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SEC tenders T&D work                                                                                [1 Nov., 2001]

Saudi Electricity Company (SEC) has issued several tenders for upgradation of its transmission and distribution (T&D) facilities in the Eastern and Western provinces. The two tenders in the northwest involve work in the Tabuk area. Bids have been invited for the supply and installation of a 380 km, 132 kV overhead transmission line to connect Tabuk, Taima and Al-Wajh, all in the Tabuk region, with Al-Oula, near Medina. The bid deadline is December 2, 2001. A second tender for a 132 kV substation in Tabuk has a bid deadline of December 1, 2001. The value of the two contracts is estimated at $67 million. Two tenders have also been issued for transmission works in the Eastern province. The first is for the reinforcement of two 69 kV substations in Al-Khobar. The bid deadline is December 29, 2001 and the value of the contract is estimated at $13 million. The second tender is for the supply and installation of 69 kV cabling to connect Al-Manakh with Qatif, and Thuqbah BSP with Al-Jazeerah.

Aneel has given green signal to buy control of two local distributors

Brazil's National Electric Energy Agency (Aneel) has given Electridade de Portugal (EdP) the green signal to buy control of two local power distributors for $19.2 million. The deal, which was signed in August 2001, gives EdP operating control of Espirito Santo Centrais Electricas (Escelsa) and the Empresa Energetica do Mato Grosso do Sul (Enersul) for 24 years in exchange for yearly payments of $800,000 units 2025.

[Source: Power Line; October 2001]

EdF has acquired a 45% stake in the Zielona Gora

A consortium led by Electricited de France (EdF) has acquired a 45  per cent stake in the Zielona Gora thermal station in western Poland for 45 million zlotys (Euro 12 million).  Kogeneracja SA, which is controlled by EdF; has acquired 33.1 per cent stake in facility, and the French Dalkia Group (Vivendi), 11.9 per cent. The buyers have pledged to invest a further $120 million (Euro 132.25 million) in the construction of a gas-fired plant at the Zielona Gora facility, which should be completed by 2004.

[Source: Power Line; October 2001]

State Power Corporation, China is planning to sell 49% stake to a foreign company

China's State Power Corporation is planning to sell 49 per cent stake in China Power International Holding Limited (CPI) to a foreign company. If approved by the government, this will be the first time that State Power will sell its assets to foreign investors. CPI has a total power generating capacity of 2,500 MW.

[Source: Power Line; October 2001]

The Beigian Tractebel Group and MCL have acquired an 80% stake in the hydroelectric power station

The Beigian Tractebel Group (energy division of the Suez Group) and its Dutch partner MCL, have acquired an 80 per cent stake in the 150 MW Houay Ho hydroelectric power station in Laos for about $140 million. The purchase price covers 80 per cent of the total capital and 100 per cent of debt. The stake was previously controlled by Daewoo Engineering and Construction (South Korea) and Loxley (Thailand). The remaining 20 per cent equity in the project is controlled by the Laos Electricity Company.                            

[Source: Power Line; October 2001]

ABB wins Laos power transmission deal                                               [24 Oct., 2001]

ABB has announced that it has won a US $17 million contract to design and build a 340km power transmission line, complete with a 282km power distribution network, as part of an ongoing initiative to upgrade Laos' rural electrical infrastructure.

ABB says the order was placed by Electricite du Laos (EDL), the state-owned utility, and is set for completion within two years. The project is financed by the Asian Development Bank.

Richard Siudek, Executive Vice President and head of ABB's utilities division said: "This project is an excellent example of how ABB can help a national power utility plan to implement a sustainable electrification program.

"Accelerated completion of the network will enable EDL to focus its resources on delivering electricity to rural areas where it is greatly needed for economic growth and standard of living improvements."

underdeveloped rural infrastructure in Laos has been a major constraint to rural economic growth and poverty alleviation. According to Siudek, ABB will use its expertise in rural electrification - from work in parts of Africa, South America and other parts of Southeast Asia - to shorten the construction schedule for expanding the power grid in the northern Laos provinces of Luang Prabang, Xayaburi, Vientiane, Xaisomboun and Xieng-Khonuang.

The project will increase the number of electrified villages in Laos by about three per cent. A team of ABB engineers from Spain and Germany will carry out the work.

[Source: Asian Power, Sept. 2001]

Kazakhstan awarded loan                                                                [24 Oct., 2001]             

The Asian Development Bank (ADB) has approved a US$150,000 technical assistance grant to Kazakhstan to prepare an energy strategy that will focus on increasing investment and expanding power supply to poor and remote areas.

The ADB said the study will produce a policy framework to improve reliability and efficiency, determine priorities for rehabilitation and maintenance, and encourage the development of renewable energy resources in remote areas not currently served by the national power grid. The assistance will also formulate an action program to develop further policy and institutional reforms, to improve governance and to enhance private sector participation.

The ADB has also agreed to administer a $95,000 grant from the Government of Finland to support the study.

Kazakhstan is rich in natural resources, but its power sector needs considerable rehabilitation and upgrading for the country to improve the efficiency of energy production and use.

The total cost of the study is $63,000, of which the ADB will finance 41 per cent, Finland 26 per cent and the Kazakhstan Government the balance.

[Source: Asian Power, Sept. 2001]

PEA to improve efficiency                                    [24 Oct., 2001]  

Thailand's Provincial Electricity Authority (PEA) is to improve the efficiency of its electricity distribution to its up-country customers with the installation of a new Supervisory Control and Data Acquisition/Distribution Management Project (SCADA/DMP) system.

Scheduled to become operational in 2003-04, it is being installed by Canada's SNC-Lavalin International Inc. Phase 1 of the new PEA system will cover five areas of Thailand's more industrialized provinces.

Phase 1 SCADA/DMP implementation will decentralise provincial electricity management to five Area Distribution & Dispatching Centres (ADDCs). A System Management Centre (SMC), to be installed at PEA's headquarters in Bangkok, will monitor overall operations, including wholesale purchases from the Electricity Generating Authority of Thailand (EGAT).

SNC-Lavalin's Power Development and Energy Control Systems divisions are to design, install and commission computer systems, remote terminal units, communications equipment, buildings and associated facilities for the five designated PEA areas in Phase 1.

The project is being funded by a US$80 million loan from the World Bank.

[Source: Asian Power, Sept. 2001]

NRG buys Hungarian power assets                [8 Sept., 2001]

US-based, NRG Energy, Inc. has completed the acquisition of UK based, PowerGen's, wholly owned Hungarian energy assets, Csepel I and II for US$182 million.

Located on Csepel Island in Budapest, Csepel I has a capacity of 116MW, and Csepel II, 398 MW.  Csepel II reached commercial operation at the end of 2000.

