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Energy Crisis in India and Its Impact On Indian Economy

PGDM (2012-2014) Div: A Group 4:Mansi Kothari PG12031 Ankur Rambhia PG12033

Energy
Indispensable prerequisite Forms of energy Transformedinto another form

Crisis
Unstable and dangerous situation Negative changes Testing time' or Emergency event'

Energy Crisis
Bottle neck in supply ofenergyresources Power / Electricity Supply < Demand

Indian Power Sector


Most diversified sector 6th largest energy consumer 3.4% of global energy consumption Energy demand 3.6% p.a. over the past 30 years Sources for power generation Increasing requirement of electricity

Demand and Supply


Demand Supply gap in electricity
140000 120000 108866 109809 100715 100000 MW 80000 60000 40000 20000 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 0 Years PEAK DEMAND (MW) PEAK SUPPLY (MW) #REF! 127724 119166 122287

Requirement and Availability

Requirement Availability gap in energy


1000000 774324 800000 690587 705724 MU 600000 400000 200000 0 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 Years ENERGY REQUIREMENT (MU) #REF! ENERGY AVAILABILITY (MU) 830594 861591 694780

Indian Power Sector contd...

Total installed capacity for electricity generation


16,271 MW as on 31.03.1971 206,526 MW as on 31.03.2011

Increase in generating capacity


18654 MW over the last one year

11.3% growth from 2009-10 to 2010-11

Indian Power Sector contd...


Total Installed capacity of power utilities 14,709 MW in 1970-71 173,626 MW in 2011-12 Thermal power plants 64% i.e. 131.2 000 MW Hydro power plants 18.2% i.e. 37.6 000 MW Non-utilities plants 15.9% i.e. 32.9 000 MW Nuclear power plants 2.31% i.e. 4.78 MW

Electricity Generating Capacity

Major Players in the Power Sector

Sector wise Consumption

Electricity Generation Electricity generation


Generation
4% 8% 3% 2% Coal Hydropower Natural Gas 15% Oil Nuclear Renewables 68%

Energy Sources
Coal Natural Gas Nuclear Power Renewable Energy
Wind Solar Hydropower Biomass

Reserves
As on 31.03.11 Estimated Reserves COAL 286 billion tonnes LIGNITE 41 billion tonnes NATURAL GAS 1241 billion cubic meters (BCM) Eastern Offshore (35%), Western offshore (33%) NUCLEAR SOURCES Uranium so far discovered 44,000 tonnes

Areas of concentrati on of reserves

Jharkhand, Orissa, Chhattisgar h, West Bengal, Andhra Pradesh, Maharashtr a and Madhya Pradesh

80 % in the southern State of Tamil Nadu

Production Imports Consumption

Coal
Statistics of Coal
700 In million tones 600 500 437.24 400 300 200 100 0 38.59 2005-06 59 2008-09 Years Production Imports Consumption 68.92 2010-11 463.6 525.18 581.32 570.42 630.68

Coal contd
Sector wise Consumption of Coal 2010 - 2011

Others; 19% Cotton; 0% Paper; 0% Cement; 3% Steel and Washery; 7%

Power Generation; 70%

Natural Gas
Statistics of Natural Gas
'000000 in cubic meters 60 50 40 30 20 10 0 2.63 2005-06 2008-09 Years Production Imports Consumption 2010-11 32.2 31.03 32.85 31.75 52.22 51.25

12.62

12.15

Natural Gas contd


Sector wise Consumption of Natural Gas 2010 - 2011
Petro Chemicals; 2% Others; 2% Captive Use/ LPG; 9%

Fertilizer Industry; 27%

Power Generation; 55%

Industrial Fuel; 5%

Government Policies
Open access to transmission Generating company permitted to distribute electricity in rural areas Automatic approval for FDI Private Sector participation in Power Sector Energy Conservation (Amendment) Act, 2010

Government Schemes- XI Plan


Rural Electrification Programme Kutir Jyoti Scheme Accelerated Rural Electrification Programme (AREP) Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) Bachat Lamp Yojana (BLY) Scheme

Problems in Energy Sector

Power
Sharp Increase in Demand Poor Utilization of Electrical Equipments Power Theft

Power contd...
Delay in Commissioning of Power Project Faulty Planning and Plant Outages Dependence on Equipment Suppliers Other Roadblocks leading to Demand Supply Gap

Coal
Shortage of Coal Captive Mining Policy Coal Transport Infrastructure Coal and Climate Change Poor storage

Natural Gas
Gas pricing Insufficient supplies Regulation and policy Transmission/infrastructure

Nuclear Energy
Environmental and security concerns Huge Construction and Generating Cost

Impact on Economy
Industrial growth
Cement Sector Steel Sector

Grid Failures Imports increase


Rupee depreciation High Inflation Trade Deficit

Environment Impact

Measures to overcome crisis


Investme nts in wind, hydro projects

Nuclear Energy

Renewa ble Energy

Jawaharla l Nehru National Solar Mission

Energy Efficiency

Conclusi on

Thank You

Measures to be taken
Renewable Energy
Increase 15 percent share of capacity addition in renewable energy by 2017
Wind Hydropower Biomass

Solar
Jawaharlal Nehru National Solar Mission $20 billion plan to produce 22GW of solar power by 2022