Indian Power Sector

Overview
alka, assistant director
PSTI, NPTI, Bangalore
July11
Power : The Building Block of
Economy

Electricity- the most imp. Infrastructural

input in the dev. & growth of economy.

Consumption of electricity- imp. Index of

advancement of the country & standard of
living.

Economic growth rate of 8-9 on a

sustained !asis is necessary for us to
catch up with the rest of the world.
""# $%
&ower &lant
Generation
'esidential
Customer
Commercial(
Industrial
Customer
'esidential
Customer
)istri!ution
&ole
*r!an
Customers
&rimary )istri!ution
++ $%
,ransmission
)istri!ution ,ransformer
-..(#./.0 $%1
2econdary 3rid
-++(.. $%1
&rimary 3rid
-""#(++ $%1
2econdary )istri!ution
*nderground Ca!le
,o 4ther
++5v
2u!stations
&46E' 272,E8 C48&49E9,2
&rimary ,ransmission-.:"(""#(/##(;+05%1
2econdary ,ransmission-++(.:"5%1
C< =>mer
-..(""#$%1
2ending end 22
<us-!ar
<us-!ar 2teel ,ower
C<
)huvaran
5aramsad
% % 9agar
3CE,
Generation :: Heart RLDC::Brain
Sub-Transmission :: Sub-Arteries
Transmission :: Main Arteries
Distribution ::
Capillaries
An Analogy Power System vs uman
An Analogy Power System vs uman
Body
Body
*2E'
Human Body
Human Body
Power System
Power System
Blood Pressure
Blood Pressure
Voltage
Voltage
Heart Beat
Heart Beat
Frequency
Frequency
The Pulse
The Pulse
72 Beats/Minutes
72 Beats/Minutes
5 !ycles/Seconds
5 !ycles/Seconds
!ause
!ause
Stress/"n#iety
Stress/"n#iety
$oad%&en'%Mismatch
$oad%&en'%Mismatch
(is)
(is)
Heart Beat *e+iation
Heart Beat *e+iation
Frequency *e+iation
Frequency *e+iation
T!e "eneration
T!e "eneration
,
,
"#N#$ATI%N

,hermal &ower &lant

?ydro &ower &lant

9uclear &ower &lant

)iesel &ower &lant

3as &ower &lant

Com!ine Cycle plant

2olar

,idal

6ind

3eothermal

<io-mass

@uel cells
Coal
Hydro

Hydro potential in North

east and upper part of
Northern Region

Coal reserves mainly in

Eastern Region

Distribution of energy
resources and consumption
centres are extremely
unbalanced

Necessitate power transfer

over long distances
#nergy $esource &a' %( India
Development of the Electricity
Industry in the last 50 yrs

,he industry has mainly developed through

2tate controlled instruments.

*ntil .9;0 A dev. mainly through 2E<s(electricity

deptts. controlled !y the respective state govts.

.9;0 A ,he Electricity -supply1 Bct was

amended. Intervention of the central govt in
development of generation facilities led to the
formation of 9,&CC 9?&C

Effect of this intervention started !eing felt in

early 8#>s.
Current Scenario in India

&ower Installed Capacity D .C;:C+:0 86

Energy 3eneration (p.a.) D ;88:00 8*

2upply )emand 3ap D 9.8 &ea$

D 8.0 Bverage

&er Capita &ower Consumption D 80# $6h

&E@ D ;0.#;
Per Capita Energy Consumption
Low per capita energy
consumption
Central
Sector:
0//." 86
State Sector:
8"/0" 86
Private
Sector:
:+;+. 86
All India:
.;:+"0 86
ALL INDIA INSTALLED GENERATION CAPACIT
As on !"
st

#arc$%&'""
SO(RCE:
CEA
)ebsite
TOTAL INSTALLED CAPACIT * "+!%,&- #)
.as on !"/'!/&'""0
MW
)*,+,*-..
,+,+1*-..
/0101
State Sector
2entral Sector
Private Sector

