Tag: STELCO

STELCO installs new generator

The State Electric Company (STELCO) today begun using the first of two new generators designed to alleviate a shortfall in the country’s energy needs after a successful test was completed on the unit, according to local media.

A STELCO official told Haveeru that the first 8.9 Megawatt generator had now been connected to the country’s power generation system, with testing on a second identical unit expected to begin soon.

The company back in April announced it was having to enforce scheduled power cuts to offset a shortage estimated at the time of 2.5 megawatts of energy.

The two new generators were initially set to be implemented as part of the fourth power project back in December last year. This date was later pushed back to May 2012.

Once installed, the two new unit will complement the company’s existing 17 generators operated by STELCO.

STELCO is a state company that provides electricity to 50 percent of the population.

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Potential for power cuts across Male’ today as STELCO test new generator

The State Electricity Company (STELCO) has announced that there may be power cuts in Male’ between 3:00PM and 5:00 PM today as it tests one of its two new generators, reports Haveeru.

“We have notified customers that there would be a possibility of power failure as the performance of the new generators is being tested today. We have estimated that the process would take approximately two hours,” a STELCO official told Haveeru.

The official added that the second generator will undergo similar testing soon, with both devices scheduled to be up and running by June 5.

It is anticipated that the installation of these two generators, said to cost Rf547 million (US$36million), will end the regular power cuts experienced in the capital Male’. The frequency of these cuts has obliged the company to provide an update service on its website, informing its customers when and where their districts will be without power.

The current grid is capable of providing 36MW, whilst the city requires 39MW. The two new generators will provide an additional 8MW each.

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STELCO says new generators may be ready in two weeks

The Maldives’ State Electricity Company (STELCO) has announced that work on its two new generators will be completed in two weeks, Sun Online has reported.

It is anticipated that the installation of these two generators, said to be worth €28 (US$36million), will end the regular power cuts experienced in the capital Male’. The frequency of these cuts has led the company to provide an update service on its website, informing its customers when and where their districts will be without power.

STELCO media coordinator Ibrahim Raoof told Sun that these cuts had come as the current grid is capable of providing 36MW whilst the city requires 39MW. The two new generators will provide an additional 8MW each.

Work on the two generators began in 2009 and had been scheduled to take 18 months. The German and Danish companies responsible for the installation had given May 20 as the date for completion.

Raoof told Sun that if technical problems continue, this new deadline may also be pushed back.

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MDP condemns frequent power interruptions in Malé

The ousted Maldivian Democratic Party (MDP) has condemned frequent power interruptions in Malé and has claimed the interruptions resulted from two foreign companies involved in power upgrade withdrawing from the Maldives after the controversial transfer of power on February 7.

However, CEO of State Electric Company Ltd (STELCO) Zaid Mohamed has told Minivan News that Germany-based MAN SE and Denmark’s SAMCO companies only left the country for 10 days following the change of government, but returned to the Maldives to continue work on the Fourth Power Development Project.

Daily power cuts result from a delay in completing the Fourth Power project which will add two generators, each capable of producing eight megawatts of electricity, to the company’s functioning 17 generators, STELCO has previously said .

The fourth power project was scheduled to be completed by December 2011, but will now be completed by the end of May, Zaid said.

The MDP in a statement on Wednesday expressed concern over damage to household electric appliances from unscheduled power outages. The party has also claimed the new President Dr Mohamed Waheed Hassan intends to reduce electricity subsidies to the public.

Meanwhile, Indian media IBN Live has reported that President Waheed asked for Indian investment in providing electricity services during a meeting with Maharashtra Governor K Sankaranarayanan during Waheed’s recent trip to India.

Waeed told the Governor “electricity is a major problem in Maldives and said power companies from India can help Maldives to tide over the energy deficiency,” IBN Live reported.

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STO, STELCO and Dhiraagu boards reconstituted by president

President Mohamed Waheed Hassan has reconstituted the Boards of Directors for the State Trading Organisation (STO), the State Electric Company (STELCO) and telecommunications group Dhivehi Raajjeyge Gulhun (Dhiraagu).

