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COMPETITION IN INDIA’S ENERGY SECTOR
COMPETITION IN INDIA’S ENERGY SECTOR.pdf
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India Electricity Outlook
India-electricity-outlook-2008.pdf
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Power

Power Generation in India

  • Installed Capacity - 120000 MW Peak Shortage - 12.6%, Energy Shortage - 7.5%
  • Sources of Power Generation - Steam - 57%; Hydro - 26%; Nuclear - 2.4%; Wind - 1.7%; Gas - 10%; Diesel - 1.0%

Generation Related Issues

  • Plant Load Factor Improvement
  • Low Quality, high ash content coal as primary source of fuel
  • Alarmingly low participation of private sector in capacity augmentation
  • Alternates to Thermal in Hydro and Nuclear have not picked up as per expectation
  • Peak and Energy Shortages still remain; hence no possibility of spinning reserves
  • Environmental pollution

Power Transmission

  • Transmission System comprises 400kV network for Main & Bulk transmission. Total Transmission network is about 22000 km
  • Power Grid Corporation is responsible for transmitting electricity at 400 kV and 220 kV

Transmission Related Issues

  • Grid Discipline, with over drawls resulting in grid collapse
  • Enforcement of Availability Based Tariff (ABT)
  • Weak Reactive Power Management resulting into poor voltage regulation
  • High Switching Transients
  • Interconnection of regional grids for transfer of bulk power from one part of the country to another

Power Distribution

  • Power is distributed at 0.4 kV level after being stepped down from 11 kV
  • Total Distribution capacity is about 250000 MVA; total number of consumers is over 130 million
  • Distribution sector is managed by state owned distribution companies / boards / corporation or private companies
  • APDRP and subsequently Indian Electricity Act 2003 have made distribution companies more accountable and opened up privatization
  • Average annual compound growth rate of electricity consumption since 1950 has been 8.9 %
  • Electricity consumption in different sectors:
    Agriculture- 24.9%
    Industries - 33.9%
    Domestic & Commercial - 32%
    Others - 9.2%

Distribution Related Issues

  • Inefficient / poorly designed and managed network/equipment
  • Metering - Not 100%
  • High Aggregate Technical and Commercial Loss- 30% to 50%
  • Distribution companies are financially stressed
  • Tariff structure based on subsidizing agricultural sector at the expense of Commercial and Industrial sector; resulting into theft and /or shifting of Commercial and Industrial sector to own captive generation
  • Weak Revenue Management and Energy Accounting
  • Lack of Load Forecasting - Long Term and Short Term