India has an installed power generating capacity of 173625 MW (as on 31

March, 2011) of which the theral power stations share is 112!23 MW (65")#
INSTALLED PO)ER GENERATING CAPACIT
.."C8":.##
:;C0+;.##
/C;8#
.8C/0/.##
,hermal
?ydro
9uclear
'E2
Thermal! "uclear and #ydro
Installed capacity of power plants in India
till 31
st
March, 2011 was around 173 GW of
which
her!al contri"ution is a"out #$%
&uclear pro'ides 2()% of electricity *enerated
Hydro contri"ution is a"out 21(#%
+,-ploita"le potential #0% at ).000 MW/
0enewa"les 110(#%
Electricity Demand Pro$ections
-ear
Total Electricity Required
( Billion k!r"
#nstalled Ca$acity (M"
%D& %ro't! Rate
7. /. 7. /.
200%02
()*( ()+, -).,/, -(+++-
201%07
(*,, (/-0 -,.(0* *)/.-*
220%22
(1*1 -((1 *.1/+- 0-0,00
221%27
-*+, -1.. 01).+0 /,0,01
220%22
*(-, *11) .-,)11 ,,1)+/
2ourceD Energy &olicy 'eportC &lanning CommissionC India
%rowth of India&s Power 'ector
serious growth after the +#s
%rowth of the Indian Power
'ector : INSTALLED CAPACITY

INSTALLED CAPACIT went up from..:+ 36

in .9/; to more than .+; 36 as of :......#F
capacity compara!le to *5 ( 3E'8B97.

4r a targeted 9.0 growth in the power sectorC a

capacity addition of ;8C0;; 86 has !een
proposed for the ..
th
&lan
4peration performance of power stations- salient features

Gross annual generation crossed 8## <* -8.. <*1

Gross monthly generation figure has crossed ;0 <* mar$

-;0.0 in 8ar>..1

Gross daily generation figure has crossed ".0 <* mar$

-".0#8 on .8
th
8ar>..1

Nuclear generation achieved a remar$a!le growth rate of

41.04% due to improved availa!ility of nuclear fuel

Generation from hydro based plants improved with a

growth rate of 10.01% due to revival of good monsoon
after " successive yrs of deficit rainfall conditions.
4peration performance of power stations- salient features
,hermal generation achieved a growth rate of .!1%. Coal !ased
generation achieved a growth rate of :.99.
"verage #$% of the thermal !ased plants was &'.1% as compared to
;;.+8 in "##9-.#.
' stations with an aggregate installed capacity of 0:8";.0 86
achieved #$% of national average
1( thermal stations with an aggregate installed capacity of ".990 86
operated above (0% #$%.
)perational availability of thermal stations marginally reduced to
!4.*4% from !'.10 % during the previous yr. 3rowth rate in respect
of liGuid fuel !ased 3,sC multi fuel stations as well as )3 sets had a
negative growth rate.
'easons for low &E@ compared to last year

+ncreased forced outages of plants

,nscheduled-e.tended plant maintenance of some

thermal units

%orced shut down- bac/ing down due to raw water

pro!lemsC coal shortages and receipt of poor Guality
coal

0eceipt of lower schedule from !eneficiary states.

&lant Eoad @actor

. per cent increase in &E@ effectively means

capacity addition of approx .### 86 -reGuiring
nearly 's./### Cr.1

Increasing the &E@ of 2E< plants would reduce the

cost of supply and !enefit the 2E<s.
:"
Indian Power Sector Long Term Trends
India is !
rd
lar1est econo23
"
Potentiall3 !rd lar1est electricit3 2ar4et
1loball3 53 &'!'
&
Esti2ated to be t$e 6astest 1ro7in1 econo23 In t$e 7orld b3 &'"&
&
1ource2 (1) 3orld 4an/5 (*) +nternational 6nergy )utloo/ *0075 () 0eport of 3or/ing Group on #ower for 6leventh #lan (*00&81*)
Indian Po7er Sector c$aracteri8ed b3 $u1e ener13 s$orta1es
.!0
()*+, ,E)'+"' -+, P+.E,
'E/T+, I00'

InadeGuate power generation capacityF

Eac$ of optimum utiliHation of the existing

generation capacityF

Inefficient use of electricity !y the end

consumerF

InadeGuate inter-regional transmission lin$sF

?uge ,&) losses -theft1 and s$ewed tariff

structureC ma$ing 2E<s unvia!le.
Opti2u2 utili8ation o6 t$e e9istin1
1eneration capacit3 t$rou1$ R:#
3
%ld S#B units 'er(orming at low e4ciency
due to lack o( $5& 6 'oor maintenance-
States una7le to undertake $5& 7ecause
o( (unds constraints-
3
$5& is a cost e8ective 9$s 1 2r6&: (or
t!ermal and $s 0.;1. <ak!6&: (or !ydro=
and >uick return o'tion (or increasing
generation 9new ca'acity ? $s +;, 2r6&:=-
3
11. t!ermal 911,... &:= and /, !ydel
9/,... &:= units identi@ed (or $5& 7y 2#A-
3
A. BB 9*.C o( current annual generation=
eD'ected t!roug! $5&
%rowth of Indian Power 'ector: TRANS#ISSION
SSTE#

'eGuired development of $i1$ volta1e trans2ission

s3ste2 did suffer in the early years.

