PRESENT POWER INDUSTRY SECNARIO
Power industry restructuring, around the world, has a strong impact on Asian power industry as well. Indian power industry restructuring with a limited level of competition,since 1991, has already been introduced at generation level by allowing participation of independent power producers (IPPs). The new Electricity Act 2003 provides the provision of competition in several sectors. It is felt that the prevailing conditions in the country is good only for wholesale competition and not for the retail competition at this moment. A suitablemodel is suggested based on the current and future market participants.With the world population nearly doubling in the past three decades, the present surge inelectricity demand, and the projected increase of the global population, the importance of available energy cannot be underestimated.In India, the burning of coal accounts for approximately one half of all electricitygeneration, nuclear energy approximately one fourth of all electricity generation, and hydro,and gas roughly ten percent of the total electricity generation. Globally, India is presentlypositioned as the eleventh largest manufacturer of energy, representing roughly 2.4% of theoverall energy output per annum.Usually energy, especially electricity, has a major contribution in speeding up the economicdevelopment of the country. The existing production of per capita electricity in India isaround 600 kWh per annum. Ever since 1990s, India’s gross domestic product (GDP) hasbeen increasing very rapidly and it is estimated that it will maintain the pace in the next couple of decades. The rise in GDP should be followed by an increase in the expenditure of key energy other than electricity.