Saturday, July 26, 2008

Power shortage in Karnataka shoots up demand for diesel

Panic buying and hoarding of diesel has hit Karnataka in the wake of massive power shortage following monsoon failure, oil companies and dealers say.

Industries, commercial establishments and even some residential complexes are forced to use the diesel-run generators for uninterrupted power supply as India's IT hub and other parts of the state remain without power for hours together.

"Demand for diesel has gone up by nearly 40 percent in Bangalore alone since July 20. The daily supply to Bangalore has gone up from around 1,800 kilolitres to about 2,500 kilolitres," a senior Indian Oil Corporation official, declining to be identified, told IANS Wednesday.

With the state government indicating Wednesday that there would be no power supply for up to six hours in Bangalore and other major towns and up to 10 hours in rural areas, the demand for diesel would only go up, oil companies and dealers fear.

Many dealers in Bangalore and other parts of Karnataka have begun restricting diesel sale to 10 litres at a time.

Since July 20, there have been long queues at several petrol bunks in Bangalore.

"People are stocking up to run the generators as they fear massive disruption in power supply in the coming days," the official said.

The official said people need not go in for panic buying as that only creates artificial shortage. The oil companies have adequate stocks to meet the normal demand and hence there is no fear of short supply, he said.

According to state Energy Minister K.S. Eshwarappa, Karnataka needs 128 million units of power a day whereas only 100 million units are available, 65 million units generated within the state and 35 million units received from the central government power units.

The shortage has meant long hours of unscheduled power cuts across the state. Many areas in Bangalore, including the central business district, remain without electricity for up to four hours a day.

Eshwarappa announced Wednesday that daily supply will be restricted to 100 million units, which means no power for up to six hours in Bangalore and other major towns and up to 10 hours in rural areas.

Instead of the random power cuts as of now, there will be scheduled disruption from Aug 1 with the government notifying which areas will be without electricity for how many hours a day.

The time table is expected to be released Friday.

The government is hoping monsoon will revive and fill the reservoirs as Karnataka is heavily dependent on hydel power.

"Monsoon failure has made the power situation precarious. Around 60 percent of power generated in Karnataka is hydel-based. We will review the situation every week, Eshwarappa said.

MAN Diesel wins Alice power station contract

A Sydney-based company has been awarded a $60 million contract to design and build a new power station south of Alice Springs.

The Power and Water Corporation says MAN Diesel Australia will begin work on the Owen Springs Power Station in the next few weeks.

Stage one is expected to be completed by April next year.

The Corporation's John Linton says separate tender submissions to relocate the two noisy turbine generators from the Sadadeen complex to Owen Springs are now being assessed.

He says the Taurus generator is expected to be moved later this year and the Titan in 2009.

Bus, Library, Platform, Ski Resort

The Beijing bus happens to be an electric hybrid vehicle. A hybrid vehicle uses an engine to power an electric generator. The electricity from the generator powers a motor that turns the wheels. And the wheels on the bus go ‘round and ‘round.

But even better, this bus puts out ultra-low emissions. That’s because reducing engine emissions is critical in China, where pollution is so bad. The electricity that powers the bus comes from an on-board device called a “microturbine.” In the case of the Beijing bus, this is a small engine that burns compressed natural gas. The gas spins a turbine and generates electricity. And it moves that bus.

OK, but how is the Chinese bus similar to the Reagan Library? Well, the Reagan Library also gets its electricity from microturbines. There are 16 microturbines at the Reagan Library, delivering over 95 percent of the power that the large building uses. (Large? Hey, the Reagan Library houses an entire Boeing 707, the former Air Force One, in a gigantic hangar section.)

The microturbines at the Reagan Library burn natural gas. The gas comes from the regional pipeline system. So yes, the library buys natural gas. But it hardly ever has an electricity bill. Even better, the heat from the turbines actually gets recycled to run the library cooling system.

Yes, you read that right. At the Reagan Library, the heat runs the cooling system. I know it seems strange, kind of like Reaganomics did at first. But hey, it works. And the library has much lower electric costs than if it bought power from the Southern California grid. The microturbines eliminate all but a small electrical connection to the larger grid. The process is highly efficient.

