Indian Infrastructure

Power Sector

Zalak Dave
Sagar Desai
Saurabh Gupta
Kavan Raval
Major Challenges Facing the Power
Sector Industry
• Growing Demand
• Modernization of infrastructure
• Rising Costs and Prices
• Climate Change
• Customer Expectations
 What is required to respond to
these challenges?
• Investments in the “Smart Grid”
• Focus on energy efficiency
• Cleaner generation technology
• New business and regulatory models
Investment in “Smart Grid” electricity
infrastructure will be needed….

Efficient
Utility Building
Communications Systems
10
Internet
% Renewables
65
Consumer Portal 17
and Building EMS %
PV
%
Distribution
Dynamic Operations Advanced Control
Systems Metering Interface
Control

Plug-In Hybrids

Distributed Smart
Data Generation End-Use
Management and Storage Devices
 …. and the infrastructure needed to
support deployment of energy efficiency.
 Electricity Demand and Supply in
India
 India is facing energy shortages of India’s Installed Capacity
11% of demand and even higher (132,329 MW)
peak shortages of 14%

 Demand-supply gap is more acute in 6%

3%
Western region (where 70% of the 55% Coal & Lignite
Project’s power will be supplied)
with energy deficit at 16% and peak Gas
deficit at 21% 26%
Hydro

 Capacity additions of 160,000 MW Nuclear

required in the next 10 years to
Other
satisfy India’s power needs Renewables
10%

 New capacity will need to come

from a combination of coal, hydro,
gas, nuclear and wind projects
 Power Sector

 Installed generation capacity 112 GW

 Total generation 531 billion units

 CAGR 5.8%

 Per capita consumption 355 kWh

 T&D network 5.7 million circuit kms

 Energy power deficit 9%

 Peak power deficit 12%

 Growth Potential

 Investment of US$ 90 billion in T&D

infrastructure

 Addition of 100,000 MW by 2012

Generation Capacity Composition

Total Generation Capacity

Nuclear Power
3%

Hydro power & wind power

28%
Installed capacity Thermal
targeted to double by 69%
2012
 Domestic Players

Public Sector Generation Transmission Distribution

DVC  
NEEPCO 
National Hydro Power (NHPC) 
Nuclear Power (NPC) 
National Thermal Power(NTPC) 
BBMB 
Power Grid (PGCIL) 

Private Sector
Reliance Energy  
RPG Group  
Tata Power   
Torrent  
 Foreign Investments

Foreign Major Investment Capacity

(MW)

CLP Gujarat PEC 655

PSEG & PNP Power 330

Marubeni Generation
Corporation Company Ltd
Marubeni BPL Power 520
Corporation Projects

CMS Energy GVK Industries 235

Doosan Heavy NTPC 660

Industries and
Construction
Generation Opportunities

By 2012 demand
for electricity to double

Investment
requirement of
US$ 200 billion by
2012
100,000MW
Additional generation capacity required

21% private sector capacity addition

 Private Power Policy

 36 projects commissioned in 7000 MW

private sector

3000 MW
 Another 6 projects underway

 55 projects under various

27,800 MW
stages of development
 Transmission & Distribution
Opportunities

Transmission US$ 16 bn investment

required by 2012*

US$ 5 bn private investments

through ITPCs and JVs

Imminent private sector

participation in AP & Karnataka
Distribution
Opportunities in power
distribution companies
Indian achievement

Sixth in world electricity generation

and
third in Asia - Pacific (2002)

Share in world electricity generation

increased
from 2.4% (1994) to 3.6% (2002)
Current technology will not get us
to where we need to be…

Where today’s technology

will take us

Where more advanced versions of

current technologies will take us

Path we need to be on to
stabilize atmospheric CO2 at 450 to
550 ppm
 Renewable Energy

 Hydel
 Wind Power
 Bio­Mass Projects
Public Private Interface

Public Sector
Tata Mundra Project, India
 Development Impact
 Access to electricity is essential for reduction in poverty and improved health, education and
economic development
 Project will increase India’s generation capacity by 3%; likely to impact about 16 million
domestic consumers in the country and, hence, in line with our “inclusive” growth strategy for
infrastructure
 Creation of 5,000 construction jobs and 700 jobs during operations

 Project will sell competitively-priced power at US 5.65 cents per kWh and provide affordable
energy to consumers
 First private sector project in India using supercritical technology; most energy-efficient plant
in India (40.5%) compared to existing assets (about 27%) & therefore lower GHG emissions
 Project’s tax transfers of about US$790 million
 Growth in port and power transmission capacity will further create infrastructure and
employment for the country
 Conclusion
 There is a general consensus among all political
parties for reform
 Bulk of the infrastructure is still controlled by
Governments
 Private sector has done reasonably well in areas
where they are operating viz., Telecom, Healthcare,
Education, Tourism, Transport and Airlines
 Ultimately consumer benefits - Government gets its
revenue due to increase in volumes
 PPP(public private partnership) model is one of the
solutions where one can create a win-win situation