)uring 8#>sC when 9,&C had the Iurisdiction of creating

?% transmission system along with their super thermal
power stationsC transmission side of the industry got a
!oost.

2u!seGuentlyC &3CIE was formed out of 9,&C and from

.99"C &3CIE has added significantly towards creation of
?% transmission system and development of the
national grid

,ransmission sector opened up for private sector

participation with the amendment of the E2 Bct in .998

Uneven distribution of power resources (coal hydeletc!"

#ransporting coal costlier than transmitting power!

$cenario of simultaneous surplus (ER" and shortage (%ther regions"

Existing interregional transmission capacity only about &&'() *+

,nade-uate inter.regional transmission lin/s
Re2ional
State
3ational
(+.)4s (+,)4s (++)4s
Local
(+/)4s
E5olution o6 %rid #nterconnection in #ndia
E5olution o6 %rid #nterconnection in #ndia
E1+02TI+" +- P+.E, '3'TE( I"
I"DI)
#06 +N96#6N96N:6 - 28BEE I24EB,E) 272,E8
#0+)0 ;) 70s - 3E9E'B,I49(,'B928I2I49 <7 2E<2
9,0+NG 70s - EI8I,E) I9,E'C499EC,I49 <E,6EE9 9EI3?<4*'I93
2,B,E2
&0s - E8E'3E9CE 4@ CE9,'BE 2EC,4' 3E9E'B,I49
- 9,&C(9?&C(9*CEEB' E,C.1
&EB99I93 4@ 3E9E'B,I49(,'B928I22I49 49
'E3I49BE <B2I2
$";6 !0s A I9,E3'B,E) 3'I) 4&E'B,I49 ,?'4*3? /##$% 272,E8
$";6 (0s - B279C?'494*2 I9,E' 'E3I49BE EI952
E493 )I2,B9CE ?%)C EI952 ( <"< 2,B,I492
Isolated systems

+solated systems developed in and around

industrial & ur!an areas

6stablishment of :6" under the Electricity

-2upply1 BctC .9/8 for coordinated
development of &ower 2ector

,he Bct also provided for formation of

1tate 6lectricity 4oards (164s) in the
2tates
'tate %rid 'ystems

,he systems around ur!an and industrial areas

grew into full fledged 1tate Grid systems

,he country was demarcated in to five 0egions for

the purpose of coordinated power sector planning

0egional 6lectricity 4oards were esta!lished in

each of the regions for facilitating integrated
operation of state systems

+nter8state lines were planned which were treated

as Centrally sponsored schemes.

,egional %rid 'ystem

.9;0D :entral 1ector generation utilities created

<enefits of these to !e shared !y the states of the region.

Construction of associated transmission system for

evacuation of power as well as delivery of power to the
constituent statesC also entrusted to these corporations

@ocus of planning and development in the transmission

system shifted from 1tate Grid system to 0egional Grid
system

<y the end of .98#Js strong regional networ/s came into

existence.
Inter ,egion 0inks

.989D #ower Grid :orporation of +ndia formed to

give thrust to implementation of transmission
system associated with Central generating
stations

few inter8regional lin/s were also planned and

developed to facilitate exchange among the
various regions -limited to emergency situations1

resource planning as well as grid operation and

conseGuently the operational fre<uencies of
various regions continued to be 0egion specific.
NEW Grid
Sout
Grid
Sout
West
Nort
East
Nortea
st
!ive "egiona# Grids
!ive !re$uencies
Octo%er &''&
East and Norteast
syncroni(ed
Marc )**+
West syncroni(ed
Wit East , Norteast
-ugust )**.
Nort syncroni(ed
Wit Centra# Grid
Centra# Grid
!ive "egiona# Grids
Two !re$uencies
Tar1et &'"&: &'' G)
ME"GING
O!
M-"/ETS
Rene7able: ";/- G)
Installed Capacit3: "+! G)
S" Sync
0y )*&+1&2
Inter 3 "egiona#
Capacity:
)) GW
"ational %rid

@ocus of planning the generation and the

transmission system shifted from the
orientation of regional self-sufficiency to
the concept of optimi=ation of utili=ation of
resources on "ll +ndia basis

