding Ltd. ............................................................................... AI Earthing .......................................................................................... Akshyan Power Solutions Pvt. Ltd. ..................................................... Ashlok Safe Earthing Electrode Limited ............................................. Ambionics ............................................................................................ Anchor Electricals Pvt. Ltd. .................................................................. Automation Expo 2018 ........................................................................ Bharat Insulation Company (India) Pvt. Ltd. ..................................... Braco Electricals (India) Pvt. Ltd. ....................................................... Cambridge Instruments & Engineering Co. ........................................ Central Power Research Institute ........................................................ Compaq International (P) Limited. .................................................... CMI Switchgears Pvt. Ltd. ................................................................... DEIF India Pvt. Ltd. ............................................................................ Electrotherm (India) Ltd. .................................................................... EPCOS India Pvt. Ltd. ......................................................................... Ericsson Transformer ........................................................................... Finder India Pvt. Ltd. ......................................................................... FLIR Systems India Pvt. Ltd. .............................................................. Fluke Technologies Pvt. Ltd. ............................................................... Gandhi Automations Pvt. Ltd. ............................................................ Green-Watt Techno Solutions Pvt. Ltd. ............................................... H.D. Wires Pvt. Ltd. ............................................................................ HARTING India Pvt. Ltd. .................................................................... Heatflex Cables Pvt. Ltd. .................................................................... HPL Electric & Power Ltd. .................................................................. Indian Energy Exchange ..................................................................... India Essen Welding & Cutting 2018 .................................................. International Copper Association India .............................................. ISA Advance Instruments India Pvt. Ltd. ........................................... 190 || July 2018 || ELECTRICAL MIR R OR
BC 103 191 53 29 97 FC-II 155 75 73 101 33 41 195 P-05 113 P-01 115 193 37 25 P-09 FGF 67 39 65 FC 137 167 159 IFC-II
Kamadhenu Wires ............................................................................... K-Lite Industries ................................................................................... Kusam Electrical Industries Ltd. ........................................................... Kyoritsu KEW India Instruments Pvt. Ltd. ............................................ M & I Materials India Pvt. Ltd. ........................................................... Mahindra Powerol ................................................................................ Maxwell Scientific Corporation ............................................................. Meco Instruments Pvt. Ltd. ................................................................... Middle East Electricity ........................................................................... MGM-VARVEL Power Transmission Pvt. Ltd. ........................................ Next Gen Equipments Pvt. Ltd. ............................................................ Newtronics Green Energy ..................................................................... NSM Technologies Pvt. Ltd. .................................................................. Omicron Energy Solutions Pvt. Ltd. ..................................................... Phoenix Contact (India) Pvt. Ltd. ......................................................... Rectifiers & Electronics Pvt. Ltd. ........................................................... Relipower Technology Pvt. Ltd. ............................................................ Renewable Energy India Expo 2018 .................................................... Riello Power India Pvt. Ltd. ................................................................. Saini Engineering Industries ................................................................ Scope T & M Pvt. Ltd. .......................................................................... Solvina India Pvt. Ltd. ......................................................................... Skipper Ltd. .......................................................................................... Supreme & Company ........................................................................... Suresh Enterprises ................................................................................ Testo India Pvt. Ltd. ............................................................................. Tibrewala Electronics Ltd. .................................................................... Toshniwal Hyvac Pvt. Ltd. .................................................................... Trans-Power Tech .................................................................................. Vishay Components India Pvt. Ltd. ...................................................... Wago Pvt. Ltd. ......................................................................................
69 144-145 57 85 P-02 123 47 19 177 95 196 125 55 IBC 21 59 31 133 P-11 63 P-03 IFC 91 93 71 23 79 27 139 81 P-07
ELECTRICAL MIR ROR || JULY 2018 || 191
EVENT DIARY 29th Aug to 1st Sep 2018
Bombay Exhibition Centre, Mumbai www.automationindiaexpo.com
After delivering a grand and successful event in 2017, Automation Expo, the largest Automation & Instrumentation exhibition in South-East Asia is all set to make a mark in 2018 as well. Under the valiant leadership of Dr. M. Arokiaswamy, IED Communications Ltd has been successfully hosting Automation Expo and achieving its objective to fuel innovation and growth since the past 14 years.
