Energy overview Introduction India is home to 16 per cent of world population and although per capita energy consumption

in India is 244 kilogram of oil (kgoe) (1994 figures) as compared to world average of 1471 kgoe, its total commercial energy requirements are estimated to be of the order of 225 mtoe. Nearly 60 per cent of energy requirements are met by coal, which is available in abundance but is of a poor quality. Thirty per cent of commercial energy requirements are met by petroleum products, nearly 7.5 per cent by natural gas and 3.5 per cent by primary electricity. It is believed that a huge amount of energy requirements, perhaps not properly estimated is met by non commercial fuels like fuel wood, animal waste and agricultural residue. According to one estimate traditional energy sources account for 40 per cent of the total energy consumption in the country. Increasing pressure of population and increasing use of energy in agriculture, industry and the domestic and public sectors is an area of concern. At the same time, the need to meet energy demand has created huge capital requirements needed for setting up power plants, pipelines, ports, terminals, railway tracks to move fuel etc. Reference: POWER OVERVIEW Introduction Electricity is one of the most vital infrastructure inputs for economic development of a country. The demand of electricity in India is enormous and is growing steadily. The vast Indian electricity market, today offers one of the highest growth opportunities for private developers. Since independence, the Indian electricity sector has grown many fold in size and capacity. The generating capacity has increased from a meager 1362 MW in 1947 to more than 91000 MW till date, a gain of more than 60 times in capacity addition. Electricity generation in 1997-98 was 420.6 billion kWh. Nearly 80 per cent of India's electricity is produced in thermal facilities using coal or petroleum products. 17.7 per cent electricity is generated by hydroelectric facilities, and 2.3 per cent electricity is produced in nuclear power plants. In 1947, only some urban areas had transmission and distribution network, toataling nearly 30,000 circuit kms. By 1970, about 1.1 million circuit kilometers (CKM) of T&D lines had been set up. Today it is of the order of over 5 billion circuit Kms. In its quest for increasing availability of electricity, the country has adopted a blend of thermal, hydel and nuclear sources. Out of these, coal based thermal power plants and in some regions, hydro power plants have been the mainstay of electricity generation. Oil, natural gas and nuclear power accounts for a smaller proportion. Of late, emphasis is also being laid on nonconventional energy sources i.e. solar, wind and tidal. Power Shortage The power sector has been characterised by shortage of supply vis-à-vis demand. In 1990-91, the country faced peaking shortage of around 16% and energy shortage of about 8%. The position has worsened with peaking shortage of 18% and energy shortage of about 12% at the end of 8th Plan (1997) since capacity addition during the 8th Plan (1992-97) was much below the target.

098 Available (billion kWh) 246.113 60.33 7.330 76.979 35.045 9.31 16.056 Available 37.560 266.576 20. INSTALLED CAPACITY(MW) Year March 1992 March 1993 March 1994 March 1995 March 1996 March 1997 Thermal 48.875 57.744 MW by March.830 48.49 18.225 2.805 54.005 2.369 58.072 22.294 85.005 48.045 365.530 60.87 7.824 299.171 83.376 55.834 9.058 (%) 15.836 52.744 . 1997 and is currently more than 91000 MW.194 19.833 20.721 413.590 26.749 54.252 352.477 7.281 354.97 11.80 8.09 9.986 21.266 323.260 389.442 23.ENERGY SHORTAGE Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 Demand (billion kWh) 267. This increased to 85.984 44.877 Hydro 19.908 (%)(billion kWh) 7.900 286.821 10.753 81.2* Installed Capacity At the commencement of the 8th Five Year Plan (April 1992).981 63.027 41.494 327.79 20.676 47.632 288.005 2.785 2. the total generation capacity was 69.542 25.083 61.190 Shortfall 21.225 Total 69.35 7.066 49.758 24.51 8.075 MW.464 11.15 11.642 Nuclear 1.432 279.035 52.379 20.490 313.225 2.6* PEAKING SHORTAGE Year 1990-91 1991-92 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 Demand 44.008 10.53 18.998 Shortfall 6.145 11.853 63.086 50.065 72.28 17.974 305.45 18.171 39.

Captive Generation As of March 1996. The likely benefits in terms of extra peaking capacity and energy to be realized through R&M are estimated to be more than 6000 MW. Perspective Plan The growth of the economy calls for a matching rate of growth of the power infrastructure. with . More than half of the existing captive power capacity was added in the 1980s. Captive units in industries are used to supplement the power drawn from the grid and as stand by in case of power cuts.653 MW hydel units. about 50% of it from the sugar industry. Central Electricity Authority (CEA).13 22. Paper. Yearwise details of the T&D losses for the last four years are given below: Year 1993-94 1994-95 1995-96 1996-97 T&D Losses (%) 21. commercial and agricultural users. Petrochemical. All India figures were alarmingly high in excess of 23% up to 1996-97.41 21. In order to support a sustained high rate of growth of GDP of nearly 6 per cent per annum. Against a normal T&D losses of 8 to 10%.41 Renovation & Modernisation Of the installed capacity of about 85.889 MW in Industry and Railways. This does not include captive units of less than 1 MW capacity in industry and the large numbers of DG Sets in operation as standby for domestic. 34057 MW is covered under ongoing R&M program.744 MW as on March 1997.27 23.404 MW are thermal units and 9.0 kWh during 1989-90. A reduction in T&D losses by 1% would result in saving in capacity of about 800 MW. Per Capita Consumption The per capita consumption of electricity for the country as a whole is 335. Other major sources are the Fertilizer. It is a matter of concern as well as potential for saving. iron and steel industries. which may reduce the demand supply gap. demand for power is expected to grow at around 9% annually. Cement. similar spurt is expected in the next half decade also.42 kWh during 199596 as against 238. the country had installed captive generation capacity of 11. Of these 24. With the looming power shortages.Transmission & Distribution Losses Transmission and Distribution losses in India are very high. Co-Generation The additional co-generation potential in the Indian industrial sector has been estimated at 65008000 MW.

944 participation of SEBs have assessed the energy and peaking demand as given below:ENERGY AND PEAKING DEMAND 1998-99 ENERGY DEMAND(Billion kWh) PEAKING DEMAND(MW)ANNUAL LOAD FACTOR (%) 469. Based on the capacity addition requirements.250.820 54.757 67. .76 143 (1)Includes funds for advance action on Plan Projects. The requirement of funds for the transmission and distribution component would be about 60% of the funds requirement for generation: FUNDS REQUIREMENT Plan 9th Plan 10th Plan 11th Plan Total Capacity to installed (MW) 52.10. For T&D components.000.936 67. funds required for the generation component of the National Power Plan have been assessed and are shown below.593 MW. 43528 MW capacity of thermal plants and 880 MW capacity of nuclear plants.000(2) 16.000. This would include 8413 MW capacity of hydro plants.000(1) 1. 4.250. projects totalling to 52820 MW have been identified as the need based requirement in the 9th Plan (1997-2002). CEA has prepared a National Power Plan in 1996-97 covering the 15 year period up to the end of the 11th Plan (2007-12).000(1) 2. (2) In addition.65 95.000 million (US $ 240 bil) for the power sector.83 2001-02 569.52 29.000 53.06 78. about Rs.000 millions would be required totaling Rs.16 Based on the 15th Electric Power Survey.91 2006-07 781.000. 1.57 59.000 millions would be needed for advance action for 12th Plan projects. Rs. In the Plan.593 153.370 MW and the capacity addition needed during the 11th Plan would be 55.370 55. US $ (bil) Millions) 2.783 be Funds generation component (Rs. The capacity addition needed during the 10th Plan could be 45.86 130.500.

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