Power Scenario

Bharat Nirman in Power Sector ( Thanks to both Britishers and Indians)

1749:- Benjamin Franklin discovered that frictio generates electricity !

1947:- We had generating capacity of 1300 MWe

2013:- Capacity is reaching 2,00,000 MWe

1910:- Growth of power sector with the help of private licences.

1948:- SEBs were created.

1998:- CERC/State REC created.

Some advancements in Power Sector

• Flexisheet solar panels have come. up. M/S Power Film of Iowa is one such manufacturer. Imagine the immense possibilities !
• We need to help the coal linkages and CIL production to keep running thermal power plants in India. Renewables have capacity contribution of 10% but generation contribution of just 3%. ( capacity utlisation only 30 %).
• Gujrat has the pride of India's largest IPP: Torrent. already generating 600 MW , some 1000 MW works are in pipeline.
• Reliance(Sasan), JSW ( Ratnagiri) and GMR(Orissa) are upcoming UMPPs.
• Other than NTPC and NHPC central sector power producers  are: NPC, Neyveli, DVC, BBMB,NEEPCO

NTPC plants in India

Himachal ( Koldam Hydel), Haryana ( Faridabad gas, Badarpur ), UP ( Dadri Coal , NCTPP, Unchahar, Tanda, Singruali, Rihand), Rajasthan ( Anta), Gujarat ( Kawas Gas, Gandhar), MP ( Auraiya, Vindhyanchal ), Bihar ( Kahalgaon, Barh ), Chhatisgarh ( Korba, Sipat), WB( Farakka, Durgapur), Odisha ( Talcher, Rourkela, Bhilai), Andhra Pradesh ( Simhadri , Ramagundam) , Kerala ( Kayamkulam).

Some facts about power sector tagets in India

In a five year plant India targets to add about 40,000 MW.
'Power to all ' target is deadlined for 2012.
Intergrid capacity planned by 2012 is 30,000 MW.
Peaking shortage is estimated to be 11 %.
PLF is estimated to be 72 %
From 1700 MW in 1947, power sector has come up to 130,000 MW today.
Still 80 million rural households are in dark.
Till Aug 06, 44% of rural India had electricity. ( out of 14 Crore households, 6 Crore were electrified).
Cogeneration potential of sugar Industry is estimated to be 5000 MW ( tapped at present: 850 MW).

Thoughts on Electricity Tariff

Industrial , Domestic and Agriculture. Which sector to be billed dearest? World over, domestic tariffs have been highest and Industrial tariffs are lowset. Moreover, Tariff is different for Paek, Normal and Off-peak period.
We know that scenario in India is different.

An interesting fact about agriculture load is that therre are about 15 million pumpsets and they consume 30 billion kwh in a year (most of which is unmetered).

Rural electrification ( as per 1991 census )

STATE No of Villages (Villages Electrified )

Arunachal 3600 ( 22000 )
Assam 25000 (20000 )
Bihar 70000 (50000 )
J&K 6500 (6400 )
MP 72000 (70000 )
Manipur 2200 (2000 )
Meghalaya 5500 (2500 )
Mizoram 700 (700 )
Odisha 50000 (35000 )
Rajasthan 38000 (35000 )
Tripura 900 (810 )
UP 1,15,000 (90,000 )
WB 38000 (30000 )

This means that out of total about 6 Lakh villages , 95 % are electrified.

Time Line of Power Sector Reforms in India

1991 Generation privatised.
1992 Electricity Regulatory Commission ( ERC) Act enacted.
1994 Accelerated Power Development Program launched.
1996 National Electricity Policy and National Tariff policy notified.
1998 Electricty Act , 1998 enacted.
1999 NTPC Tripartite Agreement to securitise SEB dues.
2000 Availability based tariff announced , APDRP launched.
2001 Electricity Act 2001 passed.
2003 New Electricity Act 2003, enacted.
2004 Multi year tariff announced.
2005 National Electricity Policy and National Tariff policy announced.
2006 Ultra Mega Power Projects launched.

Was AP able to turnaround in 2008?

AP transco claimed in 1998 that it has drastically reduced its AT&C losses ( from 37% in 1999-2000 to 15.8 % in 2005-06). demand of 12000 MW. Yet to analyse the situation today.

Other than Andhra Pradesh, Chhattisgarh, Himachal , Karnataka and Orissa have signifacntly reduced their AT&C losses.

Almost all states have unbundled utilities.

Guarantee of returns for power producers

GOI had announced that 16% returns on euity invested would be guaranteed to power producers. And this will need a certain PLF.
Some facts in this regard are :-

• IPPs equity is 30% of total project cost and for PSUs like NTPC it is 50 % .


• Incentives for PSUs like NTPC become about Rs1000 Crore.

Two decades of reforms in Power Sector

• Despite two years of reforms, scenario in power sector is not veri optimistic. SEBs ( now corporations) owe over Rs 10,000 crore to Caoal India and their total annual losses are huge ( More than Rs 40,000 Crore ).



• Escalations in Hydel projects ( thanks to anti-dam activists ) have caused poor hydel:thermal ratio ( which is 60:40 world over as compared to 25:75 in India)



• DISCOMs have not been able to reduce losses despite reforms and power remains most demanded Infrastructure in the Country.


• Out of total generated power only 40 % is billed,

Power Sector Snippets

• Large hydro potential is available in India. ( In north and north-east of the country). 25 GW is already used, 20 GW is under implementation and further 66 GW is still available.



• Purnea and Gorakhpur are Indias biggest FACTS projects.



• HTSC ( High Temperature Super Conduction) is stioll to come to India.


• At present only 3 % of the total volume of electricity handled by grid ( = 15000 GWh) is traded in India. Power trading is growing @ 6 % per annum.


• Power trading improves capacity utilisation, reduces unit costs, raises farm and industrial output and cuts down need for new projects.

Some issues in Indian power sector

• Generation Capacity addition during last 2 years has been far below the targets. Target for 2007 -08 was 16,000 MW , actual aws only 9,000MW. Target for 2008-09 was 11,000 MW , actual was 3,000 MW. We are slipping in the year 2009-10 also. Anybody held responsible?
• T&D revenue losses are increasing unabated. The loss is huge. Every year Rs.50,000 crore are lost in T&D.
• Untapped potential in Small Hydropwer is 80%. Most of this is in North-east.
• Gas based power plants operate on best PLF. India has adequate gas reserves, yet the contribution of Gas based plants in total generating capacity is only 10 %

History Of Electric Power

1749:- Benjamin Franklin produced electricity by friction.

1910:- Growth of Power Sector with the help of private licensee.

1947:- India had 1300 MW installed capacity.

1948:- SEBs were created.

1998:- Regulatory Commission formed.

2004:- Installed capacity reaches 1,14000 MW.