B strong 9ational 3rid system would

ena!le such an all8+ndia generation
planning and development
+4$ectives underlying the
formation of "ational %rid

,o transfer power from surplus regions to

deficit regions

*tilise maximum resources from

diversified regions

Ensure relia!leC economical and Guality

power
Perspective trans2ission plan upto &'"&
Perspective trans2ission plan upto &'"&
REGIONAL GRIDS
GEOGRAPHICAL
')()) *+
01)))
23)&4 *+
2'))3 *+
2)'4) *+
&0)30
*+
&&52 *+
,nstalled 6eneration Capacity
Current 7 04' 6+
#arget for 8ear &)0&9 &)) 6+
Inter re1ional Inter re1ional
Lin4 Lin4
#) capacit3 #) capacit3
NER<ER "%&,'
ER<NR +%=!'
ER<SR> .e9cl/
Talc$er<?olar
bipole0
"%"!'
ER<)R &%=='
SR<)R "%+&'
)R<NR -%&&'
Ot$er "!& ?@
Lin4s
,''
Talc$er ?olar
H@DC 5ipole
&%A''
Total as on
date
&&%!A'
Tar1et 6or &'"& !+%+''
,ransmission 2ystem for ?ydro
development in 9E'
!'<!A G) o6 H3dro potential in Nort$<eastern
Re1ion
"' G) 6ro2 Si44i2 and 5$utan

2u!stantial power from this region would !e

reGuired to !e transmitted to 9'(6' over distances
exceeding "### $m.

'ight of way constraints in the c$ic4en nec4 area.

?y!rid networ$ of E?%)C and high capacity /##

$% BC developed.
2c3uirin* 0i*ht of Way +04W/ for constructin* trans!ission syste! is
*ettin* increasin*ly difficult( his necessitates creation of hi*h capacity
5Transmission 4igways6 , so that in future, constraints in 04W
do not "eco!e "ottlenec7 in harnessin* natural resources
!our ma5or power regions o6 te country name#y7
Nort1Eastern7 Eastern7 Western and Nortern are
now operating as one syncronous grid8
N-TION-L G"I9 :T#E )D1)"T)%E'

2,'493 <BC5<49E EANYWHERE TO ANYWHERE

,'B)I93

EC4948IC 4&E'B,I49

4&,I8BE *,IEI2B,I49 4@ 2CB'CE 9B,I49BE

'E24*'CE2

?B'9E22 )I%E'2I,7
A 2B%I93 4@ .:C### 86 <7 7EB' "#."

B))E) 2,B<IEI,7

<4*9)B'7-EE22 4&E'B,I49

?*< B9) 2&45E B''B93E8E9,

3E9E'B,4'2 ?B%E 'EB)7 E%BC*B,I49 &B,?

;>6 $%&I'$%( )*I+ 6N?+1"G69 4@ ,'W-*)*I+ +1 "
>@40+9 N6;3)0A :)B#0+1+NG " &7' /? ./0 3+;> 400
/? ": "N9 '00/? >?9: 1,'2-1
+,A ?@ RING #AIN SSTE#
#HE :%+ER ;H,6H+<8=
CHEAP HYDRO POWER FROM THE NORTH-EAST
AND PIT HEAD THERMAL POWER FROM THE
EAST ENTERS THE RING AND EXITS TO POWER
STARVED REGIONS
International Interconnections
Maps not to scale
5$utan
Nepal
#ala9 0)&) *+
Chu/ha9 ''1 *+
>urichu9 1) *+
Net import by India
,ndia. ?hutan synchronous lin/s
2)) /@ #ala.?inaguri DAC
2)) /@ #ala.*albase.?inaguri
&&) /@ Chu/ha.?irpara DAC
&&) /@ Chu/ha.*albase.?irpara
0'& /@ >urichu.?ongaigaon
%ver 01 lin/s of 0'&A''A00 >@
Radial lin/s with Nepal
Net import by Nepal
5an1lades$
-'' ?@ AC line bet7een
5a$ara2pur.India0 and
5$era2ara.5an1lades$0 7it$
A'' #) H@DC sub<station at
5$era2ara
Sri * Lan4a #adurai
.India0 and
Anurad$apura.Sri<Lan4a0
t$rou1$ BA'' ?@ H@DC
under sea cable
Control Centres

<ul$ electric power systems comprise of hundreds

of generating units interconnected !y an intricate
we! of transmission & distri!ution spread across
vast geographical stretches.

@or ensuring a relia!le and Guality supply to the

consumersC the power system must !e operated
within the prescri!ed relia!ility standards.

