EnergyOnline
Services

RSS FEED

EnergyOnline.com rss

News

Tokyo-based Electric Power Subsidiary partners with AP Solar in 400 MW Texas Solar Project

LCG, August 6, 2020—J-Power USA Development Co, a subsidiary of the Electric Power Development Co. headquartered in Tokyo, has joined a joint venture to develop a 400 MW Texas solar project.

Read more

Texas Solar Project Sold to CIP

LCG, July 31, 2020—An affiliate of Copenhagen Infrastructure Partners has completed purchase of a 350 MW solar photovoltaic project near the Houston metro area from Solar Plus Development Inc. and Avondale Solar.

Read more

Industry News

Enron, Maharashtra Keep on Arguing

LCG, Sept. 11, 2001--Enron Corp.'s Dabhol Power Co. in India wants to get paid for power it has produced for the Maharashtra State Electricity Board.

The MSEB doesn't want to pay Dabhol because, it argues, the price is too high.

The price is too high, Dabhol responds, because the MSEB doesn't buy enough power.

You didn't produce enough power when we wanted it, counters the MSEB, so we are slapping a big fine on you. Deduct what we owe from the fine.

Let's see what an international panel of arbitration has to say about this, Enron says.

Not until after the matter has been decided by our new regulatory commission which we just set up, the MSEB replies.

Just give me my money back and let me go home, Enron finally says.

Yesterday, Dabhol said the MSEB was being "illogical" in claiming the company's high power prices caused heavy losses to the state-owned utility. The company agreed that its prices might be higher than the MSEB liked, but it said that was MSEB's fault.

MSEB Chairman Vinay Bansal said Dabhol's power made the utility lose 13.4 billion rupees last year, which is almost $300 million in U.S. money. He claimed Dabhol's price of 8 rupees per kilowatt-hour was more than three times the cost of power from other sources.

Dabhol said its average tariff between May 1999 and May 2001 was 5.64 rupees while the "plant load factor" was 52 percent. Had the PLF been 90 percent, DPC's tariff would then have been only 4.13 rupees, the company said. The MSEB is Dabhol's only customer, despite a power shortage elsewhere in Maharashtra and surrounding Indian states.

"The MSEB chairman is also a member of DPC's board," Dabhol noted, "and is very well aware of DPC's tariff,"

In a statement, Enron said that is was "clear the MSEB is well in a position to draw power at 90 percent PLF...thus resulting in a most competitive current tariff of 4.40 rupees per kilowatt-hour."

That wouldn't have made a difference, Bansai said. "(The loss) would be marginally lower, but not very much. You see we bought at eight rupees a unit. Supposing even if it was five rupees a unit, instead of 13-billion loss, it would be a 10 billion," he said.

What neither side said -- at least yesterday -- was that about one-third of the power purchased by the MSEB simply disappears, without anyone paying for it, and another third is sold at artificially low rates in order to subsidize agricultural customers.

Copyright © 2020 LCG Consulting. All rights reserved. Terms and Copyright
Generator X
Generation and Transmission Planning and Optimization
UPLAN-NPM
The Locational Marginal Price Model (LMP) Network Power Model
UPLAN-ACE
Day Ahead and Real Time Market Simulation
PowerMax
Day-ahead and real-time portfolio revenue optimization
UPLAN-G
The Gas Procurement and Competitive Analysis System
PLATO
Database of Plants, Loads, Assets, Transmission...
MarketVision
Daily LMP Forecast for ERCOT
MarketWatch
Annual summary of prices, congestion and important events in ERCOT
CAISO CRR Auctions
Monthly Price and Congestion Forecasting Service