Energy Sector

INTRODUCTION

Electric power generation in India is done predominantly by government sector entities. These are controlled by various central public sector corporations, such as: National Hydroelectric Power Corporation, National Thermal Power Corporation and various state level corporations (State Electricity Boards - SEBs). The transmission and distribution is managed by the State Electricity Boards (SEBs) or private companies. Private sector participation is increasing especially in Generation and Distribution:

* Distribution licenses for several cities are already with the private sector

* Many large generation projects have been planned in the private sector

INSTALLED CAPACITY

* India has the fifth largest electricity generation capacity in the world

- Low per capita consumption at 606 units; less than half of China

* T & D network of 5.7 million circuit km - the 3rd largest in the world

* Coal-fired plants constitute 53% of the installed generation capacity, followed by 25% from hydel power, 10% gas based, 3% from nuclear energy and 8% from renewable sources

* The overall generation in the country has increased from 617.5 BU during 2005-2006 to 662.5 BU during the year 2006-07. The overall generation improved as follows:

Energy Type Improved By

Thermal 6.1%

Hydro 11.9%

Nuclear 7.9%

Bhutan Imp. 70.6%

Overall Growth Rate 7.3%

* Source: http://infrastructure.gov.in/power.htm

There has been significant improvement in the growth in actual generation over the last few years. As compared to annual growth rate of about 3.1% at the end of 9th Plan and initial years of 10th Plan, the growth in generation during 2006-07 and 2007-08 (upto September, 2007) was of the order of 7.3% and 7.6% respectively.

The electricity generation target for the year 2007-08 has been fixed at 710 BU comprising of 572.194 BU thermal; 109.450 BU hydro; 22.713 BU nuclear; and 5.643 BU import from Bhutan.

All India region wise generating installed capacity (MW)of power utilities including allocated shares in join t central sector utilities*

** Based on data as on 30.09.2007 as furnished by MNRE.

Renewable Energy Sources(R.E.S) includes Small Hydro Project(SHP), Biomass

Gas(BG), Biomass Power(BP), Urban & Industrial waste Power(U&I), and Wind Energy.

*Source: http://powermin.nic.in

*Source: http://powermin.nic.in

*Source: http://powermin.nic.in

TRANSMISSION & DISTRIBUTION

Transmission and Distribution services were being generally handled by the State Electricity Boards of the respective states. Recently under the provisions of Electricity Act 2003, all State Electricity Boards were trifurcated in three, State Govt. owned, Companies for Generation, Transmission & Distribution of electricity. In some states private enterprises have been allowed to purchase power directly from the generating stations, as in Karnataka.

RURAL ELECTRIFICATION

Jharkhand, Bihar, Uttar Pradesh, Orissa, Uttranchal, West Bengal etc are some of the states where significant number (more than 10%) of villages are yet to be electrified.

* Number of Villages (1991 Census) - 5,93,732

* Villages Electrified (30 May 2006) - 4,39,502

* Village level Electrification % - 74%

* Number of Rural households (2001 Census) - 138,271,559

* Electricity Access - 60,180,685

* Rural Household level Electrification % - 44%

PROJECTED DEMAND

India's installed capacity for power generation has tripled over the last 20 years and now exceeds 101,000 MW. However, the total demand is expected to increase by another 3.5 times in the next two decades, even under a best-case scenario that envisions intensified efforts to modernize power plants, improve transmission and distribution efficiency, and adopt more efficient generation technologies. Figure 2 depicts power consumption by various sectors in 1997 compared to a business as- usual (BAU) and an alternative scenario which we will consider as the best-case scenario (BCS) for 2020.

Projected Power Demand(TWH)

* Source: Based on R.K. Pachauri and Pooja Mehrotra, "Vision 2020: Sustainability of our Material Resources", paper prepared for Planning Commission.

The soaring demand for power will necessitate a tripling of the installed generation capacity from 101,000 to 292,000 MW over the next two decades. The projected fuel mix for power generation from various sources is shown in Figure 3. At least two-thirds of this power will have to come from thermal sources--coal, oil and gas--even under the BCS. This will mean a spiralling cost for imported fuels, including coal, since even a doubling of domestic coal production would not be sufficient to meet the demand. It will also mean a surge in emission of environmental pollutants. Even under this alternative scenario, the contribution of renewable energy does not exceed 5 per cent of the total production.

Fuel Mix For Power Generation

* Source: Based on R.K. Pachauri and Pooja Mehrotra, "Vision 2020: Sustainability of our Material Resources", paper prepared for Planning Commission.

Projected Fuel Demand