Steven H. Wolf, NRG's Vice President and Managing Director of Central & Eastern Europe, said: "NRG made this investment in the Hungarian market because it is strong and its is strategically located in our Central Europe core market region."

In April, NRG announced its plan to purchase PowerGen's Hungarian assets and simultaneously acquired PowerGen's interest in two German energy businesses, MIBRAG and State Energie GmBH (SEG).

The sale of these assets is part of PowerGen's strategic refocussing on the US and UK energy markets and the sale of its international business, other than its minority stake in the holding companies for PowerGen's former interests in parts of the Asia-Pacific.

[Source: electricity international, August 2001]

Electrabel buys Tractebel's European assets                   [8 Sept., 2001]

Belgian utility, Electrabel SA, has announced it plans to buy the European electricity assets of Belgium's Tractebel SA, for about US$507 million.

Electrabel said it will acquire 100 per cent control of Tractebel units in Scandinavia, Germany and Poland.

It added that the operation fitted perfectly with the company's strategy, would considerably enhance syenrgies and significantly strengthen its market position in various sub-markets. The two companies also announced that Electrabel would buy shareholdings in a number of power plants, with a total capacity of 4,317 MW:

• A 25 per cent stake in Polianec, Poland;
• A 99.5 per cent stake in Posen, Italy;
• A 32.5 per cent stake in Generg, Portugal; and 
• A 74.8 per cent stake in Dunamenti, Hungary.

At the end of last year, Tractebel, the energy arm of France's multi-utility, Suez, said it planned to transfer the assets to Electrabel.

Tractebel, which controls just over 40 per cent of Electrabel, said at the time that Tractebel's assets in the power sector would bolster Electrabel's development in that particular market.

Together with Electrabel assets in Belgium, its shareholdings in France and its capacity in the Netherlands, Luxembourg and Germany, Electrabel owns 25,359 MW in Europe.

[Source: electricity international, August 2001]

CMS and International Power in line for Shuweihat project    [8 Sept., 2001]

A group linking CMS Energy of the US and the UK's International Power has emerged as the front runner for the mandate to develop Abu Dhabi's US$2 billion Shuweihat independent water and power project (IWPP).

Following the submission of final prices in June, the client, Abu Dhabi Water & Electricity Authority (ADWEA), ranked CMs first. Although a consortium of Belgium's Tractebel, Tokyo Electric Power Company (TEPCO) and Mitsui & Co., both of Japan, offered the same prices as CMS, the group has not been ranked. The other shortlisted developer is AES Corp. of the US.

The winner will take a minority stake in a new company, which will develop the 1,500 MW and 454 million litres per day scheme on a build-own operate (BOO) basis.

Shuweihat is the third and biggest of ADWEA's IWPP schemes. A fourth, involving the takeover and expansion of the Umm al Nar facility, is planned to be tendered later this year.

[Source: electricity international, August 2001]

Fujarah issues decree to UWEC                       [8 Sept., 2001]

The ruler of the Gulf state of Fujarah has issued a decree establishing the Union Water & Electricity Company (UWEC) to own and operate a planned power and desalination complex at Qidfa.

Qidfa, for which the US$779 million engineering, procurement and construction contract has been awarded to South Korea's Doosan Heavy Industries & Construction Co., will have an initial capacity of 620 MW and 454 million litres per day. The plant's capacity will be eventually be doubled.

Qidfa will supply 500MW to the northern emirates and the proposed UAE power grid. The other 120 MW will power the desalination units and pumping stations.

UWEC is owned by the Abu Dhabi Government and the UAE Offsets Group (UOG).

[Source: electricity international, August 2001]

Fresh bids for project sought                        [8 Sept., 2001]

The four groups that submitted bids for the civil works on Egypt's Naga Hammadi barrage project will be invited to submit fresh offers because the original bids had too many conditions attached.

The low bidder for the contract, at $168 million, is a team of Dumez-GTM, part of France's Vinci group, Bilfinger & Berger of Germany and the local Orascom Construction Industries. The group's price was 23 per cent below their nearest rival.

In the new round of bidding, the attached conditions will be withdrawn while the client amends some of the contract conditions.

Bids have meanwhile been opened for three other packages, involving equipment for the scheme's 64 MW hydropower plant. It is unlikely, however, that these contracts will be awarded before a decision is reached on the civil works.

[Source: electricity international, August 2001]

Sale of Enron wind turbine arm runs into rough weather  

US energy group Enron is meeting heavy going in its efforts to sell its wind turbine arm Enron Wind, with top industry players saying the firm is too expensive and there is no need to consolidate.

“The safe way is to grow organically in an industry expanding as fast as wind power and our strategy is to grow on our own,” said Johannes Poulsen, Chief executive at Danish Vestas Wind Systems, the world’s largest supplier of wind turbines with one third of the global market. “We have not even considered buying Enron Wind.”

Independent wind power consultancy BTM estimates the global windpower market will grow by an annual average rate of 19 per cent over the coming 10 years.

Enron Wind has unofficially been up for sale for several years and an Enron spokesman recently told newspersons he hoped a deal would be completed this year.

The world’s number four wind turbine manufacturer, Danish NEG Nicon, is not considering acquiring the US firm either.

“At present we have no acquisition plans and that included Enron Wind. We believe organic growth can bring us a long way from here,” NEG Micon Chief executive Torben Bjerre Madsen said.

Also Danish private-owned Bonus sees no need to buy growth.

The company’s market share, in terms of megawatts (MW) hasdoubled to 11.5 per cent  in 2000 from 1998 organically.

But German-Danish Nordex, which was listed on the German Neuer Markt in April, is actively seeking potential acquisition candidates and has been taking to Enron Wind but has been scared off by the price.

“You can buy technology via an acquisition or a market position which it would take you longer to obtain organically,” said Carsten Pedersen, member of Nordex AG’s management board.

“We have been in negotiations with Enron Wind, but the  company is too highly valued and the price is only getting higher,” he said.

The case for buying Enron Wind is weakened by the company’s recent performance. Its market share has halved from 13.5 per cent in 1998 to 6 per cent last year, despite the acquisition of German rival Tacke during this period.

The Financial Times  said last week that Enron’s wind turbine unit was valued at $725 million.  

[Source: Business Standard, 28 Aug. 2001]

Dutch company PSEG Poland Distribution has satisfied treasury conditions to buy Poland’s Skawina power plant. Earlier, PSEG finalized an agreement with the treasury on the number of shares to be sold. Four parties had placed bids on June 20, 2001 for at least 10 per cent of Skawina. Subsequently, on June 29, PSEG received exclusive negotiating rights for the power station, which serves the Malopolskie region of Poland.