Abdulla Faiz is set to take the Chairperson role for the STO board. Ahmed Shareef and Ibrahim Athif Shakoor will take the Chairman role on the Board of Directors at STELCO and Dhiraagu respectively, according to the President’s Office webste.

The announcement was made after President Waheed earlier this month announced he was reconstituting the boards of six other companies.

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Malé power cuts to continue till May 8: “Just no other option”, says STELCO

Scheduled power cuts in Malé are likely to continue till May 8 as the State Electric Company Ltd (STELCO) struggles to meet increased demand for electricity during the hottest month of the year.

Speaking to Minivan News, STELCO spokesperson Ibrahim Rauf said the company is only able to generate 35 megawatts of electricity per day at present, and faces a shortage of  2.5 megawatts.

The shortage is due to a delay in completing the fourth power project which will add two generators, each capable of producing eight megawatts of electricity, to the company’s functioning 17 generators.

The fourth power project was scheduled to be completed by December 2011, but will now be completed in May and generators will be running by May 8, Rauf said.

Hospitals and government offices will not face power outages, he added.

Meanwhile, Environment Minister Dr Mohamed Muiz has ordered all government offices to keep air conditioning at 25 degrees centigrade in order to reduce overloading STELCO, local media reported. The move could save one megawatt of electricity, an amount that can serve 300 households per day.

“We have to cut electricity because there’s just no other option,” Rauf told Minivan News. Malé has faced almost daily power outages throughout April.

Power interruptions would only last for an hour he said, adding that households can check when their buildings were likely to face outages on STELCO’s website.

“If households and businesses spread out use of electricity, for example, by doing ironing or operating heavy machinery at night or during weekends instead of during peak hours, the demand for electricity will decrease. Then we can reduce the frequency of power outages,” Rauf said.

He identified peak hours to be from 10:00am to 12:00pm, and from 1:30pm to 2:30 pm. Only Malé has been affected. The city’s suburbs Villingili and Hulhumalé and industrial island of Thilafushi will not be affected, Rauf said.

Lack of rain and increased temperatures in April also bring severe water crises annually to many islands in the Maldives. Maldives National Defense Forces (MNDF) have previously said over 60 islands have reported water shortages. MNDF is now providing desalinated water to these islands.

Telecomm provider Dhiraagu’s internet services were also interrupted this weekend due to damage sustained to an underwater submarine cable.

STELCO is a state company which provides electricity to 50 percent of the population. The company owns 23 powerhouses in 23 islands.

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STELCO explains power cuts

Maldives’ State Electricity Company (STELCO) yesterday explained that intermittent losses of power in the capital Male’ are a result of vital upgrade work.

The company said that more losses of power should be expected as new generators were being installed.

Yesterday’s power failure was caused by the technical failure of three main generators.

STELCO explained that demand for power is rising every year and that the company plans to add two generators of 8000kW to its current capacity of 38.8MW.

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Renewable energy prices posed with high potential

The cabinet has set prices for government-owned utilities companies to purchase renewable energy as part of an investment scheme to bring the Maldives closer to its carbon neutral goal.

“We think renewable energy has a lot of potential, it is why we are in the business. We think this is where things should be going,” said Renewable Energy (REM) Director Hudha Ahmed. Noting that diesel rates are currently higher than projected solar energy rates, she said solar energy is a more reliable source long-term.

According to the Cabinet’s decision, State Electric Company Limited (STELCO) can buy a unit for Rf3.42. South Central Utilities Limited will be charged the highest rate per unit (Rf5.39), and Upper North Utilities Limited can buy a unit for Rf4.44. Units are available to Northern Utilities Limited for Rf4.40, Central Utilities Limited for Rf3.97, and Southern Utilities Limited for Rf3.94.

The Maldives currently aims to cut carbon emissions by 60 percent using solar power. Currently, no company is carrying out a commercial renewable energy project in the Maldives.

STELCO, which just received the rates and is awaiting conditions from the Ministry of Housing and Environment, said there are plans to provide renewable energy locally.

“We have some projects which are being planned, mostly in solar and wind. One solar project is expected to be commissioned in a few weeks,” said STELCO Chief Technology Officer Mohamed Zaid.