,he system operators positioned at well-eGuipped

control centres provide the coordination services
that are vital for operating the system within the
operating limits.
Eoad )espatch Centers in India

,he control of the grid is planned to !e

done at : levels of hierarchy namely
9E)CC 'E)C and 2E)C.

Each level of hierarchy has definite roles

and responsi!ilities
&'))
Surplus Re1ions
De6icit Re1ions
Hierarc$3 o6 Indian Po7er
S3ste2
)R
ER
NR
NER
'ole of 9E)C
RBDC
Inter 0e*ional 8in7s
9uper'ision
,cono!y and ,fficiency of &ational Grid
9chedulin* and dispatch of electricity o'er the inter:re*ional lin7s
Monitorin* of operations and *rid security of &ational Grid
0estoration of synchronous operation of &ational Grid
rans:national e-chan*e of power
;eed"ac7 to C,2 < C= for national Grid >lannin*
?isse!ination of infor!ation
NBDC
9uper'ision < control
0>C for
re*ional outa*e >lan
Coordinate
Coordinate
2ccountin*
'ole of 'E)C

0eal ti!e operation , control < contin*ency

analysis

Generation schedulin*@ re:schedulin*

0estoration

Meterin* < data collection

Co!pilin* < furnishin* of operation data

4peration of 0e*ional =I pool 2ccount(

0eacti'e ener*y account and Con*estion char*e
account

4peration of ancillary ser'ices

RBDC
,-clusi'e
functions
'ole of 'E)C
;unctions

opti!u! schedulin*
and despatch of
electricity

Monitor *rid operation

Aeep accounts of
electricity trans!itted

,-ercise 9uper'ision
and control o'er
the I99

0eal ti!e operations

8icensee

Generatin* co!pany

Generatin* station @ 9u":

stations

any other concerned person

$BDC
Central 9tate
?irections Co!ply
the
directions
2pe- "ody
for
inte*rate
d
operation
;or 9
4pen
2ccess:
&odal
2*ency
08?C
'ole of 2E)C
$BDC C <pex body in a $tate
:ower $ystem
9tate
4pti!u! schedulin* and despatch

Monitor *rid operations

Aeep accounts of electricity
trans!itted

2cti'ities of
0eal:ti!e operation

e-ercise super'ision and control

08?C
?irections
,nsure
co!pliance
?irections and
e-ercise
super'ision and
control
8icensee,
*eneratin* co!pany,
*eneratin* station,
su":station
and any other
concerned person
'ole of '&C
@acilitate the sta!le and smooth operations of the system
@unctionsD
A regional level operation analysis
A facilitate inter-state(inter-regional transfer of power
A facilitate planning of inter-state(intrastate transmission system
A coordinate maintenance of generating units
A coordinate maintenance of transmission system
A protection studies
A &lanning for maintaining proper voltages
A Consensus on issues related to economy and efficiency
0>C
08?C@98?C@C=@
9=@ =sers
?ecisions
M9 90>C shall certify 2'aila"ility
of trans!ission syste!
>repare 0e*ional ,ner*y 2ccount,
Wee7ly =I, 0eacti'e < Con*estion
char*e account
##
'ole of C,*
to underta7e
trans!ission of
electricity throu*h
I99
to ensure de'elop!ent
of an efficient, co:
ordinated and
econo!ical I99
C#U
08?C
shall operate
I99 lines
C=@to pro'ide non:discri!inatory 4pen 2ccess
1 Will not en*a*e in tradin* and *eneration
1 ;or 842 < M42 nodal a*ency
>lannin*
9=
Central
Go't(
9tate2
9tate1
9tate Go't(
Generatin*
Co!panies
C,2
0>C
8icensees
'ole of 2,*
to underta7e
trans!ission of
electricity throu*h
intra:state trans!ission
syste!
to ensure de'elop!ent
of an efficient, co:
ordinated and
econo!ical intra:state
trans!ission syste!
$#U
98?C
shall operate
Intra:state trans!ission syste!
9=@to pro'ide non:discri!inatory 4pen 2ccess
>lannin*
C=
9tate Go't(
Generatin*
Co!panies
C,2
0>C
8icensees
#)
CT(
Identification of maIor
inter state(regional lines including
system strengthening schemes
&lanning schemes shall also considerD
CEB>sD
Eong-term perspective plan
Electric &ower 2urvey of India report
,ransmission &lanning Criteria and
guidelines
'&C @eed!ac$
9E)C('E)C(2E)C feed!ac$
CE'C 'egulations
'enewa!le capacity addition -89'E21
<nnual plan +$ year forward ter!/
C,2
Bong.term plan +10:1$ years/
inter@intra state trans!ission syste!