[Source: Powerline, Aug. 2001]

Peru has sold State-owned Electroandes SA to PSEG Energy Holdings for $227.1 million. The Government Commission in charge of privatization (Copri) had set a base price of $120 million for the company. The successful bidder also had to commit to assume debt of $19.5 million and to invest $17.5 million over five years. The sale of the company is part of the Peruvian Government’s privatization process. Electroandes has about 183 MW of installed capacity. It operates four hydroelectric plants in the Andes, and has 800 km of transmission lines. Three other bidders, namely, Duke Energy Corporation, Tractebel and AES Corporation, were vying for the contract.

[Source: Powerline, Aug. 2001]

SDG&E supports CPUC timeline for Valley-Rainbow Project

The California Public Utilities Commission's (CPUC's) regulatory schedule for the $271 million Valley-Rainbow Interconnect transmission line, combined with significant customer conservation efforts, support a one-year in-service delay for the project, from 2004 to 2005. The project is required to add a new power pathway and alleviate future congestion along the existing Path 43 transmission line corridor that connects the San Diego Gas & Electric (SDG&E) system to the remainder of California's power grid.

Despite the delay, SDG&E officials remain confident that electric reliability standards will not be jeopardized. SDG&E's confidence in electric reliability is bolstered by revised electric-demand forecasts that reflect dramatic customer energy-conservation efforts and new local generation plants designed for use during peak electricity demand periods. Despite conservation efforts, the long-term statewide need for the project has not changed.

The state's command center for electric reliability, the California Independent System Operator (Ca-ISO), agrees with SDG&E that a project such as the 31-mile, 500,000-volt Valley-Rainbow Interconnect transmission line, linking SDG&E's system at Rainbow and Southern California Edison's system in Romoland, is essential for future electric reliability.

Terry Winter, president and chief executive officer of the Ca-ISO, said that, without a transmission reinforcement like Valley-Rainbow, the existing Path 43 transmission corridor linking the Southern California Edison and SDG&E systems north of the San Onofre Nuclear Generating Station, the region could experience future electricity congestion conditions similar to those in northern California that were caused by a bottleneck on Path 15 near Bakersfield.

Over the past winter, Path 15 limitations prevented available generation in the south from supplying needed resources to meet load in the north. These limitations played a prominent role in rolling blackouts in Northern California during times when generation units were sitting idle in Southern California. This highlights the need to build infrastructure to support the proposed generation in the area, Winter said. Even if only a fraction of the generation currently proposed is constructed, the state will need additional transmission capacity to move that energy to where it is most needed, Winter said.

"We look forward to presenting the case for the need for this project to the CPUC in September and supporting SDG&E's efforts to plan and implement a solution that addresses future power bottlenecks," Winter said. "There is a significant amount of power generation planned for the San Diego area, including Mexico, and a project such as the Valley-Rainbow Interconnect will allow this generation to meet the statewide energy demands."

"SDG&E and the Ca-ISO agree that this project has multiple needs for the region, and we look forward to presenting these needs before the CPUC in September," said James P. Avery, senior vice president of fuel and power operations for SDG&E. "Even if all the generation projects slated for the San Diego and Mexico regions are built, this project will be required to meet the growing statewide demands for competitively priced electricity."

In SDG&E's service territory, Calif. Governor Gray Davis' 20/20 rebate plan and other customer incentives, plus moderate summer temperatures, have resulted in customers reducing 2001 electricity demand by 12 percent, or about 500 megawatts (MW), less than the forecasts the company made last October. This led to the revised 2002 forecast that SDG&E customer demand will peak at 3,902 MW of electricity in 2002 -- 381 MW less than the previous forecast.

"These conservation efforts give us comfort that the possible CPUC delay in the in-service date will not jeopardize reliability for SDG&E customers," Avery said.

A megawatt is enough electricity to support approximately 1,000 homes.

"The proposed Valley-Rainbow Interconnect will benefit the entire Southern California region by delivering a much needed energy supply to sustain the continued growth of the region and relieve the growing congestion along the Path 43 transmission corridor," Avery said.

San Diego Gas & Electric is a regulated utility that provides service to 3 million consumers through 1.2 million electric meters and 740,000 natural gas meters in San Diego and southern Orange counties. SDG&E is a subsidiary of Sempra Energy (NYSE: SRE), a Fortune 500 energy services holding company based in San Diego.

[Source: San Diego Gas & Electric]

International Power, Ansaldo Energia sign second agreement to develop power plants in Italy

International Power announces a second agreement with Ansaldo Energia to co-develop up to 4,000 megawatts (MW) of new combined cycle gas turbine (CCGT) power plants in southern Italy. Under the agreement International Power and Ansaldo Energia will together develop five greenfield sites of 800 MW each. Of the five three are located near Naples and two in Calabria.
This agreement complements the previously reported agreement signed by the two companies on 19 March 2001 to co-develop greenfield CCGT sites in northern Italy with a total potential of 3,200 MW.
Under both agreements, the proposed project locations have several inherent advantages, including: substantial support from the local communities, good access to gas supply facilities and relatively easy access to Italy's electric grid. In addition the proposed sites are in areas with strong electric demand growth and increasingly constrained installed generating capacity.
"As we look at Italy's aging fleet of oil-fired power plants, and relatively high electric demand growth and wholesale prices, we expect our new CCGTs to create significant economic benefits throughout the country," said Peter Giller, International Power's Chief Executive Officer. "We look forward to helping Italy meet its future electricity needs," he added.

GE Power Systems completes acquisition of GE Harris Energy Control Systems

General Electric (GE) today announced the successful completion of its acquisition from Harris Corporation of Harris’ minority equity interest in GE Harris Energy Control Systems, LLC, a leading provider of innovative, real-time information technology solutions to the electric utility industry.

The completion of the acquisition of Harris' equity interest in GE Harris Energy Control Systems further strengthens GE’s investment in solutions for automation, control, and monitoring of utility T&D infrastructure. The transaction follows several investments with leading technology providers. The two most recent acquisitions were Programma Electric, AB, a provider of substation monitoring instrumentation and GE Smallworld, a provider of geo-spatial network solutions for utility as well as communication and public sectors.

These investments further enable GE to provide a comprehensive offering that improves productivity and service reliability for T&D utilities around the world. The GE Power Systems T&D automation solutions include energy transmission, distribution, and outage management systems; geospatial network and engineering software; substation automation, monitoring, and test systems; and T&D consulting and repair services.

John Rice, CEO of GE Power Systems, commented, “We are excited at the opportunities now open to us with the full acquisition of GE Harris Energy. As we integrate the strengths of GE Harris Energy, we are positioned to provide some of the most innovative software and automation solutions to the utility industry worldwide.”

“The utility industry is moving towards more real-time, comprehensive information systems for improved asset management and service reliability,” said Steve Bolze, CEO of GE Harris Energy and GM of Energy Management Services, a GE Power Systems business. “As we continue to address the needs our customers, the GE Harris talent and technologies are valuable additions to our GE offering.”