18-20 September 2018 India Expo Centre, Greater Noida www.renewableenergyindiaexpo.com
The Indian growth story now no longer needs to be validated and verified as India is set to become one of the largest solar Hub globally in the coming years driving on the surge is the growing renewable energy industry, which has come out in a big way to carve its fantastic growth trajectory.
28-30 Sep 2018
India Exposition Mart, Greater Noida, India www.elevatorexpo.co.in
11–13 October 2018 New Delhi
www.light-india.in.messefrankfurt.com With an ever increasing demand for smart, efficient and sustainable lighting options, the lighting industry has seen a steady growth of 13 to 15% every year. Reports suggest that India’s Energy demands are on a rise, therefore comes the need of increase in production, which must go hand in hand with a cut in emission levels.
October 15-17 2018
Bombay Exhibition Center, Mumbai
www.ifat-india.com IFAT India is India’s leading environmental trade fair for water, sewage, refuse and recycling. The last event, covering approximately 5,000 sqm of exhibition space, attracted 136 exhibitors from 11 countries. More than 4,100 trade visitors benefited from this ideal platform for successful networking with representatives from the industries and municipal sectors.
06-08 November 2019 Pragati Maidan, Delhi India www.cablewirefair.com
Asia Elevator Escalator Expo is an upcoming business show in India which gives an excellent platform for the vertical transportation industry to meet and interact with relevant leaders, decision-makers and managers under one roof.
The 1st edition was stupendous and emerged as the most practical and realistic business networking platform for the global wire and cable industry. The trendsetter event in Delhi is going to host its 2nd edition in October, 2017 on a bigger scale, with a larger purview to showcase all probable product and processes related to the wire and cable industry. Of course, the impact would also be huge!
11-13 Oct 2018
November 27-29 2018
Pragati Maidan, New Delhi, India www.electrical-building-technology-india.in.messefrankfurt.com
The increasing proliferation in the home and building automation sector across India, has led to an immense growth opportunity in this sector. According to the TechSci Research report, India is projected to grow at the rate of 22% during 2015 to 2020.
192 || July 2018 || ELECTRICAL MIR R OR
www.wire-india.com Here you'll find all the information you need in preparation of your visit to wire India 2018 - 7th International Exhibition for the Wire and Cable Industry.
28-30 November 2018
Jiexpo Kemayoran, Jakarta Indonesia www.myexpo.co.id
Continuing the successful story of POWERMAX 2017, the 2nd edition POWERMAX 2018 coming up to be the international platform to present the prospect of power-energy outlook and the latest project, providing market and industrial player, showcase the update new development technology and information to spur the industry sector globally.
24-27th January 2019
CODISSIA Trade Fair Complex, Coimbatore,Tamil Nadu.
Elektrotec 2019 is one of the largest Electrical and Industrial Electronics sector trade event in India. The show registers high overall visitor figures and facilitates smooth exchange of relevant business information among the participants.
8-10 Feb 2019 Gandhinagar, Gujarat www.energyexpo.in
Energy Tech India Expo provides the ultimate business solutions for the meetings and events industry, uniting an elite class of buyers from India and around the world. Exhibitors benefit from the opportunity to meet with a range of international and regional buyers who have the authority to place real business.
March 05-07 2019
DUBAI WORLD TRADE CENTRE, UAE www.middleeastelectricity.com
Power Generation at MEE is the region's leading, largest and longest running trade exhibition for both conventional and stand-by power related product manufacturers & distributors - and the ideal place to meet buyers looking to source products from either sector.
Energy saving in a new light !
Type 10.51.8.230.0000 Light dependent relay Single output - 1 NO 12 A For pole or wall mounting
Type 10.41.8.230.0000 Light dependent relay Single output - 1 NO 16 A For pole or wall mounting
Type 188.8.131.52.0000 Modular light dependent relay 1 pole NO, 16 A with separate light sensor
Type 184.108.40.206.0000 Modular light dependent relay 1 pole CO, 16 A with separate light sensor
194 || July 2018 || ELECTRICAL MIR R OR
ELECTRICAL MIR ROR || JULY 2018 || 195
We would like to thank everyone, very much, for all your help and support in putting this magazine together. We have really appreciated the...
Published on Jul 9, 2018
We would like to thank everyone, very much, for all your help and support in putting this magazine together. We have really appreciated the...