continuously updated to reflect

load proBections and *eneration scenarios
&,>
2'oid con*estion
'ole of CEB

will for!ulate short:ter! and perspecti'e plans for trans!ission syste!

specify technical standards for construction of electrical plants, electric lines and
connecti'ity to the *rid

specify safety re3uire!ents for construction, operation and !aintenance of

electrical plants and electrical lines

specify *rid standards for operation and !aintenance of trans!ission lines

specify conditions for 9,Ms

>ro!ote and assist ti!ely co!pletion of sche!es

o collect and record electrical data: cost, efficiency

o carry out in'esti*ation + ,lectrical syste!/

$hall :repare National Electricity :lan (NE:"

,egulatory Environment
Institutional Cra2e7or4
Central Po7er Or1ani8ation
ND:C N#:C
NH:C
NEE:C%
:B<NN,N6
C%**,$$,%N
NR?
<EC N:C
*,N,$#R8
%E :%+ER
$#<#E
6%@ERN*EN
#
DE:#! %E
<#%*,C
ENER68
N<#,%N<B
DE@EB%:*EN#
C%UNC,B
*NE$
ENER68
*<N<6E*EN#
CEN#RE
N:#,
C:R,
6%@ERN*EN#
%E ,ND,<
:EC
REC
:6C,B #HDC
CEN#R<B
EBEC#R,C,#8
<U#H%R,#8
D@C
??*?
CERC
Po7er Sector Institutions .Pre "=='0
Institution Cunctions
CEA "=A' Arbitration% Advice% Po7er Polic3
CPRI "=,' Po7er En1ineerin1 Researc$
EDuip2ent Testin1 and Certi6ication
REC "=,= Cinance and Plannin1 6or Rural Electri6ication
#OEC "=+- Polic3% Le1islation
NTPC "=+A T$er2al Po7er Generation
NHPC "=+A H3dro Po7er Generation
PCC "=;, Cinance 6or Po7er ProEects% T:D and Renovation
PGCIL "=;= Re1ional Grid #onitorin1% Trans6er o6 Po7er%
Trans2ission Line Construction
E#C "=;= Ener13 Conservation In6or2ation%
Researc$%Trainin1
+rganisation 'tructure

84& in the *nion 34I

CEB as the 2tatutory technical wing of the 84&C 34IC to

assist in overall planningC coordination & regulation of
power development programmes of the country.

B no. of corporations under 34I to develop and operate

power stations which include 9,&CC 9?&CC 9EE&C4
etc.

'ECC a 34I company for assisting the 2E<s in the

development & programmes of rural electrification.

&3CIEC under 34I to esta!lish & maintain ?%

transmission system and regional load despatch centres.
+rganisation 'tructure
5contd6

&@C under 34I to assist the various E<s &

other organisations in the power sector.

)epartment of Energy(&ower under various

state goverments.

2E<s under respective state governments to

ta$e care of generation of thermal and hydro
power as also transmission & distri!ution within
their own states. 2ome of the state governments
have also set up power generation corporations.

&rofessional organisations li$e C&'IC 9&,IC

Energy 8anagement CentreC Council of &ower
*tility etc.
State Po7er Or1ani8ation
:R,@<#E
$EC#%R
B,CEN$EE$
$#<#E
EBEC#R,C,#8
?%<RD$
$#<#E
EBEC#R,C,#8
DE:<R#*EN#$
$#<#E
EBEC#R,C,#8
,N$:EC#,%N
%R6<N,$<#,%N
*,N,$#R8 %R
DE:<R#*EN# %E
:%+ER
$#<#E
6%@ERN*EN#
$ERC
Te Indian E#ectricity -ct7
&'&*

&rovided !asic framewor$ for electric supply

industry in India.

3rowth of the sector through licensees. Eicense

!y 2tate 3ovt.

&rovision for license for supply of electricity in a

specified area.

Eegal framewor$ for laying down of wires and

other wor$s.

&rovisions laying down relationship !etween

licensee and consumer.
Te E#ectricity :Supp#y; -ct7 &'2<

8andated creation of 2E<s.