The GE Harris Energy Control Systems joint venture was formed in 1997 and was headquartered in Melbourne, FL. GE held a controlling 51 percent interest in the joint venture, and Harris held a 49 percent interest.

[Source: GE Power Systems]

Con Edison reaches record level of electricity delivery

Consolidated Edison Company of New York, Inc. (Con Edison) reached a record level of electricity delivery for a one-week period last week as 1,567,147 megawatt hours of electricity were used by its 3.1 million customers from Monday, August 6 through Sunday, August 12. This period also included the highest-ever hourly peak demand, 12,207 megawatts, reached at 3:00 p.m. on Thursday, August 9. The Con Edison system delivers energy to an estimated 8.9 million New York City and Westchester County residents.

“In the face of six straight days of temperatures over 90 degrees, which created historic demands on our resources and intense working conditions for our employees, our system performed extremely well and our employees more than met the challenge. When we asked our customers to conserve power to help us through the most difficult periods they responded and we thank them for their help,” said Kevin Burke, president of Con Edison.

Con Edison is spending $483 million this year on its electrical transmission and distribution system as part of a five-year comprehensive $2.4 billion program to enhance reliability and improve infrastructure. The distribution system includes more than 89,000 miles of underground cables, 34,000 miles of overhead lines, 250,000 manholes and service boxes, 25,000 underground transformers and 201,000 utility poles.

The company also established two new gas system records and recorded its highest summer one-day delivery for 2001. On Thursday, August 9, a new summer total gas system daily delivery record of 1,077,858 dekatherms was achieved. Also on that date, the company exceeded its previous record for the amount of gas used for electric and steam generation by 7.5 percent, reaching 904,638 dekatherms. A dekatherm is a measurement of gas equivalent to 10 therms; the typical New York City customer cooking with gas will use approximately 8 therms a month. The Con Edison gas system, which has more than 4,200 miles of mains and nearly 366,000 service pipes, supplies gas to more than 1 million customers in Manhattan, the Bronx, northern Queens, and most of Westchester County and serves approximately 4.6 million New Yorkers.

[Source: Con Edison]

The Western European market for insulated wire and cable 2001

The wire and cable manufacturers of Western Europe are readapting to a new market context. There has been a boom in telecommunications with a matching demand for telecoms cable over the past 5 years. In stark contrast to that, the trend towards utility privatization, with subsequent investment cut-backs, bas seen the power cable market crumble. In 1999 to 2000, market leading companies such as BICCGeneral divested energy cable businesses as reflection of the low growth rate of the market. Others, like Nexans, the cable division of Alcatel, still derives around half of its sales from energy cable. having recognize the current overcapacity in the Western European energy cable market Nexans has retained its leading global market position by turning to the growing Eastern European and Russian market until the improvements expected in the west materialise. Indeed, indications suggest that the transitional period marked by a slow energy cable and a booming telecoms cable market is nearing an end. Pirelli, currently the world's largest cable producer, has anticipated the market turnaround and invested heavily in the energy cable sector having divested optical systems businesses for high returns. The wire and cable industry clearly merits careful observation at a time when each year sees major transformations.

[Source: Golden Reports] [IEEMA Aug, 2001]

Crompton Greaves imports electrical parts to reduce costs

In order to reduce its manufacturing costs, Crompton Greaves has begun importing electrical components from Chinese manufacturers for its consumer products division.

The import of components like bearings and castings has started recently. Crompton Greaves managing director Mr. S. M. Trehan however made it clear that his company would not source final products like fans and appliances.

“We have begun importing in small in small volumes from China, but it is just restricted to electrical components. We do not see merit in importing the final products from Chinese manufacturers as these quite often fail to suit local conditions. The imported items cannot adapt to the sharp voltage fluctuations here,” Mr. Trehan said. Crompton Greave’s strategy to stick to importing components differs from its competitors like Bajaj Electricals who are currently importing a range of fans and toasters from China to meet local demand.  

California to encourage power conservation

California Governor Mr. Gray Davis signed an executive order, clearing the way for the State to pay big businesses that help ease its energy crunch by volunteering to cut their power use during peak hours. “Nearly 70 per cent of energy usage in California is commercial,” Mr. Davis said in a statement.

He said corporate energy conservation could help mitigate or avoid blackouts, which have been blamed on the State’s flawed effort to deregulate its power market and its failure during the past decade to add enough power plants to satisfy the demands of California’s growing population. The State’s worst blackouts came during two hot days in May, when outages in the Los Angeles and San Francisco areas left hundreds of thousands of people without power. The California Department of Water Resources and the California Independent System Operator, which runs most of the State’s power grid, will oversee the incentive program. It is expected to cost between $50 million and $100 million and will expire in October 2002.

In January, Mr. Davis declared a State of emergency due to California’s energy crisis.

Wartsila suggests Distributed power

Ole Johansson, President and CEO of Wartsila Corporation says T&D loss (theft and distribution loss, as they say) is nothing unique to India. Every country that has generation capacity concentrated at pockets faces T&D loss. India is among the countries with the highest T&D loss, which in many states, goes beyond 40 per cent. “T&D loss is a global issue, nothing exclusive to India. When you have concentrated capacity, you are bound to lose electricity,” says Mr. Johansson.

According to him, most developed countries are moving towards distributed power, with small generating plants taking care of local electricity demand. “If you have distributed power, heat can be effectively used for industries, shopping malls and also for heating purposes during the winter,” he says.

For India, with large power projects with lower offtake, distributed power is the best solution. India needs a lot of electricity generation, but it should rather focus on smaller and medium sized power plants, in order to bring down the colossal T&D waste.

Wartsila India is now focusing on service and operation of power plants. “That is the fastest growing segment in the Indian power market. So far, the company has supplied a cumulative generation capacity of 2084 MW but we operate only 300 MW. India has thrown up a new market opportunity in operation and maintenance (O&M) of power plants,” says Mr. Johansson.

Hybrid Electric Vehicles slow to get acceptance

Despite a tax break by President Mr. George W. Bush hybrid cars combining a small internal combustion engine with a battery pack have made a slow start in the US market.

The hybrid electric vehicles (HEVs) promise to cut emissions and fuel consumption, but the battery technology has not yet delivered the acceleration and sustained speed which conventional motorists demand.

Seen as the car of the future, the HEV got a boost this month from the US President’s energy strategy.

Mr. Bush announced plans for $4 billion in tax breaks for buyers of the more environmentally-friendly hybrid and fuel cell vehicles, in a package.

A number of industry analysts said the announcement, while welcome, would do little to speed output of hybrids.

The first generation includes Toyota Motor Corp’s Prius model and Honda Motor Co.’s insight.

In February, worldwide sales of the Prius were reported at around 50,000. in the second half of 2000 some 5,562 cars had been sold or leased in the United States, according to the Electric Vehicle Association of the American’s website www.evaa.org.

