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Power

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OVERVIEW

SIZE
 

  • Generation capacity of 122 GW; 590 billion units produced (1 unit = 1kwh)

    • CAGR of 4.6% over the last four years
       

  • 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 57% of the installed generation capacity, followed by 25% from hydel power, 10% gas based, 3% from nuclear energy and 5% from renewable sources
     

      


Over 150,000 MW of
Hydel Power is yet to
be tapped in India


India requires an additional
100,000 MW of generation
capacity by 2012

STRUCTURE

  • Majority of Generation, Transmission and Distribution capacities are with either Public sector companies or with State Electricity Boards (SEBs)
     

  • Private sector participation is increasing especially in Generation and Distribution

    • Distribution licences for several cities are already with the private sector

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

POLICY

  • 100% FDI permitted in Generation, Transmission & Distribution - the Government is keen to draw private investment into the sector
     

      

  • Policy framework: Electricity Act 2003
    and National Electricity Policy 2005
     

  • Incentives: Income tax holiday for a block of 10 years in the first 15 years of operation; waiver of capital goods import duties on mega power projects (above 1,000 MW generation capacity)
     

  • Independent Regulators: Central Electricity Regulatory Commission for central PSUs and inter-state issues. Each State has its own Electricity Regulatory Commission.

Major players and presence in value chain Capacity •G •T •D
Public Sector
National Thermal Power Corporation
23,749
   
National Hydro Electric Power Corporation
3,615
   
Nuclear Power Corporation
2,770
   
Domestic Private Sector
Tata Power
2,203
RPG Group - CESC
1,005
Reliance Energy
885
International Private Sector
China Light and Power (CLP)
655
   
Marubeni Corporation
330
   
 
•G - Generation  •T - Transmission  •D - Distribution

Source: Ministry of Power, Capitaline

 


OPPORTUNITY

OUTLOOK

  • Over 90,000 MW of new generation capacity is required in the next seven years

    • A corresponding investment is required in transmission and distribution networks
       

  • Power costs need to be reduced from the current high of 8-10 cents/unit by a combination of lower AT & C losses, increased generation efficiencies and added low cost generating capacity

POTENTIAL

  • Large demand-supply gap: All India average energy shortfall of 7% and peak demand shortfall of 12%
     

  • The implementation of key reforms is likely to foster growth in all segments:

    • Unbundling of vertically integrated SEBs

    • “Open Access” to transmission and distribution network

    • Distribution circles to be privatised

    • Tariff reforms by regulatory authorities
       

  • Opportunities in Generation for:

    • Coal based plants at pithead or coastal locations
      (imported coal)

    • Natural Gas/CNG based turbines at load centres or near gas terminals

    • Hydel power potential of 150,000 MW is untapped as assessed by the Government of India

    • Renovation, modernisation, up-rating and life extension of old thermal and hydro power plants
       

  • Opportunities in Transmission network ventures - additional 60,000 circuit km of transmission network expected by 2012
     

  • Opportunities in Distribution through bidding for the privatisation of distribution in thirteen states that have unbundled/corporatised their State Electricity Boards – expected to take place over the next 2-3 years
     

  • Total investment opportunity of about US$ 200 billion over a seven year horizon

For additional information: Ministry of Power, Central Electricity Regulatory Commission, State Electricity Regulatory Commission (http://powermin.nic.in)

 

Content Source: www.investmentcommission.in

 
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