And how about that ski resort near St. Petersburg? It too is off the electric grid. But without a reliable source of power, the Russian resort is out of business. So the resort uses a series of microturbines that burn natural gas (and it being Russia, sometimes kerosene). These microturbines are the sole source of power and heat for a luxury hotel and other facilities like chairlifts and water pumps.

Out in the Gulf of Alaska and the North Sea, many offshore platforms now obtain power from rugged microturbines. These platforms are no ski resorts or stately libraries. These platforms are serious industrial facilities, exposed to salt water and the heaviest storms that Mother Nature can blow at them. And there are earthquakes in Alaska.

Traditionally, almost all offshore platforms have used diesel generators to crank out power to run the on-board systems. Things like oil pumps, lighting and signaling devices, and crew quarters. This requires that the platform operators send out diesel fuel by barge to the platforms. Then they have to pump the fuel into holding tanks.

Karnataka on a power trip

ACCORDING TO the ‘Times of India’ (dated July 24), the newspaper that I take, power blackouts in the state of Karnataka are to get longer. Bangaloreans ‘who are already facing four-hour power cuts will have to brace for a 5-7 hour load shedding per day. It is worse in rural areas: this would mean 12-18 hour blackouts for them’. This is an understatement. Being a resident of Bangalore city, I can say with confidence that the truth is much worse. Every hour of power supply is followed by two hours of power outage, in the aggregate. At the most, power supply is available for eight hours out of 24 hours! Even after 9pm, power outage is enforced.

The state’s power minister said in the assembly on Wednesday (July 23) that the government had decided to shed 20 per cent load in July and 25 per cent load in August. This explains why I called the newspaper report an understatement. The minister implies that 20 per cent of load-shedding is equivalent to making power available for eight hours; thus, 25 per cent of load-shedding implies that power will be made available for six hours. On its part, the electricity supply company, viz, Bescom, admitted that it would roughly translate into five to seven power cuts per day.

The government though is yet to announce the load-shedding calendar. But people already know that what the calendar says will be an understatement. Commenting on the energy situation in the state, Principal Secretary (Energy) Jairaj told an all-party meeting that the demand had risen to 116 million units but the state could mobilise 100 million units at the maximum. The projected average deficit from October 2008 to May 2009 was 700 MW, assuming a 5 per cent growth in energy consumption.

The meeting, convened to find a solution to the power and fertiliser crises and Hogenakkal remained inconclusive (as usual). It is understandable given the fact that there can be no solution to it. As far as power is concerned, presently the government has to buy it by paying cash down. But it has no money, given its profligate spending; nor will it have money in future (vide, ‘Karnataka budget: Core sector ignored’ and ‘Karnataka Budge today’). After the meeting, chief minister BS Yeddyurappa (BSY) said he would convene another meeting with opposition leaders on the issue. He said that nothing had been decided as yet. After the second meeting, a statement would be made in the assembly.

Well, this is not the first time the state is facing power crisis. Such crises have arisen before. But the government is yet to learn from past mistakes. Reduced availability of hydel power and hampered coal supplies due to poor transportation linkages are the major reasons for this state of affairs. But failure of monsoons is not something unheard of in the Indian context. With regard to the monsoons, the government has to ‘expect the unexpected’. Since trade and industry in particular has come to depend upon generators given the dismal power supply, power outage has triggered diesel shortage too. It is time the government gave up profligate spending and wisely invested in power infrastructure. Hopefully, it will not resort to provision of colour TVs to the ‘poorest of the poor’. The latter cannot watch it when most of the time there is power outage.

Wednesday, July 23, 2008

Zimbabwe: Econet Acquires 98 Generators

Each time there is a major power failure in an area, the company is forced to shut down the base station, effectively cutting off thousands of people from service.

The installation of more generators will go a long way in improving the quality of service."

Econet yesterday also assured its customers that measures have since been taken to restore normal supply of recharge cards to the market without delay.

Recharge cards for Econet pre-paid subscriber have been in short supply over the past few days following the increase in tariffs on July 10.

