Trump-fake-news-yellow-bg-950x108px.jpg

Krishnapatnam Ultra Mega Power Project

From SourceWatch
Jump to: navigation, search

This article is part of the Coal Issues portal on SourceWatch, a project of CoalSwarm and the Center for Media and Democracy. See here for help on adding material to CoalSwarm.

This article is part of the CoalSwarm coverage of India and coal.
Sub-articles:

Krishnapatnam Ultra Mega Power Project is a proposed coal plant in Andhra Pradesh, India.

Location

The map below shows the location of the project, according to Wikimapia.[1]

Loading map...

Background

Krishnapatnam Ultra Mega Power Project is one of nine Ultra Mega Power Projects proposed by the government of India as part of a strategy to add an additional 100,000 megawatts of generation capacity by 2017. The 4,000 megawatt project is in the state of Andhra Pradesh and is being developed by Reliance Power.[2][3]

The Krishnapatnam project is one of the four Ultra Mega Power Projects in India awarded as of July 2011. Of these, three are being executed by Reliance Power.[4]

In June 2011, Reliance Power stopped work at its Krishnapatnam Ultra Mega Power Project, citing a hike in the cost of Indonesian coal that the project is to run on. Reliance Power claims that the new Indonesian Coal Price Regulation will push up the coal cost, and the company will not be able to meet the conditions set by the lenders, affecting its ability to meet the project cash flow requirements. The stoppage comes even as work on the associated infrastructure for the project is ongoing, including Power Grid Corporation's transmission link (Krishnapatnam-Nellore line for start-up power) that is scheduled to come up by November 2012.[4]

In August 2014, Reliance Power approached the Andhra Pradesh government with a proposal to revive the project. Under the proposal, APSPDCL would withdraw its termination notices and Reliance Power would drop the cases it had filed against APSPDCL in the Delhi High Court.[5]

As of January 2015 the legal status of the project is being determined.[6]

In January 2016 Reliance Power said the Krishnapatnam UMPP could not be taken forward due to escalated coal cost from Indonesia. The AP energy minister said if the central government allots domestic coal, then the project can become viable. Reliance also pulled out of the Tilaiya Ultra Mega Power Project in April 2015, saying it could not get the needed land.[7]

Project Details

Sponsor: Coastal Andhra Power
Parent company: Reliance Power
Location: Krishnapatnam village, Nellore district, Andhra Pradesh
Coordinates: 14.2520611, 80.1207483 (exact)
Status: Shelved
Nameplate capacity: 4,000 MW
Type: Ultra Mega Power Project
Projected in service:
Coal Type:
Coal Source: Indonesia
Estimated annual CO2: 7,806,085 tons[8]
Source of financing: The Krishnapatnam power project achieved financial closure in July 2009. The lenders for the project are a consortium of 12 banks lead by IDBI Bank. The lending was done on a project finance basis for an estimated project cost of around Rs. 17,450 crs (US$ 4 billion) with a debt-equity ratio of 75:25.[9]
Permits and applications: Environmental clearance, India MoEF, Oct 23, 2007

Carbon credits

As of July 2011, five "high-efficiency" coal power plants, including Krishnapatnam, were registered under the UN's Clean Development Mechanism -- four in India and one in China -- meaning they are all eligible to earn certified emissions reductions (CERs) that they can sell. The five registered power projects involve two from Reliance Power totalling 8,000 MW, two projects totalling 2,640 MW from Adani Power and a 2,000 MW ultra-supercritical plant by Shenergy in China.

According to U.N. data, the five projects are eligible to receive a total of 68.2 million CERs over a 10-year crediting period. That is worth 661 million euros ($919 million) based on current prices of CERs traded on the European Climate Exchange of 9.70 euros.

Reliance's Krishnapatnam Ultra Mega Power Project will receive 12.3 million CERs and the firm's other 4,000 MW plant, Sasan Ultra Mega Power Project in Madhya Pradesh, will receive 22.5 million. Total carbon dioxide emissions from the five projects, based on data from project design documents, over the 10-year crediting period is 673 million tonnes.[10]

Articles and resources

References

  1. "Krishnapatnam Ultra Mega Power Project," wikimapia, accessed March 2014.
  2. Rebecca Petchey, Michael Lampard and Alan Copeland, Thermal coal", Australian commodities, ABARE, Volume 17 number 1, March quarter 2010, page 155.
  3. Amiti Sen & Subhash Narayan, "States make case for second UMPP with advanced land clearances", Economic Times, (India), March 20, 2010.
  4. 4.0 4.1 Anil Sasi, "RPower halts work on mega AP project citing costlier imported coal" The Hindu Business Line, July , 2012.
  5. CR Sukumar, "Reliance power approaches Andhra Pradesh government to revive Krishnapatnam UMPP," The Economic Times, August 27, 2014
  6. "Is the govt's mega-power plant dream over?" Business Standard, Jan 13, 2015
  7. "Reliance Power seeks to exit Krishnapatnam power project," Livemint, Jan 26, 2016
  8. For estimation method, see Estimating carbon dioxide emissions for proposed coal plants in India
  9. "Krishnapatnam Ultra Mega Power Project," Reliance Power website, accessed February 2014
  10. David Fogarty, "Carbon credits for India coal power plant stoke criticism" Reuters Africa, July 12, 2011.

Related SourceWatch articles


External resources

External articles

Loading map...