Page 10 - CONSTRUCTION VISION July August 2017 issue

DUBAI`S SOON TO HAVE even with little to no sun shining. pipes is at 10 per cent.
NIGHT TIME SOLAR POWER
The fourth phase is the first out of a planned
FOR HOMES While the New Steel Policy 2017 encourages
total of 1,000MW using CSP tower
use of domestically produced steel, it seems
technology, which has mirrors beaming light
to have a number of gaps that need to be
to a tower that creates steam to generate
addressed in terms of implementation.
electricity.
Moreover, it does not apply to Engineering
Currently the solar park is generating Procurement and Construction (EPC)
213MW of PV power, with another 800MW contracts. Exporters can work around the
under construction. clause that stipulates 15% domestic value
addition and still dump steel products, said
The solar park will have a total capacity of Vinod Mehta, General Secretary, Indian Pipe
5GW by 2030, in line with Dubai's clean Manufacturers Association. A purchase
energy strategy of generating 75 percent of preference policy of the union petroleum
electricity from clean energy by 2050. industry is also helpful to domestic producers
Dubai will likely have another world record in since it provides cushion to the extent of
STEEL PIPE MAKERS
solar with it's upcoming project, which will 10% of price difference. However, it is not
APPEAL TO DGAD AGAINST
allow the sun to power thousands of homes enough since the price differential in this
at night. 'UNFAIR COMPETITION' case is higher than 10%, he added.
FROM CHINESE SUPPLIERS
A record low bid was submitted for the
concentrated solar power (CSP) project, Steel pipe makers like Jindal SAWBSE -0.14 Massive investment in infrastructure and
coming in at 9.45 US cents per kilowatt-hour %, Man IndustriesBSE -1.59 % and Welspun laying of pipelines have been planned by
(kWh), nearly 40 percent below the previous CorpBSE -1.18 % have appealed to the state owned oil companies, led mainly by
world-record low price for electricity Director General of Anti-Dumping and Allied GAIL. Though the total requirement of pipes
generated from this technology. The three Duties (DGAD) against unfair competition for these projects is less than combined
capacity, it is important that proactive
other bids ranged from 10.58 cents to 17.35
measures are taken to salvage the industry,
cents per kWh.
IPMA said. For instance, oil & gas PSUs
The Dubai Electricity and Water Authority could restrict procurement of pipes from
(Dewa) announced the prices on Monday for domestic sources only. More since, the pipe
the 200-megawatt fourth phase of the making industry has a loan exposure level of
Mohammed bin Rashid Al Maktoum solar Rs 15,000 crore, Mehta said.
park.
Some of the major upcoming projects include
The utility will now review the bid
BPCL (EIL) – Kochi Kerala & Mundra Project
submissions to determine the project winner,
(61,000 tonne , APGDC – Kakinada project -
a process that usually takes a month. from Chinese suppliers, since the latter have
18,000 tonne, IOCL - Haldia Barauni pipeline
emerged among the lowest bidders of recent
The latest phase was announced last – 45,000 tonne. Others projects include three
orders for oil & gas pipelines. With trade
summer as the utility looks to not only by GSPL – Dahej Bhadbhut Pipe line (15,000
measures against dumping of steel, the
diversify its energy mix to include more tonne), Mehsana Bhatinda pipeline (2.5 lakh
Chinese are dumping value added products
renewable sources, but also to use different tonne) and Mallavarm Bhopal Bhilwara
like pipes in the Indian market, an industry
technologies. project (1 lakh tonne). The latter projects,
body has alleged seeking imposition of
tenders for which were floated and EPC bids
The 800MW third phase – utilising solar antidumping duty on submerged arc welded submitted, are on hold by GSPL. To
photovoltaic (PV) technology – was won by (SAW) pipes. compound the problem of low domestic
Abu Dhabi's Masdar at a bid price of 2.99 demand for pipe makers, exports too have
cents per kWh. CSP remains a more This comes at a time when capacity dwindled. These companies were earlier
expensive choice than PV, but it has its own utilisation in the six-million tonne pipe making exporting 50% of their products to US,
advantage in the form of energy storage. industry is at 35 per cent and pipe exports Mexico, Iran Saudi Arabia and Bolivia.
This will mark the first time that Dubai will have dried up with major markets like the However rising protectionism in these
use a solar thermal technology that includes US, Mexico and Iran raising trade barriers. countries have impacted to a curb exports
up to 12 hours of storage – which means that Incidentally, duty on steel plates used to from India.
solar power can be pumped into the grid make the pipes is 12.5 per cent, duty on
8 CONSTRUCTION VISION JULY-AUGUST 2017