As these measures take effect, the company said customers should expect a dramatic improvement in the availability of airtime vouchers over the next few days.

"We encourage our customers to make more use of these electronic airtime purchase systems, which are more reliable and efficient than buying from street vendors," said the company.

It said the shortages had been due to a range of supplier bottlenecks, which had now been attended to.

Econet has widened subscribers' access to airtime recharge through an extensive electronic value distribution network.

These are a chain of retail outlets nationwide from which customers can easily access airtime electronically via point of sale terminals.

Meanwhile, Mr Mboweni also revealed that the company's international contractors who had suspended work during the election period had all returned, and were now busy with work to expand the network capacity from 800 000 to 1,2 million subscribers.

Mr Mboweni said due to the delays, work that had been originally set for completion by the end of August would now be completed by end of November.

Diesel is killing Nigeria —Oscar Ibru

THE vice chairman, Ibru Organisation, Oscar Ibru, has called on responsible institutions and individuals to commit their resources to better their immediate environment. Two of recent examples are: Mobil Oil that tarred and electrified former Malu Road, Apapa, Lagos a few years ago and Zenith Bank that last year rehabilitated the dilapidated Ajose Adeogun Street, Victoria Island, Lagos. Ibru has just joined them.

Those who pass through the Oshodi-Apapa expressway from Mile 2 to Wharf, since the oil tank farm of Ibru sprang up in the Ibru Port Complex know that the service lane has for sometime now become a “no go area.”

Oil tankers occupy the entire stretch of the service lane from the DTV/Capitol Oil access road end of Mile 2 to the U-turn at Coconut Bus Stop on the Tin Can Island Port complex end of the 10-lane highway, impeding traffic flow on all sides of the highway. But the worst impact is the total deterioration of the service lane on the tank farm side.

It is a matter of divine providence that a fuel laden tanker had not tipped over, spilling its deadly content on the road to cause monumental havoc.

It was to avert such a catastrophic possibility and reduce the stress that his workers and tenants go through daily when going to and returning from their offices that Ibru undertook to rehabilitate the service lane. The stretch of road is about 1,037 metres long. The tarring and clearing of the gutters, overflowing with silt and solid particles, is costing him in excess of N40 million.

His company, Ibru Organisation, brought the tank farm, reputed to be the largest private enterprise of that nature in Africa, to the area. Today, there are over 12 stakeholders of various sizes stocking oil products in the farm. They include major and small oil dealers in the country. The lure is that the complex has a standard port, built in the 70s by Oscar’s father and chairman of Ibru Organisation, Olorogun Michael C.O. Ibru. It is believed to be the first privately owned port complex in the country.

Ibru recognises that the tank farm is the hub of the fuel business of the nation and the access road to the farm should therefore be in top shape for the lumbering tankers to safely move through. “It bothers me to no end that the roads are continuously blocked,” he said in his office at the Port Complex recently. He also dismissed insinuations from some quarters that the tank farm, in which volumes of highly volatile products are stored, is a threat to the neighbourhood. In the last five years or so, more tank farms have sprung up along the same part of the road. There is one beside the Tin Can Island bus stop, along Olorogun Michael Ibru Boulevard (formerly Creek Road).

To such cries of fear, Ibru said that the Ibru Port Complex was built at the present site before Olodi-Apapa expanded to meet it. He explained that when his father acquired the area, it was all swamp. There was no habitation around, even the expressway had not been constructed.

“The Ibru Port Complex paved the way for the development of the area. Those harbouring fear of fire are simply unaware of what the stakeholders have in place. I can assure you that there will be no fire here, we have the equipment, the manpower and the wherewithal to fight any emergency and with the professionalism of our workers and those of the various stakeholders, I absolutely do not foresee any disaster whatsoever happening. Even the Department of Petroleum Resources (DPR) is indeed satisfied with what we have on ground to tackle emergencies,” he said.

Energy crisis: MMA seeks N8bn to acquire generator

Though sources at the airport declined to disclose the capacity of the existing generator, it was, however, learnt it supplied power to both the local and international wings of the airport.

