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POWER SECTOR
26 July 2010
By Arjun Srivastav
POWER SECTOR
India has the fifth largest generation capacity in the world with an installed
capacity of 152 GW as of September 2009, which is about 4 % of global power
generation.
The Indian government has set ambitious goals in the 11th plan for power
sector owing to which the power sector is poised for significant expansion.
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FOCUS SECTOR - POWER
Contents
Overview of the sector
Snapshot of Power Generation Industry
Snapshot of Power Transmission Industry
Snapshot of Power Distribution Industry
Major Players
Overview of the Power Sector
The Challenge
India needs to sustain an 8% to 10% economic growth rate, over the next 25 years, if it is to
eradicate poverty and meet its human development goals.
To deliver a sustained growth rate of 8% through 2031-32 and to meet the lifeline energy
needs of all citizens, India needs, at the very least, to increase its primary energy supply by 3
to 4 times and, its electricity generation capacity/supply by 5 to 6 times of their 2003-04
levels.
Favorable Trends
Rapid and progressive evolution
Capacity Augmentation
Conventional capacity 9585 MW during 2009-10 ( 2.5 times higher than the
previous year)
Productivity of power plants has been improving
Pvt. projects aggregating over 100,000 MW are under various stages of development
Power Finance Corporation ( PFC) is the nodal agency for these projects
sector utilities in Feb 2010 to procure supercritical equipment only from domestic
manufacturers to encourage indigenous manufacturing
More than 500 MW of solar photovoltaic plants and 350 MW of solar thermal are in
the pipeline
Nuclear Power Corporation of India has commissioned two new reactors of 220
Plans are also on for setting up imported reactors in various sites in India
Govt. plans to increase installed nuclear generation capacity from current 4560 MW
Emphasis is also on enhancing gas and wind based power generation and Govt. is taking
a series of steps in this direction
Challenges faced by the Power Generation Sector
Delays in securing clearances and commitments from state utilities for power purchase &
Favorable Trends
Significant Investments at Central and State Level
( 800KV and 770 kv ) over the next 5 years – investment of Rs. 489 billion – to
facilitate smooth transmission of about 55,000 MW of capacity that is proposed to
be generated by private power plants in the states of Chattisgarh , Orissa and
Jharkhand
2 more transmission corridors are expected to be developed by CTU to wheel power
from coastal Tamil Nadu , where private projects based on imported coal are coming
up . For this , Powergrid has signed long term transmission agreements with 37
private developers for a gross combined generation capacity of over 42,000 MW
Development of Transmission Systems by Private Players
Transmission systems associated with private generation projects are being
developed by private players independently or in joint venture with the CTU and
STU
This includes Adani Power’s Rs. 15 billion dedicated 1000km long bi-polar 500
KV high voltage direct current line from its Mundra Project in Gujrat to
Mohindergarh in Haryana.
The company is also developing a 765 KV line in joint venture with Mahatransco in
Maharashtra to secure evacuation of power from its upcoming power plant in the
state
100% Private Investment invited for Transmission Projects
India’s distribution infrastructure include more than Rs. 6.9 million ct. km of lines and
over 284,365 MVA of distribution of transformer capacity as of march 2008
It is growing at a rate of 2.07% and 7.65% respectively over the period of 2002-03 and
2007-08
Favorable Trends
consumer satisfaction
It will be implemented in two parts – Part A ( Rs. 400 billion) and Part B ( Rs. 100
billion)
Part A – establishment of baseline data and IT applications for enegery accounting
Technical issues
Dilapidated networks
Inadequate metering