Wartsila expects 6-7 per cent growth

Indo-Finnish company Wartsila India Ltd. is looking at a 6-7 per cent growth in annual revenues from its operations in India.

Speaking at a seminar on ‘Distributed generation of power’ organized by CII, Ole Johansson, CEO and President of Wartsila Corporation, the parent of Wartsila India, said: “India is expected to grow faster than the world average. South Asia and specifically India represents a great opportunity for Wartsila.”

The company is also seeking long-term partnerships with its Indian suppliers for non-engine equipment such as alternators, switchgears and fuel handling equipment. At present it has a relationship with Bhel as a supplier. Incidentally, the company sources its cast steel forgings from India.

The Indian company is targeting “a 6-7 per cent growth in revenues,” according  to Mr. Pradeep Mallick, managing director of Wartsila India.

The 51 per cent subsidiary which is a power supplier for ships and a solution provider for decentralized power generation is looking at promotion of distributed generation with the Government, the industry and the utilities.

The company concentrates largely on engines based on oil and gas.

[Source: Electrical Review, July, 2001]

Lucent Technologies (NYSE: LU), reported a $3.25-billion 2Q loss and said it will undertake another round of severe cost-trimming, including as many as 20,000 job cuts, as it seeks to return to profitability some time in the next fiscal year. The telecommunications-equipment maker, which missed analyst forecasts by a wide margin, also warned that it will take a massive $7 billion to $9 billion restructuring charge in the third quarter, approximately $2 billion of it in cash. Lucent's restructuring moves include the proposed sale of its fiber business and two large manufacturing plants, and a plan to slash 15,000 to 20,000 more jobs over the next five months. Combined with the reduction of employees via asset sales and previous layoffs, Lucent's head count will fall to nearly half of the 123,000 Lucent employed at the start of this year.

Power Measurement Announces ION Enterprise Energy Management Software                                                                                                         [25 July, 2001]

Power Measurement Ltd., a leading provider of enterprise energy management systems, today announced ION Enterprise TM) web-enabled software, designed to help energy suppliers, service providers, and consumers take charge of the quality, reliability and cost of their electricity. The software offers a unique combination of energy information and control capabilities that can simultaneously address diverse needs ranging from billing, load aggregation and cost allocation, to power quality management and distributed generation. It leverages popular communications infrastructures - Internet, Ethernet, telephone, and wireless - to provide a high degree of accessibility, responsiveness and affordability.

Together with the company's ION(R) advanced, revenue-accurate metering and control devices, ION Enterprise forms a network of distributed intelligence that can span the energy assets of nationwide commercial facilities, industrial plants, or utility substations. Software and hardware are highly scalable, allowing a system to start small and grow as needs change. Connectivity with other utility meters (gas, steam, etc.) and systems is provided through multi-protocol communication ports and an open ODBC-compliant database.

The software runs on the highly robust Microsoft(R) Windows(R) 2000 platform and takes advantage of Windows terminal services to deliver real-time energy and power quality reporting, analysis, and equipment status and control through a standard web browser interface. Access can be extended to anyone that needs it anywhere in the world, including corporate facility or energy managers, accountants, and engineering or operations staff, in formats individually customized to their needs. Service providers can offer controlled access to any number of customers with no additional client software required.

ION Enterprise software can help maintain "high 9's" reliability in data centers, financial institutions or other critical power applications. Early warning alarms are sent via pager or e-mail to personnel who then use the software's graphical display and detailed event logs to quickly pinpoint problem sources and take corrective action.

The software can manage distributed generators, loads or other equipment to avoid utility penalties, or in response to real-time pricing signals or load curtailment programs. It can also allocate costs to departments or processes, reveal extra capacity in times of expansion, and highlight maintenance requirements. ION Enterprise software can support energy contract negotiation and management by aggregating loads across multiple sites and providing the information needed to benchmark energy requirements, verify contract performance, catch billing errors, and develop "what if" scenarios based on utility rates choices or load rescheduling.

ION Enterprise software is scheduled for release during Q3 2001. For more information, call Power Measurement toll free at 877-METER-IT or visit the Power Measurement web site at www.pml.com.

Scientech Issue Alert: Hermiston, Ore., Will Municipalize Electric System This October                                                                                                  [25 July, 2001]

[News item from Clearing Up] After several years of discussions, lawsuits and negotiations, the city of Hermiston, Ore., will finally establish a municipal electric utility. The Hermiston city council recently voted unanimously to spend $8 million to purchase the facilities PacifiCorp has been using to serve 4,000 commercial and residential customers. The city of Hermiston will begin serving customers on Oct. 1, 2001, when a new contract with Bonneville Power Administration (BPA) takes effect. The federal power-marketing agency has already set aside 12 MW for the city, after determining last year that Hermiston qualified as a new small public utility eligible for preference power.

DCH Technology, Inc., a manufacturer of hydrogen fuel cells and hydrogen-specific sensors and provider of hydrogen safety services, announced they have received a contract for 10 new-model DCH/Enable(TM) remote fuel cell power systems that will be used by the Texas Natural Resource Conservation Commission (TNRCC) to provide electricity on demand to air and water quality sampling equipment as well as communications equipment providing real-time data feedback.

The new 15 watt/12 volt DCH/Enable(TM) fuel cell power system is a next-generation design of the 12 watt Enable(TM) portable fuel cell the TNRCC has successfully used to power air and water quality monitors the past several months.

The new design brings to the market patent-pending internal fuel supply technology significantly improving PEM (hydrogen-based proton exchange membrane) fuel cell reliability, critical to unattended applications like remote field power. Weighing just two pounds and robustly packaged, the new DCH/Enable(TM) system will power both the sampling and communications equipment from two to three weeks (depending on load) using a 900-liter hydride fuel supply.

``This contract represents an important step forward for the TNRCC in its role of bringing clean energy solutions to the State of Texas,'' said TNRCC spokesperson Steve Spaw. ``Both our portable DCH/Enable(TM) 12 watt fuel cell and mobile 3kW fuel cell system have performed to expectations, and we are happy to see the improvements that DCH is making to further increase system reliability.''

Remote environmental sampling specialist IPS MeteoStar, with whom DCH signed an agreement last May to develop and market fuel cell powered field communications equipment, was instrumental in obtaining the award. The TNRCC will use a MeteoStar communications system -- using either a modem, wireless web, or satellite up-link -- to monitor critical contaminants and emissions as they occur. ``The new portable DCH/Enable(TM) fuel cells gives us the freedom and flexibility to monitor just about any environmental parameter in just about any location without the trouble and expense of being tethered to the electrical and telephone grids,'' said David Vaello, MeteoStar spokesperson.

