Essar Energy plc the India focused integrated energy company announced that the first of two 255 megawatt units at its Vadinar Phase 2 power generation project in Gujarat state has been synchronized with the transmission grid.

The coal fired Vadinar P2 project, with a total 510MW capacity, is one of three power plants being completed by Essar Energy during 2012. The 1,200MW Salaya I project has already been fully commissioned and is commercially operational, while the 1,200MW Mahan I project is expected to be synchronized shortly.

Together these three projects will take Essar Energy's total installed capacity to 4,510MW.

Most of the power generated by Vadinar P2 will be sold to Essar Oil's refinery at Vadinar, which will help improve margins at the oil refinery given the relative lower cost of coal-fired generation. Some power will also be sold to Essar Steel and some sold into the merchant market.

Mr Naresh Nayyar CEO of Essar Energy said that "The synchronization of unit 1 at Vadinar P2 is another step forward for our power business and when it is commercially operational, this project will also improve margins at the refinery."

Source - Oilvoice.com

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