Since signing the Copenhagen Accord in January 2010 the Maldives has focused on decarbonising the electricity sector, which accounts for over 31 percent of industrial project expenses.

Decarbonising the country is expected to cost the Maldives US$3-5 billion over the next 10 years.

The rates approved by the Cabinet were researched and recommended by Maldives Energy Authority. Deputy Director Ajwad Musthafa said the rates were calculated according to fuel prices in each region and differences in fuel efficiency.

“The amounts we set were about 10 percent cheaper than they currently are in diesel,” Musthafa said.

Over 25 percent of the Maldives’ GDP is spent on diesel used for boats alone.

Consumers won’t be affected by the plan, which currently targets investors only and is likely to be lucrative, he added.

“As it stands now, a person can put a solar panel in his home and send the power to a grid. Having invested in energy production, that person can expect a six to seven year payback period before making a profit, which are expected to grow significantly with time. Currently, there is no mechanism in place between the investor and the utility company, but I believe it is being developed,” said Musthafa.

He observed that the system would be especially attractive to people in the Upper South and South Central regions, “where energy prices and feed-in tariffs are higher.”

In September, the Maldives signed the Renewable Energy through Feed-In Tariff in an effort to reduce electricity costs by promoting a shift from oil fuel to renewable energy sources.

“The existing system is fairly inefficient in these areas,” he said. “About fourteen years back the government was charging an Rf3.5 flat rate for energy. We got complaints from investors, so now we are trying to make it more exciting for investment.”

Earlier this month the Maldivian government solicited bids from solar power companies to power 29 islands, which are facing power generation difficulties. Many small islands have small power stations, which are expensive and yield disproportionate returns.

As fuel prices increase, Musthafa explained, so will the feed-in tariff, and the overall price of diesel is unlike to drop in coming years. By comparison, locally-produced solar would be a valuable option.

Musthafa said a buyer’s mechanism was being developed and would be implemented in due time. “Right now, we want to create a market that offers transparent, confident investments,” he said, adding that foreigners are expected to play an important role.

“Foreign investors will only have to sign a power purchase agreement. Nothing has to be taken from the government’s side,” he said. Local companies are also expected to benefit from external support provided by foreign investors.

Past the investment phase, the solar plan includes capacity development, training and awareness programs on renewable energy, and methods to make the investment more affordable, including concessional loans.

“Our hope is that by early next year we will have the proper institutional set up to make this happen,” Musthafa said.

Correction:

Previously, this article stated, “As it stands now, a person can put a solar panel in his home and send the power to a grid…Currently, there is no mechanism in place between the investor and the utility company, but I believe it is being developed.”

It should have read, “As it stands now, a person can install a solar panel in his home and sell the power to a grid…We have already established a set of technical guidelines and application procedures for Solar PV installations. Additional regulations are being developed.”

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DQP MP submits resolution to cut fuel surcharge

The Dhivehi Qaumee Party (DQP) has submitted a resolution to parliament calling on the government to cut the fuel surcharge included in the electricity bill every month.

In the resolution, DQP MP Riyaz Rasheed claims that the fuel surcharge was “a type of tax unapproved by the parliament and taken from the citizens, despite the laws clearly stating that any tax could only be taken after parliament approves it.’’

“When President Mohamed Nasheed was campaigning for the presidential election, the pledge he made publicly was to lower the electricity tariff,” Riyaz Rasheed said in the resolution. “It could be believed that raising the electricity tariff from month to month is a deliberate attempt made by the government to make the citizens poor.”

In the resolution the MP says that electricity is one of the country’s basic needs and that due to the hike in electricity tariffs, “today citizens have to spend bulk of their wage on electricity.”

The resolution also says that the owners of medium-sized businesses were worried about the future of their businesses “because of the government’s decision to float the dollar exchange rate in to a band of Rf10.28 – Rf15.42 which has made the prices of goods increase.”

The MP also called on the government to cease withdrawing taxes from the citizens in the name of fees or charges “at a time when adults and children are forced to live in poverty.”

In May last year the main opposition Dhivehi Rayithunge Party (DRP) led protests outside State Electric Company (STELCO) complaining about increased electricity tariffs.

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