What Am I

In continuation with my previous blog on the catch-22 situation of renewable energy companies in Andhra Pradesh, India, a probable radical solution as detailed below, may be explored by the Government of Andhra Pradesh. Renewable plants boast about their ability to serve the green agenda but are still dependent on subsidies and one of the subsidy being offered to them is the "must run" category. What if this "Must run" category is revoked. None of the plants would fall in the Merit Order Despatchability Curve and scheduling them will only be subject to the discretions of the DISCOM. While this would definitely send a wrong signal to the investors, but DISCOMs are unable to make good of any pending payments, and hence they might as well explore a legal way to get around.  And what happens when the MUST RUN category is revoked. There is no fixed/variable price component difference in Solar/Wind. 95% is a fixed cost component. Hence, technically the...

When Saudi Arabia decided to not decrease the production levels, the bears were really happy. Things became bearish. You must have understood whom am I referring to. Of course, the bears in stock market! If that is what you thought, sorry brother, the world is much bigger than just the bears in stock market. I am referring to the actual bears, the wildly beasty bears. Why would bears have fun when Saudi doesn't reduce its production. And, I meant not even the normal bears... the bigger and beastier Polar bears!! Bears were really happy that the oil prices reduced, thereby the production in Arctic circles would have not happened at the same pace. Hence the ecological balance would not have been disturbed beyond the already created ruffles. While the bears slept through the winters happily and were ready to come out and enjoy the spring, so did the oil prices. And suddenly the biggest predator of all time became active in the polar regions. ...

All of us had a merry time. Enjoyed what all we got, as if there is no need to survive till tomorrow. And, now, when things are evolving and indicating that surviving tomorrow would in fact be a big thing, we are shrugging our shoulders and saying that it ain't us who has caused it. I am speaking about the Emissions and the recent senate vote within US, which rejected the resolution that humans are causing global warming (51-49 against the resolution!!). Is it funny or irony that we feel that the climate change is actually happening, but yet are not willing to accept it.  It is like the girl, who got gang raped, and yet in the court all the accused are vindicated. It is because the semen present inside the girl's vagina may be of the people who gang raped her, but the guilty cannot be charged for the presence of the semen. May be the girl herself willingly did it. We want all, but we don't want to own any. Even I am like this. I wonder, what proof is...

Continuing the discussion from the previous blog ( Is crude price decline good or bad? – Energy Economics 102!!  ), now that the decline in crude is seeing no decline, what next?? a) Acquisitions have become active... First the deal between Baker Hughes and Halliburton. Now the talks between Shell and BP. Wonder why Exxon is lying idle!! This was bound to happen, as companies continue to fight for survival due to working capital issues and also to increase their revenue. This is the right time for big fish eating the small fish. b) Social Planning: Many countries, especially the Opec ones derive much of their revenue from crude oil exports. The decline in crude prices have reduced their GDP by multiple basis points. Below is a chart that explains some of the impacts: Source: World Bank, Oil Rents (% of GDP) As you can see, the crude prices have reduced some of the least developed nations into a state of disarray. Countries like Saudi Arabia where oil revenue ...

An engineering marvel is created. Well thought about, well planned, well designed, well executed...well??? It cost $24 bn to build the World’s largest Hydro power project - The Three Gorges Dam by China. It was completed well before the schedule. It provides 18400 MW of electricity which is unfathomable by many other Hydro power projects. Its back waters created a reservoir of water which is as big as UK in length. Now, the flip side..It displaced half a million population and thounsads of towns. The weight of the water stored in the reservoir is only adding to the woes of the land slides, tremors in and around the area. The river is getting more and more polluted since the 1.3 mile long concrete barrier diverted the migration of fish which otherwise would have preserved the sanctity of water in the river. Topping the charts are the facts that Central China, where the project is located is reeling under 50 year drought and that two of Southern China’s largest lakes have almost dried...

In this particular blog, I do not know what stand should I take. The industry ( first cat ) or the normal junta in the society ( second cat ). While at one hand there is salwa judem which more or less is intended at the demise of the tribal culture and their rights, on the other hand we have industrialists who are forced to shell out so much money and are still not guaranteed of the benefits that they can reap. Let me start on a pro-capitalistic tone. Power plant developers have seen their worst nightmares come true in the last year. While they are banging their heads about how to overcome the fuel crisis to run the power plants, Govt. is running amuck with the licenses given to them. Billions of dollars worth of investments are lying idle or the progress is halted becuase Govt. has taken back the licenses that are earier given to the developers. On top of that Govt. wants 10% of the energy generated from power plants at free of cost to Govt. What nonsense!! If this is not sufficie...