DCH CEO and President John Donohue said the Commission is quickly establishing themselves as a national leader in implementing clean energy solutions. ``And our goal is to be there with them. This sale provides an opportunity to showcase our patent-pending fuel supply improvements operating under tough Texas conditions. It will speak volumes about the engineering and quality of our fuel cell products.''

For additional information, please contact Investor Relations at 661-775-8120 ext. 380 or invest@dcht.com

Safe Harbor: This news release contains forward-looking statements and information that are based on many assumptions and factors, and are subject to many conditions, including DCH Technology's continuing ability to obtain additional financing, dependence on contracts with suppliers and customers, demand and competitive pricing for DCH Technology's products. Except for the historical information contained in this news release, all forward-looking statements and information are estimates by DCH Technology's management and are subject to various risks, uncertainties and other factors that may be beyond DCH Technology's control and may cause results to differ from management's current expectations, which may cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.

Edison International (NYSE:EIX) posted a second-quarter loss on July 20 and warned that its Southern California Edison (SCE) utility subsidiary will go bankrupt without immediate action from California lawmakers. "Simply put, SCE cannot avoid bankruptcy and the state cannot get out of the energy-buying business without immediate legislative intervention," Edison Senior Vice President Bob Foster said in a letter to state lawmakers. SCE accumulated billions of dollars of debt buying power at skyrocketing prices in the wholesale market. The costs could not be fully passed on to customers due to a retail price freeze imposed under the state's power deregulation laws.

Siemens: World record in Gas Turbine Service                          [21 July 2001]

Siemens Power Generation (PG) set a new world record in plant service at the Amata/Bang Pakong combined cycle power plant in Thailand. After 25,000 hours in operation the V64.3 gas turbine was overhauled in only 26 days. Using a service concept that is tailored to the respective gas turbine design, Siemens PG enables its customers to significantly reduce the major inspection times required for their plants and enhance availability.

Today refurbishing not only has the objective of restoring used equipment to its original condition, but also of improving the cost effectiveness of the overall plant. In a process of close cooperation with the customer, all measures are conceived and tailored to his specific needs. The Amata/ Bang Pakong combined cycle plant comprises a two-on-one unit equipped with one stream turbine and two V64.3 gas turbine, each of the latter rated at 60mw. Overall plant output at base load totals some 170mw and can be increased during peak demand periods to about 190mw. Natural gas is primary fuel combusted. If necessary, however, light distillate fuel oil can also be fired in this plant. Amata/Bang Pakong was built by Siemens PG and handed over to the Thai customer Amata two gas turbines and the steam turbine, the scope of supply also included the three generators as well as the instrumentation and control equipment.  

[Source: Electrical India, June 2001]

European Commission upsets GE’s acquisition plans        [21 July 2001]

The world’s largest industrial merger went up in smoke when the European Commission blocked General Electric Company’s proposed $42 billion acquisition of Honeywell International. This was a historic first time event wherein an all-American merger, which had already been approved by US regulators, was blocked by the European Commission.

The sixty-year-old Chairman and Managing Director Chief executive of Honeywell, Michael R Bonsignore has resigned and has been replaced by Lawrence Bossidy, the former Chairman and CEO of AlliedSignal, which in 1999 acquired Honeywell and adopted the Honeywell name.

Mr. Bossidy had served as chairman of the combined entity for four months and was succeeded by Mr. Bonsignore. Many of Bonsignore’s supporters hold Mr. Bossidy responsible for their earning woes that have plagued Honeywell for a year. Mr. Bossidy has been assigned the task of fixing Honeywell or selling it to another buyer, for the one-year period that he will be retained for.

While GE CEO Jack Welch who had postponed his retirement to see through the proposed $42 billion acquisition of Honeywell International has come under a lot of scrutiny and media spotlight, thanks to the failure of the merger. Still, experts believe that this failure does not affect Mr. Welch’s reputation severely.

[Source: Electrical India, June 2001]

Hungary to liberalize power markets from 2003                        [21 July 2001]

The Hungarian Government has announced it will begin a program of liberalizing its electricity market from 2003, two years after its scheduled introduction.

The transition to a competitive environment is key to Hungary’s accession to the European Union, for which it is an accepted candidate.

In the first stage, 300 large industrial consumers, representing 35 per cent of the market, will have a choice of supplier. According to a senior Ministry official, eligible  customers will receive a minimum reduction of 15 per cent in the price of electricity.

Under proposed legislation, Hungary will limit mergers in the sector to prevent the creation of an oligarchy, whereby more than 30 per cent of the generation market is controlled by a single entity.

However, critics have argued that exemption of state owned power utility, MVM, from the legislation, will restrict the competitiveness of the new market. MVM currently dominates the Hungary’s power sector, generating 45 per cent of the country’s electricity.

[Source: Electricity International, June 2001] 

Bush launches eagerly awaited energy plan                          [21 July 2001]

US President, George W. Bush, has unveiled his eagerly awaited national energy plan, proposing a relaxation of regulations relating to oil and gas exploration, and conservation measures designed to meet the future energy needs to meet the future energy needs of the country, as well as averting a repetition of the energy crisis it now faces.  

The report also urges a revived commitment to nuclear power, including reconsidering a 25-year ban on reprocessing nuclear fuel.  Japan, France and the UK currently undertake nuclear reprocessing, although the UK is reconsidering its stance, as the practice is so costly.  Nuclear already supplies 20 per cent of the US’s electricity.

Speaking at the US nuclear industry’s annual meeting in Washington, less than one week after the formal support for nuclear power, Cheney, urged the Nuclear Regulatory Commission (NRC) to speed up the relicensing of existing plants.  Over the next five years, 20 plants will need to renew their permits to continue operating.  No new licenses have been granted for new plants since the Three Mile island accident in 1979.

Cheney called for the renewal of the price-Andersen Act.  Passed in 1957, the law protects nuclear companies from unlimited liability, and expires next year.

The plan acts upon recommendations of a task-force led by Vice-President Dick Cheney, and proposes 105 initiatives.

Bush declared that energy problems threatened the nation’s economy and security, warning that the US, ‘in the year 2001 faces the most serious energy shortage since the oil embargoes of the 1970s’.

One contentious issue of the plan, is the repeated commitment to explore the Arctic National Wildlife Refuge (ANWR) for oil drilling.  Bush said that such a scheme would yield 6000,000 barrels per day of oil for 40 years, the amount now imported from Iraq.

One of the many recommendations is a call for the federal Government to be able to purchase land compulsorily – a right currently reserved for states – for the use of transmission lines.  Bush will order agencies to expedite permits for energy-related projects.

The energy policy also includes plan to license as many as 1,900 new power stations over the next 20 years.

In what is seen as a change in attitude towards conservation measures, the President proposed offering US$10 billion in tax incentives over ten years for research and development of alternative fuels and energy-efficient technologies.

