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
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 in place:
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
•G - Generation •T - Transmission
•D - Distribution
Source: Ministry of
Power, Capitaline
Opportunity
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
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.infrastructure.gov.in
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