9eed for the 2tate to step in -through

2E<s1 to extend electrification -so far
limited to cities1 across the country.
Main amendments to te Indian
E#ectricity Supp#y -ct
3
Amendment in 1A1, to ena!le generation
in Central sector.
3
Amendment in 1AA1 to open generation to
private sector.
3
Amendment in 1AA) to provide for private
sector participation in transmissionC and also
provision relating to ,ransmission *tilities.
Te E#ectricity "egu#atory
Commission -ct7 &''<

&rovision for setting up of Central ( 2tate

Electricity 'egulatory Commission with
powers to determine tariffs.

Constitution of 2E'C optional for 2tates.

)istancing of 3overnment from tariff

determination.
Energy Conservation -ct7 )**&

,he Bct primarily ensures energy efficiency in

consumption & conseGuently )emand 2ide
8anagement -)281 for reducing need for installing
new capacity.

5ureau o6 Ener13 E66icienc3 .5EE0 has !een set up

on .st 8archC "##" for formulating norms for
processesC consumption standardsC testingC
certification and la!eling procedures etc.
E#ectricity -ct )**+
It is a comprehensive legislation replacing #lectricity
Act 1A1., #lectricity Su''ly Act 1A+) and
#lectricity $egulatory 2ommission Act 1AA).
,he aim is to push the sector onto a traIectory of
sound commercial growth and to ena!le the 2tates
and the Centre to move in harmony and coordination.
,he o!Iective is to introduce com'etition, 'rotect
consumers interests and 'rovide 'ower (or all-
E#ectricity -ct )**+
,he Bct provides for 9ational Electricity &olicyC
'ural ElectrificationC 4pen access in
transmissionC phased open access in
distri!utionC mandatory 2E'CsC license free
generation and distri!utionC power tradingC
mandatory metering and stringent penalties for
theft of electricity
Indian &ower 2ector- &re and &ost EB "##:
Salient (eatures o( t!e National #lectricity
Policy

Bccess to Electricity D Bvaila!le for all households in next five

years.

Bvaila!ility of &ower D )emand to !e fully met !y "#.". Energy

and pee$ing shortages to !e overcome and spinning reserve to
!e availa!le.

2upply of 'elia!le and Kuality &ower of specified standards in

an efficient manner and at reasona!le rates.

&er capita availa!ility of electricity to !e increased to over .###

units !y "#.".

@inancial ,urnaround and Commercial %ia!ility of Electricity

2ector.

&rotection of consumersJ interests.

4!Iectives of 9ational ,ariff &olicy

Ensure availa!ility of electricity to

consumers at reasona!le and competitive
rates

Ensure financial via!ility of the sector and

attract investments

&romote competitionC efficiency in

operations and improvement in Guality of
supply
"eneration

,o provide availa!ilty of over .### units of

per capita electricity !y "#.#C more than
.C##C### 86 wld !e reGuired during "##"-
.".

9o reGuirement of licensing for generation.

,echno-economic clearance for thermal
generation proIect no longer reGuired.@or
hydro generationC concurrence of CEB
reGuired only a!ove certain capital
expenditure. Captive generationC freed
from all controls.
Transmission

2imultaneous planning of adeGuate

transmission capacities to avoid mismatch
!etween generation and transmission
facilities.

9on-disriminatory 4pen Bccess in

transmission introduced to promote
competition.
Fistri7ution

'eal challenge of reforms lies in the efficient

management of the distri!ution system.

&rivate sector participation in distri!ution to !e

encouraged.

Energy BuditsC energy accounting and

declaration of results to !e made mandatory.

?%)2 to !e introduced.

2tringent measures against theft of electricity.

E#ectricity :-mendment; -ct7 )**=
,he Electricity -Bmendment1 BctC "##;C amending certain
provisions of the Electricity BctC "##:
,he main features of the Bmendment Bct areD

Central 3overnmentC Iointly with 2tate 3overnmentsC to

endeavour to provide access to electricity to all areas including
villages and hamlets through rural electricity infrastructure and
electrification of households.

9o Eicense reGuired for sale of electricity from captive units.

)efinition of theft expanded to cover use of tampered meters

and use for unauthoriHed purpose.

,heft made explicitly cogniHa!le and non-!aila!le.