However, the plan has already been criticized by environmentalists and Democrat party members, who predict that it will receive a tough response from Congress.  Urging opponents to tone down their rhetoric, Bush said:  “We have yelled at each other enough.  Now it is time to listen to each other and to act’.

The defection of Senator James Jeffords, from the Republican Party, to stand as an independent, however, has upset the balance of power in the Senate, and could complicate and delay implementing the energy plan.

Call to order

Days after the official release of the energy plan, Bush announced two executive orders designed to accelerate the review of energy projects and improve the understanding of the regulatory impact on energy use.

Once order directs agencies to prepare ‘a statement of energy effects’ about all proposed regulations that could affect the supply, distribution and consumption of energy.

A second order calls for federal agencies to expedite the decision-making process when proposing permits for projects that increase energy production, transmission or conservation.  An inter-agency task force will be created to monitor and assist the efforts of agencies in accelerating the permit applications review. 

[Source: Electricity International, June 2001] 

Brazil prepares for energy shortage                                     [21 July 2001]

Brazil is preparing for a power and water shortage as a result of a series of dry summers and heat waves, which have left Brazilian reservoirs at record low levels.

This has placed abnormal pressure upon the country’s power network, which is driven almost exclusively by hydropower stations.  The impending shortages threaten to impede economic growth and destabilize the domestic equity market.

Alarmed, the Government of President Fernado Henrique Cardoso, has prepared a contingency plan that will execute daily power cuts for up to four hours, as it attempts to reduce consumption by nearly 35 per cent over the next six months.

Also on the agenda is the construction of 55 thermoelectric power stations by 2003, which will boost the country’s energy grid by over 21,000 MW – a third of the country’s existing generating capacity.

National energy agency, Aneel, plans to auction licenses in June to build eight new hydropower plants, within the next seven years, at a cost of about US$1.6 billion.

In addition to fears over safety expressed by most Brazilians, the Getulio Vargas Foundation, has predicated that energy cuts could result in mass unemployment and cost the Government nearly $3 billion in lost tax revenue.

The mining giant, companhia Vale do Rio Doce, which consumes about four percent of Brazil’s electricity, plans to temporarily transfer its manganese and iron alloy production, to factories in France and Venezuela.  Meanwhile, US-based AES Corp., has announced the suspension of investments totaling $2.5 billion in the country, until Aneel modifies its policies.

The energy crisis has spread to neighbouring Chile, where the threat of a capacity shortfall has led to calls for increased investment in thermal energy.  Industry leaders believe that by 2003, Chile will face a repeat of the 1999 situation, where recession was exacerbated by low rainfall.  The capital Santiago, and other urban centers in the populous southern region, were plunged into darkness for a four month period of rationing, as hydropower plants were deprived of water.

Since 1996, an average seven per cent growth in Chile’s electricity demand has not been mirrored by investments in increasing capacity.  A new pipeline from Argentina has contributed to the problem, as Chile’s three dominant generators invested in cheaper, gas-fired plants in the mid-1990s. 

[Source: Electricity International, June 2001]

Department of Energy Secretary Spencer Abraham announced a $3-million award to Capstone Turbine Corporation for the "research, development and testing of packaged cooling, heating and power systems for buildings."

The goal of the project, according to a DOE press release, is to "focus on innovative integration of (distributed energy resource) power generation, thermal recovery, and thermally-activated cooling and humidity control technologies.

Siemens offers new web training program                                      12 July, 2001

Siemens Energy & Automation, Inc., today introduced a new Internet-based training program for anyone interested in learning about the basics of electricity and standard electrical products.

Intended to serve as an electronic version of the company's "STEP 2000" training program available in print, the first of five "quickSTEP" online training courses can now be accessed on the Siemens website at http://www.sea.siemens.com/step. Current selections include Basics of Electricity, Basics of Control Components, Basics of Sensors, Basics of Load Centers, and Basics of Safety Switches.

Siemens officials stressed that quickstep is a complementary training method to STEP 2000 and it will continue to offer both.

Added features of quickSTEP include a pictorial glossary and downloadable pdf files for all STEP 2000 courses.

Additional quickSTEP courses will be added in the coming months, eventually spanning the same content as our STEP 2000 courses.

Headquartered in Alpharetta, Ga., Siemens Energy & Automation manufactures and markets the world's broadest range of electrical and electronic products, systems and services to industrial and construction market customers. Its technologies range from circuit protection and energy management systems to process control, industrial software and totally integrated automation solutions. The company also has expertise in systems integration, technical services and turnkey industrial systems.

The above statements are based on current expectations. These statements are forward-looking and are, therefore, subject to certain risks, uncertainties and assumptions. Many factors could cause actual results, performance or achievements of Siemens to materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by customers targeted by Siemens worldwide, changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as anticipated, believed, estimated, expected, intended, planned or projected. Siemens worldwide does not intend, and does not assume, any obligation to update these forward-looking statements.

California endorses Hike in Electricity rates

At a time when California’s struggling utilities have accumulated enormous debts after buying power at high prices, they had to unavoidably pass on the costs to the consumers. As a result, California Public Utilities Commission has approved the biggest increase in electricity rates in the State’s history. Moreover, CPUC aims to raise around $5bn for the State’s struggling utilities, to suffice the massive debts. Under the plan, which was approved by a 3 to 2 vote, residential customers could face monthly rate of increase of as such as much as 54.5%. The increases however are unlikely to affect an estimated 50-60% of California’s homeowners, who fall under the baseline calculated by the CPUC as "reasonable" power use. But the people who are most affected are the industrial customers such as factories that will face an average increase of 49.5% in the rates they’re charged. Agricultural users will face a 15-20% rise, and commercial customers will see their bills rise by 36.41%

The plan came at a time when the North American Electricity Reliability Council admonished that California may face up to 15 hours of power cuts per week. Meanwhile, California’s credit rating was cut by Moody’s Investors Services, the second downgrade of the State’s debt by a major US ratings agency in less than month and the agency also warned that; if the State or US rating agency. Standard & Poor, has also downgraded the ratings of California’s main power purchaser to default status and warned of a possible effect on the entire State’s credit rating

ABB into upgrade Irish Power network

ABB has recently won a contract this month worth approximately US$14 million to expand and upgrade the power network in and around Dublin, Ireland. The ongoing project is part of Ireland’s infrastructure development plan, and is aimed at making the country a European hub for eBusiness and other emerging industries. An initial order for four substations was placed by Ireland’s national utility, the Electricity Supply Board (ESB). In partnership with ESB, ABB will begin upgrading the network of 110 kilovolt (kV) and 20kV substations in the Dublin area. "Our expertise in both equipment, monitoring and control system for power grids, combined with our experience in deregulating markets around the world, allows us to deliver highly reliable solutions to make utilities more competitive," said Richard Siudek, the executive vice president and head of ABB’s Utilities division. "We expect demand for reliable power to continue to grow, driven not only be deregulation but also by the needs of expanding eBusiness infrastructure."

