POWER

India being growing economy, and is increasingly a significant consumer of oil and natural gas. With high economic growth rates and over 15 percent of the worlds population, India is a significant consumer of energy resources. In 2009, India was among the largest oil consumers in the world. IEA data for 2008 indicate that electrification rates for India were nearly 65 percent for the country as a whole. In urban areas, 93 percent had access to electricity compared to rural areas where electrification rates were approximately 50 percent.

Sector
State Sector

Mega watt
80,849.12

Percentage
52.5

Central Sector
Private Sector

51,727.63
31,932.05

34.0
13.5

Total

1,64,508.80

Fuel Total Thermal

Coal Gas Oil Hydro (Renewable)

Mega Watt
106432.98 87,858.38 17,374.85 1,199.75 37,086.40

Percentage
64.6 53.3 10.5 0.9 24.7

Nuclear
RES** (MNRE) Total

4,560.00
16,429.42 1,64,508.80

2.9
7.7

Renewable Energy Sources(RES)

Majority of Generation, Transmission and Distribution capacities are with either public sector companies or with State Electricity Boards (SEBs). Private sector participation is increasing especially in Generation and Distribution.

Electricity Act 2003 The Act was introduced to consolidate and govern the various elements of the power industry. Generation
Anyone or entity can start generation without prior approvals from government except for hydro power. Any entity can create captive generation plant (CGP) for producing electricity for its own use

 Policy

Issues

Central government in consultation with state government will prepare, publish and revise National Electric Policy and Tariff Policy.
Rural

Electrification/Generation/Distribution

GOI will reform national electric policy after consulting with state government and CEA to govern. i. Rural electrification and distribution through local bodies. ii. Rural off grid supply

 Licensing

Separate license required for i. Trading ii. Transmission and Distribution Government and other local bodies (if recommended by ERC) exempted from license requirements.
Regulatory

Commissions

Mandatory to establish SERC for each state. Joint commission can be considered for two or more states. (1)To be guided by National Electric policy, Plan and Tariff policy. (2)Functions to include-Specifying grid code, supply code, levy fees, fix trading margins for trading etc.

 Ultra

Mega Power Policy

Ultra Mega Power Projects are very large sized projects, approximately 4000 MW each involving an estimated investment of about Rs. 16,000 crore. These projects are exempted from custom duties, excise and central levies. Three sites already awarded to Reliance Power and forth recently to TATA Power.

Total village electrification in 5 years. Power for All by 2012 A comprehensive Blueprint for Power Sector development has been prepared encompassing an integrated strategy for the sector development with following objectives:a) Per capita availability 1000 units b) Installed capacity over 200,000 MW c) Spinning reserves 5% d) Minimum lifetime consumption of one house hold per day. e) Inter regional transmission capacity 37000 MW f) Quality and reliable power supply.

Major measures included in the tariff policy includes: Tariff of all generation and transmission projects in private sector by competitive bidding. Emphasis on distribution level open access; clear computation of cross subsidy surcharge; Transmission tariff sensitive to direction and distance. Strict implementation of performance standards. Time bound introduction of Multi-Year-Tariff structure. Measures to stop theft of power and to reduce transmission and distribution losses are being planned to improve the revenue generation of the state electricity boards (SEBs), which are the main suppliers of power to consumers. Many states have formulated Captive Power Policy in order to support their domestic industries.

The eleventh plan target for additional power generation capacity is 78800 MW. Rs 800 crore has been provided in 2008-2009 for the accelerated power development and Reforms project. The Govt has adapted new programme- the Accelerated Power Development Programme (APDP) through which it will provide funds to state electricity boards for renovation and modernisation of older power projects. Govt has approved the continuation of the Rajiv Gandhi Grameen Vidyuthikaran Yogana during the Eleventh plan period with a capital subsidy of Rs.28000 crore

Large demand-supply gap: All India average energy shortfall of 7% and peak demand shortfall of 12%. Opportunities in Generation for: Coal based plants at pithead or coastal locations (imported coal) Natural Gas/CNG based turbines at load centres or near gas terminals Hydel power potential of 150,000 MW is untapped as assessed by the Government of India Renovation, modernisation, up-rating and life extension of old thermal and hydro power plants Opportunities in Transmission network ventures - additional 60,000 circuit km of transmission network expected by 2012. Opportunities in Distribution through bidding for the privatisation of distribution in thirteen states that have unbundled/corporatized their State Electricity Boards expected to take place over the next 2-3 years. Total investment opportunity of about US$ 200 billion over a seven year horizon.