)eletion of the provision for elimination of cross su!sidies. ,he

provision for reduction of cross su!sidies would continue.
-CCELE"-TE9 POWE" 9E>ELOPMENT -N9
"E!O"MS P"OG"-MME
,he Bccelerated &ower )evelopment 'eforms &rogramme
-B&)'&1 was launched in "##"-#: for implementation in
the .#th &lan as additional central assistance to the states
for strengthening and up gradation of su!-transmission and
distri!ution systems of high-density load centres li$e towns
and industrial areas.
,he main o!Iectives of the programme were to reduce
";C: loss and to improve <uality and reliability of supply.
(p1radation F Stren1t$enin1 o6 sub<
trans2ission and distribution s3ste2
3
GiD Static meters on all T and <T
consumers and !ig! accuracy tam'er
'roo( meters (or ot!er consumers-
3
"et #nergy audit conducted (or all
distri7ution circles and su7 divisions-
3
Introduce time o( t!e day metering (or
T and <T consumers-
0"D+? G"N9>+ G0"B66N ?+9@,;+A"0"N
@)D"N"(0GG?@) )% 0,0"$ 6$6:;0+:+;@
+N%0"1;0,:;,06 C >),16>)$9 6$6:;0+%+:";+)N
Eaunched on /th BprilC "##0 for the attainment of the 9ational
Common 8inimum &rogramme -9C8&1 goaI for providing
access to electricity to all households in the country in five
years.

Rural Electri6ication Corporation .REC0 is the nodal agency
for the scheme.
*nder the scheme 9# capital su!sidy would !e provided for
overall cost of the proIect for provision ofD
'ural Electricity )istri!ution <ac$!one -'E)<1 with at least one
::(.. $% -or ++(..$%1 su!station in each !loc$
%illage Electrification Infrastructure -%El1 with at least one
distri!ution transformer in each village(ha!itation.
)ecentraliHed )istri!ution 3eneration -))31 2ystems where
grid supply is either not feasi!le or not cost-effective.
Legis#ative?administrative Initiatives ta@en %y te Legis#ative?administrative Initiatives ta@en %y te
Government to improve te ea#t o6 Power Sector Government to improve te ea#t o6 Power Sector
:recap; :recap;
3
#lectricity $egulatory 2ommissions Act, 1AA)-
3
#lectricity <aws 9Amendment= Act, 1AA) to (acilitate
'rivate investment in transmission-
3
Bltra &ega Power ProHects 9B&PPs=
3
Setting u' o( Power Trading 2or'oration-
3
Fevelo'ment o( merc!ant 'ower Plants
3
New ydel Policy to 'rovide t!rust to ydro ca'acity
addition-
3
Accelerated Power Fevelo'ment 5 $e(orms Programme
3
#nergy 2onservation Act in 'lace
3
#lectricity Bill *..1 ta7led in Parliament
3
Settlement o( %utstandings o( PSBs wit! States
3
Private 'artici'ation in transmission
3
Fevelo'ment o( transmission 'roHects t!roug! com'etitive
7idding
&ower 2ector A 'eforms to )rive 3rowth

Losses o6 SE5Gs

Irre1ularit3 o6 pa32ent to Suppliers

Cape9 planned i2pacted

Acute S$orta1e

Cocus on Generation

T:D Losses

Settle2ent o6 SE5Gs dues

Electricit3 Act% &''!

APDRP .Accelerated Po7er Develop2ent and Re6or2s

Pro1ra20

AREP .Accelerated Rural Electri6ication Pro1ra20

Po7er Tradin1

Risin1 role o6 Private Sector

Increased proEect si8e .(ltra #e1a Generation

: Trans2ission ProEects0

Ne7 tec$nolo1ies

T$rust on H3dro and Nuclear

PRE@IO(SL PRE@IO(SL
RECOR#S RECOR#S GOING COR)ARD GOING COR)ARD
Strengts and opportunities in te
sector

B!undant coal reserves -enough to last at least

"## years1.

%ast hydroelectric potential

Earge pool of highly s$illed technical personnel.

Impressive power development in a!solute

terms -compara!le in siHe to those of 3ermany
and *51.

Expertise in integrated and coordinated

planning -CEB and &lanning Commission1.
Strengts and opportunities in te
sector :contd8;

Emergence of strong and glo!ally compara!le

central utilities -9,&CC &46E'3'I)C1.

6ide outreach of state utilities.

Ena!ling framewor$ for private investors.

6ell laid out mechanisms for dispute

resolution.

&olitical consensus on reforms.

&otentiallyC one of the largest power mar$ets in

the world.
POWE" SCEN-"IO IN IN9I-
INCREASING ROLE
OC PRI@ATE
PARTICIPATION
LI5ERALISATION
CRO# GO@ERN#ENT
H(GE LOSSES IN
TRANS#ISSION
AND PILCERAGE
5OO#ING ENERG
DE#AND
T$an4 3ouH