The management of the facility stated that it was ready to revisit the suspended issue of an IPP for all the 21 airports in the country.

When he was contacted by our correspondent on Thursday, the General Manager (Public Affairs) of FAAN, Mr. Akin Olukunle, said that the moves were aimed at finding a permanent solution to the perennial problem of power outage at the airports.

On July 1, a massive power outage at the MMIA occurred when the Power Holding Company of Nigeria cut off its supply.

The PHCN action occurred at the same time when the airport’s generators malfunctioned.

This affected operations, incapacitating the radar and air traffic control and forcing Lagos-bound aircraft to be diverted to Port Harcourt.

The outage also affected the airport’s cooling system, causing the collapse of the air-conditioning system at the arrival and departure halls, such that passengers and other users of the airport had to endure choking heat.

”We cannot afford to be at the mercy of the PHCN all the time,” Olukunle said, adding though that the FAAN management had held talks with the PHCN, which had restored power to FAAN.

Olukunle said, ”Irrespective of that, we are getting new generators. We are going through all the necessary process and we have the support of the Ministry of Transport and the Federal Executive Council. I can assure you that within the present quarter, we will be coming up with something concrete.”

Olukunle said he could not come up immediately with the financial implication of the new generator, but a source close to the technical unit of FAAN said a generator that would replace the present 30-year-old one that serves both the local and international airport, as well as the power requirement of all the organisations that operate within the airport, would cost about N8bn and would have to be manufactured to specification.

“It is not something we can order today and expect it to arrive the next day,” the source said.

Meanwhile, Olukunle said Aisuebeogun, had visited China about two months back, where he held talks with some firms which, he said, had indicated interest in going into partnership with FAAN on its IPP.

”We are still holding talks with them and looking for other investors because it is not just MMIA that we are talking about, but the 21 airports in the country,” Olukunle said.

FAAN‘s recent interest in an IPP is not the first time that the organisation will be making such moves. Early last year, the organisation‘s former MD, Alhaji Muhammad Yusufu, had made the same move and given the same reasons.

Then, Yusufu had noted that “it would be more cost effective for FAAN to build an IPP than to continue to run the airport on generators in the face of the rising cost of diesel.”

Yusufu had lamented that incessant power outage at the airport had destroyed some very sensitive navigational equipment, vital to safe flight operations.

Tuesday, July 22, 2008

Diesel Generator Compressor Combines Two Products Into One, Space-Saving Unit

Service vehicles and race car trailer owners who want to conserve valuable space have to look no further than Next Generation Power. Their latest product combines a powerful generator and heavy-duty compressor into one, compact unit. The sleek Generator Compressor measures just 42" L x 26" D x 30" H and weighs only 375 lbs.


Now diesel-powered vehicles no longer need to have a separate fuel supply for gasoline compressors and generators. Able to run on the same fuel system, the two-in-one, diesel-powered Generator Compressor produces 20 cfm at 150 psi and 5 kW of electrical power. Operating at a very low 1,000 rpm for longer service life, the powder-coated, belt-driven Schulz air compressor has all CNC-machined parts.


This diesel-powered unit offers a longer life, lower maintenance and better fuel efficiency than gasoline. Tried and trued, the efficient Next Generation Power gen-set features a durable, 2-cylinder Kubota Z482 engine. Water-cooled, it runs at mid-speed, peak torque at a comfortable 2,800 rpm. A vortex combustion system creates greater energy output with less fuel consumption and cleaner burning exhaust.

Diesel shortage hits Nagpur

In what is being termed as a fallout of rising crude prices, the city is facing an acute shortage of diesel.

Except a handful, all major filling stations within city limits ran out of diesel on Sunday. Customers were being directed to outlets outside city limits, but there is no guarantee one would find diesel there, said pump owners.

They said that most diesel outlets ran dry on Sunday after three or four days of low stocks, with quite a few having run out of diesel a couple of days ago.

