ABB Power Grids wins order from Indian Oil Corporation for reliable grid connection

ABB Power Grids has been awarded a project worth `165 crore by state-owned refiner Indian Oil Corporation Limited (IOCL) to ensure reliable grid connection at its Barauni refinery in Bihar. The refiner aims to expand its crude oil processing capacity at the plant by 50 percent to 9 million tonnes per annum in the next three years. This project will ensure power quality for its future operations there.

The technology pioneer is delivering its 220/33 kilovolt gas-insulated switchgear (GIS) substation which will assimilate power from the Bihar State Power Transmission Corporation Ltd and IOCL’s captive generation plants and deliver it with efficiency to the Barauni refinery, critical for smoothly running the refinery’s complex processing operations. The GIS substation will also save space by as much as 70 percent by virtue of its compact, robust and low-maintenance design.

In addition to this, ABB Power Grids is equipping the substation with its advanced substation automation and network management tools to control and protect IOCL’s grid in real time and ensure maximum power availability. It is also deploying its industry-leading power transformers (125 mega volt amps) to further enhance grid safety and efficiency.

“This order from IOCL is a milestone in our grid integration projects that will allow us to play a more active role in meeting future energy demand with our pioneering technology solutions,” said N Venu, Managing Director, ABB Power Grids in India. “As India’s oil demand is expected to reach 6 million barrels per day by 2024, refineries will have to prime themselves ahead of time to avoid potential supply disruptions. We are proud to have been chosen by IOCL as a trusted partner to augment its mission-critical power infrastructure for the future.”

No impact on operating projects due to COVID-19, says Azure Power
Azure Power Global, a New Delhi-based independent solar power producer, has recently said that their operating projects have not been impacted due to the COVID-19 pandemic. The New York Stock Exchange-listed firm added that they are comfortable with their revenue and operating megawatt guidance for financial year 2019-20 (FY20) and FY21. For FY20, the revenues are expected to be between `12,900 million and `13,000 million, in line with guidance of `12,770 million to `13,350 million. It added that 1,808 MW was operational.

“Our plants remain fully operational during the recent lockdown in India as electricity generation is designated as an essential service in the country. There have not been any cases of coronavirus reported by our employees as of 10th April 2020,” Azure Power said in a statement announcing its operational and financial updates.

The firm added that it had been receiving payments towards electricity supplied from all their customers in normal course and that there has only been minor curtailment of plants, as of date 10th April 2020. “There has been significant reduction in electricity demand in India and DISCOMs are reporting delay in payments from their customers. We have received force majeure notices from various DISCOMs stating their inability to perform their obligations under the terms of the PPA due to COVID-19,” the firm said.

Lockdown impact: Peak power demand down 25 percent in April’s second week
Peak power demand or highest power requirement during a day fell on an average by 25 percent in the second week of April. According to data compiled by the Power System Operation Corporation Limited (POSOCO), the average peak power requirement from 5th April 2020 to 12th April 2020 stood at 1,22,297 MW, down from 1,63,478 MW in the same period of 2019. The drastic fall in demand is due to the COVID-19 lockdown that has shut down non-essential manufacturing and service industries. Heavy power consumers such as the steel sector are operating at minimal output as product inventory builds.

According to steel company officials, the industrial units are continuing production during the lockdown period. Plant capacity utilisation is much lower than usual, and the production taking place now is just building up the inventory. Lower demand would spell trouble for power distribution companies that will see a fall in bill collections. This also translates to more stranding of power generation units that would require production of even lesser power.