During the past decade, high-tech industries have flocked to Ireland, drawn by an investment – and technology-friendly business climate, broadband Internet access and a large pool of skilled high-tech labour. In addition to supporting the next phase of power infrastructure development in Ireland, ESB is also adapting to deregulation of the Irish power industry, where power reliability and cost-effectiveness are key to competitive success. ABB will build its most advanced network sensor and control technologies into the substation upgrade project, and help ESB achieve those goals

Vietnam to introduce 3 major gas fueled Power Projects

Vietnam’s total demand for electricity is forecast to rise to over 37 billion kWH in 2005 up by 11-12% every year. About 45% of this huge demand will be consumed by the service sector and the remaining 45% will be for daily consumption. Total supply of electricity is estimated to reach 1,400 MW in 2005.

The Vietnam Government has endorsed three major gas-fueled power projects worth US$1 billion, including the Phu My2-2, Phy My3, and Phu My4, which are part of the power complex in Ba-Ria-Vung Tau Province. According to the Electricity of Vietnam (EVN), the 720MW Phu My2-2, estimated to cost US$471 million, will be built under BOT terms by a foreign consortium comprising Electricite de France, Sumitomo and Tokyo Electric Power. The 700MW Phy My2 will also be built under BOT at US$320million by Siemens AG and operated by a consortium comprising Statoil, BP Amoco, Tomen and Mitsui, EVN will undertake the 450MW Phy My4 on its own with funding estimated at US$242 million. All these three projects are to be run on gas to be exploited and transported from the Nam Con Basin gas project being developed by a joint venture between Petro Vietnam and ONGC Videsh Ltd. BP Amoco and Statoil.

The power sector expects to supply 30 billion kWh of electricity this year. It has plans to invest VND 16,296 billion (US$1.16 billion) to complete major power projects, including the Yaly, PhyMy, 1 Pha Lai 2 and Ham ThuanDa Mi.

World Bank may amend loan agreement with Napocor                    [7 July, 2001]

After repeated requests from the National Power Corporation of the Philippines, the World Bank has finally agreed to amend some provisions of its loan agreements. The Bank has deleted the loan condition that Napocor post an 8 per cent annual return-on-rate-base (RORB). Earlier in April 2001, Napocor had written to the World Bank requesting for changes in its financial covenants, given its failure to meet the required RORB in the last three years. However, the World Bank has also said the other provisions of the loan agreements would stand. Napocor has sought waivers on its loans so as not to be declared in technical default. A default will force the bank to demand the payment of the outstanding loan balance.

ABB Germany has signed a $15.99 million contract to upgrade a sub-station of the Romania's state-owned electricity transmission company Transelectrica. The deal, signed in Berlin, targets Transelectrica's unit in the Black Sea port of Constanta and includes a seven-year service. Romania aims to adhere to the grid of the Union of Transmission of Electricity (UCTE) connecting Eastern Europe to European Union countries by 2002. The company has a major rehabilitation programme estimated at around $820 million in line with UCTE demands to be implemented by 2010.

The state-run Israel Electric Corporation (IEC) has awarded Siemens a contract to supply three natural gas turbines and is holding talks with General Electric over the supply of a fourth. Purchasing and setting up the three turbines, each capable of generating 370 MW of power, is likely to cost $550 million. According to IEC officials, the turbines will help the company prevent a repeat of the situation last summer when demand for power led to power reserves reaching zero.

Ireland’s ESB intends to bid for G8 distributors                             [7 July, 2001]

Ireland's state energy group ESB plans to place a binding offer for the 25 per cent stake of the G8 energy distributors. The Irish company is also interested in buying one of the four domestic power generators from Poland's Treasury that are to be tied to the sell-off of the G8. The power plants are the Kozienice, Stalowa Wola, Ostroleka and Dolna Odra plants. Six investors interested in buying into G8 were shortlisted by the Treasury at the end of March 2001. These were Belgium's Electrabel International Holdings BV, Spain's Endesa and Iberdrola, ESB International Investments, and two consortia, one led by domestic telecom/power group Elektrim and the other including Germany's E.ON Energie and Energie Nord AG. The G8 group of plants are centered in northern Poland and are ZE Koszalin, ZE Slupsk, ENERGA Gdansk, Elblag ZE, Olsztyn, Torun, Plock and Energetyka Kaliska.

Shell Solar Limited, a unit of Royal Dutch Shell Group, has signed an agreement with China's Sun Oasis Company Limited to supply solar home systems to up to 78,000 households over the next five years in the Xinjiang Autonomous Region in the west. The project is supported by a $15 million grant from the Dutch government and is part of China's program to bring electricity to remote areas. This is Shell's first renewable energy project in China. While, Shell Solar will be responsible for the supply of the systems and will provide technical and management assistance, Sun Oasis will be responsible for marketing, installing and maintaining the solar home systems.

Oil, Westinghouse likely to buy Union Power                               [7 July, 2001]

Thai Oil Power and Westinghouse is likely to take over Union Power, a company building coal-powered power plant in Prajuab Khirikhan's Hin Krud district. The major shareholders are Tomen of Japan with a 34 per cent stake, Union Energy with 10 per cent equity and the balance is shared by Fortum and Southern. According to company sources, Thai Oil Power and Westinghouse were interested in buying shares from the major shareholders who want to pull out of the project. The Hin Krud project is behind schedule due to protests over the plant's environmental impact. The project will be funded 55 per cent by Japan Bank for International Cooperation, which has made its loan conditional on the project's environmental protection measures, 30 per cent by other Japanese banks and 15 per cent by Thai financial institutions. Union Power already has the necessary permits for constructing its plant and has made contracts with three construction companies. Union Power has hired Chobu Electric of Japan to run and maintain the plant and has made coal supply contracts with Tomen Coal and NYK of Japan.

The British company PowerGen has closed the sale of its holdings in Hungarian and German mining and energy companies, initiated in April 2001. As part of the Pound 130 million transaction, the British investor sold its 100 per cent stakes in Csepel and Csepel II power plants as well as its stakes in the German MIBRAG and Saale Energie, which owns the Schkopau power plant, to NRG Energy of Minneapolis. As a result of the sale, PowerGen's loan debt has been cut by Pound 1.37 billion instead of the originally planned Pound 1billion. Csepel I power plant has power generation capacity of 116 MW and Csepel II power plant is a combined cycle gas turbine power plant with power generation capacity of 389 MW and heat generation capacity of 134 MW. This power plant was built at a cost of $260 million and began production in November 2000. Csepel II power plant has a 20-year power purchase agreement with MVM Rt.