Petroleum dealers said that with almost every car brand having a diesel version, several four-wheeler owners were finding it difficult to refill their tanks as they were turned back at almost all local pumps. With load-shedding also going up by another hour from Saturday, those running diesel generators too are finding it hard to find enough diesel to run their sets, say the dealers.

However, the exact reason for this sudden shortage is unclear. Retail outlet owners say that the oil companies have fixed a monthly quota of fuel since the last month for every petrol pump.

"This is the reason supplies have shrivelled substantially," they said. The quota has been fixed according to the monthly average of diesel sold at the particular pump in the last one year, said dealers.

Letter: Nuclear power for Cayman

At the moment, Cayman, other islands, and remote areas that are dependent on diesel generation are being strangled by the rising cost of oil. All the signs point to a continuing and deepening world supply-demand crunch.

We all need a viable alternative to burning oil for power generation.

Finally, after many years of sitting on modular nuclear reactor designs for years, the world is starting to move toward building and marketing some of them.

A company called Hyperion Power Generation was formed recently at the Los Alamos nuclear laboratory. It is already funded and expects to start delivery of units beginning in 2012.

The units are about the size of a large bathtub and can generate 70 megawatts (thermal) or 25 megawatts (electrical) for 7 to 10 years, and cost $25 to $30 million. They are self regulated, are clean burning, have no moving parts, and the amount of waste after 7 years of operation can fit in a softball.

The self-regulation is provided by the laws of physics operating in the core, not by control rods or any other kind of neutron absorber. And, rest assured, the laws of physics never change.

The company is taking orders now, for delivery in 2013. With our electrical load now nearing 100 megawatts, two or three of these units could supply CUC’s base load.

CUC’s existing diesel generators would only have to run to supply the peak load.

Twenty five megawatts for 7 years is 1,533 million kilowatt-hours. A gallon of oil contains 45 kilowatt-hours (thermal) or about 16 kilowatt-hours when burned in a 35% efficient diesel generator.

If $30 million can buy 1,533 million kilowatt-hours, the cost is 1.9 cents per kilowatt-hour, and this is worst case. If the best case is assumed, the cost drops to about 1 cent per kilowatt-hour.

Of course, these costs do not include the capital cost of the steam generator and turbine-generator. But once installed, the cost of these is only to service the debt and some very small cost per kilowatt-hour for maintenance.

Given these numbers and the projections for oil prices, it is not too soon for CUC to negotiate a place in line for some of these units.

Balloon festival to go on despite rising fuel costs

Despite rising fuel prices, the show will go on next month at the Metro NY Balloon & Music Festival at Broohaven Calabro Airport in Shirley.

Newton Shows, an East Northport company, will provide the amusement rides, all of which are powered by diesel fuel. A year ago, Mike Newton, who co-owns the company, said he paid close to $3 a gallon for diesel. This year, local prices have climbed to more than $5 a gallon.

"It did throw us off, but the show must go," Newton said. "You almost can't even look at it. You hope that you have a good season and that revenues keep up with expenses."

Last year more than 120,000 people attended the show, which this year runs Aug. 8-10. Besides amusement rides, the festival - which real estate company Re/Max of New York Inc. is producing - features hot air balloons, monster-truck shows and live entertainment.
Newton Shows provides the amusements for the midway, which will feature more than 30 rides and games. Three generators will provide the juice for that entertainment, which includes Pharaoh's Fury, a giant swinging boat, and Super Shot Drop Tower, a ride with a 90-foot descent, Newton said. Each generator uses about 18 to 22 gallons of diesel an hour.

Because of the spike in fuel prices, Newton raised the pay-one-price ticket to $30, from $25 last year. (The festival's general admission price remains at $20 prepurchase and $25 at the gate.)

Newton said he may try to conserve fuel by not running all of the carnival lights during the day. Other than that he is hoping a bigger turnout will help offset his higher fuel bills.

"You just try to work with a great sponsor like the Balloon Fest and our other sponsors to draw people to keep revenues healthy enough to overcome the additional expense," he said.

And he is expecting a higher turnout because of - guess what? - higher fuel prices.

"We're expecting more people because they can stay close to home and enjoy a fully loaded, family friendly and affordable event," Newton said.