Microeconomics Project-

Power Sector Analysis

GROUP MEMBERS
SHUBRANSH SRIVASTAVA I 060
DIVYANSH TOMAR I 062
SUMIT SINGH I 056
RUSHABH VORA I 064
DEVASHISH VAIDYA I 063
 Present Scenario

India has the fifth largest power generation capacity in the world. The country ranks
third globally in terms of electricity production
India is grappling with a power deficit situation, Over 15.5 million below poverty line
(BPL) households and 9,500 villages are still devoid of electricity.
India ranks third among 40 countries in EYs Renewable Energy Country
Attractiveness Index, on back of strong focus by the government on promoting
renewable energy and implementation of projects in a time bound manner
In line with the global trend, India, a major coal-based electricity generator, has
planned to increase its renewable generation capacity to 175 GW by 2022
The Ministry of Power has set a target of 1,229.4 billion units (BU) of electricity to be
generated in the financial year 2017-18, which is 50 BUs higher than the target for
2016-17
Installed Capacity
 Top players in the market
RENEWABLE SECTOR:
NHPC LIMITED
TOTAL INSTALLATION CAPACITY OF 6667 MW
PLANT AVAILABILITY FACTOR HAS INCREASED FROM 78.5% TO 81.6 % IN
THE CURRENT YEAR.

TATA POWER SOLAR PLANT

CAPACITY OF 17MW SOLAR POWER PLANT
IN ITS TWO YEARS OF OPERATION THE PLANT IS PERFORMING AT A
PERFORMANCE RATIO OF 83.80 %

EMMVEE
ANNUAL PRODUCTION CAPACITY HAS BEEN ENHANCED TO 500 MW
 Top players in the market
NON RENEWABLE SECTOR:

NTPC (NATIONAL THERMAL POWER CORPORATION LIMITED)

TOTAL INSTALLED CAPACITY OF 51635MW
17.73% OF TOTAL NATIONAL CAPACITY
PLF RATIO HAS BEEN DECREASING OVER THE YEARS AND ALSO THE EFFICIENCY
OF PLANTS.

TATA POWER
PRODUCTION CAPACITY OF 10466 MW OF POWER
MUNDRA ULTRA MEGA POWER PLANT- 4000 MW POWER

ADANI POWER
TOTAL INSTALLED CAPACITY OF THE COMPANY IS 10480 MW
MUNDRA- 4620 MW POWER
 Factors affecting Power Sector in
Factors affecting Demand:
Economic Growth: Strong positive correlation between economic growth and
demand for power. GDP growth indicates increased economic activity and available
income, both of which are correlated positively with electricity consumption. Thus, the
demand for power increase with increase in economic growth.

Alternative Goods: The demand for electricity depends on the price for electricity
and the price of alternative goods. the higher the price for electricity, the lower the
overall consumption level will be (ceteris paribus). This reduction in consumption can
be a result of energy savings, profitable energy efficiency measures, or substitution of
electricity for other energy sources.

1. Peak load and seasonal variation: demand varies from instant to instant, from
hour to hour, and from season to season. For example, the installation of air
conditioner leads to increased summer peak prices.

2. Technology development and energy conservation: New technologies that

help to save energy and optimize energy consumption can also have a significant
impact on the demand and the demand profile. For example, one aspect that may
change the consumption profiles, are hourly meters, the cost of which has declined
considerably over the last years
5. Other Policy Factors: Policy measures can raise awareness and alter preferences. There
has been a strong emphasis on global warming and emissions of greenhouse gases. Direct
incentives (via, for example, subsidies) are likely to have the most significant impact on the
demand side, and usually work better than pure awareness or information campaigns.
Factors affecting Supply:
1. Subsidies & Renewable Policies: Subsidies play an important role when it comes to the
composition of the
generation side. In particular the financial support and subsidies for certain technologies
have significant impact on the supply structure

2. Technological developments: A very important driver for electricity supply is

technological development. Nuclear technologies, with a new generation of nuclear plants,
Clean Coal technologies and carbon capture (sequestration) could make coal plants
competitive in the presence of high CO2 prices. plants are equipped with the variable
frequency drive so that the plant uses less electricity while running on half-capacity mode.

3. Availability of Resources: The availability of resources plays an important role in the

energy mix. Strong demand for one resource for example coal as compared to oil, gas or
hydro influences the supply of power. The more the availability of one of the resources with
 GOVERNMENT INITIATIVES

India has signed many Agreements with Portugal and United Kingdom to
boost research & investments in the renewable energy sector
Development of the app TARANG
Plan to introduce a fixed cost component of the tariff from renewable
resources in a bid to promote a green economy
Government of India has asked states to prepare action plans with year-
wise targets to introduce renewable energy technologies and install solar
rooftop panels so that the states complement government's works to
achieve 175 GW of renewable power by 2022.