PROFILE

Essar Power is one of India’s largest private sector power producers with a capacity of almost 3,900 MW across six multi-fuel plants in three Indian states and one thermal power plant in Canada. Of this, the Company operates 2,400 MW as an Independent Power Producer (IPP) with plants in Madhya Pradesh and Gujarat. The remaining are Captive Power Plants (CPP) in Gujarat & Odisha. Essar Power has also invested in the transmission business and constructed a 465-km interstate transmission system which spans three Indian states.

Essar has invested about INR 32,000 crore in the power portfolio, which includes INR 12,000 crore of equity. The company aims to bring down leverage in its balance sheet from INR 20,000 crore currently to aboutINR 7,500 crore. The deleveraging efforts include the debt restructuring in the IPPs, which were affected by the cancellation of coal mines and unviable pricing of imported thermal coal. Essar Power is in discussions, which are now at an advanced stage, with its lenders to restructure all existing debts. This Company has put together a clear programme to address the challenges faced by the IPPs and is confident of overcoming them in the current year.

Power demand in India is increasing at a rate of 7% year-on-year and there are no new power generation capacities that are expected to be created in the near future. Essar Power, therefore, has an excellent opportunity to enter into new PPAs and utilise its entire generation capacity. The business is led by a strategy of stabilising existing operations, growing them and venturing into the renewable space.

operations

Essar Power Hazira (270 MW)
Essar Power Hazira is fuelled predominantly by imported coal and corex gas fines from the adjacent Essar Steel corex plant and comprises of two generation units of 135-MW capacity each.

Essar Power Hazira (515 MW)
Essar Power-Hazira power plant located near the Essar Steel facility in Hazira, Gujarat is a multi-fuel (naphtha, high-speed diesel, natural gasoline liquid and/or natural gasaz) combined-cycle plant.
Essar Steel and GUVNL, the Gujarat State power utility, purchase 215 MW and 300 MW of the power, respectively.

Essar Bhander Power-Hazira (500 MW)

The Bhander Power-Hazira plant, located in Hazira, Gujarat, is a natural gas-fired combined-cycle captive power plant.

Essar Steel and other Essar Affiliated Companies are responsible for providing the natural gas required by the Bhander Power-Hazira plant, and in turn take the power generated pursuant to their PPAs with Bhander Power.

Essar Power Orissa

Paradip power plant is a coal-fired power plant comprising four generation units of 30 MW each located in Paradip, Orissa. The first phase of 60 MW was commissioned.

Paradip is a well-equipped and serviced port, an advantage for the supply of imported coal.

The Essar Power Jharkhand

Tori (EPJL) project will be domestic coal fired power plant being set up in Latehar district of Jharkhand. It will comprise two generation units of 600 MW capacity each.

Essar Power Salaya (1,200 MW)

Essar Power Gujarat Ltd (EPGL), a subsidiary of Essar Power Ltd (EPL), and the owner and operator of a 1,200 MW imported coal-fired thermal power plant at Salaya in Gujarat’s Devbhumi Dwarka district. The Salaya Power plant meets 9% of Gujarat’s overall power demand. It has an ongoing 25-year PPA with the country’s highest rated discom, the Gujarat Urja Vikas Nigam Limited (GUVNL; Rating A1+), for 90% of its capacity, ensuring timely payment of receivables. EPGL continues to ensure over 80% availability to its anchor customer, GUVNL. Among the many awards that EPGL has won, the most significant is CII’s Excellent Energy Efficient Unit award that was conferred on the Salaya plant. Salaya plant has been awarded for its environment credentials. It has been recognised for being the lowest Sulphur Dioxide (SO2) and Nitrogen Oxides (NOx) emitter amongst all coal fired power plants in the country.

Essar Power Mahan — Madhya Pradesh (1,200 MW)

The Mahan power plant is a 1,200 MW (2×600 MW) captive coal-fired pit-head power plant located in Singrauli district, Madhya Pradesh. The plant is supported by an end-to-end raw material sourcing and evacuation infrastructure.

Essar Power Transmission Company Ltd. (EPTCL), an arm of Essar Power, has built a 465-km Inter State Transmission System (ISTS), comprising three transmission lines. These lines are:

  • 337-km 400 kV Mahan-Sipat line
  • 105-km 400 kV Gandhar-Hazira line
  • 22-km loop-in-loop-out (LILO) on 400 kV Vindhyachal-Korba line

The lines span three states—Madhya Pradesh, Chhattisgarh and Gujarat—and connect the Mahan power plant to the Central Grid.

ALGOMA, CANADA

Essar Power (Canada) (formerly Algoma Energy LLP) owns and operates the Algoma Power Plant in Ontario, Canada. This 85 MW co-generation plant was commissioned on June 13, 2009. The plant’s facilities include two 375,000 pound/hour boilers and a 105 MW turbine. The power plant converts waste gases into electricity and steam for the steelworks. And 63 MW of the power produced is sold to the Ontario Power Authority pursuant to a 20-year power purchase agreement which expires in 2029.

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